Optimization of a Distributed Small Scale Biodiesel Production System in Greater London

In this paper, we explore the economic feasibility of a distributed network of biodiesel production facilities installed in Greater London area of the UK, in order to take advantage of the availability of waste cooking oil, concentrated demand for biodiesel and economies of " mass" produced capital equipment. The biodiesel facility location problem was formulated as a mixed integer linear program (MILP) with the objective to maximize system-wide net present value. Total capital investment was described as a function of installed capacity using a general piecewise linear function, allowing for the effect of capital cost reductions of mass produced capital to be addressed. This system of small scale distributed biodiesel production is shown to be economically feasible and could be seen as a possible step towards a more locally focused fuels and energy supply network.