$2 or higher gas - Can ethanol make a comeback? Message Board

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Non-Tech : $2 or higher gas - Can ethanol make a comeback?

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To: richardred who wrote (2314)	2/24/2007 9:18:51 AM
From: Think4Yourself	Read Replies (1) of 2801

re: At worst, agricultural analysts said, some ethanol plants are operating in the red, but some analysts said margins for ethanol producers overall are anywhere from 60-70 cents a bushel to upward of $1.40 on each bushel of corn. at 2.7 bushels/gallon that's a profit margin of $1.62-(3.78)/gallon. Gas is about $2.40/gallon (high side), at least around here. Subtract out the profit and you have anywhere from $.78 to -$1.48 to buy, process, and distribute 2.7 bushels of corn to make a gallon of fuel that is calorically inferior to gasoline. Either the analysts are full of s$#t, the taxpayers are heavily subsidizing this folly, or both. Most likely it's both.

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