New domestic, renewable energy resources must be considered to increase energy security in the U.S. Ethanol production through second-generation (cellulosic) feedstocks will help the U.S. meet the legislative Renewable Fuel Standard, which mandates 36 billion gallons of renewable fuels by 2022. However, conversion of cropland to meet the cellulosic feedstock production goals may have unforeseen environmental consequences.
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This article addresses development of the Illinois ethanol industry through the period 2007-2022, responding to the ethanol production mandates of the Renewable Fuel Standard by the U.S. Environmental Protection Agency. The planning for corn-based and cellulosic ethanol production requires integrated decisions on transportation, plant location, and capacity.
When the lignocellulosic biofuels industry reaches maturity and many types of biomass sources become economically viable, management of multiple feedstock supplies – that vary in their yields, density (tons per unit area), harvest window, storage and seasonal costs, storage losses, transport distance to the production plant – will become increasingly important for the success of individual enterprises. The manager’s feedstock procurement problem is modeled as a multi-period sequence problem to account for dynamic management over time.