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Effect of outdoor storage losses on feedstock inventory management and plant-gate cost for a switchgrass conversion facility in East Tennessee

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  • Larson, James A.
  • Yu, T. Edward
  • English, Burton C.
  • Jensen, Kimberly L.
  • Gao, Yuan
  • Wang, Chenguang

Abstract

Little is known about the potential impacts of storage losses on the optimal design of a switchgrass (Panicum virgatum) supply chain for an ethanol conversion facility. This study analyzed how storage losses impact plant-gate cost and feedstock inventory management for a 94,635 kL year−1 switchgrass-based ethanol conversion facility in East Tennessee. A spatially-oriented, mixed-integer mathematical programming model was used to analyze plant-gate cost and harvest, storage, and delivery schedule for switchgrass packaged in large round or rectangular bales. Results indicate that last in, first out inventory management of feedstock minimized plant-gate cost. The key factor influencing inventory management was dry matter loss increasing at a decreasing rate with time in storage and distance of switchgrass production from the conversion facility. Our findings imply that the conversion facility can optimize the feedstock inventory and delivery management through coordinating the timing and location of switchgrass harvest with storage and delivery.

Suggested Citation

  • Larson, James A. & Yu, T. Edward & English, Burton C. & Jensen, Kimberly L. & Gao, Yuan & Wang, Chenguang, 2015. "Effect of outdoor storage losses on feedstock inventory management and plant-gate cost for a switchgrass conversion facility in East Tennessee," Renewable Energy, Elsevier, vol. 74(C), pages 803-814.
    • Handle: RePEc:eee:renene:v:74:y:2015:i:c:p:803-814
    DOI: 10.1016/j.renene.2014.08.064
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    References listed on IDEAS

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    1. Daniel G. De La Torre Ugarte & Burton C. English & Kim Jensen, 2007. "Sixty Billion Gallons by 2030: Economic and Agricultural Impacts of Ethanol and Biodiesel Expansion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 89(5), pages 1290-1295.
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    4. Ebadian, Mahmood & Sowlati, Taraneh & Sokhansanj, Shahab & Townley-Smith, Lawrence & Stumborg, Mark, 2013. "Modeling and analysing storage systems in agricultural biomass supply chain for cellulosic ethanol production," Applied Energy, Elsevier, vol. 102(C), pages 840-849.
    5. Tembo, Gelson & Epplin, Francis M. & Huhnke, Raymond L., 2003. "Integrative Investment Appraisal of a Lignocellulosic Biomass-to-Ethanol Industry," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 28(3), pages 1-23, December.
    6. James A. Larson & Tun‐Hsiang Yu & Burton C. English & Daniel F. Mooney & Chenguang Wang, 2010. "Cost evaluation of alternative switchgrass producing, harvesting, storing, and transporting systems and their logistics in the Southeastern USA," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 70(2), pages 184-200, August.
    7. Lawrence D. Mapemba & Francis M. Epplin & Charles M. Taliaferro & Raymond L. Huhnke, 2007. "Biorefinery Feedstock Production on Conservation Reserve Program Land," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 227-246.
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    Cited by:

    1. Zhong, Jia & Yu, T. Edward & Larson, James A. & English, Burton C. & Fu, Joshua S. & Calcagno, James, 2016. "Analysis of environmental and economic tradeoffs in switchgrass supply chains for biofuel production," Energy, Elsevier, vol. 107(C), pages 791-803.
    2. Forte, Annachiara & Zucaro, Amalia & Faugno, Salvatore & Basosi, Riccardo & Fierro, Angelo, 2018. "Carbon footprint and fossil energy consumption of bio-ethanol fuel production from Arundo donax L. crops on marginal lands of Southern Italy," Energy, Elsevier, vol. 150(C), pages 222-235.
    3. Mirkouei, Amin & Haapala, Karl R. & Sessions, John & Murthy, Ganti S., 2017. "A review and future directions in techno-economic modeling and optimization of upstream forest biomass to bio-oil supply chains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 15-35.
    4. Lan, Kai & Ou, Longwen & Park, Sunkyu & Kelley, Stephen S. & English, Burton C. & Yu, T. Edward & Larson, James & Yao, Yuan, 2021. "Techno-Economic Analysis of decentralized preprocessing systems for fast pyrolysis biorefineries with blended feedstocks in the southeastern United States," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    5. Yu, T. Edward & Larson, James A. & English, Burton C. & Fu, Joshua S. & Calcagno III, Jimmy & Wilson, Bradly, 2016. "Dedicated Energy Crop Supply Chair and Associated Feedstock Transportation Emissions: A Case Study of Tennessee," Journal of the Transportation Research Forum, Transportation Research Forum, vol. 55(1), April.
    6. Malladi, Krishna Teja & Sowlati, Taraneh, 2018. "Biomass logistics: A review of important features, optimization modeling and the new trends," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 587-599.
    7. Razm, Sobhan & Brahimi, Nadjib & Hammami, Ramzi & Dolgui, Alexandre, 2023. "A production planning model for biorefineries with biomass perishability and biofuel transformation," International Journal of Production Economics, Elsevier, vol. 258(C).
    8. Hugo Guzmán-Bello & Iosvani López-Díaz & Miguel Aybar-Mejía & Jose Atilio de Frias, 2022. "A Review of Trends in the Energy Use of Biomass: The Case of the Dominican Republic," Sustainability, MDPI, vol. 14(7), pages 1-27, March.
    9. Zhong, Jia & Yu, T. Edward & Clark, Christopher D. & English, Burton C. & Larson, James A. & Cheng, Chu-Lin, 2018. "Effect of land use change for bioenergy production on feedstock cost and water quality," Applied Energy, Elsevier, vol. 210(C), pages 580-590.
    10. He-Lambert, Lixia & English, Burton C. & Lambert, Dayton M. & Shylo, Oleg & Larson, James A. & Yu, T. Edward & Wilson, Bradly, 2018. "Determining a geographic high resolution supply chain network for a large scale biofuel industry," Applied Energy, Elsevier, vol. 218(C), pages 266-281.

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