Optimal Renewable Energy Integration into Refinery with CO2 Emissions Consideration: An Economic Feasibility Study

Abstract

With increasing global energy demand and declining energy return on energy invested (EROEI) of crude oil, global energy consumption by the O&G industry has increased drastically over the past few years. In addition, this energy increase has led to an increase GHG emissions, resulting in adverse environmental effects. On the other hand, electricity generation through renewable resources have become relatively cost competitive to fossil based energy sources in a much ‘cleaner’ way. In this study, renewable energy is integrated optimally into a refinery considering costs and CO2 emissions. Using Aspen HYSYS, a refinery in the Middle East was simulated to estimate the energy demand by different processing units. An LP problem was formulated based on existing solar energy systems and wind potential in the region. The multi-objective function, minimizing cost as well as CO2 emissions, was solved using GAMS to determine optimal energy distribution from each energy source to units within the refinery. Additionally, an economic feasibility study was carried out to determine the viability of renewable energy technology project implementation to overcome energy requirement of the refinery. Electricity generation through all renewable energy sources considered (i.e. solar PV, solar CSP and wind) were found feasible based on their low levelized cost of electricity (LCOE). The payback period for a Solar CSP project, with an annual capacity of about 411 GWh and a lifetime of 30 years, was found to be 10 years. In contrast, the payback period for Solar PV and Wind were calculated to be 7 and 6 years, respectively. This opens up possibilities for integrating renewables into the refining sector as well as optimizing multiple energy carrier systems within the crude oil industry