BAHIRDAR

INSTITUTE OF
TECHNOLOGY
FACULTY OF
CHEMICAL AND
FOOD ENGINEERING

PLANT DESIGN AND

ECONOMICS
Lecture
By Ali Seid.
1

The Need For Professionalism And Ethics

The graduating engineer will only become a 'good' designer if they:
a) Can apply the basic knowledge of chemical engineering;
engineering
b) understand the broad constraints placed on chemical plant design, e.g. economics; environmental, social, etc.;
c) are widely read, think about the ideas encountered, and use the knowledge and ideas in a design study.
In terms of personal qualities, a good design project student must be:
a) Enthusiastic;
b) Positive;
c) Realistic;
d) Self motivated;
e) A problem-solver;
f) An accurate, careful and logical worker.

The Need For Specifications

Specifications are required in every aspects of the design to keep qualities and to avoid dissatisfactions. E.g. specifications
of product.
For instance, before a manufacturer is contacted, the engineer should prepare a preliminary specification sheet for the
equipment, which will be used as a basis for preparation of the final specification.
Preliminary specification of equipment should show:

Identification

Function

Operation

Materials handled

Basic design data

Essentials controls

Insulation requirements

Allowable tolerances

Materials of constructions
3

Plant design
The general term plant design includes all engineering aspects involved in the development
of either a
new
modified, or
expanded industrial plant.
In this development, the chemical engineer will be making economic evaluations of new
processes, designing individual pieces of equipment, or developing a plant layout.

What is Design?
Design is a creative activity, and as such can be one of the most rewarding and satisfying
activities undertaken by an engineer.
It is the synthesis, the putting together, of ideas to achieve a desired purpose.
The design does not exist at the commencement of the project.
The designer starts with a specific objective in mind, a need, and by developing and
evaluating possible designs, arrives at what he considers the best way of achieving that
objective; be it a better chair, a new bridge, or for the chemical engineer, a new chemical
product or a stage in the design of a production process.

Nature Of Design
All design starts with a perceived need. In the design of a chemical process, the need is the
public need for the product, creating a commercial opportunity, as foreseen by the sales and
marketing organization.
Within this overall objective, the designer will recognize sub-objectives, the requirements of
the various units that make up the overall process.
process
Before starting work, the designer should obtain as complete, and as unambiguous, a
statement of the requirements as possible.
If the requirement (need) arises from outside the design group, from a customer or from
another department, then the designer will have to elucidate the real requirements through
discussion.
6

The design process

In the design of a chemical process, the need is the public need for the

Objective(design specification)

product, the commercial opportunity, as foreseen by the sales and marketing

organization
organization.

Collection of data, physical

properties, design method
Generation of possible designs

The
The creative part of the design process
The
The designer will largely rely on previous experience

Selection and
evaluation(optimization)

The designer starts with the set of all possible solutions bounded by the
external constraints, and by A process of progressive evaluation and
selection, narrows down the Range of candidates to find the best design for

Final design

the purpose

Final design
7

The design objective(the need)

In the design of a chemical process, the need is the public need for the product, the commercial
opportunity, as foreseen by the sales and marketing organization.
Within this overall objective the designer will recognize sub-objectives; the requirements of the
various units that make up the overall process.
Before starting work the designer should obtain as complete, and as unambiguous, a statement of
the requirements as possible.
Arises from design group or client
It is important to distinguish between the real needs and the wants.
The wants are those parts of the initial specification that may be thought desirable, but which can be
relaxed if required as the design develops.

Design information and Data collection

To proceed with a design, the designer must first assemble all the relevant facts and data required.
For process design this will include information on possible processes, equipment performance, and
physical property data.
This stage can be one of the most time consuming, and frustrating, aspects of design.
Sources of process information and physical properties are
Design manuals
National standards
www
Hand books
Literature
Chemical engineering handbooks
9

Generation of possible design solutions

The creative part of the design process is the generation of possible solutions to problem(ways of
meeting the objective) for analysis, evaluation and selection. In this activity the designer will
largely rely on previous experience, his own and that of others.
Chemical engineering projects can be divided into three types, depending on the novelty involved:
1. modifications, and additions, to existing plant:: usually carried out by the plant design group.
2. New production capacity to meet growing sales demand, and the sale of established processes by
contractors. Repetition of existing designs, with only minor design changes.
3. New processes, developed from laboratory research, through pilot plant, to a commercial
process. Even here, most of the unit operations and process equipment will use established
designs.
10

Selection
The designer starts with the set of all possible solutions bounded by the external
constraints, and by a process
Of progressive evaluation and selection, narrows down the range of candidates to
find the best design for the purpose.
The selection process can be considered to go through the following stages:
Possible designs(credible)- within the external constraints.
Plausible designs(feasible)-within
within the internal constraints.
Probable designs- likely candidates
Best design(optimum)- judged the best solution to the problem
11

Design constraints

12

Cont.
When considering possible ways to achieve the objective constrained by several factors
that will down the number of possible designs.
designs
Some constraints will be fixed, invariable that arise from physical laws, government
regulations, and standards.
External constraints- arise outside the designers influence
Economics and time are main constraints

13

The Anatomy Of A Chemical Manufacturing Process

The basic components of a typical chemical process are shown in Figure below in which each block
represents a stage in the overall process for producing a product from the raw materials.
Chemical engineering design is concerned with the selection and arrangement of the stages and the selection,
specification, and design of the equipment required to perform the function of each stage.

