Co-digestion of sewage sludge with food waste is a beneficial pathway for sewage plants to enhance their biogas yield. This paper employs hybrid programming with system dynamics simulation to optimize such a co-digestion system from the perspective of demand-oriented biogas supply chain, thus to improve the efficiency of the biogas utilization. The optimum operational parameters of the co-digestion system are derived from the simulation model. It is demonstrated that the demand-oriented biogas supply mechanism can be effectively driven under market-oriented incentive policy. For better compensation of the external cost to assist the operations of the co-digestion supply chain, it is suggested that the substrate collection and transportation subsidy should be combined with the renewables portfolio standard to be implemented as the optimum incentives. The limitations of the study are discussed to lay the foundation for future improvements.
Keywords: Co-digestion; demand oriented; optimization; supply chain; system dynamics.