New Ethanol Technology

Speaking of the technology revolution, Stratfor points out that,

At a Brazilian ethanol conference June 4-5, Brazilian government-funded researchers said they have perfected a method of producing cellulosic ethanol that drastically reduces the cost of processing.

Cellulosic Ethanol comes from the part of the plant, corn for example, that is the part thrown away. You know I’m not a fan of ethanol, but consider

Cellulosic ethanol production has to first break up the cellulose. (Cellulose is polymerized sugar.) Though the price of doing that has dropped by a factor of 10 in the past decade, it is still around $2.25 a gallon.

Now the Brazilian process brings the price down to $.35 to $.50 a gallon. That could have a big impact on agrarian countries and could lessen the overall demand for oil for gasoline.

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