Abstract
<p>Sustainable development of the cellulosic biofuel sector will require biomass supply strategies that can minimize the cost of cellulosic biomass. While the conversion cost of cellulosic biofuel has come down significantly in the last decade, there has not been as significant change in biomass cost. Several studies have provided optimization models for minimizing biomass cost. However, most of the existing models have focused on a modelling approach to optimize a single component of biomass cost, using an integrated biomass transportation model. While separate studies have provided a model on farmer supply response that includes farmer participation and the incentives offered by biorefineries. However, there is a gap in understanding the linkage between transport cost, farmer participation and farmer incentives on biomass cost. As a result most optimization models available in literature are focused on reducing biomass transport cost. This study shows that a strong linkage exists between biomass transport cost and incentives offered to farmers. A holistic biomass supply model is developed that incorporates an integrated biomass transportation model, as well as the relationship between farmer incentives and farmer participation using data from some recent surveys. The holistic model enables a trade-off between increase in incentives and reduction in transport cost. This will help companies develop sustainable long term supply contracts between biorefineries and farmers. The study shows that biorefineries that focus on minimizing biomass cost through optimization of transport cost alone, without considering its relationships with farmer supply response will incur 15 to 20% higher biomass cost.</p>
Highlights
Bioenergy has attracted increasing investments and support in last decade, as a result of growing emphasis towards energy security (Percebois, 2007), and reduction in greenhouse gas (Macedo, Seabra, & Silva, 2008)
Biorefineries and farmers venturing into the cellulosic biofuel industry will require supply chain design that minimizes biomass cost
Other studies have provided the intricate relationship between farmer participation and the incentive offered for this biomass
Summary
Bioenergy has attracted increasing investments and support in last decade, as a result of growing emphasis towards energy security (Percebois, 2007), and reduction in greenhouse gas (Macedo, Seabra, & Silva, 2008). Unlike corn grain that is stored and transported over a long distance economically (Attavanich et al, 2013), long distance transportation of biomass is not yet considered feasible (Axelsson et al, 2012; Jenkins et al, 1998; Preto, 2007; Marvin et al, 2012), and large scale biomass storage over a long time period is a challenge (Rentizelas, Tolis, & Tatsiopoulos, 2009) These supply chain constraints coupled with variation in biomass supply will require biorefineries to develop supply chain strategies that minimize biomass cost through a holistic evaluation of trade-offs. Through this study a holistic biomass supply model is developed that incorporates an integrated biomass transportation model, as well as the relationship between farmer incentives and farmer participation using data from some recent surveys (Louis, 2001; Tyndall, Berg, & Colletti, 2011; Thompson & Tyner, 2014). While the model developed through this study is focused on agricultural waste (corn stover), the theoretical framework is applicable to other sources of agricultural waste based biomass
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