Generalized capital investment planning of oil-refineries using MILP and sequence-dependent setups

Brenno C. Menezes, Jeffrey D. Kelly, Ignacio E. Grossmann, Alkis Vazacopoulos

Research output: Contribution to journalArticlepeer-review

19 Scopus citations

Abstract

Due to quantity times quality nonlinear terms inherent in the oil-refining industry, performing industrial-sized capital investment planning (CIP) in this field is traditionally done using linear (LP) or nonlinear (NLP) models whereby a gamut of scenarios are generated and manually searched to make expand and/or install decisions. Though mixed-integer nonlinear (MINLP) solvers have made significant advancements, they are often slow for large industrial applications in optimization; hence, we propose a more tractable approach to solve the CIP problem using a mixed-integer linear programming (MILP) model and input-output (Leontief) models, where the nonlinearities are approximated to linearized operations, activities, or modes in large-scaled flowsheet problems. To model the different types of CIP's known as revamping, retrofitting, and repairing, we unify the modeling by combining planning balances with scheduling concepts of sequence-dependent changeovers to represent the construction, commission, and correction stages explicitly in similar applications such as process design synthesis, asset allocation and utilization, and turnaround and inspection scheduling. Two motivating examples illustrate the modeling, and a retrofit example and an oil-refinery investment planning problem are also highlighted.

Original languageEnglish
Pages (from-to)140-154
Number of pages15
JournalComputers and Chemical Engineering
Volume80
DOIs
StatePublished - 2 Sep 2015

Keywords

  • Investment planning
  • Oil-refinery production
  • Process design synthesis
  • Sequence-dependent changeovers

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