Optimal running and planning of a biomass-based energy production process

We propose mathematical programming models for solving problems arising from planning and running an energy production process based on burning biomasses. The models take into account different aspects of the problem: determination of the biomasses to produce and/or buy, transportation decisions to convey the materials to the respective plants, and plant site locations. Whereas the "running model" is linear, we propose two "planning models", both of which are mixed-integer nonlinear programming problems. We show that a spatial branch-and-bound type algorithm applied to them is guaranteed to converge to an exact optimum in a finite number of steps.