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Minsoo Kim a,1 , Kyobum Kim b,1 , Tae-hyun Kim c , Jiyong Kim a,∗
a Department of Energy and Chemical Engineering, Innovation Center for Chemical Engineering, Incheon National
University, Incheon 22012, Republic of Korea
b Division of Bioengineering, College of Life Sciences and Bioengineering, Incheon National University, Incheon
Republic of Korea
a r t i c l e i n f o a b s t r a c t
Article history: The recent focus on energy-related environmental issues, such as the depletion of fossil fuels
Received 31 January 2019 and the climate change, has led to a pressing need for sustainable energy supply systems.
Received in revised form 11 April Existing systems may, in theory, be revamped into sustainable systems by including new
2019 components such as renewable energy sources (RES) and carbon capture and utilization
Accepted 4 May 2019 (CCU) frameworks. However, economically and environmentally optimal mechanisms for
Available online 10 May 2019 the integration of RES and CCU frameworks into existing energy systems have yet to be
determined. Therefore, this study presents a new approach to sustainable energy supply
Keywords: systems by integrating a RES-based system with existing technologies, coupled with a CCU
Renewable energy framework. To address both economic and environmental benefits of the proposed system,
Carbon capture and utilization a multi-objective optimization technique comprising two objective functions (total daily
CO2 reduction cost and the total CO2 emission) was developed using a mixed integer linear programming
Multi-objective optimization (MILP). The capability of the proposed model is illustrated by a case study of the future
Integration transportation sector in Korea. The Pareto solutions for the optimal energy supply system
were identified according to CO2 reduction targets under different energy price scenarios.
© 2019 Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.
∗
Corresponding author.
E-mail address: jykim77@inu.ac.kr (J. Kim).
1
These authors contributed equally to this work.
https://doi.org/10.1016/j.cherd.2019.05.008
0263-8762/© 2019 Institution of Chemical Engineers. Published by Elsevier B.V. All rights reserved.
Chemical Engineering Research and Design 1 4 7 ( 2 0 1 9 ) 200–213 201
Index Abbreviation
i ∈ I Facilities CCU Carbon capture and utilization
j ∈ J Regions CO2 Carbon dioxide
k ∈ K Transportation modes H2 Hydrogen
l ∈ L Products MILP Mixed integer linear programming
m ∈ M Resources RES Renewable energy resources
SI Supplementary information
Set
IPl Energy production facility for product l
ISl Intermediate storage facility for product l
ICl Capture facility for product l
Kl Transportation mode for product l and Seker, 2016; Bhattacharya et al., 2016). However, it does not provide
Km Transportation mode for resource m an optimal solution for sustainable energy systems without any inte-
LE Electricity gration with existing systems, due to high production costs and the
LH H2 intermittency of renewable resources (Kim and Kim, 2017).
A large number of studies addressing this environmental issue have
LF Liquid fuel
been reported in the literature: improvements in performance of CCU
LC CO2
technology (Mallapragada et al., 2013; Susarla et al., 2015; Li et al.,
MB Biomass
2016); a techno-economic evaluation of CCU technology (Ampelli et al.,
MC Coal 2015; Roh et al., 2018); an integration of various renewable resources
MN Natural gas (Won et al., 2017; Xu et al., 2018; Feroldi et al., 2013; Han et al., 2017);
an analysis of the feasibility of renewable energy systems (Sanjoy
Parameter and Himangshu, 2010; Wan et al., 2016; Cho and Kim, 2015). Notably,
ˇjj Transportation distance between regions, j and there are many studies on CCU design for CO2 removal and utilization
j’ (Lee et al., 2017; Dehjalali and Avami, 2018; Mechleri et al., 2017) and
i Capital cost of facility i the design of renewable energy supply systems (Kim and Kim, 2016;
ϑi Unit operating cost of facility i Ascenso et al., 2018; Zulkafli and Kopanos, 2017). However, these studies
l Unit purchase cost of product l have focused on individual CCU technologies or renewable resource-
based energy to reduce CO2 emissions efficiently. Only a few studies
m Unit purchase cost of resource m
have identified opportunities for the integration of renewable energy
l Unit sequestration cost of product l
systems coupled with CCU frameworks (Almansoori and Betancourt-
i CO2 emission factor of facility i
Torcat, 2015; Vidal-Amaro et al., 2015).
