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Locating a Biorefinery in Northern Spain: Decision Making and Economic Consequences

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  • Serrano-Hernandez, Adrian
  • Faulin, Javier

Abstract

Biofuels are emerging as a prominent renewable and sustainable energy sources in developed countries. In this sense, this paper presents a case study in which a biorefinery has to be sited in Northern Spain. Thus, the strategic decision of locating such a facility is deeply investigated through strategic policy evaluation. Then, tactical decisions ranging from purchasing and transportation policies to storage protocols are carried out. Only local and limited biomass can be harvested for supplying the biorefinery through a heterogeneous vehicle fleet. Moreover two different and mutually exclusive storage strategies are evaluated: direct supply from crops to biorefinery and using intermediate-collectors. Additionally, crop exploitation factors and biorefinery sizes are used to generate several scenarios in which the strategic decision of location as well as all the tactic decisions are made. Some mixed integer linear programming models are proposed to figure out all relevant decision problems.

Suggested Citation

  • Serrano-Hernandez, Adrian & Faulin, Javier, 2019. "Locating a Biorefinery in Northern Spain: Decision Making and Economic Consequences," Socio-Economic Planning Sciences, Elsevier, vol. 66(C), pages 82-91.
    • Handle: RePEc:eee:soceps:v:66:y:2019:i:c:p:82-91
    DOI: 10.1016/j.seps.2018.07.012
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    References listed on IDEAS

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    1. Chen, Lujie & Olhager, Jan & Tang, Ou, 2014. "Manufacturing facility location and sustainability: A literature review and research agenda," International Journal of Production Economics, Elsevier, vol. 149(C), pages 154-163.
    2. Melo, M.T. & Nickel, S. & Saldanha-da-Gama, F., 2009. "Facility location and supply chain management - A review," European Journal of Operational Research, Elsevier, vol. 196(2), pages 401-412, July.
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