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Optimal Biorefinery Locations and Transportation Network for the Future Biofuels Industry in Illinois

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  • Tursun, Umit Deniz
  • Kang, Seungmo
  • Onal, Hayri
  • Ouyang, Yanfeng
  • Scheffran, Jurgen

Abstract

This article addresses development of the Illinois ethanol industry through the period 2007-2022, responding to the ethanol production mandates of the Renewable Fuel Standard by the U.S. Environmental Protection Agency. The planning for corn-based and cellulosic ethanol production requires integrated decisions on transportation, plant location, and capacity. The objective is to minimize the total system costs for transportation and processing of biomass, transportation of ethanol from refineries to the blending terminals and demand destinations, capital investment in refineries, and by-product credits. A multi-year transshipment and facility location model is presented to determine the optimal size and time to build each plant in the system, the amount of raw material processed by individual plants, and the distribution of bioenergy crops and ethanol.

Suggested Citation

  • Tursun, Umit Deniz & Kang, Seungmo & Onal, Hayri & Ouyang, Yanfeng & Scheffran, Jurgen, 2008. "Optimal Biorefinery Locations and Transportation Network for the Future Biofuels Industry in Illinois," Environmental and Rural Development Impacts Conference, October 15-16, 2008, St. Louis, Missouri 53502, Farm Foundation, Transition to a Bio Economy Conferences.
    • Handle: RePEc:ags:fftren:53502
    DOI: 10.22004/ag.econ.53502
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    Cited by:

    1. Bai, Yun & Hwang, Taesung & Kang, Seungmo & Ouyang, Yanfeng, 2011. "Biofuel refinery location and supply chain planning under traffic congestion," Transportation Research Part B: Methodological, Elsevier, vol. 45(1), pages 162-175, January.
    2. De Meyer, Annelies & Cattrysse, Dirk & Van Orshoven, Jos, 2016. "Considering biomass growth and regeneration in the optimisation of biomass supply chains," Renewable Energy, Elsevier, vol. 87(P2), pages 990-1002.
    3. Zhang, Fengli & Johnson, Dana M. & Wang, Jinjiang, 2016. "Integrating multimodal transport into forest-delivered biofuel supply chain design," Renewable Energy, Elsevier, vol. 93(C), pages 58-67.
    4. De Meyer, Annelies & Cattrysse, Dirk & Rasinmäki, Jussi & Van Orshoven, Jos, 2014. "Methods to optimise the design and management of biomass-for-bioenergy supply chains: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 657-670.
    5. Mansoornejad, Behrang & Pistikopoulos, Efstratios N. & Stuart, Paul R., 2013. "Scenario-based strategic supply chain design and analysis for the forest biorefinery using an operational supply chain model," International Journal of Production Economics, Elsevier, vol. 144(2), pages 618-634.
    6. Yun Bai & Xiaopeng Li & Fan Peng & Xin Wang & Yanfeng Ouyang, 2015. "Effects of Disruption Risks on Biorefinery Location Design," Energies, MDPI, vol. 8(2), pages 1-19, February.
    7. Durusut, Emrah & Tahir, Foaad & Foster, Sam & Dineen, Denis & Clancy, Matthew, 2018. "BioHEAT: A policy decision support tool in Ireland’s bioenergy and heat sectors," Applied Energy, Elsevier, vol. 213(C), pages 306-321.

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    Keywords

    Agribusiness;

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