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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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    20. 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.
    21. 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.
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