Optimization based design of an industrial cluster for economic and environmental benefits

This work proposes an optimization model for the design of an industrial cluster based on sugarcane bagasse in the Indian context. Three different products, namely, ethanol, electricity, and pellets, along with the possibility of selling raw bagasse and burning it in boiler are considered. An economic optimization model to maximize the net present value of the cluster is formulated. Simultaneously, a multi-objective optimization model to minimize the environmental impacts is formulated. The model was applied to a case of a sugar mill processing 181 Mg/h sugarcane. Economic optimization recommended electricity production as the optimal option at the current product prices. This was also desirable from the GHG emission reduction standpoint. However, electricity production led to highest water footprint. Ethanol price has to increase by 100% over the target price for economic feasibility. Pelletization was preferred only from a water footprint perspective.