CCF Capital charge factor In general, conventional resource-based energy production is more
economical than renewable resource-based energy production, while
Continuous variable the former emits significantly more CO2 than the latter. This means
Ajl Amount of product l suppled from outside in that in order to establish an eco-friendly sustainable energy system,
region j CCU framework should be incorporated simultaneously into renew-
Cijl Amount of product l captured by facility i in able resource-based energy production as well as into conventional
region j resource-based energy production. It is for this reason that there is
FCC Total capital cost of facility a need to establish appropriate methodologies for combining and
FOC Total operating cost of facility integrating these technology frameworks, towards achieving a cost-
effective energy supply system.
Iijl Inventory of product l in facility i in region j
Our previous study presented a new system integrating renew-
Pijl Amount of product l produced by facility i in
able resource and conventional energy production coupled with CCU
region j
framework (IRCEC) (Kim et al., 2017). To identify the optimal system
Rijlm Amount of resource m used in facility i for prod- configuration from the economic perspective, the objective function
uct l in region j was set to minimize the total expected cost subject to various prac-
Sjl Amount of product l sequestrated in region j tical and logical constraints. The previous study provided a suitable
TCC Total capital cost of transportation mode baseline approach to design the IRCEC system, which is capable of (i)
TCE Total CO2 emission identifying the cost-centric design strategy of the IRCEC system and
TDC Total daily cost (ii) analyzing the effect of different regulations for CO2 reduction on
TOC Total operating cost of transportation mode the system economics. However, the proposed approach needs to be
TOCelectricity/fuel Total operating cost of transportation improved to deal with critical issues that may arise in the design and
operation stages of the IRCEC system; for instance, (i) to determine
mode for electricity and liquid fuel
the optimal solutions for planning the IRCEC system, corresponding
TOCresources Total operating cost of transportation mode
to the implementation of environmental policy and regulation (e.g.,
for resources
the Kyoto Protocol and Paris Agreement), and (ii) to quantify the eco-
TPC Total CO2 purchase cost nomic and environmental effects of externalities (e.g. energy price
TRC Total primary resource cost and CO2 reduction regulation) on the system structure. Accordingly,
TSC Total CO2 sequestration cost this study presents a new design and analysis approach for the IRCEC
system using a multi-objective optimization technique. The proposed
Integer variable approach is capable of (i) identifying a trade-off between cost and CO2
NFijl Number of facilities i for product l in region j reduction (namely, cost-effectiveness of CO2 reduction), (ii) quantita-
NPjj kl Number of transportation mode k for product l tively assessing the contribution of RES and CCU frameworks to CO2
that connect the regions, j and j’ reduction, (iii) analyzing the effects of different CO2 reduction targets
and energy prices on the economic and environmental benefits.
202 Chemical Engineering Research and Design 1 4 7 ( 2 0 1 9 ) 200–213
2. Problem statement
thereby requiring no transportation cost between the CO2 where CCF (capital charge factor) is multiplied by FCC and
source site and the CO2 capture facility. TCC to amortize the initial capital costs. Following equations
• The lifetime and interest rate of all the facilities is assumed specifically describe the terms on the right-hand side of Eq.
to be 20 years and 8% respectively, except a railcar and truck (3).
lifetime of 10 years and a pipeline lifetime of 15 years (Kim The following equations specifically describe the terms on
et al., 2017; Ascenso et al., 2018). the right-hand side of Eq. (3). FCC in Eq. (3) is the sum of the
capital costs of energy production, storage and CO2 capture
3. Mathematical model facilities. FCC is calculated by multiplying the number of facil-
ities by the capital cost of the corresponding facility:
To design and analyze the IRCEC system, a superstructure-
based optimization model was developed, inspired by our FCC = NFijl i (4)
previous work (Kim et al., 2017). The proposed model is for- i∈{oil
/ refinery} j ∈ J l ∈ L
mulated as using a mixed integer linear programming (MILP),
and solved using the CPLEX 12.0 solver, one of the best known
where NFijl represents the number of facilities i for products l
and most widely used large-scale solvers (Careri et al., 2012),
in region j and i is the capital cost of facility i. Note that Eq.
through the General Algebraic Modeling System (GAMS) envi-
(4) does not include the capital cost of the oil refineries.
ronment. While the full mathematical model is provided
The total transportation capital cost (TCC), in Eq. (3), which
through Eqs. (S1)–(S43) and Table S1 in Supplementary infor-
is the sum of the capital costs of each transportation mode, is
mation (SI) for the sake of brevity, the following sections
calculated using Eq. (5):
present the model structure and the method for solving MOOP.
