Resource integration of industrial parks over time

Abstract

Resource integration allows industries to foster circular operations that lead to the creation of sustainable systems. Industrial parks integrate multiple processes in this manner to achieve greater cumulative economic and environmental benefits that surpasses those achieved by the independent operation of these processes. Over time, technological advancements, market fluctuations, and regulatory modifications can cause the processes and resources that make up a network to change. A multi-period resource integration approach is proposed in this work to understand the design and performance of an industrial park over time. Resource and cash flows within the network are optimized using a mixed integer linear program for a set objective function that considers the time value of money and the interaction of resources across time. Various scenarios can be analyzed by managing specific periods or the entire planning horizon considered. The model identifies the optimal network configuration that meets all specified constraints in each period, thereby planning its design over a time horizon. The approach is illustrated on a natural gas receiving network that implements carbon taxes and caps along with carbon capture utilization and storage (CCUS) to manage its emissions. The network was optimized from the perspective of two stakeholders, where maximizing the net present value (NPV) of the tax authority (government) resulted in the creation of more emissions, while maximizing the NPV of the park management systematically managed emissions by imposing CO2 reduction targets.