Professional Documents
Culture Documents
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)
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
Process II
Process III
Maximum supply of A: 16 tons/hr (note: scale your cost coefficients divide them by 100)
Tout(K
)
350
350
400
420
Generato
r
Solar
Hydro
Gas
Wind
Cost per MW
Produced
7
4
9
6
Max
Capacity(MW
)
4000
7000
3800
3400