Coal Quality Market Model (CQMM)™

US Coal

As the coal industry grows more complex, and as fuel supply industries converge, the need for complex modeling tools has grown. Successfully modeling the coal industry now requires the capability to integrate complicated problems into the modeling solution. Sophisticated analytical tools are required. Such a model must be capable of computing economically efficient coal sourcing and routing patterns from coal sources to coal-fired power plants while satisfying a variety of economic, engineering, legal, and environmental constraints. Such a model should allow for the construction of a variety of scenarios making it a powerful “what-if” tool. This model is called CQMM.

CQMM consists of a powerful and flexible user interface which employs Microsoft’s Access Relational Database Management System, an Access database, and a world class optimizer used to compute feasible, ”market clearing” solutions. A market clearing solution is one in which, while adhering to known contractual constraints, prices in spot markets determine the amount of coal produced in each region of the country. Mathematically, the model consists of a set of decision variables, representing the amounts of each type of coal in each coal- producing region that will be produced and delivered to each power plant and boiler in the model. These decision variables must satisfy a set of equations and inequalities that represent various economic, physical, contractual, engineering, and environmental constraints imposed on coal production, transportation, and coal consumption.

For more information about the Coal Model and other products, please contact the CQMM accounts Rep. at (818) 784-5400.