Sustainable Design and Operation of Cellulosic Bioelectricity Supply Chain Networks with Life Cycle Economic, Environmental, and Social Optimization

The incorporated environmental policies and regulations into bioenergy supply chain management: A literature review

Bioenergy, a means to reach a sustainable economy, is being driven by governments by devising incremental regulations and more instrumental policies in parallel. These constant-changing regulations bring uncertainty to bioenergy supply chain optimization problems. An increasing number of recent studies on bioenergy supply chain optimization addressing environmental concerns have highlighted the need for an overview indispensable. The purpose of this paper is to present a review of the incorporated policies and regulations and to examine whether constraints or targets set by governments are fully met in optimizing of bioenergy supply chains. To this end, first, bioenergy policies and regulations enacted in the EU, the global leader in the energy transition, as a benchmark are reviewed based on the bioenergy supply chain steps. Then, the optimization problems employing policies and regulations are classified and discussed. The review reveals visible gaps between what policies demand and what is proposed in the literature, and underpin the regulations which need to be considered in future work. Examination of the literature also suggests that a globally drawn standard may lead to better bioenergy supply chain development considering other green energy developments. Our key finds are.

Incorporating Environmental Perspective in Integrated Strategic-Tactical Economic Optimization Model of Biomass-to-Biofuel Supply Chain—A Real Case Study in Ethiopia

Several optimization models, which consider economic and environmental perspectives, have been developed recently to support the sustainable biomass-to-biofuel supply chain (BBSC) design. All of the economic-environmental optimization models rely on solving long-term planning problems with a conventional hierarchical approach, where tactical decisions are made based on the optimal strategic decisions from the strategic-level model, despite it arousing non-optimal solutions. Moreover, almost all of them have used non-monetary-based environmental indicators, which result in difficulties with clarity when comparing with economic objectives. Therefore, in this work, an effort is made to develop a more reliable planning strategy that offers optimal strategic and tactical decisions simultaneously and maximizes the economic and environmental benefits. Furthermore, the environmental performance of the BBSC has been assessed in terms of monetary value by adopting an ecocost approach after performing an LCA on the system. The integrated model is applied in the real biofuel sector of Ethiopia to optimize the country’s bioethanol and biodiesel supply chain over a 20-year horizon. Despite the abrupt rise in the model size, with it being a real countrywide case with many variables and large quantities of data, an alternative semi-heuristic method that offers a feasible solution to the multi-objective problem is provided.

Optimal Design of Bioenergy Supply Chains Considering Social Benefits: A Case Study in Northeast China

Bioenergy supply chains can offer social benefits. In most related research, the total number of created jobs is used as the indicator of social benefits. Only a few of them quantify social benefits considering the different impact of economic activities in different locations. In this paper, a new method of measuring the social benefits of bioethanol supply chains is proposed that considers job creation, biomass purchase, and the different impacts of economic activities in different locations. A multi-objective mixed integer linear programming (MILP) model is developed to address the optimal design of a bioethanol supply chain that maximizes both economic and social benefits. The ε-constraint method is employed to solve the model and a set of Pareto-optimal solutions is obtained that shows the relationship between the two objectives. The developed model is applied to case studies in Liaoning Province in Northeast China. Actual data are collected as practical as possible for the feasibility and effectiveness of the results. The results show that the bioethanol supply chain can bring about both economic and social benefits in the given area and offers governments a better and more efficient way to create social benefits. The effect of the government subsidy on enterprises’ decisions about economic and social benefits is discussed.

A goal programming model for a sustainable biomass supply chain network

Purpose

The design of a biomass supply chain is a problem where multiple stakeholders with often conflicting objectives are involved. To accommodate the aspects stakeholder, the supply chain design should incorporate multiple objectives. In addition to the supply chain design, the management of energy from biomass is a demanding task, as the operation of production of biomass products needs to be aligned with the rest of the operations of the biomass supply chain. The purpose of the paper is to propose a mathematical framework for the optimal design of biomass supply chain.

Design/methodology/approach

An integrated mathematical framework that models biomass production, transportation and warehousing throughout the nodes of a biomass supply chain is presented. Owing to conflicting objectives, weights are imposed on each aspect, and a 0-1 weighted goal programming mixed-integer linear programming (WGP MILP) programming model is formulated and used for all possible weight representations under environmental, economic and social criteria.

Findings

The results of the study show that emphasis on the environmental aspect, expressed with high values in the environmental criterion, significantly reduces the level of CO2 emissions derived from the transportation of biomass through the various nodes of the supply chain. Environmental and economic criteria seem to be moving in the same direction for high weight values in the corresponding aspect. From the results, social criterion seems to move to the opposite direction from environmental and economic criteria.

Originality/value

An integrated mathematical framework is presented modeling biomass production, transportation and warehousing. To the best of the authors’ knowledge, such a model that integrates multiple objectives with supply chain design has not yet been published.