14

Descriptions
Stage 1. Raw material storage: The storage required depends on the nature of the raw materials, the method of
delivery, and what assurance can be placed on the continuity of supply.
Stage 2. Feed preparation: Some purification and preparation of the raw materials will usually be necessary
before they are sufficiently pure, or in the right form, to be fed to the reactor.
Stage 3. Reaction: The reaction stage is the heart of a chemical manufacturing process.
Stage 4. Product separation: After the reactor(s) the products and byproducts are separated from any
unreacted material.
Stage 5. Purification: Before sale, the main product will often need purification to meet the product
specifications.
Stage 6. Product storage: Some inventory of finished product must be held to match production with sales.
Liquids are normally dispatched in drums and in bulk tankers (road, rail, and sea); solids in sacks, cartons, or
bales
15

Types Of Designs
The methods for carrying out a design project may be divided into the following
classifications, depending on the accuracy and detail required:
1. Preliminary or quick-estimate designs
2. Detailed-estimate designs
3. Firm process designs or detailed designs

1. PRELIMINARY DESIGNS
Are ordinarily used as a basis for determining whether further work should be done on
the proposed process.
The design is based on approximate process methods, and rough cost estimates are
prepared.
Few details are included, and the time spent on calculations is kept at a minimum.
16

Things To Be Included In Preliminary Design

Manufacturing process
Material and energy balances
Temperature and pressure ranges
Raw-material and product specifications
Yields, reaction rates, and time cycles
Materials of construction
Utilities requirements
Plant site
17

2. DETAILED-ESTIMATE
ESTIMATE DESIGN
If the results of the preliminary design show that further work is justified, the detail estimate
design will be implemented.
Profit potential of an established process is determined by detailed analyses and calculations.
However, exact specifications are not given for the equipment, and drafting-room work is
minimized.

Things to be included
When the preceding information is included in the design, the result permits accurate
estimation of required capital investment, manufacturing costs, and potential profits.
Consideration should be given to the types of buildings, heating, ventilating, lighting, power,
drainage, waste disposal, safety facilities, instrumentation, etc.
18

3. FIRM PROCESS DESIGN

When the detailed-estimate design indicates that the proposed project should be a
commercial success, the final step before developing construction plans for the
plant is the preparation of a firm process design.
design
Complete specifications are presented for all components of the plant, and accurate
costs based on components of the plant, and accurate costs based on
quoted prices are obtained.
The firm process design includes blueprints and sufficient information to permit
immediate development of the final plans for constructing the plant.
19

Initial Consideration & Specification

The considerations in a design project are many and varied.
The solution that is finally accepted is (usually) the 'better solution (often
based upon economic considerations) from several alternatives.
The important feature of a design study is that decisions must be made at
every stage, and compromises are frequently required.
It is also necessary to reconsider various decisions in the later stages of a
project, and to re-work solutions and re-evaluate
re
proposals.
20

A. The Feasibility Study

The feasibility study for a design project involves mainly the technical and economic
evaluation of the process in order to determine whether the detailed design (and subsequent
construction) stages should be undertaken.
It should be considered before the expensive detailed design stage commences.
The first task in any project is to consider the options and alternatives and to gradually
eliminate those which are not alternatives and to gradually eliminate those which are not
feasible or not required, and then evolve a plan and hence a project definition.
Students often complain initially that they do not know what is required or what is possible,
the answer in both cases is everything! Consider all possibilities, and even options that don't
seem possible! Decide when decisions will need to be made, and at that time eliminate the
least attractive options and eventually arrive at a feasible project.
21

Cont.
Before any detailed work is done on the design, the technical and economic
factors of the proposed process should be examined. The various reactions and
physical processes involved must be considered, along with the existing and
potential market conditions for the particular product. A preliminary survey of
this type gives an indication of the probable success of the project and also
shows what additional information is necessary to make a complete evaluation.
Following is a list of items that should be considered in making a feasibility
survey:
22

Cont.
1.

Raw materials (availability, quantity, quality, cost)

2.

Thermodynamics and kinetics of chemical reactions

9.

Markets (present and future supply and demand, present uses, new
uses,

present buying habits, price range for products and by-

products, character, location, and number of possible customers)

involved equilibrium, yields, rates, optimum conditions)

10.

3.

Facilities and equipment available at present

4.

Facilities and equipment which must be purchased

5.

Estimation of production costs and total investment

6.

Profits (probable and optimum, per pound of product and

manufacturing processes, product specifications of competitors)

11.

8.

Properties of products (chemical and physical properties,

specifications, impurities, effects of storage)

12.

Sales and sales service (method of selling and distributing,

advertising required, technical services required)

per year, return on investment)

7.

Competition (overall production statistics, comparison of various

13.

Shipping restrictions and containers

14.

Plant location

15.

