Capital costs in the Ethanol Industry Essay

Capital costs in the Ethanol Industry Essay

Length: 705 words (2 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Some information about capital costs in the ethanol industry is now available because the results of a recent USDA Cost of Production Survey are now available [4]. The capital cost and capacity data of the firms in this survey are used for a statistical estimate of the capital costcapacity relationship.

There are two technologies in the ethanol industry. Most existing dry mills are small, with capacities range of 5–30 million gallons per year (MGY). However, dry mills constructed during the current expansion are from 40 to 100MGY of capacity. Dry mills produce one composite byproduct; distillers dried grains (DDG) contains the residual protein, oil and fiber after the carbohydrate is removed for starch processing and ethanol production.\

The wet mills of the United States tend to be larger. The capacity ranges from 50MGY and up
to 330MGY. Wet milling is a more complex technology; the byproduct is separated into corn gluten feed with about 20% protein, corn gluten meal with about 60% protein, and edible oil.
Many wet mills of the United States are also multifunctional, with a ...

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Future Use of Technology in the Feedlot Industry Essay

- The livestock industry has historically been the largest source of demand for corn, and has been continually trended upward as demand grows for meat products. 2006 marked the beginning of a drastic change in the economy of this sector. Feed costs more than doubled, and price variability increased sharply. The major driver of this change was the demand for corn used for ethanol production. The price of feed increased so rapidly that the prices of finished animals could not keep up, and cattle producers experienced record losses....   [tags: antibiotics and beta-agonists]

Better Essays
776 words (2.2 pages)

Essay on The Corn Ethanol Industry

- The corn ethanol industry has undergone several public relations iterations in recent years. It once emanated a cure all aura to domestic fuel market volatility, environmental concerns, and vulnerabilities to international energy markets. As research took place regarding the feasibility of large scale corn ethanol production, questions were raised as to the actual net economic and environmental effects of production. With the recent EPA change in corn ethanol classification, the market reality has once again changed....   [tags: Alternative Energy]

Better Essays
684 words (2 pages)

Essay about Should Corn Ethanol Be Used For Fuel?

- Should corn ethanol be used for fuel. Alternative energy is the world’s race as of now. As the space race concluded and the nuclear arms race died down, alternative energy became the race of the ages. In today’s society, with today’s technology there are all sorts of forms of alternative energies. These energies include hydro power, geothermal, biomass, nuclear power, and so much more. With all of these variations of alternative energy the question now becomes, which form is the best to use. Are any of them safe....   [tags: Ethanol fuel, Gasoline, Energy development]

Better Essays
2514 words (7.2 pages)

The Effects on theThe Use of Water for the Production of Ethanol Essay

- Water, over half the planet is covered in this miraculous molecular compound. Water provides us with necessary hydration for our bodies, gives us means to grow crops and raise animals, it acts as a highway for boats and barges, and through water, humanity has thrived. The recipe for water is a relatively simple one, all you need is to combine one-part oxygen and two-part hydrogen and suddenly you have the key to life on earth. Water is arguably the most valuable resource that exists on planet earth and yet, it is quickly slipping out of our reach....   [tags: environmental issues, water-to-ethanol payoff]

Better Essays
1007 words (2.9 pages)

Potential for Large Scale Ethanol Production Essay

- Potential for Large Scale Ethanol Production Recent legislation by the Congress of the United States has created a mandate for 5 billion gallons of renewable fuel (notably ethanol) to be consumed annually by 2015. In light of this recent push for alternative fuels, many different biomass solutions have been considered to meet the energy need for the 200 million cars on the road. While the most efficient bio-fuels are derived from palm oil and sugarcane, the Unites States has begun to focus on the more regional corn crops to produce new renewable fuels....   [tags: Renewable Fuel Ethanol Essays Papers]

Better Essays
1007 words (2.9 pages)

Essay on Costs Of Production For Nike Company

- There are numerous costs of production for Nike Company which can be placed into two categories: fixed costs and variable. Fixed costs are those that remain the same for all production and variable costs change with each project. The organization’s manufacturing process, machinery, research and development costs make up the fixed costs. On the other hand, administration, distribution, labor and raw material are the variable costs. All of these are required in the organizations operation to ensure that it remains profitable....   [tags: Supply and demand, Costs, Manufacturing]

Better Essays
794 words (2.3 pages)

Essay Ethanol: Alternative Fuel

- Ethanol is an alcohol-based fuel made by fermenting and distilling starch crops, such as corn. It can also be made from “cellulosic biomass” such as trees and grasses. The use of ethanol can reduce our dependence upon foreign oil and reduce greenhouse gas emissions. As ethanol is available as E85, a high-level ethanol blend, as its a alternative fuel that can be used in flexible fuel vehicles that is a vehicle type that has an internal combustion engine and runs on either E85 or gasoline. With a 113 octane rating, ethanol is the highest performance fuel on the market and keeps today’s high-compression engines running smoothly....   [tags: Starch Crops, Waste Byproducts]

Better Essays
911 words (2.6 pages)

The unsuccesful use of ethanol Essay

- The Unsuccessful Use of Ethanol Current interest in ethanol fuel in the United States mainly lies in bio-ethanol, produced from corn, but there has been considerable debate about how useful bio-ethanol will be in replacing fossil fuels in vehicles. Concerns relate to the large amount of arable land required for crops, as well as the energy and pollution balance of the whole cycle of ethanol production. I don't think the US could implement the use of ethanol or other alternate fuels successfully as Brazil has done for many reasons: firstly, ethanol production in the United States does not benefit the nation's energy security, its agriculture, economy or the environment because ethanol produc...   [tags: Alternative fuel bio-ethanol]

Free Essays
779 words (2.2 pages)

Capital Punishment: Costs Of The Death Penalty Essay

- Capital Punishment: Costs of The Death Penalty Let us suppose that killing as a form of punishment is a moral and universally accepted practice. Would it then be acceptable to issue this irreparable sanction to a select few while allowing others, equally accountable, to avoid it. It is acceptable to our criminal justice system for it seems to be standard operating procedure. Many embrace the death penalty based on the "eye for an eye" concept. There is certainly some merit to this argument and it seems quite fair and logical....   [tags: essays research papers]

Better Essays
631 words (1.8 pages)

Essay on Costs

- Costs Estimation Generally Accepted Accounting Practice The main purpose of searching for a new method to estimate cost if due to the erroneous practices of accounting. There is a wide recognition of this problem but most companies still have not gone to a different approach. The GAAP principles do not provide the kind of cost detail and information focus required in today’s capital intensive, automated, and complex manufacturing and distribution. It generates an erroneous and inverse relationship between computed product cost and current production volume....   [tags: essays papers]

Better Essays
1217 words (3.5 pages)