Open access peer-reviewed chapter

Application of Supply Chain Strategies to Improve the Performance of Syngas Networks

Written By

Nasiru Zubairu and Mira Al Balushi

Submitted: 14 June 2023 Reviewed: 15 June 2023 Published: 18 August 2023

DOI: 10.5772/intechopen.1002184

From the Edited Volume

Research Advances in Syngas

Abrar Inayat and Lisandra Rocha-Meneses

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Abstract

Production and utilization of syngas have the benefits of reducing greenhouse gas emissions and improving energy security. Renewable energy can be generated from syngas by converting problematic waste products into useful fuels and can be produced onsite to reduce transmission losses and costs. However, syngas is experiencing slow investment, production, and utilization due to bottlenecks, which are rooted in its supply chain networks. To address these challenges, this study aims to explore and evaluate supply chain strategies that drive performance in syngas networks to guide stakeholders to develop and embrace supply chain initiatives for improved competitiveness, sustainability, and energy security. Procurement, production, distribution and logistics, and end-use adoption are established as the key supply chain strategies that should be embedded in syngas supply chains to improve performance. Collaboration and technology support these strategies. These strategies will address the supply chain challenges, including feedstock availability, technology limitations and distribution infrastructure inadequacies.

Keywords

  • syngas
  • supply chain networks
  • supply chain challenges
  • supply chain strategies
  • sustainable energy
  • energy security

1. Introduction

The world’s population has risen to eight billion in 2022, more than three times higher than in the mid-twentieth century. The global population is projected to grow to 8.5 billion by 2030 and 9.7 billion by 2050 [1]. This rapid growth, accelerating urbanization, technological advancements and deployments, and the desire for clean energy will place immense pressure on energy supply networks [2]. To address the severe environmental and economic concerns of the 21st century, the transition to sustainable and low-carbon energy is a priority [3]. Households, governments, and supply chains demand more environmentally friendly, reliable, and affordable energy sources [4, 5]. Furthermore, globalization, increasing competition, uncertain business environments, progressive customer attitudes, and the desire for sustainable energy are driving sustainable energy supply chain networks [6].

Alternative energy sources are becoming increasingly prominent due to the negative effects of traditional fossil fuels on the environment, including climate change [7]. Syngas offers an innovative solution that integrates sustainability, flexibility, and scalability [3]. Syngas is produced from carbon biomaterials [8]. Investment and deployment of syngas have the benefits of reducing greenhouse gas and energy cost. Renewable energy can be generated from syngas by converting problematic wastes to valuable fuels and can be produced onsite to reduce transmission losses and costs [7]. According to an article in the Financial Times, some of the recent developments in syngas include a $2 billion plant in the US that will produce syngas using wind and solar power. In this plant, synthetic methane, similar in chemical structure to natural gas, can be produced with captured or atmospheric carbon dioxide (CO2), making it carbon neutral. It can be used in existing natural gas infrastructure and contribute to decarbonizing activities that are difficult to electrify. Additionally, syngas reuses CO2 that would otherwise be released, making it superior to natural gas in terms of emissions [9].

There are examples of practical syngas utilization in real-life, including in chemical and petrochemical industries and as synthetic natural gas (SNG) for heating and transport. Syngas serves as a vital feedstock to produce various chemicals and petrochemicals. The versatile nature of syngas allows for the synthesis of a wide range of valuable products, such as methanol, ammonia, hydrogen, and synthetic fuels [8]. A notable example is the Eastman Chemical Company’s methanol production plant in Texas, USA. The plant utilizes natural gas as a feedstock to produce syngas through steam reforming. The syngas is then converted into methanol, which serves as a raw material for various chemical products, including plastics, adhesives, and solvents [10]. Additionally, syngas can be further processed to produce SNG, which can be used for heating and transportation purposes. SNG production involves the conversion of syngas into methane, resulting in a gas that closely resembles natural gas in composition and properties [6]. An example is the SNG plant in Prenzlau, Germany, operated by E.ON Bioerdgas GmbH. The plant produces SNG from biogas derived from organic waste. The produced SNG is injected into the natural gas grid and distributed for heating applications, and fuel for vehicles running on compressed natural gas [11].

