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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.
Specifically, ethanol prices exceeded CBOB prices by an average of $0.30 per gallon during the four weeks between March 20 and April 10. Since that time ethanol prices have once again settled well-below CBOB prices. An alternative approach to measuring ethanol blending margins is presented in Figure 2.