Modeling and Optimization of Integrated Methanol, Hydrogen, and Electricity Production Facility

This paper investigates the optimal operational strategies for a multi-functional energy generation facility utilizing Mixed-Integer Linear Programming (MILP) formulations solved through General Algebraic Modeling System (GAMS). It focuses on the integrated production of methanol, hydrogen, and electricity via co-electrolysis and PEM electrolyzer technologies under fluctuating market conditions. The study explores three operational scenarios: simultaneous production of all three commodities, co-production of hydrogen and methanol, and the last scenario focus on methanol and electricity production. Each scenario is tailored to strategic market alignment "selling electricity on an hourly basis, hydrogen daily, and methanol weekly" to maximize economic returns under varying market conditions. Each scenario is analyzed to determine the optimal dispatch strategy that leverages real-time pricing for electricity and hydrogen to enhance the profitability of the facility. Simulation results demonstrate the potential of co-electrolysis to maximize the profitability of the integrated plant, offering an efficient and economically viable approach for carbon utilization.