Despite the benefits of syngas and their promising potential, some challenges accompany the production of syngas, including the cost of producing green hydrogen and CO2 from biomass, as well as concerns about methane leakage and the need for broader climate change mitigation [9]. Additionally, critics and skeptics raise concerns about the negative impacts and drawbacks associated with syngas production and utilization. One primary concern is the carbon intensity of syngas, particularly when produced from fossil fuel feedstocks such as coal or natural gas [12]. While SynGas can be a substitute for natural gas, it still contributes to carbon emissions and climate change if produced from non-renewable sources [13]. Another concern is syngas production processes resulting in potential environmental pollution and adverse health effects. The gasification of coal or biomass can release pollutants such as Sulfur compounds, particulate matter, and trace elements into the atmosphere [14]. The proper management of emissions and waste by-products is crucial to mitigate these environmental and health risks [15]. Further, critics argue that syngas may divert attention and resources from investing in more established renewable energy sources, such as solar and wind power. Arguing that focusing on the development of renewable technologies and energy storage systems would yield greater long-term benefits in terms of sustainability and carbon reduction [16]. Consequently, several supply chain challenges must be addressed to facilitate the substantial adoption of syngas globally. The availability of feedstock, technological innovation, cost competitiveness, regulatory frameworks, and public acceptance are some of the challenges facing syngas supply networks [17]. However, addressing these issues can open various opportunities, such as creating integrated waste management systems, increasing regional energy independence, and decreasing greenhouse gas emissions [6].

Prior studies have established the links between supply chain strategies and energy systems performance [18]. Thus, there is potential for syngas practitioners to apply supply chain initiatives to improve performance across the entire value chain. Energy networks, including that of syngas, are extended, more complex, volatile, and more prone to various supply chain challenges [8]. Syngas supply chain network encompasses a range of interdependent activities, from feedstock sourcing to gasification, purification, and distribution [19]. Understanding the complexities of each component is critical for improving efficiency, lowering environmental consequences, and increasing economic viability [6]. Thus, analyzing unconventional energy supply chains such as syngas is important owing to unexpected risks, disruptions and vulnerabilities that affect their supply networks.

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2. Syngas supply chain networks

The syngas supply chain consists of various interconnected value chains, each playing a crucial role in the production, purification, distribution, and utilization of syngas. These value chains include feedstock sourcing and pre-processing, gasification and gas purification, and syngas distribution and consumption by end-users [19]. Understanding the interactions and interdependencies among these components is essential for optimizing the efficiency and sustainability of the syngas supply chain [20].

2.1 Feedstock sourcing and pre-processing

The first process in the syngas supply chain, like most supply networks, consists of sourcing raw material, in this case, feedstock. Sourcing is the strategic selection of the materials or services organizations need to run their operations, which includes supplier selection, contract negotiation, and relationship management [21]. Feedstock acquisition involves sourcing suitable carbon-containing materials such as biomass, coal, or waste [22]. The selection of feedstock depends on factors such as availability, cost, sustainability, and local regulations [19]. Once the suitable feedstock has been sourced, the next value chain is the pre-processing, which is preparing the feedstocks to meet the gasification process requirements and may include activities such as sorting, shredding, drying, and size reduction to optimize gasification performance [20].

2.2 Gasification and purification

Once the feedstock has been pre-processed, it is ready for the gasification process, which is a critical process in syngas production, where feedstocks are converted into a mixture of carbon monoxide and hydrogen [19]. Different gasification technologies, such as entrained flow, fluidized bed, or plasma gasification, are utilized based on specific feedstock properties and process requirements [3]. Gasification efficiency, feedstock flexibility, and the control of by-products such as tar and ash are critical considerations in this stage [23]. After gasification, the raw gas undergoes purification and treatment to remove impurities and contaminants. This includes the removal of particulate matter, Sulfur compounds, nitrogen compounds, and trace elements [19]. Various gas treatment technologies, such as wet scrubbing, adsorption, and catalytic conversion, are employed to meet the required quality standards for syngas [23]. Effective purification and treatment are crucial for maximizing the energy value and minimizing the environmental impacts of the final syngas product [3].

