METHODS, TOOLS, AND SOFTWARE
Industrial Waste Reuse and By-product
Synergy Optimization
Martin Maill´ e and Jean-Marc Frayret
Summary
By-product synergy is a growing practice worldwide. It consists in the maximization of
resources utilization with the replacement of raw materials by by-products as inputs for
industrial processes. In order to support decision making in such strategic projects, ap-
propriate tools must be developed. This article presents the results of a research project,
which includes the development of a multiobjective mathematical programming model
for the optimization of by-product flows, synergy configurations, and investment decisions
in eco-industrial networks. This model is evaluated using data related to the Kalundborg
industrial symbiosis (IS) in order to illustrate its utilization, as well as to assess, in a retro-
spective manner, the behavior of the companies involved with respect to both economic
and environmental benefits of synergies. The experiments also illustrate the influence of
the municipality on synergy implementation and how a scenario-based approach can be
used to anticipate raw material price increase. The results are generally coherent with the
actual timing of synergy initializations. Further, the considerable effect of water price on
the length of investments’ payback period illustrates the impact of policies and regulations
on IS.
Keywords:
by-product synergy
eco-industrial park (EIP)
industrial ecology
industrial symbiosis (IS)
Kalundborg, Denmark
multiobjective decision making
Supporting information is available
on the JIE Web site
Introduction
Industrial symbiosis (IS) is a key concept of industrial ecol-
ogy (IE) that aims to promote exchanges of by-product in the
form of effluents, energy, and solid waste. ISs are by-product syn-
ergy networks, which consist in business relationships between
companies, in order to optimize resources utilization through in-
dustrial waste utilization and resource sharing. Such networks
can occur in a self-organized manner, although independent
network facilitators can also play a critical role in the success of
ISs (Kincaid and Overcash 2001).
This article presents a multiperiod, multiobjective mathe-
matical programming model, which can be used in different
contexts. First, it aims to support the development of IS by
identifying optimal industrial by-product and waste reuse in a
network of potential partnerships. In particular, the proposed
Address correspondence to: Jean-Marc Frayret,
´
Ecole Polytechnique de Montr´ eal, C.P. 6079, succ. Centre-ville, Montr´ eal, Qu´ ebec, Canada H3C 3A7. Email: jean-
marc.frayret@polymtl.ca
© 2016 by Yale University
DOI: 10.1111/jiec.12403 Editor managing review: Olli Salmi
Volume 00, Number 0
model takes into account synergy configuration, inventory lo-
cation, as well as waste transformation and treatment technol-
ogy. Consequently, it can be used either by a network facilita-
tor to develop an efficient IS or by a single company to plan
the strategic development and configuration of its symbiotic
relationships.
Next, because it is multiperiod, it can also take into account
any trends of parameters (e.g., resource price increase) and
analyze their impacts on synergy configuration. Similarly, its
multiobjective version can also be used to analyze the trade-off
between environmental and economic benefits of by-product
synergies. Indeed, studies have shown that even if the first
motivation behind eco-industrial projects seems to be the
preservation of natural resources and the improvement of
waste management strategies, economic feasibility is essential
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