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Specialty Pipelines for Renewable and Alternative Energy Substances

The world is rushing to harness alternative and renewable energy sources, and global specialty pipeline infrastructure is jumping to keep up. SBI Energy estimates that the total global market for specialty pipelines will show year over year increases of 30% or more through 2015. This will result in a total global market of over $3 billion by 2015. Because their chemical composition and transmission requirements composition are different from conventional fossil fuels, renewable fuels can be corrosive or destructive to existing/conventional pipelines, fittings, seals, and other conventional pipeline-related infrastructure. Transport of renewable fuels such as biodiesel, ethanol, and biomethane along existing fossil fuel pipelines (diesel, jet fuel, gasoline, natural gas) is frequently impracticable due to concerns of contamination between renewable and petroleum fuel batches. Additionally, the distributed nature of production operations for many renewable fuels, and for biomethane in particular, promise to support the construction of substantial new pipeline infrastructure.

Similarly, enhanced oil recovery, carbon capture sequestration, and other emerging energy economies require pipeline transport of carbon dioxide, commonly under very high pressure. Like ethanol, carbon dioxide can be highly corrosive to conventional pipelines, resulting in increased leakage rates, high repair costs, and general pipeline deterioration. The need to upgrade existing pipelines or construct new specialty pipelines for these substances has led to the emergence of product markets for components and materials related to specialty pipelines.

Substances carried in specialty pipelines - carbon dioxide, ethanol, biodiesel, and biomethane/biogas - have found market growth due to high petroleum prices, the development of enhanced oil recovery methods using carbon dioxide injection, carbon capture and sequestration system development, the presence or potential for carbon emissions penalties in several world markets, industry and public interest in biofuels, and renewable fuels standards mandating increasing production and blending with petroleum fuels. These factors are driving a general shift in the energy economies of several world markets, towards technologies and fuels that mitigate greenhouse gas emissions and ensure greater energy security for countries with declining fossil fuel resources.

As these new energy economies gain traction, economies of scale continue to develop in support of renewable and other alternative energy products. Particularly in areas where alternative energy production or consumption is highly concentrated (for example, carbon dioxide enhanced oil recovery fields in Texas’s Permian Basin), pipelines are emerging as an efficient means of transport to reduce costs associated with truck, barge, or rail transportation. In anticipation of increased demand for pipeline transport of alternative fuels and carbon dioxide, pipeline producers and operators have already investigated or established construction and operations procedures for the transmission of carbon dioxide, ethanol, biodiesel, and biomethane.

The design of specialty pipelines is, for the most part, based on existing technologies and materials used in existing pipeline transmission operations, as well as the oil & gas, renewable fuels, and chemicals industries. Components of specialty pipelines not found as extensively in existing pipelines for natural gas, petroleum, and petroleum products include protective coatings, large-diameter resin and plastic pipes, specialty industrial pumps and compressors for corrosive substances such as ethanol and carbon dioxide, specialty valves, and technologies able to detect pipeline leaks. Due to the increased risk of corrosion or stress-related cracking of specialty pipelines that carry ethanol or carbon dioxide, specialty pipelines also represent a notable market for state-of-the-art technologies used for existing petroleum pipelines to detect leaks, minimize corrosive wear, pitting, lamination loss, or metal loss. The further development of commercial pipelines for next-generation energy sector substances will depend on ongoing product specialization and operational experience with specialty pipeline components.

Specialty Pipelines, Components, Materials and Global Markets contains comprehensive data on the worldwide market for specialty pipelines, their components, materials, and supporting technologies, including historic (2006-2010) and forecast (2011-2015) market size data in terms of the dollar value of product shipments. The report identifies key trends affecting the marketplace, along with trends driving growth, and central challenges to further market development. The report also profiles leading manufacturers and suppliers of specialty pipelines and that are most relevant to the specialty pipelines industry.

Report Methodology

The information in Specialty Pipelines, Components, Materials and Global Markets is based on data and information gleaned from interviews of government officials, industry insiders and professionals, as well as data available from the U.S. Department of Commerce, other U.S. executive agencies, the U.S. Census Bureau, U.S. national laboratories, U.S. and global energy research institutions, the European Commission, along with information from trade associations, business journals, company literature and websites, Securities and Exchange Commission reportings, and research services such as Simmons Market Research Bureau.