Patent situation and legal restrictions

Materials of construction
Safety considerations

23

B. Time Management
An essential ingredient of all successful projects is realistic time management.
Once a project is defined it is necessary to identify the associated tasks, the required deadlines,
and the resources available.
It is necessary to look to the end of a project at the beginning of the work, rather than focusing on
the day-by-day or week-by week tasks.
An overall view is required in the early stages of a project proposal, and the essential/key tasks,
decisions and bottlenecks need to be identified.
Appropriate actions and planning can then be incorporated in the time-plan for the project.
It is also necessary to be flexible and to modify the timing of the project stages as the work
proceeds.
24

C. The Search for Information

The first step in a design project is to try and identify all the relevant information that is
available.
The second step is to identify the information required, decided after initial consideration
of the problem.
The aim should be for quality rather than quantity of information, a few useful/relevant
references rather than hundreds of general references.
references hundreds of general references.
Two possibilities exist:
(a) Not enough information is available - a search is required
(b) Too much information is available - the task is to assess the reliability of conflicting
information.
25

D. Scope Of The Project

The following information are required for the design of a process for the production of a particular chemical:
a) Production rate (plant throughput);
b) Purity of final product;
c) Raw materials to be used/available;
d) Utilities available;
e) Site location;
f) Expected markets;
g) The process route.
Some or all of this information may be expected to be obtained by the student as part of the design project.
Industrial process designs are usually (although not always) more clearly defined -'this is what we want, this is
what we know, now decide how to achieve it.
26

Process design development

A principle responsibility of the chemical engineer is
the design,

construction and

of chemical plants.

Operation
Evaluating the Alternatives - Making Decisions
Probably by the end of the first (or second) week of a project a wide range of options and alternatives will have been
considered & decisions has to be made based on the questions below:
27

Process Design Development (cont.)

Some questions to ask for the chemical to be produced
How it is made?
Uses
Current sales/production--expanding or declining?
Main product or by-product?
by
Political influences?
Special site location requirements
Alternative processes new applications
Raw materials
Environmental problems?\utilities
problems?
Storage/handling, etc.

28

Cont.
Once you decide on the chemical to be produced then the selection of a process route for production of a
chemical will depend upon the following factors/considerations:
factors/considerations
a.

Will the process produce what the customer requires?

b.

Is it possible to design, build and operate this plant economically

c.

The necessary design data, technology, fabrication methods and materials, raw materials, etc., must be
available.

d.

The plant must operate in a safe manner, providing an acceptable hazard risk to the plant employees and the
public.

e.

The plant must conform to any environmental protection requirements.

f.

The plant must be as energy efficient (and energy self-sufficient)

self
as possible.

g.

Maintenance requirements should be minimized.

29

Cont.
h. The plant should be designed to operate adequately under conditions of reduced throughput (say
by 50%), and for increased production (say 25%).
i.

The production of any unusable by-products

products should be minimized.

j.

All necessary utilities should be available, e.g. electricity, cooling water, etc. The utilities
specifications must be established, these are dependent upon whether a grass-roots plant is to be
built or the plant situated in an existing chemical complex. These specifications plant situated in
an existing chemical complex. These specifications include the steam-pressure levels, cooling
water and/or refrigerants available, etc. The unit costs must also be determined.

k. Etc.
30

Process Description and Equipment List

After the process route has been selected, it is both possible and necessary to prepare an equipment list or equipment
schedule.
The information below must be included in the equipment list:
list
a) Specific type of equipment.
b) Size and/or capacity.
c) Material of construction.
d) Operating pressure.
e) Maximum operating temperature (if above ambient), or minimum temperature if refrigerated.
f) Insulation required.
g) Corrosion allowances (if large).
h) Special features, e.g. jackets on heat exchangers.
i)Duplication of plant items (for safety and/or reliability).

31

optimization
Design is optimization: the designer seeks the best, the optimum, solution to a problem.
Much of the selection and choice in the design process will depend on the intuitive
judgement of the designer; who must decide when more formal optimization techniques can
be used to advantage.
The task of formally optimizing the design of a complex processing plant involving several
hundred variables, with complex interactions, is formidable, if not impossible.
The task can be reduced by dividing the process into more manageable units, identifying the
key variables and concentrating work where the effort involved will give the greatest
benefit.
32

General procedure
When setting out to optimize any system, the first step is clearly to identify
the objective: the criterion to be used to judge the system performance. In
engineering design the objective will invariably be an economic one. For a
chemical process, the overall objective for the operating company will be to
maximize profits. This will give rise to sub-objectives, which the designer
will work to achieve. The main sub--objective will usually be to minimize
operating costs. Other sub-objectives may be to reduce investment, maximize
yield, reduce labor requirements, reduce maintenance, operate safely
33

Cont.
The second step is to determine the objective function; the system of equations, and other
relationships, which relate the objective with the variables to be manipulated to optimize the
function. If the objective is economic, it will be necessary to express the objective function in
economic terms (costs).
The third step is to find the values of the variables that give the optimum value of the objective
function (maximum or minimum). The best techniques to be used for this step will depend on the
complexity of the system and on the particular mathematical model used to represent the system.
A mathematical model represents the design as a set of equations (relationships) and it will only be
possible to optimize the design if the number of variables exceeds the number of relationships; there
is some degree of freedom in the system.
34

Cont..
Simple models
If the objective function can be expressed as a function of one variable (single degree of freedom) the function can be differentiated, or
plotted, to find the maximum or minimum.

Example

The optimum proportions for a cylindrical container.

Multiple variable problems

Analytical methods
If the objective function can be expressed as a mathematical function the classical methods of calculus can be used to find the maximum
or minimum.
Setting the partial derivatives to zero will produce a set of simultaneous equations that can be solved to find the optimum Values

Search methods
35

Cont.
Linear programming

Linear programming is an optimization technique that can be used when the

objective function and constraints can be expressed as a linear function of the
variables;
Dynamic programming

Dynamic programming is a technique developed for the optimization of large

systems;

36

Process Flow Diagrams

This shows the sequence of equipment & unit operations in the overall process to simplify visualization of the manufacturing procedures & to
indicate the quantities of materials & energy transfer.
These diagrams may be divided into three general types:

Qualitative:
indicates the flow of materials, unit operations involved, equipment necessary & special information on operating temperature & pressure.

