Topic: When is transformation conceptually applicable?Subscribe | Previous | Next
Joshua Neutel 3/8/2022
I am struggling to wrap my head around when we need to put sectors like refining or oil and gas extraction into transformation vs demand area. For example, refineries use electricity, gas, etc just like any other load. Would best practice to put the load portion of refining in the demand area, and then you can put capacity / capacity cost information in the transformation area, both for resources and cost accounting?
Charlie Heaps 3/11/2022
I would recommend modeling these under Transformation since they typically operate in order to produce secondary fuels that are first modeled with the Demand branches of LEAP. For example, oil products may be produced in reaction to the demand for gasoline, diesel, fuel oil, jet fuel, etc. coming from the Transport sector, or the demand for kerosene & propane in the hosueholds sector.
Note though that the ordering of Transformation modules is also important. For example, there may be additional demands for oil products that arise as a result of oil fired electricity generation. In this case an oil refining module will need to be placed BELOW an electricity generation module in the Tree structure.
Hope this helps,
Charlie
Joshua Neutel 3/14/2022
Thanks Charlie.
I am not sure if I made my point properly.
As I understand it, if I want to capture the economic impact of refineries being built up or torn down as a result of changes to demand, then I best do that in the Transformation area. That much is clear to me.
What is not clear to me is how I model the refinery itself needing electricity, natural gas, etc to run its operations.
As I understand it, the refinery would take an input of Crude Oil and output Gasoline, Jet Kerosene, Lubricants, etc. The efficiency in the Transformation area would have to do with the efficiency of a refinery turning Crude Oil into these products. I would also not add on environmental effects to my input fuel because we are not burning the Crude Oil itself.
While Transformation economics is important to me, I also want the model to know about the fuels the refineries actually use to perform the Transformation, especially the environmental impact of burning fossil fuels.
Are you suggesting perhaps that I have multiple input fuels? Crude Oil, Electricity, NG, etc? How would I define the "efficiency" of these products in that case? How would LEAP know the bounds on NG and electricity in this case? In the case of electricity, would I also be able to model the load shape?
It seems to me the "load" aspect of refineries is best in Demand, and the "processing" part of refineries is best in Transformation. But perhaps I am missing something? I obviously defer to your judgment and would love to learn.
Thank you kindly!
Josh
**** EDIT ****
Charlie, I think the missing link for me here was use of "Auxilary Fuels." After reading about these, I think all of the above becomes obviated and Transformation makes a lot more sense.
Keeping my above ramble / confusion in case it is helpful for others.
Josh
Charlie Heaps 3/21/2022
Great - sounds like you sorted this out for yourself. and yes, auxiliary fuel use was the missing link you were looking for.
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