Renewable chemical feedstock supply network design: The case of terpenes

Abstract

Designing supply networks enabled by renewable chemical feedstocks presents complexities in terms of undefined markets, multiple intermediate chemical compound options and uncertain chemical conversion pathways. This research addresses this gap by developing a structured approach for designing compound class defined supply chains (SCs) through involving the analysis of: (i) renewable chemical feedstock sources; (ii) alternative technology and processing options; (iii) intermediate or end-user markets; and (iv) commercial value and viability. In particular, we apply this approach on the promising case of terpenoid feedstocks. Further, in the specific case of terpenes we analyse renewable feedstock SC options for the production of ‘green’ pharmaceuticals demonstrated by a case study on paracetamol. To that end, evidence is obtained through collating the dispersed literature on renewable chemical feedstocks, by semi-structured interviews and through expert panel engagements involving industry and academic informants. The study findings inform about the systemic mapping and modelling of compound class defined material-processing-supply networks, further providing a basis to identify feasible intermediate and final product options. The research contributes to the operations management academic and practice literature by proposing a structured approach for mapping and designing renewable chemical feedstock SCs from a source material perspective, in this case renewable terpenoid feedstocks, in contrast to the traditional end-market applications. From a circular economy perspective, the use of renewable feedstocks in extended SCs demonstrates the utility of the approach by integrating supply side considerations (i.e. feedstock) with uncertainties of intermediate processing options and commercialisation routes.