Chapter 07: Instrumentation and Control

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7.1 Introduction

Instruments are provided to monitor the key process variables during plant operation. They
may be incorporated in automatic control loops or used for the manual monitoring of the
process operation. They may also be part of an automatic computer data logging system.
Instruments monitoring critical process variables will be fitted with automatic alarms to alert
the operators to critical and hazardous situations.
Measurement is a fundamental requisite to process control. Either the control can be affected
automatically, semi-automatically or manually. The quality of control obtainable also bears a
relationship to accuracy, reproduce ability and reliability of measurement methods, which are
employed. Therefore, the selection of the most affected means of measurement is an important
first step in the design and formulation of any process control system.
The main objective of specifying and using instruments and controls systems are
• To save the plant operation by keeping the process variables within the operating limits
and detecting the dangerous situations since developed.
• To control the product rate and quality within the specified quality.
• To operate the process at the lowest production cost.
7.2 Components of the control system
7.2.1 Process
7.2.2 Measuring means or instruments.
7.2.3 Variables to be measured
7.2.4 Pressure
7.2.5 Temperature
7.2.6 Flow
7.2.7 Level
7.2.8 Controllers
7.2.9 Sensors
7.2.10 Alarms, safety trips and interlocks.
7.2.11 Final control elements
7.3 Control Loops
For instrumentation and control of different sections and equipment of plants, following
control loops are most often used.
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 1. Feed backward control loop
2. Feed forward control loop
3. Ratio control loop
4. Split range control loop
5. Cascade control loop
Here is given a short outline of these control schemes, so that to justify out the selection of
a control loop for specified equipment.
7.3.1 Feed Backward Control Loop
A method of control in which a measured value of a process variable is compared with the
desired value of the process variable and any necessary action is taken. Feedback control is
considered the basic control loops system. Its disadvantage lies in its operational procedure.
For example, if a certain quantity is entering a process, then a monitor will be there at the
process to note its value. Any changes from the set point will be sent to the final control element
through the controller so adjust the incoming quantity according to desired the value (set point).
But in fact, changes have already occurred, and only corrective action can be taken while using
a feedback control system.
7.3.2 Feed Forward Control Loop
A method of control in which the value of disturbance is measured then action is taken to
prevent the disturbance by changing the value of a process variable. This is a control method
designed to prevent errors from occurring in a process variable. This control system is better
than feedback control because it anticipates the change in the process variable before it enters
the process and takes preventive action. While in a feedback control system action is taken
after the change has occurred.
7.3.3 Ratio Control
A control loop in which, the controlling element maintains a predetermined ratio of one
variable to another. Usually, this control loop is attached to such a system where two different
systems enter a vessel for the reaction that may be of any kind. To maintain the stoichiometric
quantities of different streams, this loop is used to ensthe ure proper process going on in the
process vessel.
7.3.4 Split Range Loop
In this loop, the controller is present with different values corresponding to different actions
to be taken at different conditions. The advantage of this loop is to maintain the proper
conditions and avoid abnormalities at very different levels.

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 7.3.5 Cascade Control Loop
This is a control in which two or more control loops are arranged so that the output of one
controlling element adjusts the set point of another controlling element. This control loop is
used where proper and quick control is difficult by simple feed-forward or feed-backward
control. Normally the first loop is a feedback control loop.
7.4 Controller Types According to Function
7.4.1 Flow Controllers
These are used to control the feed rate intprocessingcess unit. Orifice plates are by far the
most type of flow rate sensor. Normally, orifice plates are designed to give pressure drops in
the range of 20 to 200 inches of water. Venture tubes and turbine meters are also used.
7.4.2 Temperature Controller
Thermocouples are the most commonly used temperature-sensing devices. The two
dissimilar wires produce a milli-volt emf that varies with the "hot-junction" temperature. Iron-
constricting thermocouples are commonly used over the 0 to 1300°F temperature range.
7.4.3 Pressure Controller
Bourdon tubes, bellows, and diaphragms are used to sense pressure and differential pressure.
For example, in a mechanical system the process pressure force is balanced by the movement
of a spring. The spring position can be related to process pressure.
7.4.4 Level Controller
Liquid levels are detected in a variety of ways.
The three most common are:
Following the position of a float, that is lighter than the fluid.
7.4.4.1 Measuring the apparent weight of a heavy cylinder as it buoyed up more or less
by theliquid (these are called displacement meters).
7.4.4.2 Measuring the difference in static pressure between two fixed elevations, one
in the vapor above the liquid and the other under the liquid surface.
7.4.4.3The differential pressure between the two-level taps is directly related to the
liquid levelin the vessel.
7.4.5 Transmitters
It is the interface between the process and its control system, and its job is to convert the
sensor signal into a control signal.

