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At least 19 records

Determining the profitability of energy storage over its life cycle using levelized cost of storage

Levelized cost of storage (LCOS) can be a simple, intuitive, and useful metric for determining whether a new energy storage plant would be profitable over its life cycle and to compare the cost of different energy storage technologies. However, researchers and industry decision makers still use conflicting definitions of LCOS. For example, some include charging cost, while others only include round trip efficiency (RTE) losses. Additionally, inputs to the existing formulations are not specific enough to generate repeatable results across studies, which reduces trust in the metric. To push for standardization in economic assessment of batteries and other energy storage devices, the authors review existing definitions of LCOS and identify the desired characteristics for a standard. They then propose a new definition and demonstrate that it fits these characteristics very well relative to other prominent options. Unit analysis is applied to this proposed definition to provide a deeper understanding of the equations and to demonstrate its effectiveness. Finally, the sensitivity of LCOS to different input parameters is investigated to help users understand how to compare analyses from literature to their own. The authors also provide a spreadsheet and a Python script to streamline adoption of the proposed definition.

25 ENERGY STORAGE

Hybrid-Energy-Powered Electrochemical Ocean Alkalinity Enhancement Model: Plant Operation, Cost, and Profitability

Electrochemical ocean alkalinity enhancement is a form of marine carbon dioxide removal, a rapidly growing industry that is powered by efficient onshore or offshore energy sources. As more and larger deployments are being planned, it is important to consider how variable energy sources like tidal energy can impact plant performance and costs. An open-source Python-based generalizable model for electrodialysis-based ocean alkalinity enhancement has been developed that can capture key system-level insights of the electrochemistry, ocean chemistry, acid disposal, and co-product creation of these plants under various conditions. The model additionally accounts for hybrid energy system performance profiles and costs via the National Laboratory of the Rockies’ H2Integrate tool. The model was used to analyze an example theoretical plant deployment in North Admiralty Inlet, including how the plant is impacted by the available energy sources in the region and the scale at which plant costs are covered by the co-products it generates, such as recycled concrete aggregates, without requiring carbon credits. The results show that the example plant could be profitable without carbon credits at commercial scales of 100,000 to 1 million tons of carbon dioxide removal per year, so long as it uses low-cost electricity sources and either sells acid or recovers recycled concrete aggregates with about 1 molar acid concentrations, though more research is needed to confirm these results.

hybrid energy

Are better combinations of DERs more profitable?: Combinatorial optimization for aggregation of DERs in wholesale electricity markets

Recently, regulatory changes in various countries have enabled the participation of small-scale distributed energy resources (DERs) aggregated in virtual power plants (VPPs) in wholesale electricity markets. The inherent uncertainty and variability of resources comprising VPPs can lead to imbalances between forecasted and metered outputs, potentially resulting in the deficient settlement of generation under imbalance settlement rules. To address this challenge, it is essential to manage variability in the planning phase and uncertainty in the operation phase. Most current research focuses on managing forecasting errors in the operational phase, with insufficient attention given to the planning phase. Here, to bridge this gap, this paper proposes an optimal combination strategy for DERs to maximize the market participation revenue of VPPs by proactively managing variability in the planning phase. To estimate the expected revenue, we conducted analyses for homogeneous and heterogeneous DERs using Monte Carlo simulations and genetic algorithms. Remarkably, the proposed method demonstrated approximately 8 % higher revenue compared to the neighboring group case when considering diversity in DER set configuration with equal proportions of photovoltaics and wind.

24 POWER TRANSMISSION AND DISTRIBUTION

A multi-objective optimization model for cropland design considering profit, biodiversity, and ecosystem services

More sustainable agricultural methods are needed to alleviate the decreases in biodiversity and ecosystem services that have occurred because of industrial agriculture. One such method is the inclusion of alternative crops into croplands that can support biodiversity, reduce erosion and chemical runoff, and sequester carbon in the soil. However, the question of where such crops should be planted to balance competing economic and environmental objectives remains open. To this end, we develop a mixed-integer quadratically constrained program to optimize the layout of a cropland considering economic, biodiversity, greenhouse gas emissions, and water quality objectives. We include spatially varying fertilization as a decision variable in addition to crop establishment location. We further include the effect of core area and edges between different crops on biodiversity. To demonstrate the applicability of the model, we apply it to an example field, showing how the optimal cropland design changes as a decision-maker prioritizes different objectives and as edges have different impacts on biodiversity.

