Supply Chain Design and Management for Syngas Production

Abstract

The objective of this study is to develop an optimization model that aids the design and management of a logistics network for syngas production. The model identifies the optimal location of biogasification facilities and chipping terminals and the transportation cost of delivering wood chips from feedstock supply points to biogasification facilities so that the overall supply chain cost of producing syngas is minimized. We then extend the model to a case where both cost and carbon emissions are considered. We use the entire southeast region of the U.S. as the testing ground for this model and employ ArcGIS to visualize and validate the results from the optimization model. Numerical results show that the unit cost of syngas increases from $0.96 to $1.04/Nm3 and then eventually to $1.18/Nm3 if the operating mode of the biogasification facilities decreases from three to two and then one shift. Finally, a number of sensitivity analyses are performed which will help the decision makers to design a cost-effect...