Optimal Design for Biodiesel Supply Chain: Case Study
DOI:
https://doi.org/10.13052/spee1048-4236.39144Keywords:
Biodiesel, palm oil, optimization, supply chain, Indonesia, delivery point, facility locationAbstract
One renewable energy form currently being promoted is that of biodiesel as
a substitute for diesel fuel. This involves mixing biodiesel with petrodiesel
in proportions governed by the respective regulations of each country. The
purposes of this research are to support the exploiting of biodiesel forms of
renewable energy and to optimize the palm oil-sourced biodiesel supply chain
by conducting an Indonesia-based case study. The optimization process was
implemented in accordance with the government’s mandate and long-term
planning. There are two decision variables to consider. First, the model will
identify the optimum delivery point locations as a blending terminal between
biodiesel and petrodiesel (petroleum diesel). Second, it will determine the
location of biodiesel plants’ construction in order to satisfy the government’s
mandate. The results show that, while determining delivery point locations
affects supply chain costs, it does not do so significantly. More influential
is determining the construction locations of biodiesel plants and this study
provides a model for deciding the delivery points and locations of biodiesel
plants in order to minimize biodiesel supply chain costs in Indonesia. This study presents in detail biodiesel supply chain process in Indonesia and based
on the literature, no research was found on studying optimization biodiesel
supply chain in Indonesia.
Downloads
References
REN21, Renewables 2020 Global Status Report. 2020.
Abokyi, E., P. Appiah-Konadu, and F. Abokyi, Industrial growth and
emissions of CO2 in Ghana: The role of financial development and fossil
fuel consumption. Energy Reports, 2019. 5: p. 1339–1353.
Leduc, S., et al., Location of a biomass based methanol production
plant: A dynamic problem in northern Sweden. Applied Energy, 2010.
(1): p. 68–75.
Lane, J. The Digest’s Biofuels Mandates Around the World 2020. 2020
[cited 2020; July 16]. Available from: https://www.biofuelsdigest.com
Optimal Design for Biodiesel Supply Chain: Case Study 87
/bdigest/2019/12/31/the-digests-biofuels-mandates-around-the-world
-2020/.
MEMR. Regulation of the Minister of Energy and Mineral Resources
Indonesia About Certain Sector Industry Mandatory to Use Biodiesel
and Bioethanol as a Fuel Mixture With Certain Mixtures from 2015 to
2015.
Andersen, F., et al., Optimal design and planning of biodiesel supply
chain with land competition. Computers & Chemical Engineering, 2012.
: p. 170–182.
Santiba ̃nez-Aguilar, J.E., et al., Optimal planning and site selection
for distributed multiproduct biorefineries involving economic, environ-
mental and social objectives. Journal of Cleaner Production, 2014. 65:
p. 2-70-294.
Rinc ́on, L.E., et al., Optimization of the Colombian biodiesel supply
chain from oil palm crop based on techno-economical and environmen-
tal criteria. Energy Economics, 2015. 47: p. 154–167.
Babazadeh, R., Optimal design and planning of biodiesel supply chain
considering non-edible feedstock. Renewable & Sustainable Energy
Reviews, 2017. 75: p. 1089–1100.
Ezzati, F., R. Babazadeh, and A. Donyavi, Optimization of multimodal,
multi-period and complex biodiesel supply chain systems: Case study.
Renewable Energy Focus, 2018. 26: p. 81–92.
Jeong, H., H.L. Sieverding, and J.J. Stone, Biodiesel Supply Chain
Optimization Modeled with Geographical Information System (GIS)
and Mixed-Integer Linear Programming (MILP) for the Northern Great
Plains Region. Bioenergy Research, 2018.
Natarajan, K., et al., Optimal locations for second generation Fischer
Tropsch biodiesel production in Finland. Renewable Energy, 2014. 62:
p. 319–330.
Ivanov, B. and S. Stoyanov, A mathematical model formulation for
the design of an integrated biodiesel-petroleum diesel blends system.
Energy, 2016. 99: p. 221–236.
Woittiez, L.S., et al., Yield gaps in oil palm: A quantitative review of
contributing factors. European Journal of Agronomy, 2017. 83: p. 57–
MoA, Tree Crop Estate Statistics of Indonesia 2018 - 2020 : Palm Oil.
, Directorate General of Estates Ministry of Agriculture: Jakarta.
F. T. R. Silalahi et al.
Silalahi, F.T.R., T.M. Simatupang, and M.P. Siallagan, Biodiesel pro-
duced from palm oil in Indonesia: Current status and opportunities.
AIMS Energy, 2019. 8(1): p. 81–101.
