Supply chain model to assess the feasibility of incorporating a terminal between forests and biorefineries

Abstract

This study examines the advantages of incorporating a terminal for forest biomass in an advanced biofuels supply chain network. Forest biomass as a feedstock is non-uniform, voluminous and high in moisture content (MC). This leads to inefficiencies during transportation and energy conversion process, posing a challenge for supply chains to remain profitable. The problem is exacerbated by seasonality in both supply and demand. A terminal in the biomass feedstock supply chain could help overcome these challenges, but adds a significant cost. A novel multi-period mixed-integer programming (MIP) model capable of taking into consideration biomass quality, seasonality, and weather related supply restrictions was developed. The model was applied in a case study to assess the benefits of incorporating a terminal in the supply chain. It was demonstrated that a terminal allowed delivery of feedstock 4–11% lower in MC, while reducing procurement costs by 11–32%. The benefits reported are sensitive to transportation and operating costs. The proposed model will serve as a valuable tool for practitioners to design supply chains, and assess the feasibility of using forest biomass for sustainable biofuels production.