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Abstract: 

The infrastructure necessary to provide ethanol as an alternative energy product is dependent on these primary components of the process: cost of acquiring the feedstock (primarily corn at this time) necessary to produce the alcohol, the production costs necessary to convert the feedstock into alcohol, and the cost of delivering the final product to end users. This paper will address the feedstock and processing costs related to producing ethanol. Income and excise tax credits related to ethanol production reduce production costs resulting in increased profitability for ethanol production. Distribution issues related to providing ethanol to consumers are not currently eligible for any income or excise tax credits and will not be discussed in this paper.

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Affiliations:  1: University of North Dakota; 2: University of North Dakota; 3: PricewaterhouseCoopers.