Optimal plant size and feedstock supply radius: A modeling approach to minimize bioenergy production costs

Abstract Bioenergy production involves a series of interrelated activities associated with feedstock production and feedstock-to-energy conversion. Thus, decisions on bioenergy production and deployment should be based on the simultaneous consideration of the entire supply chain. Based on cost minimization of both feedstock production and energy conversion, we develop a generic framework for determining the optimal bioenergy conversion plant size, the corresponding feedstock supply radius, and bioenergy production costs. The theoretical framework elucidates the relationships among activities along the bioenergy supply chain, suggesting strategies for enhancing the cost competitiveness of bioenergy. Such relationships as well as applications of our theoretical model are further illustrated using cases of producing electricity and cellulosic ethanol from biomass.