3.1. Optimization model structure TCC = kl NRkl
k ∈ {railcar,truck}l ∈ LH ∪LC
The MOOP model for the design of the IRCEC system in this
+ kl ˇjj NPjj kl (5)
study is mathematically formulated as follows:
j ∈ J j ∈ J k ∈ {pipe}l ∈ LH ∪LC
min TDC = CCF(FCC + TCC) + FOC + TOC + TRC + TPC + TSC (3)
Chemical Engineering Research and Design 1 4 7 ( 2 0 1 9 ) 200–213 205
TRC = Rijlm m (8)
/ C m∈M
i ∈ I j ∈ J l∈L
TPC = Ajl l (10)
j ∈ J l ∈ LC
In this study, the multi-objective problem is implemented 4. Application to the Korean energy supply
using the ε-constraint method to ensure a Pareto solution system
set from the multi-objective optimization framework. This
method is based on optimizing one objective function while To demonstrate the effectiveness and capability of the opti-
taking into account the other objectives as a new constraint mization model presented in Section 3, the proposed model is
restricted by the allowable level εn in each iteration i. Then, the applied to the design problem of the IRCEC system for Korea’s
value of the bounding level εn would be changed to obtain the future transportation sector. With the case study, we will be
Pareto curve. Using the multi-objective optimization model, able to determine the optimal configuration and analyze the
we can expect that a trade-off between the two objectives techno-economic evaluation of the IRCEC system. In addition,
(the total daily cost and the total CO2 emission) will occur we identify the effect of different objective functions on the
since the lowest-cost solution is not the one with the least optimal result of the IRCEC system.
CO2 emission: There is no simultaneous optimal solution of
the cost-minimizing objective with the least CO2 emission. 4.1. Energy demand and primary resource data
Therefore, Eq. (13) is applied to the Pareto solutions:
To estimate demand for each of the three energy types namely
minimize {TDC} (12) electricity, H2 and liquid fuel, the total future demand for
x,y
energy in the transportation sector is first calculated based
subject to: on the assumptions and data used in previous work (Kim and
Moon, 2008). The total energy demand for the transportation
h(x, y) = 0 sector in Korea in 2040 is estimated to be 4.0 × 107 tonnage of
oil equivalent energy (TOE) per year.
g(x, y) ≤ 0
(13) Then, the demand for electricity, H2 and liquid fuel is esti-
x ∈ Rn , y ∈ Y = {0, 1}m , and
mated using the future market shares of electric vehicles
TCE ≤ εi (i = 0, 1, 2, · · ·, I) (19.5%), fuel cell vehicles (32.4%), and internal combustion
engine vehicles (48.1%), respectively (Kim and Moon, 2008).
The obtained Pareto solutions would be represented in a Finally, regional demand for the three types of energy is cal-
two-dimensional figure (TDC, TCE). Each point on the Pareto culated based on the population ratio of each region and the
curve corresponds to the optimal solution of the IRCEC system demand share of the transportation sector, as shown in Fig. 3
for different CO2 emission constraints. (Kim and Kim, 2016).
206 Chemical Engineering Research and Design 1 4 7 ( 2 0 1 9 ) 200–213
In this study, meteorological and topographical data were 0.6 (Michelle et al., 2008; Ortiz-Espinoza et al., 2017). The eco-
used to estimate the potential amounts of conventional and nomic, technical and environmental parameters of energy
renewable resources in a specific region. The regional avail- production, storage, and CO2 capture facilities are summa-
able volumes of coal, natural gas and crude oil are shown in rized in Tables S2–S6 in SI. In this paper, the purchase prices of
Table 1. In this study, the amounts of coal and natural gas primary resources are not included in the operating costs of
available were estimated based on the supply of coal and nat- energy production facilities. Different production capacities
ural gas for power generation in each region (KEEI, 2014). The are considered for all facilities except oil refineries and CO2
amount of crude oil available for liquid fuel production is cal- splitting facilities.
