(Des Moines)– Iowa could be home to an ethanol pipeline.
Two companies are exploring the possibility of building a pipeline to carry ethanol from northwest Iowa to the east coast.
Magellan Midstream Partners of Oklahoma and Pennsylvania-based Buckeye Partners have announced a joint assessment of the project, which would cost more than three billion dollars.
Ethanol is not shipped via gasoline pipelines because of concerns the alcohol would corrode the pipes and absorb water.
The plan faces several hurdles, including a government loan guarantee to make it financially feasible.
The proposal tentatively calls for three sites in Iowa: near Mason City, Fort Dodge and in O’Brien county, with other sites in Indiana and Ohio.
The pipeline could carry more than 10 million gallons of ethanol a day.
(Story from the Associated Press.).