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 7.4.6 Sensors
The instruments on the process measure the properties and important variables such as
temperature, pressure, flow rate and level.
7.4.7 Alarms, Safety Trips
Alarms are used to alert operators of serious, and potentially hazardous, deviations in
process conditions. Key instruments are fitted with switches and relays to operate audible and
visual alarms on the control panels and enunciator panels. Where delay, or lack of response, by
the operator is likely to lead to the rapid development of a hazardous situation, the instruments
would be fitted with a trip system to take action automatically to avert the hazard, such as
shutting down pumps, closing valves, operating emergency systems. The basic components of
an automatic trip system are
1. A sensor to monitor the control variable and provide an output signal when a preset
value exceeded (The instrument).
2. A link to transfer the signal to the actuator, usually consisting of a system of pneumatic
or electric relays. ‘
3. Ana actuator to carry out the required action, close or open a valve, switch off the motor.
7.4.8 Interlock
Where it is necessary to follow a fixed sequence of operations for example, during a plant
start-up and shut-down, or in batch operations interlocks are included to prevent operators
departing from the required sequence, they may be incorporated in the control system design.
Various proprietary special lock and key systems are available.
7.5 Classification of Controllers
In general, the process controllers can be classified as:
7.5.1 Pneumatic controllers
7.5.2 Electronic controllers
7.5.3 Hydraulic controller
In the double pipe heat exchanger, the controller and the final control element may be
pneumatically operated due to the following reasons:
7.5.4 The pneumatic controller is varying rugged and almost free of maintenance. The
maintenance men have not had sufficient training and background in electronics,
so basically pneumatic equipment is simple.
7.5.5 The pneumatic controller appears to be safer in a potentially explosive atmosphere
which is often present in the petrochemical industry.

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 Transmission distances are short. Pneumatic and electronic transmission system is generally
equal up to about 250 to 300 feet. Above this distance, electronic systems begin to offer savings.
7.6 Modes of Control
The various type of control is called "modes" and they determine the type of response
obtained. In other words, these describe the action of the controller that is the relationship of
output signal to the input or error signal. It must be noted that it is error that actuates the
controller. The four basic modes of control are:
7.6.1 On-off Control
7.6.2 Integral Control
7.6.3 Proportional Control
7.6.4 Rate or Derivative Control
In industry purely integral, proportional or derivative modes seldom occur alone in the
control system. The On-off controller in the controller with very high gain. In this case the error
signal at once off the valve or any other parameter upon which it sits or completely sets the
system.
The main process variables of this kind of processes are:
7.6.5 The inlet temperature of the fluid in the hot side Thi
7.6.6 The inlet temperature of the fluid in the cold side Tci
7.6.7 The outlet temperature of the fluid in the hot side Tho
7.6.8 The outlet temperature of the fluid in the cold side Tco
7.6.9 The flow rate in the hot side vh
7.6.10 The flow rate in the cold side vc.
7.7 The plant operates as a water-cooling process:
The hot water flows through the inner tube and the cooling water flows in the shell (the
external tube).
The pilot-plant is equipped with the following instruments:
7.7.1 Tci and Tco are measured via two SIKA® glass thermometers (TI1 and TI2
respectively)
7.7.2 Tco and Thi are measured via two Engelhard Pyro-Control Pt-100 temperature
transmitters (TT1 and TT2 respectively)

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7.7.3 Vc and Vh are measured by means of two Platoon variable section flowmeters
(FI1 andFI2 respectively).

