Optimal Cellulosic Biomass Contracting with Multiple Feedstocks and Locations, and Multi-Modal Transport

Abstract

Biorefineries are keen to design optimal biomass supply chains to minimize production, harvest, transport, and other costs. Such a design problem is challenging with the availability of multiple feedstocks (agricultural residues, perennials such as energy crops, short rotation woody crops), sourced from multiple harvest sheds, and transported across multiple modes (trucks, rails, and barges). This paper presents a multi-period optimization model to analyze the feasibility of collection from multiple harvest sheds. The results are demonstrated for a case study location in Alpena, MI served by truck and water transport. The model results suggest that: i) perennial biomass with higher yields would be preferred due to higher biomass production per unit area; ii) transport from farther locations are warranted only if the biomass production costs in the farther harvest sheds are cheaper by 20% - 30% compared to the adjacent harvest shed; and iii) the local situations of a biorefinery—characterized by the parametric inputs in the model—play a key role in determining the optimal feedstock composition across multiple harvest sheds. The results also support long term contracts associated with high yielding perennial feedstocks such as energy crops and short rotation woody crops.