Competitive priorities to address optimisation in biomass value chains: The case of biomass CHP

Calliope Panoutsou,Asha Singh,Thomas Christensen,Luc Pelkmans

doi:10.1016/j.glt.2020.04.001

Abstract

Policy and industry decision makers place high priority on the contribution of biomass to the emerging low carbon, circular economy. Optimisation of performance, from the perspectives of environmental, social and economic sustainability and resource efficiency, is essential to successful development and operation of biomass value chains. The complexity of value chains, which comprise interrelated stages from land use to conversion and multiple end products, presents challenges.To date, decision makers have approached from the viewpoints of single market sectors or issues, such as market shares of bioeconomy and reduction of carbon emissions to mitigate climate change. This approach does not achieve a full understanding of value chains and their competitive priorities, limits consumer awareness, and poses risks of sub-optimal performance and under-development of potential local capacity.This paper presents a conceptual framework that combines value chain analysis and competitive priority theory with indicators suitable to measure, monitor and interpret sustainability and resource efficiency at value chain level. The case of biomass Combined Heat and Power (CHP) is used to illustrate how optimisation strategies can be focused to address challenges in value chain stages which will lead to better performance and uptake of sustainably sourced, widely accepted biomass options.

Highlights

Policy and industry decision makers place high priority on biomass as a significant resource for the emerging low carbon, circular economy
We apply value chain analysis to biomass production for bioenergy and biobased products accounting for a combination of metrics reflecting performance for resource efficiency, economic, environmental and social sustainability [10]
Biomass is considered a key component to meet targets in most policy and strategic documents dealing with low carbon and circular economy

Summary

Introduction

Policy and industry decision makers place high priority on biomass as a significant resource for the emerging low carbon, circular economy. We apply value chain analysis to biomass production for bioenergy and biobased products accounting for a combination of metrics reflecting performance for resource efficiency, economic, environmental and social sustainability [10] This is especially important because of the potential for these value chains to ameliorate many challenges economies face struggling to deal with their carbon budgets. The work presented here combines value chain analysis and competitive priority theory with consistent, performance based [21] indicators interpreting attributes that are important but challenging for both the establishment and operation of individual value chain stages. The first section describes the conceptual framework to develop optimisation strategies by using value chain analysis and competitive priority theory together with indicators that are fit to address challenges in the establishment and operation of biomass value chains. The actual quantification of the metrics of the indicators as well as any possible combination of indicators to be used depends largely on the availability and validity of transparent data sources

Conceptual framework

System design

Competitive priorities and indicators

Optimisation strategies with competitive priority indicators

The case study

Conclusions