Is ethanol production from sugarcane a better option given the rising crude oil prices?
If so, brief about economics of ethanol production from sugar cane? Sugarcane ethanol is generally speaking lower cost and provides much more significant reductions in greenhouse gas reductions that does ethanol made from other feed stocks, particularly corn. The economics of ethanol production is highly heterogeneous, varying on a number of location-specific factors. Despite the wide variance of production costs globally, feedstock availability and its cost are generally the most important drivers of feasibility. These factors in turn hinge on land availability and quality, agricultural productivity, labour costs and so on. Operating costs hinge upon plant location, size and technology. There maybe also need to be investment in storage infrastructure. The second key important determinant of viability is ethanol’s competitiveness with rival fuels in the transport sector (and in some countries, for example Africa, in the household markets). This is a function of cost, demand and availab
