(98f) Strategic Supply Chain Optimization for Bio-Jet Fuel Production in the Brazilian Sugarcane Industry

Brazil is a global leader in renewable energy and sustainability efforts. For example, in 2019, 44.1% of energy in Brazil came from renewable sources, compared to only 10.4% in the US [1]. Additionally, Brazil was one of the first countries to use biofuels for transportation due to multiple incentive programs the Brazilian government has supported since the 1970s [2]. They are currently the second-largest producer of the world’s bioethanol and the first-largest producer of bioethanol from sugarcane [3-4].

Biofuels, especially those produced at large scales, have gained increasing interest, specifically from the aviation industry. The aviation industry currently accounts for ~3% of global CO₂ emissions. Moreover, aviation cannot rely on common decarbonization solutions (e.g., electrification or hydrogen) in the short- to medium-term (2030-2050) as they require two or three decades of development and capital-intensive investments [5]. Bio-jet fuels appeal to aviation companies to reduce CO₂ emissions due to their economic feasibility and drop-in compatibility with existing aircraft and fuel systems [6]; however, several challenges currently hinder commercial-scale bio-jet fuel development. One notable challenge is underdeveloped biomass-to-bioenergy supply chains, which result in high biomass and bio-jet fuel costs [6-7].

Biofuel supply chains face many unique challenges, for example, time-sensitive storage and transportation from biomass degradation, supply uncertainties from biomass seasonality, and infrastructure incompatibilities [7-8]. Transportation limitations and infrastructure incompatibilities force biofuel supply chains (i.e., bioethanol) to rely on trucks, barges, or trains, which can be expensive and environmentally intensive at high volumes and long distances [8]. Furthermore, high transportation costs may offset the expected benefits of “economy of scale” [8]; thus, it is crucial to strategically design biofuel supply chains that balance transportation and capacity investment costs.

Bioethanol from sugarcane can be upgraded to bio-jet fuel via the ASTM-certified pathway alcohol-to-jet (ATJ) [5-8]. Brazil’s experience in renewable energy development, historical government support of biofuels, and existing biomass infrastructure create a unique opportunity for bio-jet fuel development.

In this work, we strategically design a supply chain model to optimize bio-jet fuel capacity distribution in Brazil to meet 10% of the country’s jet fuel demand with bio-jet fuel from sugarcane. Specifically, we proposed a mixed-integer linear programming (MILP) superstructure model to optimize the location of sugarcane mills that invest in bio-jet fuel capacity, assignment of airports to integrated biorefineries, and transportation links that connect sites across the supply chain network. The optimal supply chain network minimizes the cost of bio-jet fuel from sugarcane based on existing biomass infrastructure (sugarcane mill and airport locations), bio-jet fuel policy incentives, and market prices of sugar, ethanol, and jet fuel. Finally, we identify opportunities to quantify multi-objective trade-offs of costs and environmental impact with sensitivity studies to guide biofuel infrastructure and policy development.

References

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[4] López-Ortega, M. G., Guadalajara, Y., Junqueira, T. L., Sampaio, I. L., Bonomi, A., & Sánchez, A. (2021). Sustainability analysis of bioethanol production in Mexico by a retrofitted sugarcane industry based on the Brazilian expertise. Energy, 232, 121056.

[5] Dahal, K., Brynolf, S., Xisto, C., Hansson, J., Grahn, M., Grönstedt, T., & Lehtveer, M. (2021). Techno-economic review of alternative fuels and propulsion systems for the aviation sector. Renewable and Sustainable Energy Reviews, 151. https://doi.org/10.1016/j.rser.2021.111564

[6] Watson, M. J., Machado, P. G., da Silva, A. v., Saltar, Y., Ribeiro, C. O., Nascimento, C. A. O., & Dowling, A. W. (2024). Sustainable aviation fuel technologies, costs, emissions, policies, and markets: A critical review. Journal of Cleaner Production, 449. https://doi.org/10.1016/j.jclepro.2024.141472

[7] Doliente, S. S., Narayan, A., Tapia, J. F. D., Samsatli, N. J., Zhao, Y., & Samsatli, S. (2020). Bio-aviation Fuel: A Comprehensive Review and Analysis of the Supply Chain Components. Frontiers in Energy Research, 8. https://doi.org/10.3389/fenrg.2020.00110

[8] Yue, D., You, F., & Snyder, S. W. (2014). Biomass-to-bioenergy and biofuel supply chain optimization: Overview, key issues and challenges. Computers and Chemical Engineering, 66, 36–56. https://doi.org/10.1016/j.compchemeng.2013.11.016