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 consumption
 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.

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