Assessment of Ethanol Transportation and Marketing Infrastructure

An analysis of the additional fuel transportation and marketing infrastructure that would be required if 30.32 billion liters of ethanol (eight billion gallons) were used annually as transportation fuel was completed. The ethanol was assumed to be produced in five major locations because of their ready access to biomass and cellulose. Advanced ethanol production technology to readily use cellulose as an ethanol feedstock was assumed. Ethanol was assumed to be moved by pipeline, barge, rail and tank trucks. Approximately 9,170 service stations were assumed to have to include ethanol storage and dispensing for the assumed quantity of ethanol used as a fuel. Using the PADD districts as a guide, the net flow of ethanol from the producing regions to the consuming regions was estimated. The total cost of the storage and distribution system, and modification of the service stations was estimated to be 2.26 to 2.94 billion dollars. Assuming an ethanol plant gate price of 17.68 cents per liter ($0.67 per gallon), the retail price of E85 was estimated to be 26 to 30 cents per liter ($0.97 to $1.13 per gallon) of E85. In gasoline equivalent units, the cost of E85 would be 36 to 42 cents per liter ($1.37 to $1.59 per gallon).