9. Optimization: Absorber Section
• Two sensitivity
studies carried
out on the
absorber column
1. Recycle
stream split
fraction
2. Fresh water
stream
flowrate
14. Optimization: Sodium Bicarbonate Tower
• Conversion of CO2 in off gas to
sodium bicarbonate
• Economically unfeasible
Component Cost ($/hr)
NaOH Caustic -200.00
Sodium Bicarbonate 76.20
Carbon Dioxide 14.81
Delta -108.99
15. Major Safety Concerns
● Flammability
○ Vapors below LEL
○ Potential leaks
○ Tank farm
● Tank Design
○ Corrosion
○ Vapor containment
○ Operations
● Spill Containment
● Process Safety Management
Figure 5: Standard Floating Roof Tank Design - Courtesy of Anson Industry
16. Major Environmental Concerns
● Off gas
○ Composition: CO, CO2, Residual Methanol & Formaldehyde
○ Flaring
○ Considered Optimization
● Waste Heat Optimization
● High Water Intensity =
𝑀𝑎𝑠𝑠 𝑜𝑓 𝐹𝑟𝑒𝑠ℎ 𝑊𝑎𝑡𝑒𝑟 𝐶𝑜𝑛𝑠𝑢𝑚𝑒𝑑 (𝑘𝑔)
𝑂𝑢𝑡𝑝𝑢𝑡
● High Greenhouse Gases Intensity=
𝐶𝑂2 𝐸𝑞𝑢𝑖𝑣𝑎𝑙𝑒𝑛𝑡 𝑓𝑟𝑜𝑚 𝑓𝑢𝑒𝑙𝑠,𝐸𝑚𝑚𝑖𝑠𝑠𝑖𝑜𝑛𝑠 𝑎𝑛𝑑 𝑊𝑎𝑠𝑡𝑒 (𝑘𝑔)
𝑂𝑢𝑡𝑝𝑢𝑡
17. Economic Feasibility Analysis
Economic Information per annum
Revenue from Sales $4,489,586,264
CRM (Raw Materials Costs) $65,919,832
CUT (Cost of Utilities) $5,080,000
CWT (Waste Treatment Costs) $4,038,350
COL (Cost of Operating Labor) $20,100,000
Profit (Revenue - Costs) $4,394,448,083
• Base Case: Formalin Price of $18.5 per kg
• Annual profit from Formalin sales: $4.39 billion
18. Manufacturing and Fixed Assets Costs
• Total Fixed equipment costs add up to $171,402,200
• Total manufacturing cost: $261 million
Equipment Total Equipment Cost Utility Used
Drives $ 5,778,000 Electricity
Air Blowers $ 5,900,000 Electricity
Evaporators $ 4,268,000 Low-Pressure Steam
Waste Heat Boilers $ 442,200 Cooling Water
Fired Heaters $ 7,779,000 Natural Gas
Fin-Fan Coolers $ 245,900 Electricity
Pumps $ 3,206,000 Electricity
Reactors $ 1,210,000 Natural Gas
Storage Vessels $ 151,760,000 N/A
Absorber Columns $ 730,400 Water
20. Discounted Cash Flow Analysis
• Determines Profitability
• Using a 10 yr. MACR’s Depreciation Schedule
• Avg IRR for launching a product in chemical industry: 13 −18% [2]
Discounted Profitability Criterion
Net Present Value (millions) 12,918
Discounted Cash Flow Rate of Return 72.35%
Discounted Payback Period (years) 0.5
21. Economic Sensitivity and Forecast
• Methanol (main raw material) price/gal fluctuates monthly
• Study accounts for future Methanol price fluctuation
24. Conclusion
• 11 identical production trains will be constructed
• Total fixed capital investment: $812 million
• Payback time of initial investment: 0.5 years
• Annual profit: $4.4 billion
• Recommendation:
Profitable
Feasible
Environmental Impact
Detailed Design and Potential Implementation
(not the worst)
25. References
1. A.C. Papes Filho, Simulation and optimization of a silver formaldehyde reactor, using
artificial intelligence techniques, PhD Thesis (in English), UNICAMP – University of
Campinas, Brazil, 2007.
2. M. Miremadi, C. Musso, and J. Oxgaard, “Chemical innovation: An investment for the ages.”
[Online].Available:https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/c
hemicals/pdfs/chemical_innovation_an_investment_for_the_ages.ashx. [Accessed: 09-
Dec-2018].
3. Industrial Production of Formaldehyde Using Polycrystalline Silver Catalyst, Graeme J.
Millar and Mary Collins, Industrial & Engineering Chemistry Research 2017 56 (33), 9247-
9265, DOI:10.1021/acs.iecr.7b02388
4. “Methanex Monthly Average Regional Posted Contract Price History.” Methanex, 30 Jan.
2018. https://www.methanex.com/sites/default/files/methanol-
price/MxAvgPrice_Jan%2030%2C%202018.pdf
5. Industrial Production of Formaldehyde Using Polycrystalline Silver Catalyst, Graeme J.
Millar and Mary Collins, Industrial & Engineering Chemistry Research 2017 56 (33), 9247-
9265, DOI: 10.1021/acs.iecr.7b02388
6. Zhang, Luoping. (2018). Formaldehyde - Exposure, Toxicity and Health Effects - 1.5.1
Production Capacity and Output. Royal Society of Chemistry. Retrieved from
https://app.knovel.com/hotlink/pdf/id:kt011OGQY4/formaldehyde-exposure/production-
capacity-output
Zhang, Luoping. (2018). Formaldehyde - Exposure, Toxicity and Health Effects - 1.5.1 Production Capacity and Output. Royal Society of Chemistry. Retrieved from https://app.knovel.com/hotlink/pdf/id:kt011OGQY4/formaldehyde-exposure/production-capacity-output
[12] A.C. Papes Filho, Simulation and optimization of a silver formaldehyde reactor, using artificial intelligence techniques, PhD Thesis (in English), UNICAMP – University of Campinas, Brazil, 2007.
[13] Industrial Production of Formaldehyde Using Polycrystalline Silver Catalyst, Graeme J. Millar and Mary Collins, Industrial & Engineering Chemistry Research 2017 56 (33), 9247-9265, DOI: 10.1021/acs.iecr.7b02388
Desired reactions: 1 and 2
Use of WHB to avoid rxns 3 and 4
Overall heat of reaction is exothermic helping reduce preheater duty
No reaction kinetic equations in research – must use selectivity and conversion data
Research
ANN – computing system that takes inputs (experimental data)