Supply, operational, and market risk reduction opportunities: Managing risk at a cellulosic biorefinery

Mamun, Saleh; Hansen, Jason K.; Roni, Mohammad Sadekuzzaman

doi:10.1016/j.rser.2019.109677

Title: Supply, operational, and market risk reduction opportunities: Managing risk at a cellulosic biorefinery

Journal Article · 02 January 2020 · Renewable and Sustainable Energy Reviews

DOI: https://doi.org/10.1016/j.rser.2019.109677 · OSTI ID:1603644

Mamun, Saleh ^[1];

^[2];

^[2]

Idaho National Lab. (INL), Idaho Falls, ID (United States); Univ. of New Mexico, Albuquerque, NM (United States)
Idaho National Lab. (INL), Idaho Falls, ID (United States)

This paper evaluates supply, operational- and market-risk reduction opportunities for the case where management at a cellulosic biorefinery adopts a supply chain design based on a distributed depot concept. In contrast to the conventional feedstock-supply system, a supply chain based on a network of depots providing feedstock to a biorefinery employs geographically distributed depots where feedstock undergoes preprocessing into densified pellets, thus allowing feedstock to be transported a greater distance. This study reported herein used simulation methods to show that distributed depots may work as a risk absorber for a cellulosic biorefinery. Compared to a base case, a distributed depot supply system reduced the operational and market risk by 17.5% and 5%, respectively. Moreover, when contract management and alternatives markets were considered, a reduction of supply, operational, and market risk, by approximately 48%, 69%, and 35%, respectively, were observed. The expected return on investment (ROI) increased from

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Research Organization:: Idaho National Lab. (INL), Idaho Falls, ID (United States); Idaho National Laboratory (INL), Idaho Falls, ID (United States)

Sponsoring Organization:: USDOE Office of Energy Efficiency and Renewable Energy (EERE)

Grant/Contract Number:: AC07-05ID14517; EE0007088

OSTI ID:: 1603644

Report Number(s):: DOE-ANTARES--07088-14; INL/CON--17-42774-Rev-0

Journal Information:: Renewable and Sustainable Energy Reviews, Journal Name: Renewable and Sustainable Energy Reviews Journal Issue: C Vol. 121; ISSN 1364-0321

Publisher:: ElsevierCopyright Statement

Country of Publication:: United States

Language:: English

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09 BIOMASS FUELS
54 ENVIRONMENTAL SCIENCES
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cellulosic biorefinery
risk analysis
risk management

Title: Supply, operational, and market risk reduction opportunities: Managing risk at a cellulosic biorefinery

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