Quantitative:
shows the quantities of material required for operation.

Combined detail:
qualitative information & quantitative data are combined on the basis of one flow diagram.
Contains detail information on the flow quantities and equipment specifications.
specifications
Contain the location of temp., pressure regulators & indicators as well as the location of critical control valves & special instruments.

37

Qualitative flow diagram

38

Quantitative flow diagram

39

Combined flow diagram

40

Flow Sheet Presentation

As the process flow sheet is the definitive document on the process, the presentation must be clear,
comprehensive, accurate & complete.
Block diagram:
Simplest form of presentation.
Each block can represent a single piece of equipment or a complete stage in the process.
Block diagrams are useful for representing a process in a simplified form in reports and textbooks,
but have only a limited use as engineering documents.
documents
The stream flow-rates and compositions can be shown on the diagram adjacent to the stream lines,
when only a small amount of information is to be shown, or tabulated separately.
The blocks can be of any shape, but it is usually convenient to use a mixture of squares and circles,
drawn with a template.
41

Pictorial Diagram
On the detailed flow-sheets used for design and operation, the equipment is normally drawn in a
stylized pictorial form.
The symbols given in British Standard, BS 1553 (1977) "Graphical Symbols for General
Engineering" Part 1, "Piping Systems and Plant are recommended; though most design offices use
their own standard symbols.
A selection of symbols from BS 1553 is given in Appendix A of the book Coulson and Richardson,
V6.
The American National Standards Institute (ANSI) has also published a set of symbols for use on
flow-sheets.
In Europe, the German standards organization has published a set of guide rules and symbols for
flow-sheet presentation, DIN 28004 (1988).
42

43

44

Presentation Of Stream Flow-rates

The data on the flow-rate
rate of each individual component, on the total stream flow-rate, and
the percentage composition, can be shown on the flow-sheet
flow
in various ways.
A. Tabulate the data in blocks alongside the process stream lines:
The simplest method, suitable for simple processes with few equipment pieces, only a
limited amount of information can be shown in this way, and it is difficult to make neat
alterations or to add additional data.
B. In the other method each stream line is numbered and the data tabulated at the bottom of
the sheet.
Alterations and additions can be easily made.
This is the method generally used by professional design offices.
45

46

47

Information To Be Included
Essential information
Stream composition, either:
I. The flow-rate of each individual component, kg/h, which is preferred,
preferred or
II. the stream composition as a weight fraction.

Total stream flow-rate, kg/h.

Stream temperature, degrees Celsius preferred.
Nominal operating pressure (the required operating pressure).

Optional information
Molar percentages composition.
Physical property data, such as: density, kg/m3, viscosity, mN s/m2.
Stream name, a brief, one or two-word,
word, description of the nature of the stream, for example "ACETONE COLUMN BOTTOMS".
Stream enthalpy, kJ/h.

48

Piping And Instrumentation Diagram

The P&ID is the last stage of process design and serves as a guide by those who will
be responsible for the final design and construction.
construction
The Piping and Instrument diagram (P and I diagram) shows the engineering details
of the equipment, instruments, piping, valves and fittings; and their arrangement.
It is the pictorial representation of :
Key piping and instrument detail
Control and shutdown schemes
Safety and regulatory requirements
basic start up & operational information

49

Cont.
Its purpose is:
To have a common language for instrument technicians, process engineers
and suppliers.
To properly document plant designs for installation
To properly document plant designs for installation in graphical form.
To help in maintenance, failure analysis & troubleshooting.

50

Cont.
The P & ID should include:
1) All process equipment identified by an equipment number. The equipment should be drawn roughly in
proportion, and the location of nozzles shown.
2) All pipes, identified by a line number. The pipe size and material of construction should be shown.
3) All valves, control and block valves, with an identification number.
The type and size should be shown. The type may be shown by the symbol used for the valve or included in
the code used for the valve number.
4) Ancillary fittings that are part of the piping system, such as inline sight-glasses, strainers and steam traps;
with an identification number.
5) Pumps, identified by a suitable code number.
6) All control loops and instruments, with an identification number.
51

Guide lines for drawing preliminary P&ID

1)Have at hand the pictorial drawing of the process.
2) Identify & draw in those control loops that are obviously needed for steady plant operation, such as:
Level controls
Flow controls
Pressure controls
Temperature controls
3) Identify the key process variables that need to be controlled to achieve the specified product quality.
4) Identify and include the control loops required for safe operation.
5) Decide the additional ancillary instruments
6) Decide on the location of sample points
7) Decide on the need for recorders & their location (locally or control room).
room)
8) Decide on the alarms & interlocks needed.
52

Material balance
Material balances are the basis of process design. A material balance taken over the complete process will
determine the quantities of raw materials required and products produced.
Balances over individual process units set the process stream flows and compositions.
Chemical processes may be classified into as batch, continuous, or semi batch, or either steady state or
transient.
Batch process: the feed is charged (fed) into a vessel at the beginning of the process & the vessel content are
removed sometimes later.
Continuous process: the inputs and outputs flow continuously throughout the duration of the process.
Semi-batch process: any process that is neither batch nor continuous.

