System or Technology Analysis Methodology

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     Lecture:Systems Analysis Methodologies

    Dr.JohnC.Wright

    MIT

    - PSFC

    28SEP2010 

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    Introduction Outline

    OUTLINE 

    Scopingstudy

    Systemsanalysis- increasing

    detail

    Lifecycleanalysis

    Simulationmodels

    Riskanalysisanduncertainty

    How

    are

    all

    these

    connected?

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    Introduction Outline

    INTRODUCTION  

    Manyissuesforsustainability requiringbalance 

    Weneedtoquantifyto 

    proceed 

    Deal

    with

    complexity

    and 

    uncertainty 

    Thisisthegoal“Systems 

    Analysis” 

    End

    result

    often

    involves

    very, 

    verylargecomputercodes 

    Howdowemakesuch computermodels? 

    3 SE T 4 Systems Analysis

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    Scopingstudy

    SCOPINGSTUDYCHARACTERISTICS 

    We’llseemoreofthisinafuelcostsexamplenextweek.

    Basicguidelinesforascopingstudy: 

    Highly

    simplified 

    Mostlylinearanalysis- addseparatecostsVeryfewfeedbackeffects

    Advantages 

    Relativelysimpletounderstand 

    Good

    overall

    picture Identificationofweaknesses 

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    SystemsAnalysis

    SYSTEMSANALYSISISTHENEXTSTEPINEVALUATION 

    Assumeafavorablescopingstudy

    Nextstepisadetailedsystemsanalysis

    Allelementsareanalyzedinmuchgreaterdetail

    For

    example

    in

    our

    nuclear

    plant

    scoping

    study

    we

    gave

    the

    fuel

    pricein$/kg

    Inasystemanalysismodelthesecostsarefurtherbrokendown

    Fuelcosts: 

    Mining

    costs Conversioncosts 

    Enrichmentcosts Financecosts 

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    SystemsAnalysis

    MODULARIZATIONOFSYSTEMSANALYSIS 

    Eachofthesemaybefurtheranalyzedoneortwolevelsdeeper.

    Input

    data

    will

    be

    based

    on

    experience

    and

    future

    projections.

    Theanalysiswillaccountforuncertainties.

    Alllowerlevelcontributionsarecombinedtoformonemoduleof

    thesystemscode 

    thefuelcostmodule. ⇒

    6 SE T 4 Systems Analysis

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    SystemsAnalysis

    SAINCLUDESNON-LINEAREFFECTS 

    AcriticalfeatureinSAistheinclusionofinterdependencies.

    Systemsanalysisarenotlinear.

    They

    include

    feedback

    effects.Forexampleconsiderminingcosts: 

    PlentyofReserves – noproblem,linearrelationworks. Reservesdwindle – otherissuesarise Fuelcostswillrise 

    Will

    new

    fuel

    be

    found,

    if

    so

    how

    much? Howwillthisaffecttheprojectedcostoffuel? 

    7 SE T 4 Systems Analysis

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    SystemsAnalysis

    BEWAREOFCOMPLEXCODES. 

    Systemsanalysiscodecontainsalargenumberofcomplex modules 

    Oftenhardtounderstandthewholepicture,oftenexpertinpartof

    the

    picture.

    Shouldbemorereliablethanascopingstudythought.

    Warning:

    Be

    very

    careful

    using

    complex

    systems 

    analysis

    codes!! 

    8 SE T 4 Systems Analysis

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    SystemsAnalysis

    SAISNOTONLYABOUTMONEY 

    Investorsarenottheonlypeopletocarryoutsystemsanalysis

    Investorsfocusonfinancialreturns

    Architectural

    engineers

    focus

    on

    technical

    credibility,

    schedule,

    andcost

    Environmentalistsfocusonpollution,wastedisposal,greenhousegasses,etc.

    Government

    focuses

    on

    the

    public

    good

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    SystemsAnalysis

    GOVERNMENT IMPACTONSAISTHROUGHREGULATION 

    Desirabilityofaregulationisintheeyeofthestakeholder.

    Everyoneisalobbyist. 

    Financial

    institutions. Engineeringfirms. 

    Environmentalgroups. Industrialgroups. 

    ConsiderationofimpactofregulationispartofanySA.

    There

    often

    is

    an

    uncertain

    political

    aspect

    to

    a

    regulation.

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    SystemsAnalysis

    STRUCTUREOFASYSTEMSANALYSIS 

    Numberofapproachestosystemsanalysis

    Methodbelowisfairlytypical

    Goal

    of

    the

    analysis

     – 

    answer

    the

    question

    Does

    it

    make

    sense

    to

    build

    a

    new

    power 

    plant

    (of

    type

    X)? 

    The

    end

    product

     – 

    a

    large,

    complex,

    hopefully

    all

    inclusive, 

    simulationcode. 

