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Sequential optimization of process and supply chains considering re-refineries for oil and gas circularity

Author

Listed:
  • Yeo, Lip Siang
  • Teng, Sin Yong
  • Ng, Wendy Pei Qin
  • Lim, Chun Hsion
  • Leong, Wei Dong
  • Lam, Hon Loong
  • Wong, Yat Choy
  • Sunarso, Jaka
  • How, Bing Shen

Abstract

The United Nations Climate Change Conference COP26 held in 2021 concluded a global effort to hasten the energy transition toward a net-zero emission industry. As such, green initiatives, which transition the conventional oil and gas (O&G) sector towards a circular economy (CE) are necessary. In this work, the integration of waste oil re-refining technology is proposed as a potential strategy to enhance the circularity of the O&G industry. A two-step sequential model, which incorporates multiple systematic analytical tools (e.g., multi-objective decision analysis, information entropy, geospatial information, clustering, and routing analysis) is developed to determine: (i) optimal waste oil re-refinery technologies, and (ii) optimal supply chain design, which addresses the location for setting up the process facilities and the delivery routes, with the consideration of both economic and environmental performances. The effectiveness of the proposed strategy is demonstrated through a case study in Malaysia (that covers both East and West Malaysia). The analysis showed that the proposed strategy is capable of improving economic and environmental performances by about 9.59% and 46.55%, respectively. This work is essentially a useful reference for decision-makers and policymakers in making nationwide transition planning in the O&G sector.

Suggested Citation

  • Yeo, Lip Siang & Teng, Sin Yong & Ng, Wendy Pei Qin & Lim, Chun Hsion & Leong, Wei Dong & Lam, Hon Loong & Wong, Yat Choy & Sunarso, Jaka & How, Bing Shen, 2022. "Sequential optimization of process and supply chains considering re-refineries for oil and gas circularity," Applied Energy, Elsevier, vol. 322(C).
  • Handle: RePEc:eee:appene:v:322:y:2022:i:c:s030626192200811x
    DOI: 10.1016/j.apenergy.2022.119485
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    1. Maryam Afghah & Seyed Mojtaba Sajadi & Seyed Mostafa Razavi & Mohammadreza Taghizadeh‐Yazdi, 2023. "Hard dimensions evaluation in sustainable supply chain management for environmentally adaptive and mitigated adverse eco‐effect environmental policies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 5044-5067, November.
    2. Zhu, Huichao & Zhang, Houcheng, 2023. "Upgrading the low-grade waste heat from alkaline fuel cells via isopropanol-acetone-hydrogen chemical heat pumps," Energy, Elsevier, vol. 265(C).
    3. Yeo, Lip Siang & Tiang, Celine Wei Ping & Teng, Sin Yong & Ng, Wendy Pei Qin & Lim, Chun Hsion & Leong, Wei Dong & Lam, Hon Loong & Sunarso, Jaka & How, Bing Shen, 2023. "Rethinking circularity with Re-refineries and supply chains reintegration via multi-objective pareto graph theoretical approach," Energy, Elsevier, vol. 279(C).

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