A Collaborative Decarbonization Strategy through an Integrated Smart Energy Hub: Game Theory Approach under Uncertainty

Abstract

The world is moving toward decarbonization to meet the greenhouse gas emission targets set by the Paris Agreement. This transition presents significant challenges for sectors with hard-to-abate emissions. These industries either have processes that are not suited to non-fossil energy sources or inherently generate carbon dioxide through process chemistry itself. Carbon capture and storage (CCS) offer a technically viable solution, but it is expensive to implement currently. Industrial symbiosis networks that share CCS facilities can make emissions reduction more affordable for companies. This study introduces the concept of a smart energy hub that combines a smart energy system with CCS to reduce hard-to-abate emissions in industrial symbiosis networks. An optimization model is developed for planning a smart energy hub. Cooperative game theory is used to allocate cost savings among the plants involved, and Monte Carlo simulation is used to assess the robustness of the solution to price fluctuations. This modelling framework is demonstrated through a case study involving an ammonia plant, a cement plant, and an iron and steel plant. Results indicate a 39.4% cost reduction resulting from cooperation compared to that of each plant operating independently. Based on Shapley values, the ammonia plant consistently has the highest marginal contribution to the coalition, while the cement plant has the lowest. These results highlight the benefits of collaboration in achieving industry-level decarbonization goals.

To read the full paper, please click: https://doi.org/10.1021/acs.iecr.5c01729