Cellulosic ethanol heads for cost competitiveness by 2016

Ethanol manufactured from non-food, or cellulosic, feedstock is on course to be cost competitive with corn-based ethanol by 2016, according to an industry survey conducted by research company Bloomberg New Energy Finance (BNEF).

The 2012 results showed:

•  the cost of cellulosic ethanol production was $0.94 per litre
• That is around 40% higher than the $0.67 per litre cost of producing ethanol from corn, which dominates the US biofuel market and is competitive with US gasoline
• By 2016, respondents thought the price of cellulosic ethanol would match that of corn-based ethanol

Harry Boyle, lead biofuel analyst at BNEF, says: ‘The cellulosic ethanol industry has something of a history of over-promising cost reductions and under-delivering. However, it may be dangerous to assume that it will not become competitive this decade. If our survey proves accurate, cellulosic ethanol will make meaningful inroads into the vehicle fuel market during the last years of this decade.’