Fuel ethanol 25c a litre?

Press, 24 June 1978, Page 21

Fuel ethanol 25c a litre?

New Zealand could produce ethanol from fodder beet at a retail price of between 20c and 25c. a litre. Dr W. A. Brown, a research economist, told a seminar on energy farming in Christchurch. The seminar was held by the forestry and biological societies of the University of Canterbury. to look at the feasibility of making transport fuel substitutes from arable crops Dr Brown, an economist at the Lincoln College Agricultural economic research unit, said that there was enough land already planted in energy crops in 1 New Zealand to produce “significant proportions" of ethanol. At a rough estimate, ethanol could be produced from wood at a retail price of from 20c to 40c a litre, said a research scientist with the Forest Research Institute (Dr D. Whitworth). Imported petrol costs would doubtless increase to that level anyway. Oil was New Zealand’s dominant form of energy ; Most of it was imported, and 64 per cent of it was used by the transport sector. Dr Brown said Because costs of oil

were sky-rocketing, substitutes had to be found As an incentive to farmers to grow energy crops, they would have to receive compensations at least equal to returns from growing meal. Dr Brown said. That could amount to $3OO to $4OO a hectare. Farmer input was another cost. Those and other costs would put the price of ethanol at an immediate pre-factorv level of about 8c a litre The ex-factory cost could be from Ittc to 20c a litre New Zealand could probably produce IS tonnes per hectare of energy crops a year, said Professor A. P Mulcork. Professor of Agricultural Microbiology at I incoln College. Fifty per cent of energy would be lost in conversion to ethanol. Only 0.5 per cent of plant material suitable for ethanol production could be used for food production, Professor Mulcock said. Looking at the net effect on overseas earnings casued by conversion from meat production to energy farming. Dr Brown said that for every $1 lost in export earnings from meat, $1.70 would be gained in. a reduced fuel bill— a net saving of 7<k