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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.
The study seeks to rebut the claim, broadly aired over the past couple of years, that widespread use of ethanol has reduced the wholesale cost of gasoline by $0.89 to $1.09 per gallon. Whatever the benefits or drawbacks of ethanol, MITâs Christopher Knittel says, price issues are not among them right now.