Ethanol fermentation and potential

Ethyl alcohol is one of the United States and world's major chemicals. Beverage alcohol in the United States must be prepared from cereal grains or other natural products. The U.S. industrial alcohol market has remained relatively stable for several years at approximately 300 million gallons annually. Most of this has been produced synthetically from petroleum raw material (gas and oil). These raw materials are experiencing major price increases and are in short supply. The production of ethyl alcohol from cereal grains and cellulosic raw materials by fermentation is technically feasible and has been proven. Alcohol produced from all such materials is equal to synthetic alcohol in quality and performance. Competitive economics have controlled the basic raw materials used. The major potential new ethyl alcohol market is as a component of automobile fuels. A 10% alcohol-gasoline blend in the United States would annually require over 10 billion gallons of anhydrous alcohol. Use of alcohol for this purpose is technically feasible. However, alcohol has not been economically competitive to date.