Decision support system integrating GIS with simulation and optimisation for a biofuel supply chain

A range of economic and societal issues has resulted from fossil fuel consumption in the transportation sector in the U.S. These include health related air pollution, climate change, dependence on imported oil, and other oil related national security concerns. Biofuels production from various lignocellulosic biomass types, such as wood, forest residues, and agriculture residues, have the potential to replace a portion of the total fossil fuel consumption. This study focused on locating biofuel facilities and designing the biofuel supply chain to minimise the overall cost. For this purpose, an integrated methodology was proposed by combining the Geographic Information System technology with simulation and optimisation modelling methods. The GIS-based method was used as a precursor for selecting biofuel facility locations by employing a series of decision factors. The identified candidate sites for biofuel production served as inputs for simulation and optimisation modelling. The simulation/optimisation model and identified locations provided an integrated decision support system for decision makers to determine the optimal cost, energy consumption, and emissions for candidate locations. This novel methodology development extends prior research.     

A GIS-based method for identifying the optimal location for a facility to convert forest biomass to biofuel

There is growing interest in the production of biofuels from woody biomass. Critical to the financial success of producing biofuel is identifying the optimal location for the facility. The location decision is especially important for woody biomass feedstock owing to the distributed nature of biomass and the significant costs associated with transportation. This study introduces a two-stage methodology to identify the best location for biofuel production based on multiple attributes. Stage I uses a Geographic Information System approach to identify feasible biofuel facility locations. The approach employs county boundaries, a county-based pulpwood distribution, a population census, city and village distributions, and railroad and state/federal road transportation networks. In Stage II, the preferred location is selected using a total transportation cost model. The methodology is applied to the Upper Peninsula of Michigan to locate a biofuel production facility. Through the application of the two-stage methodology, the best possible location for biofuel production was identified as the Village of L’anse in Baraga County. Also investigated are the sensitivity of transportation cost and the optimal site for biofuel production to changes in several key variables. These additional variables included fuel price, transportation distance, and pulpwood availability. By applying sensitivity analysis based on limited availability of feedstock, the City of Ishpeming emerged as another viable location for the production facility.     

Imported palm oil for biofuels in the EU: Profitability,greenhouse gas emissions and social welfare effects

We examine the social desirability of renewable diesel production from imported palm oil in the EU when greenhouse gas emissions are taken into account. Using a partial market equilibrium model, we also study the sectoral social welfare effects of a biofuel policy consisting of a blend mandate in a small EU country (Finland), when palm oil based diesel is used to meet the mandated quota for biofuels. We develop a market equilibrium model for three cases: i) no biofuel policy, ii) biofuel policy consisting of socially optimal emission-based biofuel tax credit and iii) actual EU biofuel policy. Our results for the EU biofuel market, Southeast Asia and Finland show very little evidence that a large scale use of imported palm oil in diesel production in the EU can be justified by lower greenhouse gas emission costs. Cuts in emission costs may justify extensive production only if low or negative land-use change emissions result from oil palm cultivation and if the estimated per unit social costs of emissions are high. In contrast, the actual biofuel policies in the EU encourage the production of palm oil based diesel. Our results indicate that the sectoral social welfare effects of the actual biofuel policy in Finland may be negative and that if emissions decrease under actual biofuel policy, the emission abatement costs can be high regardless of the land use change emissions.     

Beating back biofuel crop invasions: Guidelines on managing the invasive risk of biofuel developments

The risk of biofuel feedstock species becoming invasive, outcompeting native species and threatening livelihoods is increasing as more advanced crops are planted. However, such risk has so far received limited attention. Biofuel crops are not, by definition, invasive. However, they can become invasive, depending on the area where they are cultivated and how the crop is grown. Some plants do have a higher risk of causing a biological invasion if not managed with this in mind. The most important step is prevention. Extra precautions should be taken to minimise the risk. This paper presents guidelines developed by IUCN on biofuels and invasives for decision makers and biofuel producers to minimise risks of biological invasions along the biofuels supply chain, from planning, importation, production to transportation and processing. Overall, it is recommended to follow a precautionary approach, comply with relevant regulations and extend assessment and monitoring beyond the field.     

