Plans to build an 1,800 mile ethanol pipeline that would go through southeast South Dakota and northwest Iowa are being put on hold because of the lack of prospect for a federal loan guarantee.
Sioux Falls-based Poet and Magellan Midstream Partners LP had been studying the feasibility of a $3.5 billion pipeline that would send ethanol from plants in Iowa, South Dakota, Minnesota, Illinois, Indiana and Ohio to distribution terminals in the northeastern U.S.
Magellan announced it was placing its interest in the project on hold early last year.
Poet CEO Jeff Broin says he believes the pipeline is a viable project with tremendous benefits for the country, but the ethanol company will focus on other efforts.
Broin also says that the existing infrastructure for transporting ethanol serves the industry well.
During the planning stages, O'Brien County, Iowa was one of three sites being considered as the starting point for the pipeline. The others were Fort Dodge and Mason City.