“The pipeline industry, led by the Association of Oil Pipe Lines (AOPL) and API, are moving forward with an accelerated research program to address integrity issues related to shipping ethanol/gasoline blends. The project, managed by the Pipeline Research Council International (PRCI), will focus on an accelerated research of 6-12 months. It plans to identify those blends that: 1) can be moved in existing pipelines with little to no modification to the system, 2) can be moved with appreciable modifications, and 3) cannot be moved in existing systems but could be moved in specially designed new transmission or short-haul distribution systems.”
Question - How long before the government approves or even mandates an ethanol blend that is compatible with pipeline transport? Could be bad news for the rail industry.
Quote of note #2:
“Corn is increasingly being trucked to local ethanol plants, as rail carloads of corn to distant markets (export and feedlots) have been decreasing.”
Seems that what I hypothesized a while back is coming true - The ethanol boom may lead to overall reduced carloads out of the Corn Belt, not an increase has some industry watchers have surmised would happen.
The ethanol boom is largely predicated on the tax breaks being given to ethanol producers, how long the breaks stay in place will have a large effect on how long the boom lasts.
As it stands right now, ethanol is shipped by tank car because even the 90/10 gasoline/ethanol blend is too corrosive for existing petroleum product pipelines. I would assume that a specialized pipeline to handle various ethanol blends would require the pipe to be lined with corrosion-resistant material, which would drive up the cost of laying such a pipeline.
Here is a excellent piece for an overview of the problems of shipping by pipeline and how the problems could be addressed, and what stands in the way of those solutions.
Basically, ethanol can easily pick up water, which degrades the octane level, and water is a normal occurance inside pipelines. Ethanol also can become contaminated with other things in the line which would not be good for your car’s engine. Finally, ethanol is hard on pipeline parts, particularly valves and seals.
Gee - The pipeline bubbas get busy with research when the $$$ is on the line. Guess the pipeline safety/ casings work will take another step in the wrong direction…[V][V][V]
It will be interesting to see if railroads will grant easements under their tracks for these new ethanol pipelines and what the cost and conditions for such easements may be. I predict they will be most expensive and burdensome…lol…(but then again, what would I know…)
Nah. Some pointy-haired middle manager will see the opportunity to boost his immediate bottom line and grant the easements at a good price, just to get the project done on their watch, regardless of the long-term ramifications of such an arrangement.