IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v104y2013icp353-361.html
   My bibliography  Save this article

A mixed integer non-linear programming model for tactical value chain optimization of a wood biomass power plant

Author

Listed:
  • Shabani, Nazanin
  • Sowlati, Taraneh

Abstract

Forest biomass is one of the renewable sources of energy that has been used for generating electricity. The feasibility and cost of producing electricity from forest biomass depend on long term availability of biomass, its cost and quality, and the cost of collecting, pre-processing, handling, transportation, and storage of forest biomass, in addition to the operating and maintenance costs of the conversion facility. To improve the cost competitiveness of forest biomass for electricity generation, mathematical programming models can be used to manage and optimize its supply chain. In this paper, the supply chain configuration of a typical forest biomass power plant is presented and a dynamic optimization model is developed to maximize the overall value of the supply chain. The model considers biomass procurement, storage, energy production and ash management in an integrated framework at the tactical level. The developed model is a nonlinear mixed integer programming which is solved using the outer approximation algorithm provided in AIMMS software package. It is then applied to optimize the supply chain of a real biomass power plant in Canada. The optimum solution provides more profit compared to the actual profit of the power plant. Different scenarios for maximum available supply and also investment in a new ash recovery system were evaluated and the results were analyzed. The model in particular shows that investment in a new ash recovery system has economic as well as environmental benefits for the power plant.

