Agricultural Economics Department
ethanol, grain alcohol agricultural economics
This paper provides an interim progress report on research at South Dakota State University (SDSU) concerning the economics of producing fuel alcohol in "small-scale" plants. Estimated per gallon costs of producing alcohol are quite high. The lowest estimate is $3.12 per gallon of alcohol (based upon $2.00 corn, a 10% interest rate, and 9,088 gal per year production). The highest estimate is $5.70 per gallon (based upon $2.34 corn, a 15% interest rate, and 4,544 gal per year annual production). These costs indicate the need for utilizing all capital components of a plant close to their capacities, reducing fixed costs per unit of alcohol output. (See more in text).
Agricultural Experiment Station, South Dakota State University
Hutchinson, R. and Dobbs, T. L., "Preliminary Cost Estimates - Producing Alcohol Fuel From a Small Scale Plant" (1980). Agricultural Experiment Station Circulars. 259.