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I'm not sure what you mean by large scale mixing facility, but gasoline generally gets to the local and regional distribution facilities by pipeline and ethanol is added there. AFAIK, ethanol whether it's E10, E85, or E100 can't travel by pipeline. The various blends required by EPA also vary by region. Many parts of the Midwest have had E10 for quite a while so the farm, plant, and distribution networks are already established. I suspect the bigger problem is how to serve the west coast and other areas of the country that don't grow corn in abundance. Part of the answer may be in using something that can be grown regionally, but in the mean time there needs to be a fairly large scale distribution network for those parts of the country. Small ethanol plants are popping up like wildflowers as venture capitalists see a great investment opportunity, but in terms of volume, ADM is by far the dominant player and also has the resources and political clout to build large scale plants and a distribution network. Ethanol may run into some of the same problems as MBTE. Wisconsin has already or is the process of outlawing E10 outside of the Milwaukee air quality region due to concerns about what it will do to the states many fresh water lakes. It was also causing major problems in boats with molded-in fiberglass gas tanks and that may become an issue in other states with large numbers of registered boats.
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