Energy-efficient pellet production in the forest industry—a study of obstacles and success factors

With an expanding market for upgraded biofuel in many countries, it is important to develop efficient production methods for upgrading wet biomass. The possibilities for heat recovery can be improved if the upgrading process is integrated with other energy-intensive processes, as for example a pulp mill or a sawmill, in a biofuel combine. This work evaluates obstacles and success factors for forming such biofuel combines with the forest industry. Case studies and calculations on theoretical cases have been used together with literature references to evaluate how a biofuel combine can be realised and to compile obstacles and success factors for a combine.It could be seen from the case studies that an excess of by-products and waste heat, together with an existing need for investments are important driving forces for the formation of biofuel combines in the forest industry. The market was also identified as an important factor, which can be both an obstacle and a success factor depending on the situation. It was concluded that the existence of a small-scale pellet market near the plant is important for economic feasibility when sawdust is used as raw material. The conditions for the biofuel combine are different depending on the form of ownership. When a pulp mill or sawmill owns the pellet factory, it was concluded that minimising the risk by using well-known technologies can be an important factor for the realisation of the combine.     

Where to produce rapeseed biodiesel and why? Mapping European rapeseed energy efficiency

Rapeseed is widely used to produce biodiesel, especially in Europe. In several studies, it has been shown that there is a good potential for growing this crop across the continent. However there is still little awareness that the energy efficiency of biofuel production from rapeseed is very low. Energy efficiency can be expressed in terms of Energy Return for Energy Invested (EROEI). We mapped EROEI values for all EU countries plus Switzerland based on expected yields derived from rapeseed suitability maps. We find that EU countries produce rapeseed biofuel with EROEI values of 2.2 and lower. We suggest that plans for biofuel cropping have to be supplemented by maps of EROEI. It is not only relevant to show where rapeseed can be grown, but we should also look at where its use for bioenergy can be efficient. In the area theoretically suitable for growing rainfed rapeseed (excluding unsuitable areas and water), 37.6% of the area can produce rape methyl ester (RME) biofuel only with an energy loss. We conclude that the energy efficiency of rapeseed biodiesel is low and spatially heterogeneous, and unless there are major technological improvements in the production process, replacing fossil fuels by biofuels from rapeseed is hardly a feasible option.     

Biofuels: Environment,technology and food security

The imminent decline of the world's oil production, its high market prices and environmental impacts have made the production of biofuels to reach unprecedent volumes over the last 10 years. This is why there have been intense debates among international organizations and political leaders in order to discuss the impacts of the biofuel use intensification.Besides assessing the causes of the rise in the demand and production of biofuels, this paper also shows the state of the art of their world's current production. It is also discussed different vegetable raw materials sources and technological paths to produce biofuels, as well as issues regarding production cost and the relation of their economic feasibility with oil international prices. The environmental impacts of programs that encourage biofuel production, farmland land requirements and the impacts on food production are also discussed, considering the life cycle analysis (LCA) as a tool.It is concluded that the rise in the use of biofuels is inevitable and that international cooperation, regulations and certification mechanisms must be established regarding the use of land, the mitigation of environmental and social impacts caused by biofuel production. It is also mandatory to establish appropriate working conditions and decent remuneration for workers of the biofuels production chain.     

Biofuel production: Challenges and opportunities

It is increasing clear that biofuels can be a viable source of renewable energy in contrast to the finite nature, geopolitical instability, and deleterious global effects of fossil fuel energy. Collectively, biofuels include any energy-enriched chemicals generated directly through the biological processes or derived from the chemical conversion from biomass of prior living organisms. Predominantly, biofuels are produced from photosynthetic organisms such as photosynthetic bacteria, micro- and macro-algae and vascular land plants. The primary products of biofuel may be in a gas, liquid, or solid form. These products can be further converted by biochemical, physical, and thermochemical methods. Biofuels can be classified into two categories: primary and secondary biofuels. The primary biofuels are directly produced from burning woody or cellulosic plant material and dry animal waste. The secondary biofuels can be classified into three generations that are each indirectly generated from plant and animal material. The first generation of biofuels is ethanol derived from food crops rich in starch or biodiesel taken from waste animal fats such as cooking grease. The second generation is bioethanol derived from non-food cellulosic biomass and biodiesel taken from oil-rich plant seed such as soybean or jatropha. The third generation is the biofuels generated from cyanobacterial, microalgae and other microbes, which is the most promising approach to meet the global energy demands. In this review, we present the recent progresses including challenges and opportunities in microbial biofuels production as well as the potential applications of microalgae as a platform of biomass production. Future research endeavors in biofuel production should be placed on the search of novel biofuel production species, optimization and improvement of culture conditions, genetic engineering of biofuel-producing species, complete understanding of the biofuel production mechanisms, and effective techniques for mass cultivation of microorganisms.     

