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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.
Ethanol is produced in 3 ways: 1  Ethanol is produced both as a petrochemical (chemical products derived from petroleum), through the hydration of ethylene. 2  Biologically, by fermenting sugars with yeast. 3  Ethanol may also be produced industrially from ethene (ethylene). The largest single use of ethanol is as a motor fuel and fuel additive. 2  Ethanol combustion in an internal combustion engine yields many of the products of incomplete combustion produced by gasoline. 3  Hydrous ethanol (about 95% ethanol and 5% water) can be used as fuel in more than 90% of new cars sold in the country.