Figure 22: Instrumentation diagram of the counter flow double-pipe heat exchange

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 7 Chapter 08: HAZOP Study
8.1 What is HAZOP study
The Hazard and Operability Study (or HAZOP Study) is a standard hazard analysis
technique used in the preliminary safety assessment of new systems or modifications to existing
ones. The HAZOP study is a detailed examination, by a group of specialists, of components
within a system to determine what would happen if that component was to operate outside its
normal design mode.
The effects of such behavior are then assessed and noted down on study forms. The
categories of the information entered on these forms can vary from industry to industry and
from company to company. The primary goal of performing a HAZOP study is to identify or
quantify the hazards in a process. The end project of a study is a list of concerns and
recommendations for the prevention of the problem, not an analysis of the occurrence,
frequency overall effect, and the definite solution.
8.2 Objectives of HAZOP study
8.2.1 To identify the potentials
8.2.2 To identify and study features of the design that influence the probability of a
hazardousincident occurring.
8.2.3 To familiarize the study team with the design information available.
8.2.4 To ensure that a systematic study is made of the areas of significant hazard potential.
8.2.5 To identify pertinent design information not currently available to the team.
8.2.6 To provide a mechanism for feedback to the client of the study team’s
detailedcomments.
8.3 Keywords used in HAZOP study
Keywords are used to focus the attention of the team upon deviations and their possible
causes. These keywords are divided into two sub-sets:
8.3.1 Primary Keywords focus attention upon an aspect of the design intent or an
associatedprocess condition and parameter.
8.3.2 Secondary Keywords which, when combined with a primary keyword, suggest
possibledeviations.
8.3.1 Primary keywords
These reflect both the process design intent and operational aspects of the plant being
studied. Typical process-oriented words might be as follows. The list below is purely
illustrative, as the words employed in a review will depend upon the plant being studied.
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 Table 29: Primary Keywords
Flow Temperature

Pressure Level
Separate (settle, filter, centrifuge) Composition
React Mix
Reduce (grind, crush, etc.) Absorb
Corrode Erode
8.3.2 Secondary keywords
As mentioned above, when applied in conjunction with a Primary Keyword, these suggest
potential deviations or problems. They tend to be a standard set as listed below:
Table 30: Secondary Keywords
Word Meaning
No The design intent does not occur (e.g., Flow/No), or the operational
aspect is not achievable (Isolate/No)
Less A quantitative decrease in the design intent occurs (e.g., Pressure/Less)

More A quantitative increase in the design intent occurs (e.g.,

Temperature/More)
Reverse The opposite of the design intent occurs (e.g., Flow/Reverse)

Also The design intent is completely fulfilled, but in addition some other
related activity occurs (e.g., Flow/Also indicating contamination in a
product stream, or Level/Also meaning material in a tank or vessel
which should not be there)
Other The activity occurs, but not in the way intended (e.g., Flow/Other could
indicate a leak or product flowing where it should not, or
Composition/Other might suggest unexpected proportions in a
feedstock)
Fluctuation The design intention is achieved only part of the time (e.g., an air-lock
in a pipeline might result in Flow/Fluctuation)
Early Usually used when studying sequential operations, this would indicate
that a step is started at the wrong time or done out of sequence

