Supply chain as a fundamental determinant of biomass cluster

Abstract

As global energy trends change, it is necessary to form new energy supply structures for the public. This becomes especially relevant when fossil fuel is replaced by biodegradable fuel. In case of biomass clusters, the formation of a competitive supply chain becomes an essential factor in the production and sales of energy, which also ensures the competitiveness of the cluster itself. In the scientific literature, the integration of a competitive supply chain into a biomass cluster is investigated relatively poorly. The aim of the paper is to investigate the impact of the supply chain on the efficiency of biomass cluster activity. The results of research carried out by authors’ show that it is necessary to agree on the optimal supply distance in the supply chain development process. Essentially, it is the distance data that determines the final cost of energy supply. The authors of the article formulated a competitive supply chain model for the case of a biomass cluster, which explored the possibilities of supplying regional power plants with the required amount of biomass. That allows to calculate the cost of the heat energy and determine the frequency at which the supply chain parts must operate. Using a competitive supply chain model, biomass clusters can balance the supply of biomass to power plants and ensure their continuity. Thus, research by authors reveals that the supply chain is slowly becoming the main factor in the competitiveness and existence of a cluster.