Deciding the location of bio refinery is an important task for management in biofuel supply and demand. This work presents a single-period deterministic model for the optimal location of butanol refinery. The developed model considers a whole system approach for butyric acid supply, butanol refinery and delivery systems. The proposed model determines where and how many refineries to be constructed and components (butyric acid and butanol) to be transported for minimizing the expected total network cost and satisfying regional demand of biofuel. The real scenario of the biofuel demand by region in South Korea is applied to validate the mathematical model. The optimization results will help to determine investment strategies for butanol production.
Keywords Energy management, Renewable energy, Facility location, Butanol