What You’ll Get in This Report

Specialty Pipelines, Components, Materials and Global Markets makes important predictions and recommendations regarding the near term future of this market. It pinpoints methods that current and prospective industry players can capitalize on existing trends, spearhead new trends, and identify and expand into niche and specialty markets. No other market research report provides both comprehensive analysis and extensive, quality data that Specialty Pipelines, Components, Materials and Global Markets offers. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.

How You’ll Benefit from This Report

If your company is already doing business in the specialty pipelines market, in associated manufacturing industries, or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. Pipeline operators, companies vested in the midstream industry, biofuels producers/refiners/suppliers, producers and marketers will also benefit from key insights into the supply chain, projects worldwide, and industry suppliers associated with specialty pipelines. The report provides an extensive review of markets for specialty pipelines, including their components, from 2006 as well as projects and trends through 2015.

This report will also help:

  • Marketing managers identify market opportunities and develop targeted promotion plans for specialty pipelines, components, materials, and services.
  • Research and development professionals stay on top of competitor initiatives and explore demand for specialty pipelines, specialty pipeline components, materials, and associated transmission services.
  • Advertising agencies working with clients in the midstream, utility, oil & gas, industrial equipment manufacturing, and chemicals industries to understand the market for specialty pipeline components and materials, their application, and the product procurement and project construction process; to develop messages and images that compel consumers to invest in companies supplying or operating specialty pipelines
  • Business development executives understand the dynamics of the market and identify possible partnerships.
  • Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.


Market Insights: A Selection From The Report


Ethanol

Brazil and the United States represent the two largest national producers of ethanol and the largest global consumption markets. Both countries have fostered major ethanol industries due to the abundance of agricultural ethanol crops (sugarcane and corn) and national regulation establishing significant markets for ethanol through transportation fuel blending. The market history of ethanol pipeline transportation is largely limited to Brazil where the Programa Nacional do Álcool (Proalcool) initiated by the Brazilian government in the 1970s provided support and amenable market conditions for the construction of dedicated ethanol pipelines. In the United States, the development of markets for ethanol pipeline transportation has been very recent.

Specialty Pipeline Projects

While multiple industry and market factors direct the development of the specialty renewable and alternative energy pipeline markets, the market volumes are ultimately determined by specialty pipeline construction and modification projects realized within the scope of this report (2006-2015). The following summaries for specialty pipeline projects worldwide provide greater detail regarding announced projects referenced elsewhere in this chapter and establish short-term market parameters and infrastructure development trends relevant to the projection of additional specialty pipeline projects through 2015. Projects are discussed below in terms of their preliminary siting, transportation capacity, development and construction schedule, associated investors and end users, obstacles to their completion, and role in regional renewable and alternative energy substance markets.

Eastern Shelf Pipeline

Kinder Morgan Energy Partners, L.P. purchased several units in the Katz oilfield within the Permian basin in 2006 and plans to begin CO2 injection to increase petroleum production by January 2011. With CO2-producing reservoirs and over 1,000 miles of CO2 transportation...

Project Development and Financing Trends

Pipeline projects require significant financing due to their high capital costs that include equipment procurement, engineering, construction, right-of-way (ROW) land purchases. Midstream companies fund pipeline infrastructure projects through internal capital, project equity shares, and debt financing. Government support and incentives are likely to play a major role in the development of specialty pipeline projects, as there are significantly higher technical and market risks associated with infrastructure projects for renewable fuel and alternative energy substance transportation. While overall financing conditions for the midstream industry are relevant to specialty pipeline project development, specialty pipeline projects remain subject to unique considerations including their risks and market feasibility.

Large energy companies such as investor-owned public utilities or comprehensive oil companies involved in the E&P, refining, transportation, and distribution of petroleum and natural gas benefit from large cash flows that can be reinvested or used to fund the completion of large infrastructure projects. With multination...

