Analysis of Cellulosic Ethanol Supply Chains in Europe

Researchers from the Imperial College London recently investigated the factors that would determine the eventual production cost and commercial viability of cellulosic ethanol production in Europe. They developed a "holistic" cost model that can allow rapid comparison of different process concepts at the supply chain level, from feedstock production to feedstock consumption. Among the findings of their study are: (1) commercial cellulose ethanol production will be determined critically by the supply chain design, (2) feedstock supply is important, and the need for location-specific assessments of feedstock availability and price is highlighted, (3) "the role of subsidies and policy incentives in creating and sustaining the ethanol market highlights the importance of political engagement and the need to include political risks in investment appraisal", (4) maximum ethanol revenues and minimum need for subsidies may be realized with low percentage blends of ethanol with gasoline. Complete results of the study can be accessed from the open access journal, Biotechnology for Biofuels (URL above).

Related information of the concept of "supply chain":
http://en.wikipedia.org/wiki/Supply_chain
http://lcm.csa.iisc.ernet.in/scm/supply_chain_intro.html