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 Late As for early

8.4 HAZOP Study Process Description

HAZOP is a formal procedure that offers great potential to improve the safety, reliability,
and operability of the process plant by recognizing and eliminating potential problems at the
design stage. It is not limited to the design stage however it can be applied anywhere that a
design intention can be defined, such as; Continuous or batch processes being designed or
operated.
A HAZOP study is conducted in the following steps:
8.4.1 Operating procedures.
8.4.2 Maintenance procedures.
8.4.3 Mechanical equipment design.
8.4.4 Critical instrument systems.
8.4.5 Development of process control computer code.
8.4.6 Emergency response procedures.
8.4.7 Safety and training manuals.
8.4.8 Process control logic diagrams.
8.5 Concepts of HAZOP Study
These studies make use of combined experience and training of the graining of a group of
knowledge able people in a structured setting. Some key concepts are:
➢ Intention:
Defines how the part or process is expected to operate.
➢ Guide Words:
Simple words used to qualify the intention to guide and stimulate creative thinking and so
discover deviations
➢ Deviations:
Departures from the intention discovered by the systematic application of guide word.
➢ Causes:
Reasons that deviations might occur.
➢ Consequences:
Results of deviations if they occur.
➢ Actions:
8.5.1 Presentation, mitigation and control.

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 8.5.2 Prevent causes.
8.5.3 Mitigate the consequences.
8.5.4 Control action, e.g., provide alarms to indicate things out of control.
The HAZOP study is not complete until response to action has been documented. Initial
HAZOP planning should establish the management follows up procedure that will be used. The
guide words can be used on broadly based intentions, but when intentions are expressed in fine
detail, some restrictions or modifications are necessary for the chemical process, such as:
8.5.5 No flow.
8.5.6 Reverse flow.
8.5.7 Less flow.
8.5.8 More temperature.
8.5.9 Less temperature.
8.5.10 Composition change.
8.5.11 Sampling.
8.5.12 Corrosion/ erosion.
This gives the process plant a specific HAZOP guide word list with process variables, Plant
condition or an issue. HAZOP studies may be made on batch as whole as continues process.

8.6 HAZOP Study of CSTR Reactor

Table 31: HAZOP Study of CSTR Reactor
Parameter Guide Possible consequences Possible causes Action
word
No No reaction Inlet valve Install flow
No product fully closed meter routine
Blockage inspection
More Uncontrolled reaction Excess feed Install
Flow Excessive heat control valves
Process disturbed
Less Low quality product Pipe leakage Routine
Valve partially inspects
closed
Temperature More Uncontrolled reaction More pressure Install
Excessive heat pressure control

8.7 HAZOP Study of Distillation Column 1

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Table 32: HAZOP Study of Distillation Column 1
Parameters Guide Causes Consequences Action
Word
No Flow Pump failure, No separation of Inspect and
blockage in feed components, potential maintain pumps,
line, control valve buildup of pressure, ensure spare parts
malfunction possible overheating, are available,
downstream processing perform regular
disruption line inspections
Flow More Flow Control valve Overloading of column, Calibrate control
malfunction, reduced separation systems, perform
incorrect set point, efficiency, potential regular checks on
pump overcapacity flooding of the column, valve functioning,
increased pressure monitor flow rates
Less Flow Partial blockage, Reduced throughput, Investigate and
pump degradation, inefficient separation, remove blockages,
incorrect control potential underflow check pump
settings leading to poor column performance,
operation recalibrate control
systems
Low Cooler Poor separation, possible Maintain and
Temperature malfunction, condensation of lighter inspect cooling
incorrect components, increased systems, adjust
temperature set viscosity of bottoms temperature set
point points as necessary
Temperature
High Heater Decomposition of Regularly calibrate
Temperature malfunction, chemicals, potential for temperature
incorrect thermal runaway, sensors, perform
temperature set damage to column maintenance on
point, exothermic internals heating systems, set
reaction conservative safety
limits
Pressure Low Vacuum pump Inefficient separation, Inspect and
Pressure failure, leaks, potential air ingress maintain vacuum
insufficient feed leading to oxidation, systems, check for
increased energy and repair leaks,
consumption monitor pressure
levels
High Overfeeding, valve Risk of equipment Regularly test and
Pressure malfunction, gas rupture, safety relief maintain relief
buildup valve activation, systems, monitor
potential for hazardous pressure readings,
releases ensure proper
venting

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 Chapter 09: Environmental Impact Assessment

