Abstract

The diversification and optimization of the fuel portfolio for the transportation sector in Iran are subject to evaluation of a variety of alternative fuels. Currently, fossil fuels, especially gasoline, have the greatest share in supplying the light-duty vehicles’ fuel demand in Iran; this has led to numerous environmentally and strategically unfavorable consequences. Through a multi-criteria approach, this paper evaluates various alternative fuels for light-duty vehicles in Iran, considering a midterm horizon. For this purpose, eight different alternative fuels with both fossil and renewable bases were evaluated: compressed natural gas, liquid petroleum gas, petroleum diesel, biodiesel, biogas, two mixtures of ethanol and methanol with gasoline called E85 and M85, and hydrogen. A comprehensive literature review was performed and the key metrics of cost-, technical-, social- and policy-related aspects were identified. Each alternative was scored against the aforementioned criteria in six alternative scenarios, including one base scenario and five scenarios with different weight settings of criteria. The results showed that compressed natural gas and liquid petroleum gas are the most suitable alternative fuels for light-duty vehicles in Iran, and that biogas has the highest priority, as compared with other alternative renewable fuels.

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