Research Highlights

Supply Chain Optimization of Hybrid Energy Systems

The locations of hybrid coal, biomass, and natural gas to liquid (CBGTL) plants are dependent on (i) the locations and availabilities of the three feedstocks, and (ii) the locations and amount of product demands. An optimal energy supply chain network that lays out the most strategic locations for the new CBGTL plants is obtained by solving a mixed integer linear optimization model. The aim of the work is to identify the discrete plant locations that fulfill the entire United States transportation fuel demands with a minimum overall cost, which includes (i) the investment costs of installing new plants, (ii) operational costs of the plants, and (iii) transportation costs of feedstock and product delivery.

The figure illustrates the inputs to the optimization model, namely (i) the discretization of each United States state into octants as candidate locations of new CBGTL plants, (ii) the availabilities and costs of coal, biomass, and natural gas feedstock obtained from government-based databases, and (iii) the amounts of transportation fuel demands.

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