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Technology Economics: Ethylene via Ethanol Dehydration
 

Technology Economics: Ethylene via Ethanol Dehydration

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Intratec presents a techno-economic study on a mature chemical process for the production of ethylene via ethylene dehydration, similar to that developed by Chematur and Petron's. Besides a full ...

Intratec presents a techno-economic study on a mature chemical process for the production of ethylene via ethylene dehydration, similar to that developed by Chematur and Petron's. Besides a full technology description, an economic analysis is presented for a plant located in the U. S. Gulf and both capital and operating costs are also presented for a plant located in Brazil.

Know more at http://www.intratec.us/publications/ethylene-via-ethanol-dehydration

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    Technology Economics: Ethylene via Ethanol Dehydration Technology Economics: Ethylene via Ethanol Dehydration Document Transcript

    • Ethylene via Ethanol Dehydration
    • #TEC009A Technology Economics Ethylene via Ethanol Dehydration 2013 Abstract One of the most important petroleum-derived products, ethylene is known as a key building block for the petrochemical industry. Ethylene is most frequently produced via steam cracking of petroleum-based feedstock. However, rising oil prices coupled with global concerns about sustainability and global warming have motivated research into ethylene manufacture from renewable sources. In this context, green alternatives are the world’s focus of attention. Among them, fermentation-derived ethanol has become a successful commodity that has been largely used as fuel and as raw material for renewable ethylene production, presenting the primary advantage of being made from CO2 removed from the atmosphere, reducing greenhouse gas lifetime emissions from the ethylene manufacture process. In Brazil, Braskem SA already produces ethylene from bioethanol This study provides a review of the production of ethylene via ethanol dehydration. Included in the analysis is an overview of the technology and economics of a method similar to the Chematur and Petron processes. Both the capital investment and the operating costs are presented for plants constructed on the US Gulf Coast and in Brazil. The economic analysis presented in this report is based on a plant that is partially integrated with a green polyethylene complex and capable of producing 300 kta of polymer-grade ethylene. The estimated CAPEX for such a plant on the US Gulf Coast is about USD 260 million, while in Brazil, it is about USD 345 million. Additionally, in order to have a profitable venture, this analysis considered a premium for green ethylene of 30% over conventional ethylene leading to ethylene sales prices of about USD 1,580 and 2,030 per ton in US and Brazil, respectively. Copyrights © 2013 by Intratec Solutions LLC. All rights reserved. Printed in the United States of America.
    • This Publication Was Not a Publication… … It was actually an advisory service ordered by one of our clients, now disclosed to our readership with his consent. How Readers Benefit? From academics to industry executives, our readers benefit by gaining access to real consulting cases, released for the first time to the market as one-of-a-kind publications at affordable prices. It results from the innovative for leading companies in the chemical and allied sectors who have asked for more affordable and reliable studies to plan their investments. Through our university discount policy, students and faculty members will be able to become familiar with challenges faced by the industry for a price similar to a usual textbook. Intratec’s strategy works by charging clients lower-than-market fees to conduct a technology advisory service with the understanding that such studies may be released as publications. How Clients Benefit? Available through well-known sales channels such as Amazon, Google Books and HP MagCloud, our publications can be purchased by any interested reader. In short, our clients receive traditionally expensive studies for a fraction of the cost, and our readers get unprecedented access to real professional publications at steep discounts. While traditional consulting firms charge their clients hundreds of thousands of dollars, Intratec offers, from the convenience of a web browser, a much better advisory experience for a price 80% lower than market. What is Technology Economics? Advisory services targeting investments on new chemical units, answering: What is the process? What equipment is necessary? What are the raw materials and utilities consumptions? What are the operating and capital expenses? In which locations is this technology more profitable? Each new assignment comprises of a study structured like this publication, valuable spreadsheets and broad support. ii
    • Consulting as Publications at a Glance Reshaping the Advisory Industry 1) Our publications are accessed and attested to by a huge audience . . . 2) . . . including potential clients who like the publication structure . . . 3) . . . and order advisory services based on the same format. 4) If our clients agree, their advisory services are disclosed as publications. Everyone Benefits from Cost Sharing & Online Experience 1) Readers purchase our publications at steep discounts online . . . 4) . . . because they were actually consulting cases . . . 3) . . . requested online by the initial client . . . 2) . . . who shared the costs with the readers. For a better understanding of our innovative concept, please visit www.intratec.us. iii
    • Check Intratec’s Related Study Opportunities Clearly identify the economics behind leading companies’ technology development efforts and the feasibility of emerging and commercial chemical processes is the first step for major investment decisions and planning activities. Keep you and your organization well informed by understanding in an unbiased manner: 1) The Research Economics potential behind BP Chemical Bets on Reactive Distillation to Reduce Ethanol Dehydration Plants Capital Costs, 2) The Improvement Economics proposed by IFP and Total Chemical to Save Energy on Traditional Ethylene-to-Ethanol Dehydration Units, 3) The Technology Economics of Braskem’s Green Ethylene Production from Ethanol, 4) The Research Economics behind Dow Chemical’s possible Ethanol Dehydration Technology, 5) The Technology Economics hidden on Scientific Design Approach to Produce Ethylene Glycol from Bio-Ethanol, Or any other topic of your interest. The last appendix of this study presents in more details the opportunities listed above. Check Intratec’s Advisory Services online at www.intratec.us: A) Choose the advisory service of your interest: Technology, Improvement or Research Economics. B) Select the pricing and payment options that best fit your budget. C) Submit your order. iv
    • Terms & Conditions Information, analyses and/or models herein presented are prepared on the basis of publicly available information and non-confidential information disclosed by third parties. Third parties, including, but not limited to technology licensors, trade associations or marketplace participants, may have provided some of the information on which the analyses or data are based. Intratec Solutions LLC (known as “Intratec”) does not believe that such information will contain any confidential information but cannot provide any assurance that any third party may, from time to time, claim a confidential obligation to such information. The aforesaid information, analyses and models are developed independently by Intratec and, as such, are the opinion of Intratec and do not represent the point of view of any third parties nor imply in any way that they have been approved or otherwise authorized by third parties that are mentioned in this publication. The application of the solutions presented in this publication without license from the owners infringes on the intellectual property rights of the owners, including patent rights, trademark rights, and rights to trade secrets and proprietary information. Intratec conducts analyses and prepares publications and models for readers in conformance with generally accepted professional standards. Although the statements in this publication are derived from or based on several sources that Intratec believe to be reliable, Intratec does not guarantee their accuracy, reliability, or quality; any such information, or resulting analyses, may be incomplete, inaccurate or condensed. All estimates included in this publication are subject to change without notice. This publication is for informational purposes only and is not intended as any recommendation of investment. Reader agrees it will not, without prior written consent of Intratec, represent, directly or indirectly, that its products have been approved or endorsed by the other parties. In no event shall Intratec, its employees, representatives, resellers or distributors be liable to readers or any other person or entity for any direct, indirect, special, exemplary, punitive, or consequential damages, including lost profits, based on breach of warranty, contract, negligence, strict liability or otherwise, arising from the use of this publication, whether or not they or it had any knowledge, actual or constructive, that such damages might be incurred. Reader shall indemnify and hold harmless Intratec and its resellers, representatives, distributors, and information providers against any claim, damages, loss, liability or expense arising out of reader’s use of the publication in any way contrary to the present terms and conditions. Intratec publications are the product of extensive work and original research and are protected by international copyright law. Products supplied as printed reports or books should not be copied but can be included in schools, universities or corporate libraries and circulated to colleagues to the extended permitted by copyright law. Products supplied digitally are licensed, not sold. The purchaser is responsible for ensuring that license terms are adhered to at all times. PDF documents may be supplied watermarked with the customer’s name, email and/or company. Digital documents are supplied with an enterprise license and can be shared by all employees and on-site contractors of a single organization. Members of the organization may make such copies as are necessary to facilitate this distribution. An enterprise license does not permit sharing with external organizations. Reader agrees that Intratec retains all rights, title and interest, including copyright and other proprietary rights, in this publication and all material, including but not limited to text, images, and other multimedia data, provided or made available as part of this publication. 1
