The Midwest has plenty of ethanol and biodiesel… the big population centers in the Eastern United States needs those renewable fuels. You’d think it would be a match made in heaven, but the lack of infrastructure to move those biofuels has been a problem, adding extra transportation costs. But a new piece of legislation looks to rectify that.
According to this story from Midwest AGNet, a bill sponsored by U.S. Senators Tom Harkin (D-IA), John Thune (R-SD) and Tim Johnson (D-SD) looks to give loan guarantees for the construction of renewable fuel pipeline projects:
“We must seize control of our energy future and take major steps towards the use of clean, renewable home-grown sources of energy,” said Harkin. “Promoting the planning and development of projects that transport renewable fuels efficiently and inexpensively helps enlarge the market for biofuels like ethanol, reduces our dependence on foreign fuels and will provide good construction jobs.”
“Pipelines are the safest, most reliable, and cost effective way to move biofuels from the areas they are produced to the markets where they are consumed,” said Thune. “These pipelines will reduce energy costs across the country as well as create an estimated 25 jobs for every $1 million of construction. Access to ethanol-dedicated pipelines will benefit both consumers and the ethanol industry for years to come.”
“Many experts believe that a pipeline network to transport biofuels is necessary to achieve the aggressive renewable fuel requirements. But limited transportation options of truck, rail and barge will only get us so far. Pipelines are necessary to get this fuel moving to where the people are. These loan guarantees will spur pipeline development and help create new jobs and lower our dependence on foreign sources of energy,” said Johnson.
The importance of a pipeline is not just the lower costs of transportation. The article goes on to point out that they have 30 percent less emissions than railcars and 87 percent less than trucks. Plus, it’s just a safer way to get fuel from point A to point B. Finally, construction of renewable fuel pipelines could create up to 25,000 jobs nationwide.