A supply chain network design model for biomass co-firing in coal-fired power plants

• Published in: Transportation research. Part E, Logistics and transportation review Vol. 61; pp. 115 - 134
• Main Authors: Roni, Md.S., Eksioglu, Sandra D., Searcy, Erin, Jha, Krishna
• Format: Journal Article
• Language: English
• Published: Exeter Elsevier India Pvt Ltd 01-01-2014; Elsevier Sequoia S.A
• Subjects: 09 BIOMASS FUELS; Biomass; Coal-fired power plants; Deliveries; Densified biomass; Hub-and-spoke network design; Integer programming; Network optimization; Numerical analysis; Rail transportation; Studies; Supply chain design; Supply chain management; Supply chains; Unit train; Hub-and-spoke network design; Densified biomass; Rail transportation; Supply chain design; Network optimization; Unit train
• ISSN: 1366-5545; 1878-5794
• DOI: 10.1016/j.tre.2013.10.007

•We design a hub-and-spoke in-bound distribution network for biomass delivery to coal plants.•Estimate in-bound logistics costs for biomass to cofiring coal plants.•Evaluate the role of truck and unit train shipments for delivering biomass to cofiring coal plants.
We propose a framework for designing the supply chain network for biomass co-firing in coal-fired power plants. This framework is inspired by existing practices with products with similar physical characteristics to biomass. We present a hub-and-spoke supply chain network design model for long-haul delivery of biomass. This model is a mixed integer linear program solved using benders decomposition algorithm. Numerical analysis indicates that 100milliontons of biomass are located within 75miles from a coal plant and could be delivered at $8.53/dry-ton; 60milliontons of biomass are located beyond 75miles and could be delivered at $36/dry-ton.