Designing the Biggest Ethanol Pipeline in the World
  Challenges faced
  Actions taken
  Benefits achieved
• 
Poor logistical infrastructure and
uncertainties on execution capability
• 
• 
• 
Development of supply centers in
remote areas, far from demand
centers
Developed logistics model to analyze
economic and financial scenarios of
alternatives to existing infrastructure
• 
Modeled political and execution
uncertainties as scenarios to stress
test the cases
Project defined pipeline volume and
route that optimizes economics
reducing in 10% to 15% the cost of
ethanol distribution in the country
• 
Optimization adds USD 1.0 to USD
1.5 Bln NPV value to the ethanol
industry above the base case
• 
• 
Transportation to country’s main
ports for exportation and cabotage
Stakeholders sceptical about the
economics of the ethanol pipeline
• 
Run sensitivity analysis to support
decision-making in comparison with
other modes of transportation
GO
GO 1
2014
Optimal route
GO 3
GO 2
MS
TRIANGULO MINEIRO R EGION
SAO JOSE DO R IO PRETO R EGION
MG 1
MG
SP 1
SP
2012
RIO DE J ANEIRO
CAMPINAS
PR
RJ
2011
SAO PAULO
RJ PORT
2015
SP PORT
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LONDON
UK
MOSCOW
RUSSIA
NAIROBI
KENYA
PERTH
AUSTRALIA
RIO DE JANEIRO
BRAZIL
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Designing the Biggest Ethanol Pipeline in the World