Abstract
Bioenergy is one of the alternatives to secure energy demand, despite increasing debate on the sustainability of using bioenergy as a renewable source. As the source is disseminated over a large area and affected by seasonality, the potential benefit is highly dependent on other cost and benefit trade-offs along the supply chain. This review paper aims to assess operational management research methods used in biofuel supply chain planning, including both upstream production and international downstream trading. There have been considerable operational management studies done on upstream processes in biofuel production based on different strategic and tactical decision making of a single or multiple feedstocks, considering economic and environmental factor. However, the environmental consideration is often limited to carbon emission where the other environmental impact such as land-use change, biodiversity loss, irrigation and fertilisation are often being overlooked. Biofuel supply chain and trading at international level remain as an apparent research potential where only limited numbers of global energy models explicitly simulate international bioenergy trade. The leading biofuel producing countries in Southeast Asia: Malaysia, Indonesia and Thailand, are selected as a case study to investigate further on how the supply chain management model could be applied considering the existing biofuel support policies. This study is expected to contribute to the selection of operational management research methods used for decision making under robust policy context, followed by several recommendations.
Highlights
Introduction and Problem StatementThe International Energy Agency (IEA) reported [1] that biofuel production for the transportation sector needs to triple by 2030 to 280 Mtoe to be on track with the Sustainable Development Scenario (SDS)
This paper aims to first review the existing operational methods used to optimise the bioenergy supply chain, from upstream decision-making operational management optimisation model to downstream bioenergy trade model; followed by a review on biofuel policy in ASEAN countries and challenges faced when implementing the policy
This study reviewed the operational research methods used in biofuel supply chain planning
Summary
The International Energy Agency (IEA) reported [1] that biofuel production for the transportation sector needs to triple by 2030 to 280 Mtoe to be on track with the Sustainable Development Scenario (SDS). This is equivalent to 10% of the global transport fuel demand, as compared to 3% global demand [1]. Among the six countries/regions presented, China and ASEAN are among those with production growth that will possibly meet required biofuel production by 2030 under. Significant development of new ethanol production capacity is Energies 2020, 13, 1799; doi:10.3390/en13071799 www.mdpi.com/journal/energies
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