PART TI CHAPTER III.—INDUSTRIAL ALCOHOL. THE ECONOMICS OF INDUSTRIAT, ALCOHOL MANUFACTURE FROM AGRICULTURAL PRODUCTS. Mr. FOX read the following paper (referred to in the agenda as L.CAC AZ. Tyo The requirements of motor transport during recent years have increased the demand for liquid fuels to such an extent that consump- tion is tending to exceed production. Practically all the fuel used is obtained from crude petroleum and whilst there is no shortage at present, considerable doubt exists as to the sufficiency of future supplies, for it appears to be the general opinion that reserve supplies will be exhausted within a short period. The seriousness of this prospect has led to considerable investigation into the possibilities of producing alternative fuels and of these fermentation alcohol is commanding much attention. There are great possibilities in the use of agricultural alcohol fo bower purposes, but the danger exists that it may receive its death blow in competition with fuels produced by the liquefaction of coal or alcohol synthesised from water and carbonaceous matter. Bearing in mind the probability of serious competition by these other liquid fuels. alcohol will be considered as a possible rival to the fuel now holding the market, namely petrol. 1. EXTENT oF SUPPLIES: Since alcohol is produced from plants directly by the fermentation of sugar, and indirectly by the conversion of starch and cellulose, the rasources, unlike those of petroleum, are practically inexhaustible, and production might be expanded almost indefinitely. 2. Yierps: The yields of aleohol from raw material and motor spirit from crude petroleum compare favourably with each other. 3. Costs or Propuction: Here petroleum has the advantage, for although the cost of refining crude petroleum is about the same as that of manufacturing alcohol, a large and readily available supply of petroleum is obtained for the cost of merely sinking the well, whereas alcohol has to bear the recurrent costs of growing, harvesting, and handling large quantities of raw material. Further, in the petroleum industry, productive costs are reduced te a mimimum by utilising the bye-products, all of which are marketable, and if the manufacturing costs of alcohol are to be kept low, it will be essential to utilise the distillation residues which possess a certain manurial and feeding value. © These residues contain the whole of the fertilisating ingredients taken by the plant from the soil, and by returning them to the soll, either directly, or by feeding to stock, the alcohol will be obtained at the expense of the elements of air and water. It has been difficult at short notice to obtain data to enable a comparison to be made between the actual costs of producing petrol and alcohol, but the little information which it has been possible to collect should prove sufficient for arriving at some approximation. Cost or PropuciNG PETROL: Numerous estimates have stated the average cost of producing a gallon of petrol and delivering to steamer for export to be 6d.—7d. and the Standing Committee on the Investigation of Prices (1920-1921) estimated the maximum cost to be 10d. A()