Chemical Process Economicsdoc

Chemical Process Economicsdoc - Chemical Process Economics...

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Chemical Process Economics 1 - Introduction Economic considerations are an integral part of plant design projects at all stages in the process: Estimating the cost of equipment after it is designed and sized. Estimating operating costs in order to optimize a design by examining equipment cost – operating cost tradeoffs. Pulling together all of the operating costs and economic factors to assess the profitability of a project. Assessing the impact of uncertainty in the data by doing a sensitivity analysis. The ChemEcon system provides an integrated process for carrying out these tasks in a plant design course such as CHEE470. It can also be used to handle the economic aspects of design assignments in engineering science courses. The simplified techniques selected for the package are those that are appropriate for a preliminary venture estimate, rather than a committed project. That is, they are more likely to be found in a R&D department than in a Design Engineering group. Since the system was designed to teach concepts, the estimates made are approximate, and should not be used to develop quantitative estimates for real projects. The techniques used in ChemEcon are based of the reference text for CHEE470: Analysis, Synthesis and design of Chemical Processes, Second Edition Turton, Baillie, Whiting, Shaelwitz Prentice Hall, 2003 It is referred to as Turton in the following notes. In particular, see the chapters on” Estimation of Capital Costs Estimation of Manufacturing Costs Engineering Economic Analysis Profitability Analysis Cost Equations for the CAPCOST program CHEE470 is set up to emulate a real-world project in consisting of the following steps: e82fb194626afc11e82d1ac9c2990cb74e679c33.doc
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- 2 - Set objectives (this is done before the course starts) Gather needed data (some of this is done at the start of the course, most has been packaged with the objectives) Use simulation software to develop a conceptual design (essentially, this is the process flow diagram) Size the equipment (number of tubes in a heat exchanger, diameter and height of a vessel, etc.) Cost the equipment and extend that to a plant capital cost Estimate operating costs Assess the profitability of the project Assess the reliability of the profitability assessment Submit a report with a go - no go recommendation To assist these steps ChemEcon is implemented as an Excel spreadsheet and carries out a number of tasks: During the sizing step, accumulate in one place the pertinent equipment design information for the all the equipment in the project Estimate the cost of each piece of equipment (pumps, heat exchangers, etc.) Estimate utility and labour costs Accept specifications for other operating costs and revenues such as raw materials and sales revenue Accept specifications for economic parameters such as working capital, taxes, and discount rate Estimate, as percentages of costs previously defined, miscellaneous other costs
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Chemical Process Economicsdoc - Chemical Process Economics...

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