Coupling effect between waste heat recovery and government subsidy with supply chain as a pivot

Abstract

Waste heat recovery emerges as a promising solution for addressing energy shortages and environmental pollution. However, its viability is hampered by high operational expenses, formidable technical barriers, and substantial capital requirements, rendering it economically daunting without government support. A considerable volume of underutilized low-grade waste heat persists, and viable commercial solutions are wanting. In response, we propose two waste heat recovery modes. One involves entrusting distributors to collectively engage in waste heat recovery alongside suppliers who directly recover waste heat, called Supper-Distributor (SD) mode. The other emphasizes suppliers focusing on their core products while entrusting distributors and specialized third-party waste heat recovery companies to collaboratively manage waste heat recovery, with the aim of fostering waste heat recovery proliferation and expanding its market scope, called Third-party-Distributor (TD) mode. Numerical analysis based on real-world data substantiates the pivotal roles of government subsidies, supply chain decision-making, and the market dimensions of waste heat recovery in the profitability of the waste heat recovery supply chain. Following optimization of both modes, we conclude that the cost of recovered waste heat is lower than that of electricity for end-users. Furthermore, a waste heat recovery landscape spearheaded by third-party recycling companies outperforms others in terms of energy conservation and emissions reduction.