Linking a farm model and a location optimization model for evaluating energetic and material straw valorization pathways—A case study in Baden‐Wuerttemberg

Diminishing fossil carbon resources, global warming, and increasing material and energy needs urge for the rapid development of a bioeconomy. Biomass feedstock from agro‐industrial value chains provides opportunities for energy and material production, potentially leading to competition with traditional food and feed production. Simulation and optimization models can support the evaluation of biomass value chains and identify bioeconomy development paths, potentials, opportunities, and risks. This study presents the linkage of a farm model (EFEM) and a techno‐economic location optimization model (BIOLOCATE) for evaluating the straw‐to‐energy and the innovative straw‐to‐chemical value chains in the German federal state of Baden‐Wuerttemberg taking into account the spatially distributed and price‐sensitive nature of straw supply. The general results reveal the basic trade‐off between economies of scale of the energy production plants and the biorefineries on the one hand and the feedstock supply costs on the other hand. The results of the farm model highlight the competition for land between traditional agricultural biomass utilization such as food and feed and innovative biomass‐to‐energy and biomass‐to‐chemical value chains. Additionally, farm‐modeling scenarios illustrate the effect of farm specialization and regional differences on straw supply for biomass value chains as well as the effect of high straw prices on crop choices. The technological modeling results show that straw combustion could cover approximately 2% of Baden‐Wuerttemberg's gross electricity consumption and approximately 35% of the district heating consumption. The lignocellulose biorefinery location and size are affected by the price sensitivity of the straw supply and are only profitable for high output prices of organosolv lignin. The location optimization results illustrate that economic and political framework conditions affect the regional distribution of biomass straw conversion plants, thus favoring decentralized value chain structures in contrast to technological economies of scale. Agricultural biomass plays a key role in the transition towards the bioeconomy. Competition in the usage of biomass and decentralized conversion combined with high transportation costs affect the economic profitability of such value chains. By connecting a farm model and a location optimization model, this study evaluates the regional straw‐to‐energy and the innovative straw‐to‐chemicals pathway cons