Strategic optimization of short-rotation woody crops for bioenergy production

Abstract

Given the increasing focus on renewable energy and the wood-based composites industry’s growth, the utilization of solid biomass has risen significantly over the past decade. Forestry and timber processing residues represent the primary and most cost-effective sources of solid biomass globally. However, alternative supply sources, such as short-rotation woody crops (SRWCs), are expected to play a larger role in biomass production, particularly on marginal lands unsuitable for food cultivation. This paper assesses the economic viability of biomass cultivation for bioenergy purposes by addressing the optimal design and planning of a biomass-to-bioenergy supply chain that considers feedstock sourced from both short-rotation coppices and logging and mill residues. We develop a novel mixed-integer linear programming model to facilitate strategic decisions regarding forest stand establishment and management, as well as the locations and capacities of bioenergy plants. The model determines the optimal timing for crop planting an harvesting, along with the optimal number, location, and size of bioconversion facilities, and the material flows between supply and demand locations. The applicability of the optimization model is demonstrated by solving a case study in the Mesopotamia Region of Argentina, which hosts the largest and most important forest-industry cluster in the country. A sensitivity analysis is conducted to evaluate the impact of various parameters on the optimal supply chain configuration. The results reveal a strong relationship between heat demand and idle capacity in a cogeneration plant, indicating that this factor affects project profitability more significantly than reductions in power prices.