Impact of government policies on Sustainable Petroleum Supply Chain (SPSC): A case study – Part I (Models)

Environmental concerns and energy security have led governments to establish legislations to convertConventional Petroleum Supply Chain (CPSC) to Sustainable Petroleum Supply Chain (SPSC). The United States(US), one of the biggest oil consumers in the world, has created regulations to manage ethanol production and con-sumption for the last half century. Though these regulations have created new opportunities, they have also added newburdens to the obligated parties. It is thus key for the government, the obligated parties, and related businesses to studythe impact of the policies on the SPSC. We develop a two-stage stochastic programming model, General Model (GM),which incorporates Renewable Fuel Standard 2 (RFS2), Tax Credits, Tariffs, and Blend Wall (BW) to study the policyimpact on the SPSC using cellulosic ethanol. The model, as any other general model available in the literature, makesit highly impractical to study the policy impact due to the model’s computational complexity. We use the GM to derivea Lean Model (LM) to study the impact by running computational experiments more efficiently and consequently byarriving at robust managerial insights much faster. We present a case study of the policy impact on the SPSC in theState of Nebraska using the LM in the accompanying part II (Ghahremanlou and Kubiak 2020)

Cost optimization of biofuel production – The impact of scale, integration, transport and supply chain configurations

This study uses a geographically-explicit cost optimization model to analyze the impact of and interrelation between four cost reduction strategies for biofuel production: economies of scale, intermodal transport, integration with existing industries, and distributed supply chain configurations (i.e. supply chains with an intermediate pre-treatment step to reduce biomass transport cost). The model assessed biofuel production levels ranging from 1 to 150 PJ a−1 in the context of the existing Swedish forest industry. Biofuel was produced from forestry biomass using hydrothermal liquefaction and hydroprocessing. Simultaneous implementation of all cost reduction strategies yielded minimum biofuel production costs of 18.1–18.2 € GJ−1 at biofuel production levels between 10 and 75 PJ a−1. Limiting the economies of scale was shown to cause the largest cost increase (+0–12%, increasing with biofuel production level), followed by disabling integration benefits (+1–10%, decreasing with biofuel production level) and allowing unimodal truck transport only (+0–6%, increasing with biofuel production level). Distributed supply chain configurations were introduced once biomass supply became increasingly dispersed, but did not provide a significant cost benefit (<1%). Disabling the benefits of integration favors large-scale centralized production, while intermodal transport networks positively affect the benefits of economies of scale. As biofuel production costs still exceeds the price of fossil transport fuels in Sweden after implementation of all cost reduction strategies, policy support and stimulation of further technological learning remains essential to achieve cost parity with fossil fuels for this feedstock/technology combination in this spatiotemporal context

Exploring the spatiotemporal evolution of bioenergy with carbon capture and storage and decarbonization of oil refineries with a national energy system model of Colombia

Bioenergy combined with carbon capture and storage (BECCS) has a high mitigation potential of greenhouse gases in the energy system. However, the feasibility of its deployment depends on co–location of suitable storage basins and biomass resources with low-carbon stocks. Moreover, national transition analyses towards low–carbon energy systems have often given little attention to the mitigation potential of existing oil refineries, which are major components of current energy systems. We parametrized and incorporated these knowledge gaps into an energy system optimization model and used it analyze mitigation pathways towards carbon neutrality of the Colombian energy system by midcentury. Our results show that modern bioenergy could contribute 0.8–0.9 EJ/y (48–51 %) to the final energy consumption by 2050 at a system cost of 29–35 B$/y. BECCS value chains could deliver a mitigation potential of 37–41 % of the cumulative avoided emissions between 2030 and 2050. Low–carbon retrofitting of existing oil refineries could contribute up to 19 % of the total biofuel production and 10 % of the total CO2 capture by 2050. The Andes and Caribbean could be promising regions for BECCS because of their high potential for biomass supply and carbon sinks. In contrast, Orinoquía has a high potential for bioenergy and more uncertainty of CCS, depending on the access to nearby carbon sinks. This framework could be used to harmonize between the visions of the energy and agricultural sectors, national government and the oil sector, and national and regional governments, towards integrated planning for low-carbon development

