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Project II

Deadline Dec 2
Problem 1 (25 points)
A company is considering to produce electricity, using hydrogen, either from a high-tech
combustion engine (process II) or a fuel cell plant (process III). Hydrogen can be purchased from
a solar electrolysis company (carbon free) or manufactured within through a steam reform
(process I), which uses methane as raw material.
Given the specifications below, formulate an MILP model and solve it (using GAMS) to decide:
i
which process to build (II & III are exclusive)
ii
how to obtain hydrogen
iii
how much should be produced of product C?
The objective is to maximize profit.
Consider the following three cases:
1 Maximum demand of Electricity is 10 MWh with a selling price of $1800/MW
2 Same as case 1 above but a new government policy implementation requires an
additional cost of $100/ton (of natural gas used) for carbon capture project.
3 Maximum demand of C is 15 MWh; the selling price for the first 10 MWh is $1800/
MW, and $1500/ MW for the excess.
INVESTMENT AND OPERATING COSTS
Fixed ($/hr)

Variable (103 $/ton of raw material)

Process I

1000

250

Process II

1500

400

Process III

2000

550

Prices
Natural gas

$500/ton

Hydrogen

$930/ton

Electricity

$1800/MWh

Conversions
Process I

90% of Natural gas(tons) to Hydrogen(tons)

Process II

82% of Hydrogen(tons) to Electricity(MWh)

Process III

95% of Hydrogen(tons) to Electricity(MWh)

Maximum supply of A: 16 tons/hr (note: scale your cost coefficients divide them by 100)

Problem 2 (35 points)


Given the two hot and cold streams below determine:
a. Minimum utility consumption
b. Minimum number of units
c. Network configuration that satisfy two above targets
Use the LP and MILP transhipment formulation for a and b and solve using GAMS
Stream FCp(MW/ Tin(K
s
K)
)
H1
1
450
H2
1.2
450
C1
1
320
C2
2
350
Tmin = 10K
Heating utility at 500K
Cooling utility at 300K

Tout(K
)
350
350
400
420

Problem 3 (40 points)


Tamu city in Alaska has four electricity generator; a solar plant, gas turbine, hydroelectricity and
Wind turbine. These generators can be used in two different time periods; long night and long
day during the year. In the day time, the electricity demand is 7000MW, while at night it is
9200MW. A generator started in the first period may be used in the second period without
incurring an additional start-up/shutdown cost however, the solar plant cannot be used during the
night. All generators are turned off at the end of the cycle.
Formulate and solve (using GAMS) a mixed integer linear programming (MILP) problem to
select the generators to operate in the two periods to minimise the total cost. Propose an optimal
operating strategy, Explain.

Generato
r
Solar
Hydro
Gas
Wind

Fixed Startup/shutdown Cost


2000
5000
3000
2500

Fixed Cost per


Period of Operation
600
400
1250
1000

Cost per MW
Produced
7
4
9
6

Max
Capacity(MW
)
4000
7000
3800
3400

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