Pipeline sharing: Boosting multi-product pipeline transport biofuels in the shift to low-carbon energy

Abstract

Under the dual pressures of oil depletion and low carbon transition, biofuels are considered effective alternatives for fuel oil due to their renewable nature and environmental friendliness. However, oil demand remains high, which indicates that biofuels and fuel oil will coexist for a long time to come. While pipelines offer an efficient means of transporting liquid fuels, the initial investment required is substantial. Therefore, this paper proposes a comprehensive framework that focuses on sharing already existing multi-product pipelines with biofuels, thus evaluating the pipeline remaining potential to transport biofuels. The core component of this framework is the evaluation method for determining the multi-product pipeline remaining capacity. We coupled fuel oil consignment contracts into the remaining capacity evaluation method and developed a model for evaluating the multi-product pipeline transport biofuels potential, aiming to maximize biofuels pipeline transport volume. The objective of this model is to optimize the transportation volume of biofuels through pipelines. Various constraints are taken into account, such as product batch movement, prohibited sequences, operational constraints, delivery time frames, and inventory levels. Moreover, this study evaluates and discusses the benefits of biofuels transportation capacity using eight real-world multi-product pipeline systems without impacting fuel oil consignment contracts. The findings indicate that pipelines are capable of transporting 49,849 m3 of biofuels per week, increasing revenue by 1.78 million CNY. Simultaneously, the low energy consumption for pipeline transportation can lead to a weekly reduction of 34.6 tons in carbon emissions. The evaluation model anticipatively provides the ability to respond to future market developments.