2.3 Distribution and end-use applications

Once purified, the syngas must be efficiently transported and distributed to end users. The supply chain’s distribution process connects syngas’s production to the downstream entities or end-user [20]. The distribution infrastructure may involve pipelines, compressed gas transportation systems, or storage facilities [24]. Distance, logistics, and safety considerations are vital in designing an effective distribution network [19]. Therefore, collaborations with existing natural gas distribution systems and the development of dedicated syngas pipelines can enhance the reach and accessibility of syngas as a viable energy source [20]. The syngas supply chain’s final stage involves utilizing syngas in various applications. These applications include power generation, heating, and industrial processes [3]. Additionally, syngas can be directly used as fuel in gas turbines or boilers, blended with natural gas, or converted into value-added chemicals for further processing [19]. The versatility of syngas applications offers significant opportunities for energy diversification and decarbonization across sectors [23].

Supply chain technologies play a vital role in each of the syngas value chains discussed. Advanced technologies are used in each stage of the supply chain, making technology providers crucial stakeholders in the syngas supply systems. Technological advances contribute to syngas production’s efficiency, scalability, and reliability [6]. Other stakeholders in the syngas supply chain include feedstock providers, gas treatment companies, energy producers, regulatory bodies, and policymakers [25]. Feedstock providers play a crucial role in ensuring the availability and quality of suitable feedstocks for syngas production [3]. The feedstock suppliers include biomass suppliers, coal mines, waste management companies, and agricultural producers [22]. Collaboration with feedstock providers is essential for securing a consistent and sustainable supply, exploring novel feedstock sources, and adhering to responsible sourcing practices [26]. Gas treatment companies ensure the removal of impurities and contaminants, leading to a high-quality syngas product [27]. Energy producers, such as power generation companies or industrial facilities, use syngas as fuel. They play a pivotal role in adopting syngas-based technologies, optimizing combustion processes, and integrating syngas into their energy portfolios. Regulatory bodies and policymakers play a crucial role in shaping the regulatory framework, incentives, and guidelines that govern the syngas supply chain [28]. Collaboration between stakeholders and regulatory bodies is essential to align industry practices with sustainability goals, encourage research and development, and ensure a level playing field for syngas within the energy market [25]. Understanding the stakeholder and value chain requirements and responsibilities is crucial for fostering collaboration, identifying potential bottlenecks, and promoting sustainable practices within the syngas supply chain networks [6].

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3. Supply chain challenges associated with syngas networks

Syngas is an alternative to traditional fossil fuels and offers reduced greenhouse gas emissions and enhanced sustainability [8]. However, the successful integration of syngas into the energy mix relies on addressing the unique challenges within its supply chain networks. These challenges include feedstock availability, gasification technology limitations, distribution infrastructure requirements, and end-use applications [29, 30, 31]. Understanding and mitigating these challenges is crucial for ensuring syngas efficiency, sustainability, and widespread adoption as a viable energy source [30]. Table 1 and Figure 1 present the supply chain challenges associated with syngas networks.

ChallengesCausesAuthors
Feedstock Availability
  • Variability of feedstock composition and characteristics

  • Competition for feedstock

  • Sustainability and environmental considerations

[12, 13, 23, 24, 25, 26]
Gasification Technology Limitations
  • Technology maturity and scalability

  • Flexibility in feedstock utilization

[13, 16, 27, 29]
Distribution Infrastructure Requirements
  • Pipeline infrastructure

  • Storage and compression

[3, 7, 8]
End-use Applications
  • Technological integration

  • Market acceptance and demand

[7, 15, 19, 22]

Table 1.

Supply chain challenges facing syngas networks.

Figure 1.

Supply chain challenges affecting syngas networks.

