Sequential optimization of process and supply chains considering re-refineries for oil and gas circularity

Lip Siang Yeo, Sin Yong Teng, Wendy Pei Qin Ng, Chun Hsion Lim, Wei Dong Leong, Hon Loong Lam, Yat Choy Wong, Jaka Sunarso and Bing Shen How

Applied Energy, 2022, vol. 322, issue C, No S030626192200811X

Abstract: The United Nations Climate Change Conference COP26 held in 2021 concluded a global effort to hasten the energy transition toward a net-zero emission industry. As such, green initiatives, which transition the conventional oil and gas (O&G) sector towards a circular economy (CE) are necessary. In this work, the integration of waste oil re-refining technology is proposed as a potential strategy to enhance the circularity of the O&G industry. A two-step sequential model, which incorporates multiple systematic analytical tools (e.g., multi-objective decision analysis, information entropy, geospatial information, clustering, and routing analysis) is developed to determine: (i) optimal waste oil re-refinery technologies, and (ii) optimal supply chain design, which addresses the location for setting up the process facilities and the delivery routes, with the consideration of both economic and environmental performances. The effectiveness of the proposed strategy is demonstrated through a case study in Malaysia (that covers both East and West Malaysia). The analysis showed that the proposed strategy is capable of improving economic and environmental performances by about 9.59% and 46.55%, respectively. This work is essentially a useful reference for decision-makers and policymakers in making nationwide transition planning in the O&G sector.

Keywords: Waste lubricant oil treatment; Circular economy; Sustainable supply chain management; Information entropy; Multi-objective optimization; Vehicle routing problem (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (6)

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DOI: 10.1016/j.apenergy.2022.119485

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