Proposed independent ethanol pipeline
The nation's largest producer of ethanol hopes to build an 1,800-mile, $3.5-billion ethanol distribution pipeline that would pass through Lancaster County.
The up-to-20-inch buried pipeline, if built, would likely go east-west through Lancaster County in the existing right-of-way of a petroleum pipeline owned by Buckeye Partners.
That pipeline passes through Mount Joy, Rapho, East Hempfield, Manheim, Upper Leacock, Earl and Salisbury townships.
The proposed Independent Pipeline would be the first pipeline dedicated to the transport of ethanol, the controversial gasoline additive.
It would run from South Dakota, gathering ethanol from the main production states of Iowa, Minnesota, Illinois, Indiana and Ohio, and deliver ethanol to major terminals in the Northeast. The pipeline's terminus would be in Linden, N.J.
Three of those terminals are in Harrisburg, Philadelphia and Pittsburgh.
Currently, ethanol is transported by truck or rail. The alternative biofuel cannot use the vast grid of existing petroleum pipelines because of its corrosive nature.
Buckeye, based in Breinigsville, Lehigh County, along with Magellan Midstream Partners, a petroleum distributor based in Tulsa, Okla., originally proposed the Independent Pipeline in early 2008.
But Buckeye has dropped out of the venture, though it said it still supports the pipeline and the company's rights of way here likely would be used.
Magellan's new partner is POET, an ethanol producer based in South Dakota.
Bruce Heine, Magellan Midstream spokesman, said federal loan guarantees are the key to building the pipeline.
Heine said the company is hopeful Congress will authorize additional loan guarantees for energy projects early next year.
"We really don't have a project unless we are eligible for federal financing," he said. A number of bills have been introduced by Midwestern congressmen to do just that.
The U.S. Environmental Protection Agency last week said it probably would increase the percentage of ethanol that can be blended into ordinary gasoline, from 10 percent to 15 percent.
The authorization will depend on tests to determine that the higher blend does not damage cars, EPA said.
The move would increase demand for ethanol, whose long-term value as an energy fuel — especially that of corn-based ethanol — has been debated for its effects on food supply, water and the environment.