In the News
Specialty Pipelines for Transportation Arise as a Catalyst for Growth in the Alternative Fuel Market

New York, November 19, 2010 — The international renewable energy arms race remains alternately smoldering and stagnant as proposed projects and investments aimed at harnessing carbon dioxide, ethanol, biodiesel, and similar power sources languish due to transportation logistics. However, the emergence of specialty pipelines that deliver renewable and alternative energy substances from points of production to points of blending, storage, or end use, will be a catalyst for growth in the development of current and future alternative fuel projects, according to Specialty Pipelines for Renewable and Alternative Energy Substances by market research publisher SBI Energy.

Specialty pipelines are required for several renewable and alternative energy substances due to corrosivity, lack of compatibility with conventional fuels distribution systems, industry and regulatory requirements, and the distributed locations of various renewable and alternative energy substances. Currently, rail and tanker transportation are the predominant forms of long-distance delivery for certain renewable energy sources, such as ethanol and biodiesel. Nevertheless, specialty pipelines represent the most cost-effective mode of transportation for highly produced energy products and substances.

Through 2015, the market for specialty pipelines will expand due to several factors including the continued development of renewable and alternative energy substance production capacities, government and industry efforts to facilitate comprehensive transitioning of national energy economies, and emerging trends of growth in the demand for various energy substances. SBI Energy estimates that the total global market for specialty pipelines will show year over year increases of at least 30% through 2015. This will result in the global specialty pipelines market being valued at over $3 billion by 2015.

"Without adequate midstream transportation assets or infrastructure, otherwise marketable renewable and alternative energy substances are excluded from major energy markets and consumers,’ says Robert Eckard, SBI Energy analyst and author of the industry study. ’Investment in specialty pipelines is an emergent trend resulting from rising demand for renewable fuel and CO2 transportation and the inability of current logistics networks to meet projected regional and international demand for those substances. As stable short-term markets for renewable and alternative energy substances develop due to energy regulation and recovering fossil fuel prices, specialty pipelines will be integral to supplying major markets with bulk deliveries adequate to demand.’

Specialty Pipelines for Renewable and Alternative Energy Substances features comprehensive data on the worldwide market for specialty pipelines, their components, materials, and supporting technologies, including historic (2006-2010) and forecast (2011-2015) market size data in terms of the dollar value of product shipments. The report identifies key trends affecting the marketplace, along with trends driving growth, and central challenges to further market development. The report also profiles leading manufacturers and suppliers of specialty pipelines and those that are most relevant to the specialty pipelines industry. Renewable and alternative energy substances covered include carbon dioxide, ethanol, biodiesel, biomehane, and biogas.

About SBI Energy
SBI Energy, a division of MarketResearch.com, publishes research reports in the industrial, energy, building/construction, and automotive/transportation markets. SBI Energy also offers a full range of custom research services.

Additional Materials


Specialty Pipeline Transportation Holds Key to Alternative Fuel Market Growth

Why aren’t alternative fuels taking off more quickly? It’s a valid question given the large quantity of proposals for massive solar and wind turbine installations in the U.S and around the globe this year.  Meanwhile, we hear little news of new alternative fuels projects.  The answer, according to a new market study, Specialty Pipelines for Renewable and Alternative Energy Substances, lies in the transportation logistics.

Crude oil, finished fuels, and natural gas pipelines crisscross the United States and the globe. But in many cases, these existing pipelines are not suitable for the transport of sensitive biofuels. The chemical disposition of biofuels is substantially different from conventional fossil fuels.  For example, the corrosiveness and water solubility of ethanol makes it incompatible with most existing pipelines. 

Industry concerns also persist regarding the contamination of jet fuel, which has strict quality control, by residual biodiesel left in the pipeline. Current pipeline deliveries of biodiesel remain limited to B5 blends through pipelines that do not traffic jet fuel. 

An additional inhibiter to immediate alternative fuel success resides in the lack of existing pipelines in remote regions where Biomethane and biogas are produced. As a result, biofuels are largely transport by truck or rail, which drives up costs and limits how effectively biofuels can be brought to market.

In order to support current and future alternative fuels development, producers and investors are looking towards specialty pipelines for their distribution needs. As a result research publisher SBI Energy forecasts that the market for specialty pipelines is expected to increase nearly 4-fold between 2010 and 2015.