    • Contents About this Study...................................................................................................................................................................8 Object of Study.....................................................................................................................................................................................................................8 Analyses Performed ...........................................................................................................................................................................................................8 Construction Scenarios ..............................................................................................................................................................................................................8 Location Basis ...................................................................................................................................................................................................................................9 Design Conditions ..............................................................................................................................................................................................................9 Study Background ............................................................................................................................................................ 10 About Ethylene..................................................................................................................................................................................................................10 Introduction.................................................................................................................................................................................................................................... 10 Applications.................................................................................................................................................................................................................................... 10 Manufacturing Alternatives .......................................................................................................................................................................................10 Licensor(s) & Historical Aspects ...............................................................................................................................................................................12 Technical Analysis ............................................................................................................................................................. 13 Chemistry ..............................................................................................................................................................................................................................13 Raw Material ........................................................................................................................................................................................................................13 Technology Overview ...................................................................................................................................................................................................14 Detailed Process Description & Conceptual Flow Diagram...................................................................................................................15 Area 100: Reaction...................................................................................................................................................................................................................... 15 Area 200: Quench, Compression, Caustic Washing & Drying .........................................................................................................................15 Area 300: Purification................................................................................................................................................................................................................ 15 Key Consumptions ..................................................................................................................................................................................................................... 16 Technical Assumptions ...........................................................................................................................................................................................................16 Labor Requirements.................................................................................................................................................................................................................. 16 ISBL Major Equipment List ..........................................................................................................................................................................................19 OSBL Major Equipment List .......................................................................................................................................................................................21 Other Process Remarks .................................................................................................................................................................................................21 Technology Comparison........................................................................................................................................................................................................ 21 Economic Analysis ............................................................................................................................................................ 23 Project Implementation Schedule.........................................................................................................................................................................24 Capital Expenditures.......................................................................................................................................................................................................24 2
    • Fixed Investment......................................................................................................................................................................................................................... 24 Working Capital............................................................................................................................................................................................................................ 27 Other Capital Expenses ........................................................................................................................................................................................................... 27 Total Capital Expenses ............................................................................................................................................................................................................. 27 Operational Expenditures ...........................................................................................................................................................................................27 Manufacturing Costs................................................................................................................................................................................................................. 27 Historical Analysis........................................................................................................................................................................................................................ 28 Economic Datasheet ......................................................................................................................................................................................................28 Regional Comparison & Economic Discussion....................................................................................................... 31 Regional Comparison ....................................................................................................................................................................................................31 Capital Expenses.......................................................................................................................................................................................................................... 31 Operational Expenditures......................................................................................................................................................................................................31 Economic Datasheet................................................................................................................................................................................................................. 31 Economic Discussion .....................................................................................................................................................................................................32 References............................................................................................................................................................................ 35 Acronyms, Legends & Observations .......................................................................................................................... 36 Technology Economics Methodology ...................................................................................................................... 37 Introduction.........................................................................................................................................................................................................................37 Workflow................................................................................................................................................................................................................................37 Capital & Operating Cost Estimates......................................................................................................................................................................39 ISBL Investment............................................................................................................................................................................................................................ 39 OSBL Investment......................................................................................................................................................................................................................... 39 Working Capital............................................................................................................................................................................................................................ 40 Start-up Expenses ....................................................................................................................................................................................................................... 40 Other Capital Expenses ........................................................................................................................................................................................................... 