What raises ethanol costs?

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The cost of ethanol is determined by the products and services used to produce it, including starch sources, manufacturing facilities, additives, transportation, and maintenance. Corn is the most common starch source, and enzymes and additives are needed to convert starch into sugar and remove water from the ethanol. Transportation and maintenance costs also contribute to the overall cost of ethanol.

The cost of ethanol can be established by breaking down the products and services used to produce this alternative fuel. In most cases, creating fuel ethanol requires a starch source, a manufacturing facility, and additives to convert the starch into sugar and remove water from the ethanol. Other factors that contribute to ethanol costs can include fuel transportation and ethanol plant maintenance.

The most common starch source used for ethanol production is corn. Corn can be grown for the sole purpose of producing ethanol or for both ethanol and human consumption. There is no difference between ethanol-grade corn and corn approved for use as a food source. The cost of ethanol varies based on the current market price of corn or any other form of starch used to make ethanol fuel.

Manufacturing facilities are needed to convert starch, from corn or another source, into ethanol. These facilities can be equipped with distilleries, fermentation vats and vats used for blending. The desired output of such a biorefinery can influence the size of equipment used to produce ethanol. These factors must be considered when determining the cost of ethanol.

To convert the starches used to make ethanol into pure alcohol, enzymes and additives are needed. As of 2005, one of the newer enzymes used to convert corn starch into sugar was the alpha-amylase enzyme. Other necessary additives may include microorganisms to convert sugar into alcohol and sorbents to remove water from the ethanol at the end of production. All of these materials can contribute to the overall cost of ethanol.

Once the ethanol has been produced, it may be necessary to move the biofuel to a storage facility or a plant used to blend ethanol with traditional gasoline. Many cities require fuel to be blended at a ratio of 10% ethanol to 90% gasoline in order to reduce the greenhouse gases emitted by cars that use this fuel. Ethanol can also be blended in a ratio of 85% ethanol to 15% gasoline, resulting in what is also called E85 ethanol. Transportation costs can also alter the cost of ethanol.

Ethanol production also requires biorefinery maintenance. Employees will often work to produce the ethanol and keep the biorefinery running at full capacity. Maintaining machines used in each stage of ethanol production may require systematic cleaning, repair, and upgrading to continue operating safely and effectively. The cost of that maintenance and wages can also be added to the cost of the ethanol.




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