Integrating biomass into energy supply chain networks

Abstract

During a period of transition towards decarbonised energy networks, maintaining a reliable and secure energy supply whilst increasing efficiency and reducing cost will be key aims for all energy supply chain (ESC) networks. Renewable energy sources, such as biomass, will play an important role in future ESCs as climate change mitigation becomes an increasingly important priority. This paper seeks to address these requirements by presenting an optimisation model for the design and planning of biomass integration into the ESC networks. A supply chain model was derived and the governing equations were solved using the General Algebraic Modelling System software (GAMS) to achieve an optimal solution. The results of the study indicate that a reduction in the emissions cost of up to 4.32% is achievable on integration of 5–8% of biomass into the ESC network. However, a 4.57% increase in the total cost of the ESC network was recorded at the biomass fraction in the mixed fuel of 7.9%, with the fixed assets cost having the largest impact on the total cost of the ESC network. It has been shown that the cost increment in the assets and operational costs of a biomass and coal co-fired combined heat and power plant can be offset by the cost reductions obtained from reduced carbon dioxide emissions. Economic arguments for dual-fuel plants, therefore, require the introduction of effective carbon pricing legislation. It is concluded that such policy implementations can be effective at mitigating the effects of climate change and would assist in achieving a global carbon neutral economy.