Abstract
The commercial potential of bio-ethanol production from substandard farm products and residues from farm product processing plants in the Tokachi region was studied. Through this research it became clear that substandard wheat and sugar beets are exploitable raw materials for bio-ethanol production. The cost of producing bio-ethanol from substandard wheat is estimated to be 98.4yen/L. The cost with substandard sugar beets is estimated to be 323.7yen/L if produced at an independent plant, but it can be reduced to 87.1yen/L if the bio-ethanol plant is integrated with the wheat and sugar beet processing facilities. To reduce the cost of producing bio-ethanol it is necessary to find inexpensive raw materials as well as to find ways to lower transportation costs.