culated based on the production rate of existing oil refineries Four types of electricity generation facility are considered
and the energy consumption ratio for the transportation sec- and their parameters are shown in Table S2. The conversion
tor, which accounts for 35.1% of total crude oil consumptions efficiency of a wind turbine is altered by regional charac-
(KEEI, 2014; EIA, 2015). Table 1 also shows the daily poten- teristics such as wind speed and shear exponent. Thus,
tial of renewable resources in different regions. Regional solar the power output of a wind turbine is calculated using the
light, solar heat and wind speeds are estimated based on the method developed by the System Advisor Model (SAM) of
average global horizontal irradiance, direct normal irradiance the National Renewable Energy Laboratory (NREL), and the
and wind speed measured at a height of 50 m in each region, estimated power outputs of the wind turbine are listed in
respectively (KIER, 2016; SAM, 2019). The amount of biomass Table S3 (U.S. Department of Energy, 2006). H2 production
available for energy production is calculated by multiplying facilities and their parameters are listed in Table S4. Coal
an availability factor by the total amount of biomass residue gasification and steam methane reforming facilities would
in each region due to the conservation of the ecosystem and yield high CO2 emissions for producing 1 ton of liquid H2
the utilization of biomass for other purposes (Son et al., 2014; (LH2 ), but these facilities are cheaper than other H2 produc-
Ahn et al., 2015). tion facilities (bio gasification and water electrolysis facilities).
Compressed gaseous H2 (CH2 ) is not considered because the
4.2. Technical and economic data storage and transportation of LH2 are cheaper than that of
CH2 due to the high energy density of LH2 (Kim and Kim,
In this section, most technical and economic data for the facil- 2016). Producing 1 kg of H2 consumes 33.3 kW h of electricity.
ities described in the IRCEC system are obtained from the The technical and economic parameters of liquid fuel pro-
literature. Some unknown parameters are estimated using the duction facilities with respect to capacity are given in Table
power law rule based on the known capital cost of the facility S5. As mentioned in Section 2, the capacity of oil refinery
and capacity data from an existing technology (Wittholz et al., facilities corresponds to the amount of crude oil available
2008). The unknown parameter of a facility is calculated using regionally (see Fig. 2) and the capital cost is not required.
Eq. (14): The CO2 splitting system has an especially high capital cost
and a low conversion efficiency because it includes various
˛
Capanew complex processes such as solar heat collection, CO/CO2 sep-
FICnew = FICexisting (14)
Capaexisting aration, and Fischer-Tropsch synthesis. 2.8 tons of CO2 are
required to produce 1 barrel of liquid fuel. For more detail on
where FICexisting and Capaexisting are the capital cost and capac- the CO2 splitting system, please refer to previous publications
ity of a facility obtained from existing data, respectively. (Kim et al., 2011, 2012).
Capanew is the desired capacity of a new facility. Accordingly, The H2 and CO2 intermediate storage and CO2 capture facil-
the capital cost of the new facility, FICnew , can be obtained. ities parameters are summarized in Table S6. For CO2 capture,
The value of the exponent ˛ in Eq. (14) is assumed to be 0.76, monoethanolamine (MEA)-based CO2 adsorption is consid-
0.73, 0.72, 0.84 and 0.71 for coal gasification, steam methane ered as the base CO2 capture technology due to its availability
reforming, bio gasification, water electrolysis, and H2 inter- and low costs (Kim et al., 2012). The sequestration cost and
mediate storage facilities respectively (Murthy et al., 2011), purchase cost of a ton of CO2 are 3.7$ and 39$, respectively
while for the other facilities the exponent is assumed to be (McCoy and Rubin, 2005). The higher heating value, purchase
Chemical Engineering Research and Design 1 4 7 ( 2 0 1 9 ) 200–213 207
Fig. 4 – Optimal Pareto solutions for design and operation of the IRCEC system.
price and transportation cost of primary resources are shown the optimal configuration that minimizes the total daily cost
in Table S7. Furthermore, transportation costs for electricity (i.e. the minimum cost solution), while the configuration of
and liquid fuel, which depend on the delivery distance and vol- the minimum CO2 solution corresponds to Point B in Fig. 4.
