A zero-carbon supply chain model: minimising levelised cost of onsite renewable generation

ABSTRACTThis paper develops a linear optimisation model to investigate whether it is feasible to operate a net-zero-carbon supply chain network via 100% of onsite wind and solar generation. In particular, this work determines the technology, location and size of renewable generating units in an integrated production–transportation system with the goal of minimising the levelised cost of renewable energy. Numerical experiments show that it is technically feasible and economically viable to realise a zero-carbon supply chain operation provided the local facility possesses a medium wind speed and the installation cost of photovoltaics drops to $2 per watt.