41 Manufacturing Costs................................................................................................................................................................................................................. 41 Contingencies ....................................................................................................................................................................................................................41 Accuracy of Economic Estimates............................................................................................................................................................................42 Location Factor..................................................................................................................................................................................................................42 Appendix A. Mass Balance & Streams Properties.................................................................................................. 44 Appendix B. Utilities Consumption Breakdown .................................................................................................... 49 Appendix C. Process Carbon Footprint..................................................................................................................... 50 Appendix D. Equipment Detailed List & Sizing...................................................................................................... 51 Appendix E. Detailed Capital Expenses .................................................................................................................... 58 3
    • Direct Costs Breakdown ...............................................................................................................................................................................................58 Indirect Costs Breakdown ...........................................................................................................................................................................................59 Appendix F. Economic Assumptions ......................................................................................................................... 60 Capital Expenditures.......................................................................................................................................................................................................60 Construction Location Factors............................................................................................................................................................................................60 Working Capital............................................................................................................................................................................................................................ 60 Other Capital Expenses ........................................................................................................................................................................................................... 60 Operational Expenditures ...........................................................................................................................................................................................61 Fixed Costs ...................................................................................................................................................................................................................................... 61 Depreciation................................................................................................................................................................................................................................... 61 EBITDA Margins Comparison...............................................................................................................................................................................................61 Appendix G. Released Publications............................................................................................................................ 62 Appendix H. Technology Economics Form Submitted by Client.................................................................... 63 Appendix I. Related Study Opportunities ................................................................................................................ 68 4
    • List of Tables Table 1 – Construction Scenarios Assumptions (Based on Degree of Integration) ...................................................................................9 Table 2 – Location & Pricing Basis..............................................................................................................................................................................................9 Table 3 – General Design Assumptions.................................................................................................................................................................................9 Table 4 – Major Ethylene Consumers...................................................................................................................................................................................10 Table 5 – Raw Materials & Utilities Consumption (per ton of Product)...........................................................................................................16 Table 6 – Design & Simulation Assumptions...................................................................................................................................................................16 Table 7 – Labor Requirements for a Typical Plant ........................................................................................................................................................16 Table 8 – Main Streams Operating Conditions and Composition .....................................................................................................................19 Table 9 – Inside Battery Limits Major Equipment List ................................................................................................................................................19 Table 10 – Outside Battery Limits Major Equipment List .........................................................................................................................................22 Table 11 – Base Case General Assumptions.....................................................................................................................................................................23 Table 12 – Bare Equipment Cost per Area (USD Thousands)................................................................................................................................24 Table 13 – Total Fixed Investment Breakdown (USD Thousands)......................................................................................................................24 Table 14 – Working Capital (USD Million)..........................................................................................................................................................................27 Table 15 – Other Capital Expenses (USD Million)..........................................................................................................................................................27 Table 16 – CAPEX (USD Million)...............................................................................................................................................................................................27 Table 17 – Manufacturing Fixed Cost (USD/ton) ..........................................................................................................................................................28 Table 18 – Manufacturing Variable Cost (USD/ton) ....................................................................................................................................................28 Table 19 – OPEX (USD/ton).........................................................................................................................................................................................................28 Table 20 – Technology Economics Datasheet: Ethylene via Ethanol Dehydration at US Gulf .........................................................30 Table 21 – Technology Economics Datasheet: Ethylene via Ethanol Dehydration in Brazil ..............................................................34 Table 22 – Project Contingency...............................................................................................................................................................................................41 Table 23 – Criteria Description..................................................................................................................................................................................................41 Table 24 – Accuracy of Economic Estimates ...................................................................................................................................................................42 Table 25 – Detailed Material Balance and Stream Properties................................................................................................................................44 Table 26 – Utilities Consumption Breakdown.................................................................................................................................................................49 Table 27 – Assumptions for CO2e Emissions Calculation........................................................................................................................................50 Table 28 – CO2e Emissions (ton/ton prod.)......................................................................................................................................................................50 Table 29 – Agitators.........................................................................................................................................................................................................................51 Table 30 – Compressors................................................................................................................................................................................................................51 Table 31 – Heat Exchangers .......................................................................................................................................................................................................52 Table 32 – Pumps .............................................................................................................................................................................................................................55 5
