Potential Ethanol pipeline to create U.S. jobs
Report estimates 80,000 jobs possible by POET/Magellan partnership
A proposed ethanol pipeline would be an economic boost for the U.S., a new report demonstrates, creating almost 80,000 direct, indirect and induced jobs across the country.
POET and Magellan Midstream Partners, L.P. have formed a joint venture to assess the feasibility of a 1,800-mile ethanol pipeline from ethanol production facilities in the Midwest, starting at Davison County, S.D., to distribution outlets in the northeast U.S., ending in Linden, N.J. Once the feasibility study is complete, the pipeline would be operational as early as 2014.
A recent report from the consulting firm LECG shows that the majority of the jobs created will be in the construction and transportation industries. More than 50,000 jobs will come from construction alone.
The pipeline project would provide approximately 1,100 permanent jobs after construction is complete.
“This project has the clear environmental benefit of dramatically reducing carbon emissions from traditional ethanol transportation, and this latest report shows its important impact on our economy as well,” POET CEO Jeff Broin said. “Ethanol continues to play a large role in the new energy economy taking shape here in the United States.”
“Pipelines are the most cost efficient, safest and most reliable mode of transportation for liquid energy. Construction of a large-scale renewable fuel pipeline complements the national objective of creating quality jobs while increasing transportation efficiencies for the growing renewable fuels industry,” Magellan COO Mike Mears said.
A loan guarantee with the U.S. Department of Energy is necessary for this project to become a reality. Congress is considering amendments to DOE’s loan guarantee program to include large-scale renewable fuel pipeline projects.
Besides job creation, the report outlines other economic benefits of the project including:
- $6.6 billion in U.S. economic growth
- $3.7 billion in household income
- $0.7 billion in federal tax revenues
- $0.6 billion in state and local tax revenues
The LECG report is attached.
About POET and Magellan
POET, the largest ethanol producer in the world, is a leader in biorefining through its efficient, vertically integrated approach to production. The 20-year-old company produces more than 1.54 billion gallons of ethanol annually from 26 production facilities nationwide. POET recently started up a pilot-scale cellulosic ethanol plant, which uses corn cobs as feedstock, and will commercialize the process in Emmetsburg, Iowa. For more information, visit http://www.poet.com.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets. The partnership primarily transports, stores and distributes refined petroleum products in twenty-two states. Magellan owns and operates the nation’s longest refined products pipeline system is connected to over 40% of the refining capacity in the United States. More information is available at http://www.magellanlp.com.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.