16-03-09 Magellan Midstream Partners said privately held ethanol maker Poet is joining a feasibility study behind a proposed $ 3.5 bn pipeline to gather ethanol from production facilities in Iowa, South Dakota, Minnesota, Illinois, Indiana and Ohio to serve terminals in major north-eastern markets.
Poet is the largest producer of ethanol in the world with more than 1.5 bn gallons of annual ethanol production from 26 ethanol production facilities in seven Midwestern states.

Ethanol poses a challenge for traditional pipelines because it absorbs water, which causes corrosion.
Solutions include adding chemicals to the fuel or building pipelines out of alternate materials.