# Presentation: 680237

## Storage and Distribution Requirements

**Storage and Distribution Requirements**
**for an**
**Expanded Ethanol Industry**
**presented at**
**EIA**
**NEMS/Annual Energy Outlook Conference**
**Arlington, Virginia**
**March 12, 2002**

## Slide 2

## Slide 3

## Slide 3  New Ethanol Volume Used In E-10/E-5.7 By PADD (bgy)

_**PADD**__**	**__**Existing**__**	**__**New Case B1 Volume**__**	**__**New Case C Volume**__**	**__**Total**_
- I	0.098	1.102		1.200	2.400
- II	0.928	1.072		1.300	3.300
- III	0.074	0.626		1.100	1.800
- IV	0.058	0.042		0.300	.400
- V†	0.655†	0.145		0.600	1.400
- Totals†	1.813†	2.987		4.500	9.300
*†  **Includes 0.6 bgy used in California that is projected to be in place by the end of 2002.*

**Slide 3 New Ethanol Volume Used In E10-E5.7 By PADD (bgy)**

## Slide 5

## Slide 6

## Slide 6 Estimated Requirement for New Tanks

**Tanks/Capacity (mbbl)**

_**PADD**__**	**__**Case B1**__**	**__**Case C**__**	**__**Total**_
- I	45 / 660	87 / 1,137	132 / 1,797
- II	74 / 326	88 / 670	162 / 996
- III	47 / 388	76 / 590	123 / 978
- IV	5 / 50	14 / 80	19 / 130
- V	10 / 155	33 / 359	43 / 514
- Totals	181 / 1,579	298 / 2,836	479 / 4,415

## PADD	Case B1	Case C	Total

- I	18 / 235	7 / 65	25 / 300
- II	27 / 86	19 / 120	46 / 206
- III	15 / 115	7 / 45	22 / 160
- IV	1 / 10	6 / 35	7 / 45
- V	2 / 25	5 / 30	7 / 55
- Totals	63 / 471	44 / 295	107 / 766

**Slide 7 Estimated Requirement for Tank Conversions**
**Tanks/Capacity (mbbl)**

## Slide 8  Estimated Number of Terminals

**Slide 8  Estimated Number of Terminals**
**Requiring Blending Equipment by PADD**

## Slide 9  Estimated Number of Terminals Requiring Rail Spur Installation by PADD

**Slide 9  Estimated Number of Terminals Requiring Rail Spur Installation by PADD**

## Slide 10  Retail Outlet Profile

**Slide 10  Retail Outlet Profile**

## Slide 11  Terminal & Retail Level Expenses for E10/E5.7 by PADD

**Slide 11  Terminal & Retail Level Expenses for E10/E5.7 by PADD**

## 	New ethanol	Cost of	Cost of Tank 	Cost of	Modification for	Contingency	Retail	Total	Amortized

- 	New ethanol	Cost of	Cost of Tank 	Cost of	Modification for	Contingency	Retail	Total	Amortized
- 	Volume	New Tanks	Conversion	Blending Systems	Rail Receipt		Conversions		Cost per
- 	(bgy)								Gallon
**PADD I**
- Case B1	1.102	$8,850,000	$645,000	$24,300,000	$7,100,000	$1,260,000	$6,501,800	$48,656,800	$0.0069
- Case C	1.200	$15,115,000	$180,000	$30,300,000	$710,000	$1,880,000	$7,080,000	$55,265,000	$0.0072
- I Total	2.302	$23,965,000	$825,000	$54,600,000	$7,810,000	$3,140,000	$13,581,800	$103,921,800	$0.0070
**PADD II**
- Case B1	1.072	$5,395,000	$309,000	$33,000,000	$5,325,000	$2,020,000	$7,440,490	$53,489,490	$0.0078
- Case C	1.300	$9,950,000	$375,000	$35,700,000	$3,550,000	$2,140,000	$12,077,890	$63,792,890	$0.0077
- II Total	2.372	$15,345,000	$684,000	$68,700,000	$8,875,000	$4,160,000	$19,518,380	$117,282,380	$0.0077
**PADD III**
- Case B1	0.626	$5,735,000	$340,000	$22,200,000	$3,550,000	$1,240,000	$5,275,780	$38,340,780	$0.0096
- Case C	1.100	$8,600,000	$125,000	$27,300,000	$3,550,000	$1,660,000	$11,800,000	$53,035,000	$0.0075
- III Total	1.726	$14,335,000	$465,000	$49,500,000	$7,100,000	$2,900,000	$17,075,780	$91,375,780	$0.0083
**PADD IV**
- Case B1	0.042	$750,000	$20,000	$2,400,000	$1,065,000	$120,000	$309,750	$4,664,750	$0.0173
- Case C	0.300	$1,250,000	$110,000	$7,800,000	$710,000	$400,000	$2,212,500	$12,482,500	$0.0065IV Total	0.342	$2,000,000	$130,000	$10,200,000	$1,775,000	$520,000	$2,522,250	$17,147,250	$0.0078
**PADD V**
- Case B1	0.145	$2,325,000	$55,000	$4,200,000	$355,000	$240,000	$1,248,440	$8,423,440	$0.0091
- Case C	0.600	$5,130,000	$90,000	$12,600,000	$1,065,000	$760,000	$3,131,720	$22,776,720	$0.0059
- V Total	0.745	$7,455,000	$145,000	$16,800,000	$1,420,000	$1,000,000	$4,380,160	$31,200,160	$0.0065
**TOTAL B1**	2.987	$23,055,000	$1,369,000	$86,100,000	$17,395,000	$4,880,000	$20,776,260	$153,575,260	$0.0080
**TOTAL C**	4.500	$40,045,000	$880,000	$113,700,000	$9,585,000	$6,840,000	$36,302,110	$207,352,110	$0.0072
**TOTAL B1+C**	7.487	$63,100,000	$2,249,000	$199,800,000	$26,980,000	$11,720,000	$57,078,370	$360,927,370	$0.0075

**Slide 12   Case B1 + Case C - Total Estimated Capital Investment for Terminal Improvements **
**& Retail Conversions for E-10/E-5.7**

## Slide 13  Amortized Cost Per Gallon For Terminal & Retail Unit

**Slide 13  Amortized Cost Per Gallon For Terminal & Retail Unit**
**Expenses for R10/E5.7 By PADD**

## Slide 14  Study Case B1 Average Freight Costs by PADD

**Slide 14  Study Case B1 Average Freight Costs by PADD**

## Slide 15  Study Case C Average Freight Costs By PADD

**Slide 15  Study Case C Average Freight Costs By PADD**

**Slide 16A Key Observations**

**Slide 16B Key Observations**

**Slide 17 Recommendations**

## “Infrastructure Requirements for an Expanded Ethanol Industry”

**“****Infrastructure Requirements for an Expanded Ethanol Industry”**
**www.afdc.doe.gov/pdfs/6235.pdf**