The latest report titled “Ethanol Production” by Procurement Resource, a global procurement research and consulting firm, provides an in-depth cost analysis of the production process of Ethanol.
Procurement Resource study is based on the latest prices and other economic data available. It also offers additional analysis of the report with detailed breakdown of all cost components (capital investment details, production cost details, economics for another plant location, dynamic cost model). In addition, the report incorporates the production process with detailed process and material flow, capital investment, operating costs along with financial expenses and depreciation charges.
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Procurement Resource’s detailed report describes the stepwise consumption of material and utilities along with a detailed process flow diagram. Furthermore, the study assesses the latest developments within the industry that might influence Ethanol production cost, looking into capacity expansions, plant turnarounds, mergers, acquisitions, and investments.
Procurement Resource Assessment of Ethanol Production Process:
1. Ethanol Production From Hydration Process/ Synthetic Route: This report provides the thorough economics of ethanol industrial production across ethanol manufacturing plants via the hydration process or the synthetic route. At first, ethylene gets hydrated using an acidic catalyst as a blend of ethylene and steam is passed. The derived ethanol has to be purified to be consumed.
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2. Ethanol Production from Fermentation Process: This report presents the extensive cost requirement of ethanol industrial production across ethanol manufacturing plants via the fermentation process using crops rich in carbohydrates like sugar cane, rice, maize etc. The fermentation process turns carbohydrates into ethanol and carbon dioxide. It works best at temperatures from 25°C to 35° C in the absence of oxygen, generating an aqueous solution. Higher alcohol levels demand additional distillation.
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Product Definition:
Ethanol (C2H6O) is a flammable, colourless liquid produced via fermentation and used as an alternative fuel in motor fuel or an additive in gasoline and is considered a more “renewable” energy source. Besides its use in producing alcoholic beverages, it also works as a replacement for gasoline as a fuel in internal combustion engines. The liquid does not have a distinct colour occurring in a liquid state with a weak characteristic odour. It is produced via yeast fermentation as well as through a petrochemical process.
Market Drivers:
Ethanol has its main application as a solvent to prepare many medicines in the chemical and pharmaceutical industry. It is also replacing gasoline as a fuel in the automobile industry. Furthermore, since it has the use as a topical disinfectant and as a bactericidal, its demand has been surging since the COVID-19 pandemic leading to improved price trends.
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