ume, are $0.051/MWh/km and $0.027/barrel/km for electricity All of the design and operation strategies of the IRCEC sys-
and liquid fuel respectively (Almansoori and Shah, 2012). tems captured within the optimal trade-off curve show lower
Three H2 and CO2 transportation modes and their param- CO2 emission and lower daily cost than the business-as-usual
eters are summarized in Table S8. Note that losses during (BAU; Point C in Fig. 4) case. The BAU case is the energy sys-
storing and transporting products or primary resources are tem meeting all the demands using existing infrastructure
small compared with the volumes involved in other pro- without the installation of new renewable technologies or the
duction activities are therefore not considered. Finally, the CCU framework. Moving along the trade-off curve from one
delivery distances for the fifteen regions of the study area extreme to the other extreme involves a series of different
are measured from the center of each region. The distances optimal solutions.
between regions are summarized in Table S9. Using the Pareto solutions, a variety of practical strate-
gies for planning the IRCEC system corresponding to the
5. Optimization results implementation of different environmental policies and reg-
ulations. For instance, the optimal IRCEC system, which
requires the minimum cost, while meeting CO2 mitigation tar-
In the case study, an IRCEC system for Korea’s future
gets by the Paris Agreement, can be simply identified using the
transportation sector was designed and analyzed using the
Pareto curve. Fig. 4 shows the CO2 reduction by 37% compared
proposed model.
to the BAU case (1,221 × 103 ton/day) to satisfy a nationally
determined contributions (NDCs) of Korea (Min. TMP or Point D
5.1. Pareto solutions
in Fig. 4). Accordingly, Fig. 4 also shows that the total required
cost to build the IRCEC system to meet CO2 mitigation tar-
In the previous study, a MILP optimization model was pro-
gets by the Paris Agreement (namely, Paris-Agreement solution)
posed to discuss two very different structures of Korean IRCEC
is approximately $109.5 × 106 /day, which is up by 10.6% from
system: the lowest cost and lowest CO2 -emission structures.
$99 × 106 /day of the minimum cost solution. Therefore, using
These two extreme structures are used as each end-point of
Fig. 4, the extent of the compromise between achieving the
the Pareto curve of the proposed MOOP model (i.e., the min-
minimum cost and the minimum CO2 emissions can be explic-
imum cost and minimum CO2 solutions). Different optimal
itly quantified.
solutions between two end points on the Pareto curve are
Fig. 5(a) shows the cost breakdown of the optimal config-
then identified using the ε-constraint method. Accordingly,
uration of the IRCEC system in three different solutions. The
the Pareto solutions would be in a two-dimensional curve con-
capital costs relating to facilities and transportation modes are
sisting of 101 ε points, where both end-points correspond to
represented as a daily cost by multiplying the capital charge
the optimal solution of two respective mono-objective opti-
factor by the estimated capital cost, as shown in Eq. (3) in Sec-
mizations. Each ε point on the Pareto curve corresponds to the
tion 3. In the minimum cost solution, the primary resource
optimal solution (minimum TDC) of the IRCEC system under
cost for crude oil is the main cost component of the IRCEC
a new ε constraint to limit CO2 emission at different levels.
system, accounting for 54.4% of the total daily cost. This is
As shown in Fig. 4, the trade-off between the minimum
because liquid fuel is mainly produced by oil refineries and
cost and the minimum CO2 solutions is clearly observed.
demand for liquid fuels is the largest demand share in the
Moving along the curve line from the leftmost point to the
transportation sector (48.0%). The second cost driver is the
other extreme point involves a series of different optimal solu-
capital cost of the installation of energy production facilities.
tions, i.e., sets of the total required cost and total emitted CO2
The cost of a coal-based energy production facility is signifi-
amount. The curve which is close to a straight line means that
cant: 29.8% of the total daily cost. On the other hand, the cost
two objectives clearly conflict with each other. Since an invest-
associated with renewable resource-based energy production
ment cost and CO2 reduction are directly proportional to each
is about 4.0% of the total daily cost due to their small contribu-
other except a few points in the left side, the cost effective-
tion to energy supply compared to conventional production.
ness for CO2 reduction in the IRCEC system is nearly identical
In the Paris-Agreement and the minimum CO2 solutions, the
across all the optimal solutions.
total daily cost of the IRCEC system increases by 10.6% and
Each solution of the Pareto curve is equivalent to an opti-
40.2% compared to the minimum cost solution, respectively.
mal design of the IRCEC system. Point A in Fig. 4 corresponds to
208 Chemical Engineering Research and Design 1 4 7 ( 2 0 1 9 ) 200–213
Fig. 5 – Comparison of different solutions: (a) Breakdown of the total daily cost of the IRCEC system, and (b) the amount of
CO2 generated by the IRCEC system.