53

Cont.
If the values of all variables in the process do not change with time, Steady state process.
If any of the process variables change with time, transient or unsteady state.
A balance on a certain conserved quantity can be written as: Material out=Material in + Generation
- Consumption Accumulation
For a steady-state process the accumulation term will be zero.
If the balanced quantity is total mass (or if there is no reaction), set generation and accumulation = 0
If there is no chemical reaction the steady-state balance reduces to
Material in = Material out
A balance equation can be written for each separately identifiable species present, elements,
compounds or radicals; and for the total material.
54

Cont.
The standard procedures for material balances are:
1) Make any necessary assumptions (E.g. steady state, no rxn, etc.)
2) Draw a flowchart for the process & fill in all known variables and values. Label unknown stream variables on the chart. Include either:

Total mass & stream composition

Total mole & stream composition
The mass or molar flow rate of each stream components.
components

3) Choose as a basis of calculation an amount or flow rate of one of the process stream.
4) Express what the problem statement asks you to determine in terms of the labeled variables.
5) If you are given mixed mass and mole units for a stream, convert all quantities to one basis.
6) Do the degree of freedom analysis. Count the unknowns and identify equations
Ndf = unknown-independent equations

55

Cont.
1. If ndf=0, there are n independent equations in n unknowns and the problem can in
principle be solved.
2. if ndf>0, there are more unknowns than independent equations relating them and
at least ndf additional variable values must be specified before the remaining
variable values can be determined. Either relations have been overlooked or the
problem is underspecified and has infinitely many solutions; in either case, plunging
into calculations is likely to be a waste of time.
3. if ndf<0, there are more independent equations than unknowns. Either the
flowchart is incompletely labeled or the problem is over specified with redundant
and possibly inconsistent relations. Again there is little point wasting time trying to
solve it until the equations and unknowns are brought into balance.
56

Cont..
Sources of equations relating unknown process stream variables include the
following:
Material balances
Energy balances
Process specifications
Physical properties and laws
Physical constraints
Stoichiometric relations

7) If the number of unknowns equal the number of equations then start

solving the equation.
57

recycle
It is rare that a chemical reaction A B
B proceeds to completion in a reactor.
No mater how A is present in the feed or how long the reaction mixture
remains in the reactor, some A is normally found in the products.
Recycling diagram
Recycle stream

Unit 1

Unit 2

Unit 3

58

Cont.
1. recovery of catalyst. Many reactors use catalysts to increase the rate of reaction. Catalysts are usually expensive, and the processes
generally include provisions for recovering them from the product stream and recycling them to the recovered separately in special
facilities designed for this purpose.
2. dilution of a process stream. Suppose a slurry( a suspension of solids in a liquid) is fed to a filter. If the concentration of solids in the
slurry is too high, the slurry is difficult to handle and the filter will not operate properly. Rather than diluting the feed with fresh liquid,
a portion of the filtrate can be recycled to dilute the feed to the desired solids concentration
3. control of a process variable. Suppose a reaction releases an extremely large amount of heat, making the reactor difficult and
expensive to control. The rate of heat generation can be reduced be lowering the reactant concentration, which can in turn be
accomplished by recycling a portion of the reactor effluent to the inlet.
inlet In addition to acting as a diluent for the reactants, the recycled
material also serves as a capacitance for the heat released: the greater the mass of the reaction mixture, the lower the temperature to
which that mass will be raised by a fixed amount of heat.
4. Circulation of a working fluid. The most common example of this application is the refrigeration cycle used in household
refrigerators and air conditioners. In these devices, a single material is reused indefinitely, with only small makeup quantities being
added to the system replenish working fluid that may be lost through leaks.
59

purge
It is usually necessary to bleed off a portion of a recycle stream to prevent the
build-up of unwanted material.
For example, if a reactor feed contains inert components that are not separated
from the recycle stream in the separation units these inert would accumulate in
the recycle stream until the stream eventually consisted entirely of inert.
So the required purge rate can be determined from the following relationship:
[Feed stream flow-rate]
rate] x [Feed stream inert concentration] = [Purge stream
flow-rate]
rate] x [Specified (desired) recycle inert concentration]
60

Energy balance
Process industries have always recognized that wasting energy leads to reduced profits.
If a plant uses more energy than its competitors, its product could be priced out of the
marketplace.
A chemical process may consists of reactors, pumps, compressors, distillation columns,
mixing tanks, evaporators, filter presses, particle size reduction and transportation filter
presses, particle size reduction and transportation apparatuses.
apparatuses Each of these units either
requires or releases energy.
So,, the total amount of energy required in the plant should be estimated and we always need
to design and operate each unit operations in such a way that the energy requirement is
minimum.
61

Cont.
As with mass, energy can be considered to be separately conserved in all but nuclear
processes.
The conservation of energy differs from that of mass in that energy can be generated
(or consumed) in a chemical process.
Material can change form, new molecular species can be formed by chemical
reaction, but the total mass flow into a process unit must be equal to the flow out at
the steady state.
The same is not true of energy. The total enthalpy of the outlet streams will not equal
that of the inlet streams if energy is generated or consumed in the processes; such as
that due to heat of reaction.
62

Cont.
Energy can exist in several forms: heat, mechanical energy, electrical energy,
and it is the total energy that is conserved.
conserved
In process design, energy balances are made to determine the energy
requirements of the process: the heating, cooling and power required.
In plant operation, an energy balance(energy audit) on the plant will show the
pattern of energy usage, and suggest areas for conservation and savings.

