Research Article

Optimal Location of Biogas Plants in Supply Chains under Carbon Effects: Insight from a Case Study on Animal Manure in North Dakota

Table 1

Notations used in model development.

Sets

Iset of ranch, indexed by (i= 1,2,…,I)
Jset of potential biogas plant location, indexed by (j= 1,2,…J)
Kset of biogas plant capacity level, indexed by (k=1,2,…,K)

Parameters

maximum available animal manure
average acquisition cost of cattle manure
unit cost of biogas production at plant j ($/m3)
transport cost per ton-mile from cattle farm i to plant j
tons per truck load
truck hauling cost per loaded mile
average wet or dry content of manure (%)
truck loading and unloading cost of ($/tons) manure
investment cost of the plant at location j with plant capacity level k
annual operational and maintenance cost of the plant at location j with plant capacity level k
lifetime of biogas plant (years)
penalty cost for unmet demand
road distance (miles) between ranch i and plant j
maximum amount (tons) of carbon dioxide that can be emitted
annual production capacity for biogas plant size k
CO2 factor (CO2-eq. ton/dry ton) for animal manure acquisition
CO2 factor (CO2-eq. ton-mile/truckload) for transportation
CO2 factor (CO2-eq. m3/dry ton) for biogas production
amount (tons) of CO2 at location j with plant capacity level k
amount of offset methane at location j
αaverage expected cost of carbon price in $/ton CO2
θconversion efficiency to produce biogas from cattle manure (m3/dry ton)
annual natural gas demand

Decision Variables

amount of cattle manure transported to plant j from cattle farm i
amount of biogas converted in plant j at size k
1 if biogas plant with size k is built,
0 otherwise
size of a biogas plant, if any, to be built at site k
amount of CO2 that is emitted in supply chain