Multi-objective Optimisation Incorporating Life Cycle Assessment: A Case Study of Biofuels Supply Chain Design

Abstract

This chapter describes how to optimise energy systems considering their economic and environmental performance simultaneously. To this end, we follow an approach that combines life cycle assessment with multi-objective optimisation. We illustrate how to apply such a framework to the strategic design and planning of biofuel supply chains. The problem is formulated in mathematical terms as a multi-objective mixed-integer linear programme. The aim of the design/planning task is to maximise the net present value while the environmental impact is minimised simultaneously. Eco-indicator 99 is the life cycle assessment methodology incorporated in the model to quantify the environmental damage. The implementation of the algorithm in a case study based on the Argentine industry reveals the conflictive trade-off between economic and environmental objectives. The proposed framework provides valuable insight into the incidence of key operational features in the optimal biofuel supply chain network.