    • Table 33 – Columns.........................................................................................................................................................................................................................56 Table 34 – Utilities Supply ...........................................................................................................................................................................................................56 Table 35 – Vessels & Tanks...........................................................................................................................................................................................................56 Table 36 – Indirect Costs Breakdown for the Base Case (USD Thousands)...................................................................................................59 Table 37 – Detailed Construction Location Factor ......................................................................................................................................................60 Table 38 – Working Capital Assumptions for Base Case...........................................................................................................................................60 Table 39 – Other Capital Expenses Assumptions for Base Case ..........................................................................................................................60 Table 40 – Other Fixed Cost Assumptions ........................................................................................................................................................................61 Table 41 – Depreciation Value & Assumptions ..............................................................................................................................................................61 6
    • List of Figures Figure 1 – Construction Scenarios Assumptions (Based on Degree of Integrations) ...............................................................................8 Figure 2 – Ethylene from Multiple Sources.......................................................................................................................................................................11 Figure 3 – Ethanol Dehydration Reaction Network....................................................................................................................................................13 Figure 4 – Process Block Flow Diagram ..............................................................................................................................................................................14 Figure 5 – Inside Battery Limits Conceptual Process Flow Diagram.................................................................................................................17 Figure 6 – Project Implementation Schedule .................................................................................................................................................................23 Figure 7 – Total Direct Cost of Different Integration Scenarios (USD Thousands)...................................................................................26 Figure 8 – Total Fixed Investment of Different Integration Scenarios (USD Thousands).....................................................................26 Figure 9 – OPEX and Product Sales History (USD/ton)..............................................................................................................................................29 Figure 10 – EBITDA Margin & IP Indicators History Comparison .........................................................................................................................29 Figure 11 – CAPEX per Location (USD Million)...............................................................................................................................................................31 Figure 12 – Operating Costs Breakdown per Location (USD/ton).....................................................................................................................32 Figure 13 – Methodology Flowchart....................................................................................................................................................................................38 Figure 14 – Location Factor Composition.........................................................................................................................................................................42 Figure 15 – ISBL Direct Costs Breakdown by Equipment Type for Base Case.............................................................................................58 Figure 16 – OSBL Direct Costs Breakdown by Equipment Type for Base Case ..........................................................................................58 Figure 17 – Historical EBITDA Margins Regional Comparison ..............................................................................................................................61 7
    • About this Study This study follows the same pattern as all Technology Economics studies developed by Intratec and is based on the same rigorous methodology and well-defined structure (chapters, type of tables and charts, flow sheets, etc.). Analyses Performed This chapter summarizes the set of information that served as input to develop the current technology evaluation. All required data were provided through the filling of the Technology Economics Form available at Intratec’s website. The economic analysis is based on the construction of a plant partially integrated with a green polyethylene complex, in which ethanol feedstock is externally provided and ethylene product is consumed by the nearby polyethylene unit. Therefore, no storage for product is required. Additionally, all utilities are supplied from within the new plant. Construction Scenarios You may check the original form in the “Appendix H. Technology Economics Form Submitted by Client”. However, since the Outside Battery Limits (OSBL) requirements– storage and utilities supply facilities – significantly impact the capital cost estimates for a new venture, they may play a decisive role in the decision as to whether or not to invest. Thus, this study also performs an analysis of the OSBL facilities impact on the capital costs. Three distinct OSBL configurations are compared. Those scenarios are summarized in Figure 1and Table 1. Object of Study This assignment assesses the economic feasibility of an industrial unit for ethylene production via ethanol dehydration implementing technology similar to that of Chematur and Petron processes. The current assessment is based on economic data gathered on Q4 2012 and a chemical plant’s nominal capacity of 300 kta (thousand metric tons per year). Figure 1 – Construction Scenarios Assumptions (Based on Degree of Integrations) Fully Integrated Petrochemical Complex Products Storage Products Consumer Products Consumer ISBL Unit ISBL Unit ISBL Unit Raw Materials Storage Raw Materials Storage Raw Materials Provider Grassroots unit 8 Partially Integrated Petrochemical Complex Intratec | About this Study Non-Integrated Unit is part of a Petrochemical Complex Most infrastructure is already installed Source: Intratec – www.intratec.us
    • Table 1 – Construction Scenarios Assumptions (Based on Degree of Integration) Storage Capacity (Base Case for Evaluation) Feedstock & Chemicals 20 days of operation 20 days of operation Not included End-products & By-products 20 days of operation Not included Not included All All Only refrigeration units Utility Facilities Included Control room, labs, gate house, Support & Auxiliary Facilities maintenance shops, warehouses, offices, change house, cafeteria, parking lot Control room, labs, maintenance shops, Control room and labs warehouses Source: Intratec – www.intratec.us Location Basis Table 2 – Location & Pricing Basis Regional specific conditions influence both construction and operating costs. This study compares the economic performance of two identical plants operating in different locations: the US Gulf Coast and Brazil. The assumptions that distinguish the two regions analyzed in this study are provided in Table 2. Design Conditions The process analysis is based on rigorous simulation models developed on Aspentech Aspen Plus and Hysys, which support the design of the chemical process, equipment and OSBL facilities. The design assumptions employed are depicted in Table 3. Table 3 – General Design Assumptions Cooling water temperature 24 °C Cooling water range 11 °C Steam (Low Pressure) 7 Bar abs Refrigerant (Propylene) -45 °C Source: Intratec – www.intratec.us Intratec | About this Study Source: Intratec – www.intratec.us 9
    • Study Background About Ethylene Introduction Ethylene is an unsaturated organic compound with the chemical formula C2H4. It has one double bond and is the simplest member of the alkene class of hydrocarbons. Other important products derived from ethylene are ethylene oxide, an intermediate to ethylene glycol synthesis, ethylene dichloride, styrene, and vinyl acetate. With such a diverse range of derivative products, ethylene demand is very sensitive to economic cycles. Therefore, it is often used as a reference in the performance evaluation of the petrochemical industry. Table 4 – Major Ethylene Consumers Ethylene 2D structure Ethylene is primarily produced by the pyrolysis of hydrocarbons and by recovery from some refinery products. It can also be produced in other reactions, for example, in ethanol dehydration or methanol-to-olefins plants. Ethylene is one of the largest volume petrochemicals worldwide and the first in natural abundance, being a leading industrial chemical intermediate that serves as one of the building blocks for an array of chemical and plastic products. Polyethylene Ethylene oxide Ethylene glycol Ethylene dichloride Styrene Vinyl acetate Commercial ethylene is a colorless, low-boiling, flammable gas with a sweet odor. It is commercially traded in polymer grade (min. 99.9% of purity). Adhesives, packaging, bags, piping Ethylene glycol, ethoxylates (non-ionic surfactants) Polyester, polyethylene terephthalate, automotive antifreeze Vinyl chloride (monomer for PVC) Polystyrene, ABS, rubbers, plastics, fiberglass, pipes Polyvinyl acetate, emulsion polymers, resins Source: Intratec – www.intratec.us 10 Manufacturing Alternatives Commercial ethylene major application in the chemical industry is as a raw material for the production of polyethylene and other organic chemicals that are mainly utilized in consumable end uses, especially in packaging. Intratec | Study Background Applications Ethylene is mainly produced by steam cracking of oil fractions, as NGL, and LPG, but, mainly as naphtha. Additionally, research efforts have been made to create alternatives to manufacture less energy-consuming oilindependent ethylene. However, researchers have not yet found better options to the cracking process. The principal use of ethylene is in the manufacture of plastics such as polyethylene, which accounts for about 60% of the global ethylene demand. The main class of polyethylene produced in the world is high density polyethylene (HDPE), which is responsible for the consumption of a third of the available ethylene, followed by low density (LDPE) and linear low density (LLDPE) varieties. In steam cracking, the oil fraction diluted with steam is fed into a radiant tube reactor, where fire is externally provided in order to supply the energy required for the reaction completion. This process enables the utilization of different types of coils, radiation tubes, and furnaces. The main difference between thermal and steam cracking is that the latter uses high temperatures and low pressures, favoring olefins production. In this sense, dilution of the
