
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