Supply Chain Design for Waste Valorization Through High-Energy-Density Pellet Production in Chile

This study presents the development and application of a mathematical optimization model to improve decision-making in the supply chain for high-energy-density pellet (HEDP) production and commercialization. Focused on the Metropolitan Region of Chile, the research involved a detailed analysis of key supply chain components, including identifying landfills and controlled dumps, waste volume assessments, plant location analysis, technology evaluation, and market potential exploration. The model revealed that the available raw material in the region was sufficient to meet 100% of HEDP demand, with a surplus of 2,161,952 tons remaining after satisfying maximum demand. An optimization analysis of potential plant locations identified Santa Marta as the optimal choice, resulting in annual cost savings of USD 100,000 compared to other sites. This work underscores the role of mathematical optimization in enhancing supply chain efficiency for biomass-based energy products, offering valuable insights for strategic decision-making in similar contexts. © 2024 by the authors.