Substantial reductions in ethanol production costs may
 be made possible by replacing corn with less expensive
 cellulose-based feedstocks. Cellulosic feedstocks
 include agricultural wastes, grasses and woods, and
 other low-value biomass such as municipal waste.
 Although cellulosic materials are less expensive than
 corn, they are more costly to convert to ethanol because
 of the extensive processing required. Cellulase enzymes
 (used to convert cellulose to sugar) at $0.45 per gallon of
 ethanol are currently too expensive for commercial use.
 Current technology, however, could reduce the cost of
 enzymes to less than $0.10 per gallon of ethanol if a sufficient
 market develops.15  Advances in biotechnology
 could lower costs further by allowing fermentation of
 the nonglucose sugars produced in the hydrolysis of cellulose
 using genetically engineered bacteria. If Department
 of Energy goals are met, the cost of producing
 ethanol could be reduced by as much as 60 cents per gallon
 by 2015.16  Currently, the cost of producing ethanol
 from cellulose is estimated to be between $1.15 and $1.43
 per gallon in 1998 dollars.17  [Page 4] 
 -----snip-----
 The use of cellulosic biomass in the production of
 ethanol also has environmental benefits. Converting cellulose
 to ethanol increases the net energy balance of ethanol
 compared to converting corn to ethanol. The net
 energy balance is calculated by subtracting the energy
 required to produce a gallon of ethanol from the energy
 contained in a gallon of ethanol (approximately 76,000
 Btu). Corn-based ethanol has a net energy balance of
 20,000 to 25,000 Btu per gallon, whereas cellulosic ethanol
 has a net energy balance of more than 60,000 Btu per
 gallon.31  In addition, cellulosic ethanol use can reduce
 greenhouse gas emissions. Argonne National Laboratory
 estimates that a 2-percent reduction in greenhouse
 gas emissions per vehicle mile traveled is achieved
 when corn-based ethanol is used in gasohol (E10), and
 that a 24- to 26-percent reduction is achieved when it is
 used in E85. Cellulosic ethanol can produce an 8- to
 10-percent reduction in greenhouse gas emissions when
 used in E10 and a 68- to 91-percent reduction when used
 in E85.32   [Page 7] 

>  [Available from]
>  Outlook for Biomass Ethanol Production and Demand
>  by Joseph DiPardo  (Completed Apr/2000)
>  US US Energy Information Administration - DOE
>  http://www.eia.doe.gov/oiaf/analysispaper/pdf/biomass.pdf PDF

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