Golgo 13 said:
It may typically be cheaper than gas (for the producers), but it still costs the end users more than an equal amount of gasoline and doesn't go as far.
I remember hearing the ethanol people back in the 90s when gas was still cheap saying "Wait for the price of gas to go up. Then ethanol will be competative". Gas still costs less than ethanol even when the price went up.
The reason behind this is as the cost of diesel goes up, so does the cost of ethanol. So it appears as it will always cost more than gas as long as farmers are running their diesel farm equipment to make the stuff.
You are just sadly miss informed.
I will admit that ethanol would be more than ten times more expensive than gas if it is from corn grown in green houses in Alaska. It may be some what more expensive if the corn is grown in only part of the year in the expensive fields of Iowa, which has frozen ground also for part of the year, and then later harvested with the high US labor costs. Either of these ways of producing ethanol is nonsense, economically possible only with great assistance of the tax payers and protective import duties.
Until the production from cellulose is technically possible (and hopefully economically possible also, but that is by no means sure) ethanol should come from sugar cane grown year round in tropical countries. PERIOD. The diesel fuel for tractors and transport of the cane to one of the many hundreds of alcohol production facilities, all near the farms, is less than 3% of the energy content of the alcohol produced. (Your gas is trasported hundreds of time farther, typically form the other side of the world!) The diesel energy required for production is even less than the electric energy produce at some of the larger facilities that burn the excessive* crushed cane (I.e. even if the alcohol were all discared, There still would be a net energy gain from the electric power poduced!!!!!!!!!) You are spouting such a volume of nonsense that if we could place a wind mill in front of you, at least a house or two could cut off their electric connection to the power line!
You: "The reason behind this is as the cost of diesel goes up, so does the cost of ethanol."
This appears to be a very-stupid, unfounded, comment. Read prior paragraph again (and again until you understand). It is the world price of sugar that controls the cost of alcohol.
The cost of diesel has essentially nothing to do with the cost of alcohol. In Brazil, despite sugar now being at highest price in history, fortunately for me, the fall crop is beginning at the local pump to appear as alcohol and the PER MILE cost of using it in my flex-fuel car is again lower than gas {I.e. alcohol is again available, and priced at the pump (per liter) at less than 70% of the cost of gas.} If the sugar price drops to reasonable levels it will again cost less than half of what gas does - that is why 80+% of all cars sold in Brazil are now "flex fuel" and more than half of all on the roads can use 100% alcohol.)
Brazil is now exporting alcohol and rapidly expanding it production.
Diesel has nothing to do with alcohol, except that diesel cars are illegal in Brazil to keep the use limited to trucks. - Part of the reason why Brazil is both energy self sufficient and a net exporter of oil, but alcohol is the main reason.
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*Unlike the processing of petroleum for gasoline, all of the thermal input required for distillation is obtained by burning only part of the crushed cane. At smaller plants, without electric generation facilities, much of the excess crushed cane is returned to the farms with the same trucks that deliver the cane from the farms and used for animal food**.
Think even slightly, if you can, about which system needs to consume more energy for transport. - The one that bring the raw materials from the other side of the world or the one that brings them from farms typically 20 miles or less away. The one that produces electric energy with the excess heat naturally available at the plant or the one which needs fossil fuel, typically natural gas to run the distillation towers. the one that must transport the finished fuel approximately 500 miles from the few gasoline refineries or the one which transports it 50 to 100 miles, at the max, to the station's pumps from the hundreds of small distillation plants?

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**These small scale operations do not use any fertilizer. The cows that eat the excess cane provide that service, even distributing their "exhaust" in the field without using any fossil fuels!
Cane is basically a grass. It grows well with little or no fertilizer, but some may be used to increase yields per acre or get a third crop from the same field annually. Of course the fields are rotated to produce soybean some years as that adds "fixed nitrogen" to the soil etc.. Any fertilizer used is always much less than that required by Iowa’s corn, which must be made to quickly grow before the winter returns!