Biofuel production in Lithuania: modelling of the future development Cover Image

Biodegalų gamyba Lietuvoje: perspektyvinės raidos modeliavimas
Biofuel production in Lithuania: modelling of the future development

Author(s): Vidas Lekavičius, Dalius Tarvydas, Arvydas Galinis
Subject(s): Energy and Environmental Studies, Transformation Period (1990 - 2010), EU-Accession / EU-DEvelopment
Published by: Lietuvos verslo kolegija
Keywords: biofuel; bioethanol; biodiesel; renewable energy sources; mathematical modelling; optimal integration of technologies;

Summary/Abstract: According to the directive 2009/28/EC Lithuania as well as other European Union countries has an obligation to achieve a 10 percent level of energy from renewable energy sources (RES) in the final energy consumption in transport. From the point of view of society, there is a strong interest to investigate how biofuel production capacities should be developed and operated in order to achieve this target in the most rational way. The aim of the article is to create a mathematical model for analysis of long-term development of biofuel production in Lithuania. The structure of the paper is as follows. First part of the paper discuss methodological approaches related to the modelling of biofuel development, second part presents current situation of biofuel production in Lithuania, and in the third part there is presented proposed structure and general features of mathematical model for analysis of long-term modelling of biofuel development. In the previous researches it has been determined that relationship between world oil prices and prices of the first generation biofuel feedstock is significant. Oil price has an impact on the main components of the feedstock cost: on the one hand, large part of expenses of wheat production is directly related to oil and other energy products. On the other hand, prices of biofuel feedstock are related to oil price as they are partial substitutes. All these relationships as well as technical, legislative aspects and uncertainties have been taken into account when long- and medium-term development of biofuel production capacities has been modelled. Oil price in the model was considered as the most important exogenous factor, which is able to make a strong indirect influence on changes of biofuels production’s cost structure. A mixed button-up approach has been used in this model when particular technologies have been modelled. This means that the model is focused on the performance of each individual technology producing biofuels and more general results could be received by aggregation of individual plants performance. Model is designed to optimize capacity building and production processes from different perspectives. Minimization of total discounted cost of biofuel production, as an objective function of the model, was chosen in order to get the most socially acceptable biofuel development pathway.

  • Issue Year: 19/2011
  • Issue No: 2
  • Page Range: 147-153
  • Page Count: 7
  • Language: Lithuanian