DOE concludes ethanol pipeline feasibility study

According to a new study recently concluded by the US Department of Energy (DOE), a pipeline carrying ethanol from the Midwest to the East Coast could be profitable if the volume of ethanol used in transportation fuel increased.

Volumes of E85, which is an 85% blend that can be used in flexible fuel vehicles, would have to increase substantially. Or a transition would have to made to using ethanol blends higher than 10%, the level at which it is currently capped, this would significantly increase the volume of ethanol that would be transported.

However, the EPA has not made a decision on whether or not US car engines can handle a higher blend of ethanol in their fuel. Refineries and small engine manufacturers have argued against an increase of the ethanol blend in fuel though.

In order for the pipeline to be cost effective enough to compete with rail and road transportation, 4.1 billion gallons of ethanol would need to be transported annually.

There are other challenges facing such a project though, as ethanol is known to cause more internal cracking to carbon steel than petrol or diesel fuels, however if necessary measures are taken this could be dealt with. The US DOE report did conclude that such a project would most likely require government financial assistance, this in itself is not a major barrier though as the US government has handed out billions of loan guarantees to the renewables industry this year, as part of the Recovery Act.

Read the article online at: https://www.worldpipelines.com/business-news/22072010/doe_concludes_ethanol_pipeline_feasibility_study/