Monday, February 5

Can Ethanol Get A Ticket To Ride?

As Its Popularity Increases, Railroads, Producers Strain To Get the Biofuel to Market.
By ILAN BRAT and DANIEL MACHALABAFebruary 1, 2007; Page B1

Like the corn it's made from, ethanol is largely a product of the small-town Midwest, distilled in places like Nevada, Iowa, and shipped to market by train.

Now, as ethanol producers ramp up production, they are straining railroads already taxed by burgeoning shipments of coal, containers and grain. And they worry that the transportation crunch could make it difficult for ethanol, despite its surge of support in Washington, to compete with energy rivals.

Rail and transportation logistics for the ethanol industry is "the mountain to climb...as we go forward," says Ken Eriksen, a senior vice president of Informa Economics Inc., an agricultural and renewable fuels consulting firm in Memphis, Tenn.
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