Decentralized production concepts for bio-based polymers - implications for supply chains, costs, and the carbon footprint

Abstract

This paper presents a multi-dimensional evaluation of decentralized production networks based on modular production plants. The main objective of this evaluation is to examine the effects of different degrees of decentralization in production networks of the chemical industry. Using the production of a biopolymer as an example, the study includes strategic supply chain planning by agent-based simulations, economic evaluation by calculation of net present values and environmental assessment by calculation of carbon footprints. By allowing for dynamic reconfiguration of the decentralized networks over time, it is shown that mobile, modular plant concepts are beneficial to reduce supply chain expenses. Transportation efforts resulting from strategic supply chain planning are reduced by 40 % with increasing degree of decentralization. The profitability of the decentralized networks is dominated by the costs for the production processes themselves as capital and operational expenditures allocate to >50 % of the total costs. Product prices of 3000 to 5500 €2020 per ton are necessary to reach profitability of the decentralized production networks. Regarding the environmental assessment, the carbon footprint of the supply chain accounts for <3 % of the total emissions, which are dominated by the provision of process heat that accounts for 46 to 68 % of the total emissions. Carbon footprint of the decentral production networks can be significantly reduced by a systematic electrification of 90 % of the process heat demand.