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Problem-7.1: C $ 278 MM On A January 2006 USGC Basis

1) The capital cost of a 80,000 Mtpy caprolactam plant is estimated to be $278 million using a cost curve method. 2) The capital cost of a 20,000 metric ton per year aniline plant with 6 stages is estimated to be $44.5 million using a step counting method. 3) A reactor that cost $365,000 in June 1998 is estimated to cost $410,625 in January 2012 after accounting for changes in the CE cost index.

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94 views

Problem-7.1: C $ 278 MM On A January 2006 USGC Basis

1) The capital cost of a 80,000 Mtpy caprolactam plant is estimated to be $278 million using a cost curve method. 2) The capital cost of a 20,000 metric ton per year aniline plant with 6 stages is estimated to be $44.5 million using a step counting method. 3) A reactor that cost $365,000 in June 1998 is estimated to cost $410,625 in January 2012 after accounting for changes in the CE cost index.

Uploaded by

Misum Ali
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 7

Problem-7.1
 Capacity of plant =80,000 Mtpy
 Chemical produced= caprolactam
 Estimate the capital cost of plant =?
By using cost curve method , C = aSn (eq.1)
From table #7.1, get the values of constants (a, n) for caprolactam plant, but first convert Mtpy
into tpy, for this;
1Mtpy=1.102tpy
Capacity of plant = 80,000/1.102 =72595tpy
Then check the range of capacity, range in table 7.1 is (40,000-120,000). Our capacity lies within
the range. Values of a and n are;
a = 0.321 ; n =0.6
Put values in eq. 1;
C= (0.321)(72,595)0.6
C= $ 278 MM on a January 2006 USGC basis

Problem -7.2
 Q= 20,000 metric ton per yr.
 No. of stages N= 6
Aniline is not listed in Table 7.1, so use the step counting methods given in Section 7.4.2
Q<60,000 so we use following equation

Here,
C = ISBL capital cost in U.S. dollars, U.S. Gulf Coast, Jan. 2010 basis (CEPCI = 532.9)
Q = plant capacity in metric tons per year
s = reactor conversion (= mass of desired product per mass fed to the reactor)
N = number of functional units
From appendix F.8 , conversion is around 98%
s = 0.98
Put values in formula;
C= 380,000 (6)(20,000/1)0.3
C= $ 44.5 MM on Jan 2010 USGC basis.

Problem-7.3
 Reactor cost in June 1998= $ 365,000
 Reactor cost in January 2012 =?
Cost escalation or forecasting

We have a reactor for cost escalation which lies in category of CE.


Looking at Figure 7.2, we can see that forecasting out to 2012 is going to be difficult, as the
index decreased in 2009 following a period of rapid price inflation in the second half of the
2000’s. By the end of 2011 the index had roughly returned to the level of 2008, so as an
initial estimate we can assume the index will be about 570 (see graph ).

Cost in January 2012 = Cost in January 1998 × (index for 2012/index for 1998)
= 365,000(450/400)
Cost in January 2012=$410,625

Problem-7.4
 Cost of a distillation column in early 1998 = $225,000
 Cost in January in 2014 = ?
By using Nelson Farrer index

Index in 1998= 1498


Index in 2014= 250
So, estimated cost in janurary = $225,000 x 2500/1498
= $375,500

Problem-7.5
(a)
 Shell and tube heat exchanger
 Heat transfer area= 50m2
 Floating head type
 Shell= carbon steel
 Tubes= stainless steel
 Operating pressure= 25 bar
 Cost of equipment= ?
By using cost curve method for purchased equipment cost,
Ce = a + b S n
From table 7.2, we checked that our area (S) lies with in range so values of constants are;
a = 32000; b=70; n=1.2
Putting values in formula,
Ce = 32000 + (70) (50)1.2
Ce = $39,650
Multiply this with correction factor for stainless steel tubes used, for this we pick our value from
table 7.6
Correction factor for stainless steel relative to carbon steel= 1.3
So,
Ce = $39,650 * 1.3
Ce = $51,500 on January 2010 USGC basis

(b)
 A kettle reboiler.
 Heat transfer area= 25m2
 Shell and tubes= carbon steel
 Operating pressure= 10 bar
 Cost of equipment= ?
By using cost curve method for purchased equipment cost,
Ce = a + b S n
From table 7.2, we checked that our area (S) lies with in range so values of constants are;
a = 29000; b=400; n=0.9
Putting values in formula,
Ce = 29000 + (400)(25)0.9
Ce = $36,250 on January 2010 USGC basis

(c)
 A horizontal, cylindrical storage tank
 Diameter= 3 m
 length= 12 m
 used for liquid chlorine
 operating pressure= 10 bar
 material= carbon steel
 cost of equipment= ?
By using cost curve method for purchased equipment cost,
Ce = a + b S n
From table 7.2, values of constants are;
a = 10,200; b=31; n=0.85
First we calculate shell thickness in order to find shell mass(S).
As operating pressure is 10 bar so designed pressure should be more than 10%
So, operating pressure= 11 bar= 1.1*106 N/m2
Maximum allowable stress at 500F = 89 N/mm2
Weld efficiency= 1.0
So,
tw = [(1.1*106) * 3]/ [(2*89*106 * 1) - (1.2* 1.1*106)] = 0.0187 m or 20 mm
density of carbon steel = 7900 kg/m3
shell mass= (pi) * (DC) * (LC) * (tw) * (density) = 16,707 kg
now cost of equipment is,
Ce = 10,200 + (31) (16,707)0.85
Ce = $130,655 on January 2010 USGC basis

(d)
 A plate column
 Diameter= 2 m
 Height= 25 m
 Stainless clad vessel
 Stainless steel sieve plates
 Operating pressure= 5 bar
By using cost curve method for purchased equipment cost,
Ce = a + b S n
From table 7.2, values of constants are;
a = 11,600; b=34; n=0.85
First we calculate shell thickness in order to find shell mass(S).
As operating pressure is 5 bar so designed pressure should be more than operating pressure, say
2 % above.
So, operating pressure= 7 bar= 7.1*105 N/m2
Maximum allowable stress at 500F = 89 N/mm2
Weld efficiency= 0.85
So,
tw = [(7.1*105) * 2]/ [(2*89*106 * 0.85) - (1.2* 7.1*105)] = 0.0094 m
wall thickness is very small, so we round it up to 12.7 mm
density of carbon steel = 7900 kg/m3
shell mass= (pi) * (DC) * (LC) * (tw) * (density) = 15,760 kg
now cost of equipment is,
Ce = 11,600 + (34) (15,760)0.85
Ce = $137,319
Stainless steel cost factor= 1.3 * carbon steel
Clad vessel must cost less than stainless steel and 10% more than carbon steel. So we multiply it
by 1.1 to get cost in the given material,
Ce = $137,319 * 1.1
Ce = $151,061
Now for sieve trays,
Ce = a + b S n
From table 7.2, values of constants are;
a = 130; b=440; n=1.8,
Ce = 130 + (440) (2)1.8
Ce = $1662
No. of trays=20
Material factor for stainless steel= 1.3
So,
Ce = $1662*20*1.3
Ce = $43,216
Total cost = cost for plate column + cost for sieve
Ce = $151,051 + $43,216
Ce = $194,267 on January 2010 USGC basis

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