A supply chain network design model for biomass co-firing in coal-fired power plants

• We design a hub-and-spoke in-bound distribution network for biomass delivery to coal plants.
• Estimate in-bound logistics costs for biomass to cofiring coal plants.
• Evaluate the role of truck and unit train shipments for delivering biomass to cofiring coal plants.

We propose a framework for designing the supply chain network for biomass co-firing in coal-fired power plants. This framework is inspired by existing practices with products with similar physical characteristics to biomass. We present a hub-and-spoke supply chain network design model for long-haul delivery of biomass. This model is a mixed integer linear program solved using benders decomposition algorithm. Numerical analysis indicates that 100 million tons of biomass are located within 75 miles from a coal plant and could be delivered at $8.53/dry-ton; 60 million tons of biomass are located beyond 75 miles and could be delivered at $36/dry-ton.