CNN. Penghematan Devisa dari Program B20 Baru 56,9 Persen 2019
[cited 2020 July 15]; Available from: https://www.cnnindonesia.com/e
konomi/20191127152450-85-451998/penghematan-devisa-dari-progra
m-b20-baru-569-persen.
BPS, Statistical Yearbook of Indonesia 2019 2019, BPS Indonesia:
Jakarta.
detik.com. Distribusi BBM Indonesia Paling Rumit di Dunia 2020 [cited
July 15]; Available from: https://finance.detik.com/energi/d-2555
/distribusi-bbm-indonesia-paling-rumit-di-dunia.
Kencana, M.R. Tantangan Penerapan B20 Ada di Tingkatan Opera-
sional (The Challenge of B20 Implementation is in the Operational
Level). 2018 [cited 2020 June 26]; Available from: https://www.lipu
tan6.com/bisnis/read/3653654/tantangan-penerapan-b20-ada-di-tingka
tan-operasional.
Arifin, R., RI Wants to reach B50, Car Manufacturers Say. 2019, detik.
com.
USDA, Indonesia Biofuels Report 2019. 2019: Jakarta.
MIGAS, B., Laporan Kinerja BPH Migas Tahun 2016 ( BPH Migas
Performance Report Year 2016). 2016, BPH MIGAS: Jakarta.
MEMR. Pengadaan Bahan Bakar Nabati Jenis Biodiesel Untuk Pen-
campuran Jenis Bahan Bakar Minyak Periode Januari – Desember
2018; Available from: https://drive.esdm.go.id//wl/?id=PYm0
lUq1vD2OCtsPw5wj4XiZSRJD1GaP.
Indonesia, C. Kementerian ESDM Taksir Kebutuhan Biodiesel 2020 9,6
Juta KL (The Ministry of Energy and Mineral Resources Estimates 2020
Biodiesel Needs of 9.6 Million KL). 2019 [cited 2020 September 16];
Available from: https://www.cnnindonesia.com/ekonomi/20191007182
-85-437535/kementerian-esdm-taksir-kebutuhan-biodiesel-2020-9
-juta-kl.
Pertamina. Usaha Hilir Pertamina (Pertamina Downstream). 2020
[cited 2020 July, 13]; Available from: https://www.pertamina.com/id
/downstream.
Harahap, F., S. Silveira, and D. Khatiwada, Cost competitiveness of palm
oil biodiesel production in Indonesia. Energy, 2019. 170: p. 62–72.
Optimal Design for Biodiesel Supply Chain: Case Study 89
Statistik, B.P., Hasil olah cepat penduduk Indonesia menurut provinsi,
kabupaten/kota, dan kecamatan sensus penduduk 2010. 2010: Badan
Pusat Statistik (BPS).
Satrianegara, R. Biaya Produksi Minyak Pertamina Masih Tinggi (Per-
tamina’s oil production costs are still high). 2018; Available from:
https://www.cnbcindonesia.com/news/20180226170320-4-5501/b
iaya-produksi-minyak-pertamina-masih-tinggi.
Nossar, R. Kapasitas terminal BBM Tuban ditambah (Tuban BBM ter-
minal capacity is increased). 2014 [cited 2020 June 25]; Available from:
https://industri.kontan.co.id/news/kapasitas-terminal-bbm-tuban-dita
mbah.
MEMR, Perubahan Ketiga Atas Peraturan Menteri Energi dan Sumber
Daya Mineral Nomor 32 Tahun 2008 Tentang Penyediaan, Pemanfaatan
dan Tata Niaga Bahan Bakar Nabati (Biofuel) Sebagai Bahan Bakar
Lain, MEMR, Editor. 2015, MEMR: Jakarta.
MEMR. Keputusan Menteri Energi dan Sumber Daya Mineral Republik
Indonesia Nomor 91 K/12/DJE/2019. 2019.
Mahmudah, N., et al. Study of Regional Transportation for CPO in Cen-
tral Kalimantan. in Proceedings of the 15th International Symposium
FSTPT. 2012.
Khatiwada, D., et al., Optimizing ethanol and bioelectricity produc-
tion in sugarcane biorefineries in Brazil. Renewable Energy, 2016. 85:
p. 371–386.
Peters, M.S., et al., Plant design and economics for chemical engineers.
Vol. 4. 1968: McGraw-Hill New York.
Ong, H.C., et al., Life cycle cost and sensitivity analysis of palm
biodiesel production. Fuel, 2012. 98: p. 131–139.
EBTKE. Pemerintah Tegaskan Komitmen Pelaksanaan Program
Mandatori B30. 2019 [cited 2020 July, 13]; Available from: http://eb
tke.esdm.go.id/post/2019/11/04/2386/pemerintah.tegaskan.komitmen.p
elaksanaan.program.mandatori.b30.
https://aeeeuropeenergy.com/
