LAUSR

This paper presents an economic optimization of a supply chain network to produce sugar and bioethanol from the first- and second-generation biomass in South Africa. A mixed-integer linear program model in combination with Google Earth® and ArcGIS was hereby developed to account for sugar demand, different feedstocks and products, as well as their distribution, tax subsidies and different processing technologies to address bioethanol production. The model was applied to two case studies depending on availability of biomass of which the results showed that the integrated bioethanol and sugar supply chain network is economically viable in South Africa. Transportation costs accounted for a significant part of the costs incurred in the supply chain, while highest profits are made when higher amounts of raw materials are available and there is no restriction relating to ethanol production. It is concluded that the 2% bioethanol-fuel blend target stipulated by the government of South Africa in the biofuel industrial strategy can be exceeded while still producing current amounts of sugar.