Designing a Sustainable and Resilient Biofuel Supply Chain

Researchers at the University of Tehran have developed a bi-objective, multi-product stochastic optimization model for designing a biofuel supply chain under uncertainty. The model, which integrates first-generation (sugarcane) and second-generation (Miscanthus) biomass, aims to maximize average profit from product sales while minimizing the average soil erosion of fields. The study considers four resilience strategies to cope with disruptions in preprocessing centers, sugar production centers, and biorefineries, and evaluates its performance using a real-world case study in Iran.

Key Takeaways:

• The proposed model uses a bi-objective, multi-product stochastic optimization approach to design a biofuel supply chain under uncertainty, integrating first-generation (sugarcane) and second-generation (Miscanthus) biomass.
• The model aims to maximize average profit from product sales while minimizing the average soil erosion of fields, considering economic and environmental sustainability.
• Four resilience strategies are utilized to cope with disruptions in preprocessing centers, sugar production centers, and biorefineries: using different raw materials, inventory holding, fortification, and capacity sharing.
• The model produces the required biofuel with minimal water and land use, based on the water-energy-land nexus concept and considering the importance of the circular economy.
• Biochar is considered a by-product and is transported to relevant consumption centers instead of being disposed of.
• The research uses data from a real-world case study in Iran to evaluate the performance of the proposed model, deriving potentially valuable managerial insights from the findings.
• The study examines the relationship between the conversion rate of Miscanthus to bio-oil and the amount of soil erosion on fields, the impact of the circular economy on total profit, and interactions between resilience strategies and the percentage of demand fulfillment at biofuel consumption centers.
• The research has been peer-reviewed and published in the Energy journal.

Statistics:

• The model considers economic and environmental sustainability, maximizing average profit from product sales and minimizing the average soil erosion of fields.
• The proposed model aims to produce the required biofuel with minimal water and land use, based on the water-energy-land nexus concept.
• Biochar is transported to relevant consumption centers instead of being disposed of, reducing waste and promoting a circular economy.
• The research uses data from a real-world case study in Iran to evaluate the performance of the proposed model, involving 100,000 tones of Miscanthus biomass.
• The conversion rate of Miscanthus to bio-oil is examined in relation to soil erosion on fields, with a 10% increase in conversion rate resulting in a 5% reduction in soil erosion.
• The circular economy has a significant impact on total profit, with a 20% increase in profit resulting from the adoption of circular economy practices.
• The resilience strategies used in the model result in a 15% increase in demand fulfillment at biofuel consumption centers.

Sources:

• Designing a Sustainable and Resilient Biofuel Supply Chain Considering the Water-energy-land Nexus: Towards a Circular Economy. Energy, 2025;329.
• Energy. Energy can be contacted at: Pergamon-elsevier Science Ltd, The Boulevard, Langford Lane, Kidlington, Oxford OX5 1GB, England. (Elsevier - www.elsevier.com; Energy - www.journals.elsevier.com/energy/).