Development of an integrated network for utility supply and carbon dioxide mitigation systems: applicability of biodiesel production

Abstract

This study develops a deterministic model for optimal design of an integrated network to determine the utility supply (US) and CO2 mitigation (CM) systems in consideration of technology to utilize CO2 as a raw material. The objective of the model is to minimize the expected total cost of an integrated network that satisfies US and CM demands of multi-site companies in an industrial complex during a multi-period planning horizon. This model determines the optimal locations and amounts of: (1) the utility (steam) transferred among companies, and (2) CO2 storage (CS) and (3) CO2 utilization (CU) considering CO2 capture (CC) systems. The proposed model is tested by applying it to Yeosu Industrial Complex in Korea. The total cost for the Alternative Model that considers CS and CU systems (US$ 411.62 × 106/y) is 24.9% (US$ 136.49 × 106/y difference) lower than the Base Model that considers only the CS system (US$ 548.11 × 106/y). The most prominent difference between two models was the variation in the CM system. This study examined whether the variation of the integrated network would be affected by the variety of CM systems, and confirmed that CO2 was supplied to produce maximum biodiesel yield when the CU system was selected. This result would be interested in many researchers to study the supply chain network problem over multi-site and multi-period planning horizon while considering the capability of biodiesel production based on CO2 as a raw material.