Ethanol pipeline on hold
Intelligencer Journal
Lancaster New Era
Jan 10, 2012 22:57
By AD CRABLE
Staff Writer
A proposed ethanol pipeline that could cross seven Lancaster County townships has been put on hold.
The nation's first ethanol pipeline, a $3.5 billion, 1,800-mile project called the Independent Pipeline, was proposed in 2010 by POET Ethanol Products, the nation's largest corn-based ethanol producer, and Magellan Midstream Partners, a pipeline-building company.
It would link the Midwest's considerable ethanol-producing region to East Coast refineries.
But the project hinged on a federal loan guarantee which has not been forthcoming from Congress, despite several bills.
Said POET spokesman Nathan Schock, "We continue to believe that it is a viable project with tremendous benefits for the country, but with little prospects for a federal loan guarantee in the near future, we are currently focused on other efforts."
When unveiled, the project proposed that the 20-inch-diameter pipeline follow an existing petroleum pipeline right of way owned by Buckeye Partners.
The Buckeye pipeline runs through Mount Joy, Rapho, East Hempfield, Manheim, Upper Leacock, Earl and Salisbury townships.
Ethanol currently is transported across the country by tanker trucks and by rail. Ethanol cannot be used in existing petroleum pipelines because of its corrosive nature.
Read more: http://lancasteronline.com/article/local/566422_Ethanol-pipeline-on-hold.html#ixzz1j7h2UOlp
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