    11 SE T 4 Systems Analysis

    S A l i

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    SystemsAnalysis

    THESIMULATIONCODE 

    Technicalaspectsfromalifecycleanalysis

    Regulation

    aspects

    from

    a

    risk

    analysis

    Includefeedbackeffects

    Combinetocreateafinancialanalysis

    12 SE T 4 Systems Analysis

    S t A l i Lif C l A l i

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    Attributes: Costs Resource use Emissions Wastes Costs Performance etc.

    Sum cumulative attributes over total life cycle of product to compare net impact

     

    SystemsAnalysis LifeCycleAnalysis

    LIFECYCLEANALYSIS(LCA)ELEMENTS 

    Production ofRaw Materials

    ManufacturingProcess

    Use ofProduct

    Disposal

    Energy

    Recycle Wastes

    Emissions

    Wastes Wastes Wastes

    Comprehensivecradle-to-grave,wells-to-wheels,dust-to-dust

    analysisIncludes 

    Rawmaterials 

    Materials

    processing 

    Manufacturing 

    Distribution Repairandmaintenance Wastedisposal 

    Decommissioning 

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    MacDonald’s 

    Styrofoam or paper? 

    Trees (natural?) Oil (bad?) 

    Chemicals (worse)

    Paper (good ?)

    Styrofoam (??)

    Chlorine orPeroxide

    Pulp Acid or Alkali

    Benzene + C2H4 + etc.

    CFCs

    McD

    Hard to recycleCO2 Styrene

    Oil

    PCBs +Paper

    PentaneDioxins

    Plastic coating Polystyrene foamWater

    WastewaterLandfill Trash Recycle

    Courtesy of Elisabeth M. Drake. Used with permission.

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    Hydrogen Production Example

    • 

    Make from steam methane

    reforming?

    • 

    Make from water electrolysis

    using wind power?

    Courtesy of Elisabeth M. Drake. Used with permission.

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    SMR Results 

      H2 is a clean fuel, but its product ion from natural gas

    has environmental consequences

      H2

    plant itself produces few emissions, except CO2

    CO2 is the largest air emission (98 wt%) and accountsfor 77% of the GWP

    0.64 MJ of H2 produced for every 1 MJ of fossilenergy consumed

    Courtesy of Elisabeth M. Drake. Used with permission.

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    Wind/Electrolysis Study

    turbines electrolyzer H2 storage

    Wind turbines:

     Atlantic Orient Corporation (50kW x 3)

    Class 5 wind data from upper Midwest site

    (North Dakota)

    Electrolyzer:

    Stuart Energy (30 Nm3/hr nominal capacity)

    Cars fueled: fleet of 46 at 3 kg/car/week 

    Courtesy of Elisabeth M. Drake. Used with permission.

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    GWP and Energy Balance - 

    Wind/Electrolysis 

    Preliminary results:

    •  GWP = 650 g CO2-eq/kg H2 –  Only 5% of the greenhouse gas emissions from SMR

    •  Energy balance = 20 MJ of H2 produced for every1 MJ of fossil energy consumed –  31 times more than the net energy balance from SMR

    •  Emissions are from equipment manufacture

     –  

    Majority from concrete bases for wind turbines –   Water consumption in electrolysis accounts for nearly

    all resources

    Courtesy of Elisabeth M. Drake. Used with permission.

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    Hydrogen Production Choice? 

    • 

    Wind power offers significant reduction in GHG

    emissions

    •  For transportation, there is a mismatch between

    wind turbine energy availability and the large

    concentrated populations of cars

    •  Costs for hydrogen from wind power are MUCH

    higher than those from SMR

    •  For SMR, more fossil energy is consumed than H2energy produced

    Courtesy of Elisabeth M. Drake. Used with permission.

    SystemsAnalysis LifeCycleAnalysis

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    ACCURACYREFLECTSUNCERTAINTIES 

    Technicalaccuracyisgood

    Basedonestablishedengineeringprinciples

    AmountoffuelperyearAmount

    of

    stainless

    steel

    pipe

    Averagelifetimeofvalves

    Convertingtechnicalinto$moredifficult

    Interestrates

    Inflation

    rates 

    Costoffuel 

    14 SE T 4 Systems Analysis

    SystemsAnalysis AnExample

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    ANLCAOFNUCLEARFUELCOSTINCLUDINGSCARCITY 

    Costofnuclearfuelincludingscarcity

    Referencecase:U=$2000/kg

    Breakdown

    from

    the

    MIT

    study

    for

    cost

    per

    kg

    Ore $437Enrichment $117Fabrication $825StorageandDisposal $351

    Total

    $2040

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    SystemsAnalysis AnExample

