Two energy firms hope to build ethanol pipeline



Feb. 20

Two energy companies are hoping to overcome technological hurdles to construct an ethanol pipeline that would transport the alcohol based fuel from the Midwest to the East Coast.

Magellan Midstream Partners LP, of Tulsa, Okla., and Buckeye Partners LP, of Breinigsville, Pa., announced Feb. 19 that they have begun a joint assessment to determine the feasibility of construcing a dedicated pipeline that could transport more than 10 million gallons of ethanol per day from production facilities in Iowa, Illinois, Minnesota and South Dakota to terminals in Pittsburgh, Philadelphia and New York City.

If it proves feasible, the companies estimate the project would cost in excess of $3 billion, would span 1,700 miles and take several years to build.

"We believe the proposed pipeline is a unique and innovative solution to meeting the growing need for renewable fuels in the Northeast," said Don Wellendorf, Magellan president and CEO. "Pipelines have consistently been chosen over the years as the safest, most reliable and cost effective method for moving liquid fuels."

However, today ethanol must be transported by truck or rail because of problems successfully moving the alcohol-based fuel through pipelines, where it would tend to absorb moisture in the pipe, damaging the quality of the fuel.

The feasibility of the pipeline project is dependent upon the successful outcome of ongoing studies addressing technical and economic issues associated with transporting ethanol via pipeline, according to the companies. The technical and feasibility studies should be completed by the end of 2008, they said.

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