3.1 Feedstock availability

One of the primary challenges in the syngas supply chain is ensuring a reliable and sustainable feedstock supply (Table 2). The availability and accessibility of feedstock significantly impact the feasibility and cost-effectiveness of syngas production [20]. Feedstock sources include coal, biomass, waste materials, and natural gas. Studies have highlighted the importance of feedstock diversification to mitigate supply chain risks and promote sustainability [31]. Feedstock availability has been identified as a significant challenge in the syngas supply chain due to the variability of feedstock composition and characteristics, competition for feedstock, and environmental considerations [19, 31, 32]. The need for developing alternative feedstocks and evaluating their suitability for syngas production is critical. Ensuring a consistent supply of feedstock and exploring novel sources are crucial to addressing feedstock shortages [19, 31, 47]. Syngas production relies on various feedstocks, such as biomass, coal, or waste materials [47]. However, the composition and characteristics of these feedstocks can vary significantly, posing challenges to the gasification process. Variations in moisture content, ash content, and feedstock quality can impact gasification efficiency and result in varying syngas compositions [19]. Ensuring a consistent and reliable feedstock supply requires strategic activities such as blending, pre-processing techniques, and advanced feedstock characterization methods [20]. The availability and accessibility of feedstocks for syngas production can be limited due to competition with other industries, such as agriculture, waste management, or traditional energy production [32]. This competition can result in price fluctuations and supply constraints [12]’. Thus, collaborative efforts among stakeholders, including feedstock providers, policymakers, and researchers, are essential to identify alternative feedstock sources, developing sustainable feedstock management practices, and establishing long-term supply agreements [20]. Additionally, syngas production can support curtailing greenhouse gas emissions and promote environmental sustainability [30]. However, the sustainability of feedstock sourcing and production processes must be carefully assessed [47]. Biomass feedstocks, for example, require attention to land use, deforestation, and agricultural practices. Balancing feedstock production’s environmental impacts with syngas networks’ sustainability objectives requires close collaboration among stakeholders and adherence to strict sustainability standards [32].

StrategiesInitiativesAuthors
Procurement
  • Sourcing and procurement management

  • Strategic partnerships and alliances

[32, 33, 34, 35, 36]
Production
  • Technology selection and optimization

  • Process integration and efficiency

[33, 36, 37, 38, 39]
Distribution and Logistics
  • Infrastructure development and optimization

  • Supply chain visibility and collaboration

[23, 40, 41, 42]
End-use Adoption
  • Market development and demand creation

  • Technological integration and innovation

[39, 43, 44, 45, 46]

Table 2.

Supply chain strategies that improve performance in syngas networks.

3.2 Gasification technology limitations

Gasification is a key process in syngas production, converting feedstock into a mixture of hydrogen and carbon monoxide. However, gasification technologies face certain limitations that affect the efficiency and reliability of syngas production [23]. The limitation of gasification technology is another challenge facing the syngas supply chain [20, 23, 40]. Research efforts have focused on improving gasification technologies to overcome these limitations. Innovative gasification methods and reactor designs are explored by extant studies to enhance process efficiency and address feedstock variability [20, 23]. More efforts are required for continued advancements in gasification technologies to optimize syngas production. Gasification technologies used in syngas production continuously evolve, and their maturity and scalability can pose challenges [20]. Many gasification processes are still in the research and development phase or are limited to small-scale applications. Scaling up these technologies for commercial production requires significant investment, technical advancements, and demonstration projects [33]. Therefore, collaborative efforts between technology providers, researchers, and investors can drive innovation, improve gasification efficiency, and enhance the scalability of gasification technologies [48]. Additionally, different gasification technologies exhibit varying levels of flexibility in feedstock utilization [40]. Some technologies are optimized for specific feedstocks, limiting the ability to switch or adapt to changing market conditions [20]. Enhancing the flexibility of gasification technologies through process modifications, catalyst development, or hybrid systems can improve feedstock utilization, increase operational efficiency, and reduce feedstock-related risks [23].

3.3 Distribution infrastructure requirements

Transportation is required at every value stream. Effective distribution infrastructure is essential for transporting syngas from production facilities to end-use applications. Challenges in this area include pipeline connectivity, storage capabilities, and safety considerations [3]. Consequently, establishing an efficient and robust distribution network requires significant investments and coordination among various stakeholders [8]. Studies are conducted to optimize distribution infrastructure to enhance syngas supply chain performance. Studies by [3, 7, 8] analyze the design and operational aspects of syngas pipeline networks to minimize transportation costs and ensure reliable supply. However, understanding the infrastructure requirements and developing innovative solutions are critical to improving cost and reliability [7]. Efficient and reliable distribution infrastructure is crucial for transporting syngas from production facilities to end-use applications. However, the existing natural gas pipeline infrastructure may not be suitable for syngas due to differences in composition and impurity content [8]. Developing dedicated syngas pipelines or retrofitting existing infrastructure requires substantial investments and collaboration between syngas producers, pipeline operators, and regulatory authorities, creating a challenge for syngas supply chains [3]. There are also challenges associated with the storage of syngas. The storage and compression of syngas are essential for ensuring a consistent supply and accommodating fluctuations in demand [8]. However, syngas has different properties than natural gas, affecting storage and compression requirements [7]. Therefore, developing storage technologies suitable for syngas, such as high-pressure tanks or gas holders, and optimizing compression processes can enhance the flexibility and reliability of syngas distribution networks [8].

