TY - JOUR
T1 - Biomass feedstock supply chain network design with biomass conversion incentives
AU - Mohamed Abdul Ghani, N. Muhammad Aslaam
AU - Vogiatzis, Chrysafis
AU - Szmerekovsky, Joseph
N1 - Funding Information:
Funding: This work was supported in part by the National Science Foundation , grant ND EPSCoR NSF 1355466 . This work was performed when Dr. Vogiatzis was with the Department of Industrial and Manufacturing Engineering at North Dakota State University.
Publisher Copyright:
© 2018 Elsevier Ltd
PY - 2018/5
Y1 - 2018/5
N2 - 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.
AB - 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.
KW - Biomass
KW - Greenhouse gas emissions
KW - Incentives
KW - Optimization
KW - Supply chain management
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U2 - 10.1016/j.enpol.2018.01.042
DO - 10.1016/j.enpol.2018.01.042
M3 - Article
AN - SCOPUS:85044636811
SN - 0301-4215
VL - 116
SP - 39
EP - 49
JO - Energy Policy
JF - Energy Policy
ER -