James Berry**, Jenny Cochran**, Mary Page**, and Miguel Bagajewicz University of Oklahoma, Norman, OK – Chemical Engineering (*) This work was done.
Download ReportTranscript James Berry**, Jenny Cochran**, Mary Page**, and Miguel Bagajewicz University of Oklahoma, Norman, OK – Chemical Engineering (*) This work was done.
Slide 1
James Berry**, Jenny Cochran**, Mary Page**, and Miguel Bagajewicz
University of Oklahoma, Norman, OK – Chemical Engineering
(*) This work was done as part of the capstone Chemical Engineering class at the University of Oklahoma
(**) Capstone Undergraduate students
Abstract
D. Farmgate Switchgrass Price
$54.00
•
$52.00
Use capacity planning model to design biorefinery
$50.00
o Determine times to build, expand, and number of processes
•
•
•
3-Hydroxypropionic Acid
Process Flow
Heat
Water
O2
H2
CO2
$48.00
P29
P33
Glucaric Acid
$46.00
Compare integration versus non-integration of
utilities
Determine biorefinery location
Determine markets to purchase and sell chemicals
$44.00
Glucose
P37
Pyruvate
P50
5-Hydroxy
Methyl
Furfural
P40
Acetone
$42.00
$40.00
$38.00
$36.00
Central
Utility
$34.00
$32.00
P53
3-Hydroxybutyrolactone
$30.00
C. Plant & Market Locations
C. Plant & Market Locations Potential locationsafdadsfa
for biorefinery and market locations. There are 34 options
for biorefineries and 24 markets.
D. Farmgate Switchgrass Price Varying prices of switchgrass throughout the United States
Background
•
o
Complex system of processing units producing fuel and chemicals
Operates from biomass feedstock
2022 Renewable Fuels Standard 16 bgy of cellulosic ethanol
Integrate multiple processes into one biorefinery for
increased profitability
o
o
o
•
Process 29
Method: Mathematical Model
Objective
•
o Maximize net present value by choosing
most profitable processes
Centralize utilities (harness energy)
Lower overhead
Use byproducts from one process as a feed for another
•
Perform mass balance of input and
output around each process
o Capacity
o Year to build
o Year to expand
Switchgrass -- desirable renewable feedstock
o
o
o
•
Produces high yields without fertilizer
Net energy is 20 times greater than corn
Current delievered cost is $30-$50/dry ton (varies by region)
Integrate
Location
o Incorporate raw and selling prices in a
given market
o Transportation costs
•
Budgeting
o Cash returned to investors
Summary
Non-integrated
Integrated
•
Process
1
o
Process
2
o
o
Utility
2
Process
2
Central
Utility
o
Utility
3
Process
3
Process
3
B. Utility Comparison
A. Model Equations This is a
screenshot of the written code for the
mathematical model.
B. Non-integrated versus
Integrated Utilities Graphic
comparison of the two potential
utility structures in a biorefinery.
A. Model Equations
•
•
•
•
•
Build
Year 3
Year 4
Year 5
Expand
Process 33
Build
Process 40
Build
Process 50
Build
Expand
Process 53
Expand
Build
G. Building Schedule
Integrated
Non-integrated
• NPV $36.5
billion
• Budget $1.16
million
• NPV $36.3
billion
• Budget
$1.44 million
H. Final Locations
I. Budgeting
E. Final Process Flow Diagram Most
expand
profitable processes selected by the model
H. Final Locations Locations for switchgrass,
and utilities integrated
biorefinery, and selling markets
F. Makeup Utilities Chart of outside utilities I. Budgeting Economic comparison of
needed to purchase for integrated model
integrated versus non-integrated
G. Building Schedule Years to build and
Sell 5 chemicals
o
Utility
1
Process
1
F. Makeup Utilities
o Utility consumption and generation
o Necessary additional utilities
•
Year 2
Chart of necessary makeup utilities
Energy Independence & Security Act of 2007
o
•
Year 1
Biorefinery
o
•
E. Final Process Flow Diagram
3 Hydroxypropionic Acid
Glucaric Acid
Acetone
5- Hydroxymethyl Furfural
3- Hydroxy-butyrolactone
Net Present Value: $35 billion over 5 years
Processes built in years 1-3 and expanded from years 2-4
Integrate: water, oxygen and heat
Utility integration is $200 million more profitable
$1.16 million budgeted for utility integrated biorefinery
Conclusion The expanded capacity planning model effectively determined
profitable processes, location and budgeting, while proving integrating utilities
is a more profitable method.
References
1.
2.
3.
4.
5.
Aden, A.; Bozell, J.; Holladay, J.; White, J.; Manheim, A. Top Value Added Chemicals From Biomass. U.S. Department of
Energy: Energy Efficiency and Renewable Energy. Produced by: Pacific Northwest National Laboratory & National Renewable
Energy Laboratory. August 2004.
Carmer, J.; Waller, C.; Wilkes, D.; and Nizami, S.; Biorefineries. Unpublished. 4 May 2007.
Graham, R. and Walsh, M. A National Assessment of Promising Areas for Switchgrass, Hybrid Poplar, or Willow Energy Crop
Production. Environmental Sciences Division. 4804. February 1999.
Lavaja, J.; Adler, A.; Jones, J.; Pham, T.; Smart, K.; Splinter, D.; Steele, M.; Bagajewicz, M.; Financial Risk Management for
Investment Planning of New Commodities Considering Plant Location and Budgeting, Ind. Eng. Chem. Res. 2006, 45, 75827591.
