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US first ethanol pipeline to open

18th April, 2008

An agreement between US-based ethanol producer Poet and the City of Sioux Falls, South Dakota, will allow methane generated from the Sioux Falls Regional Sanitary Landfill to provide energy for Poet's Chancellor plant.

The methane will replace a portion of the natural gas at Poet Biorefining - Chancellor.

Under the agreement the methane will initially displace 10% of the plant's natural gas usage, increasing to 30% in 2025 as additional methane is generated. The methane will be transported by a 10 mile low-pressure pipeline. Poet expects construction to be completed in the second quarter of 2009.

Poet Biorefining - Chancellor started producing ethanol in mid-March at its expanded capacity of 100 million gallons a year. The $100 million (€63 million) construction project started 12 months ago and doubled the plant's production capacity. With the expansion completed, the annual production capacity of Poet's 22 ethanol plants is 1.25 billion gallons a year.