The economic impact of new chemical technology

Fathi-Afshar, Saeed; Rudd, Dale F.

doi:10.1016/0009-2509(81)80176-5

Cited by 13 publications

(11 citation statements)

References 4 publications

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“…Previous work in this context (e.g., Rudd et al, Fathi-Afshar and Rudd, and Floudas et al) has assumed the net process costs C j to be constant and independent of the production levels X j . However, this is not entirely accurate and leads to the model being unresponsive toward upstream price changes of exogenous raw materials or changes caused in the prices of intermediates by the insertion and adoption of a new process in the network.…”

Section: Model Detailsmentioning

confidence: 99%

“…For materials that are produced only as main products, eq 4 will be an active constraint, since excess production will increase the value of the objective function, which represents the total cost. However, for materials 21 Fathi-Afshar and Rudd, 22 and Floudas et al 34 ) has assumed the net process costs C j to be constant and independent of the production levels X j . However, this is not entirely accurate and leads to the model being unresponsive toward upstream price changes of exogenous raw materials or changes caused in the prices of intermediates by the insertion and adoption of a new process in the network.…”

Section: Model Detailsmentioning

confidence: 99%

“…The network model approach for representing the hydrocarbon processing industry was pioneered by Stadtherr and Rudd − and colleagues, who focused initially on minimization of resource usage as a driving force and subsequently on minimization of industry cost, with studies on industrial development, , impact of new technologies, , future trends and planning, , and the effect of chemical toxicity regulations . Many variations, extensions, and applications of this initial work have subsequently appeared, a selection of which are noted here.…”

Section: Introductionmentioning

confidence: 99%

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Systems Analysis of Natural Gas Liquid Resources for Chemical Manufacturing: Strategic Utilization of Ethane

Skouteris

Giannikopoulos

Edgar

et al. 2021

Ind. Eng. Chem. Res.

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The increasing production of shale gas and, consequently, natural gas liquids (NGLs) provides opportunities to expand the U.S. chemical industry, leading to questions about how to best use these resources. We consider targets for the strategic use of ethane, the most abundant of the NGLs, by evaluating the impact of a potential, new catalytic dehydrogenation technology for converting ethane to ethylene and then evaluating potential, new catalytic oligomerization processes for converting ethylene to 1-butylene and to 1-octene. To conduct these evaluations, we introduce a new, nonlinear, industry-wide, optimization-based network model of the U.S. petrochemical and refining industries. Unlike previous linear models of this type, the nonlinear model accounts for changes in intermediate prices and, thus, process costs as new technology is added to the industry network. A method for propagating cost and price changes, permitting the solution of the nonlinear optimization problem as a sequence of linear problems, is developed and utilized. Using network models for this study, we account for and identify the direct and secondary consequences of introducing new technology on the rest of the industry. For each new technology evaluated, we determine the production level of the technology in the optimal industry network. By doing this over a wide range of net process cost points, a maximum adoption cost (the net process cost beyond which the technology would not be adopted) can be identified, and its sensitivity to the assumed product yield determined for each new technology can be studied. The maximum adoption costs can be viewed as targets for future catalyst research, reaction engineering, and process development work. Scenarios in which the ethane supply is constrained to current values and in which it is unconstrained are considered.

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Section: Model Detailsmentioning

confidence: 99%

Section: Model Detailsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Systems Analysis of Natural Gas Liquid Resources for Chemical Manufacturing: Strategic Utilization of Ethane

Skouteris

Giannikopoulos

Edgar

et al. 2021

Ind. Eng. Chem. Res.

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show abstract

“…The three different cases were solved individually to obtain the optimal industry configuration for each case and then as a multiobjective program. Rudd et al 20 developed a cost-based model that was then used by Fathi-Afshar et al 21 to study the introduction of new technologies into the existing network. It was also demonstrated 22 how this model could be used for long-term industry planning and to study 23 the impact of restrictions on the use of toxic substances.…”

Section: Introductionmentioning

confidence: 99%

Geospatial Network Approach for Assessing Economic Potential of Ethylene-to-Fuel Technology in the Marcellus Shale Region

Giannikopoulos

Skouteris

Edgar

et al. 2021

Ind. Eng. Chem. Res.

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The Marcellus Shale region is rich in natural gas liquids (NGLs) and a likely future hub for NGL derivatives such as ethylene. A geospatial network model of the U.S. petrochemicals and refining industry is developed and utilized to assess the potential for the adoption of a technology for oligomerization of ethylene to gasoline, or a gasoline blend stock, as a means to utilize NGL derivatives available in the region. The model is a mixed-integer linear program with the objective of minimizing the total annual cost incurred by the regional industry. Case studies in which this technology is added to the industry network model are described, and sensitivity analyses are conducted to investigate the effect of model parameters such as the prices of crude oil and ethylene. These results can be used as cost target benchmarks for this new technology. More broadly, this work demonstrates a geospatial network modeling approach for evaluating new processing technology.

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“…Many economical objectives were used in industry planning. Examples are: minimum cost (Fathi-Afshar and Rudd, 1981;De Santiago et al, 1986;Bagajewicz and Cabrera, 2003); maximum profit (Song et al, 2002;Bonfill et al, 2004); maximum net present value (Rodera et al, 2002). On the other hand, many safety or hazard indices were used for planning.…”

Section: Introductionmentioning

confidence: 99%

Decision-making for Petrochemical Planning Using Multiobjective and Strategic Tools

Al-Sharrah

Hankinson

Elkamel

2006

Chemical Engineering Research and Design

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The economic impact of new chemical technology

Cited by 13 publications

References 4 publications

Systems Analysis of Natural Gas Liquid Resources for Chemical Manufacturing: Strategic Utilization of Ethane

Systems Analysis of Natural Gas Liquid Resources for Chemical Manufacturing: Strategic Utilization of Ethane

Geospatial Network Approach for Assessing Economic Potential of Ethylene-to-Fuel Technology in the Marcellus Shale Region

Decision-making for Petrochemical Planning Using Multiobjective and Strategic Tools

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