CHAPTER 5

ECONOMIC FEASIBILITY STUDIES

5.1 Sulphuric Acid Business in the Global Market

One of the chemicals produced in the highest quantities worldwide is sulphuric acid.

According to figures provided by producers, industry analysts, and other market watchers,

sulphuric acid production in recent years has been over 200 million tonnes (Kumareswaran,

2013).

5.1.1 Consumption and Market

A. Consumption

According to several sources used in the literature review, the majority of sulphuric acid's end

users are in the fertilizer industry, with the remainder primarily going to the paper industry,

metal processing, petroleum downstream industries like alkylation, and other industrial

chemicals like titanium dioxide and ammonium sulphate.

Table 5.1 End users of Sulphuric acid (US Sulphuric Acid Market Analysis Final Report,

2020)

End Use %
Phosphoric acid and fertilizer production 70

Copper leaching 5

Petroleum alkylation 4

Pulp and paper 3

Ammonium Sulphate 2
Aluminium Sulphate 1

Other 15

In a larger sense, sulphuric acid is used in the making of almost all manufactured goods and

has a wide range of other applications. The manufacturing of fertilizers, such as

superphosphate of lime and ammonium sulphate, is the primary usage of sulphuric acid. In

the production of synthetic detergents, dyes and pigments, explosives, medicines, and

hydrochloric and nitric acids, for example, it is also commonly utilized. Sulphuric acid also

finds usage in the refinement of petroleum, where it is used to remove contaminants from

gasoline and other refinery products. A growing part of consumption is consumed by the

metal sector, for example, while washing iron and steel before coating it with tin or zinc.

Sulphuric acid, sometimes known as "battery acid," which contains roughly 33% H 2SO4, is

used to make rayon, which serves as the electrolyte in lead-acid storage batteries that are

frequently used in automobiles.

B. Market

When reviewing available literature it became apparent that sources of Sulphuric acid supply

are mainly determined based on two criteria.

i. Nature of raw material sourcing

Brimstone is used as the primary raw material in the production of sulphuric acid using the

Contact process or other antiquated methods. Sulphur is also known as "brimstone," and it

can be found in hot springs, salt domes, and volcanically active areas.
62 percent of the world's supply of sulphuric acid is produced using sulphur as the original

raw material, according to sulphuric industry specialists and consultants like the British

Sulphur Consultants (Peacock).

The above-mentioned contribution is referred to by industrial specialists as the "voluntary

capacity" of sulphuric acid supply. Raw materials in the form of elemental sulphur are

frequently obtained through petroleum refining by-products.

ii. Availability of labour – skilled and unskilled

C. Market Demand for Sulphuric Acid

Sulphuric acid is one of the world’s largest volume industries, and arguably the largest

industrial chemical produced by mass in the United States. According to news articles and

market projections provided by industrial experts, and industry specific data providers,

demand for Sulphuric acid for the next few years seem to be growing at a rate of 1.5-2.5%

(Sulphuric Acid: 2021 World Market Outlook and Forecast, 2021) (Sulphuric Acid, 2020).

When analyzing the nature of the demand for Sulphuric acid, several attributes were

observed. In general however, it is worthwhile mentioning that the multifarious industrial

applications of Sulphuric acid, that spans across many facets of the manufacturing industry,

catering to a wide range of human needs is the driving force behind this trend in demand. For

instance, fertilizer demand for Sulphuric acid is forecast to grow at about 2.3% during 2015–

2029 (Sulphuric Acid, 2020). In response, several new phosphate fertilizer plants are

scheduled to be constructed over the forecast period, mostly in northern Africa, the Middle

East and China. Industrial observers’ further point out that non fertilizer Sulphuric acid

demand will come primarily from nickel and other metal processing operations. Being a
downstream industry of Sulphuric acid, this has profound implications on the overall market

for Sulphuric acid.

Figure 5.1; Market volume of sulphuric acid worldwide from 2015 to 2021, with a forecast

for 2022 to 2029 (in million metric tons) (Sulphuric acid: 2015)

5.2 Cost

5.2.1 Plant Capacity

Assume supplier can supply 1,000kmol sulphur/day

Basis: 1,000kmol sulphur/day = 35tons/day

312 working days

output of Sulphuric acid obtainable from the above Basis.

Applying the chain of chemical reaction that leads to formation of Sulphuric acid starting

from Sulphur is used as follows to obtain the maximum yield of Sulphuric acid as moles.

(Assumption: 100% conversion and negligible losses at each stage)

S (l) + O2 (g) → SO2 (g)

Moles of SO2 formed = Moles of sulphur available

SO2 (g) + ½ O2 (g) ↔ SO3 (g)

Moles of SO3 formed = Moles of SO2 fed in

SO3 (g) + H2SO4 (l) → H2S2O7 (l)

Moles of Oleum formed = moles of SO3 fed in

Moles of sulphuric acid formed = 2 x the amount of oleum dissolved

1,000 kmol
= 2× =2,000 kmol /day
day

Half the sulphuric acid is required for the production process

Therefore; the amount of sulphuric acid produced

2000 kmol 98 kg 1 ton

Cost of sulphur/day = Sulphur required/day x price

For 35 tons daily and yearly = 35 x 180 = $6,300 x 312 = $1965600

Cost of sulphuric acid produced

Price of sulphuric acid = $400/ton

For 108 tons = 108 x 400 = $43,200 x 312 = $13,478,400

Utility Cost/day (Electricity, Heating Oil, Steam)

Electricity (60 KW/ton) = $1614

Heating Oil (45,378.9MJ (1,137.83 gal (US) = $826

Steam (300 tons) = $5460

Total = $7900 x 312 = $2464800

Cost of Catalyst V2O5 = $3,350/ton (141 ton/year) = $472,350

Consider entire plant and calculation on yearly basis

Capital cost of plant in 1989 was $4,000,000

The chemical engineering plant cost index (CEPCI) takes into account most factors that may

have affected a plant cost between 1989 and the present. Since this index is specifically

defined for plant costing and comparison with previous years, the reliability of above is likely
to be high. The CEPCI for 1989 was approximated as 350.0 while 2022 index was obtained

as 585.7 (Chemical Engineering Plant Cost Index (averaged over year))

Now cost in 2022 is Cost index in year 1989 x (585.7/350) = $7,000,000 approximately

(Kumareswaran, 2013)

Fixed Capital Cost = Cost of plant + cost of catalyst

= $7000000 + $472,350 = $7472350

Working Capital = 5% of fixed Capital = 0.05 x $7472350 = $373617.5

Total investment = fixed capital + working Capital

= $7472350 + $373617.5 = $7845967.5 = $8000000

Variable cost

Cost of sulphur yearly = $1965600

Utilities cost = $2464800

Others are neglible

Fixed Cost

Maintenance = 5% fixed Capital = $373617.5

Operating Labour = $1000000

Plant overheads, take as 50% of operating labour = 0.5 x 1500000 = $500000

Laboratory, take as 30% of operating labour = 0.3 x 1000000= $300000

Total = $2248341

Total investment
Payback Period =
Direct production cost

$ 8000000
=
$ 2248341

= 3.56 years

Direct production cost

$ 2248341
= ×100
$ 8000000

= 28.10%