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The Economic Feasibility of Ethanol Production from Sugar in the United States

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  • Shapouri, Hosein
  • Salassi, Michael

Abstract

Excerpts from the report: Ethanol is a high-octane fuel which is used primarily as a gasoline additive and extender. The reduction in use of methyl tertiary butyl ether (MTBE) due to its environmental problems caused by groundwater contamination and surging prices for petroleum-based fuels are dramatically increasing the demand for ethanol and the interest in ethanol production in the United States. Ethanol can be produced from carbohydrates such as sugar, starch, and cellulose by fermentation using yeast or other organisms. The purpose of this report is to investigate the economic feasibility of producing ethanol from sugar feedstocks in the United States. These sugar feedstocks include: (1) sugarcane juice, (2) sugar beet juice, (3) cane or beet molasses, (4) raw sugar and (5) refined sugar. Estimated costs of producing ethanol from these feedstocks are presented along with a discussion of other factors that may influence the economic feasibility of converting sugar feedstocks into ethanol. Comparisons are made with grain feedstocks, specifically corn.

Suggested Citation

  • Shapouri, Hosein & Salassi, Michael, 2006. "The Economic Feasibility of Ethanol Production from Sugar in the United States," Miscellaneous Publications 322769, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uersmp:322769
    DOI: 10.22004/ag.econ.322769
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    1. Schmitz, Andrew & Seale, James L., Jr. & Schmitz, Troy G., 2003. "Sweetener-Ethanol Complex in Brazil, the United States, and Mexico: Do Corn and Sugar Prices Matter?," Policy Briefs 15666, University of Florida, International Agricultural Trade and Policy Center.
    2. Gallagher, Paul W. & Brubaker, Heather & Shapouri, Hosein, 2005. "Plant size: Capital cost relationships in the dry mill ethanol industry," ISU General Staff Papers 200506010700001442, Iowa State University, Department of Economics.
    3. Schmitz, Andrew & Schmitz, Troy G. & Seale, James L., Jr., 2003. "Ethanol from Sugar: The Case of Hidden Sugar Subsidies in Brazil," Policy Briefs 15679, University of Florida, International Agricultural Trade and Policy Center.
    4. Gallagher, Paul W. & Brubaker, Heather & Shapouri, Hosein, 2005. "Plant Size: Capital Cost Relationships in the Dry Mill Ethanol Industry," Staff General Research Papers Archive 12306, Iowa State University, Department of Economics.
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    3. Outlaw, Joe L. & Burnquist, Heloisa Lee & Ribera, Luis A., 2007. "Bioenergy--Agricultural Issues and Outlook," 2007 NAAMIC Workshop IV: Contemporary Drivers of Integration 163901, North American Agrifood Market Integration Consortium (NAAMIC).
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    7. Kyriakou, Maria & Chatziiona, Vasiliki K. & Costa, Costas N. & Kallis, Michalis & Koutsokeras, Loukas & Constantinides, Georgios & Koutinas, Michalis, 2019. "Biowaste-based biochar: A new strategy for fermentative bioethanol overproduction via whole-cell immobilization," Applied Energy, Elsevier, vol. 242(C), pages 480-491.
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    9. Wise, Marshall & Dooley, James & Luckow, Patrick & Calvin, Katherine & Kyle, Page, 2014. "Agriculture, land use, energy and carbon emission impacts of global biofuel mandates to mid-century," Applied Energy, Elsevier, vol. 114(C), pages 763-773.
    10. Yazdanparast, R. & Jolai, F. & Pishvaee, M.S. & Keramati, A., 2022. "A resilient drop-in biofuel supply chain integrated with existing petroleum infrastructure: Toward more sustainable transport fuel solutions," Renewable Energy, Elsevier, vol. 184(C), pages 799-819.
    11. Manochio, C. & Andrade, B.R. & Rodriguez, R.P. & Moraes, B.S., 2017. "Ethanol from biomass: A comparative overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 743-755.
    12. Morris, Brittany D. & Richardson, James W. & Frosch, Brian J. & Outlaw, Joe L. & Rooney, William L., 2009. "Economic Feasibility of Ethanol Production from Sweet Sorghum Juice in Texas," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46852, Southern Agricultural Economics Association.
    13. Brockmeier, Martina & Urban, Kirsten, 2008. "Assessing the Impacts of Agricultural Policies on the Global, National and Farm level - A Survey of Model Systems," Conference papers 331684, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    14. Demis Zelelew & Hadush Gebrehiwot & Wondimu Fikre, 2018. "Feasibility of Bioethanol Production Potential and Optimization from Selected Lignocellulosic Waste Biomass," International Journal of Environmental Sciences & Natural Resources, Juniper Publishers Inc., vol. 9(2), pages 89-95, March.
    15. Yeboah, Osei-Agyeman & Parker, S. Janine, 2009. "Impact of Expanded United States Sugar Imports from CAFTA Countries on the Ethanol Market," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46027, Southern Agricultural Economics Association.
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    17. Kassu Wamisho Hossiso & Aaron Laporte & David Ripplinger, 2017. "The Effects of Contract Mechanism Design and Risk Preferences on Biomass Supply for Ethanol Production," Agribusiness, John Wiley & Sons, Ltd., vol. 33(3), pages 339-357, June.

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