Ethanol and methanol: how the costs compare

This article compares the cost of producing ethanol and methanol from grain. At 1981 prices, the cost of these alcohols has been estimated at about $1.88 per gallon, compared with the current selling price of anhydrous grain alcohol at $1.80 per gallon. The use of gasohol carries a federal subsidy of 40 cents per gallon until 1992 which brings the price of gasohol down to slightly below that of gasoline. The federal subsidy has attracted new investment and the output of large central ethanol plants in the Untied States is expected to reach 500 to 750 million gallons by 1985. However even with a substantial 15% growth rate, it is estimated that ethanol production in 1990 will only be a small fraction of the US gasoline demand.