Optimization of biofuel supply chain integrated with petroleum refineries under carbon trade policy

doi:10.1007/s11705-024-2397-1

Front. Chem. Sci. Eng.

2024, Vol. 18

Issue (3) : 34 https://doi.org/10.1007/s11705-024-2397-1

Optimization of biofuel supply chain integrated with petroleum refineries under carbon trade policy

Wenhui Zhang¹, Yiqing Luo^1,²(

), Xigang Yuan^1,²

¹. Chemical Engineering Research Center, School of Chemical Engineering and Technology, Tianjin University, Tianjin 300350, China
². State Key Laboratory of Chemical Engineering, Tianjin University, Tianjin 300350, China

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Abstract

The use of fossil fuels results in significant carbon dioxide emissions. Biofuels have been increasingly adopted as sustainable alternatives to fossil fuel to address this environmental issue. Integrating petroleum refineries into biofuel supply chains is an effective approach to mitigating greenhouse gas emissions and improving environmental sustainability. In this study, an integrated supply chain optimization framework was established, considering the carbon trade policy. In addition, a mixed-integer nonlinear programming model was developed to optimize the selection of biomass suppliers, construction of pretreatment plants and biorefineries, integration of petroleum refineries, and selection of transportation routes with the objective of minimizing the total annual cost. An example is presented to illustrate the applicability of the model. The optimization results show that integrating petroleum refineries into biofuel supply chains effectively mitigates carbon emissions. Carbon trade policies can have a direct impact on the total annual cost and carbon emissions of the supply chain.

Keywords renewable energy biofuel supply chain carbon trade policy

Corresponding Author(s): Yiqing Luo

Just Accepted Date: 28 December 2023 Issue Date: 15 March 2024

Cite this article:

Wenhui Zhang,Yiqing Luo,Xigang Yuan. Optimization of biofuel supply chain integrated with petroleum refineries under carbon trade policy[J]. Front. Chem. Sci. Eng., 2024, 18(3): 34.

URL:

https://academic.hep.com.cn/fcse/EN/10.1007/s11705-024-2397-1
https://academic.hep.com.cn/fcse/EN/Y2024/V18/I3/34

Fig.1 Superstructure of supply chain.

Tab.1 Biomass distribution of each county in Illinois (Yield/acre).

Fig.2 Potential location of biomass suppliers, pretreatment plants, biorefineries and alternative petroleum refineries.

Fig.3 Optimal results (a) with and (b) without carbon trade policy consideration.

Fig.4 Supply chain network structure optimized with carbon trade policy consideration.

Fig.5 Supply chain network structure optimized without carbon trade policy consideration.

Tab.2 Costs and carbon emission results of supply chains with and without carbon trade policy consideration

Fig.6 Supply chain structure at a carbon price of $3.

Fig.7 Supply chain structure at a carbon price of $15.

Fig.8 Impact of spare capacity of petroleum refinery on costs.

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