(174b) The Compelling Economics of Converting Natural Gas to Ethanol

According to the EIA, during 2011, gasoline and ethanol were six to eight times more valuable than natural gas on a per mmBtu basis. This price differential is expected to persist for the foreseeable future. This means that processes that convert natural gas to fuels such as ethanol will offer compelling economics, and will give Americans a clean, low-cost, domestic fuel.

While most advanced ethanol producers are currently focused on biomass feedstock, technologies like Coskata’s can produce this high performance fuel from natural gas. We believe, based on five years of demonstrating our natural gas-to-ethanol technology, that we can achieve significantly lower unsubsidized production costs than the industry average, offering attractive economies for consumers and opening the market for other domestic ethanol options.

On the route to American energy independence, we now have solutions with the potential to leverage the benefits of both natural gas and ethanol as domestic fuel sources.