Ethanol production pipeline to improve infrastructure in Brazil?
Date added: 7th March, 2011 at 08:28
(view all articles from March, 2011)
Categories: Natural Resources
A R$6 billion (£2.2 billion) investment in Brazil to build a pipeline system for use by ethanol production companies will see a reduction in the amount of damage caused to the country's roads.
This is according to Alberto Guimaraes, president of Logum, which is building the structure, who told Reuters the plan will cut the cost of transporting the fuel.
"It will provide additional benefits of less pollution and less wear and tear on roads from so many trucks," he said.
The news provider reported that the expense of transporting ethanol will fall by 20 per cent when the pipeline is complete, with Mr Guimaraes adding that this could rise to 50 per cent in the next decade if the production of the fuel moves to areas at a greater distance from its end destination as expected.
Logum is a newly formed logistics company launched by Odebrecht Transport Participacoes, Petrobras and Cosan among others.
The pipeline is scheduled to begin operation in 2012 and will have the capability to handle as much as 21 million cubic metres of ethanol per year.
Royal Dutch Shell and Cosan recently ploughed $12 billion (£7.4 billion) into increasing their ethanol production output.
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