Dedicated Ethanol Pipeline Feasibility Study

Boswell Touts Renewable Fuel Pipeline Feasibility Study

The U.S. Department of Energy today issued a feasibility study for a dedicated renewable fuel pipeline to transport biofuels from the Midwest to other parts of the nation.

The following is a joint statement from POET and Magellan Midstream Partners, L.P. regarding the study’s findings:

“Magellan Midstream Partners, L.P. and POET are pleased with results issued recently in the Department of Energy (DOE) report on dedicated ethanol pipelines. This report will be a valuable tool for Congress as they consider the provisions for upcoming energy legislation.

While our project differs from the hypothetical project considered within DOE’s study, we believe the DOE’s conclusions are directionally correct: a large scale pipeline project is feasible under certain conditions and that a federal loan guarantee is necessary to move forward. In addition, the DOE confirms that transporting energy via pipelines has multiple benefits such as reducing congested highway and rail systems while reducing green house gas emissions when compared to other modes of transportation.

A renewable fuel pipeline would enhance the transportation efficiencies for the domestic renewable fuels industry. Pipelines are the most reliable, cost effective and safest mode of transportation capable of moving large volumes of liquid energy from where it is produced to where it is consumed. Pipelines offer rate certainty for shippers over a 15- to 20-year period, something other modes of transportation do not offer.

The analysis of our project, that is based on a smaller capital cost of $3.55 billion and similar demand, concludes that our project is economically viable with transportation rates approximately 15 percent lower (Midwest origins to east coast destinations) than rail rates. An Environmental Protection Agency (EPA) waiver for E15 and/or higher level blends makes the project even more viable. Future growth in Flexible Fuel Vehicles (FFVs) referenced in the report road also makes the project more viable.

Senator Harkin and Representative Boswell have been promoting legislation that would broaden DOE’s existing authority to grant a loan guarantee for a renewable fuel pipeline project. We support the efforts of Senator Harkin and Representative Boswell and believe this DOE report supports the inclusion of renewable fuel pipeline provisions in upcoming energy legislation.”

Rep. Boswell today issued a statement lauding the results:

“The DOE’s study findings prove that not only is a renewable fuel pipeline feasible, but it would have important benefits to Iowa and the country as a whole,” he said.

About POET
POET, the largest ethanol producer in the world, is a leader in biorefining through its efficient, vertically integrated approach to production. The 22-year-old company produces more than 1.6 billion gallons of ethanol and 9 billion pounds of high-protein animal feed annually from 26 production facilities nationwide. POET also operates a pilot-scale cellulosic ethanol plant, which uses corn cobs as feedstock, and will commercialize the process in Emmetsburg, Iowa. For more information, visit http://www.poet.com.

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