54 ENVIRONMENTAL SCIENCES

Comparative Economic Analysis Between Bioenergy and Forage Types of Switchgrass for Sustainable Biofuel Feedstock Production: A Data Envelopment Analysis and Cost–Benefit Analysis Approach

ABSTRACT The capacity to produce switchgrass efficiently and cost‐effectively across diverse environments can be pivotal in achieving the short‐ and medium‐term Sustainable Aviation Fuel targets set by the U.S. Department of Energy. This study evaluated the economic performance of forage‐ and bioenergy‐type switchgrass cultivars and their response to N fertilization under diverse marginal environments across the US Midwest that included Illinois (IL), Iowa (IA), Nebraska (NE), and South Dakota (SD). Data Envelopment Analysis (DEA) was used to evaluate the efficiency of 23 Decision‐Making Units (DMUs)—cultivar types and N fertilization rate combinations—while a cost–benefit analysis calculated their profitability over 5 years. Results showed that two energy‐type cultivars—“Independence” and “Liberty”—were superior economically to the forage cultivars. Independence performed best with the highest profit margin when fertilized at 56 kg N ha −1 , particularly in the US hardiness zone 6a (Urbana, IL). Liberty exhibited the highest profit margins in hardiness zone 5b (Madrid, IA, and Ithaca, NE) at 56 kg N ha −1 and showed exceptional profitability with 28 kg N ha −1 in hardiness zone 6b (Brighton, IL). Switchgrass cultivar “Carthage” showed better efficiency score and profitability results in hardiness zone 4b (South Shore, SD) at 56 kg N ha −1 . The profit trends observed in current study sites may indicate broader patterns across similar US hardiness zones. This study provides valuable insights for decision‐makers to optimize input strategies for biomass production of bioenergy switchgrass to meet renewable energy demands.

Arshad, Muhammad Umer [Department of Crop Sciences

Yield From Iowa's First Commercial Miscanthus Fields: Implications of Spatial Variability for Productivity and Sustainability Beyond Research Plots

The cultivation of sterile giant miscanthus (Miscanthus × giganteus, M × g) for bioenergy and bioproducts has expanded into grain-cropped land in the United States (US) as local markets developed for this high-yielding perennial grass (10–30 Mg DM ha −1 ). However, the magnitude of spatial and temporal variability in yield within US Corn Belt fields, along with impacts on economic return and sustainable land management, is poorly understood. This study established a diagnostic model relating remote sensing-derived vegetation indices to ground truth data from 105 hand-harvested stem biomass samples, which were strategically selected to represent the full range of vegetation index observations. The high-resolution satellite-sensed vegetation indices captured > 90% of the yield variation measured within fields. This model was then used to predict yield variability and assess economic performance across four of the first commercial M × g fields in the Corn Belt state of Iowa, US. Significant spatial variability in biomass dry matter (DM) yields (9.3–18.1 Mg DM ha −1 ) and net profits ($\$$83 to $\$$1211.5 ha −1 ) was observed. All fields were profitable in all site-years. When low profit occurred, it was explained by limited management experience of the crop in Iowa. The breakeven yield at a selling price of $\$$130 Mg −1 varied from 9.0–12.1 Mg ha −1 at 15% moisture content (7.6–10.3 Mg DM ha −1 ). Breakeven prices ranged from $\$$73 to $\$$122.4 Mg −1 , matching ranges used in the Department of Energy Billion Ton Report (US Department of Energy, 2023). Notably, M × g yield and profits were commensurate with grain crops particularly with favorable precipitation. This study provides insight on the M × g management “learning curve”, performance on marginal land and in drought conditions, and demonstrates that addressing yield gaps, reducing costs, and implementing precision agriculture strategies can enhance profitability. These findings emphasize the value of remote sensing technologies in guiding sustainable and competitive commercial-scale M × g production.

