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Lecture-2

Process Economics

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VIVEK BHADANI
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2 views

Lecture-2

Process Economics

Uploaded by

VIVEK BHADANI
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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IIT Delhi

Introduction to process flowsheets, Equipment symbols


and sections of Chemical plants

Prof. Abhijeet Raj


[email protected]
Dept. of Chemical Engineering, Block III-
3B-14
Indian Institute of Technology Delhi
Hauz Khas, Delhi
110016 1
Source Books
1. Plant Design and Economics for Chemical Engineers 5th Edition
Peters, Timmerhaus, and West
2. Product and Process Design Principles 2nd Edition
Seider, Seader, and Lewin

2
Chemical Process Plant

3
Aspects of Industrial Chemical
Processes
 Products  Separation and purification
 Types of process processes
 Flowsheets
 Process instrumentation
and process control
 Mass balances
 Materials handling
 Energy balances
 Process economics
 Heat transfer and heat
exchangers
 Safety and environmental
issues
 Reactor design and
operation
 Quality etc.
4
Products Type
Bulk Chemicals: are characterised by a combination of two
parameters – large volume production, which is supported by
market demand, and lower unit costs, where the principle of
economy
Fine of scale
Chemicals: is produced
are n i c
important.on a relatively smaller scale in more

g a
r
versatile (less dedicated generally) production units using batch
o
In
operations. Product specifications may be more exacting and unit
cost is relatively higher. Fine chemicals may be used as
c &
ingredients in formulations or as intermediates in the production
n i
of more complex chemicals e.g. bulk pharmaceuticals.
g a
Speciality Chemicals: are chemically formulated products
Or
manufactured from basic chemicals which are used by industry
and domestic consumers for specific purposes. For example:
coatings, adhesives, pharmaceutical products, pesticides, 5

cosmetics, disinfectants etc.


Process Design Development
Chapter 1: Peters, Timmerhaus, West, Plant Design and Economics

3.
5.
1.

2. 4.

6
Process Design Development
1.Recognize a societal or engineering need.
a.Make a market analysis if a new product will result.

2.Create one or more potential solutions to meet this need.


a.Make a literature survey and patent search.
b.Identify the preliminary data required.

3.Undertake preliminary process synthesis of these solutions.


a.Determine reactions, separations , and possible operating
conditions.
b.Recognize environmental, safety, and health concerns.
7

4.Assess profitability of preliminary process or processes (if


Process Design Development

5. Refine required design data.


a.Establish property data with appropriate software.
b.Verify experimentally, if necessary, key unknowns in the
process.

6.Prepare detailed engineering design.


a.Develop base case (if economic comparison is required).
b.Prepare process flowsheet.
c.Integrate and optimize process.
d.Check process controllability.
e.Size equipment.
f. Estimate capital cost. 8
Process Design Development
7.Reassess the economic viability of process (if negative, either
modify process or investigate other process alternatives.

8.Review the process again for environmental, safety, and health


effects.

9.Provide a written process design report. (Capitalized Vs


Expensed Engg.)

10.Complete the final engineering design.


i. Determine equipment layout and specifications.
ii. Develop piping and instrumentation diagrams. 9

iii.Prepare bids for equipment or the process plant.


Process Design Development

11.Procure equipment (if work is done in house).

12.Provide assistance (if required ) in the construction phase.

13.Assist with start-up and shakedown runs.

14.Initiate Production.

10
Flowsheet Development
Multiple solution ( Different feed /intermediate)

Different Processes and different operating conditions

Preliminary Design
( Reaction, Separation, Temperature change and pressure
change operations, Selecting Process equipment in a task
integration step)

Viable alternatives (Favorable gross profit)

Base-case Design ( for each alternative)


(steady state energy balance, mass balance) 11

+
Computer-Aided Design
- Rapid calculations, Large storage and logical decisions

- Assessment of variable parameters

- Problem solving to conceiving, examining and implementing


alternative solutions

- Generating database (Regression, empirical curve fitting from


pilot data)

- Spreadsheet software (Sizing, cost estimate, economic


analysis) 12
Profitability Analysis of
Investments
Burden : Interests, Taxes, Depreciation, Reduced fluidity ,
Insurance

Executive: Maximize long-term benefit to owner or stakeholders

Unknown Risk – Increase minimum acceptable Rate


of return

Time Value of Money


13
Optimum Design
Optimum Economic Design: Given two or more
methods
Preferable involving least total cost
Example: Determining Pipe Diameter for Fluid
flow
Formaldehyde: Dehydrogenation of Methanol,
Controlled natural gas oxidation, Direct reaction
between CO and H2

Criteria: Max profit/ unit or min cost/unit (Quality


Critical)
14

Optimum Operations Design: Optimum


Engineering Ethics In Design
Profession with highest level of ethical
behaviour
Codes of ethics:

American Institute of Chemical Engineers

National Society of Professional Engineers

15
Engineering Ethics In Design
Engineers' Creed

Professional Engineers dedicate professional knowledge and skill to the


advancement and betterment of human welfare and pledges to:

• To give the utmost of performance;


• To participate in honest enterprise;
• To live and work according to the laws and the highest standards of
professional conduct;
• To place service before profit, the honor and standing of the
profession before personal advantage, and the public welfare above
all other considerations.

16

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