Biomass waste-to-energy supply chain optimization with mobile production modules

Biomass waste is a naturally occurring agricultural byproduct. It is estimated that about 60 million tons per year can be extracted sustainably without altering land use patterns or competing with existing demands. Utilizing this waste is logistically challenging due to the inherent low density and distributed availability of biomass. This work proposes a supply chain optimization problem which decides where to locate and relocate mobile and modular production units to convert biomass waste to energy. Both deterministic and two-stage stochastic formulations are presented, accounting for the inherent uncertainty of where and how much biomass is produced. The framework is applied to case studies analyzing the states of Minnesota and North Carolina. Results from both states show that mobile production modules lead to supply chain cost savings of 1–4%, or millions of dollars per year. Additionally, this work demonstrates the benefit of mobile modules as a means of protecting against uncertainty.