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Ethanol can be made from non-food feedstock such as switchgrass or algae, which have high yields and do not exacerbate food scarcity.
Another thing, which is one of the main problems with Ethanol is it's corrosive due to solubility in water. Magellan Midstream Partners - a company that pipes gasoline - is planning on constructing a $3 billion ethanol pipeline. "The line would bring ethanol from production facilities in Iowa, Illinois, Minnesota and South Dakota to terminals in Pittsburgh, Philadelphia and the New York harbor."
If done, this would greatly benefit the net energy of ethanol as the current use of trucks and trains for transportation are inefficient - both economically and environmentally.
Coincidentally, Brazil's Petrobras today announced that it plans on building the world's first ethanol-only pipeline. Petrobras says the "pipeline will carry ethanol that is mainly destined for exports to countries such as Japan."
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