    • feed stream with steam reduces the partial pressure of reactants and helps to avoid coke formation in the reaction system, which is also prevented by slow residence times. As the reaction occurs within this furnace, various mechanisms are assumed to represent the process. In the very beginning (with a low conversion rate), a free-radical decomposition is assumed for the system. Once the conversion increases, the more acceptable mechanism includes condensation reactions to form cyclic components. Another technique is also being employed: Methanol-to-Olefins. A group of technologies that first converts synthesis gas (syngas) to methanol, and then converts the methanol to ethylene and/or propylene. The process also produces water as a byproduct. Synthesis gas is produced from the reformation of natural gas or by the steam-induced reformation of petroleum products such as naphtha, or by gasification of coal. A large amount of methanol is required to make a world-scale ethylene and/or propylene plant. Figure 2 – Ethylene from Multiple Sources Naphtha NGL LPG Steam Cracker (Green) Ethanol Ethanol Dehydration Methanol PG Ethylene MTO/MTP Intratec | Study Background Source: Intratec – www.intratec.us 11
    • Licensor(s) & Historical Aspects The continuous rise in petroleum prices, in addition to the increase in global concerns about sustainability and global warming, has led the chemical industry to innovate in the development of production routes utilizing sources other than oil. The thermal cracking of oil fractions, which was further improved to the steam cracking, has been practiced since the beginning of the 20th century. Currently, the recent discoveries of the shale gas and its exploitation in the US and other countries are playing a key role in the shift of natural gas as a feed resource to olefins production. Also, the recent demands of the market for renewable chemicals have led to several initiatives towards the production of green ethylene. In this context of environmentally friendly production, the recent advances of biotechnology in developing new, genetically modified microorganisms capable of fermenting sugar (from sugarcane, corn starch, sugar-beet, and agricultural residues) have enabled the production of green ethanol in large quantities at low cost. Therefore, green ethylene has become an option in countries where there is a lack of oil resources or an overabundance of fermentable renewable sugars. Brazil is an example of country that presents favorable conditions for culturing sugarcane and producing fermentationderived ethanol. Not for coincidence, the first commercial scale green ethylene plant in the world was erected in the country by Braskem SA. It is capable of producing 200,000 metric tons of ethylene per year. A joint venture formed by Dow & Mitsui has plans to construct a unit in the near future. The main ethanol dehydration technologies were developed by the following companies: Intratec | Study Background Braskem 12 Chematur Technologies Petron Scientech Scientific Design However, Braskem does not license its technology to third parties. Dow Chemicals has also been researching the ethylene production by ethanol dehydration. The main differences between those technologies center on the reactor and furnaces design, the catalysts’ type and the purification method (e.g., CO removal through stripping or selective oxidation).
    • Technical Analysis country must have substantial agricultural production and a raw material surplus (e.g., sugar or starch). Chemistry Ethanol dehydration equilibrium reaction is carried out in the presence of a metallic catalyst such as activated aluminum or zinc. The following equation shows the reaction: Ethanol Ethylene Water About 99 wt% of ethanol is converted to ethylene. The ethylene conversion is favored by high temperatures and low pressures. However by relying on the sugar and starch content of food crops, ethanol production competes with food production. Therefore, recent research focus on the use of low-value biomass, often deemed “waste”, to produce ethanol. That low-value biomass is lignocellulosic material found in wood, sugarcane bagasse or grain crop stubbles. Lignocellulosic biomass could represent a new fermentable raw material if hydrolysis of this material is performed. Technological advances in this reaction still need to be achieved in order to make it economically feasible and render this usage of the agricultural residues competitive with respect to others, such as heat generation by burn. Since the dehydration reaction is endothermic, temperature control plays a key role in ethylene yields since both high or low operating temperatures can provoke side reactions that generate undesirable by-products, such as aldehydes at high temperatures and ethers at low temperatures, leading to an increase on purification costs. Being one of the world major ethanol producers, the US bases their fermentation process on corn starch, which requires a previous hydrolysis step. Other tropical countries, as Brazil and India, use sugarcane juice and molasses respectively as raw material for the fermentation. As a result, their processes tend to be less expensive as no hydrolysis step is necessary. In order to avoid by-products formation and maximize ethylene formation, reaction operating temperatures must range from 300°C to 500°C, while absolute pressures should range from 5 to 8 bar. Therefore, the process is based on four reaction steps which operate with a partial conversion rate to avoid high temperature drops in each pass. Thus, the completion of the reaction is only reached at the last reactor. Further, since the 1970’s, the Brazilian governmental program Pro-Alcohol has promoted the production of ethanol. This mandate has given Brazilian researchers the opportunity to develop new technologies and dominate the ethanol fermentation process. In this context, Brazilian ethanol has established itself as one of the major players on the ethanol market. Ethanol, CH3CH2OH, also known as ethyl alcohol, performs several functions. It may work as a solvent, a germicide, a fuel, and as a chemical intermediate for other organic chemicals. Currently, ethanol is mostly produced via fermentation of sugars, which can be obtained from crops, such as sugarcane and starch. Although the availability of green ethanol depends on seasonal resources, tropical countries with access to farmable land during the entire year may have regular production. In order to produce huge quantities of it, a Ethanol prices are somewhat related to fuel and crops production. While Brazilian and Indian sugarcane-derived ethanol are less affected due to the ability to adjust the production of ethanol/sugar according to market demands, corn starch alcohol is much more sensitive to external factors, while corn is the principal American feed grain. Intratec | Technical Analysis Raw Material 13
    • Technology Overview The ethanol-to-ethylene process comprises three different areas: the reaction area; the quench, compression, caustic washing and drying area; and the purification area. The process block flow diagram presented in Figure 4 summarizes the process. In the purification area, the gas stream is submitted to two cryogenic columns that share a single condenser. In the first, heavy impurities are removed, in the second column, the remaining CO is removed. The resulting bottom stream corresponds to the PG ethylene product. In this process, ethanol from feedstock is vaporized and fed to the furnace, where it is heated. This stream is then fed into the first reactor, where ethanol is partially converted. The resulting stream is fed back to the furnace, where it is reheated and sent directly to the next reactor. This continues until the fourth reactor, where ethanol reaches 99% of conversion. Then, the product stream is cooled, generating steam, before being sent to the subsequent area. In the second area, the cooled stream is fed into a quench column, where most of the water is condensed. Next, the product passes by a three-stage compression and is submitted to a caustic washing column to reduce the CO2 content. The bottom product is sent to waste treatment while the overhead product goes to the ethylene drying system and then follows to purification. Figure 3 – Process Block Flow Diagram Fuel Gas Intratec | Technical Analysis Ethanol 14 Area 100: Reaction & Quenching Source: Intratec – www.intratec.us Area 200: Compression, Caustic Washing & Drying Area 300: Purification PG Ethylene
    • 15 Intratec | Technical Analysis
    • Key Consumptions Table 6 – Design & Simulation Assumptions Table 5 – Raw Materials & Utilities Consumption (per ton of Product) Simulation Software Source: Intratec – www.intratec.us Source: Intratec – www.intratec.us Labor Requirements Table 7 – Labor Requirements for a Typical Plant Intratec | Technical Analysis Source: Intratec – www.intratec.us 16
    • Source: Intratec – www.intratec.us Intratec | Technical Analysis Figure 4 – Inside Battery Limits Conceptual Process Flow Diagram 17
    • Intratec | Technical Analysis Figure 5 – Inside Battery Limits Conceptual Process Flow Diagram (Cont.) 18 Source: Intratec – www.intratec.us
    • Detailed information regarding utilities flow rates is provided in “Appendix B. Utilities Consumptions Breakdown”. For further details on greenhouse gas emissions caused by this process, see “Appendix C. Process Carbon Footprint”. ISBL Major Equipment List Table 9 shows the equipment list by area. It also presents a brief description and the construction materials used. Find main specifications for each piece of equipment in “Appendix D. Equipment Detailed List & Sizing”. Intratec | Technical Analysis Table 8 presents the main streams composition and operating conditions. For a more complete material balance, see the “Appendix A. Mass Balance & Streams Properties” 19
    • 20 Intratec | Technical Analysis
    • OSBL Major Equipment List The OSBL is divided into three main areas: storage (Area 700), energy & water facilities (Area 800), and support & auxiliary facilities (Area 900). Intratec | Technical Analysis Table 10 shows the list of tanks located on the storage area and the energy facilities required in the construction of a partially integrated unit. 21
    • 22 Intratec | Technical Analysis
    • Economic Analysis The general assumptions for the base case of this study are outlined below. Table 11 – Base Case General Assumptions In Table 11, the IC Index stands for Intratec chemical plant Construction Index, an indicator, published monthly by Intratec, to scale capital costs from one time period to another. This index reconciles price trends of the fundamental components of a chemical plant construction such as labor, material and energy, providing meaningful historical and forecast data for our readers and clients. The assumed operating hours per year indicated does not represent any technology limitation; rather, it is an assumption based on usual industrial operating rates. Source: Intratec – www.intratec.us Additionally, Table 11 discloses assumptions regarding the project complexity, technology maturity and data reliability, which are of major importance for attributing reasonable contingencies for the investment and for evaluating the overall accuracy of estimates. Definitions and figures for both contingencies and accuracy of economic estimates can be found in this publication in the chapter “Technology Economics Methodology.” Figure 5 – Project Implementation Schedule Basic Engineering Detailed Engineering Procurement Construction Start-up Source: Intratec – www.intratec.us Intratec | Economic Analysis Total EPC Phase 23
