Pipesharing: economic-environmental benefits from transporting biofuels through multiproduct pipelines

As the most potential renewable energy, biofuel energy has become the fourth largest energy source after coal, oil and natural gas. Promoting the extensive application of biofuels is an effective way to reduce carbon emissions. Pipeline is one of the most efficient ways to transport large-volume fuels over long distances. Transporting biofuels through the existing multiproduct pipelines is in line with the requirements of environmental protection, energy saving and low-carbon economy. To determine the surplus capacity of pipelines in a certain period is the premise of adopting this mode to transfer biofuels. This study develops a method for estimating the capacity of pipelines for biofuel transport, accounting for clients' demand for petroleum products, the capacity limitations of existing pipeline equipment and transport cycle of biofuels in the pipeline. Using the data from practical pipelines, their monthly surplus capacity is within the range of 15 x 10(4) to 80 x 10(4) m(3). It is turned out that pipeline length, transportation capacity of power equipment and market demand of refined products are the dominating factors for surplus capacity. Assuming varying demand on refined products, sensitivity analysis is conducted to compare the economic-environmental benefits from sharing pipeline's surplus capacity with biofuel shipment. The simulation results show that pipeline sharing brings about win-win effects for both petroleum and pipeline companies. The petroleum company has a reduction of 1.2%-34.9% in carbon emissions and 0.3%-14.7% in logistics cost, while the pipeline operator increases revenue by 0.4%-33.7%.

Automated summary

Biofuel energy is recognized as a highly promising renewable energy source and promoting its extensive application can effectively reduce carbon emissions. Using existing pipelines for biofuel transportation not only meets environmental requirements, but also makes use of surplus pipeline capacity. This study developed a method to estimate the capacity of pipelines for biofuel transport, taking into account factors such as client demand, pipeline equipment limitations, and transport cycles. Results showed that pipeline length, equipment capacity, and market demand were the dominant factors affecting surplus capacity. Sharing pipeline capacity for biofuel shipment brings about economic and environmental benefits for both petroleum and pipeline companies.