Diapositiva 1

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Thermoeconomics as a Tool for a Fair Product
Cost Allocation in Industrial Symbiosis
Antonio Valero, Sergio Usón, César Torres & Alicia Valero
CIRCE – Centro de Investigación de Recursos y Consumos Energéticos.
Universidad de Zaragoza (Spain)
Motivation
 The key point of Industrial Symbiosis is the use of waste flows produced
by an industry as inputs for another, in order to close materials cycles.
 A waste is considered as:
 A by-product: producer viewpoint
 A resource: consumer viewpoint
 Prices determination must:
 Use accurate and objective accounting methodologies
 Use cost based on physical roots
How fair prices of recycled wastes can be
determined?
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Objetives
 Evaluation Tools in Industrial Symbiosis
 Material and Energy Flow Analysis (MFA)
 Life Cycle Analysis (LCA)
 Energy and Exergy Analysis
 Recycling Cost-Benefit Analysis (CBA)
 Environmental Input-Output Analysis
 Thermoeconomics
Thermoeconomics is proposed to solve this question in
cooperation to other evaluation methodologies
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Outline
 Exergy and Thermoeconomics
 Exergy Input-Output Analysis
 Application to an Eco-Industrial Park
 Conclusions
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Thermoeconomics
 Integration of industrial systems with interchange of resources, products
and wastes implies energy savings.
 Thermoeconomics (Tribus and Evans, 1962), is a general theory of energy
saving.
 It evaluates the quantity and quality of energy and material flows by means
of the Exergy.
 It evaluates the cost of the flows in terms of resources consumption, by
means of the concept of Exergy Cost.
 It can be applied to different level of decision and problems: cost accounting,
optimization, diagnosis,…
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Exergy, Purpose and Efficiency
 Exergy is the maximum amount of work that a system or flow produce
while interacting with the environment.
 Second Law Analysis states for any energy process:
Exergy Input – Exergy Output = Irreversibility > 0
 The efficiency of a productive process is defined as:
Efficiency = Production / Resources < 1
Resources – Products = Wastes + Irreversibility > 0
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Efficiency and Cost
 The exergy unit cost of a energy process is:
Unit Consumption = Resources / Production < 1
 The unit exergy cost is the inverse of the efficiency : The amount of
resources (measured in exergy) required to obtain a unit of product.
Purpose
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Second Law
Exergy Cost
Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Irreversibility and Cost
 Exergy cost of a product is the amount of resources (measured in exergy)
required to obtain a desired quantity of that product.
 The exergy cost is a cumulative magnitude that accounts all the irreversibilities
and wastes generated to obtain a product
I1
I2
I3
PT*
FT
k1
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k2
k3
Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Exergy Input-Output Analysis
 Input-Output Analysis depicts inter-industry relations of an economic
system.
 Input-Output analysis (IO) is applied in many economic fields including
issues related to Industrial Ecology.
 Traditionally uses different quantity units for energy and material flows.
 If monetary units are used for costs, arbitrariness may be introduced.
 Thermoeconomic Input-Output, formely Symbolic Exergoecononomics
(Valero and Torres, 1988):
 Uses exergy as single unit of energy and material flows, independently of
their economic value
 Uses the productive structure based on the definition of process efficiency.
 Is able to objectively allocate the costs of products interchanged.
 Can help to rationalize the general problem of resources savings achieved
through waste integration.
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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The Fuel-Product Table
 The Fuel-Product Table is the matrix representation of the productive
process interdependence of a system
 The inputs of each process are their resources (Fuel)
 The outputs of each process are their products
 Each element Eij is the part of the product of process –i– used as a
resource by component –j– . 0 is the environment.
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F1
…
Fj
…
Fn
v0
E01
…
E0j
…
E0n
P1
E11
…
E1j
…
E1n
E10
…
…
…
…
…
…
…
Pi
Ei1
…
Eij
…
Ein
Ei0
…
…
…
…
…
…
…
Pn
En1
…
Enj
…
Enn
En0
w0
(Fuel)
(Product)
(External resources)
(Final demand)
Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Production Model
 Processes are characterized by exergy unit consumptions
 The Thermoeconomic IO model allows determine the production of each
component as a function of:
 The system demand:
 The efficiency of each process:
 The production matrix is defined as:
 The production of each component is given by:
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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The Cost Model
 The exergy cost satisfies the following properties:
 It depends on the exergy of the external resources
 The production costs are distributed proportionally to the exergy.
 The production costs of each component are equal the cost of the resources
required to obtain it plus the cost of the residues generated.
 The unit production costs could be computed as:
 The Total Resources for a desired demand is given by:
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Eco-Industrial Park Example
“A eco-industrial park is defined as an industrial system of planned materials and
energy exchanges that seeks to minimize energy, raw materials and waste and
build sustainable economic, ecological and social relationship”
US President Council of Sustainable Developent (1996)
 Our Eco-Industrial Park example integrates:
 A coal fired power plant producing 350 MW
 A cement factory with a capacity of 650000 ton/year
 A gas fired boiler for heat district that produces 11 kg/s of steam at 8.5 bar
and 310ºC
 The flow integration analyzes:
 To replace the part of the steam produced in the gas-fired boiler with steam
bleeding produced in the power plant.
