Economic and environmental optimization for a biogas supply Chain: A CVaR approach applied to uncertainty of biomass and biogas demand

Abstract

This paper explores the impact of biomass availability and biogas demand on the economic and environmental performance of a biogas supply chain. A mixed-integer nonlinear programming model is proposed in a multi-objective form, then the problem is reformulated as a single objective problem with a multi-scenario strategy solution and a CVaR approach. The uncertainty associated with biomass availability and biogas demand is obtained from historical data of the central-western region of Mexico. Two case studies are presented to show the applicability of the proposed mathematical model to minimize the criteria gap in economic and environmental functions and to obtain cumulative probability graphs. The results showed that it is possible to minimize the gap between the objective functions, aiding the decision-making process. The average annual profit is at least 1,740,600 € with annual emissions of 292,440 tons of CO2.