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    EQUATIONSFORTHECOSTOFOREARENON-LINEAR 

    Knownreservesandcostoforeareinter-related

    10N (t )M F t 

    C ore(t ) =C i 

    exp k 1

    R i (t )−10N (t )M F t N coal

    N (t ) =N i0

    + +k 2N i0 t 

    T p 

      C ore(t )−C i R i (t ) =R i 0   1+k 3C ore(t )

    k 1 =2.3,k 2 =0.05,k 3 =2

    16 SE T 4 Systems Analysis

    SystemsAnalysis AnExample

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    COSTOFOREFROMSYSTEMSANALYSIS 

    1,000

    800

    600

    400

    200

    0

    0 10 20 30 40

    Year

    C[$/kg]

    N[#]

    R[107 kg] Notethesingular

    response

    around40

    years.Whatcausesthis?

    Whatdoesa

    plot

    of

    R

    vs

    C

    looklike?

    17 SE T 4 Systems Analysis

    SystemsAnalysis AnExample

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    CONCLUSION 

    Costoforeincreasesby30

    Oreis1/5thecostofuranium

    COE

    of

    uranium

    =

    0.56

    cent/kWhr

    Thisyields3.8cents/kWhr

    Notasbadwhenyoucalculatethepresentvalue

    Still – itcouldbeaproblem

    Uncertainty:

    what

    is

    the

    sensitivity

    to

    k 1,

    k 2,

    k 3

    18 SE T 4 Systems Analysis

    Systems

    Analysis

    Risk

    Analysis

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    RISKANALYSIS 

    Riskanalysisinvolvesaccidentstopeopleormechanicalfailures

    Toomanyinjuriesorfailureslowerthecapacityfactorandreduce

    revenue

    Wewanttominimizeriskbutitisnotpossibletoachievezerorisk

    Qualitativelyriskcanbewrittenas 

    Risk=Frequency×Consequence 

    19 SE T 4 Systems Analysis

    Systems

    Analysis

    Risk

    Analysis

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    TYPESOFRISK 

    Riskcanbecontinuousordiscrete

    Continuous:exposuretotoxicfumes

    Discrete:steampipeexplosion

    Consequencescouldcauseminorinjuries

    Consequencescouldcausedeath

    Consequencescouldinvolvelandorwatercontamination

    Even

    if

    no

    human

    or

    ecological

    damage,

    mechanical

    failures

    lowercapacityfactor

    20 SE T 4 Systems Analysis

    Systems

    Analysis

    Risk

    Analysis

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    AVOIDINGRISK 

    Threebasicapproaches:

    Ultra

    robust

    design

    to

    minimize

    failure

    Redundancy – onesystemfails,anothertakesover

    Increasedshut-downsformaintenanceandrepairs

    21 SE T 4 Systems Analysis

    Systems

    Analysis

    Risk

    Analysis

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    DETERMININGRISK 

    Howdowedeterminerisk?

    Thisistherealmofriskanalysis

    Singlecomponentfailuresrelativelyeasy

    QualificationdataavailableHistoryofrealworldexperienceCanpredictthemeantimebetweenfailure

    Singlesmallfailuresoftenharmless

    Single

    gigantic

    failures

    very

    rare

    22 SE T 4 Systems Analysis

    Systems

    Analysis

    Risk

    Analysis

    C F

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    COMPLEXFAILURES 

    Largest

    danger:

    often

    a

    sequence

    of

    minorfailuresleadstomajorcatastrophe

    Forexample:TMI,Challenger

    Analysis

    requires

    sophisticated

    tools

    FaulttreeanalysisEventtreeanalysisUncertaintyanalysis

    Probabilityofasevereaccident

    Greaterforasequenceofminor 

    failures 

    Smallerforasinglemajorfailure

    Fault

    Tree

    example

    23 SE T 4 Systems Analysis

    Systems

    Analysis

    Risk

    Analysis

    W ?

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    WHATTODO? 

    Recommendationsvarybygroup

    Builderstendtounderestimateriskstokeepthecostdown

    Example:

    Don’t

    worry

     – 

    the

    Big

    Dig

    is

    safe

    Others

    tend

    to

    overestimate

    the

    risks

    to

    avoid

    or

    delay

    construction

    Example:Nuclearisunsafe – don’tbuildit.

    Example:Windkillbirds – don’tbuildit.

    Oftenthearbiterofrisksaregovernmentagencies – theEPA,

    NRC,

    FDA,

    etc.Desireriskinformedregulations

    Regulationsconsistentwithseverityoftherisk

    24 SE T 4 Systems Analysis

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    MIT OpenCourseWarehttp://ocw.mit.edu

    22.081J / 2.650J / 10.291J / 1.818J / 2.65J / 10.391J / 11.371J / 22.811J / ESD.166J

    Introduction to Sustainable Energy 

    Fall 2010

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