The Supply Chain Design of Biomass Energy Plants: A Simulation Approach

Alternative energies nowadays have to be more competitive than energy derived from fossil fuels. In this study, the supply chain design problem for a biomass plant is considered. In order to reduce the cost per kWh of energy produced, the whole supply chain involving the biomass plant is modeled. A two-steps methodology, consisting in two sequential simulation experiments, is illustrated. The procedure allows to calculate the minimum total surface necessary for wheat production, and to find the size and the number of farms, which minimize the cost per kWh produced, varying different power rating of the plant. Given the general assumptions made, results can be utilized as a decision support tool for the supply chain design of biomass energy plants.