Suggested Citation

  • Shabani, Nazanin & Sowlati, Taraneh, 2013. "A mixed integer non-linear programming model for tactical value chain optimization of a wood biomass power plant," Applied Energy, Elsevier, vol. 104(C), pages 353-361.
    • Handle: RePEc:eee:appene:v:104:y:2013:i:c:p:353-361
    DOI: 10.1016/j.apenergy.2012.11.013
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261912008069
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2012.11.013?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Saidur, R. & Abdelaziz, E.A. & Demirbas, A. & Hossain, M.S. & Mekhilef, S., 2011. "A review on biomass as a fuel for boilers," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(5), pages 2262-2289, June.
    2. Chinese, Damiana & Meneghetti, Antonella, 2005. "Optimisation models for decision support in the development of biomass-based industrial district-heating networks in Italy," Applied Energy, Elsevier, vol. 82(3), pages 228-254, November.
    3. Sultana, Arifa & Kumar, Amit, 2012. "Optimal siting and size of bioenergy facilities using geographic information system," Applied Energy, Elsevier, vol. 94(C), pages 192-201.
    4. Schmidt, Johannes & Leduc, Sylvain & Dotzauer, Erik & Kindermann, Georg & Schmid, Erwin, 2010. "Cost-effective CO2 emission reduction through heat, power and biofuel production from woody biomass: A spatially explicit comparison of conversion technologies," Applied Energy, Elsevier, vol. 87(7), pages 2128-2141, July.
    5. Gunnarsson, Helene & Ronnqvist, Mikael & Lundgren, Jan T., 2004. "Supply chain modelling of forest fuel," European Journal of Operational Research, Elsevier, vol. 158(1), pages 103-123, October.
    6. Vera, David & Carabias, Julio & Jurado, Francisco & Ruiz-Reyes, Nicolás, 2010. "A Honey Bee Foraging approach for optimal location of a biomass power plant," Applied Energy, Elsevier, vol. 87(7), pages 2119-2127, July.
    7. Zhang, Jun & Osmani, Atif & Awudu, Iddrisu & Gonela, Vinay, 2013. "An integrated optimization model for switchgrass-based bioethanol supply chain," Applied Energy, Elsevier, vol. 102(C), pages 1205-1217.
    8. Chen, Chien-Wei & Fan, Yueyue, 2012. "Bioethanol supply chain system planning under supply and demand uncertainties," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(1), pages 150-164.
    9. Börjesson, Martin & Ahlgren, Erik O., 2010. "Biomass gasification in cost-optimized district heating systems--A regional modelling analysis," Energy Policy, Elsevier, vol. 38(1), pages 168-180, January.
    10. van Dyken, Silke & Bakken, Bjorn H. & Skjelbred, Hans I., 2010. "Linear mixed-integer models for biomass supply chains with transport, storage and processing," Energy, Elsevier, vol. 35(3), pages 1338-1350.
    11. Rentizelas, Athanasios A. & Tolis, Athanasios J. & Tatsiopoulos, Ilias P., 2009. "Logistics issues of biomass: The storage problem and the multi-biomass supply chain," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 887-894, May.
    12. Eriksson, Ljusk Ola & Bjorheden, Rolf, 1989. "Optimal storing, transport and processing for a forest-fuel supplier," European Journal of Operational Research, Elsevier, vol. 43(1), pages 26-33, November.
    13. Mobini, Mahdi & Sowlati, Taraneh & Sokhansanj, Shahab, 2011. "Forest biomass supply logistics for a power plant using the discrete-event simulation approach," Applied Energy, Elsevier, vol. 88(4), pages 1241-1250, April.
    14. Wetterlund, Elisabeth & Söderström, Mats, 2010. "Biomass gasification in district heating systems - The effect of economic energy policies," Applied Energy, Elsevier, vol. 87(9), pages 2914-2922, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shabani, Nazanin & Akhtari, Shaghaygh & Sowlati, Taraneh, 2013. "Value chain optimization of forest biomass for bioenergy production: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 23(C), pages 299-311.
    2. Ba, Birome Holo & Prins, Christian & Prodhon, Caroline, 2016. "Models for optimization and performance evaluation of biomass supply chains: An Operations Research perspective," Renewable Energy, Elsevier, vol. 87(P2), pages 977-989.
    3. Akhtari, Shaghaygh & Sowlati, Taraneh & Griess, Verena C., 2018. "Integrated strategic and tactical optimization of forest-based biomass supply chains to consider medium-term supply and demand variations," Applied Energy, Elsevier, vol. 213(C), pages 626-638.
    4. Cambero, Claudia & Sowlati, Taraneh, 2014. "Assessment and optimization of forest biomass supply chains from economic, social and environmental perspectives – A review of literature," Renewable and Sustainable Energy Reviews, Elsevier, vol. 36(C), pages 62-73.
    5. Shabani, Nazanin & Sowlati, Taraneh & Ouhimmou, Mustapha & Rönnqvist, Mikael, 2014. "Tactical supply chain planning for a forest biomass power plant under supply uncertainty," Energy, Elsevier, vol. 78(C), pages 346-355.
    6. 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.
    7. Nunes, L.J.R. & Causer, T.P. & Ciolkosz, D., 2020. "Biomass for energy: A review on supply chain management models," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    8. Mafakheri, Fereshteh & Nasiri, Fuzhan, 2014. "Modeling of biomass-to-energy supply chain operations: Applications, challenges and research directions," Energy Policy, Elsevier, vol. 67(C), pages 116-126.
    9. Razm, Sobhan & Brahimi, Nadjib & Hammami, Ramzi & Dolgui, Alexandre, 2023. "A production planning model for biorefineries with biomass perishability and biofuel transformation," International Journal of Production Economics, Elsevier, vol. 258(C).
    10. Jensen, Ida Græsted & Münster, Marie & Pisinger, David, 2017. "Optimizing the supply chain of biomass and biogas for a single plant considering mass and energy losses," European Journal of Operational Research, Elsevier, vol. 262(2), pages 744-758.
    11. Malladi, Krishna Teja & Sowlati, Taraneh, 2018. "Biomass logistics: A review of important features, optimization modeling and the new trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 587-599.
    12. 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.
    13. Sosa, Amanda & Acuna, Mauricio & McDonnell, Kevin & Devlin, Ger, 2015. "Managing the moisture content of wood biomass for the optimisation of Ireland's transport supply strategy to bioenergy markets and competing industries," Energy, Elsevier, vol. 86(C), pages 354-368.
    14. Maung, Thein A. & Gustafson, Cole R. & Saxowsky, David M. & Nowatzki, John & Miljkovic, Tatjana & Ripplinger, David, 2013. "The logistics of supplying single vs. multi-crop cellulosic feedstocks to a biorefinery in southeast North Dakota," Applied Energy, Elsevier, vol. 109(C), pages 229-238.
    15. Babazadeh, Reza & Razmi, Jafar & Pishvaee, Mir Saman & Rabbani, Masoud, 2017. "A sustainable second-generation biodiesel supply chain network design problem under risk," Omega, Elsevier, vol. 66(PB), pages 258-277.
    16. Eliasson, Lars & Eriksson, Anders & Mohtashami, Sima, 2017. "Analysis of factors affecting productivity and costs for a high-performance chip supply system," Applied Energy, Elsevier, vol. 185(P1), pages 497-505.
    17. Saghaei, Mahsa & Ghaderi, Hadi & Soleimani, Hamed, 2020. "Design and optimization of biomass electricity supply chain with uncertainty in material quality, availability and market demand," Energy, Elsevier, vol. 197(C).
    18. Moretti, Luca & Milani, Mario & Lozza, Giovanni Gustavo & Manzolini, Giampaolo, 2021. "A detailed MILP formulation for the optimal design of advanced biofuel supply chains," Renewable Energy, Elsevier, vol. 171(C), pages 159-175.
    19. 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.
    20. Malladi, Krishna Teja & Quirion-Blais, Olivier & Sowlati, Taraneh, 2018. "Development of a decision support tool for optimizing the short-term logistics of forest-based biomass," Applied Energy, Elsevier, vol. 216(C), pages 662-677.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:104:y:2013:i:c:p:353-361. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.