63

Cont..
A general equation can be written for conservation of energy
Energy out= energy in+ generation- consumptionconsumption accumulation
This is a statement of the first law of thermodynamics.
thermodynamics
an energy balance can be written for any process step
Chemical

reaction

will

evolve

energy

(exothermic)

or

consume

energy(endothermic). For stead state processes the accumulation of both mass

and energy will b zero.
Energy can exist in many different forms and this makes it more complicated
than material balance
64

Cont.
Energy can be transferred between a system and the surrounding as
Kinetic energy: energy due to the translational motion of the system as a whole relative to
some frame of reference(usually the earths surface) or to rotation of the system about some
axis.
Potential energy: energy due to the position of the system in a potential field (such as a
gravitational or electromagnetic field).
Internal energy: all energy possessed by a system other than kinetic and potential energy,
such as energy due to the motion of molecules relative to the center of mass of the system, to
the rotational and vibrational motion and the electromagnetic interactions of the molecules,
and the motion and interactions of the atomic and subatomic constituents of the molecules.
65

Cont.
As heat or energy that flows as a result of temperature difference between a system and its
surroundings.
The direction of flow is always from a higher temperature to a lower one Heat is defined
as positive when it is transferred to the system from the surroundings.
As work, or energy that flows in response to any driving force other than a temperature
difference, such as a force, a torque or a voltage.
voltage
For example, if a gas in a cylinder expands and moves a piston against a restraining force,
the gas does work on he piston( energy is transferred as work from the gas to its surrounds,
which include the piston).
66

project
Your project must include the following tasks
Take any chemical processing plant
Put your objective on the plant and determine design variables, put flow sheet and process
diagram
Do necessary plant design steps and bring your result weekly
Do material balance , energy balance, economic analysis,
Select site for your plant
Put reasonable plant lay out
Do analysis on waste minimization for your plant

67

Economic analysis in plant

design

68

introduction
Even if insufficient technical information is available to design a plant completely, we
must still make an economical evaluation to determine if it is economically and financially
feasible.
A project is economically feasible when it is more profitable than other competing
projects, and financially feasible when management can raise the capital for its
implementation.
Although calculations may show that a given project could be extremely profitable, the
capital requirements may strain the financial capabilities of the organization.
In this case, the project may be abandoned unless partners can be found to share the risk.
69

Introduction(cont..)
The economic evaluation of a process proceeds in several steps. These are:
1. Preparing A Process Flow Diagram
2. Calculating Mass And Energy Flows
3. Sizing Major Equipment
4. Estimating The Capital Cost
5. Estimating The Production Cost
6. Forecasting The Product Sales Price
7. Estimating The Return On Investment or other profitability measurements.
70

The need for economic analysis

Plant design should offer a direct cost advantage and must give profit to the
investing organ.
Plant design projects are typically continuous and

long term, involving

investment, and hence are perceived as a business risks or success.

Thus economic analysis becomes necessary to clearly quantify and predict
financial and economic risks or success of various alternative plant design
projects.

71

Cont.
An understanding of engineering and economics principles is a prerequisite for direct Plant
design work as well as plant operation.
The expression plant design always aimed at industrial applications; consequently, the Birr
flow & balance must always be kept in mind when carrying out the design of a plant and its
operation.
The theoretical and practical aspects of plant engineering are important, but, in the final
analysis, the answer to the question Will we realize a profit from this venture? almost
always determines the fate and true value of design.
The engineer, therefore, should know that the fate of his plant design is determined by the
financial & economic return and viability.

72

Objectives of economic analysis

To implement fundamental principles of economic analysis for plant design
projects.
To screen plant design projects based on the profitability obtained by
Economic analysis.

73

Types Of Capital Cost Estimates

1. Order of magnitude estimate (ratio estimate) based on similar previous cost data (+/(+/
30%)
2. Study estimate (factored estimate) based on knowledge of major items of equipment(+/equipment(+/
25%)
3. preliminary estimate (budget authorization estimate or scope estimate) based on
sufficient data to permit the estimate to be budgeted(+/-20%)
budgeted(+/
4. Definitive estimate (project control estimate) based on almost complete data but before
completion of drawing and specifications(+/--10%)
5. detailed estimate (contractors estimate) based on complete engineering drawings,
specifications and site surveys (+/- 10%)
74

FACTORS AFFECTING INVESTMENT AND PRODUCTION

COSTS
The engineer must be aware of actual prices for raw materials and
equipment, company policies, government regulations and others
Sources of equipment
Price fluctuations
Company policies
Operating time and rate of production
government policies
75

Estimation of total capital investment

TCI=FCI+ WC
Where TCI is total capital Investment
FCI is fixed capital investment and
WC is working capital

WC is the capital necessary for the operation of the plant

FCI is capital needed to supply the required manufacturing and plant facilities
WC/TCI varies with different companies . Most chemical plants used 10-20%
( it may increase to as much as 50%
% for companies producing products of
seasonal demand)

76

Estimation of total capital investment

Some of the capital investment can occur as lump sum.
The flow of cash for the fixed capital investment is usually spread on the entire
construction period. FCI= MC( direct) + NMC (indirect)
Where MC is manufacturing fixed capital investment
NMC is non manufacturing fixed capital investment

Total capital investment TCI = MC+ NMC+WC

Because income from sales and cost of operations may occur on an irregular time
basis, a reservoir of working capital must be available to meet these requirements
77

Direct Costs
Direct costs is the cost of material and labor involved in actual installation of complete
facility(70-85% of fixed capital investment)
1. Purchased equipment (15-40% of fixed capital investment)
All equipment listed on a complete flow sheet, Spare parts and non-installed equipment spares supplies, and
equipment allowance. Inflation cost allowance, Freight charges, Taxes, insurance, duties. Allowance for
modifications during startup.

