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Biomass feedstock supply chain network design with biomass conversion incentives

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  • Mohamed Abdul Ghani, N. Muhammad Aslaam
  • Vogiatzis, Chrysafis
  • Szmerekovsky, Joseph

Abstract

Biomass has the potential to create sustainable energy systems, which is critical for societal welfare. A major issue regarding biomass resources is crop residues or leftover biomass that is burnt by farmers after harvesting; this happens due to high transportation costs which make burning the cheapest way to remove the residue. We develop a decision support system using a large-scale linear program with the goal of maximizing profit with and without the emission cost. This system helps identify farms that would benefit society were they to be incentivized under a biomass crop assistance program (BCAP). A case study of leftover corn stover in the state of North Dakota is analyzed to validate the model. Our results reveal that an incentive of $7.20 per ton of corn stover converted to ethanol when 20% of rail capacity is allocated is ideal, as it produces the lowest emissions of 16,784,953 metric tons with a $73,462,599 profit. Furthermore, penalizing emissions resulting from the transportation of corn stover also helps reduce emissions; a suitable value for the penalty could be $71.7 per metric ton of CO2 emitted. Such a policy would result in reducing dependency on petroleum, thus promoting a sustainable biomass supply chain.

Suggested Citation

  • Mohamed Abdul Ghani, N. Muhammad Aslaam & Vogiatzis, Chrysafis & Szmerekovsky, Joseph, 2018. "Biomass feedstock supply chain network design with biomass conversion incentives," Energy Policy, Elsevier, vol. 116(C), pages 39-49.
    • Handle: RePEc:eee:enepol:v:116:y:2018:i:c:p:39-49
    DOI: 10.1016/j.enpol.2018.01.042
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    Cited by:

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    8. Jahani, Hamed & Abbasi, Babak & Sheu, Jiuh-Biing & Klibi, Walid, 2024. "Supply chain network design with financial considerations: A comprehensive review," European Journal of Operational Research, Elsevier, vol. 312(3), pages 799-839.
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    13. Shahbazbegian, Vahid & Hosseini-Motlagh, Seyyed-Mahdi & Haeri, Abdorrahman, 2020. "Integrated forward/reverse logistics thin-film photovoltaic power plant supply chain network design with uncertain data," Applied Energy, Elsevier, vol. 277(C).
    14. Wang, Zhanwu & Wang, Zhenfeng & Tahir, Nadeem & Wang, Heng & Li, Jin & Xu, Guangyin, 2020. "Study of synergetic development in straw power supply chain: Straw price and government subsidy as incentive," Energy Policy, Elsevier, vol. 146(C).
    15. Wang, Guotao & Liao, Qi & Zhang, Haoran & Liang, Yongtu, 2022. "How government policies promote bioenergy’s permeability in national-level energy supply chain: A case of China," Applied Energy, Elsevier, vol. 324(C).
    16. Liu, Liansheng & Wang, Dongji & Gao, Liwei & Duan, Runze, 2020. "Distributed heating/centralized monitoring mode of biomass briquette fuel in Chinese northern rural areas," Renewable Energy, Elsevier, vol. 147(P1), pages 1221-1230.
    17. R. N. Ossei-Bremang & F. Kemausuor, 2021. "A decision support system for the selection of sustainable biomass resources for bioenergy production," Environment Systems and Decisions, Springer, vol. 41(3), pages 437-454, September.
    18. Sajad Ebrahimi & Joseph Szmerekovsky & Bahareh Golkar & Seyed Ali Haji Esmaeili, 2023. "Designing a Renewable Jet Fuel Supply Chain: Leveraging Incentive Policies to Drive Commercialization and Sustainability," Mathematics, MDPI, vol. 11(24), pages 1-20, December.
    19. Malladi, Krishna Teja & Sowlati, Taraneh, 2020. "Impact of carbon pricing policies on the cost and emission of the biomass supply chain: Optimization models and a case study," Applied Energy, Elsevier, vol. 267(C).
    20. Ghadge, Abhijeet & van der Werf, Sjoerd & Er Kara, Merve & Goswami, Mohit & Kumar, Pankaj & Bourlakis, Michael, 2020. "Modelling the impact of climate change risk on bioethanol supply chains," Technological Forecasting and Social Change, Elsevier, vol. 160(C).
    21. Ebrahimi, Sajad & Haji Esmaeili, Seyed Ali & Sobhani, Ahmad & Szmerekovsky, Joseph, 2022. "Renewable jet fuel supply chain network design: Application of direct monetary incentives," Applied Energy, Elsevier, vol. 310(C).
    22. Yuan, Jiahang & Luo, Xinggang & Ding, Xianghai & Liu, Chunlai & Li, Cunbin, 2019. "Biomass power generation fuel procurement and storage modes evaluation: A case study in Jilin," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 75-86.

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