Brazil’s sugarcane-based industry is more efficient than the US corn-based industry. Sugarcane ethanol has an energy balance 7 times greater than ethanol produced from corn. Brazilian distillers are able to produce ethanol for $0.22 per liter, compared with the $0.30 per liter for corn-based ethanol. US corn-derived ethanol costs 30% more because the corn starch must first be converted to sugar before being distilled into alcohol. Despite this cost differential in production, the United States does not import more Brazilian ethanol because of US trade barriers corresponding to a tariff of $0.54 per gallon.

13.3

What is Driving the Urgency in Renewable Jet Fuel?

Industry usage is about 60 billion gallons per year and jet fuel prices have increased 141% since 2000, according to International Air Transport Association (IATA) (www. biofueldigest. com/blog/2/2010/01/08). The Energy Information Administration projects a $3.20 cost per gallon for jet fuel by 2020.

The industry is facing billion of dollars in added costs and thus reduced profits from their required carbon credit purchases as of 2012 via their entry into the EU Emissions Trading Scheme (ETS). Mid 2011 protests from the airlines against the EU ETS are mounting and I would not be surprised that for instance the obliga­tions would be halved for airlines during the first 5 years.

The five things that airlines want from renewable jet fuel are shown in Table 13.1.

13.4