Advertisement

Applied Biochemistry and Biotechnology

, Volume 113, Issue 1–3, pp 95–110 | Cite as

Economic analysis of ethanol production in California using traditional and innovative feedstock supplies

  • Ellen I. Burnes
  • John Hagen
  • Dennis WichelnsEmail author
  • Kristen Callens
Article

Abstract

In this article, we estimate the costs of using alternative feedstocks to produce ethanol in a 40 million-gal facility in California’s San Joaquin Valley. Feedstocks include corn imported from Midwestern states and locally grown agricultural products such as corn, grapes, raisins, oranges, and other tree fruits. The estimated feedstock costs per gallon of ethanol include $0.92 for Midwestern corn, $1.21 for locally grown corn, $6.79 for grapes, $3.36 for raisins, $3.92 for citrus, and $1.42 for other tree fruit. Adjusting for coproduct values lowers the estimated net feedstock costs to $0.67/gal of ethanol for Midwestern corn, $0.96 for locally grown corn, $6.53 for grapes, and $3.30 for raisins. We also examine the potential increases in net revenue to raisin producers, made possible by having an alternative outlet available for selling surplus raisins.

Index Entries

Biofuels renewable energy raisins ethanol feedstocks 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    California Department of Food and Agriculture. (2002), Agricultural Resource Directory, Sacramento, CA.Google Scholar
  2. 2.
    California Department of Food and Agriculture. (1980), Ethanol Yields by Crop, Sacramento, CA. Unpublished.Google Scholar
  3. 3.
    Urbanchuk, J. M. and Kapell, J. (2002), Ethanol and the Local Community, Renewable Fuels Association, Washington DC.Google Scholar
  4. 4.
    California Department of Food and Agriculture. (2001), Agricultural Resource Directory, Sacramento, CA.Google Scholar
  5. 5.
    California Department of Food and Agriculture. (2002), Synopsis of Standardization Provision and Procedures, Sacramento, CA.Google Scholar
  6. 6.
    Raisin Administrative Committee. (2002), Analysis Report, Fresno, CA.Google Scholar
  7. 7.
    United States Department of Agriculture (USDA). (2002), Market News Reports, Market News Service, AMS, Washington DC.Google Scholar
  8. 8.
    California Energy Commission. (2001), Costs and Benefits of a Biomass-to-Ethanol Production Industry in California, Sacramento, CA.Google Scholar
  9. 9.
    Yancey, M. (2003), Paper presented at the California Ethanol Workshop, April 14, Sacramento, CA (www.bbiothanol.com/doe/ca/Yancey_CA_DOE.pdf).Google Scholar
  10. 10.
    California Energy Commission. (1999), Evaluation of Bio-Mass to Ethanol Fuel Potential in California: Report to the Governor, Sacramento, CA.Google Scholar
  11. 11.
    Pacific Gas and Electric. (2003), Advice Letter No. 2471-G, issued by Karen A. Tomcala, Vice President, Regulatory Relations, San Francisco, CA.Google Scholar
  12. 12.
    Northwestern Corporation. (2002), Northwestern Energy Signs Gas Supply Contract to Serve New South Dakota Ethanol Plant, News Center News Display, Sioux Falls, SD.Google Scholar
  13. 13.
    Whims, J. (2002), Corn Based Ethanol Costs and Margins: Attachment 1. Agricultural Marketing Resource Center, Department of Agricultural Economics, Kansas State University, KA (www.agmrc.org/corn/info/ksuethl.pdf).Google Scholar
  14. 14.
    Shapouri, H., Gallagher, P., and Graboski, M. S. (2002), Agricultural Economic Report No. 808, US Department of Agriculture, Office of the Chief Economist.Google Scholar
  15. 15.
    Gabler, E., Kalter, R. J., Boisvert, R. N., Walker, L. P., Pellerin, R. A., Rao, A. M., Hang, Y. D. (1981), Cornell agricultural economics staff paper, no. 81–27.Google Scholar
  16. 16.
    Oxy Fuel News. (2002), Oxy Fuel News Price Report, 1995–2002, Hart Publications, Potomac, MD.Google Scholar

Copyright information

© Humana Press Inc. 2004

Authors and Affiliations

  • Ellen I. Burnes
    • 1
  • John Hagen
    • 1
  • Dennis Wichelns
    • 1
    • 2
    Email author
  • Kristen Callens
    • 1
  1. 1.Department of Agricultural EconomicsCalifornia State UniversityFresno
  2. 2.California Water InstituteCalifornia State UniversityFresno

Personalised recommendations