3.4 End-use applications

The successful adoption of syngas relies on identifying and developing viable end-use applications. End-use applications, such as technology integration and market acceptance and demand are challenges affecting syngas supply chain performance [7, 22, 29]. Each application has unique requirements and regulations that must be considered in the syngas supply chain [26]. The feasibility and economic viability of different end-use applications of syngas have been explored to understand and optimize its utilization in different sectors, which is crucial for achieving market acceptance [29]. Integrating syngas into existing energy infrastructure and end-use applications can present technological challenges [7]. Syngas utilization requires modifications or replacement of combustion systems, such as boilers or gas turbines, to ensure compatibility and optimal performance [22]. Collaborations between syngas producers, equipment manufacturers, and end-users are crucial for identifying technological requirements, conducting feasibility studies, and implementing syngas-based solutions [30]. The successful adoption of syngas relies on market acceptance and demand for syngas-based products and applications [26]. Building awareness, educating stakeholders, and showcasing the advantages of syngas in terms of emissions reduction, energy security, and cost competitiveness is essential to enhancing performance across syngas supply chains [29]. Establishing favorable policies, financial incentives, and market mechanisms can drive market demand and facilitate the significant integration of syngas into the global energy mix [7].

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4. Linkages between supply chain strategies and energy networks

The transition towards sustainable and low-carbon energy systems requires a deep understanding of the linkages between supply chain strategies and energy networks [49]. Supply chain strategies encompass a range of strategic initiatives deployed in procurement, production, distribution, and logistics [18]. Similarly, energy networks involve energy generation, transmission, and distribution [50]. Understanding the linkages between supply chain strategies and energy networks, including interdependencies, challenges, and opportunities, is crucial for optimizing energy systems, enhancing supply chain efficiency, and achieving sustainability goals [51]. Interdependencies between supply chain strategies and energy networks include procurement, which is energy sourcing, production as energy generation, and distribution encompassing energy transmission. Procurement strategies are vital in determining the energy sources utilized within an energy network [52]. Strategic decisions regarding the sourcing of renewable energy, such as solar, wind, or hydro, versus conventional fossil fuels directly impact the energy network’s environmental sustainability and carbon footprint [51].

Collaborative efforts between supply chain managers and energy network operators are essential for aligning procurement strategies with sustainability objectives, exploring renewable energy options, and ensuring a diversified and reliable energy supply [49]. Production strategies within supply chains are closely linked to energy generation methods [53]. The energy requirements for manufacturing processes, such as heating, cooling, or powering machinery, influence the energy generation choices made by organizations [7]. Optimization of production processes, adoption of energy-efficient technologies, and implementation of onsite renewable energy generation can enhance the energy performance of supply chains [51]. Collaborations between supply chain managers and energy providers can enable the adoption of cleaner and more sustainable energy generation methods, reducing environmental impacts and improving energy efficiency [50]. Additionally, the efficient distribution of goods within supply chains relies on reliable and resilient energy transmission networks [54]. Energy transmission infrastructure, including power lines, substations, and grid systems, enables the transportation of electricity to end-users [7]. Supply chain managers must consider energy transmission networks’ availability, reliability, and capacity to ensure uninterrupted operations [50]. Thus, collaborations between supply chain managers, energy transmission companies, and grid operators are essential for optimizing distribution processes, managing energy demand, and enhancing the resilience of energy networks [50].