Biofuels supply chain characterization

Thesis (M. Eng. in Logistics)--Massachusetts Institute of Technology, Engineering Systems Division, 2007.Includes bibliographical references (leaves 84-89).Ethanol can be made from agricultural residues like wheat straw and from crops dedicated to energy use, like switchgrass. We study the logistics aspects of this transformation and determine the main characteristics of the supply chain making ethanol from cellulose. Important to the final acceptability of ethanol as a transportation fuel is both the economics as well as the environmental aspect of using ethanol. In this study we analyze the buildup of cost as biomass is transformed into fuel. We also look at all the steps involved and describe them from a supply chain perspective We have found that the main cost components in the cellulosic ethanol production are biomass production, harvesting and ethanol refining. We have also found that the main factor in reducing the overall production cost is the biomass to ethanol conversion factor. The development of new technologies to convert biomass into ethanol becomes a critical issue to achieve the cost targets imposed in order to make ethanol more competitive with other sources of energy such as fossil fuels. An increase in the current conversion factor of 42% could potentially yield to a decrease of nearly 15% in the: total production cost of cellulosic ethanol.(cont.) Other factors such as increasing the refining plant size and biomass yield can also help to reduce the production cost but we found its impact to be lower than that of the conversion factor. Finally, we also performed a strategic analysis of the entire supply chain to determine how is this industry likely to develop and who will have more bargaining power and therefore will realize most of the value and profits in the supply chain. Our analysis shows that in such a dynamic scenario as in the alternate energy industry, the best option is to build sustained advantage by strong alliances with different partners within the supply chain.by Anindya Banerjee [and] José Luis Noguer.M.Eng.in Logistic

Mechano‐Optical Characterization of Extrusion Flow Instabilities in Styrene‐Butadiene Rubbers: Investigating the Influence of Molecular Properties and Die Geometry

The extrusion flow instabilities of two commercial styrene-butadiene rubbers are investigated as they vary in isomer content (1,4-cis, 1,4-trans, and 1,2 con- formation) of the butadiene monomer and the molecular architecture (linear, branched). The investigated samples have similar multimodal molecular weight distribution. Two geometries of extrusion dies, slit and round capillary, are compared in terms of the type and the spatial characteristics of the flow instabilities. The latter are quantified using three methods: a highly pressure sensitive slit die, online and offline optical analysis. The highly pressure- sensitive slit die has three piezoelectric pressure transducers (Δt ≈ 10−3 s and Δp ≈ 10−5 bar) placed along the die length. The characteristic frequency (fChar.) of the flow instabilities follows a power law behavior as a function of shear\ua0rate to a 0.5 power for both materials, f Char. ∝ γ app.. A qualitative model is used\ua0to predict the spatial characteristic wavelength (λ) of the flow instabilities from round capillary to slit dies and vice versa. Slip velocities (Vs) are used to quantify the slippage at slit and round capillary dies as well

Optimisation of South Africa's biomass to bio-ethanol supply chain network

This study is about the optimisation of bio-ethanol supply chains for economic and environmental objectives, using a mathematical programming approach. A superstructure presented as a Mixed Integer Linear Programme (MILP) model that adequately captures the key variables in South Africa's bio-ethanol supply chain network is developed. The MILP model accounts for food demand, geographical distribution of biomass cultivation areas and biomass diversity, feedstock, product and by-product distribution, product demand and tax subsidies. The study focuses on the use of sugarcane, bagasse and crop waste from maize, wheat, barley and sorghum in the production of bio-ethanol. In the supply chain, one processing technology for ethanol production is considered and one mode of transportation for both feedstock and products is considered. A detailed profitability analysis of the optimised MILP model is also provided. To account for the environmental impact of the supply chain, the model is integrated with life cycle analysis through multi-objective optimisation. The ε- constraint method is used to solve the multi-objective optimisation problem and Pareto analysis is done to check the trade-offs between the economic and environmental objectives, which is measured mainly by greenhouse gas emissions. In addition to greenhouse gas emissions, other impact categories namely eutrophication, human toxicity, acidification and global warming potential were also considered. Bio-ethanol production has been a subject of many studies. It is a renewable and potentially environment-friendly product, which after blending with petrol can be used as a fuel in the transport sector. The use of bio-fuels has the potential to relieve pressure on fossil-based fuels, and achieve a reduction in the emissions of greenhouse gases. The use of bio-fuel results in net savings in carbon dioxide gas emissions as plants absorb the carbon dioxide released during bio-fuel production during biomass cultivation. The bio-fuel industry worldwide, however, faces many challenges, which compromises its economic viability and commercialisation, especially where lignocellulosic biomass is to be used in bio-fuel production. These challenges include the uncertainty or discontinuous availability of biomass, fluctuations in market prices, high logistics and high maintenance costs of the processing equipment. The high logistics costs arise from the low density of the feedstock and from distribution of the feedstock, which is usually scattered over a wide area thereby making the process energy intensive. To overcome these challenges, an optimised supply chain network is required