9.1 Environmental Impact Assessment

9.1.1 Waste from the Manufacture and Use of Phenol
Waste created from the manufacture or industrial use of phenol is considered hazardous
waste if it contains compounds in an amount that, according to classification guidelines for
chemical substances and preparations, would result in classification for physical-chemical,
toxicological, or environmental qualities.
Thus, garbage containing phenol in an amount sufficient to classify it as hazardous should
be regarded as hazardous waste and disposed of/processed in accordance with local community
requirements. This includes a collection of liquid and solid waste from both industries and
private households. Users must transport paint and pine tar product remnants to a recycling
facility for collection.
For Solid Waste
It is assumed that waste containing phenol from consumer uses will enter into the waste
stream through the municipal collection of domestic waste i.e., through adhesive/glue and
varnishes, etc.
For liquid waste
It is assumed that waste containing phenol from consumer uses will enter into the waste
stream through the municipal collection of domestic waste i.e., through impregnating agents
(such as tar and wood), lacquers, and solvents.
These types of waste will often be characterized as hazardous waste
In Karachi, the largest amount of phenol is used in industrial production.
Phenol waste products from mixes and articles
Since phenol is used in mixtures and products, a limited quantity of phenol waste may be
generated for public use. Thus, a small amount may go into the municipal collection and
treatment of domestic waste under a waste flow for coal tar, etc.
Environmental consequences and Exposure
Phenol is released from numerous man-made resources, however the diffuse emissions by
means of car exhaust, human and animal metabolism and special combustion techniques grow
to be better than the industrial emissions.
Phenol is non-persistent within the environment and the predominant part of phenol inside
the ecosystem is degraded through photochemical reactions. A minor part might be removed
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 via rain. Phenol in water and soil is degraded with the aid of abiotic reactions and microbial
interest.
Environmental risk
There were many researchers at the toxicity of phenol to organisms in the environment, maskingbrief-
time period and long-time period toxicity to fish/vertebrates, invertebrates, brief-time period toxicity to
algae, and toxicity to microorganisms.
The Fate of Phenol in Every Environmental Compartment is Summarized UnderAir
Inside the atmosphere, phenol exists predominantly within the vapor phase. Due to its briefhalf of
existence, phenol is not predicted to be transported over superb distances in the environment.
Water
Phenol may also go through numerous removal approaches, along with biodegradation,
photooxidation, photolysis, and volatilization. Biodegradation is a chief process for the
removal of phenol from floor waters, supplied the concentration isn't always excessive
sufficient to motive extensive inhibition.
Soil
Phenol may additionally go through numerous elimination procedures, which include
biodegradation, adsorption/desorption, volatilization, and oxidation. Phenol is sensitive to
oxidizing sellers (which include metallic ions, which includes manganese and iron) and might
automobile-oxidize to form colored complexes consisting of quinones.

9.1.1 Industrial Manufacturing and Processing Sources

There are one-of-a-kind varieties of production and processing with possible phenol
releases. Those assets are mainly the manufacturing of bisphenol A, caprolactam, salicylic acid,
diphenyl ether, alkylphenols, nitrophenols, halogen phenols, and phenolic resins.

Different resources for launch are the manufacture of nylon and different artificial fibers,
the use in slimicides, the use as a disinfectant and antiseptic, and the use in cosmetics and
medicinal preparations. About the releases of phenol as a result of business manufacturing and
processing, the diffuse releases of phenol into the environment are significantly higher and
represent the principal source of phenol within the environment.

9.1.2 Environmental Effect

The risk reduction measures carried out:
• Unique regard to capability risks from phenol production and/or process in websites, in

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 admiration of industrial wastewater remedy vegetation situated at such websites.
• Monitoring the implementation of phenol and reporting any important trends to the
commission inside the framework of the alternative information.
Toxicokinetic, absorption, distribution, metabolism, and excretion
• Exposure to phenol may arise via inhalation, ingestion, or dermal contact.

