A mixed integer non-linear programming model for tactical value chain optimization of a wood biomass power plant

► Developed a mathematical model to optimize the supply chain of a forest biomass power plant. ► Considered supply, storage, production and ash management. ► The model provided more profit compared to the actual profit of the company. ► Biomass purchase cost had the highest share in total cost. ► In...

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Bibliographic Details
Published in:Applied energy Vol. 104; pp. 353 - 361
Main Authors: Shabani, Nazanin, Sowlati, Taraneh
Format: Journal Article
Language:English
Published: Kidlington Elsevier Ltd 01.04.2013
Elsevier
Subjects:
algorithms
Applied sciences
Ashes
Biomass
Canada
computer software
economic systems
ecosystem services
Electric power generation
Electric power plants
Electricity
Energy
Exact sciences and technology
Forest biomass power plant
Forests
Mathematical models
Mathematical programming
Natural energy
Non-linear mixed integer programming
nonlinear models
Optimization
power plants
Renewable energy
renewable energy sources
supply chain
Supply chain management
Supply chains
transportation
wood
Canada
Forest biomass power plant
Supply chain management
Renewable energy
Optimization
Non-linear mixed integer programming
Mathematical programming
Electric power plant
Wood
Supply
Linear programming
Non linear programming
Biomass
Non linear model
ISSN:0306-2619, 1872-9118
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Summary:► Developed a mathematical model to optimize the supply chain of a forest biomass power plant. ► Considered supply, storage, production and ash management. ► The model provided more profit compared to the actual profit of the company. ► Biomass purchase cost had the highest share in total cost. ► Investing in a new ash recovery system has environmental and economic benefits. Forest biomass is one of the renewable sources of energy that has been used for generating electricity. The feasibility and cost of producing electricity from forest biomass depend on long term availability of biomass, its cost and quality, and the cost of collecting, pre-processing, handling, transportation, and storage of forest biomass, in addition to the operating and maintenance costs of the conversion facility. To improve the cost competitiveness of forest biomass for electricity generation, mathematical programming models can be used to manage and optimize its supply chain. In this paper, the supply chain configuration of a typical forest biomass power plant is presented and a dynamic optimization model is developed to maximize the overall value of the supply chain. The model considers biomass procurement, storage, energy production and ash management in an integrated framework at the tactical level. The developed model is a nonlinear mixed integer programming which is solved using the outer approximation algorithm provided in AIMMS software package. It is then applied to optimize the supply chain of a real biomass power plant in Canada. The optimum solution provides more profit compared to the actual profit of the power plant. Different scenarios for maximum available supply and also investment in a new ash recovery system were evaluated and the results were analyzed. The model in particular shows that investment in a new ash recovery system has economic as well as environmental benefits for the power plant.
Bibliography:http://dx.doi.org/10.1016/j.apenergy.2012.11.013
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ISSN:0306-2619
1872-9118
DOI:10.1016/j.apenergy.2012.11.013