Industrial Fuel Optimization through Dynamic Cost Modeling

摘要

With today's extremely volatile natural gas prices, it is more important than ever for industrial end users to develop and manage an effective fuel optimization program (FOP). Such a program enables corporate energy managers to fully leverage the dual-fuel assets already in place at many industrial facilities to determine and source the most cost-effective fuel supply for each plant. It also provides the end user with the leverage necessary to obtain pricing which is better than users without such resources. This pricing is obtained through negotiation with the utilities and commodity suppliers. This can be achieved by continuously monitoring market price signals and actively managing the fuel mix in response to the market. This realtime approach to price risk management can be a valuable part of any corporate energy strategy, which includes managing dual-fuel assets.