60 APPLIED LIFE SCIENCES

An analysis of physics limited dispatch of nuclear renewable integrated energy systems using deep reinforcement learning and dynamic modeling

Previous approaches to dispatching nuclear integrated energy systems (NIES) have focused on the profitability and flexibility of these systems to operate on energy grids with highly variable pricing. However, due to the complexity involved in modeling and designing these systems, there has been less emphasis on ensuring that these dispatch strategies are physically achievable. It is imperative to develop methods that allow the system to remain within the desired NIES operating conditions and perform this based on realistic limited forecasted information. This research employs next generation artificial intelligence, namely deep reinforcement learning (DRL), and a dynamic system model written in Modelica to find a safe and profitable dispatch strategy for a solar nuclear hybrid design. The DRL agent is shown to find a novel dispatch strategy that manages both power ramping and power levels while respecting operational limits. This DRL-based dispatch is compared to other dispatching strategies including an optimal design solution from mixed integer linear programming (MILP). It is found that incorporating the physics of such a tightly coupled NIES limits the profitability of the MILP-based dispatch strategy. As a result, the MILP solution overestimates the design’s generated revenue. In contrast, DRL significantly reduces the number of breaches of safe operational conditions during energy arbitrage while maintaining profitability. Furthermore, this work paves the way for a more detailed assessment of NIES profitability and could be used to aid operator decisions on future NIES projects.

14 - SOLAR ENERGY

Agent-based modeling for multimodal transportation of CO 2 for carbon capture, utilization, and storage: CCUS-agent

Here, to understand the system-level interactions between the entities in Carbon Capture, Utilization, and Storage (CCUS), an agent-based foundational modeling tool, CCUS-Agent, is developed for a large-scale study of transportation flows and infrastructure in the United States. Key features of the tool include (i) modular design, (ii) multiple transportation modes, (iii) capabilities for extension, and (iv) testing against various system components and networks of small and large sizes. Five matching algorithms for CO 2 supply agents (e.g., powerplants and industrial facilities) and demand agents (e.g., storage and utilization sites) are explored: Most Profitable First Year (MPFY), Most Profitable All Years (MPAY), Shortest Total Distance First Year (SDFY), Shortest Total Distance All Years (SDAY), and Shortest distance to long-haul transport All Years (ACAY). Before matching, the supply agent, demand agent, and route must be available, and the connection must be profitable. A profitable connection means the supply agent portion of revenue from the 45Q tax credit must cover the supply agent costs and all transportation costs, while the demand agent revenue portion must cover all demand agent costs. A case study employing over 5500 supply and demand agents and multimodal CCUS transportation infrastructure in the contiguous United States is conducted. The results suggest that it is possible to capture over 9 billion tonnes (GT) of CO 2 from 2025 to 2043, which will increase significantly to 22 GT if the capture costs are reduced by 40 %. The MPFY and SDFY algorithms capture more CO 2 earlier in the time horizon, while the MPAY and SDAY algorithms capture more later in the time horizon.

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATI

Economic Incentives for Agrivoltaics Systems with Commodity Crops in the Midwestern United States

Declining costs of photovoltaic (PV) technology and rising market and policy incentives are leading to the growing deployment of PV on cropland in the US Midwest, leading to concerns about the displacement of food and feed crop production. Agrivoltaic (AV) technology enables the dual use of land by co-locating PV energy and crop production, potentially reducing land-use competition with crop production. We develop a benefit-cost analysis framework to compare the net economic returns from AV to those with stand-alone PV and crop production on a representative field and show conditions under which AV can be more profitable for both a solar developer and a farmer. We integrate it with a crop and solar energy model to simulate the performance of various field designs and space and height configurations in AV systems to accommodate soybean production with conventional farm equipment under representative conditions in the US Midwest. We find that an AV system with soybean production is less profitable than PV alone for a solar developer due to the high capital costs of raising panel height, and less profitable for a farmer than leasing land for PV due to its adverse effects of shading on crop yield. We discuss the changes in technology and market prices of solar energy and soybeans that are necessary to make the AV system profitable for solar developers and farmers. We show that AV can worsen rather than mitigate the conflict between food crops and solar energy production in the Midwest.