2. Purchased-equipment installation (including insulation and painting (25-55% of

purchased equipment cost)
Installation of all equipment listed on complete flow sheet, Structural supports, insulation, and paint.
Structural supports, insulation, and paint.
78

Cont..
3. Instrumentation and controls: installed (6-30% of purchased equipment cost)
Purchase, installation, calibration, computer tie-in.
tie

4. Piping: installed (10-80%

80% of purchased equipment cost)
Process piping-carbon
carbon steel, alloy, cast iron, lead, lined, aluminum, copper, ceramic, plastic, rubber,
reinforced concrete pipe hangers, fittings, valves Insulation-piping,
Insulation
equipment

5. Electrical equipment and materials:

materials installed (10-40% of purchased
equipment cost)
Electrical equipment -switches, motors, conduit, wire, fittings, feeders, grounding, instrument and
control wiring lighting, panels, Electrical materials and labor.
79

Cont..
6. Buildings (including services)
Process buildings-substructures, superstructures,
superstructures platforms, supports, stairways, ladders, access
ways, cranes, monorails, hoists, elevators
Auxiliary buildings-administration and office, medical or dispensary, cafeteria, garage, product
warehouse, parts warehouse, guard and safety, fire station, change house, personnel building,
shipping office and platform, research personnel building, shipping office and platform, research
laboratory, control laboratory Maintenance shops-electric,
shops
piping, sheet metal, machine, welding,
carpentry, instrument Building services-plumbing,
plumbing, heating, ventilation, dust collection, air
conditioning, building
lighting, escalators, telephones, intercommunication systems, painting, sprinkler systems, file
alarm.
80

Cont..
7 Yard improvements
Site development-site clearing, grading, roads, walkways, railroads, fences,
fences parking areas, wharves and piers, recreational facilities, landscaping

8. Service facilities
Utilities-steam, water, power, refrigeration, compressed air, fuel, waste disposal
Facilities-boiler plant incinerator, wells, river intake, water treatment,
treatment cooling towers, water storage, electric substation, refrigeration plant, air
cooling towers, water storage, electric substation, refrigeration plant, air plant, fuel storage, waste disposal plant, environmental controls, fine
protection
Non process equipment-office furniture and equipment, cafeteria equipment, safety and medical equipment, shop equipment, automotive
equipment, yard material-handling equipment, laboratory equipment,
equipment locker-room equipment, garage equipment, shelves, bins, pallets, hand
trucks, housekeeping equipment, fire extinguishers, hoses, fire engines, loading stations
Distribution and packaging-raw-material and product storage and handling equipment, product packaging equipment, blending facilities, loading
stations

81

 Buildings, process and auxiliary(10-70%

70% of purchased equipment cost)
Service facilities and yard improvements (40-100%
(40
of purchased equipment
cost)
Land (1-2%
2% of fixed capital investment or 4-8%
4
of purchased cost)
Equipment+ installation + piping +electrical + installation+ painting
(50-60%
60% of fixed capital investment)

82

Indirect costs
Expenses which are not directly involved with material and labor of actual installation of complete facility (15-30% of fixed
capital investment)
1. Engineering and supervision ( 5-30% of direct cost)

Engineering costs-administrative, process, design and general engineering,

engineering drafting, cost engineering, procuring, expediting, communications, scale model,
consultant fes, travel, engineering supervision and inspection

2. Construction expenses and Contractors fee (6-30% of direct cost)

Construction, operation and maintenance of temporary facilities, offices,

offices roads, parking lots, railroads, electrical, piping, communications, fencing

Construction tools and equipment

Construction supervision, accounting, timekeeping, purchasing, expediting

Warehouse personnel and expense, guards

Safety, medical

Permits, field tests, special licenses

Taxes, insurance, interest

3. Contingency (5-15% of fixed capital investment)

83

Estimating purchased equipment cost

Firm bids from fabricators or suppliers
Most accurate
quick estimates, close to the bid price
Need no too much time

Use previous cost on similar equipment and scale for time and size
Reasonably accurate
Corrected to the current cost index
Beware of large extrapolation
Beware of foreign currency

Use cost estimating charts and scale for time

Less accurate
convenient
84

Estimating equipment cost by scaling(six-tenth

scaling(six
factor rule)
logarithmic relationship

85

Methods for estimating capital investment

A. detailed tem estimate
B. unit cost estimate
C. Percentage delivered equipment
D. Lang factors for approximation of capital investment
E. Power factor applied to plant/capacity ratio
F. Investment cost per unit capacity
G. Turnover ratio
86

Detailed item estimate

Each individual equipment and material need as determined from completed drawings and
specifications are priced either from current cost data or preferably from firm delivered
quotations.
Estimates of installation costs are determined from accurate labor rates, efficiencies, and
employee-hour calculations.
Accurate estimates of engineering, drafting, field supervision employee-hours, and field
expenses must be detailed in the same manner.
manner Complete site surveys and soil data must be
available to minimize errors in site development and construction cost estimates.
Because of the extensive data necessary and the large amounts of engineering such a detaileditem estimate, this type of estimate is almost exclusively only prepared by contractors bidding
on lump-um work from finished drawings and specifications.

