The gold standard in ethanol production is to approach the cost of Brazilian ethanol at 22 cents per liter as opposed to the 30 cents per liter for corn-based ethanol in the US.
http://en.wikipedia.org/wiki/Ethanol_fuel_in_BrazilAnd even then for corn based ethanol to be competative with the energy content in oil, oil would have to cost $233 per barrel.
http://www.docstoc.com/docs/24797119/MOODYS-MEGA-MATH-CHALLENGE-A-MODELING-COMPETITION-EbookBiomass ethanol, on the other hand, has been calculated to be competative with oil at $50 per barrel.
http://www.altenerg.com/index.php?content_id=35http://new.dpi.vic.gov.au/energy/future-energy2/transport-energy/victorias-current-and-alternative-transport-fuels/ethanolProducing ethanol from corn is relatively easy: the corn’s abundant sugars are readily fermented into alcohol. But using what is essentially a food crop to produce fuel has been criticized as a misuse of resources that can harm both agriculture and the environment.
Better, critics say, to make what is called cellulosic ethanol from leaves and stalks or other crop waste or nonfood crops like switchgrass. The process uses lignocellulose, the basic structural material of all plants and the most abundant organic compound on the planet.
Now, Ronald T. Raines and Joseph B. Binder of the University of Wisconsin are proposing a different way. In a paper in The Proceedings of the National Academy of Sciences, they describe a process that uses an ionic liquid — a salt with a low melting point — in combination with water and acids at lower concentrations to produce fermentable sugars.
The researchers say their process produces sugar yields approaching those obtained by enzymatic methods. While much work remains, they say the process may prove useful in converting agricultural waste to a useful fuel.
Scientists Propose a More Efficient Way to Make Ethanol