Poet, Magellan To Study Ethanol Pipeline

By DIRK LAMMERS

SIOUX FALLS, S.D. (AP) — Biofuels company Poet LLC and Magellan Midstream Partners LP on Monday announced a joint venture to study whether they can build a dedicated ethanol pipeline with an estimated cost of more than $3.5 billion.

The 1,700-mile pipeline would deliver ethanol from plants in Iowa, South Dakota, Minnesota, Illinois, Indiana and Ohio to distribution terminals in the northeastern United States.

Jeff Broin, Poet's chief executive, called the agreement an important step in improving long-term transportation economics for biofuel producers and customers.

"A project of this nature would provide benefits throughout the ethanol industry, agricultural community and the economy in general," Broin said in a statement. "It would also represent another major step forward in the efficiency of producing and delivering ethanol to the marketplace."

Poet, based in Sioux Falls, S.D., is the nation's largest ethanol producer with more than 1.5 billion gallons of annual production from 26 ethanol plants.

Tulsa, Okla.-based Magellan Midstream Partners LP transports, stores and distributes refined petroleum products.