Designing a sustainable and resilient biofuel supply chain considering the water-energy-land nexus: Towards a circular economy

This study presents a bi-objective, multi-product stochastic optimization model for designing a biofuel supply chain under uncertainty, integrating first-generation (sugarcane) and second-generation (Miscanthus) biomass. Considering economic and environmental sustainability, the proposed model aims to maximize average profit from product sales and minimize the average soil erosion of fields. To cope with disruptions in preprocessing centers, sugar production centers, and biorefineries, four resilience strategies are utilized: using different raw materials, inventory holding, fortification, and capacity sharing. Based on the water-energy-land nexus concept, the proposed model produces the required biofuel with minimal water and land use. Given the importance of the circular economy and the necessity of waste elimination, biochar is considered a by-product and is transported to relevant consumption centers instead of being disposed of. Data from a real-world case study in Iran are used to evaluate the performance of the proposed model, with potentially valuable managerial insights derived from the findings. Our analysis examines (1) the relationship between the conversion rate of Miscanthus to bio-oil and the amount of soil erosion on fields, (2) the impact of the circular economy on total profit, and (3) interactions between resilience strategies and the percentage of demand fulfillment at biofuel consumption centers.