14 SOLAR ENERGY

Game theoretic modeling and optimization of competition and collaboration in dual channel electronic waste supply chains

The rapid growth of electronic waste (e-waste) presents critical challenges for sustainable resource recovery and environmental protection. This study develops a dual-channel closed-loop supply chain (CLSC) model formulated as a hierarchical Stackelberg game, that integrates dynamic pricing and cost-sharing mechanisms to optimize both economic and environmental outcomes. The model explicitly captures strategic interactions between manufacturer-led and third-party recycling channels, accounting for consumer behavior, regulatory incentives, and market competition. Numerical simulations conducted (implemented over a four-iteration horizon using a commercial optimization solver) show that, relative to the baseline equilibrium, manufacturer profit increases from 11.6 thousand USD to 37.9 thousand USD (+226.8%), total recycled volume rises from 7,848 to 7,942 units (+1.2%), and collector profit nearly doubles under cost-sharing, enabling more equitable profit distribution. Furthermore, scenario-based simulations across Sub-Saharan Africa, high-income economies, and emerging Asian industrial countries reveal that infrastructure quality, policy intensity, and labor costs critically shape recycling efficiency and profit allocation. These findings demonstrate that subsidies alone are insufficient to ensure system efficiency. Instead, coordinated strategies that integrate internal incentive alignment with context-sensitive policy support are required. Overall, this study offers a robust framework for designing resilient, efficient, and regionally adaptable e-waste management systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY

A Study of Financial Impacts of Pooled Rideshare Based on Assignment Strategies

This study explores the potential profitability of a pooled rideshare service in a simulation-based case study of two US metropolitan regions in the context of two fleet assignment strategies. A new method of obtaining more accurate fares is created to address scalability and accuracy assumptions relevant to pooling choice. Cases for private rideshare fleets, public mobility on demand offerings, and autonomous fleets are explored and analyzed. Two regions of differing types are explored to illustrate the impacts of geo-spatial demand density of profitability, with one region capturing a large urban and suburban environment and the second a less dense more compact small city. Results indicate that the cost of human drivers is prohibitively expensive, and regulation of driver pay extends the issue of financial viability. Despite these shortcomings, a more efficient rideshare assignment strategy is shown to increase profitability by as much as 60%. The smaller, more dense region was illustrated to experience a greater increase in profitability than the larger region when pooling was improved.

Paul, Joseph

Optimizing Transportation Networks for E-Waste Reverse Logistics: A Multi-Modal Cost Allocation and Pricing Strategy

The exponential growth of electronic waste (e-waste) poses critical challenges for sustainable reverse logistics and transportation network optimization. This study develops a dual-channel transportation framework for e-waste logistics that integrates dynamic freight pricing, cost allocation mechanisms, and game-theoretic coordination. The model captures interactions between centralized hubs and distributed processing networks, accounting for freight rate elasticity, volume allocation, and capacity constraints. Using Stackelberg game theory and cost-sharing strategies, the framework optimizes transportation efficiency and profit distribution across logistics channels. Numerical simulations show that the dual-channel structure increases centralized hub profit by 226.8% compared to baseline single-channel operations, while boosting total transported volume by 1.2% and nearly doubling freight collector profit under cost-sharing. Scenario analyses across regional infrastructures reveal that network density, policy incentives, and logistics costs shape routing efficiency and profit allocation. These findings suggest that coordinated strategies combining dynamic pricing, targeted infrastructure investment, and strategic cost allocation are needed to design efficient, resilient, and regionally adaptable e-waste transportation systems.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Design and Optimization of Processing Pathways for Rare Earth Element Recovery from End-of-Life Products

In this presentation, we first discuss the benefits of targeting end-of-life (EOL) products as a feedstock. We then discuss the problem statement of designing a processing facility for recovering rare earth elements (REEs) from EOL HDDs and motors from EOL EVs/HEVs. We then discuss the most profitable pathway, and then discuss the environmental impacts associated with the processing pathway, comparing it to a processing facility in China, and find it to have lower impacts overall. We also investigate the trade-off solutions for other pathways that are not as profitable, but have lower impacts by generating Pareto Fronts. In the next portion of the presentation, Critical Materials Recycling, Inc. is discussed. We discuss how their process was found to be the optimal pathway after performing superstructure optimization, and how we are currently working with them to further optimize their process to increase profits. Finally, we wrap up with conclusions summarizing the main takeaways of the presentation.