    • Project Implementation Schedule The main objective of knowing upfront the project implementation schedule is to enhance the estimates for both capital initial expenses and return on investment. The implementation phase embraces the period from the decision to invest to the start of commercial production. This phase can be divided into five major stages: (1) Basic Engineering, (2) Detailed Engineering, (3) Procurement, (4) Construction, and (5) Plant Start-up. The duration of each phase is detailed in Figure 6. installation bulks). In other words, the total direct expenses represent the total equipment installed cost. “Appendix E. Detailed Capital Expenses” provides a detailed breakdown for the direct expenses, outlining the share of each type of equipment in total. After defining the total direct cost, the TFI is established by adding field indirect costs, engineering costs, overhead, contract fees and contingencies. Table 13 – Total Fixed Investment Breakdown (USD Thousands) Capital Expenditures Fixed Investment Table 12 shows the bare equipment cost associated with each area of the project. Table 12 – Bare Equipment Cost per Area (USD Thousands) Intratec | Economic Analysis Source: Intratec – www.intratec.us 24 Table 13 presents the breakdown of the total fixed investment (TFI) per item (direct & indirect costs and process contingencies). For further information about the components of the TFI, please see the chapter “Technology Economics Methodology.” Fundamentally, the direct costs are the total direct material and labor costs associated with the equipment (including Source: Intratec – www.intratec.us
    • Indirect costs are defined by the American Association of Cost Engineers (AACE) Standard Terminology as those "costs which do not become a final part of the installation but which are required for the orderly completion of the installation." The indirect project expenses are further detailed in “Appendix E. Detailed Capital Expenses” Alternative OSBL Configurations The total fixed investment for the construction of a new chemical plant is greatly impacted by how well it will be able to take advantage of the infrastructure already installed in that location. For example, if there are nearby facilities consuming a unit’s final product or supplying a unit’s feedstock, the need for storage facilities significantly decreases, along with the total fixed investment required. This is also true for support facilities that can serve more than one plant in the same complex, such as a parking lot, gate house, etc. This study analyzes the total fixed investment for three distinct scenarios regarding OSBL facilities: Non-Integrated Plant Plant Partially Integrated Plant Fully Integrated The detailed definition, as well as the assumptions used for each scenario is presented in the chapter “About this Study.” Intratec | Economic Analysis The influence of the OSBL facilities on the capital investment is depicted in Figure 7 and in Figure 8. 25
    • Figure 6 – Total Direct Cost of Different Integration Scenarios (USD Thousands) Source: Intratec – www.intratec.us Intratec | Economic Analysis Figure 7 – Total Fixed Investment of Different Integration Scenarios (USD Thousands) 26 Source: Intratec – www.intratec.us
    • Working Capital Working capital, described in Table 14, is another significant investment requirement. It is needed to meet the costs of labor; maintenance; purchase, storage, and inventory of field materials; and storage and sales of product(s). Table 15 – Other Capital Expenses (USD Million) Assumptions for working capital calculations are found in “Appendix F. Economic Assumptions”. Table 14 – Working Capital (USD Million) Source: Intratec – www.intratec.us Assumptions used to calculate other capital expenses are provided in “Appendix F. Economic Assumptions.” Total Capital Expenses Source: Intratec – www.intratec.us Other Capital Expenses Table 16 presents a summary of the total Capital Expenditures (CAPEX) detailed in this section. Table 16 – CAPEX (USD Million) Start-up costs should also be considered when determining the total capital expenses. During this period, expenses are incurred for employee training, initial commercialization costs, manufacturing inefficiencies and unscheduled plant modifications (adjustment of equipment, piping, instruments, etc.). The purchase of technology through paid-up royalties or licenses is considered to be part of the capital investment. Other capital expenses frequently neglected are land acquisition and site development. Although these are small parts of the total capital expenses, they should be included. Source: Intratec – www.intratec.us Operational Expenditures Manufacturing Costs The manufacturing costs, also called Operational Expenditures (OPEX), are composed of two elements: a fixed cost and a variable cost. All figures regarding operational costs are presented in USD per ton of product. Intratec | Economic Analysis Initial costs are not addressed in most studies on estimating but can become a significant expenditure. For instance, the initial catalyst load in reactors may be a significant cost and, in that case, should also be included in the capital estimates. 27
    • Table 17 shows the manufacturing fixed cost. To learn more about the assumptions for manufacturing fixed costs, see the “Appendix F. Economic Assumptions” Table 19 shows the OPEX of the presented technology. Table 19 – OPEX (USD/ton) Table 17 – Manufacturing Fixed Cost (USD/ton) Source: Intratec – www.intratec.us Historical Analysis Source: Intratec – www.intratec.us Table 18 discloses the manufacturing variable cost breakdown. Table 18 – Manufacturing Variable Cost (USD/ton) Figure 9 depictures Sales and OPEX historic data, with the sales history based on 30% premium ethylene prices. Figure 10 compares the project EBITDA trends with Intratec Profitability Indicators (IP Indicators). The Basic Chemicals IP Indicator represents basic chemicals sector profitability, based on the weighted average EBITDA margins of major global basic chemicals producers. Alternately, the Chemical Sector IP Indicator reveals the overall chemical sector profitability, through a weighted average of the IP Indicators calculated for three major chemical industry niches: basic, specialties and diversified chemicals. Economic Datasheet The Technology Economic Datasheet, presented in Table 20, is an overall evaluation of the technology's production costs in a US Gulf Coast based plant. Intratec | Economic Analysis The expected revenues in products sales and initial economic indicators are presented for a short-term assessment of its economic competitiveness. 28 Source: Intratec – www.intratec.us
    • Figure 8 – OPEX and Product Sales History (USD/ton) Source: Intratec – www.intratec.us Source: Intratec – www.intratec.us Intratec | Economic Analysis Figure 9 – EBITDA Margin & IP Indicators History Comparison 29
    • 30 Intratec | Economic Analysis
    • Regional Comparison & Economic Discussion Regional Comparison Capital Expenses Variations in productivity, labor costs, local steel prices, equipment imports needs, freight, taxes and duties on imports, regional business environments and local availability of sparing equipment were considered when comparing capital expenses for the different regions under consideration in this report. Capital costs are adjusted from the base case (a plant constructed on the US Gulf Coast) to locations of interest by using location factors calculated according to the items aforementioned. For further information about location factor calculation, please examine the chapter “Technology Economics Methodology.” In addition, the location factors for the regions analyzed are further detailed in “Appendix F. Economic Assumptions.” Figure 11 summarizes the total Capital Expenditures (CAPEX) for two locations. Operational Expenditures Specific regional conditions influence prices for raw materials, utilities and products. Such differences are thus reflected in the operating costs. An OPEX breakdown structure for the different locations approached in this study is presented in Figure 12. Economic Datasheet The Technology Economic Datasheet, presented in Table 21, is an overall evaluation of the technology's capital investment and production costs in the alternative location analyzed in this study. Source: Intratec – www.intratec.us Intratec | Regional Comparison & Economic Discussion Figure 10 – CAPEX per Location (USD Million) 31
    • Figure 11 – Operating Costs Breakdown per Location (USD/ton) Intratec | Regional Comparison & Economic Discussion Source: Intratec – www.intratec.us 32
    • 33 Intratec | Regional Comparison & Economic Discussion
    • 34 Intratec | Regional Comparison & Economic Discussion
    • Intratec | References References 35
    • Acronyms, Legends & Observations AACE: American Association of Cost Engineers LPG: Liquefied petroleum gas ABS: Acrylonitrile butadiene styrene MTO: Methanol-to-Olefins B: Boiler MTP: Methanol-to-Propylene C: Distillation, stripper, scrubber columns (e.g., C-101 would denote a column tag) NGL: Natural gas liquids OPEX: Operational Expenditures C2, C3, ... Cn: Hydrocarbons with "n" number of carbon atoms OSBL: Outside battery limits C2=, C3=, ... Cn=: Alkenes with "n" number of carbon atoms P: Pumps (e.g., P-101 would denote a pump tag) CAPEX: Capital expenditures PG: Polymer grade CR: Distillation column reboiler PVC: Polyvinyl Chloride CT: Cooling tower R: Reactors, treaters (e.g., R-101 would denote a reactor tag) E: Heat exchangers, heaters, coolers, condensers, reboilers (e.g., E-101 would denote a heat exchanger tag) RF: Refrigerant EBIT: Earnings before Interest and Taxes EBITDA: Earnings before Interests, Taxes, Depreciation and Amortization F: Furnaces, fired heaters (e.g., F-101 would denote a furnace tag) RG: Refinery grade STAR: Steam Active Reforming Syngas: Synthesis gas T: Tanks (e.g., T-101 would denote a tank tag) TFI: Total Fixed Investment FBD: Fluidized Bed Dehydration TPC: Total process cost HDPE: High Density Polyethylene V: Horizontal or vertical drums, vessels (e.g., V-101 would denote a vessel tag) IC Index: Intratec Chemical Plant Construction Index IP Indicator: Intratec Chemical Sector Profitability Indicator Intratec | Acronyms, Legends & Observations ISBL: Inside battery limits 36 K: Compressors, blowers, fans (e.g., K-101 would denote a compressor tag) KPI: kta: thousands metric tons per year LDPE: Light Density Polyethylene LLDPE: Linear Light Density Polyethylene LP: Low Pressure (for steam) WD: Demineralized water Obs.: 1 ton = 1 metric ton = 1,000 kg
