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: Ethanol Knowledge : Raw Material

Ethanol can be produced from different types of raw material such as cassava, molasses, sugar cane, corn and maize. Geographical location plays important role in the production of raw materials in each region. Ethanol yields from each type of raw materials are portrays in the table below;

Major Ethanol Producers	Raw Material	World Market Price ($/Ton)	Liter of ethanol produced (per 1 ton of raw material)	Raw Material Cost ($/Liter)
Brazil	Sugar Cane	$27.9 / Ton	73.71 liters	$0.40 / liter
	Molasses	$ 63 / Ton	262.33 liters	$0.24 / liter
USA	Corn	$157.47 / Ton	371.23 liters	$0.42 / liter
India	Molasses	$ 63 / Ton	262.33 liters	$0.24 / liter
China	Corn	$157.47 / Ton	371.23 liters	$0.42 / liter
France	Sugarbeets	$ 51 / Ton	94.5 liters	$1.8 / liter
Thailand	Cassava	$31.40 / Ton	170 Liters	$0.18 / liter

Prices for sugarcane, molasses corn and sugarbeets are world price in USA market.
Prices for cassava is current farm price in Thailand.
Exchange rate is 36 THB/1USD

Pros

Cons

Cassava

• Adjustable to climate changes
• Waste water can be treated and produce bio-gas for boiler heating.
• Relatively low waste from production
• Can be stored underground until harvest for up to 24 months, which makes it easier to manage supplies
• Prices are stable compared to other raw materials

• Short storage time; fresh cassava must be used up within 3 days.
• Produce strong odor in the factory area.

Sugarcane and sugarcane products

• Sugarcane can be grown in many regions of the world (over 200 countries)
• Sugarcane and its products produce high waste water-suitable for producing bio-gas.

• High opportunity cost for ethanol production as sugarcane is raw material for producing sugar and confectionaries, which have very high demand and price.

Corn and corn products

• High ethanol yield per ton of feedstock
• Corn products can be stored for a long time before production.

• Corn is a major food crop, so it can experience price swings due to world demand.
• Corn has high cost as raw material for production.