Many challenges can be addressed by aligning supply chain strategies and energy networks, such as the lack of integration and collaboration in the network, uncertainty in energy supply and demand, and cost considerations and financial implications. One of the critical challenges in aligning supply chain strategies and energy networks is the lack of integration and collaboration between stakeholders [50]. Traditionally, energy supply chain and energy management have been treated as separate organizational functions. Siloed decision-making processes and fragmented approaches hinder the identification of synergies and optimization opportunities [37]. Overcoming this challenge requires enhanced communication, cross-functional collaboration, and the establishment of shared goals and metrics across the supply chain and energy management functions [34]. Consequently, the dynamic nature of energy markets and the increasing integration of renewable energy sources introduce uncertainty in both energy supply and demand [37]. Fluctuations in renewable energy generation due to weather conditions and variable energy demand patterns pose challenges for supply chain planning and operations [37]. Supply chain strategies need to be flexible and adaptive to accommodate these uncertainties. Therefore, utilizing advanced forecasting techniques, real-time data analytics, and demand-response mechanisms can help mitigate the impacts of energy supply and demand uncertainties on supply chain operations [51]. Integrating sustainable energy solutions into supply chain strategies often involves additional costs and other financial implications [34]. Investments in renewable energy infrastructure, energy-efficient technologies, and energy storage systems may require significant upfront capital. The financial viability and return on investment of such initiatives need to be carefully assessed [35]. Collaborations between supply chain managers and finance departments are crucial for evaluating the cost-benefit trade-offs, identifying financial incentives or subsidies, and developing business models that align supply chain strategies with sustainable energy objectives [50].

Overcoming challenges associated with linking supply chain strategies with energy networks presents opportunities for synergy and optimization through energy-efficient supply chain design, demand-side management, and renewable energy integration and offsetting [36]. Supply chain network design is critical in optimizing energy consumption and reducing environmental impacts [38]. Designing supply chain networks with energy efficiency in mind involves considerations such as facility location, transportation modes, packaging, and inventory management. Implementing strategies such as consolidation of shipments, route optimization, and green logistics practices can minimize energy consumption and greenhouse gas emissions [36]. Therefore, the collaboration between supply chain managers, logistics providers, and energy experts can drive the integration of energy-efficient practices into supply chain design [43]. Demand-side management strategies assist in managing and optimizing energy demand to reduce peak loads, enhance energy efficiency, and support grid stability [39]. Supply chain managers can contribute to demand-side management by aligning production schedules, transportation activities, and facility operations with energy demand patterns [41]. By strategically adjusting energy-intensive operations during off-peak hours or implementing load-shifting techniques, energy supply chains can support a more balanced and efficient use of energy resources [38]. Energy supply chains can contribute to expanding renewable energy generation by integrating onsite systems or participating in purchase agreements [43]. By generating renewable energy or offsetting their energy consumption through renewable energy certificates, energy supply chains can support the growth of clean energy sources and reduce their carbon footprint [38]. Thus, collaborations between supply chain managers, renewable energy providers, and sustainability experts are crucial for identifying viable renewable energy integration opportunities and implementing strategies to improve performance [39].

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5. Supply chain strategies as drivers of performance in syngas networks

Supply chain strategies are critical in optimizing operations and driving performance in syngas networks [49]. The successful integration of syngas into the energy mix requires robust supply chain strategies encompassing procurement, production, distribution, and end-use applications [50]. Table 2 and Figure 2 present the supply chain strategies that can be adopted to address the challenges affecting syngas networks. Procurement and sourcing strategies are identified as some of the most effective supply chain strategies [42, 44, 45, 52, 54]. These strategies include feedback sourcing, management, strategic partnerships, and alliances [45]. The choice of feedstocks and their efficient procurement directly impacts the performance of syngas networks. Effective procurement strategies involve identifying reliable and sustainable sources, establishing long-term supply agreements, and ensuring feedstock quality and consistency [54]. Collaborative efforts between syngas producers, feedstock suppliers, and regulatory bodies drive the development of sustainable feedstock management practices, such as feedstock blending, waste-to-energy conversion, or biomass cultivation, which enhance the reliability and sustainability of feedstock supply [42]. Further, strategic partnerships and alliances with suppliers, technology providers, and research institutions can unlock synergies and drive performance improvements in syngas networks [52]. Collaborative relationships enable knowledge sharing, technology transfer, and access to innovative solutions [44]. Establishing strategic partnerships can also enhance supply chain resilience by mitigating supply disruptions, improving access to critical resources, and enabling joint research and development efforts for continuous improvement and optimization [42].

Figure 2.

Supply chain strategies for improving performance in syngas networks.