This is because of a huge increase in additional costs for the production (i.e. installation of pyrolysis facilities) is more eco-
RES and CCU technologies. While the Paris-Agreement solu- nomically strategic than importing liquid fuel from the mass
tion emits 706.9 ton × 103 ton/day, the minimum CO2 solution production regions which are relatively far away.
installs additional CO2 capture and sequestration facilities not
to emit any CO2 . This brought about the difference of the costs
related to CO2 capture and sequestration between the Paris-
5.2.2. IRCEC system with the minimum TMP and TCE
Agreement and the minimum CO2 solutions, thereby leading
Fig. 7(a) and (b) shows the optimal configuration of the IRCEC
to different total daily costs; the costs for CCU installation
system for the Paris-Agreement solution and the minimum CO2
and operation in the Paris-Agreement solution is 4.9% of the
solution, respectively. These IRCEC system designs are clearly
total daily cost, whereas that of the minimum CO2 solution
different from the minimum cost solution. Firstly, CO2 cap-
is 24.5% of the total daily cost. Fig. 5(b) compares the amount
ture facilities are installed to reduce the total CO2 emissions.
of CO2 generated during the operation of the IRCEC system
Compared to the Paris-Agreement solution, there is a number of
in three solutions. As discussed above, the generated CO2
CO2 capture facilities to minimize the total CO2 emissions in
in both the Paris-Agreement and the minimum CO2 solutions
the minimum CO2 solution. For example, region 1 captures all
are 837.1 ton × 103 ton/day, which is 25.3% lower than that
CO2 in the minimum CO2 solution even though the amount of
in the minimum cost solution. While 15.6% of the generated
generated CO2 is similar to that of the Paris-Agreement solution.
CO2 (approximately 131.1 ton × 103 ton/day) is captured in the
Moreover, it is evident that these configurations of the IRCEC
Paris-Agreement solution, all the generated CO2 are captured
system, similar to that of the minimum cost solution, are sort
and reutilized in the minimum CO2 solution.
of decentralized energy system rather than one of centralized
production and distribution. Thus, regions with high energy
5.2. Optimal configurations of the IRCEC system demand generate a lot of CO2 (e.g., regions 2 and 3), except for
some regions which already have oil refinery facilities.
5.2.1. IRCEC system with the minimum TDC Secondly, the selection of H2 production facilities is con-
Fig. 6 shows the optimal configuration along with the prod- siderably different from the minimum cost solution. Two
uct and primary resource flows of the IRCEC system, for the types of H2 production facilities (namely steam methane
minimum cost solution. 96.8% of the total demand of the reforming and biomass gasification) are selected to satisfy
IRCEC system is satisfied by the conventional resource-based H2 demand while minimizing CO2 emissions, despite their
energy production system, and the renewable resource-based high production costs. The energy produced from the renew-
energy production system is needed to cover 3.2% of the total able resource-based system increases from 3.6% to 16.8% (in
demand. Notably, all electricity and H2 demands are self- the Paris-Agreement solution) and 17.0% (in the minimum CO2
satisfied by coal power and coal gasification facilities. It is solution) of the total energy production, whereas most energy
interesting that coal, as a main source of electricity and H2, demands are still satisfied by energy supplied by conventional
is transported to neighboring regions for local production of resource-based energy production. For example, in the mini-
electricity and H2 , since the transportation cost of coal is lower mum CO2 solution, although some electricity is produced from
than that of electricity and H2 . For example, regions 2 and 3, renewable energy sources (wind and solar), 96.9% of the elec-
with relatively low coal potential, import coal from contigu- tricity demand is still met by coal power facilities, due to the
ous regions 1 and 5 which have high coal potential, to produce low regional availability of renewable resources and the high
electricity and H2 locally, as shown in Fig. 6. capital costs of renewable energy-based facilities.
