Renewable energy-focused sustainable supply chain network design: an application in the bioethanol production industry

Abstract

This study presents a sustainable supply chain model for bioethanol production, an area of Türkiye’s renewable energy sector in which commercial initiatives have not yet been established. Two scenarios were evaluated: bioethanol from agricultural residues and industrial waste gases. A Life Cycle Assessment (LCA) was performed, and the most suitable plant location was identified using the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method. A Mixed-Integer Linear Programming (MILP) model was applied in GAMS to optimize cost, logistics, and environmental performance. Findings reveal that bioethanol production from industrial waste gases yields significantly lower CO₂ emissions than production from agricultural residues. It has been determined that production costs constitute the largest share of total system costs, and that logistics and warehouse allocation decisions play a significant role in system costs and supply chain structure. Conversely, the impact of efficiency improvements on total costs was found to be limited. Sensitivity analysis indicates that increased capacity and demand drive cost escalation, underscoring the importance of logistics planning. This study offers region-specific insights into Türkiye’s developing renewable energy supply chains, demonstrating that companies can enhance cost efficiency, reduce emissions, and align with the Sustainable Development Goals (SDGs), providing both scholarly and practical contributions to sustainable energy transition strategies.