Handle with care
16th January, 2008
Throughput of ethanol is generally high in those terminals that handle the product, so long term storage is not a serious issue. But demand for storage is growing and terminals and tank farms have to be adapted accordingly. The US Renewable Fuels Association estimates there are 115 bioethanol plants in the US, with 79 ethanol biorefineries under construction and a further seven being expanded.
European bioethanol production reached 1.5 million tonnes in 2006, and is estimated to grow to 8-10 million tonnes by 2010. The biggest EU bioethanol producer is Germany, with annual production of 450,000 tonnes in 2006, followed by Spain with 420,000 tonnes, which could reach 800,000 tonnes in 2008.
France is increasing bioethanol production from 200,000 tonnes in 2006 to about 800,000 tonnes in 2008.
In Europe, bioethanol is normally used as a blend with petrol in any proportion up to 5%. Modified flexi-fuel vehicles can run on E85 as well as on pure bioethanol. Terminals often handle ethanol in dedicated tanks or install new tanks to handle anticipated deliveries. Most European terminals offer storage in the range of 500m3 to 15,000m3.
Growing demand
Terminal facilities are growing in line with the new EU Biofuels Directive which proposes a binding target of 20% share of biofuels with petrol by 2020.
Blending of ETBE in petrol is underway in Spain, France and Germany; with direct ethanol blending in Sweden and the UK. To meet the EU 2003 Directives for 5.75% share of biofuels in diesel and petrol by 2010, both ETBE production and ethanol blending is necessary. Significant volumes of bioethanol are also likely to be imported from Brazil and other locations, as the EU will not be able to be selfsupportive of bioethanol demand.
Kinder Morgan owns and operates over 150 terminals in the US, of which about 60 handle ethanol, with discretionary blending across various states. About 4.5 billion gallons of ethanol required blending in 2007, while domestic ethanol production is about 7 billion gallons. ‘There is huge talk about discretionary blending and a drop in ethanol prices,’ says John Mahon, director of Renewable Fuels at Kinder Morgan.
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