Unlike electricity and H2 supply, liquid fuels are produced Finally, it can be observed from Fig. 7 that all liquid fuels
in specific regions where oil refinery facilities are already are produced by existing oil refineries. While biomass can be
installed (i.e. regions 1, 5, 10, and 15), and then delivered to a source of liquid fuel, most biomass is used preferentially for
neighboring regions. The reason for this is the assumption H2 production through bio gasification facilities. Note that in
that new oil refineries cannot be installed, as mentioned in the minimum cost solution, the amount of utilized biomass
Section 2. However, regions 4 and 8 can produce 26,000 bar- is approximately 29.6 × 103 ton/day (43.6% of the total amount
rel/day of liquid fuel via biomass pyrolysis facilities since these of available biomass potential), while in the Paris-Agreement
regions have the highest biomass potential. Especially, region and the minimum CO2 solutions, 100% of the total available
4 can fulfill its own liquid fuel demand by local production biomass is utilized for H2 production. This means that the
from biomass pyrolysis facilities, since the total cost of local biomass-based H2 production system is more economically
Chemical Engineering Research and Design 1 4 7 ( 2 0 1 9 ) 200–213 209
Fig. 6 – Optimal configuration of the IRCEC system for the minimum cost solution.
strategic than other renewable resource-based energy produc- regulations, and the effects of primary energy prices on the
tion systems despite the additional expense for CO2 capture. system’s structure and economics. To analyze the effects of
two major external factors to the IRCEC system, a sensitivity
analysis was performed by assuming different CO2 mitigation
6. Extended analysis
targets and energy prices.
Fig. 7 – Optimal configuration of the IRCEC system for (a) the Paris-Agreement solution and (b) the minimum CO2 solution.
The legend is given in Fig. 6.
Fig. 8 – (a) Contribution of renewable energy sources and (b) the amount of captured CO2 in the examined IRCEC system
according to different CO2 reduction targets. (For interpretation of the references to color in this figure legend, the reader is
referred to the web version of this article.)
is the maximum CO2 amount (1.1 × 106 ton/day) of the Min. target is high, it is more economical to establish CCU facilities
TDC system (the minimum cost solution; Point A in Fig. 8). coupled with conventional energy production systems com-
When the CO2 reduction target is relatively low, the portion pared to the RES-based energy production systems. This may
of energy produced by renewable resources increases rapidly be attributable to the fact that the cost of energy production
with as the target level increases. But after a certain target from conventional resources is significantly lower than that
level (approximately 15%), the portion of RES-based energy of renewable resources despite the additional expenditure on
cannot be increased and remains constant at 17.4%. In the the installation of CCU facilities.
range between 17% and 100%, the additional CO2 generated is
mitigated by the CCU framework. 6.2. Effects of primary energy prices to the IRCEC
This sequential selection of strategy, (i.e. RES utilization system
as the base option followed by CCU for additional CO2 mit-
igation), is observed in Fig. 8(b) which shows the amount of The resource purchase cost was identified as one of the major
captured CO2 according to different CO2 reduction targets. For cost drivers, which determines the economics of the IRCEC
relatively low CO2 reduction targets (green region in Fig. 8(b)), system, as shown in Fig. 5. Furthermore, the expenditure
CO2 emissions are primarily mitigated by substituting renew- for the resource purchase has a huge effect on the system
able resources for conventional resources. On the other hand, configuration such as the type, number and location of the
above a CO2 reduction target of 25%, the RES utilization strat- facilities as well as the use share of RES and CO2 as alternative
egy by itself is not sufficient to meet the targets. Thus, the energy resources. Therefore, sensitivity analyses are carried
IRCEC system requires additional CO2 reduction by capturing out to investigate the impact of the pricing of primary energy
CO2 . Eventually, in the IRCEC system with a CO2 reduction tar- resources on the optimal solutions of the IRCEC system. Three
get of 100% (i.e. the minimum CO2 solution), a number of CCU different scenarios are considered for conventional resources
technologies should be installed along with renewable energy (i.e., crude oil and natural gas) price: low, base, and high price
technologies. scenarios, which means that -100% and +100% changes are
Fig. 8 clearly shows that the preferred technology for mit- taken into account based on the base cost: $150/barrel and
igating CO2 emissions varies according to the CO2 reduction $424/ton of crude oil and natural gas respectively, as given
target level. When the CO2 reduction target is relatively low, in Section 4. Accordingly, the multi-objective optimization
energy production using renewable resources is more effec- model is employed, using the ε-constraint method for the
tive than the CCU strategy. However, when the CO2 reduction three scenarios (101 execution for each scenario and total 303
Chemical Engineering Research and Design 1 4 7 ( 2 0 1 9 ) 200–213 211
Fig. 9 – (a) Pareto solutions and (b) the share of renewable energy source of the IRCEC system according to different crude oil
and natural gas prices.
