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Frictional losses would be a possible issue noting that it's already an issue, albeit not a massive one, with water.Sounds clever, the only thing that springs to mind, how much extra energy does it take to pump it back up the hill? If it is much more dense.
Anything potentially growing in it would be another possible concern. For a present example, biofouling, which in layman's terms is algae clinging to the concrete, is quite a problem with the Tarraleah canals (Tas).
Cleaning is done but it's quite a task scrubbing a canal.