    • Technology Economics Methodology Introduction The same general approach is used in the development of all Technology Economics assignments. To know more about Intratec’s methodology, see Figure 13. While based on the same methodology, all Technology Economics studies present uniform analyses with identical structures, containing the same chapters and similar tables and charts. This provides confidence to everyone interested in Intratec’s services since they will know upfront what they will get. Workflow Once the scope of the study is fully defined and understood, Intratec conducts a comprehensive bibliographical research in order to understand technical aspects involved with the process analyzed. Subsequently, the Intratec team simultaneously develops the process description and the conceptual process flow diagram based on: a. Non-confidential information provided by technology licensors c. Then, a cost analysis is performed targeting ISBL & OSBL fixed capital costs, manufacturing costs, and overall working capital associated with the examined process technology. Equipment costs are primarily estimated using Aspen Process Economic Analyzer (formerly Aspen Icarus) customized models and Intratec's in-house database. Cost correlations and, occasionally, vendor quotes of unique and specialized equipment may also be employed. One of the overall objectives is to establish Class 3 cost estimates1 with a minimum design engineering effort. Next, capital and operating costs are assembled in Microsoft Excel spreadsheets, and an economic analysis of such technology is performed. Finally, two analyses are completed, examining: a. The total fixed investment in different construction scenarios, based on the level of integration of the plant with nearby facilities b. The capital and operating costs for a second different plant location Intratec's in-house database d. Equipment sizing specifications are defined based on Intratec's equipment design capabilities and an extensive use of AspenONE Engineering Software Suite that enables the integration between the process simulation developed and equipment design tools. Both equipment sizing and process design are prepared in conformance with generally accepted engineering standards. Patent and technical literature research b. From this simulation, material balance calculations are performed around the process, key process indicators are identified and main equipment listed. Process design skills Next, all the data collected are used to build a rigorous steady state process simulation model in Aspen Hysys and/or Aspen Plus, leading commercial process flowsheeting software tools. 1 These are estimates that form the basis for budget authorization, appropriation, and/or funding. Accuracy ranges for this class of estimates are + 10% to + 30% on the high side, and - 10 % to - 20 % on the low side. Intratec | Technology Economics Methodology Intratec Technology Economics methodology ensures a holistic, coherent and consistent techno-economic evaluation, ensuring a clear understanding of a specific mature chemical process technology. 37
    • Figure 123 – Methodology Flowchart Study Understanding Validation of Project Inputs Patent and Technical Literature Databases Intratec Internal Database Non-Confidential Information from Technology Licensors or Suppliers Bibliographical Research Technical Validation – Process Description & Flow Diagram Capital Cost (CAPEX) & Operational Cost (OPEX) Estimation Construction Location Factor (http://base.intratec.us) 38 Material & Energy Balances, Key Process Indicators, List of Equipment & Equipment Sizing Pricing Data Gathering: Raw Materials, Chemicals, Utilities and Products Intratec | Technology Economics Methodology Vendor Quotes Economic Analysis Aspen Plus, Aspen Hysys Aspen Exchanger Design & Rating, KG Tower, Sulcol and Aspen Energy Analyzer Analyses of Different Construction Scenarios and Plant Location Project Development Phases Information Gathering / Tools Source: Intratec – www.intratec.us Final Review & Adjustments Aspen Process Economic Analyzer, Aspen Capital Cost Estimator, Aspen InPlant Cost Estimator & Intratec In-House Database
    • Capital & Operating Cost Estimates Process equipment (e.g., reactors and vessels, heat exchangers, pumps, compressors, etc.) Process equipment spares The cost estimate presented in the current study considers a process technology based on a standardized design practice, typical of a major chemical company. The specific design standards employed can have a significant impact on capital costs. The basis for the capital cost estimate is that the plant is considered to be built in a clear field with a typical large single-line capacity. In comparing the cost estimate hereby presented with an actual project cost or contractor's estimate, the following must be considered: Minor differences or details (many times, unnoticed) between similar processes can affect cost noticeably. The omission of process areas in the design considered may invalidate comparisons with the estimated cost presented. Industrial plants may be overdesigned for particular objectives and situations. Rapid fluctuation of equipment or construction costs may invalidate cost estimate. Equipment vendors or engineering companies may provide goods or services below profit margins during economic downturns. Specific locations may impose higher taxes and fees, which can impact costs considerably. Housing for process units Pipes and supports within the main process units Instruments, control systems, electrical wires and other hardware Foundations, structures and platforms Insulation, paint and corrosion protection In addition to the direct material and labor costs, the ISBL addresses indirect costs, such as construction overheads, including: payroll burdens, field supervision, equipment rentals, tools, field office expenses, temporary facilities, etc. OSBL Investment The OSBL investment accounts for auxiliary items necessary to the functioning of the production unit (ISBL), but which perform a supporting and non-plant-specific role. OSBL items considered may vary from process to process. The OSBL investment could include the installed cost of the following items: Storage and packaging (storage, bagging and a warehouse) for products, feedstocks and by-products Steam units, cooling water and refrigeration systems Process water treating systems and supply pumps ISBL Investment The ISBL investment includes the fixed capital cost of the main processing units of the plant necessary to the manufacturing of products. The ISBL investment includes the installed cost of the following items: Boiler feed water and supply pumps Electrical supply, transformers, and switchgear Auxiliary buildings, including all services and equipment of: maintenance, stores warehouse, laboratory, garages, fire station, change house, cafeteria, medical/safety, administration, etc. General utilities including plant air, instrument air, inert gas, stand-by electrical generator, fire water pumps, etc. Pollution control, organic waste disposal, aqueous waste treating, incinerator and flare systems Intratec | Technology Economics Methodology In addition, no matter how much time and effort are devoted to accurately estimating costs, errors may occur due to the aforementioned factors, as well as cost and labor changes, construction problems, weather-related issues, strikes, or other unforeseen situations. This is partially considered in the project contingency. Finally, it must always be remembered that an estimated project cost is not an exact number, but rather is a projection of the probable cost. 39
    • Working Capital For the purposes of this study,2 working capital is defined as the funds, in addition to the fixed investment, that a company must contribute to a project. Those funds must be adequate to get the plant in operation and to meet subsequent obligations. The initial amount of working capital is regarded as an investment item. This study uses the following items/assumptions for working capital estimation: Accounts receivable. Products and by-products shipped but not paid by the customer; it represents the extended credit given to customers (estimated as a certain period – in days – of manufacturing expenses plus depreciation). Accounts payable. A credit for accounts payable such as feedstock, catalysts, chemicals, and packaging materials received but not paid to suppliers (estimated as a certain period – in days – of manufacturing expenses). Product inventory. Products and by-products (if applicable) in storage tanks. The total amount depends on sales flow for each plant, which is directly related to plant conditions of integration to the manufacturing of product‘s derivatives (estimated as a certain period – in days – of manufacturing expenses plus depreciation, defined by plant integration circumstances). Cash on hand. An adequate amount of cash on hand to give plant management the necessary flexibility to cover unexpected expenses (estimated as a certain period – in days – of manufacturing expenses). Start-up Expenses When a process is brought on stream, there are certain onetime expenses related to this activity. From a time standpoint, a variable undefined period exists between the nominal end of construction and the production of quality product in the quantity required. This period is commonly referred to as start-up. During the start-up period expenses are incurred for operator and maintenance employee training, temporary construction, auxiliary services, testing and adjustment of equipment, piping, and instruments, etc. Our method of estimating start-up expenses consists of four components: Labor component. Represents costs of plant crew training for plant start-up, estimated as a certain number of days of total plant labor costs (operators, supervisors, maintenance personnel and laboratory labor). Commercialization cost. Depends on raw materials and products negotiation, on how integrated the plant is with feedstock suppliers and consumer facilities, and on the maturity of the technology. It ranges from 0.5% to 5% of annual manufacturing expenses. Intratec | Technology Economics Methodology Raw material inventory. Raw materials in storage tanks. The total amount depends on raw material availability, which is directly related to plant conditions of integration to raw material manufacturing (estimated as a certain period – in days – of raw material delivered costs, defined by plant integration circumstances). 40 Start-up inefficiency. Takes into account those operating runs when production cannot be maintained or there are false starts. The start-up inefficiency varies according to the process maturity: 5% for new and unproven processes, 2% for new and proven processes, and 1% for existing licensed processes, based on annual manufacturing expenses. In-process inventory. Material contained in pipelines and vessels, except for the material inside the storage tanks (assumed to be 1 day of manufacturing expenses). Unscheduled plant modifications. A key fault that can happen during the start-up of the plant is the risk that the product(s) may not meet specifications required by the market. As a result, equipment modifications or additions may be required. Supplies and stores. Parts inventory and minor spare equipment (estimated as a percentage of total maintenance materials costs for both ISBL and OSBL). 2 The accounting definition of working capital (total current assets minus total current liabilities) is applied when considering the entire company.
