Biofuels Cost

The costs of production for ethanol and for biodiesel given the different feedstocks are presented in Table 9. The costs reported correspond to the ETH60 scenario. Although not listed, the costs of the other scenarios follow this general trend, but with even higher corn grain ethanol and soybean biodiesel costs in the years in which corn and soybean prices rise.

The cost of ethanol from corn grain and ethanol includes all production costs except finance charges. It is possible that financing a first of kind cellulose plant might be more expensive than financing plants using existing technologies. Therefore, there may be a reduction in the cost gap between the ethanol feedstock

It should be noted that the biodiesel from yellow grease and tallow costs do include a $1.30 cost for the feedstock (Ash and Dohlman, 2006). Yellow grease costs are about 12-13 cents per pound and inedible tallow prices are about 16-17 cents per pound. These prices imply feedstock costs of about $.90 to $1.00 per gallon for biodiesel from yellow grease and $1.20 to $1.30 per gallon for biodiesel from tallow. The collection costs for yellow grease could be relatively high, while in the case of tallow, locating the conversion facility next to rendering facilities would result in a relatively low collection cost of the feedstock.

Table 8. Impact on the Average Crop Price by Scenario for Selected Simulated _Years._

Projected for the Year:

Table 8. Impact on the Average Crop Price by Scenario for Selected Simulated _Years._

Projected for the Year:

Crop and Scenario

2007

2010

2015

2020

2025

2030

$/Bushel

Corn:

ETH60CACD

2.44

3.46

4.65

2.70

2.31

3.00

ETH60CA

2.44

3.46

2.98

2.45

2.32

2.93

ETH60

2.44

3.49

3.29

2.87

2.42

3.03

USDAExt

2.20

2.60

2.60

2.51

2.46

2.41

Wheat:

ETH60CACD

3.12

3.36

4.01

3.50

3.40

3.79

ETH60CA

3.12

3.36

3.74

3.5

3.41

3.79

ETH60

3.12

3.36

3.87

3.57

3.48

3.96

USDAExt

3.10

3.25

3.55

3.5

3.47

3.43

Soybeans: ETH60CACD

5.83

6.70

7.52

6.60

6.23

6.42

ETH60CA

5.83

6.7

6.75

6.66

6.24

6.44

ETH60

5.83

6.77

7.59

6.82

6.67

6.76

USDAExt

5.40

5.95

6.10

5.85

5.69

5.53

Cotton

$/Pound

ETH60CACD

0.51

0.51

0.59

0.60

0.61

0.61

ETH60CA

0.51

0.51

0.61

0.60

0.60

0.61

ETH60

0.51

0.51

0.61

0.60

0.61

0.61

USDAExt

0.51

0.51

0.57

0.57

0.58

0.59

Dedicated Energy Crops: ETH60CACD

0.0

0.0

$/Dry 21.6

Ton 26.0

27.1

30.0

ETH60CA

0.0

0.0

27.9

26.0

28.0

30.0

ETH60

0.0

0.0

26.2

22.8

27.1

27.6

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