Abstract
Biorefineries stemming from pulp and paper mills (PPMs) and other processes have been noted to offer improved economic and environmental performances. In such an industrial cluster, biomass from PPMs is processed into biofuel and bioproducts through different biorefinery technologies. Given the highly integrated material and energy networks, it is not uncommon for the industrial cluster to be operated by multiple enterprises. This gives rise to an eco-industrial park (EIP), where each enterprise acts as an independent decision maker. Here, the actions of each enterprise are driven by rational self-interest, capable of influencing the outcome of the EIP scheme. Thus,competition emerges to report the optimal EIP scheme, leading to a multiple decision making (MDM) problem. In this work, the MDM problem is resolved through mathematical optimization and game theory. An EIP case study based on a PPM Biorefinery is used to illustrate the proposed approach. Firstly, an optimization model was formulated which reported an EIP scheme with a positive overall economic payoff. However, there was an unequal distribution of economic payoff among individual enterprises. This is resolved by analyzing the individual payoffs through cooperative game strategy. Here, enterprises hold equal power in the EIP and coordinate their strategy together by varying the prices of goods/energy being traded between each other. In this work, two cooperative game scenarios are analyzed. The first scenario seeks to report a solution where each enterprise has a positive economic payoff while the second scenario aims to achieve a uniform internal rate of return.
Original language | English |
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Title of host publication | Chemeca 2016 |
Subtitle of host publication | Chemical Engineering - Regeneration, Recovery and Reinvention |
Place of Publication | Melbourne Vic Australia |
Publisher | Engineers Australia |
Pages | 381-390 |
Number of pages | 10 |
ISBN (Print) | 9781922107831 |
Publication status | Published - 2016 |
Event | Chemeca: Australasian Conference on Chemical Engineering 2016 - Adelaide, Australia Duration: 25 Nov 2016 → 28 Nov 2016 Conference number: 44th |
Conference
Conference | Chemeca: Australasian Conference on Chemical Engineering 2016 |
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Abbreviated title | CHEMECA 2016 |
Country/Territory | Australia |
City | Adelaide |
Period | 25/11/16 → 28/11/16 |
Keywords
- Biorefinery
- Game theory
- Industrial ecology
- Pulp and paper