In industrial practice, constrained steady state optimisation and pred
ictive control are separate, albeit closely related functions within t
he control hierarchy. This paper presents a method which integrates pr
edictive control with on-line optimisation with economic objectives. A
receding horizon optimal control problem is formulated using linear s
tate space models. This optimal control problem is very similar to the
one presented in many predictive control formulations, but the main d
ifference is that it includes in its formulation a general steady stat
e objective depending on the magnitudes of manipulated and measured ou
tput variables. This steady state objective may include the standard q
uadratic regulatory objective, together with economic objectives which
are often linear. Assuming that the system settles to a steady state
operating point under receding horizon control, conditions are given f
or the satisfaction of the necessary optimality conditions of the stea
dy-state optimisation problem. The method is based on adaptive linear
state space models, which are obtained by using on-line identification
techniques. The use of model adaptation is justified from a theoretic
al standpoint and its beneficial effects are shown in simulations. The
method is tested with simulations of an industrial distillation colum
n and a system of chemical reactors. (C) 1998 Elsevier Science Ltd. Al
l rights reserved.