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Today most biofuels are not currently cost-effective without significant subsidies. "America's ethanol program is a product of government subsidies. There are more than 200 different kinds, as well as a 54 cents-a-gallon tariff on imported ethanol. This prices Brazilian ethanol out of an otherwise competitive market.
At this time, costs of conversion of cellulosic fuels, at $1.46 per gallon, were roughly twice that of corn-based ethanol, at $0.78 per gallon. Cellulosic biofuels from corn stover and miscanthus were 24% and 29% more expensive than corn ethanol, respectively, and switchgrass biofuel is more than twice as expensive as corn ethanol. [29]
Using corn as a feedstock to produce either ethanol or butanol seems infeasible without significant technology improvements regarding yields. Currently, about 2.5 US gallons (9.5 L) of butanol can be produced per bushel of corn (373 l/t). [44] Meanwhile, about 2.75 US gallons (10.4 L) of ethanol can be produced per bushel of corn (410 l/t). [45]
As of 2011, blenders received a US$0.45 per gallon tax credit, regardless of feedstock; small producers received an additional US$0.10 on the first 15 million US gallons; and producers of cellulosic ethanol received credits up to US$1.01. Tax credits to promote the production and consumption of biofuels date to the 1970s.
2013 – Raízen begins construction of a cellulosic ethanol facility using Iogen technology in Brazil. The facility is located adjacent to Raízen's Costa Pinto mill. Raízen says it plans to expand to eight cellulosic ethanol plants using Iogen's technology. 2012 - Iogen Corporation lays off 150 workers at its Ottawa headquarters.
However, the much cheaper manufacturing of grain-based ethanol, along with the low price of oil in the 2010s, meant that cellulosic ethanol was not competitive with these established fuels. As a result, most of the new refineries were closed by the mid-2010s and many of the newly founded companies became insolvent.
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DuPont Danisco Cellulosic Ethanol LLC (DDCE) was a 50/50 joint venture between DuPont and Genencor, a subsidiary of Danisco. [1] The company is accelerating development and deployment of cellulosic ethanol, which is made from non-food biomass. DDCE plans to license its technology and also will engage in limited operations of cellulosic ethanol ...