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Rethinking circularity with Re-refineries and supply chains reintegration via multi-objective pareto graph theoretical approach

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Listed:
  • 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

Abstract

Amidst the global effort in energy transition from fossil fuel remains a challenge for the heavily dependent oil and gas (O&G) industry. Thus, the circular economy (CE) concept offers a viable approach to improve the long-term sustainability of the O&G industry while transitioning toward sustainable development. This research proposed the re-refinery strategies to attain circularity within the O&G industry. Two models are developed to address the strategy decision on both Meso (re-refinery technology decision optimization via P-graph approach) and Macro (supply chain optimization via mixed-integer linear programming (MILP)) perspectives. The re-refining of waste oil utilizing membrane ultrafiltration followed by hydrofinishing is favoured in both cases for its economic potential contributed by its higher production yield (89.94 wt%) compared to distillation (77.12 wt%) pathway. Overall, the re-refining strategy suggest promising improvement in both economic (27.17% lower cost) and environmental (55.35% lower emissions) performance. The addition of in-situ lubricant blending incurred a 4.49% reduction in total cost of the supply chain as compared to the base case with primary reduction (31.48%) in transportation. This study reveals the potential of re-refining approach which serves as guidelines for decision-makers and researchers to strengthen CE practice in modern O&G industry.

Suggested Citation

  • 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).
  • Handle: RePEc:eee:energy:v:279:y:2023:i:c:s0360544223012082
    DOI: 10.1016/j.energy.2023.127814
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    References listed on IDEAS

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    1. 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).
    2. Anil Jindal & Kuldip Singh Sangwan, 2017. "Multi-objective fuzzy mathematical modelling of closed-loop supply chain considering economical and environmental factors," Annals of Operations Research, Springer, vol. 257(1), pages 95-120, October.
    3. Alan Murray & Keith Skene & Kathryn Haynes, 2017. "The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context," Journal of Business Ethics, Springer, vol. 140(3), pages 369-380, February.
    4. Jason Yi Juang Yeo & Bing Shen How & Sin Yong Teng & Wei Dong Leong & Wendy Pei Qin Ng & Chun Hsion Lim & Sue Lin Ngan & Jaka Sunarso & Hon Loong Lam, 2020. "Synthesis of Sustainable Circular Economy in Palm Oil Industry Using Graph-Theoretic Method," Sustainability, MDPI, vol. 12(19), pages 1-29, September.
    5. Süle, Zoltán & Baumgartner, János & Dörgő, Gyula & Abonyi, János, 2019. "P-graph-based multi-objective risk analysis and redundancy allocation in safety-critical energy systems," Energy, Elsevier, vol. 179(C), pages 989-1003.
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