Brazilian Ethanol Pipeline Wins Preliminary Approval

August 2010 Vol. 237 No. 8

The Brazilian Institute of the Environment and Renewable Natural Resources (IBAMA) has issued a preliminary license for implantation of the Ethanol Pipeline Distribution System planned by PMCC Projetos de Transporte de Alcool S.A, a partnership between Petrobras, Mitsui & Co.LTD and Camargo Correa S/A.

As proposed, the system will transport ethanol from the producing regions in the Midwest, Minas Gerais and Sao Paulo to the consuming centers of Sao Paulo and Rio de Janeiro. The estimated investment is US$1.1 billion.

The pipeline will be 542 km with capacity to transport up to 12.9 MMcm/a of ethanol and will be built using existing pipeline sections to minimize environmental impacts. It will connect Uberaba (Minas Gerais-MG) to Vale do Paraiba (Sao Paulo-SP), crossing through 33 cities, before connecting to existing pipelines in the states of Sao Paulo and Rio de Janeiro.

Two collection centers will also be built – one in Uberaba MG and another in Ribeirao Preto SP – to receive the ethanol from the production plants, mainly through road transportation. The companies’ plans foresee expansion of the network to the Senador Canedo Terminal (GO) and new pipelines connecting Paulinia to the Parana-Tiete Waterway and to the Sao Sebastiao maritime terminal. The goal is to start up the operation of the pipeline in the second half of 2011.

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