No but it does break down, open air or in your tank. Over time the ethanol breaks down and separates and that’s when you start getting water building up in your tank. It will pull in moisture from the air and make water. Which is why they can’t transfer in a pipeline.
That was a concern utilizing older pipelines that likely had water separate out the petroleum mix and accumulate in low points. Proper maintenance (sweeping with scrapper pigs, etc) has minimized that concern.
New pipelines dedicated to ethanol from the start don’t have that issue.
Kinder Morgan completes ethanol pipeline between New Jersey and New York
http://www.biofuelsdigest.com/bdigest/2012/04/04/kinder-morgan-completes-ethanol-pipeline-between-new-jersey-and-new-york/
April 4, 2012
An Ethanol Pipeline Begins Service
http://green.blogs.nytimes.com/2008/12/10/an-ethanol-pipeline-begins-service/
December 10, 2008
Coincidentally, we almost lost our Yukon to the stuff recently.
We’ve been using the Taurus to save gas for months and the Yuke had lots of “mystery water” in the tank which froze up and caused all kinds of trouble.
It’s better, now but this explains where all that water came from.