$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: Think4Yourself who wrote (2331)	2/25/2007 9:10:19 AM
From: Lance Bredvold	Read Replies (2) of 2801

"My math skills may not be that great but I am seeing $3 2.7 = $8.1/gallon ($3.752.7 = $10.13 by 2010) JUST to buy the corn to make one gallon of ethanol. Add in the processing costs and a minimal profit margin and it's more like $10 ($12)/gallon." I'm afraid your math skills are misleading you. To do the calculation you seem to be trying to accomplish, you should divide $3.00 by 2.7 gals per bushel. Cost of corn to make a gallon of ethanol is more like $1.11. You may be correct in your conclusions, but the numbers you are using are grossly exaggerated. Best, L.

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