• Phenol is well absorbed through the gastrointestinal, breathing tract, and the dermal
route even when carried out to intact pores and skin, and it's far swiftly allotted all
through the body.
• The liver and kidneys gain the highest concentrations of phenol-derived products.
• After oral publicity, phenol undergoes huge first-skip metabolism, with excessive
absorption charges e.g., 90% (rats), and 85 % (sheep). Through inhalation, 60 to 88%of
phenol is absorbed (humans).
• The metabolism of phenol is saturable and it predominantly takes place in the liver,
intestine, and kidneys.
Toxicity
As phenol has been used for more than 100 years, a big a part of the human fitness
consequences acknowledged today is because of poisoning cases, and so forth in ancient
instances.
Infection/corrosivity
Corrosivity is the primary effect on the website of contact.
• Skin and eyes may be severely affected when getting into contact relying on substance
attention.
• Phenol has the harmonized class “C, corrosive” and “R34, reasons burn” that's now
transferred to “pores and skin Corr. 1B; H314; causes severe skin burns and eye
damage”.
Sensitization
There is no proof of pores and skin sensitizing homes of phenol in animal exams as well as
thru human enjoy. Diabetics using insulin preserved with phenol document allergies after
insulin injection, which they trust are due to the phenol content material (single observations
visible on the net). The document results like” laid low with severe, allergies-like chest ache
and the incapacity to capture my breath” (see publicity from clinical treatment under).

Repeat guided dose toxicity

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 Exposure to high concentrations of phenol inside the air for numerous weeks brought about
paralysis and severe damage to the heart, liver, kidneys, and lungs, and in some cases, death.
9.1.3 Human Exposure
Direct publicity clients
Continuous exposure by means of using phenol-containing patron merchandise may arise
through inhalation and dermal direction. The usage of phenol-containing disinfectants,
antiseptics, medicinal merchandise, cosmetics, paints, ground waxes, polishes, etc., and other
client merchandise or programs of phenol-formaldehyde in may additionally bring about
dermal and/or inhalator publicity of customers to unbound phenol.
Inhalation
Publicity from the use of polishes/floor waxes, disinfectants, and printing inks become
calculated.
Exposure to prescription drugs
Phenol is used as a preservative in pharmaceutical arrangements and consequently a few
exposures thru scientific treatments had been mentioned.

9.1.4 Human health impact

General population
Individuals affected with hepatic or kidney sicknesses have to know not be uncovered to
phenol for any length of time, because even intermittent exposure to vapors may also come to
be risky, particularly whilst dealt with at elevated temperatures. Following the exposure
assessment, customers are not expected to be exposed to phenol within the variety of risky
doses which can be derived from acute oral or dermal toxicity figures.

9.1.5 Capability Risks for Purchasers

Skin infection
During exposure, clients are expected to be dermally uncovered to phenol-containing
merchandise. Phenol contained in consumer products it cannot be excluded that skin
inflammation will arise regardless of the short utility times (10 minutes)
Workers
The physiochemical homes may additionally affect workers in their dealing with of phenol.
Phenol isn't always explosive and it isn't noticeably flammable. Inside the case of leakage from
a closed device, but, phenol concentrations above the lower explosion restriction cannot be
excluded. The chance of the explosion may be managed if the notices relating to the fireplace
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 and explosion protection (avoid ignition assets, no smoking) are located.

9.1.6 Summary and Conclusions

A maximum of the phenol inhaled or ingested will input the bloodstream, however phenol will even input
through contact with the skin. Exposure to phenol may additionally arise
through inhalation, ingestion, or dermal touch. Phenol is well absorbed, hastily dispensed for the duration of
the body, and hastily excreted in urine with a T½ of approximately 3 to 5 hours. Phenol does no longer
accumulate inside the body.

