Capital costs in the Ethanol Industry

As the results of the USDA's production cost survey have been announced, some information on the ethanol industry's capital cost has been published [4]. Corporate capital costs and capacity data in this study are used for statistical estimation of the relationship between capital cost capabilities. The ethanol industry has two technologies. Most existing dry plants are small scale with annual output of 50,000 to 300,000 gallons (MGY). However, the dry mill built during the current expansion has a capacity of 40 to 100 MGY.

The expansion of the ethanol (and biodiesel) industry has mainly provided work in the rural areas for construction, operation and maintenance of plants. According to RFA, the ethanol industry created approximately 154,000 US jobs in 2005 and household income increased by $ 5.7 billion. It also contributed approximately $ 3.5 billion to federal, state and local taxes. Typical label used in the United States to identify the E85 flexible fuel vehicle. Upper left corner: A small sticker behind the filler. Bottom left: The bright yellow air cap used in the new model. E85 Flexfuel badge for new models of Chrysler (upper right), Ford (right), GM (lower right)

Industrial ethanol is usually manufactured from ethylene. Ethanol is widely used as a solvent for substances that humans contact or consume, including perfumes, fragrances, colorants, and drugs. In chemistry, it is both solvent and raw material for the synthesis of other products. It has a long history as a fuel for heat and light and has recently been used as a fuel for internal combustion engines.

Most industrial ethanol has been denatured to prevent its use as a beverage. Denatured ethanol contains small amounts, 1% or 2% of several different "unpleasant" or toxic substances. These modifiers make ethanol unsuitable for certain industrial applications. In these industries, non-denatured ethanol is used under the supervision of the federal government. When consumed, ethanol acts as a drug that affects the central nervous system. The influence on that behavior arises from the influence on the brain. It is an inhibitor and, depending on the dose, it can be a mild sedative or a general anesthetic. It inhibits certain brain functions. At very low doses, it appears to be a stimulant by suppressing certain inhibitory brain functions. However, as attention increases, further suppression of brain function may cause typical symptoms of poisoning.