EURO 2025 Leeds
Abstract Submission

2219. Sustainable CO2-Based Synthesis Gas Supply Chain Design under Demand Uncertainty

Invited abstract in session TD-42: Sustainable supply chain design, stream Circular & Sustainable Supply Chains.

Tuesday, 14:30-16:00
Room: Newlyn GR.02

Authors (first author is the speaker)

1. Ozlem Mahmutogullari
KU Leuven
2. Nevin Mutlu
Eindhoven University of Technology
3. Tarkan Tan
Industrial Engineering Department, Eindhoven University of Technology

Abstract

The electrolysis of CO2 offers a sustainable alternative for producing synthesis gas, reducing dependence on fossil-based feedstocks. However, its widespread adoption faces economic, environmental, and regulatory challenges. This study addresses these challenges by evaluating CO2 electrolysis for synthesis gas production and proposes a supply chain design for the product. We identify key uncertainties and incorporate expert insights obtained from iterative surveys and workshops into the decision-making process. A multi-period planning approach is applied to consider strategic and tactical decisions. To mitigate environmental impact, we explore an electricity consumption strategy that integrates renewable electricity and battery storage alongside grid electricity. Demand uncertainty is addressed using a robust optimization approach, where demand realization intervals are endogenously dependent on the pricing decision. We develop a mixed-integer programming model to design a robust supply chain for CO2-based syngas, ensuring the economic and environmental sustainability. A case study on the BENELUX region analyzes different grid and electricity transmission scenarios. Our results demonstrate the value of robust supply chain design in minimizing risks of unmet demand and high costs. Additionally, we highlight the critical role of renewable energy integration, battery storage, and government financial support in the development of the CO2 electrolysis technology.

Keywords

Status: accepted

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