Bio-energy Logistics Network Design Under Price-based Supply and Yield Uncertainty

In this dissertation, we study the design and planning of bio-energy supply chain networks. This dissertation consists of 3 studies that focus on different aspects of bio-energy supply chain systems. In the first study, we consider planning and design of an extended supply chain for bio-energy networks in an integrated fashion while simultaneously addressing strategic and tactical decisions pertaining to location, production, inventory, and distribution in a multi-period planning horizon setting. For an efficient solution of our model, we suggest a Benders Decomposition based algorithm that can handle realistic size problems for design and analysis purposes. We provide computational results that demonstrate the efficiency of the solution approach on a wide ranging set of problem instances. Furthermore, we develop a realistic case by utilizing data pertaining to the state of Texas and conduct an extensive analysis on the effects of varying input parameters on the design outcomes for a bio-energy supply chain network. In the second study, we consider a two-stage stochastic problem to model farm-to-biorefinery biomass logistics while designing a policy that encourages farmers to plant biomass energy crops by offering them a unit wholesale price. In the first-stage, the model determines the supply chain network structure as well as the policy parameter, which is the biomass wholesale price offered to farmers. Second-stage problem is to determine the logistical decisions such as transportation, salvaging and out-sourcing. To solve this problem, we propose a solution framework that uses an algorithm based on the L-shaped method along with a Sample Average Approximation (SAA) approach. An extensive case study by varying some of the problem input parameters is conducted in Texas and the effects on the policy parameter (wholesale price), supply chain network design and expected total system cost are observed. In the last study, we propose a two-stage stochastic program to model a multi-period biomass-biofuel supply chain system to maximize the expected total system profit. We utilize a similar policy used in the second study to stimulate biomass energy crop production. Our model determines the policy parameter and the supply chain network structure in the first-stage and the tactical decisions for every time period in the second-stage. To solve this problem efficiently, we propose a solution algorithm based on the L-shaped method. Moreover, we also employ SAA approach in our solution methodology to statistically justify our solution quality. A case study is conducted in Texas for different biofuel prices and we analyze changes in the expected system profit the policy parameter and the supply chain network structure. Our case study results indicate that biofuel price needs to be at least $2.62/gal for the system to have a profit

Supply Chain Management Model of Wood Biomass Producing Hydrogen Fuel for Malaysia’s Electricity Industry

Green energy is becoming an important aspect of every country in the world toward energy security by reducing dependence on fossil fuel import and enhancing better life quality by living in the healthy environment. This article analyses available literature as approach toward determining physical flows characteristic of waste wood biomass in high scale plantation toward producing gas fuel for electricity using gasification technique. The aim of this study is to develop a conceptual supply chain management model of syngas fuel from wood waste biomass using direct gasification conversion technology. Literature review on energy security, Malaysias energy mix, Biomass supply chain management and processing technology. This paper uses the theoretical model of transportation (Lumsden, 2006) and the function of the terminal (Hulten, 1997) for research purpose. The theoretical framework used to answer the research questions are Supply Chain Operations Reference (SCOR) framework and Sustainable strategy development in supply chain management framework. To incorporate biomass unique properties, Biomass Element Life Cycle Analysis (BELCA) which is a novel technique develop used to understand the behaviour of biomass supply based on biomasss elements

Transportation Optimization Model Of Palm Oil Products For Northern Peninsular Malaysia.

Dalam tesis ini, model matematik pemprograman integer telah dibangunkan untuk menyelesaikan masalah pengangkutan minyak sawit mentah dan isirong sawit di Utara Semenanjung Malaysia. In this thesis, integer mathematical programming models were developed to solve the crude palm oil (CPO) and the palm kernel (PK) transportation problems for northern peninsular Malaysia