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Biobased Industrial Products Priorities for Research and Commercialization (2000) / Chapter Skim
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Appendix A: Case Study of Lignocellulose-Ethanol Processing
Pages 135-143

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From page 137...
... This projection critically hinges on new technologies and on low corn residue costs because these residues are coproduced with corn grain. An additional 4.5 billion gallons of ethanol may be produced at potentially higher costs due to higher prices for corn stover.
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From page 138...
... The supply curve is vertical where industry uses all available supplies, provided that the amount of land that is planted with corn is kept fixed. If the new cellulose conversion technology develops successfully, energy products will create a new market for corn stover.
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From page 139...
... steps of the corn supply curve. Table A-1 gives net harvest cost estimates based on harvest expenses and fertilizer replacement costs for the midwestern United States.
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From page 140...
... The calculations below assume maximum theoretical yields for conversion of pentose and glucose sugars: 0.40 pounds of ethanol 1 gallon of ethanol 125 billion pounds of stover x x = 7.5 billion gallons 1 pound of stover 6.6 pounds of ethanol 0.40 pounds of ethanol 1 gallon of ethanol 200 billion pounds of stover x x = 12 billion gallons 1 pound of stover 6.6 pounds of ethanol When correction is made for the relative fuel efficiency of ethanol and gasoline, the 12 billion gallons of ethanol from corn stover translates to the equivalent of 9.6 billion gallons of gasoline or about 9 percent of annual U.S. gasoline consumption (about 110 billion gallons)
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From page 141...
... Cost data for some petrochemical processes (styrene, ethylene, ethanol) were developed using Donaldson and Culberson's estimates of input requirements, yields, and plant costs -- combining input requirements with recent price data to estimate material and utility expenditures, updating capital expenditure data with a price index for plant and equipment, and giving annual payment for a 15-year mortgage.
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From page 142...
... b Stover cost is based on harvest cost, including fertilizer replacement, of $16.50 per ton, plus transportation costs of $3.30 per ton. c A byproduct credit (negative disposal cost)
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From page 143...
... Finally, the feedstock cost is corn stover harvest cost adjusted for transportation as discussed above. The overall production cost for ethanol is estimated at $0.46 per gallon (refer to Table A-2)
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Key Terms

  • harvest cost
  • annual payment
  • net harvest
  • million tons
  • supply curve

  • fuel efficiency
  • cost estimates
  • stover harvest
  • billion gallons
  • average corn

  • harvest costs
  • production costs
  • cost data
  • fertilizer replacement
  • land rent

  • stover supply
  • fixed cost
  • stover available
  • input requirements
  • corn density

  • corn grain
  • variable cost
  • plant cost
  • fixed costs
  • demand curve

  • transportation cost
  • costs due
  • understate availability
  • replacement costs
  • processing costs


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