Feedstock Availability and Costs

We examine seven feedstocks with respect to supply, seasonality, price, and ethanol yield. In particular, we describe the price/t, the gallons of ethanol produced/t, and the feedstock cost/gal of ethanol. We examine both Midwestern corn and California-grown corn, because either crop might be used for ethanol production. In addition, the analysis for Mid­western corn provides a benchmark for comparison with corn and other feedstocks produced in California. Those alternatives include grapes, rai­sins, oranges, other tree fruit, almond hulls, and whey.

We describe the potential ethanol yield from almond hulls and whey, but we do not consider these materials for use in the ethanol facility. The technology exists to process almond hulls and whey for ethanol, while retaining their value as animal feed, but that activity requires an additional capital investment that is beyond the scope of this study.

Oranges

We examine oranges, rather than all citrus crops, because oranges are the primary citrus crop produced in the San Joaquin Valley. We consider both Navel and Valencia oranges. The yield and total production of or­anges can vary substantially from year to year. Considering both Navel and Valencia production removes much of the seasonality from supply consid­eration; Navel oranges are harvested during November through May, and Valencia oranges are harvested during June through October.

Currently, about 195,000 acres are planted in Navel and Valencia or­anges in California, and most of that area is within the San Joaquin Valley. Oranges from Tulare and Fresno Counties accounted for 53.6 and 14.8%, respectively, of the value of California’s production in 2001 (1). California oranges are grown primarily for the fresh fruit industry. Between 1991 and 2000, the estimated average annual total pack was 110 million cartons, or

2.6 million t of oranges. On average, 515,000 t (about 25%) were culled from the total harvest during the packing process. Fruit culled from the fresh orange industry is diverted for juice. We consider this culled fruit segment a potential source of biomass for ethanol production.

The average price received by orange growers in the southern San Joaquin Valley for culled oranges diverted to processing for juice between 1991 and 2000 was $51/t. We use that price in our analysis. The estimated yield of ethanol is 13 gal/t of culled oranges (2), resulting in an average feedstock cost of $3.92/gal of ethanol.