Here in Australia we grow sugarcane on the narrow coastal strip in Queensland (the north-eastern state). Unlike Brazil, which only uses the first crush for crystal sugar, we try and get as much sugar out as possible, leaving the residual molasses that goes to stockfeed.  This cheap stuff is what the ethanol industry is based on.

CSIRO (government research) calculates an ERoEI of about 2,  so E10 (90% gasoline, 10% ethanol) only saves 5% of fossil CO2 emissions.

Total area of cane = 441,000 ha
Total molasses = 1,273,000 tonnes/year
Distillery conversion rate = 237.5 litres (ethanol) / tonne
Total ethanol from molasses = 302 MegaLitres / year
Australian gasoline consumption = 19,867 ML/year
Therefore maximum blend possible = E1.5

So talk of mandating E10 is impossible using only sugarcane molasses, even for a country that produces 6 times more sugar than it consumes.

ERoEI for ethanol from spoilt wheat is only about 1.2, but will that stop them ? No, its clean green energy from the sun and don't you dare say different.

Dave
www.peakoil.org.au