Circular Synergy between Biomass and Petroleum Industry in Process and Supply Chain Integration

The desire to decarbonize modern energy is challenged by the indispensable use of fossil fuels. Circular economy (CE) represents a promising shift in the modern industry from linear toward a self-sustaining circular system where the synergy among various industries formulates a closed loop. Addressing the end-of-life waste hierarchy, this work evaluates the integration of biomass conversion technology as a potential strategy to empower circularity in the oil and gas (O&G) industry. Decision problems associated with technology selection and facility location are resolved using a systematic analytical approach (e.g., principal component analysis, multi-objective decision-making, mixed-integer linear programming, geospatial information, etc.), which are modeled into two parts: (i) optimal biomass conversion pathway synthesis and (ii) optimal supply chain synthesis. The performance of the determined optimal solutions in terms of economic and environmental aspects is evaluated in the model, which is then benchmarked with that of the conventional O&G design. A case study in Malaysia is adopted to demonstrate the effectiveness of the proposed model in determining the optimal technology pathway and supply chain. The model favors hydrogen production through gasification with promising environmental (1.32 kg CO2/kg H-2) and economic performance ($1.09 /kg H-2). Ultimately, the proposed strategy represents a preliminary stage design which serves as a direction for policymakers, investors, and researchers to strive toward CE goals.