Production strategies are also effective in deriving supply chain performance [45, 46, 54, 55]. These strategies include technology selection, optimization, process integration, and efficiency improvement [56]. Gasification technology selection is a crucial aspect of production strategies in syngas networks [55]. Different gasification technologies have varying efficiency, scalability, and feedstock compatibility [56]. Evaluating and selecting the most suitable gasification technology based on feedstock characteristics, network requirements, and sustainability objectives is essential [54]. Optimizing gasification processes, including reactor design, operating conditions, and catalyst selection, can enhance syngas production efficiency, reduce emissions, and improve overall network performance [46]. Integrating syngas production processes with other industrial operations or energy systems can unlock efficiency gains and resource utilization opportunities [54]. Waste heat recovery, cogeneration, or integration with combined heat and power systems can enhance energy efficiency, reduce energy costs, and improve overall process performance [46]. Further, process optimization techniques, such as advanced control systems, real-time monitoring, and predictive analytics, enable continuous improvement and enhance the performance of syngas production processes [45].

Distribution and logistics strategies are utilized in supply chains to boost performance [30, 53, 57, 58]. These strategies include infrastructure development, optimization, supply chain visibility, and collaboration [30]. Syngas’s efficient distribution and logistics require a well-designed infrastructure and optimized transportation networks [53]. Developing dedicated pipelines or retrofitting existing infrastructure ensures the safe and reliable transmission of syngas [58]. Optimal pipeline routing, capacity planning, and compression strategies are crucial to minimize energy losses and maximize network efficiency [57]. Additionally, the integration of advanced monitoring and control systems enables real-time optimization. It improves the reliability and responsiveness of the distribution network [53]. Supply chain visibility and stakeholder collaboration are vital strategies for improving logistics and distribution performance in syngas networks [30]. Real-time data sharing, supply chain analytics, and collaborative platforms enhance coordination, enable demand forecasting, and optimization of transportation and inventory management [58]. Collaborations between syngas producers, distributors, and end-users can streamline operations, reduce inefficiencies, and enhance overall supply chain performance [57].

End-use adoption strategies, such as market development, demand creation, technology integration, and innovation, can enhance supply chains [59]. Practical strategies for end-use applications are crucial for creating and expanding market demand for syngas-based products and services [60]. Syngas can be utilized in various sectors, such as power generation, chemical manufacturing, or transportation [59]. Market development efforts include identifying target industries, conducting market assessments, and developing tailored marketing and sales strategies [55]. Thus, the collaboration between syngas producers, equipment manufacturers, and industry associations is essential for promoting syngas deployment, and showcasing its benefits to drive market adoption [56]. However, the integration of syngas into end-use applications requires the utilization of advanced technologies and innovation [61]. Collaborations with technology providers, research institutions, and end-users facilitate the identification of technological tools, developing customized solutions to demonstrate syngas feasibility [56]. Technological integration strategies encompass retrofitting existing equipment, developing new conversion technologies, and exploring synergies with emerging trends such as carbon capture and utilization [55]. Embracing technological innovation enhances syngas-based end-use applications’ performance, efficiency, and sustainability [61].

Once the relevant supply chain strategies are implemented, developing related key performance indicators and metrics is crucial for measuring and evaluating the performance of syngas networks [62]. The key performance indicators may include energy efficiency, carbon emissions, feedstock utilization, network reliability, and customer satisfaction [63]. Performance measurement provides insights into the effectiveness of supply chain strategies, identifies areas for improvement, and enables benchmarking against industry standards [64]. Continuous monitoring and analysis of performance metrics enable proactive decision-making and the identification of opportunities for further optimization [65]. Additionally, establishing a continuous improvement and innovation culture is essential for driving performance in syngas networks [62]. Supply chain managers should encourage experimentation, foster a learning environment, and facilitate knowledge sharing among stakeholders [64]. Embracing technological advancements, industry best practices, and sustainability practices enable the identification of innovative strategies, process improvements, and adoption of emerging technologies that enhance overall network performance [66].

