Kinder Morgan Starts Ethanol Pipeline (KMP)

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By Douglas A. McIntyre Updated Published

Oil_gas_pipeline_picUntil today, every drop of ethanol used in transportation fuel has been moved by trucks or train cars. This added to the cost of getting ethanol to market and to the amount of total carbon emitted in the production and use of ethanol. No longer.  Kinder Morgan (NYSE:KMP) today announced the start-up of its 16-inchethanol product pipeline on its Central Florida Pipeline between Tampaand Orlando.

The company said it spent $10 million to modify the linein order to make it suitable for transporting ethanol, which, due toits water content, could not be shipped on existing pipelines. KinderMorgan expects to spend another $90 million on modifications toexisting racks, tanks, and infrastructure to transport more ethanol.

This pipeline is the first of its kind in the US, and maybe in theworld. The only other project we’ve heard about is an ethanol pipelinein Brazil. The big question now is whether there will be any ethanol tostuff into the pipelines. Ethanol makers in the US are struggling, andit’s not certain that all the 175 or so US ethanol plants will beoperating a year from now.

Paul Ausick
December 2, 2008

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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