Two companies are exploring a possible ethanol pipeline through Iowa to the east coast. Two companies are exploring the possibility of building a pipeline to carry ethanol from northwest Iowa to the East Coast. Of course with recent legislation in the Iowa House to remove the labeling of ethanol from gas pumps, the pipeline would likely have to be wrapped in brown paper.
Magellan Midstream Partners of Oklahoma and Pennsylvania-based Buckeye Partners have announced a joint assessment of the project, which would cost more than $43 billion.
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.