Fig. 10 – Contribution to the CO2 reduction of the RES and CCU framework under (a) low price (b) base price, and (c) high price
scenarios.
iterations) to obtain the optimal Pareto curves and contribu- nologies to CO2 emission reduction is dominant. However, the
tion to the CO2 reduction of the RES and CCU frameworks reduction of CO2 emission through CCU technology is gradu-
for different resource prices according to changes in the CO2 ally increased as the CO2 reduction target increases, When the
reduction target. CO2 reduction target is 100% (i.e. nearly zero CO2 emission),
Fig. 9(a) shows the Pareto curves of the IRCEC system under the reduced CO2 through the CCU framework accounts for
three different price scenarios. It is clear that the change 76.8% and 65.5% of the total CO2 reduction in the low and base
in resource price has a significant effect on the total daily price scenarios, respectively. This means that the CCU frame-
cost of the IRCEC system. This can be seen by comparing work is economically more viable than the utilization of RES
the minimum cost solutions of three scenarios: 67.2, 99.0 and when a strong governmental policy for high-level CO2 mitiga-
147.5 × 106 $/day in the low price, base price and high price sce- tion is implemented, and while conventional energy prices are
narios, respectively. It is also observed from Fig. 9(b) that the relatively inexpensive. On the other hand, in the high price sce-
share of renewable energy resources for energy production nario, the RES technology shows a considerable contribution
is also very sensitive to the change of the resource price. In to CO2 mitigation even in high reduction target ranges. For
the high price scenario, the renewable energy share increases instance, the contribution of RES technologies still accounts
significantly up to 48.5% of the total primary energy consump- for 42.5% of total CO2 reduction when the CO2 reduction tar-
tion. This is because the IRCEC system utilizes CO2 as an get is 100%. This means that if conventional energy prices
energy source for producing liquid fuels due to the high crude increase, a policy-maker should encourage both the RES tech-
oil price. For example, the IRCEC system with 100% CO2 reduc- nologies and the CCU framework in parallel to ensure the most
tion targets (the minimum CO2 solution) installs a number of economically promising energy supply system.
CCU technologies to replace the oil refinery plants. 98.2% of
the total amount of captured CO2 (7.2 × 105 ton/day) is used to
7. Conclusions
produce liquid fuels (approximately 256,800 barrel/day) via the
CCU framework, and the rest of the captured CO2 is seques-
This study proposed a new systematic framework for the
trated. As a result, it is evident that the price of primary energy
design and analysis of sustainable energy supply systems
resources (e.g., crude oil and natural gas) is one of the crucial
considering cost efficiency and environmental performance.
factors determining the economic and environmental perfor-
We generated an integrated renewable and conventional
mance, as well as the configuration, of the IRCEC system.
resource-based energy supply coupled with carbon capture
Finally, the contribution of the renewable resource and
and utilization technology (IRCEC) system, which consists of
the CCU framework to the reduction of CO2 emission in the
different types of renewable and conventional resources and a
IRCEC system is compared under different energy resource
combination of energy processing technologies. A MILP opti-
price scenarios. Fig. 10 shows the change in contribution of
mization model was developed based on the IRCEC system
two different technologies: RES technology and CCU technol-
using a multi-objective concept which accounts for the mini-
ogy. In the low price and base price scenarios, when the CO2
mization of the total daily cost and total CO2 emissions. The
reduction target is relatively low, the contribution of RES tech-
multi-objective optimization problem was solved using the
212 Chemical Engineering Research and Design 1 4 7 ( 2 0 1 9 ) 200–213
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Acknowledgment design and operation of a wind-based hydrogen supply
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This research was supported by the Incheon National Univer-
transportation sector for a sustainable energy system: a case
sity Institute of Convergence Science & Technology in 2015. study of Korea. Int. J. Hydrogen Energy 33, 7326–7337.
Kim, J., Henao, C.A., Johnson, T.A., Dedrick, D.E., Miller, J.E.,
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found, in the online version, at doi:https://doi.org/10.1016/ 2012. Fuel production from CO2 using solar-thermal energy:
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Kim, M., Won, W., Kim, J., 2017. Integration of carbon capture and
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