Towards Commercial Lignin-Based Polymers: Supply Chain Cost Minimization

This paper presents critical information about variable cost, capacity, and supply chain design for the renewable production of phenols and polyols from kraft lignin (KL) in Canada. The technology proposed here is a low-pressure/low-temperature approach that results in DKL (depolymerized kraft lignin), a bioproduct with the economic and technical capability to compete with non-renewable alternatives. The supply chain variable cost minimization model developed in this study was applied to several demand scenarios (20% to 50%) for a case study of the Canadian kraft pulp industry. At 30% polyols and phenols demand, the model installs eight biorefineries, resulting in a DKL minimum selling price varying from: 1,573 US$/t to 1,108 US$/t for small to large capacities respectively. Both capacity and transport cost impact the feasibility of DKL.