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Kaua’i <strong>Island</strong> <strong>Utility</strong> Cooperative<br />

<strong>Renewable</strong> <strong>Energy</strong> <strong>Technology</strong> <strong>Assessments</strong><br />

3.0 <strong>Renewable</strong> <strong>Energy</strong> <strong>Technology</strong><br />

Options<br />

Resource Availability<br />

While most of the ethanol produced in the United States today is derived from<br />

corn, ethanol is also produced from agricultural feedstocks that are high in simple sugars<br />

such as sugarcane and sugar beets. Currently, the sugar or starch components of plants<br />

are primarily used for ethanol production. It is also possible to utilize the more fibrous<br />

parts of biomass, such as the cellulose, hemicellulose polymers, and lignin to produce<br />

ethanol. While the sugar polymers in hemicellulose and cellulose are more resistant and<br />

difficult to break down using conventional dry milling processes, other production<br />

processes are being developed that allow these components to be fully utilized.<br />

Researchers have focused their efforts on acid hydrolysis and enzymatic hydrolysis<br />

technologies that are capable of breaking down or hydrolyzing the sugar polymers in<br />

lignocellulosic biomass such as trees, grasses, and waste biomass. Processes are also<br />

under development that gasify organic feedstock (including municipal waste) and<br />

synthesize ethanol from the product gas. These alternative processes hope to expand the<br />

biomass resource base and lower feedstock cost in ethanol production.<br />

Cost and Performance Characteristics<br />

As a fuel, ethanol has a lower energy density than gasoline, which means that it<br />

contains less energy per gallon than gasoline does. The energy content of ethanol is<br />

84,000 Btu/gallon which, when compared to a gallon of gasoline, translates into only 70<br />

percent of the energy per gallon. The price of ethanol is dictated by a complex<br />

interaction of the cost of the raw feedstock, the processing technology, state and national<br />

subsidies, and the supply and demand for the product. Because of all of these factors, it<br />

is not necessarily true that a rise in gasoline prices will make ethanol comparatively<br />

cheaper. Nationally, ethanol has recently cost anywhere from $18/MBtu to $25/MBtu,<br />

which is $6-$8/MBtu more than gasoline.<br />

Currently the costs of ethanol production using the advanced lignocellulosic<br />

technologies are not competitive compared to conventional dry milling and wet milling<br />

processes. The high costs are attributed to the high-volume acid requirements.<br />

Advancements in acid recovery and recycle will significantly reduce the cost of ethanol<br />

production using the lignocellulosic technologies. It has been estimated that such<br />

advancements can reduce the cost of ethanol production by up to 40 cents per gallon.<br />

Gasoline and diesel production far outweigh their biofuel counterparts. The<br />

market potential for ethanol is greatest in the Midwest, close to the corn feedstock. The<br />

difference in price between the Midwest and the West Coast, which has little corn<br />

production, can be 20 cents per gallon or more. However, proposed legislation to ban<br />

MBTE as a fuel additive and implement new renewable fuel standards, may drastically<br />

21 March 2005 3-24 Black & Veatch

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