Profit-Driven Framework for Low-Carbon Manufacturing: Integrating Green Certificates, Demand Response, Distributed Generation and CCUS

Abstract

In recent years, the manufacturing industry and power sector have collectively accounted for nearly 60% of global carbon emissions, presenting a formidable obstacle to achieving net-zero targets by 2050. To address the urgent need for industrial decarbonization, this paper proposes a profit-driven framework for low-carbon manufacturing that synergistically integrates green certificates, demand response, distributed generation, and carbon capture, utilization, and storage (CCUS) technologies. A comprehensive optimization model is formulated to enable manufacturers to maximize profits through strategic participation in electricity, carbon, green certificate, and industrial manufacturing product markets simultaneously. By solving this optimization problem, manufacturers can derive optimal production decisions. The framework’s effectiveness is demonstrated through a case study on lithium-ion battery manufacturing, which reveals promising outcomes: meaningful profit growth, substantial carbon emission reductions, and only minimal impacts on production output. Furthermore, the proposed demand response strategy achieves significant reductions in electricity consumption during peak hours, while the integration of distributed generation systems markedly decreases reliance on the main grid. The incorporation of CCUS extends the clean operation periods of thermal power units, generating additional revenue from carbon trading and CO2 utilization. In summary, the proposed model represents the first unified profit-maximizing optimization framework for low-carbon manufacturing industries, shifting from traditional cost minimization to profitability optimization, addressing gaps in fragmented low-carbon strategies, and providing a replicable blueprint for carbon-neutral operations while enhancing profitability.