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This paper considers the optimal incorporation of renewable ammonia production facilities into existing supply chain networks which import ammonia from conventional producers while accounting for uncertainty in this conventional ammonia price. We model the supply chain transition problem as a two-stage stochastic optimization problem which is formulated as a Mixed Integer Linear Programming problem. We apply the proposed approach to a case study on Minnesota's ammonia supply chain. We find that accounting for conventional price uncertainty leads to earlier incorporation of in-state renewable production sites in the supply chain network and a reduction in the quantity and cost of conventional ammonia imported over the supply chain transition horizon. These results show that local renewable ammonia production can act as a hedge against the volatility of the conventional ammonia market.
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Design and operation of modular biorefinery supply chain under uncertainty using generalized Benders decomposition
Abstract Biomass supply chain performance is heavily affected by uncertainties stemming from supply, demand, or unexpected disruptions. Unlike petrochemical plants that use crude oil, biorefineries often have to deal with the uneven spatial‐temporal distribution of feedstock supply. The modular production strategy provides more flexibility in chemical manufacturing by allowing fast capacity expansion and unit movement. However, modeling and optimizing modular biomass supply chain under uncertainties becomes challenging due to high dimensionality and the existence of discrete decisions. This work optimizes the multiperiod biomass supply chain using the rolling horizon planning and two‐stage stochastic programming framework. We then applied generalized Benders decomposition to reduce the computational complexity of the stochastic mixed integer nonlinear programming supply chain optimization. Furthermore, the solution of the stochastic programming could be used to quantitatively describe the life‐cycle assessment uncertainties of the biomass supply chain performance, demonstrating seasonality and random variability.
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- Award ID(s):
- 1934887
- PAR ID:
- 10542974
- Publisher / Repository:
- AlChE
- Date Published:
- Journal Name:
- AIChE Journal
- Volume:
- 70
- Issue:
- 8
- ISSN:
- 0001-1541
- Format(s):
- Medium: X
- Sponsoring Org:
- National Science Foundation
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- Free Publicly Accessible Full Text
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Accepted Manuscript
- Journal Article:
- https://doi.org/10.1002/aic.18458