Tran, T.; Patel, T.; Iland, T.; Truong, J.; Ibidapo-Obe, B.; Constantino, J.; OU Biorefining Technical Report for Biomass
Production. Unpublished. 30 April 2004.
Acknowledgements
DuyQuang Nguyen
James Berry**, Jenny Cochran**, Mary Page**, and Miguel Bagajewicz
University of Oklahoma, Norman, OK – Chemical Engineering
(*) This work was done as part of the capstone Chemical Engineering class at the University of Oklahoma
(**) Capstone Undergraduate students
Abstract
D. Farmgate Switchgrass Price
$54.00
•
$52.00
Use capacity planning model to design biorefinery
$50.00
o Determine times to build, expand, and number of processes
•
•
•
3-Hydroxypropionic Acid
Process Flow
Heat
Water
O2
H2
CO2
$48.00
P29
P33
Glucaric Acid
$46.00
Compare integration versus non-integration of
utilities
Determine biorefinery location
Determine markets to purchase and sell chemicals
$44.00
Glucose
P37
Pyruvate
P50
5-Hydroxy
Methyl
Furfural
P40
Acetone
$42.00
$40.00
$38.00
$36.00
Central
Utility
$34.00
$32.00
P53
3-Hydroxybutyrolactone
$30.00
C. Plant & Market Locations
C. Plant & Market Locations Potential locationsafdadsfa
for biorefinery and market locations. There are 34 options
for biorefineries and 24 markets.
D. Farmgate Switchgrass Price Varying prices of switchgrass throughout the United States
Background
•
o
Complex system of processing units producing fuel and chemicals
Operates from biomass feedstock
2022 Renewable Fuels Standard 16 bgy of cellulosic ethanol
Integrate multiple processes into one biorefinery for
increased profitability
o
o
o
•
Process 29
Method: Mathematical Model
Objective
•
o Maximize net present value by choosing
most profitable processes
Centralize utilities (harness energy)
Lower overhead
Use byproducts from one process as a feed for another
•
Perform mass balance of input and
output around each process
o Capacity
o Year to build
o Year to expand
Switchgrass -- desirable renewable feedstock
o
o
o
•
Produces high yields without fertilizer
Net energy is 20 times greater than corn
Current delievered cost is $30-$50/dry ton (varies by region)
Integrate
Location
o Incorporate raw and selling prices in a
given market
o Transportation costs
•
Budgeting
o Cash returned to investors
Summary
Non-integrated
Integrated
•
Process
1
o
Process
2
o
o
Utility
2
Process
2
Central
Utility
o
Utility
3
Process
3
Process
3
B. Utility Comparison
A. Model Equations This is a
screenshot of the written code for the
mathematical model.
B. Non-integrated versus
Integrated Utilities Graphic
comparison of the two potential
utility structures in a biorefinery.
A. Model Equations
•
•
•
•
•
Build
Year 3
Year 4
Year 5
Expand
Process 33
Build
Process 40
Build
Process 50
Build
Expand
Process 53
Expand
Build
G. Building Schedule
Integrated
Non-integrated
• NPV $36.5
billion
• Budget $1.16
million
• NPV $36.3
billion
• Budget
$1.44 million
H. Final Locations
I. Budgeting
E. Final Process Flow Diagram Most
expand
profitable processes selected by the model
H. Final Locations Locations for switchgrass,
and utilities integrated
biorefinery, and selling markets
F. Makeup Utilities Chart of outside utilities I. Budgeting Economic comparison of
needed to purchase for integrated model
integrated versus non-integrated
G. Building Schedule Years to build and
Sell 5 chemicals
o
Utility
1
Process
1
F. Makeup Utilities
o Utility consumption and generation
o Necessary additional utilities
•
Year 2
Chart of necessary makeup utilities
Energy Independence & Security Act of 2007
o
•
Year 1
Biorefinery
o
•
E. Final Process Flow Diagram
3 Hydroxypropionic Acid
Glucaric Acid
Acetone
5- Hydroxymethyl Furfural
3- Hydroxy-butyrolactone
Net Present Value: $35 billion over 5 years
Processes built in years 1-3 and expanded from years 2-4
Integrate: water, oxygen and heat
Utility integration is $200 million more profitable
$1.16 million budgeted for utility integrated biorefinery
Conclusion The expanded capacity planning model effectively determined
profitable processes, location and budgeting, while proving integrating utilities
is a more profitable method.
References
1.
2.
3.
4.
5.
Aden, A.; Bozell, J.; Holladay, J.; White, J.; Manheim, A. Top Value Added Chemicals From Biomass. U.S. Department of
Energy: Energy Efficiency and Renewable Energy. Produced by: Pacific Northwest National Laboratory & National Renewable
Energy Laboratory. August 2004.
Carmer, J.; Waller, C.; Wilkes, D.; and Nizami, S.; Biorefineries. Unpublished. 4 May 2007.
Graham, R. and Walsh, M. A National Assessment of Promising Areas for Switchgrass, Hybrid Poplar, or Willow Energy Crop
Production. Environmental Sciences Division. 4804. February 1999.
Lavaja, J.; Adler, A.; Jones, J.; Pham, T.; Smart, K.; Splinter, D.; Steele, M.; Bagajewicz, M.; Financial Risk Management for
Investment Planning of New Commodities Considering Plant Location and Budgeting, Ind. Eng. Chem. Res. 2006, 45, 75827591.
Tran, T.; Patel, T.; Iland, T.; Truong, J.; Ibidapo-Obe, B.; Constantino, J.; OU Biorefining Technical Report for Biomass
Production. Unpublished. 30 April 2004.
Acknowledgements
DuyQuang Nguyen