A key consideration in ethanol plant feasibility is the size and cost of the plant. Current capital cost per annual gallon of installed capacity for an ethanol plant ranges from $1.25 to $2.00. For example, a 40 million gallon per year plant may cost nearly $80 million. Capital cost per annual gallon tends to decrease with plant size. A 100 million gallon per year ethanol plant may have a capital cost of approximately $125 million. Operating capital increases the financial requirements of the project.