Optimisation of fuel usage and steam availability in the power and steam plant of a paper mill

This paper presents the results of a project aimed at minimising fuel usage while maximising steam availability in the power and steam plant of a large newsprint mill. The approach taken was to utilise the better regulation and plant wide optimisation capabilities of Advanced Process Control, especially Model Predictive Control (MPC) techniques. These have recently made their appearance in the pulp and paper industry but are better known in the oil and petrochemical industry where they have been used for nearly 30 years. The issue in the power and steam plant is to ensure that sufficient steam is available when the paper machines require it and yet not to have to waste too much steam when one or more of the machines suffers an outage. This is a problem for which MPC is well suited. It allows variables to be kept within declared constraint ranges, a feature which has been used, effectively, to increase the steam storage capacity of the existing plant. This has resulted in less steam being condensed when it is not required and in significant reductions in the need for supplementary firing. The incidence of steam being dump-condensed while also supplementary firing the Combined Heat & Power (CHP) plant has been reduced by 95% and the overall use of supplementary firing is less than 30% of what it was. In addition the plant runs more smoothly and requires less operator time. The yearly benefit provided by the control system is greater than £200,000, measured in terms of 2005 gas prices.

Prices need no preferences: social trends determine decisions in experimental markets for pain relief.

OBJECTIVE: A standard view in health economics is that, although there is no market that determines the "prices" for health states, people can nonetheless associate health states with monetary values (or other scales, such as quality adjusted life year [QALYs] and disability adjusted life year [DALYs]). Such valuations can be used to shape health policy, and a major research challenge is to elicit such values from people; creating experimental "markets" for health states is a theoretically attractive way to address this. We explore the possibility that this framework may be fundamentally flawed-because there may not be any stable values to be revealed. Instead, perhaps people construct ad hoc values, influenced by contextual factors, such as the observed decisions of others. METHOD: The participants bid to buy relief from equally painful electrical shocks to the leg and arm in an experimental health market based on an interactive second-price auction. Thirty subjects were randomly assigned to two experimental conditions where the bids by "others" were manipulated to follow increasing or decreasing price trends for one, but not the other, pain. After the auction, a preference test asked the participants to choose which pain they prefer to experience for a longer duration. RESULTS: Players remained indifferent between the two pain-types throughout the auction. However, their bids were differentially attracted toward what others bid for each pain, with overbidding during decreasing prices and underbidding during increasing prices. CONCLUSION: Health preferences are dissociated from market prices, which are strongly referenced to others' choices. This suggests that the price of health care in a free-market has the capacity to become critically detached from people's underlying preferences.