Nebraska's ethanol annual production currently sits at 1.35 billion gallons and is expected to jump to 2.3 billion gallons by 2009. At best, Nebraska could use 100 million gallons a year. To ship it across state, representatives of Tulsa, Okla.-based Seminole Energy Services have approached Nebraska ethanol plants about a $150 million project that could move a billion gallons of ethanol a year from plants to a terminal between Grand Island and Hastings.
The hub would be able to store 30 million gallons of ethanol and accommodate three or four 95- to 125-car trains. Seminole officials say savings to Nebraska could be about 9 cents a gallon. If enough ethanol plants commit, the pipeline and terminal could be operational by 2010.