Brazil's Logum Makes 1st Ethanol Export to U.S. Using Pipeline to Port
NEW YORK (Reuters) — Brazilian transportation company Logum Logistica said on Wednesday it carried out its first ethanol export deal to California using pipelines to move the biofuel from the producing region to the port.
Logum, a company that has been investing in pipelines to transport fuel in Brazil, said it moved 40 million liters of ethanol from a terminal in Ribeirao Preto, in the main sugar and ethanol belt, to the Ilha D'Agua port in Rio de Janeiro using a combination of short truck trips and its pipeline system for a total rout of 745 km (462.92 miles).
The firm said the transport of the ethanol by pipelines, beyond the smaller cost and economies of scale, prevented the use of more than 700 trucks, estimating the operation avoided 2,000 tons of carbon emissions.
Logum said the deal was possible because the California government gives a price premium to cane-based ethanol as well as for biofuel that is transported through lower-emissions infrastructure.
"The California program foresees a premium of up to $8 per 1,000 liters of ethanol," it said in a note.
Brazil and the United States are the two largest producers and consumers of ethanol. They trade between each other, with U.S. ethanol makers usually exporting to Brazil's Northeast region, while Brazilian mills ship the fuel to California using the environmental premiums.
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