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Although the cost of each gallon of ethanol produced in the MicroFueler depends on the price of sugar, electricity, and water, Thomas Quinn maintains that it can be made for somewhere around $1 per gallon. The company is trying to make inedible sugar available from Mexico, which can be bought for as little as 2.5 cents per pound.
1 In 1860, German inventor Nikolaus Otto uses ethyl alcohol as a fuel in an early internal combustion engine. 2  In 1862 and 1864, a tax on alcohol was passed in the U.S. to pay for the Civil War, increasing the price of ethanol to over $2.00 per gallon. Ethanol production rises to the 4-billion-US-gallon (15,000,000 m 3) level. 2  Between 1997 and 2002, three million U.S. cars and light trucks are produced which could run on E85, a blend of 85% ethanol with 15% gasoline.