The productions costs of ethanol - Essay Example

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The productions costs of ethanol

Ethanol is better known as ethyl alcohol is basically a flammable, volatile and a colorless liquid. The drug is found in alcoholic drinks, people commonly call it alcohol but many of them aren't quite aware that it is called Ethanol. The same is also extensively used in perfumes, medicines and for many other uses. This paper will throw light upon the production cost of Ethanol and how does its production affect corn."In 2003, the U.S. Department of Agriculture surveyed 21 dry-mill ethanol plants to estimate their 2002 production costs, including both variable (feedstock and plant operation) and capital expenses. These plants produced about 550 million gallons of ethanol in 2002. Net feedstock costs for the surveyed plants ranged from 39 to 68 cents per gallon in 2002. For cash operating expenses, the average energy expenditure was 17.29 cents per gallon. Labor costs ranged from 3 to 11 cents per gallon, maintenance costs from 1 to 7 cents, and administrative costs from 1 to 18 cents. For capital expenditures, new plant construction costs from $1.05 to $3.00 per gallon of ethanol." (Ethanol, 16 September 2008).There has been a significant rise in the production of Ethanol over the years, the facts speak for themselves and it is found that only 200 million gallons were produced in the year 1980, on the other hand the year 2004 saw a high increase in this figure, it was found that 200 million of Ethanol was produced during the year, the same also gave rise to the no of Ethanol plants. ...Show more

Summary

Ethanol is better known as ethyl alcohol is basically a flammable,volatile and a colorless liquid.The drug is found in alcoholic drinks,people commonly call it alcohol but many of them aren't quite aware that it is called Ethanol.The same is also extensively used in perfumes,medicines and for many other uses…
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