Ethanol passes key transportation test

Kinder Morgan reports successfully routing fuel through gasoline pipeline
By BRETT CLANTON Copyright 2008 Houston Chronicle
Oct. 15, 2008, 10:26PM

Houston pipeline operator Kinder Morgan Energy Partners signaled progress Wednesday in addressing a key hurdle to widespread distribution of renewable fuels in the U.S.

The company said it completed a test in Florida that moved ethanol safely through an existing gasoline pipeline and is performing similar tests with biodiesel fuel blends.

The tests could be important for a U.S. biofuels industry that now transports fuel only by truck, rail car and barge, and will require more efficient transportation options as it grows.

Kinder Morgan and other pipeline companies are still in the early stages of testing. Huge investments will be needed if the companies decide to ready more assets to handle biofuels, and upgrades could take years.

Yet Kinder Morgan's moves suggest a willingness to explore the idea further.

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