POET Explores a Possible Ethanol Pipeline

Posted on 01/13/2010 at 12:00 AM by Christa Hartsook

A proposed ethanol pipeline would be an economic boost for the U.S., a new report demonstrates, creating almost 80,000 direct, indirect and induced jobs across the country.

POET and Magellan Midstream Partners, L.P. have formed a joint venture to assess the feasibility of a 1,800-mile ethanol pipeline from ethanol production facilities in the Midwest, starting at Davison County, S.D., to distribution outlets in the northeast U.S., ending in Linden, N.J. Once the feasibility study is complete, the pipeline would be operational as early as 2014.

A recent report from the consulting firm LECG shows that the majority of the jobs created will be in the construction and transportation industries. More than 50,000 jobs will come from construction alone.

The pipeline project would provide approximately 1,100 permanent jobs after construction is complete.

“This project has the clear environmental benefit of dramatically reducing carbon emissions from traditional ethanol transportation, and this latest report shows its important impact on our economy as well,” POET CEO Jeff Broin said. “Ethanol continues to play a large role in the new energy economy taking shape here in the United States.”

“Pipelines are the most cost efficient, safest and most reliable mode of transportation for liquid energy. Construction of a large-scale renewable fuel pipeline complements the national objective of creating quality jobs while increasing transportation efficiencies for the growing renewable fuels industry,” Magellan COO Mike Mears said.

A loan guarantee with the U.S. Department of Energy is necessary for this project to become a reality. Congress is considering amendments to DOE’s loan guarantee program to include large-scale renewable fuel pipeline projects.

Besides job creation, the report outlines other economic benefits of the project including:

  • $6.6 billion in U.S. economic growth
  • $3.7 billion in household income
  • $0.7 billion in federal tax revenues
  • $0.6 billion in state and local tax revenues

The LECG report and proposed pipeline route map is available on POET’s Website.

Categories: Renewable Energy