Multi-Objective Optimization of Production Cost and Carbon Loss in the U.S. Petrochemicals Industry

Probing the Impact of an Energy and Transportation Paradigm Shift on the Petrochemicals Industry

“…The directed graph edges are then characterized by material and energy flow rates, and (for some applications) transportation capacities and cost. The model is then formulated as a superstructure of commercially viable processes 28 that allows for determining the optimal configuration of the industry network by solving an optimization problem to minimize a given industry-wide objective, subject to material balance constraints, as well as supply limitations and demand requirements. The solution of the optimization problem determines the optimal production levels for each process technology, as well as material flows in the network.…”

“…The data used for the model (e.g., process stoichiometries and costs) have been obtained from the IHS 2012 Process Economic Yearbook. 28 viable processes available to the bulk petrochemicals and refining industry, including polymer products.…”

“…The process cost C j consists of a fixed component and variable component. 28 The fixed component includes the capital investment, expressed as straight-line depreciation over a 10-year period, as well as fixed operating costs, such as maintenance, labor, overhead, and taxes, based on an average scale plant. The variable component includes raw material costs, byproduct credits, and utilities cost.…”

“…In this paper, we use a production cost minimization objective, but alternative or multiple objectives can be used. For example, Giannikopoulos et al have developed a multiobjective industry network model that considers the minimization of both the total industry cost, as well as the total carbon loss (e.g., as CO 2 emissions) in the network, which accounts for both feedstock carbon and fuel carbon consumed to cover energy needs. Studies performed using network models often focus on the industry response to some perturbation, such as evaluation of the impact of adding new technology, changes in supply and demand, or variations in materials pricing or production costs.…”