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 8 Chapter 10: Cost Estimation
10.1 Introduction
Before the plant to be operated, specified money must be supplied to purchase and install
the equipment. The capital needed to supply the necessary plant facilities is called fixed capital
investment while that for the operation of the plant is called the working principle and the sum
of two capitals is called total capital investment.
An acceptable plant design must present a process that can operate under conditions that
will yield a profit. Since, Net profit total income-all expenses.
The chemical engineer must be aware of the many different types of costs involved in
manufacturing processes. Capital must be allocated for direct plant expenses, such as those for
raw materials, labor, and equipment. Besides direct expenses, many other indirect expenses are
incurred, and these must be included if a complete analysis of the total cost is to be obtained.
Some examples of these indirect expenses are administrative salaries, product distribution
costs, and costs of interplant communication.
10.2 Capital Investment
Before an industrial plant can be put into operation, a large sum of money must be supplied
to purchase and install the necessary machinery and equipment. Land and service facilities
must be obtained and the plant must be erected complete with all piping, controls, and service.
In addition, it is necessary to have money available for the payment of expenses involved in
the plant operation. The total capital required for the installation and working of a plant is called
total capital investment.
The capital needed to supply the necessary manufacturing and plant facilities is called the
fixed capital investment while that necessary for the operation of the plant is termed as working
capital investment. The fixed capital portion may be further subdivided into:
10.2.1 Manufacturing fixed capital
10.2.2 Non-manufacturing fixed capital investment.
Total capital investment = Fixed capital + Working capital
10.2.1 Fixed capital investment
Manufacturing fixed capital investment represents the capital necessary for the installed
process equipment. With all auxiliaries that are needed for the complete process operation.
Expenses for piping, instruments, installation, and foundation and site preparation are typical
examples of cost included in the manufacturing fixed capital investment. Fixed capital required

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for the construction overhead and for all plant components that are not directly related to the
process operation is designed as the non-manufacturing fixed capital investment.
A) Direct Cost
1) Purchased equipment cost
2) Purchased equipment installation
3) Insulation Cost
4) Instrumentation and Controls
5) Piping
6) Electrical installation
7) Building including services
8) Yard improvement
9) Service facilities
10) Land
B) Indirect Cost
1) Engineering and supervision
2) Construction expenses
3) Contingencies
4) Startup expenses
5) Contractor's fee
10.2.2 Working capital
The working capital for an industrial plant consists of the total amount of the money invested
in:
1) Raw materials and supplies earned in stock
2) The finished product in stock and semi-finished products in the process of being
manufactured
3) Accounts receivable.
4) Cash kept on hand for the monthly payment of operating expenses, such as salaries,
wages, and raw material purchases
5) Accounts payable
6) Taxes payable
The ratio of capital to total investment varies with different companies, but most chemical
plants use an initial working capital amounting to 10 to 20% of the total capital investment.

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10.3 Types of Capital Cost Estimates
An estimate of the capital investment for a process may vary from a predesign estimate
based on little information except for the size of the proposed project to a detailed estimate
prepared from complete drawings and specifications. Between these two extremes of capital
investment estimates, there can be numerous other estimates which vary in accuracy depending
upon the stage of development of the project. These estimates are called by a variety of names,
but the following five categories represent the accuracy range and resignations normally used
for design purposes.
1) Order of magnitude estimate (ratio estimated based on similar previous cost date,
probable accuracy of the estimate over ± 30%).
2) Study estimate (factored estimate) based on knowledge of major items of equipment;
probable accuracy of the estimate up to ± 30%.
3) Preliminary estimate (budget authorization estimate; scope estimate) based on sufficient
data to permit the estimate to be budgeted; probable accuracy of estimate within ± 20%.
4) Definitive estimate (project control estimate). It based on almost complete data but before
completion of drawings and specification, probable accuracy of estimate with in ± 10%.
5) Detailed estimate (contractor's estimate). It based on complete engineering drawings,
specifications, and site surveys; probable accuracy of estimate within ± 5%.
10.4 Cost Indexes
A cost index is merely an index value for a given point in time showing the cost that time
relative to certain base time. So, the present cost is estimates from cost index. it is an index
value for a given point in time showing the cost at that time relative to certain base time. if the
cost at any time in past is known, the equivalent cost at the present can be determined by
multiplying the original cost by the ratio of the present of index value to the index value
applicable when the original cost was obtained.
The cost index can be used to give a general estimate. Many different types of cost indexes
are published regularly. Some of these can be used for estimating equipment cost; other apply
specifically to labor, construction, materials or other specialized fields. The most common of
these indexes are the
1) Marshall and Swift all-industry and process industry equipment index.
2) Engineering news-record contraction cost index,
3) The Nelson-Farrar refinery construction index,
4) The chemical engineering plant cost index,

