A significant problem with ethanol is that it corrodes current pipelines due to its solubility in water. This makes it difficult to transport the fuel long distances as this is a hurdle the industry desperately needs to overcome. Good news, though, is that 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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