Competitive priorities to address optimisation in biomass value chains: The case of biomass CHP

Policy and industry decision makers place high priority on the contribution of biomass to the emerging low carbon, circular economy. Optimisation of performance, from the perspectives of environmental, social and economic sustainability and resource efficiency, is essential to successful development and operation of biomass value chains. The complexity of value chains, which comprise interrelated stages from land use to conversion and multiple end products, presents challenges.To date, decision makers have approached from the viewpoints of single market sectors or issues, such as market shares of bioeconomy and reduction of carbon emissions to mitigate climate change. This approach does not achieve a full understanding of value chains and their competitive priorities, limits consumer awareness, and poses risks of sub-optimal performance and under-development of potential local capacity.This paper presents a conceptual framework that combines value chain analysis and competitive priority theory with indicators suitable to measure, monitor and interpret sustainability and resource efficiency at value chain level. The case of biomass Combined Heat and Power (CHP) is used to illustrate how optimisation strategies can be focused to address challenges in value chain stages which will lead to better performance and uptake of sustainably sourced, widely accepted biomass options. Highlights •Biomass is a key component in policy for low carbon and circular economy.•Decision makers are increasingly exploring varied, innovative value chains with high complexity.•They face challenges with sustainability, fragmented metrics, and decisions often lack coherent systems thinking.•This prevents developing optimisation strategies to overcome challenges and create value at local level.•This paper combines value chain and competitive priority theory to assess performance and enable efficient decision making.