Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Designing a renewable jet fuel supply chain: Leveraging incentive policies to drive commercialization and sustainability

Version 1 : Received: 4 November 2023 / Approved: 7 November 2023 / Online: 7 November 2023 (06:35:51 CET)

A peer-reviewed article of this Preprint also exists.

Ebrahimi, S.; Szmerekovsky, J.; Golkar, B.; Haji Esmaeili, S.A. Designing a Renewable Jet Fuel Supply Chain: Leveraging Incentive Policies to Drive Commercialization and Sustainability. Mathematics 2023, 11, 4915. Ebrahimi, S.; Szmerekovsky, J.; Golkar, B.; Haji Esmaeili, S.A. Designing a Renewable Jet Fuel Supply Chain: Leveraging Incentive Policies to Drive Commercialization and Sustainability. Mathematics 2023, 11, 4915.

Abstract

Renewable jet fuel (RJF) production has been recognized as a promising approach for reducing the aviation sector's carbon footprint. Over the last decade, commercial production of RJF has piqued the interest of airlines and governments around the world. However, RJF production can be challenging due to its dispersed supply resources. Furthermore, the production of RJF is more costly compared to producing conventional jet fuel. In this study, using a mixed integer linear program (MILP), we design an RJF supply chain network in which we obtain an optimized configuration of the supply chain and determine operational decisions required to meet RJF demand at airports. To accelerate commercialization of RJF production, we considered four different monetary incentive programs, which could cover the supply chain’s costs. This study is validated by employing the model to design an RJF supply chain in the Midwestern US. Results from this study are promising as they show the supply chain can achieve commercialization with partial financial coverage from the incentive programs. Based on the findings of this study, policymakers can devise policies to commercialize RJF production and accelerate its adoption by industry.

Keywords

renewable jet fuel; supply chain optimization; monetary incentives; mixed integer linear programing; incentive policy

Subject

Business, Economics and Management, Business and Management

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