Fuels and energy logistics

The CarbSteeler Model is a mathematical cost optimization model to evaluate the distinct decarbonization pathways for the Brazilian steel industry. It integrates local resources and factors—encompassing technologies, processes, and economic aspects, such as economies of scale and potential synergies with other industries via resource sharing in geographical clusters. The main resources analyzed include biomass, biochar, biomethane, hydrogen, natural gas, coke, electricity, scrap, iron ore, and water. The processes covered in the model include the production of green hydrogen, biochar, pig iron, hot briquetted iron (HBI), and steel, by both Electric Arc Furnace (EAF) and Basic Oxygen Furnace (BOF). The model operates under constraints such as energy and mass balances between processes, regulatory requirements (including green certification), annual steel production volumes to simulate current and future scenarios, and an annual emissions budget. These constraints ensure that the model considers operational and regulatory realities. The objective function and constraints of the model are flexible, allowing, for example, to maximize low-carbon steel production within an established emissions budget, or to minimize emissions for a specific steel production demand. Additionally, the model includes investment and Operation and Maintenance (O&M) costs, adjusted according to scale.

The project aims at the development of CCOM (Coal Contracting Optimization Model), a system that optimizes the contracting strategy and the transportation schedule for mineral coal for thermoelectric power plants. The project’s activities include: (i) Mathematical formulation of the coal acquisition optimization model; (ii) Specification of the optimization system; (iii) Implementation of the optimization model; (iv) Implementation of the data management interfaces; and (v) Implementation of auxiliary models for result analysis.

This project resulted in the development of the GNoMo software, focused on modeling and optimizing the operation of thermal power plants integrated with regasification terminals. The operation manages the acquisition of Liquefied Natural Gas (LNG) in a complex scenario involving maritime transport, floating storage (FSRU) and uncertainties in energy dispatch. To face challenges such as adverse weather conditions, logistical delays and price volatility, the tool uses advanced stochastic optimization techniques, minimizing operating costs and mitigating financial exposure risks. In addition to daily operation, the software enables investment analysis, simulating expansion scenarios such as new storage units and integration with the gas grid.