KTIV NewsChannel 4 Sioux City IA: News, Weather and SportsO'Brien County, IA among finalists for hub of ethanol pipeline

O'Brien County, IA among finalists for hub of ethanol pipeline

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PRIMGHAR, IA (KTIV) -  Northwest Iowa could be the starting point for a multi-billion dollar pipeline that would transport ethanol to the East Coast.  O'Brien County is one of three areas project executives are seriously considering.

"We have designed three spots in northwest and central Iowa that would be gathering stations," said Bruce Heine, with Magellan.

The other two are Fort Dodge and Mason City. It's not official yet, but if the project moves forward, the pipeline would have multiple points where ethanol plants would have direct connections to it.

"From an ethanol aspect, it gives the opportunity for multiple shippers to come together on a pipeline and transport the product more efficiently." said Bob Berens with POET.

Berens says it'll be able transport 250,000 barrels of ethanol a day more efficiently, and in an environmentally friendly way.

"We see that as a huge opportunity," said Berens.

The project still has road blocks ahead. One of them is getting the federal funds needed. The Department of Energy offers a loan guarantee program that could help, someday.

"Which we believe needs to be modified in a way that would allow a large scale pipeline to qualify for the program," said Heine.

That's in the form of a legislative bill. Both U.S. Senator Tom Harkin and Congressman Leonard Boswell have introduced bills to broaden the loan guarantee program. If passed, it'll help the pipeline project move forward.

"Reaching out to congress and working on financial financing is an absolute for us right now," said Heine.

The Economic Development Director for O'Brien County says they'd love to see those type of jobs.

Officials also believe it would be a huge boost to area ethanol plants.

"Northwest Iowa is a prime location for that because of the ethanol producers and so absolutely this would give them an increase in sales," said Kiana Johnson Executive Director of O'Brien County Economic Development.

No word yet on how many jobs would be created locally, if the project goes through.