16 March 2009 17:34 [Source: ICIS news]
HOUSTON (ICIS news)--Ethanol maker POET has signed an agreement with fuel distributor Magellan Midstream Partners to assess the feasibility of a dedicated ethanol pipeline in the US, the company said on Monday.
The project, initially estimated to cost more than $3.5bn (€2.7bn), would run from the US midwest to terminals in the northeast, spanning about 1,700 miles.
The pipeline would take several years to complete, the company said.
POET said the feasibility of the project was dependent upon the outcome of ongoing technical and economic studies associated the transport of ethanol through pipelines.
Except for a small modified pipeline in Florida, which is also used to transport gasoline, US ethanol is mostly shipped to terminals in railcars and trucks.
Ethanol critics claim reliance on railcars and trucks for transport reduces the biofuel’s carbon-footprint advantage over gasoline, which is shipped to terminals almost entirely through pipelines.
Based in South Dakota, POET is the largest US ethanol producer with more than 1.5bn gal/year of capacity.
The company has 26 ethanol production facilities in seven US states.
Okalahoma-based Magellan’s core business is transportation, storage and distribution of refined petroleum products.
($1 = €0.77)
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