The Cost of Ethanol

The Economist publishes a small graphic this week regarding the relative price of making ethanol from various feedstocks in the US and Brazil.

Ethanol | Economist.com

The key thing to recognize here is that the price of ethanol fuel is tied to the price of food.  Rising food prices will mean rising energy prices and the food consumer will always be willing to pay more for food than they will for fuel.  This makes ethanol an extremely risky venture, economically.