Towards a circular bioeconomy: A bi-criteria site level decision support for potential cluster nodes exemplified by hydrogen production in Baden-Württemberg

Fostering a local and circular bioeconomy is expected to result in increased resilience and decreased environmental impacts. By converting biobased residuals into valuable products, biowaste-to-X (B2X) technologies are enablers of such value creation. However, as biowaste is characterized by limited availability, its use must be optimized based on local supply and demand. This article presents a site level optimization model for the design of regional bioeconomic cluster nodes based on economic and ecological key performance indicators. Decisions concern the capacity of feasible technology combinations to be installed and transport of biomass from supply regions and products to demanding locations respectively. As B2X technologies are currently an emergent research field, the model is extendable to allow the consideration of future technology developments. Furthermore, framework conditions of the system under consideration are adjustable to enable a location- and time-independent application. The work addresses research, private investors, companies and municipalities, planning to install B2X facilities on a specified property to establish a cost-efficient local circular bioeconomy. The model is validated with the use case of hydrogen production. This includes B2X- but also conventional technologies to prevent dogmatic decisions and enable the identification of an optimum based on two dimensions of sustainability. Case studies with two companies in Baden-Württemberg, Germany, exemplify that specific framework conditions are necessary to turn biobased hydrogen production with carbon capture and storage into a favorable technology-combination. A sensitivity analysis outlines the costs for water, electricity, biomass, and workers, as well as the selling price for hydrogen and carbon removal certificates as pivotal parameters. • Presentation of a transferable and extensible model for optimizing local biobased supply chains. • The model is designed as a single facility location planning with capacity and flow optimization. • Decisions include. o the selection of the best suiting technology combination, including its scale o the annual production volume o the yearly mass of transported biomass from supply regions o the yearly mass of transported goods to demand locations o the yearly amount of captured CO 2 either transported to demand locations or a carbon dioxide storage facility • Consideration of economic (net present value) and ecological parameters (cumulated GHG emissions) • The model was tested in the context of the use case of bio-based hydrogen production and through two case studies of potential production sites in Baden-Württemberg. • Parameterization of the model and input data enables a variable, in terms of time and location universal application of the model