Magellan and Poet $4 billion deal in the pipeline
In order to transport ethanol from the Midwest to the East Coast of the US, Magellan Midstream Partners and Poet are joining together in a venture to build a 1,800-mile pipeline.
The pipeline, which will take four years to build and cost $4 billion (€2.8 billion), will begin at ethanol production facilities in the Midwest and carry the ethanol all the way to New Jersey, depending on a loan from the DoE.
Bruce Heine, director of government and media affairs for Magellan says, ‘When we get the loan guarantee, we expect land acquisition and other steps to take about two years, and then the construction about two more years’.
According to the two energy companies, the project will create over 50,000 construction jobs and 1,100 jobs when it has been completed.
‘This project has the clear environmental benefit of dramatically reducing carbon emissions from traditional ethanol transportation’, said Jeff Broin, Chief Executive Officer of Poet.
The pipeline, which will take four years to build and cost $4 billion (€2.8 billion), will begin at ethanol production facilities in the Midwest and carry the ethanol all the way to New Jersey, depending on a loan from the DoE.
Bruce Heine, director of government and media affairs for Magellan says, ‘When we get the loan guarantee, we expect land acquisition and other steps to take about two years, and then the construction about two more years’.
According to the two energy companies, the project will create over 50,000 construction jobs and 1,100 jobs when it has been completed.
‘This project has the clear environmental benefit of dramatically reducing carbon emissions from traditional ethanol transportation’, said Jeff Broin, Chief Executive Officer of Poet.
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