article id 145,
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                        Research article
                    
        
                                    
                                    
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                            Biofuel plant size is one of the key variables in biofuel supply chain  analysis as it plays a pivotal role in controlling the efficacy of both  feedstock supply and feedstock-to-biofuel conversion. The unit  production cost and greenhouse gas (GHG) balance of biofuels vary with  plant size. We develop an analytical framework for integrating biofuel  production costs and GHG balance derived from life-cycle analysis into  supply chain optimization, followed by its application to ethanol  production using forest biomass in the southern United States. We derive  formulas for determining the optimal biofuel plant size and the  corresponding feedstock supply radius based on the minimization of  biofuel production costs less GHG benefits. Our results indicate that  though biofuel plant size and feedstock supply radius should be  augmented by considering GHG benefits, the GHG price will have a more  significant impact on net biofuel production costs than on conversion  plant size or feedstock supply radius. With a rise in the GHG price the  net biofuel production cost tends to increase while the directions of  change in plant size and feedstock supply radius are uncertain,  depending upon the costs and GHG emissions of biomass transport and  feedstock-to-fuel conversion. Combining GHG offset values with biofuel  production costs enables us to more holistically examine the biofuel  supply chain.
                        
                
                                            - 
                            Gan,
                            Department of Ecosystem Science and Management, Texas A&M University, Texas, USA
                                                        E-mail:
                                                            j-gan@tamu.edu
                                                                                          
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                            Smith,
                            Faculty of Forestry, University of Toronto, Ontario, Canada
                                                        E-mail:
                                                            cts@nn.ca