36 MATERIALS SCIENCE

Optimization for Bioenergy Systems

The Sustainable Aviation Fuel (SAF) Grand Challenge (Langholtz, 2024 ) seeks to generate 35 billion gallons of SAF each year by 2050, with corn stover, an agricultural byproduct, playing a key role as a feedstock. This study develops an optimization framework to enhance the quality and quantity of corn stover while ensuring economic and environmental viability. Using the Decision Support System for Agrotechnology Transfer (DSSAT) crop model, we simulate the effects of cover crops on rotation yield, soil moisture balance, and nitrogen cycling across diverse climates and soils. The model outputs, including yield data and soil quality changes, inform a Mixed-Integer Linear Programming (MILP) optimization model. This model aims to maximize economic and environmental returns by incorporating production costs, direct and indirect income, and environmental incentives. The optimization model evaluates 280 agriculture management plans composed of various crop management strategies, including corn stover removal rates, cover crop adoption, and fertilization practices. It seeks to identify the optimal combination of crop and tillage decisions for each subfield, maximizing profits while enhancing soil carbon sequestration and reducing greenhouse gas emissions. Outputs include detailed subfield locations, optimal management plans, and profits per hectare and per acre, allowing for comparison with literature values on farm profits. This study provides a robust optimization framework supporting the SAF Grand Challenge by proposing economically viable and environmentally sustainable strategies for corn stover utilization. The findings highlight corn stover's potential as a sustainable feedstock for SAF production, offering practical solutions to enhance its quality and quantity while maintaining soil health. Idaho is used as a case study to demonstrate the framework's applicability and effectiveness in real-world scenarios. Langholtz, M. H., Davis, M., Hellwinckel, C., De La Torre Ugarte, D., Efroymson, R., Jacobson, R., Milbrandt, A., Coleman, A., Davis, R., Kline, K. L., Badgett, A., Curran, S., Schmidt, E., Theiss, T., Fried, J., English, B., Lambert, L., Cook, H., Field, J., ... Walker, L. (2024). 2023 Billion-Ton Report: An Assessment of U.S. Renewable Carbon Resources. https://doi.org/10.2172/2441098 DSSAT Foundation. (2025). Decision Support System for Agrotechnology Transfer (DSSAT). Retrieved from https://dssat.net/

09 - BIOMASS FUELS

Benchmarking thermal energy storage cost for industrial process heat

Process heat accounts for roughly half of industrial energy demand, and currently 95% of process heat is derived from the combustion of natural gas, oil, and coal. Electrification of industrial heating could be an alternative, potentially expanding locations suitable for manufacturing; however, industrial facility owners may desire energy storage to stabilize energy costs. In this work, the economic benefits of pairing thermal storage with electrified process heat to reduce the average price paid for energy are analyzed. Cost savings focus on energy arbitrage, or leveraging flexible energy pricing schemes, alone. The cost of natural gas combustion across decades (2019-2060) is compared to the costs of electricity and thermal energy storage in four United States Independent System Operator (ISO) regions. Systems installed today may not yield positive net present value (NPV) compared to the use of natural gas. However, using estimated electricity prices, systems installed in 2030 using arbitrage alone could be profitable when compared to natural gas in some regions of the U.S. Furthermore, if capital expenditures could be reduced by 50% for sensible thermal storage systems by 2030, profitable systems are found across all regions. This implies that electrification of industrial process heat, when paired with inexpensive thermal energy storage systems, could be less expensive than brownfield natural gas systems, using arbitrage as the only source of revenue and without a dependency on any future policy drivers such as pricing externalities that could further incentivize the electrification of industrial process heat.

24 POWER TRANSMISSION AND DISTRIBUTION

Evaluating the potential of plastic waste upcycling using thermochemical technologies: A case study in Spain

A plastic waste upcycling value chain model has been applied to assess the potential of processing packaging waste in Spain using thermo-chemical technologies to produce low-density polyethylene (LDPE) and polypropylene (PP), which are highly valuable materials. The model projects an annual profit of 120.6 M$\$$/yr, with a capital investment of 789.3 M$\$$, generating 3285 jobs and contributing 65.5 M$\$$/yr to Spain’s economy. The achieved circularity rate of the waste processing infrastructure exceeds 40 %, incorporating recycled HDPE and PET. Despite these advantages, regulatory gaps and market hesitancy toward recycled materials due to quality concerns hinder adoption. Additionally, economies of scale remain underutilized in Spain due to lower plastic waste collection levels compared to countries such as the United States. This network, while less profitable, is environmentally superior, yielding upcycled products with a Global Warming Potential 20–35 % lower than their virgin, fossil-fuel counterparts, confirming this as a viable and sustainable alternative.

Chemical upcycling