Value chain for next-generation biofuels: resilience and sustainability of the product life cycle

Multiple factors including climate change, price uncertainties, and geopolitical instability have prompted many industries to investigate the feasibility of replacing traditional petroleum-based fuels with biofuel alternatives. However, to make this transition successful, these new biofuels must be environmentally sustainable and the necessary support infrastructure must be in place to make the production, distribution, and storage of these biofuels technologically feasible and cost effective. Developing a value chain, spanning from feedstock production to distribution to end users, requires garnering buy-in from multiple stakeholders by demonstrating environmental, economic, and social benefits and incentives. Two critical factors are the environmental benefits achieved from the use of the biofuel technology and the degree of resilience of the value chain to emergent conditions to ensure steady supply to consumers. Moreover, different biofuel pathways have different costs, benefits, and risks which must be compared. In this paper, we describe how environmental sustainability can be modeled using life cycle assessment (LCA) and how the resilience of value chain initiatives can be modeled using a scenario-based decision model. We then describe how sustainability and resilience assessments can be integrated in an iterative, anticipatory LCA framework. These assessments can be used as the basis for a business case for various investments, as well as a means for promoting responsible innovations, with the aviation industry used as a case study.