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Designing the Biggest Ethanol Pipeline in the World

CHALLENGES

● Poor logistical infrastructure and uncertainties on execution capability 

● Development of supply centers in remote areas, far from demand centers 

● Transportation to country’s main ports for exportation and cabotage 

● Stakeholders sceptical about the economics of the ethanol pipeline

ACTIONS TAKEN

● Developed logistics model to analyse economic and financial scenarios of alternatives to existing infrastructure 

● Modelled political and execution uncertainties as scenarios to stress test the cases 

● Run sensitivity analysis to support decision-making in comparison with other modes of transportation

RESULTS

● Project defined pipeline volume and route that optimizes economics reducing in 10% to 15% the cost of ethanol distribution in the country 

● Optimisation adds USD 1.0 to USD 1.5 Bln NPV value to the ethanol industry above the base case

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