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Old 02-16-2008, 01:14 PM   #8 (permalink)
oldschool
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Converting engine to Ethanol

Quote:
Originally Posted by Ryland View Post
but butanol is rather exspensive to produce, so far all of the butanol that is being produced out side of a lab in very small amounts is being produced in China...

LMAO, ok I maybe stickin my neck out here; but how expensive is it?

The last actual report I read on the cost of producing ethanol, said that it actually costs ADM $5.42 cents to produce a gallon of ethanol; that was in 05.I expect you will ask , then how can we afford to put it in fuel if it costs that much to produce?

The government subsidizes its production. If memory serves me ADM recieved several billion in subsidies for production of ethanol in 05. Lil wonder new production facilities for ethanol are springing up all over the midwest, with the government virtually gaurenteeing at least a break even situation for producers.

The next question would be who ultimately pays for those subsidies? You get to answer that.
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