The refining industry is under immense pressure to produce cleaner products
but faces low economic margins because of stricter environmental regulatio
ns and depressed market demand. In this situation, refinery planning become
s very important as it can exploit all potential opportunities to push the
economic margin to the maximum limit. This paper presents a method for over
all refinery optimization through integration of the hydrogen network and t
he utility system with the material processing system. The problem of optim
izing each of these three systems is very complex in its own right. To make
the problem of overall optimization solvable, the current practice adopts
a decomposition approach, in which material processing is optimized first u
sing linear programming (LP) techniques to maximize the overall profit. The
n, supporting systems, including the hydrogen network and the utility syste
m, are optimized to reduce operating costs for the fixed process conditions
determined from the LP optimization. Essentially these three systems are d
ealt with separately, which usually leads to nonoptimal solutions for refin
ery operations. A new optimization method is proposed that is developed on
the basis of a sound understanding of interactions between the three system
s and the proper use of mathematical modeling. This method considers the op
timization of refinery liquid flows, hydrogen flows, and steam and power fl
ows simultaneously. As a result, this method furnishes new insights into th
e problem of refinery optimization and can provide significant benefits to
the refining industry in exploiting the true potential of the processes and
obtaining truly optimal operation.