Life cycle optimization of the supply chain for biobased chemicals with local biomass resources

Abstract

Developing a biobased chemical industry that copes with the current environmental challenges relies on understanding the influence of the different stages of the value chain on economic and environmental performance. This paper investigates the use of a life cycle optimization framework to assess trade-offs between environmental and economic criteria for designing supply chains for biobased polyethylene terephthalate as a case study. A multi-objective optimization model was formulated to account for the environmental impacts (through life cycle assessment) and total costs (through life cycle costing) of the case study. High environmental priority (w = 0.9) in the design of the supply chain resulted in environmental gains (in 8 out of 9 midpoint indicators) with low increments (<10 %) of the total supply chain costs. The hotspot analysis supported identifying the stages (processing plants) of the supply chain where environmental and economic improvements are required. As the environmental priority increased, a rebound effect was evidenced where the mitigation of the environmental impact in different processing plants negatively affected the economic performance of other processing plants. Therefore, close collaboration with all value chain actors is required to achieve the most optimal configuration for supply chains of biobased polyethylene terephthalate.