Improving the environmental performance of biofuels with industrial symbiosis

In the production of biofuels for transport many critics have argued about the poor energy efficiency and environmental performance of the production industries. Optimism is thus set on the production of second generation biofuels, while first generation biofuels continue to dominate worldwide. Therefore it is interesting to consider how the environmental performance of first generation biofuel industries can be improved. The field of industrial symbiosis offers many possibilities for potential improvements in the biofuel industry and theories from this research field are used in this paper to highlight how environmental performance improvements can be accomplished. This comes in the form of by-product synergies and utility synergies which can improve material and energy handling. Furthermore, the processes and products can gain increased environmental performance improvements by the adaption of a renewable energy system which will act as a utility provider for many industries in a symbiotic network. By-products may thereafter be upcycled through biogas production processes to generate both energy and a bio-fertilizer. A case study of an actual biofuel industrial symbiosis is also reviewed to provide support for these theories.     

Biofuel market and carbon modeling to analyse French biofuel policy

In order to comply with European Union objectives, France has set up an ambitious biofuel plan. This plan is evaluated on the basis of two criteria: tax exemption on fossil fuels and greenhouse gases (GHG) emission savings. An economic marginal analysis and a life cycle assessment (LCA) are provided using a coupling procedure between a partial agro-industrial equilibrium model and an oil refining optimization model. Thus, we determine the minimum tax exemption needed to place on the market a targeted quantity of biofuel by deducting the biofuel long-run marginal revenue of refiners from the agro-industrial marginal cost of biofuel production. With a clear view of the refiner's economic choices, total pollutant emissions along the biofuel production chains are quantified and used to feed an LCA. The French biofuel plan is evaluated for 2008, 2010 and 2012 using prospective scenarios. Results suggest that biofuel competitiveness depends on crude oil prices and demand for petroleum products and consequently these parameters should be taken into account by authorities to modulate biofuel tax exemption. LCA results show that biofuel production and use, from “seed to wheel”, would facilitate the French Government's compliance with its “Plan Climat” objectives by reducing up to 5% GHG emissions in the French road transport sector by 2010.     

Waste and residue availability for advanced biofuel production in EU Member States

The EU is adopting policy measures to promote the use of advanced biofuels for transport made from sustainable sources including wastes and residues. As Member States prepare to implement these policy changes, they will need to understand if they have sufficient resource to meet an advanced biofuel target. This study assesses the availability of agricultural residues, forestry residues, and biogenic wastes that could potentially be used for advanced biofuel production in EU Member States at the present and projected to 2020 and 2030. This analysis incorporates specific information on agricultural, forestry, and waste production, management practices, and environmental risks in each Member State in order to model the amounts of residues needed to preserve soil quality and that are utilized in other industries; we exclude these quantities in order to determine the sustainable biomass potential that can be achieved without significant adverse impacts on the environment or biomass markets. We find that most EU Member States are likely to have more than enough sustainably available feedstock to meet the advanced biofuel requirement, and a majority may have more than 10 times the necessary amount. While this study does not assess economic viability of advanced biofuel production, from a resource perspective, the target appears to be achievable in most Member States. Some countries, including Austria, Cyprus, Denmark, Estonia, Ireland, Luxembourg, Malta, and Slovenia, may need to import either feedstock or advanced biofuel from neighboring countries to meet the target.     

How does increased corn-ethanol production affect US natural gas prices?

In recent years, there has been a push to increase biofuel production in the United States. The biofuel of choice, so far, has been ethanol produced from corn. The effects of increased corn-ethanol production on the consumer prices of food and energy continue to be studied and debated. This study examines, in particular, the effects of increased corn-ethanol production on US natural gas prices. A structural model of the natural gas market is developed and estimated using two stage least squares. A baseline projection for the period 2007–2018 is determined, and two scenarios are simulated. In the first scenario, current biofuel policies including EISA mandates, tariffs, and tax credits are removed. In the second scenario, we hold ethanol production to the level required only for largely obligatory additive use. The results indicate that the increased level of corn-ethanol production occurring as a result of the current US biofuel policies may lead to natural gas prices that are as much as 0.25% higher, on average, than if no biofuel policies were in place. A similar comparison between the baseline and second scenario indicates natural gas prices could be as much as 0.5% higher, on average, for the same period.     

Impacts of a United States’ biofuel policy on New Zealand's agricultural sector

The rise in oil prices has spurred interest in biofuels. Policies in the United States like the renewable fuel standard (RFS) have led to an expansion of ethanol production, while the New Zealand government has mandated a minimum level of biofuel sales.The research used a partial equilibrium model of international trade to quantify the price and farmgate income effects of the US RFS policy. The goal was to examine the competition between food and biofuel production and to quantify the impact of the policy on the agricultural sector in New Zealand.The RFS policy has a significant impact on corn prices, but a small effect on livestock prices and production. There thus appears to be little conflict between food and fuel uses for corn at the level of the RFS mandate. New Zealand's pasture-based livestock sector benefits from the use of corn for ethanol production: it receives better prices for its products, but does not face the same input cost increases as competitors. The results suggest that New Zealand faces an interesting decision: it could support investment in biofuels research, or benefit from the biofuels boom through the indirect impacts on demand and prices for meat and milk.     

