Publication detail

Techno-economic analysis for biomass supply chain: A state-of-the-art review

LO, S. HOW, B. LEONG, W. TENG, S. RHAMDHANI, M. SUNARSO, J.

English title

Techno-economic analysis for biomass supply chain: A state-of-the-art review

Type

journal article in Web of Science

Language

en

Original abstract

Given the increasing risk of climate change and depletion of non-renewable energy sources, countries around the world have been looking into energy profile diversification whereby biomass represents one of the most appealing alternatives for energy production feedstock. To attract interest and more investment from industry players into biomass-based industries, comprehensive techno-economic analysis has to be performed. In addition, various uncertainties related to supply chain such as biomass attainability, demand variation, and material price fluctuation, have to be considered in the evaluation to yield more accurate and reliable feasibility estimation. This review paper aims to: (i) provide an overview on the different types of methods or approaches used in the feasibility evaluation of biomass-based industries from the techno-economic point of view, and (ii) outline the supply chain uncertainties that should be incorporated into the evaluation model using a Malaysian case study to illustrate the impact of these uncertainties. Apart from that, some of the unquantifiable uncertainties and risks are critically reviewed in this paper. It was found that 78 % of the reviewed articles opted for mathematical modelling evaluation method with the majority leaning towards mathematical modelling with optimization (i.e., deterministic and stochastic optimization). Furthermore, only a minority had performed stochastic evaluation that incorporates biomass supply chain uncertainties. This review discussed six quantifiable uncertainties, include: (i) biomass availability, (ii) biomass quality, (iii) transportation cost, (iv) market demand, (v) fluctuation of pricing, and (vi) wages of workers.

English abstract

Given the increasing risk of climate change and depletion of non-renewable energy sources, countries around the world have been looking into energy profile diversification whereby biomass represents one of the most appealing alternatives for energy production feedstock. To attract interest and more investment from industry players into biomass-based industries, comprehensive techno-economic analysis has to be performed. In addition, various uncertainties related to supply chain such as biomass attainability, demand variation, and material price fluctuation, have to be considered in the evaluation to yield more accurate and reliable feasibility estimation. This review paper aims to: (i) provide an overview on the different types of methods or approaches used in the feasibility evaluation of biomass-based industries from the techno-economic point of view, and (ii) outline the supply chain uncertainties that should be incorporated into the evaluation model using a Malaysian case study to illustrate the impact of these uncertainties. Apart from that, some of the unquantifiable uncertainties and risks are critically reviewed in this paper. It was found that 78 % of the reviewed articles opted for mathematical modelling evaluation method with the majority leaning towards mathematical modelling with optimization (i.e., deterministic and stochastic optimization). Furthermore, only a minority had performed stochastic evaluation that incorporates biomass supply chain uncertainties. This review discussed six quantifiable uncertainties, include: (i) biomass availability, (ii) biomass quality, (iii) transportation cost, (iv) market demand, (v) fluctuation of pricing, and (vi) wages of workers.

Keywords in English

Biomass properties; Optimization; Supply chain risks; Supply chain uncertainties; Bioenergy

Released

01.01.2021

Publisher

PERGAMON-ELSEVIER SCIENCE LTD

Location

OXFORD

ISSN

1364-0321

Volume

135

Number

1

Pages from–to

110164-1–110164-19

Pages count

19

BIBTEX


@article{BUT177015,
  author="Shirleen Lee Yuen {Lo} and Bing Shen {How} and Wei Dong {Leong} and Sin Yong {Teng} and Muhammad Akbar {Rhamdhani} and Jaka {Sunarso},
  title="Techno-economic analysis for biomass supply chain: A state-of-the-art review",
  year="2021",
  volume="135",
  number="1",
  month="January",
  pages="110164-1--110164-19",
  publisher="PERGAMON-ELSEVIER SCIENCE LTD",
  address="OXFORD",
  issn="1364-0321"
}