(729f) Optimal Design of the Bio-Jet Fuel Supply Chain Under Uncertainty

Motivated by grand carbon neutrality, China is going through a systematic and in-depth energy revolution to achieve environmental protection and sustainable development. Needless to say, biomass is expected to play a key role[1]. China is the second largest aviation (jet fuel) market around the world. The production of jet fuels from renewable bioresources is a promising way for aviation industry to reduce the dependence on fossil and achieve the carbon emission reduction targets[2]. The development of bio-jet fuels is of great significance for achieving carbon neutrality.

The high level of uncertainty in feedstock availability, market fluctuations, and other factors make the bio-jet fuel industries face great challenges[3]. In order to improve the utilization efficiency of biorenewable energy and promote the rational allocation of biological resources, this work carries out a multi-period stochastic optimization framework for the bio-jet fuel supply chain network under multiple uncertainties relevant to feedstock supply, customer demand and price fluctuations with the maximum profit expectation. Via the tailored benders decomposition algorithm for the formulated large-scale mixed integer linear programming, the overall supply chain network structure and related operation decisions such as the location/scale, the type of production technology, the distribution relationship and distribution volume among each mode in the network and so on are revealed. Meanwhile, the result can provide the decision makers with appropriate balanced economic performance and robustness to uncertainties. Finally, effectiveness of the proposed framework is further investigated by sensitivity analysis of the key parameters in the optimization model.

References

[1] Yue, D., F. You and S. W. Snyder. Biomass-to-bioenergy and biofuel supply chain optimization: Overview, key issues and challenges. COMPUTERS & CHEMICAL ENGINEERING 66: 36-56. doi:10.1016/j.compchemeng.2013.11.016

[2] Tiwari, R., R. Mishra, A. Choubey, S. Kumar, A. E. Atabani, I. A. Badruddin and T. M. Y. Khan. Environmental and economic issues for renewable production of bio-jet fuel: A global prospective. FUEL 332. doi:10.1016/j.fuel.2022.125978

[3] Pannok, M., M. Finkbeiner, H. Fasel, J. Riese and S. Lier. Transformable Decentral Production for Local Economies with Minimized Carbon Footprint. CHEMBIOENG REVIEWS 7(6): 216-228. doi:10.1002/cben.202000008