Black liquor gasification—consequences for both industry and society

The pulp and paper industry consumes large quantities of biofuels to satisfy process requirements. Biomass is however a limited resource, to be used as effectively as possible. Modern pulping operations have excess internal fuels compared to the amounts needed to satisfy process steam demands. The excess fuel is often used for cogeneration of electric power. If market biofuel availability at a reasonable price is limited, import/export to/from a mill however changes the amount of such biofuel available for alternative users. This work compares different mill powerhouse technologies and CHP plant configurations (including conventional recovery boiler technology and black liquor gasification technology) with respect to electric power output from a given fuel resource. Different process steam demand levels for different representative mill types are considered. The comparison accounts for decreased/increased electricity production in an alternative energy system when biofuel is imported/exported to/from the mill. The results show that black liquor gasification is in all cases considered an attractive powerhouse recovery cycle technology. For moderate values of the marginal electric power generation efficiency for biofuel exported to the reference alternative energy system, excess mill internal biofuel should be used on mill site for gas turbine based CHP power generation. The remaining excess biofuels in market pulp mills should be exported and used in the reference alternative energy system in this case. For integrated pulp and paper mills, biofuel should be imported, but only for cogeneration usage (i.e. condensing power units should be avoided). If biofuel can be used elsewhere for high efficiency CHP power generation, mill internal biofuel should be used exclusively for process heating, and the remainder should be exported.     

From water to energy: The virtual water content and water footprint of biofuel consumption in Spain

Energy diversification and the use of renewable energy sources are key points in the European energy strategy. Biofuels are the most popular renewable resource option for the transport sector, and the European Union has established objectives that the Member States must adopt and implement. However, biofuel production at such a scale requires a considerable amount of water resources, and this water–energy nexus is rarely taken into account. This paper shows the strong nexus between water and energy in biofuel production and estimates the virtual water (VW) content and the water footprint (WF) from the raw material production that will be needed to reach the Spanish targets for biofuel consumption by 2010. The results show how the impact of such targets on the global and local water situation could be reduced through virtual water imports and, at the same time, how these imports could increase Spain’s water and energy dependence. Hence, in order to manage water from an integral perspective of the territory, the inclusion of biofuel consumption objectives should go hand in hand with measures to reduce the demand of energy in the transport sector.     

Global land-use implications of first and second generation biofuel targets

Recently, an active debate has emerged around greenhouse gas emissions due to indirect land use change (iLUC) of expanding agricultural areas dedicated to biofuel production. In this paper we provide a detailed analysis of the iLUC effect, and further address the issues of deforestation, irrigation water use, and crop price increases due to expanding biofuel acreage. We use GLOBIOM – an economic partial equilibrium model of the global forest, agriculture, and biomass sectors with a bottom-up representation of agricultural and forestry management practices. The results indicate that second generation biofuel production fed by wood from sustainably managed existing forests would lead to a negative iLUC factor, meaning that overall emissions are 27% lower compared to the “No biofuel” scenario by 2030. The iLUC factor of first generation biofuels global expansion is generally positive, requiring some 25 years to be paid back by the GHG savings from the substitution of biofuels for conventional fuels. Second generation biofuels perform better also with respect to the other investigated criteria; on the condition that they are not sourced from dedicated plantations directly competing for agricultural land. If so, then efficient first generation systems are preferable. Since no clear technology champion for all situations exists, we would recommend targeting policy instruments directly at the positive and negative effects of biofuel production rather than at the production itself.     

Optimal design of advanced drop-in hydrocarbon biofuel supply chain integrating with existing petroleum refineries under uncertainty

This paper addresses the optimal design of an advanced hydrocarbon biofuel supply chain integrated with existing petroleum refineries. Three major insertion points from the biofuel supply chain to the petroleum refineries are investigated and analyzed, including bio-intermediates co-processed with crude oil, bio-intermediates co-processed with refinery intermediates, and finished biofuels blended with conventional petroleum products. A multiperiod, mixed-integer linear programming model is proposed that accounts for diverse conversion pathway, technology, and insertion point selections, biomass seasonality, geographical diversity, biomass degradation, demand distribution and government incentives. This model simultaneously optimizes the supply chain design, insertion point selection, and production planning. In addition, the conversion rate, operation cost associated with insertion points in petroleum refinery, as well as the biomass availability and product demand are modeled as fuzzy numbers to account for the data uncertainty. A fuzzy possibilistic programming approach is applied to this model, where possibility, necessity and credibility measures are adopted according to the decision makers' preference. This model is illustrated by the county level case study of Illinois. Compared to traditional biofuel supply chains, advanced hydrocarbon biofuel supply chain integrating with existing petroleum refinery infrastructure significantly reduces capital cost and total annualized cost.     