Substances carried in specialty pipelines - carbon dioxide, ethanol, biodiesel, and biomethane/biogas - have found market growth due to high petroleum prices, the development of enhanced oil recovery methods using carbon dioxide injection, carbon capture and sequestration system development, the presence or potential for carbon emissions penalties in several world markets.  The fastest growing segment, Ethanol, will expand significantly as construction proceeds on dedicated ethanol pipelines, creating a market in excess of $1,000 million by 2014. The projected 2011-2015 CAGR for this market is 27.2%.

  • Executive Summary
    • Scope
    • Renewable and Alternative Energy Substances and the Role of Specialty Pipelines
    • Specialty Pipelines Requirements and Components
    • Environmental Impact of New Specialty Pipelines
    • Market Assessment Methodology
    • Market Origins and History
    • Trends in Renewable and Alternative Energy Substances Production
    • Specialty Pipeline Project Viability and Operational Profitability
    • Specialty Pipeline Markets
      • Carbon Dioxide Transportation Pipelines Market
      • Ethanol Transportation Pipelines Market
      • Biodiesel Transportation Pipelines Market
      • Biogas and Biomethane Transportation Pipelines Market
    • Product Trends and Pricing
    • Industry Trends
    • Growing Regional Demand for Renewable and Alternative Energy Substances
    • Specialty Pipeline Components Supply Chain
    • Specialty Pipeline End Users
    • Summary
  • Specialty Renewable and Alternative Energy Pipelines
    • Scope
    • Pipeline Technology and Operation
    • Role of Specialty Pipelines
      • Greater Market Availability and Consumption of Renewable and Alternative Energy Substances
      • Higher Efficiency Transportation of Renewable and Alternative Energy Substances
    • Renewable and Alternative Energy Substances
      • Carbon Dioxide
      • Ethanol
      • Biogas/Biomethane
      • Biodiesel
    • Specialty Pipelines: Requirements, Systems and Methods
      • Resource Requirements
      • Components
      • Operational Requirements
    • Demand for Specialty Renewable and Alternative Energy Pipelines
    • Environmental Impact of New Specialty Pipelines
      • Development of Pipeline Tract Areas
      • Environmental Contamination through Pipeline Leaks
      • Pipeline Explosion Risks
      • Emissions
    • Summary
  • Specialty Renewable and Alternative Energy Pipelines - Market Size and Growth
    • Scope
    • Market Assessment Methodology
      • Project-Based Analysis
      • Analytical Factors for Market Size and Growth
    • Market Origins and History
      • Carbon Dioxide Enhanced Oil Recovery
      • Carbon Capture and Sequestration
      • Ethanol
      • Biodiesel
      • Biogas / Biomethane
    • Specialty Pipeline Projects
      • Eastern Shelf Pipeline
        • Table Eastern Shelf Pipeline
      • Green Pipeline
        • Table Green Pipeline
      • Snøhvit Pipeline
        • Table Snøhvit Pipeline
      • Central Florida Pipeline
        • Table Central Florida Pipeline
      • PMCC Pipeline
        • Table PMCC Pipeline
      • Plantation Pipeline
        • Table Plantation Pipeline
      • Huckabay Ridge Biogas Project
        • Table Huckabay Ridge Biogas Project
      • Brålanda Biogas Project
        • Table Brålanda Biogas Project
    • Factors Affecting Market Size and Growth
      • Greater Production of Renewable and Alternative Energy Substances
      • Spatial Distribution of Renewable and Alternative Energy Substance Production and Consumption
      • Specialty Pipeline Project Viability and Operational Profitability
    • Specialty Pipeline Markets
      • Market for Carbon Dioxide Transportation Pipelines
        • Table World Market Shares for CO2 Transportation Pipelines (United States, European Union, Asia)
      • Market for Ethanol Transportation Pipelines
        • Table World Market Shares for Ethanol Transportation Pipelines (United States, Brazil)
      • Market for Biodiesel Transportation Pipelines
        • Table World Market Shares for Biodiesel Transportation Pipelines (United States, European Union)
      • Market for Biogas and Biomethane Transportation Pipelines
        • Table World Market Shares for Biogas and Biomethane Transportation Pipelines (United States, European Union, Asia)
      • Market for Specialty Pipeline Lengths
        • Table World Market Shares for Steel Pipeline Lengths (United States, European Union, Brazil, Asia)
