(587ad) Optimal Production Strategy in Multiple Bio-Fuel and Bio-Energy From Biomass

This study focuses on the development of the production plan for bio-fuel and bio-energy obtained from biomass. The consumption of energy is raised noticeably around the world. The typical energy source so far is petroleum. Carbon dioxide emission from the refinery process has become a main cause against the environment. Alternative renewable energy sources are therefore suggested due to the environmental problems. The biomass is the one of the most promising candidates for the green industry and renewable energies. There is a growing interest and many technological advances being made in the process of converting biomass into bio-fuel and bio-energy. Each country has been trying to develop bio-fuel and bio-energy form biomass. Biomass can be converted into many different types of energy products. Examples of biomass conversion processes to useful energy products are: thermal conversion, chemical conversion, and biochemical conversion. Bio-products from biomass have multiful emerging technologies, various production yield, and overall profits considering different cost options. Final products from biomass are affected by the amount of sources being produced with the specific conversion ratio, the processing costs, the transportation costs, sale prices, and the demands. It is important to make an optimal production strategy. This paper addresses the model development of the production yield in about multiple products and presents how making a profit can be used efficiently in the production rate and yield through optimal strategies.

We propose an optimal production plan about a maximizing profit satisfying the minimum demand production in South Korea. Designing a processing production plan for multiple bio-products is critical to access and increase the production yield concerning biomass. It is necessary to make some scenarios for the optimal production strategy in order to get the greatest profits. The scenarios have to consider three factors. The first factor is that it has products yield in the process including the intermediate production. The second is required to invest costs while respecting the capital and operating due to influences on the final product’s price. The last is needed for the demand amount having its minimum standards. It is possible to develop a strategy considering this scenario having elements. There are three steps on how to make the plan for the production strategy. The first step makes the modified processes to have conversion ratios when biomass changes into bio-fuel and bio-energy because many biomass sources have respective production yields. The next step determines the prices and demands of the final products. The final step decides an optimal production strategy to maximize the overall profits while considering all of the possible bio-products from all types of biomass in South Korea. A Mixed Integer Linear Programming (MILP) model is suggested and a commercial software package (GAMS) is used for the test.

This study presents the approach to get an optimal production strategy of bio-energy and bio-fuel with the goal of the maximized profit by applying the different production yield, the operating cost, the capital cost, the transportation cost, the demands and the prices of many bio-fuels and bio-energies from various biomass sources. We have tested the proposed method in South Korea.