A network design problem for upgrading decentrally produced biogas into biomethane

Abstract

In this paper, we explore the possibility of connecting decentralized biogas plants via a pipeline network to terminals that upgrade biogas into biomethane. We present a mixed-integer linear program that forms subnetworks of such plants, decides on suitable terminal locations, and establishes pipeline connections to maximize profit. We apply this model to a real-world scenario in Northern Germany. The results show a much higher total profit for the optimized network compared to the benchmark solutions where each plant upgrades biogas into biomethane on its own. Therefore, plants can increase their profitability by collaborating with other (neighboring) plants. However, the collaboration requires a fair profit-sharing model as network participation is not individually profitable for all plants, especially small ones.