Forming clusters based on strategic partnerships and circular economy for biogas production: A GIS analysis for optimal location

Abstract The aim of this paper is twofold: (i) to build a model by combining an agglomerative hierarchical algorithm with multicriteria analysis and geographic information systems (GIS) in order to identify whether there are opportunities to create strategic partnerships based on geographic coordinates of raw material suppliers and the volume of raw material supply; and (ii) to apply the model in a case study in order to identify suitable locations for building a biodigester, thus establishing strategic partnerships and circular economy-based practices. The model involves four stages: (1) defining the study site, (2) building the set of cluster solutions, (3) defining the suitable locations for building a biodigester, and (4) conducting analyses of feasibility of strategic partnership and sensitivity. The model was applied in a small region and it was analyzed the possibility of creating two or three clusters. The use of the model allowed, from both quantitative and qualitative perspectives, to preliminarily identify the possibility of creating a strategic partnership, and also determine the location of a biodigester. The case study applied in southern Brazil took place in a region with high potential for generating biogas from agro-waste. A geographic map with roads, rivers, and constraints was built. Strategic partnerships, sensitivity analysis, and circular economy-based practices were discussed. The results of this work could provide useful information when using the model for other regions, and the model could easily incorporate further criteria and conditions, making it flexible and tailored to users' needs.