        • Table World Market Shares for Polymer Pipeline Lengths (United States, European Union, Brazil, Asia)
      • Market for Specialty Pipeline Pumps and Compressors
        • Table World Market Shares for Specialty Pipeline Pumps (United States, European Union, Brazil, Asia)
        • Table World Market Shares for Specialty Pipeline Compressors (United States, European Union, Brazil, Asia)
      • Market for Specialty Pipeline Flow Control, Leak Detection, and Management Systems and Technologies
        • Table World Market Shares for Flow Control Equipment (United States, European Union, Brazil, Asia)
        • Table World Market Shares for Inline Pipeline Management and Leak Detection Systems (United States, European Union, Brazil, Asia)
    • Summary
  • Specialty Renewable and Alternative Energy Pipelines - Market and Product Trends
    • Scope
    • Product Trends and Pricing
      • Specialty Pipeline Materials
      • Specialty Pipeline Coatings
      • Specialty Pipeline Compressors and Pumps
      • Flow Control, Pipeline Management, and Leak Detection Systems
    • Industry Trends
      • Midstream Industry Growth and Consolidation, 2001-2008
      • Financial Crisis and Global Economic Turndown, 2008-2009
      • Developments Leading towards Specialty Renewable and Alternative Energy Substance Pipelines
    • Project Development and Financing Trends
    • Cost and Pricing Trends for Renewable and Alternative Energy Substances
      • Carbon Dioxide
      • Ethanol
      • Biodiesel
      • Biomethane
    • Growing Regional Demand for Renewable and Alternative Energy Substances
      • Carbon Dioxide - United States
      • Carbon Dioxide - European Union 104
      • Carbon Dioxide - Brazil
      • Carbon Dioxide - Asia
      • Ethanol - United States
        • Table EISA Renewable Fuel Volume Requirements, 2010 (billion gallons)
      • Ethanol - Brazil
      • Biodiesel - United States
      • Biodiesel - European Union
      • Biomethane - United States
      • Biomethane - European Union
    • Summary
  • Specialty Pipelines and Components: Distribution and Promotion
    • Scope
    • Specialty Pipeline Components Supply Chain
    • Renewable and Alternative Energy Substance Supply Chain
    • Specialty Pipelines Project Promotion
    • Summary
  • Competitive Profiles
    • Scope
      • Methodology and Selection of Profiles
    • 3M
      • Table 3M
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Outlook
      • Personnel Changes
    • Ameron
      • Table Ameron
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Outlook
      • Personnel Changes
    • Ashland
      • Table Ashland
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Outlook
      • Personnel Changes
    • Boreal Laser
      • Table Boreal Laser
      • Corporate Background
      • Product Portfolio
      • Performance
    • Flowserve
      • Table Flowserve
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Outlook
      • Personnel Changes
    • GE Oil & Gas
      • Table GE Oil & Gas
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Innovation
      • Outlook
    • International Protective Coatings
      • Table International Protective Coatings
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Innovation
      • Outlook
      • Personnel Changes
    • Siemens
      • Table Siemens
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Innovation
      • Outlook
    • Sulzer Pumps
      • Table Sulzer Pumps
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Personnel Changes
    • Tyco Flow Control
      • Table Tyco Flow Control
      • Corporate Background
      • Product Portfolio
      • Performance
      • Company News
      • Outlook
      • Personnel Changes
    • Pipeline Operator Profiles
    • Kinder Morgan
      • Table Kinder Morgan
      • Corporate Background
      • Business Activities
      • Performance
      • Company News
      • Specialty Renewable and Alternative Energy Pipeline Projects
    • Petrobras
      • Table Petrobras
      • Corporate Background
      • Business Activities
      • Performance
      • Company News
      • Specialty Renewable and Alternative Energy Pipeline Projects
    • Uniduto Logística
      • Table Uniduto Logística
      • Corporate Background
      • Business Activities
      • Company News
  • End Users
    • Scope
    • Specialty Pipeline End Users
      • Carbon Dioxide
      • Ethanol
      • Biodiesel
      • Biogas/Biomethane
    • Summary

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