Biomass energy in Vojvodina: Market conditions,environment and food security

In this study, the policy, market conditions and food security of biomass energy sources are assessed for supplying the future needs of Vojvodina. The Autonomous Province of Vojvodina is an autonomous province in Serbia, containing about 27% of its total population according to the 2002 Census. It is located in the northern part of the country, in the Pannonia plain, in southeastern Europe.Vojvodina is an energy-deficient province. Vojvodina also has a large potential for renewable energy, especially energy from biomass (biodiesel and bio-ethanol). The lack of knowledge about renewable energy technologies by most policy-makers, potential consumers, and energy firm managers has played against renewable energy developments. The environmental impacts of programs that encourage biofuel production, farmland land requirements and the impacts on food production are also discussed, considering the life cycle analysis (LCA) as a tool.It is concluded that the rise in the use of biofuels is inevitable and that international cooperation, regulations and certification mechanisms must be established regarding the use of land, the mitigation of environmental and social impacts caused by biofuel production. It is also mandatory to establish appropriate working conditions and decent remuneration for workers of the biofuels production chain.     

Sustainability of algal biofuel production using integrated renewable energy park (IREP) and algal biorefinery approach

Algal biomass can provide viable third generation feedstock for liquid transportation fuel. However, for a mature commercial industry to develop, sustainability as well as technological and economic issues pertinent to algal biofuel sector must be addressed first. This viewpoint focuses on three integrated approaches laid out to meet these challenges. Firstly, an integrated algal biorefinery for sequential biomass processing for multiple high-value products is delineated to bring in the financial sustainability to the algal biofuel production units. Secondly, an integrated renewable energy park (IREP) approach is proposed for amalgamating various renewable energy industries established in different locations. This would aid in synergistic and efficient electricity and liquid biofuel production with zero net carbon emissions while obviating numerous sustainability issues such as productive usage of agricultural land, water, and fossil fuel usage. A ‘renewable energy corridor’ rich in multiple energy sources needed for algal biofuel production for deploying IREPs in the United States is also illustrated. Finally, the integration of various industries with algal biofuel sector can bring a multitude of sustainable deliverables to society, such as renewable supply of cheap protein supplements, health products and aquafeed ingredients. The benefits, challenges, and policy needs of the IREP approach are also discussed.     

Is life cycle assessment (LCA) a suitable method for quantitative CO2 saving estimations? the impact of field input on the LCA results for a pure vegetable oil chain

The environmental and social sustainability of biofuel production and use is today the most critical issue for the development of support policies in this sector.The Life Cycle Assessment (LCA) methodology is commonly agreed as the main tool for the estimation of the impact of biofuel chains, even in quantitative terms. This is also reflected in the recently issued EU Directive (Renewable Energy Directive, RED) on the promotion of the use of energy from renewable sources. However, the results of Life Cycle Assessment works largely depend on the quality of the information given as input to the study, as also very recent research works started to investigate: in addition, the comparison of a large number of very different (technically, geographically, agronomically) biofuel chains, as some Life Cycle Assessments and reviews tried to do, is a very difficult task due to the extremely large number of variable conditions and parameters. This paper, by considering a very specific biofuel chain (production and use of Pure/Straight Sunflower Oil in North-Central Italy), discuss some limits and constraints of the application of the LCA method. The work investigated within which boundaries Life Cycle Assessment could be implemented to perform quantitative assessments, as requested by the current supporting policies in the biofuel area. Results showed very large variations in the calculation of the CO₂ equivalent emissions, thus illustrating how achievable results depends on the local agricultural practices and performances, even for such a small and well defined biofuel chain. The adoption of the present standardized Life Cycle Assessment approach for generalized evaluations in the bioenergy sector and, in particular, for quantitative assessments should therefore be reconsidered. Concluding, LCA studies, even while addressing very specific and well defined chains, should always provide the bias of the calculations, as this range of variation of Life Cycle Assessment results could be significantly greater than the initially set quantitative targets and therefore the whole investigation would be at risks of inconsistency. Proposals are finally given for small scale projects, with the aim of developing sound but realistic processes to assess biofuel sustainability.