Simulation analysis of energy production in the B. C. pulp and paper industry

Abstract

ABSTRACT This paper describes a dynamic simulation model of energy production and use by pulp and paper mills. The model can be used to assess the costs and benefits of the use of different proportions of wood waste (referred to as 'hog fuel') and fossil fuels to generate process steam and electricity, with the costs and benefits measured from several points of view, principally those of the mill management and of the economy as a whole. Using either point of view, the model has been fitted to the eighteen major pulp and paper mills in British Columbia, and used to assess the consequences of the size and nature of optimal hog fuel projects. Some results are reported in this paper and references are given to other papers containing more complete results of various aspects of the research project. INTRODUCTION Whenever there are big changes in technology or relative prices, many of the standard rules of thumb for optimal choices fall apart, and many new alternatives have to be considered in a systematic way. This offers great scope for the design and use of simulation models that capture the key elements of an industrial process and expose the key alternatives for This paper was presented to the conference on Simulation Modelling and Decision in Energy Systems, held in Montreal in June, 1978 and sponsored by the International Association of Science and Technology for Development. It represents early results of work also reported in [1], [2], [3] and [4]. While Helliwell is a continuing member of U.B.C.'s Department of Economics, Cox is currently at M.I.T.'s Energy Laboratory Cambridge, Mass.