 To replace 10% of mass flow rate of clinker production by fly ashed produced
in the power plant
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Eco-Industrial Park Example
NATURAL
GAS
NATURAL GAS
BOILER
21
PROCESS
STEAM
23
22
COMBUSTION
GASES
7
8
3
2
19
HP
TURBINE
IP
TURBINE
14
LP
TURBINE
15
ELECTRICITY
16
11
4
COAL
1
5
COAL
BOILER
13
AIR
0
9
6
CONDENSER
10
HP
HEATER
DEAREATOR
LP
HEATER
HEAT
20
12
ASHES
18
LIMESTONE
24
COAL/ELECTRICITY
25
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CLINKER
KILN
26
17
CLINKER
27
Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Productive Structure: Isolated Systems
6
34,51
natural
gas
1
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clean
coal
410
Boiler
steam
351,6
Turbine
electricity
5
117,9
limestone
& coal
process
steam
3
1008
Ash
Separator
4
9,22
2
1014
coal
Steam
Generator
27,9
Clinker
Kiln
clinker
27,9
Mixer
clinker
Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Productive Structure. Integrated System
6
0
natural
gas
steam
1
Boiler
steam
351,6
Turbine
electricity
5
106,1
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clean
coal
410
1,03
ashes
limestone
& coal
3
1031
Ash
Separator
4
process
steam
2
1037
coal
9,22
9,22
Steam
Generator
25,19
Clinker
Kiln
clinker
26,22
Mixer
clinker
Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Fuel-Product (Exergy IO) Table
F1
n0
P1
P2
P3
P4
P5
P6
F2
1015
0
1037
0
1008
0
0
0
0
0
0
0
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0
0
0
0
0
1015
0
0
0
0
0
0
0
47
410
0
0
11.8
12.6
11.8
11.8
11.8
28
25.2
0
9,2
28
28
0
28
106
3.14
11.8
0
0
118
0
0
0
351,6
11.8
11.8
28
0
351,6
0
0
418.3
351,6
0
0
0
0
410
0
410
351,6
0
1031
0
0
0
0
0
0
0
3.14
0
0
0
0
0
0
0
1031
0
1.025
0
0
1008
0
0
11.8
0
0
1008
1037
0
0
0
0
1155.7
0
0
0
0
0
0
0
0
0.026
0
8.66
0
1167,5
0
0
TOTAL
0
106
0
0
0
0
0
w0
F7
118
0
410
0
0
0
410
F6
0
12.6
0
0
0
TOTAL
0
0
F5
47
0
1031
0
F4
0
0
0
P7
F3
26.2
26.3
391.4
26.2
387,2
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Integration Exergy Cost Saving
Saving
(%)
Electricity
1,1
0,01
Steam
12.1
34
4
Clinker
TOTAL
10.7
23.9
9,3
34.5
Steam
Generator
natural
gas
2,03
5
34.5
12.1
Mixer
steam
1
2
22,3
6
1.1
Boiler
steam
1.1
Turbine
electricity
7
11.8
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clean
coal
1.1
ashes
limestone
& coal
3
21,3
Ash
Separator
coal
process
steam
22.4
Saving
(MW)
11.8
Clinker
Kiln
clinker
10.7
Mixer
clinker
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Strategies to Fair Price Assessment
 Exergy cost of the integrated system
 Distribution of exergy cost saving
 By-product criteria: Assess the total cost saving to the main product
 Fair-price criteria: Distribute the total cost saving according to
economical criteria, such as:
 Level of investment.
 Subsystems production.
 Subsystems resources consumption.
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Cost Assessment Analysis
6,000
5,000
4,000
3,000
2,000
1,000
0,000
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Electricity (MJ/MJ)
Steam (MJ/kg)
Clinker (MJ/kg)
Isolated
2,887
4,278
5,224
Integrated
2,883
3,179
4,748
By-Product
2,818
4,278
5,224
Fair Price
2,823
4,229
5,174
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Conclusions
 Thermoeconomic Input-Output Analysis is proposed for the analysis of
integrations that characterize Industrial Ecology:
 Systematic methodology (Input-Output Analysis)
 Based on physical roots (Second Law Analysis).
 The approach can play a significant role for solving several important
problems of Industrial Ecology:
 Guidelines for establishing fair prices for by-products
 Physical costs of matter and energy streams
 Impact on natural resources consumption reduction
 Effect on waste reduction
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Perspectives
 This paper is a first and promising step in the application of
Themoeconomics to Industrial Symbiosis.
 All thermoeconomic techniques developed during years for the analysis,
optimization and diagnosis of energy systems can be applied now to
Industrial Symbiosis
 Evaluation methodologies of Industrial Symbiosis could be applied to
Thermoeconomics:
 Material Flow Analysis
 Life Cycle Assessment
 Environmental Input Output Analysis
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Thermoeconomics as a Tool for a Fair Product Cost Allocation in Industrial Symbiosis
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Thanks for your attention!
ISIE 2011
Thermoeconomics
as aatool
a fair product
cost allocation
in IndustrialSymbiosis
Symbiosis
Thermoeconomics
as a Tool for
FairforProduct
Cost Allocation
in Industrial
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