A supply chain model with integrated thermal recovery and electricity generation from industrial waste heat

Panel: 2. Sustainable production towards a circular economy

This is a peer-reviewed paper.

Authors:
Beatrice Marchi, University of Brescia, Dept. of Mechanical and Industrial Engineering, Italy
Simone Zanoni, University of Brescia, Dept. of Mechanical and Industrial Engineering, Italy
Marco Pasetti, University of Brescia, Department of Information Engineering, Italy

Abstract

The industrial sector is the most energy-demanding activity in modern societies, consuming about 54% of the world’s total delivered energy. The largest amount of waste heat in the industry sector is generated by energy-intensive processes, such as the manufacturing of food, paper, basic metals (e.g. iron and steel), chemicals, and non-metallic minerals. Among these, the metal industry, which includes iron and steel manufacturing, aluminium production, and metal casting, covers a great share of the overall energy consumption, and present large energy efficiency potentials. In these processes, the opportunity to recover waste heat represent an effective way to reduce both energy costs and greenhouse gas emissions. Recent research streams focused on the potential of supply chain management, and of integrated network in enhancing the outcomes of energy efficiency measures. A few works analysed the opportunity to recover energy from excess heat in integrated systems, mainly focusing on active applications for the generation of electricity. In this study, this approach is extended by formulating a supply chain inventory model with integrated waste heat recovery from the exhaust gases generated by energy intensive processes. The decision-making process is firstly modelled as a decentralized policy in which the two actors aim to minimize their own total costs, and then as a centralized policy in which the actors cooperate in order to optimize the economic performance of the supply chain. The decision variables of the model are the lot size, the number of shipment from the vendor to the buyer, and the amount and use of recovered energy.

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