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Optimal multi-state partnerships for woody biomass co-firing incorporating a demand-response function for biomass procurement

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Abstract

Woody biomass provides an opportunity to reduce carbon emissions from existing power plants via co-firing with coal. However, increased demand for woody biomass in electricity generation could potentially increase the price for biomass procurement. This paper presents an econometric demand response model for biomass procurement prices, which is then integrated into a robust mixed-integer nonlinear programming (MINLP) model. We utilize a two-stage approach to efficiently solve this MINLP. The model is then applied to demonstrate the demand-price relationship and to identify efficient frontiers for optimal state partnerships that achieve aggregated CO\(_2\) emission rate targets at minimum aggregate cost, subject to a constraint on the probability of satisfying the desired emission targets.

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Acknowledgements

This work was supported by the United States Department of Agriculture [grant number 2017-67019-26286].

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Authors and Affiliations

  1. Department of Industrial Engineering, Bartin University, 74100, Bartin, Turkey

    Bayram Dundar

  2. Department of Industrial and Manufacturing Systems Engineering, and Truman School of Public Affairs, E3437 Lafferre Hall, University of Missouri, Columbia, MO, 65211, USA

    Ronald G. McGarvey

  3. Department of Forest Economics, Swedish University of Agricultural Science, 90183, Umea, Sweden

    Francisco X. Aguilar

Authors
  1. Bayram Dundar
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  2. Ronald G. McGarvey
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  3. Francisco X. Aguilar
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Correspondence to Ronald G. McGarvey.

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Dundar, B., McGarvey, R.G. & Aguilar, F.X. Optimal multi-state partnerships for woody biomass co-firing incorporating a demand-response function for biomass procurement. Optim Lett 16, 821–844 (2022). https://doi.org/10.1007/s11590-021-01747-8

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  • DOI: https://doi.org/10.1007/s11590-021-01747-8

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