87

Unit cost estimate

This method, which is frequently used for preparing definitive and preliminary estimates,
also requires detailed estimates of purchased price obtained either from quotations or
index-corrected cost records and published data.
data
Equipment installation labor is evaluated as a fraction of the delivered equipment cost.
Costs for concrete, steel, pipe, electrical, instrumentation, insulation, etc., are obtained by
take offs from the drawings and applying unit costs to the material and labor needs.
A unit cost is also applied to engineering employee-hours, number of drawings, and
specification.
A factor for construction expense, contractors fee, and contingency is estimated from
previously completed projects and is used to complete this type of estimate.
88

Purchased equipment cost

This method for estimating the fixed or total-capital investment requires
determination of the purchased or delivered equipment cost. (Quotation,
index cost, internet)
The other items included in the total direct plant cost are then estimated as
percentages of the delivered-equipment
equipment cost.
The additional components of the capital investment are based on average
percentages of the total direct plant cost, total direct and indirect plant
cost, or total capital investment
89

Lang factorial method for FCI

The fixed capital cost of the project is given as a function of the total purchase
equipment cost by the equation:
FCI=FLF*PEC
Where FC fixed capital cost,
PECthe total delivered cost of all the major equipment items: storage tanks, reaction
vessels, columns, heat exchangers, etc.,
FL-FCI=the FCI lang factor, which depends on the type of process.
FL-FCI =3.1- 3.9 for predominantly solids processing plant
=4.7-4.8 for predominantly fluids processing plant
=3.6-4.1 of a mixed fluids-solid processing plant
90

POWER FACTOR APPLIED TO PLANT/CAPACITY RATIO

To obtain order-of-magnitude estimates.
estimates
FCI/Cn are obtained by relating the fixed-capital investment of a new
process plant(Cn) to the fixed-capital
capital investment of similar previously
constructed plants (C) by an exponential power ratio (x):
Cn=C*fe*Rx
fe is the cost index at the time of cost Cn to that at the time of C.
R is capacity ratio =Cn/C

91

Turnover ratio
Turnover ratio= gross annual sales/fixed--capital investment
Turnover ratios range from 0.2 to 4 (rule of thumb for chemical industry: turnover
ratio=1)
The reciprocal of this ratio is the so-called
called capital ratio or the investment ratio

92

Working Capital(WC)
Total amount of money invested in:
1. Raw materials and supplies carried in stock(usually 1 month supplies valued at delivery prices)
2. 2. finished products in stock
3. Semi-finished products being manufactured
4. Accounts receivable
5. Cash kept on hand for monthly payment of operating expenses(salaries, wages and raw
materials purchases
6. Accounts payable
7. Taxes payable
93

Cost indexes
Time increase- cost increase (inflation)
Inflation is measured by cost indexes
Cost indexes can be used to give a general estimate, but no index can take into account all factors, such as special technological advancements or
local conditions.
An index value for a given time showing the cost at that time relative to a certain base time.
Present cost= original cost* index value at present time/ index value at time original cost was obtained
Valid the period less than 10 years
We can project costs forward by using extrapolated values of an index or an expected inflation rate.

Most common indexes: ( some of these can be used for estimating equipment costs; others apply specifically to labour, construction, materials or
other specialized fields)
Marshall and swift all industry
Process-industry equipment indexes
Engineering news-record construction index
Nelson-Farrar refinery construction index
Chemical engineering plant cost index
94

Cont.
Marshall & Swift Equipment Cost Indexes
All-industry equipment index is the arithmetic average of indexes for 47 different types of industrial, commercial, and housing
equipment based on an index value of 100 for the year 1926..
Account for cost of machinery and major equipment plus costs for installation, fixtures, tools, office, and minor equipment.

Engineering News-Record Construction Cost Index

Relative construction costs at various dates can be estimated by the use of this method.
Indicates variance in labor rates and materials costs for industrial construction.
One of three basis used: 100 for 1913, 1949 or 1967.

Nelson-Farrar Refinery Construction Cost Index

This will determine the petroleum industry construction costs.
costs
The total index percentages are weighted as follows: skilled labor,30; common labor, 30; iron and steel, 20; building materials,
8; and miscellaneous equipment, 12.
Basis - 100 for 1946.
95

Cont.
CHEM.ENGR. PLANT COST INDEX (CEPCI)
Construction costs for chemical plants.
The four major components are: equipment, machinery and supports, 61%; erection and
installation labor, 22%; buildings, materials, and labor, 7%; engineering and supervision,
10%
Major components subdivided as: fabricated equipment 37%; process machinery, 14%; pipe,
valves, and fittings, 20%; process instruments and controls, 7%; fittings, 20%; process
instruments and controls, 7%; pumps and compressors, 7%; electrical equipment and
materials, 5%; structural supports, insulation and paint, 10%
basis - 100 for 1957-1959

96

Cont.
Unfortunately, all cost indexes are rather artificial; two indexes covering the
same types of projects may give results that differ considerably.
The most that any index can hope to do is to reflect average changes.
For use with process-equipment estimates and chemical plant investment
estimates, The Marshall and Swift equipment Cost indexes and the Chemical
Engineering plant cost indexes are recommended.
recommended

97