Biofuel supply chain planning and circular business model innovation at wastewater treatment plants: The case of biomethane production

Abstract

Advanced biofuels, such as biomethane, could contribute to environmental sustainability in increasingly interrelated sectors, such as energy and waste management. Accordingly, innovative biomethane production technologies are argued to be the enablers of circular and waste-to-energy concepts, for example, at wastewater treatment plants (WWTPs). Nevertheless, their integration into biofuel supply chain (BSC) research is overlooked from a circular business model innovation (BMI) perspective. This study aims to address this research gap by focusing on an innovative biomethane production approach (power-to-gas, P2G) and related circular business model innovation opportunities in the context of WWTPs. We carried out lab-scale research and a case study at a mid-sized European WWTP to establish an empirical basis for large-scale techno-economic calculations. Despite the explored technological opportunity to increase advanced biofuel supply and decrease carbon dioxide emissions at WWTPs, current market risk levels challenge the economic prospects of the system concept. These empirical results demonstrate the necessity of policy interventions in different combinations (e.g., investment support, favourable taxation, feed-in tariffs). This study is one of the first to combine technological and business modelling aspects to support BSC planning, and supplement optimization-focused BSC research with explorative techno-economic analyses based on empirical data.