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 5) Other index includes monthly labor view.
10.5 Calculation Procedure
From cost indices
If the capacity of equipment found from literature (For which cost is known in past year) is
same as that of equipment considered in our case, then
Original cost X index value at present time
Present cost = (8.1)
𝑖𝑛𝑑𝑒𝑥 𝑣𝑎𝑙𝑢𝑒 𝑎𝑡 𝑡𝑖𝑚𝑒 𝑜𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑐𝑜𝑠𝑡 𝑤𝑎𝑠 𝑜𝑏𝑡𝑎𝑖𝑛𝑒𝑑

If the capacity of equipment found from literature (For which cost is known in past year) is
not same as that of equipment considered in our case, then multiply the result obtained in
equation (1) with the following factor Q.
𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑜𝑓 𝑒𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝑐𝑜𝑛𝑠𝑖𝑑𝑒𝑟𝑒𝑑
𝐴= (8.2)
𝑐𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑜𝑓 𝑒𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝑓𝑜𝑟 𝑤ℎ𝑖𝑐ℎ 𝑜𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑐𝑜𝑠𝑡 𝑤𝑎𝑠 𝑜𝑏𝑡𝑎𝑖𝑛𝑒𝑑

Q = (A) capacity index

Note: Capacity index is found in literature
10.6 Purchased Cost Estimation
Table 32: Purchased cost estimation
Sr. No Equipment Quantity Equipment cost (Rs) Total Cost(Rs)
1 Reactor 101 01 48284045 48284045
2 Reactor 102 01 18663001 18663001
3 Heat Exchanger 03 2110897 6332691
4 Distillation Column 03 122000000 366000000
5 Phase Separator 01 300000 300000
6 Compressor 01 762000 762000
7 Pump 02 3483447 6966894
8 Total 399072870.45

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10.7 Estimation for Total Capital Investment (Direct Cost)
Table 33: Direct Cost
Sr. No Direct Cost Percentage % Amount (Rs)
1 Equipment Cost E 399072870.45
2 Installation Cost 8 31925829.60
3 Instrumentation Cost 5 19953643.50
4 Piping Cost 8 31925829.60
5 Electrical system 4.5 17958279.17
6 Building cost 8 31925829.60
7 Yard improvement 3 11972186.11
8 Service facility 15 59860930.57
9 Land 1.5 5986093.06
10 Total 610,581,491.66
10.8 Indirect Cost
Table 34: Indirect Cost
Sr. No Indirect Cost Percentage % Amount (Rs)
1 Engineering & supervision 9 35916558.34
2 Legal expenses 7 27935100.93
3 Construction cost 1.5 5986093.05
4 Contractor’s fee 2.5 9976821.76
5 Contingency 5 19953643.52
Total 99,768,217.60

10.9 Fixed Capital Investment

Fixed capital investment = Direct cost + indirect cost
= 610,581,491.66 + 99,768,217.60
= 710,349,708 Rs
10.10 Working capital Investment
15% of FCI = 106552457.7 Rs
Total capital investment = fixed capital investment + working capital investment
= 816902165.7 Rs

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 Chapter 11: Conclusion

Phenol is the precursor to many materials and a very useful compound. The global phenol
market predicts to witness a robust CAGR of 4.9% from 2024 to 2030. The cumene process
segment should be worth almost US$30 billion in 2021. The plant is to be built in Pakistan and
chosen place which is Port Qasim is scored using Scoring Method to choose for the plant site.
The Block Flow Diagram (BFD) and Process Flow Diagram (PFD) is made based on the
selected process of production. The process chosen for the plant operation is production of
phenol from cumene peroxide using cumene as the main raw material. The equipment cost is
predicted from the sizing which revealed the bare module cost of the equipment yielding to
approximately 610,581,491.66 Rs. The total capital investment (TCI) year is estimated using
the Equipment Module Approach. The plant is estimated to produced 25 metric ton per day of
phenol.

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