A Regional Optimization Model for Waste-to-Energy Generation Using Agricultural Vegetative Residuals

Abstract

The spatial distribution of vegetative agricultural residuals (VAR) makes the economic feasibility of a waste treatment solution particularly sensitive to transportation costs, especially when farmers are the ones being charged for that. This study evaluated a method to design an economic feasible VAR treatment system, analyzing the profitability of the system as a function of logistics and the unknown market prices of the treatment facilities' products. The design method includes optimization modeling followed by a sensitivity analysis of the potential changes in the system’s profitability. The results show that the market price of the treatment facilities’ products has a greater effect on the system’s profitability in compare to transportation costs. In specific, if biochar prices reach the level forecasted by experts, its production requirements will dominate the whole waste treatment system (WTS). The research highlights the importance of the treatment technology selection as part of a WTS design for agriculture and forest residuals. This selection should allow the absorption of market price changes and transport costs into the system’s operational costs, and remove these potential risks from the system’s implementation path.