Real options-based evaluation model for transformable plant designs in the process industry

Wörsdörfer, Dominik; Lier, Stefan; Crasselt, Nils

doi:10.1016/j.jmsy.2016.11.001

Cited by 20 publications

(19 citation statements)

References 26 publications

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“…To understand the importance of including a carbon emissions objective in the optimization model, the results of the optimization model described previously, abbreviated as OM1, are compared with the results of the optimization model OM2 that do not include carbon emissions as an objective to minimize. OM1 (described in Section 3) has three objective functions included in expressions (1), (2), and (3), to minimize costs, pressure deficits, and carbon emissions, respectively. The OM2 model has the two objective functions presented in expressions (15).…”

Section: Resultsmentioning

confidence: 99%

“…Myers [1] was the first to propose ROs and mention using option pricing theory to value nonfinancial or "real" investments with learning and flexibility. A number of studies have been published where the ROs concepts have been applied in various fields, such as industrial processes [2], energy systems [3], mining projects [4], flooding problems [5], and maritime costal defences [6]. For the design of WDNs, ROs have been explored by Huang et al [7], who use ROs accounting for future demand uncertainty in a singleobjective approach.…”

Section: Introductionmentioning

confidence: 99%

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Water Network Design Using a Multiobjective Real Options Framework

Marques

Cunha

Savić

et al. 2017

Journal of Optimization

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Water distribution networks (WDNs) are an essential element of urban infrastructure. To achieve a good level of performance, the traditional design of WDNs based on expected future conditions should be replaced by a flexible design, using real options (ROs), that accounts for uncertainty by taking a broader view of possible future options. This work proposes a multiobjective ROs framework that sets out to reduce costs, minimize hydraulic pressure deficiency, and a third objective for minimizing carbon emissions. A multiobjective simulated annealing algorithm is used to identify the Pareto-optimal solutions, thus enabling a trade-off analysis between solutions. These trade-offs show that a low pressure deficit solution is achieved by increasing investment at a much faster rate after a certain pressure deficit threshold (60 m). Also, the pressure deficits can only be reduced by increasing carbon emissions. Finally, this work also emphasizes the importance of including carbon emissions as a specific objective by comparing the results of the proposed model and another one that did not cover the environmental objective. The results show that it is possible to reduce CO2 for the same level of capital expenditure or the same level of network pressure deficits if carbon emissions are minimized in the optimization process.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Water Network Design Using a Multiobjective Real Options Framework

Marques

Cunha

Savić

et al. 2017

Journal of Optimization

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“…Im Jahr 2015 wurden die verschiedenen Aspekte im Themenheft „Neue Produktionskonzepte” erneut aufgegriffen und deren Weiterentwicklung dargestellt. Auch der wirtschaftliche Vorteil modularer Anlagen wurde in verschiedenen Arbeiten hervorgehoben .…”

Section: Innovationen Im Bereich Trenntechnikunclassified

Separation Units 4.0 – Trennapparate heute und morgen

Riese

Hoff

Stock

et al. 2020

Chemie Ingenieur Technik

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Die chemische Industrie sieht sich mit gravierenden Herausforderungen konfrontiert: Die Einhaltung der Klimaschutzziele, die Auswirkungen der Energiewende und die zunehmende Bedeutung der Kreislaufwirtschaft treffen die gesamte Wertschöpfungskette. Lösungsansätze von der Prozess-über die Apparateebene bis hin zum Einzelphänomen sind notwendig, um die Wettbewerbsfähigkeit dieses zentralen Industriezweigs zu erhalten. In diesem Beitrag werden aktuelle Entwicklungen und zukünftige Handlungsfelder in der Trenntechnik, die für diese Herausforderungen wertvolle Beiträge leisten können, dargestellt.

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“…[42] Furthermore,b ased on ar eal options evaluation, it could be demonstrated that modular plants are advantageous even at low levels of uncertainties because of their higher degree of flexibility. [43]…”

Section: Economic Efficiency Of Modular Plantsmentioning

confidence: 99%

Roadmap for a Smart Factory: A Modular, Intelligent Concept for the Production of Specialty Chemicals

et al. 2018

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Digitalization and increasing the flexibility of production concepts offer the possibility to react to market challenges in the field of specialty chemicals. Shorter product lifetimes, increasing product individualization, and the resulting market volatility impose new requirements on plant operators. Novel concepts such as modular production plants and developments in digitalization (Industry 4.0) are able to assist the implementation of smart factories in specialty chemicals. These essential concepts will be presented in this Minireview.

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Real options-based evaluation model for transformable plant designs in the process industry

Cited by 20 publications

References 26 publications

Water Network Design Using a Multiobjective Real Options Framework

Water Network Design Using a Multiobjective Real Options Framework

Separation Units 4.0 – Trennapparate heute und morgen

Roadmap for a Smart Factory: A Modular, Intelligent Concept for the Production of Specialty Chemicals

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