So does anyone want to comment on how likely this is to be technically feasible? I figure that transportation of the fuel is one of the biggest stumbling blocks for ethanol, an efficient transportation system could go along ways towards making ethanol more competitive. Wouldn't solve all of the problems with ethanol of course, but step in the right direction maybe.

You just need appropriate material for the pipes. The big 'problem' with ethanol is that it's not compatible with existing infrastructure, not that pipeline infrastructure is impossible, just have to build new dedicated ones for it. Butanol doesn't absorb water as much as ethanol, and therefore is not corrosive to traditional pipeline infrastructure when blended with gasoline, but can be made from the same feedstocks.

Thanks!