Design and planning of the forest biomass supply chain for producing bioenergy and biofuels

Abstract

This study addresses the challenges within the supply chain (SC) of forest biomass for conversion into bioenergy and/or biofuels, considering not only the by-products obtained from primary wood processing but also the establishment of energy woody crops as sources of raw materials. A mixed-integer linear programming (MILP) model is proposed to support decision-making in the design and strategic planning of SC operations. The optimization model encompasses decisions related to forest planning, biomass collection and transportation, its conversion into bioenergy and/or biofuels, the sale of electrical and thermal energy—including self-supply when applicable—and the distribution of pellets to markets. The objective is to maximize the Net Present Value (NPV) over a 20-year planning horizon. The optimization tool is applied to a case study that considers the infrastructure associated with the forestry-industrial activities in the province of Entre Ríos.