Ethanol and biodiesel can’t be transported through pipelines that carry gasoline and diesel because they leach water and other contaminants that would render them unusable.
Ethanol and biodiesel also have energy contents that are lower than conventional gasoline and diesel.
Possible alternative biofuels
Biobutanol: alcool-derived fuel, which has less of a corrosive effect on pipelines than ethanol.
Renewable diesel: diesel-fuel equivalent derived from animal fats and hydrocarbons. Can be transported by pipeline but emissions seen as higher than those for biodiesel.
Source: WSJ, 01/11/07