Stochastic MIP Modeling of a Natural Gas-Powered Industrial Park

We present an investment-decision tool for a natural-gas powered industrial park. The model maximizes the net present value in the industrial park by determining what type of plants to include in the park and what connections to build between them. A stochastic mixed-integer programming model was employed to handle uncertainty of future prices and costs of raw materials and finished products. The model is motivated by the Norwegian government's ambition to increase national consumption of natural gas, in particular for industrial use. A small case study was also included, focusing on model sizes and solution times.