Ethanol Logistics: Evaluating the Feasibility of Pipelines from Brazil’s Middle-West Region

Abstract

This paper presents an optimization model to evaluate the feasibility of adopting pipelines for the distribution of ethanol in Brazil. Firstly, there has been the analysis of the captured volumes in existing pipelines; then, the analys is of the volumes in places with no pipeline network yet. Based on real data, different scenarios have been considered aiming to determine the optimal configuration, in terms of captured volumes, from each region served by the pipeline system. The proposed model has been solved using AIMMS 3.4, mathematical modeling software. Results have indicated that ethanol pipelines are economically feasible whenever linking mid-western producers to facilities located in Sao Paulo state. On the other hand, there has been little or no feasibility whenever connecting Minas Gerais to Goias state.