Optimization Simulation, Using Steel Plant Off-Gas for Power Generation: A Life-Cycle Cost Analysis Approach

Yang-Kon Kim and Eul-Bum Lee
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Yang-Kon Kim: Graduate Institute of Ferrous Technology (GIFT) and Graduate School of Engineering Mastership (GEM), Pohang University of Science and Technology (POSTECH), 77 Cheongam-Ro, Nam-Ku, Pohang 37673, Korea
Eul-Bum Lee: Graduate Institute of Ferrous Technology (GIFT) and Graduate School of Engineering Mastership (GEM), Pohang University of Science and Technology (POSTECH), 77 Cheongam-Ro, Nam-Ku, Pohang 37673, Korea

Energies, 2018, vol. 11, issue 11, 1-17

Abstract: This research aims to contribute to the international desires of greenhouse gas mitigation through a study on the optimization of 100 MW off-gas power plants’ subcritical steam cycle, operating in conjunction with steel plants. The performance and fiscal efficiency of the off-gas power plants are based on data collected from Krakatau Steel plants in Indonesia, simulated and analyzed through thermodynamic simulation model (PEPSE). The three scenarios simulated for comparison are: (1) 100 MW off-gas power plant as-is operation, (2) 100 MW off-gas power plant optimized, and (3) 100 MW cogeneration off-gas power plant. The optimization of the off-gas power plant and use of steam extraction was found to have a 45 M and 26 M USD savings in comparison to the base power plant, assuming a 5.5% discount rate and 400 Million USD capital expenditure. The theoretical findings are of use to academia and industry in providing proof of potential cost-savings of integrating off-gas into existing power generation operations.

Keywords: life-cycle cost analysis; steel plant; off-gas power plant; thermodynamic analysis; internal rate of return; simulation optimization (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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