This document summarizes the methodology, results, and conclusions of a study analyzing the design of an optimized supply chain and production model for biofuel production in India. The study generated distance matrices to determine suitable sites for storage centers and plants. It analyzed the capital and operating costs of biofuel production facilities at different scales to determine economies of scale. The optimization model formulated minimized total costs and determined the lowest cost configuration for feedstock collection, preprocessing, transportation, and production. Sensitivity analysis was performed to evaluate the impact of variations in input parameters.

1. The design of a supply chain and
operation optimization model for
biofuel production in India
Yan Yan
2019 April 25th
Page 1

2. Methodology
Page 2

3. 1. Generation of distance matrices
Page 3
Biomass
availability
Road
network
Population/
demand
Suitable
sites for
storage
centers
Suitable
sites for
plants

4. 2. Cost of technology
Page 4

5. Capital cost breakdown
Page 5

6. Economy of scale
Page 6

7. 3. Model formulation
Page 7

8. Optimization results
Page 8
Cost ($M)
Feedstock cost (Cs) 2.49
Collection cost (Cc) 6.54
Annualized ransportation cost
(Ct)
3.2
Preprocessing and storage cost
(Cs)
2.5
Annualized plant capital cost
(Cp,c)
13.7
Plant annual operation cost
(Cp,o)
8.4
80 MW bioSNG plant

9. Cost breakdown
Page 9

10. Well-to-household analysis
Procedures Emission Intensity
(gCO2e/MJ
bioSNG)
Total (ton CO2e)
Pre-processing
electricity
4.34 10900
Transportation 0.65 1647
Plant Electricity 10.43 26434
RME
combustion
1.3 3290
Gas compression
into pipeline
1.65 4176
Household usage 63 159460

11. Comparative environmental
impact
Page 11

12. Domestic natural gas price
projection in India
Page 12

13. Levelized cost of gas based on
NPV
Page 13

14. Sensitivity analysis
Page 14