Optimal Design of a Sustainable Integrated Biodiesel/Diesel Supply Chain Using First and Second Generations Bioresources

Abstract

This study proposes an optimization model for strategic design of a sustainable Integrated Biodiesel/diesel Supply Chain (IBSC) using 1st & 2nd generations (1G & 2G) bioresources for biodiesel production such as sunflower and rapeseed; and waste cooking oil (WCO) and animal fats. The optimization model is formulated in terms of MILP providing all aspects of the sustainability – economic, environmental and social. The model takes into account key supply chain activities such as infrastructure compatibility, the demand distribution, the size and location of biorefineries for biodiesel production and the available biomass and carbon taxes. The economic and environmental performance of IBSC is assessed by the costs for IBSC design and Green House Gas (GHG) emissions of pollutants associated with its operation. As a social criterion, the number of expected new jobs associated with IBSC design and operation has been used. The approach is implemented on a Bulgarian scale with corresponding districts. The results obtained give the optimal biodiesel facilities locations, logistics design, inventory management, and information exchange. It is shown that for the case of the environmental criterion used, the average biodiesel price for the considered period (2016-2020) is 14 % higher and the total GHG emissions are 6.6 % lower than ones obtained when an economic criterion is used.