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6. Directions for future research and development on syngas supply chains

Syngas supply chain network is a complex and evolving area that requires continuous research and development to address emerging challenges, optimize operations, and drive performance and sustainability [19]. Future studies on syngas networks should explore advanced and innovative supply chain initiatives, such as integrating renewable energy sources into the networks, supply chain digitalization, and circular economy approaches [67]. Integrating renewable energy sources into syngas supply chains represents a promising avenue for future research. Renewable energy technologies, such as solar, wind, and biomass, can be utilized for syngas production, reducing the reliance on fossil fuels, and mitigating environmental impacts [68]. Research efforts should focus on exploring advanced gasification technologies, optimizing the integration of renewable energy sources with syngas production processes, and assessing such integration’s environmental, social, and economic benefits [69]. Investigating the role of energy storage systems, innovative grid technologies, and demand response mechanisms in enabling efficient and reliable syngas production from renewable sources would contribute to developing sustainable syngas supply chains [67]. The digital transformation of supply chains presents numerous opportunities for enhancing syngas supply chains’ efficiency, transparency, and resilience [70]. Future studies should consider investigating the application of emerging technologies, such as blockchain, internet of things, artificial intelligence, and data analytics, to improve supply chain visibility, optimize inventory management, enable real-time monitoring of processes, and facilitate seamless collaboration among stakeholders [71]. Studies that will integrate digital platforms and predictive modeling techniques can support demand forecasting, risk management, and decision-making processes in syngas supply chains [72]. Research on the implementation challenges, data privacy and security considerations, and the potential for scaling up digital solutions in the context of syngas supply chains are lacking [73]. Adopting circular economy principles in syngas supply chains can promote resource efficiency, waste reduction, and the valorization of by-products [74]. Future research should explore strategies for waste-to-energy conversion, using carbon capture and utilization technologies and developing symbiotic relationships between syngas producers and other industries [75]. Investigating the economic feasibility, environmental impacts, and regulatory frameworks surrounding the integration of circular economy approaches in supply chains is essential [76]. Future research should explore the potential for industrial symbiosis and identify opportunities to co-utilize waste streams or by-products from different sectors to contribute to developing sustainable syngas supply chains [77].

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7. Conclusions

This chapter has explored various aspects of syngas supply chains, including the various value chains across the supply networks, challenges, linkages with energy networks, supply chain strategies, and proposed future research directions. The study of syngas supply chains is critical in the quest for sustainable energy solutions and the transition towards a low-carbon future [19]. Syngas supply chains are complex networks involving feedstock sourcing, production processes, distribution, and end-use adoptions [3]. The study has identified and analyzed the stakeholders involved, the flow of materials and information, and the interdependencies among different value chains across syngas networks [19]. The analysis revealed the complexities and opportunities within the syngas networks [20]. The challenges associated with syngas supply chains are multifaceted and require a strategic approach for effective management [19]. These challenges include feedstock availability, infrastructure development, and market adoption [20]. The challenges require innovative solutions and stakeholder collaborations to ensure a reliable and sustainable syngas supply [7]. The linkages between supply chain strategies and energy networks have been highlighted as crucial for optimizing syngas supply chains. The application of supply chain strategies on syngas networks will enable participants to enhance operational efficiency, promote renewable energy integration, and contribute to the overall stability and security of energy systems [51]. Collaboration, market development efforts, technological integration, and performance measurement are essential strategies for enhancing the performance of syngas networks [49]. Supply chain strategies play a significant role in driving performance in syngas networks. Effective procurement, production, distribution, and end-use adoption strategies can enhance efficiency, sustainability, and network performance [42]. Feedstock sourcing, strategic partnerships, infrastructure development, supply chain visibility, market development, technological integration, and continuous improvement initiatives are vital for achieving optimal performance [56]. There are several directions for research development in syngas supply chains. This includes integrating renewable energy sources, such as solar, wind, and biomass, which promises to reduce reliance on fossil fuels and mitigate environmental impacts [67]. Digitalization of supply chains offers further opportunities for improving visibility, efficiency, and collaboration among stakeholders [70]. Adopting circular economy principles can enhance resource efficiency, waste reduction, and the valorization of by-products [74].

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Acknowledgments

The research leading to these results has received funding from the Ministry of Higher Education, Research and Innovation (MoHERI) of the Sultanate of Oman under the Block Funding Program. MoHERI Block Funding Agreement No MoHERI/BFP/MUSCATUNIVERSITY/01/2020.

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Written By

Nasiru Zubairu and Mira Al Balushi

Submitted: 14 June 2023 Reviewed: 15 June 2023 Published: 18 August 2023