DISTRIBUTION
IsoStab
TM
portation infrastructure is challenged to keep pace with ethanol production capacity, leaving a transportation gap that is challenging the industry. Developing a rail-served ethanol distribution terminal is often a complex, costly and time-consuming undertaking. These attributes, combined with an industry that is buffeted by change in multiple arenas—from politics to perceptions to technology—tend to make potential investors wary of funding these projects. However, over the past several months, an increasing number of petroleum distribution companies, investors and developers appear to be willing to face these challenges, as the potential return-on-investment for properlyplanned projects can be very attractive.
Project Planning Perhaps the greatest challenge is that the distribution end points are typically located in dense, urban industrial centers where real estate is more expensive and the permitting environment is more complex than in the rural areas that host most ethanol production facilities. Therefore, developing a successful ethanol distribution infrastructure project requires under-
standing the needs of the host community and building appropriate mitigations into the initial development plans, as well as complying with federal, state and local permitting requirements. In addition to community and permitting coordination, the commercial issues require a significant amount of coordination. The commercial development of an ethanol distribution project typically includes several steps. First, one must determine the market need through coordination with petroleum companies that blend ethanol from the distribution terminal into their gasoline. Second, one must determine the “all-in” costs of transport and handling that will be required to receive and distribute product through a terminal. This requires coordination with transportation and distribution providers (terminal operators, railroads, pipeline distribution, trucking and barge companies) to estimate these costs. Once the market needs and the transportation and handling costs are estimated, there must be coordination with ethanol producers or traders as to who will supply ethanol to the terminal. With demand for ethanol showing a
ETHANOL PRODUCER MAGAZINE JUNE 2008
is composed of acids that appear naturally in hop plants Benefits:
Controls lactic and acetic acid formation Optimizes plant efficiency Active at a wide pH range, thermally stable
IsoStab™…a naturally derived acid to combat resistant bacteria during fermentation.
BetaTec Hop Products 5185 MacArthur Blvd. NW, Ste. 300 Washington, DC 20016-33441 202.777.4800 • Fax 202-777-4895 www.bthp.info