    • Prepaid Royalties. Royalty charges on portions of the plant are usually levied for proprietary processes. A value ranging from 0.5 to 1% of the total fixed investment (TFI) is generally used. Site Development. Land acquisition and site preparation, including roads and walkways, parking, railroad sidings, lighting, fencing, sanitary and storm sewers, and communications. Manufacturing Costs Manufacturing costs do not include post-plant costs, which are very company specific. These consist of sales, general and administrative expenses, packaging, research and development costs, and shipping, etc. Operating labor and maintenance requirements have been estimated subjectively on the basis of the number of major equipment items and similar processes, as noted in the literature. Plant overhead includes all other non-maintenance (labor and materials) and non-operating site labor costs for services associated with the manufacture of the product. Such overheads do not include costs to develop or market the product. G & A expenses represent general and administrative costs incurred during production such as: administrative salaries/expenses, research & development, product distribution and sales costs. Contingencies Contingency constitutes an addition to capital cost estimations, implemented based on previously available data or experience to encompass uncertainties that may incur, to some degree, cost increases. According to recommended practice, two kinds of contingencies are assumed and applied to TPC: process contingency and project contingency. Process contingency is utilized in an effort to lessen the impact of absent technical information or the uncertainty of that which is obtained. In that manner, the reliability of the information gathered, its amount and the inherent complexity of the process are decisive for its evaluation. Errors that occur may be related to: Uncertainty in process parameters, such as severity of operating conditions and quantity of recycles Addition and integration of new process steps Estimation of costs through scaling factors Off-the-shelf equipment Hence, process contingency is also a function of the maturity of the technology, and is usually a value between 5% and 25% of the direct costs. The project contingency is largely dependent on the plant complexity and reflects how far the conducted estimation is from the definitive project, which includes, from the engineering point of view, site data, drawings and sketches, suppliers’ quotations and other specifications. In addition, during construction some constraints are verified, such as: Project errors or incomplete specifications Strike, labor costs changes and problems caused by weather Table 22 – Project Contingency Plant Complexity Complex Typical Simple Project Contingency 25% 20% 15% Source: Intratec – www.intratec.us Intratec’s definitions in relation to complexity and maturity are the following: Table 23 – Criteria Description Simple Complexity Typical Somewhat simple, widely known processes Regular process Several unit operations, extreme Complex temperature or pressure, more instrumentation New & Maturity Proven Licensed From 1 to 2 commercial plants 3 or more commercial plants Source: Intratec – www.intratec.us Intratec | Technology Economics Methodology Other Capital Expenses 41
    • Accuracy of Economic Estimates The accuracy of estimates gives the realized range of plant cost. The reliability of the technical information available is of major importance. Table 24 – Accuracy of Economic Estimates Reliability Accuracy Very Low Moderate High + 30% + 22% + 18% + 10% - 20% - 18% - 14% - 10% High Source: Intratec – www.intratec.us The non-uniform spread of accuracy ranges (+50 to – 30 %, rather than ±40%, e.g.) is justified by the fact that the unavailability of complete technical information usually results in under estimating rather than over estimating project costs. Location Factor A properly estimated location factor is a powerful tool, both for comparing available investment data and evaluating which region may provide greater economic attractiveness for a new industrial venture. Considering this, Intratec has developed a well-structured methodology for calculating Location Factors, and the results are presented for specific regions’ capital costs comparison. Intratec’s Location Factor takes into consideration the differences in productivity, labor costs, local steel prices, equipment imports needs, freight, taxes and duties on imported and domestic materials, regional business environments and local availability of sparing equipment. For such analyses, all data were taken from international statistical organizations and from Intratec’s database. Calculations are performed in a comparative manner, taking a US Gulf Coast-based plant as the reference location. The final Location Factor is determined by four major indexes: Business Environment, Infrastructure, Labor, and Material. The Business Environment Factor and the Infrastructure Factor measure the ease of new plant installation in different countries, taking into consideration the readiness of bureaucratic procedures and the availability and quality of ports or roads. A location factor is an instantaneous, total cost factor used for converting a base project cost from one geographic location to another. Figure 13 – Location Factor Composition Location Factor Intratec | Technology Economics Methodology Material Index 42 Domestic Material Index Relative Steel Prices Labor Index Taxes and Freight Rates Spares Imported Material Taxes and Freight Rates Spares Source: Intratec – www.intratec.us Labor Index Local Labor Index Relative Salary Productivity Expats Labor Infrastructure Factor Ports, Roads, Airports and Rails (Availability and Quality) Communication Technologies Warehouse Infrastructure Border Clearance Local Incentives Business Environment Factor Readiness of Bureaucratic Procedures Legal Protection of Investors Taxes
    • Labor and material, in turn, are the fundamental components for the construction of a plant and, for this reason, are intrinsically related to the plant costs. This concept is the basis for the methodology, which aims to represent the local discrepancies in labor and material. Productivity of workers and their hourly compensation are important for the project but, also, the qualification of workers is significant to estimating the need for foreign labor. On the other hand, local steel prices are similarly important, since they are largely representative of the costs of structures, piping, equipment, etc. Considering the contribution of labor in these components, workers’ qualifications are also indicative of the amount that needs to be imported. For both domestic and imported materials, a Spare Factor is considered, aiming to represent the need for spare rotors, seals and parts of rotating equipment. The sum of the corrected TFI distribution reflects the relative cost of the plant, this sum is multiplied by the Infrastructure and the Business Environment Factors, yielding the Location Factor. For the purpose of illustrating the conducted methodology, a block flow diagram is presented in Figure 14 in which the four major indexes are presented, along with some of their components. Intratec | Technology Economics Methodology . 43
    • 44 Intratec | Appendix A. Mass Balance & Streams Properties
    • 45 Intratec | Appendix A. Mass Balance & Streams Properties
    • 46 Intratec | Appendix A. Mass Balance & Streams Properties
    • 47 Intratec | Appendix A. Mass Balance & Streams Properties
    • 48 Intratec | Appendix A. Mass Balance & Streams Properties
    • 49 Intratec | Appendix B. Utilities Consumption Breakdown
    • Appendix C. Process Carbon Footprint The process’ carbon footprint can be defined as the total amount of greenhouse gas (GHG) emissions caused by the process operation. The assumptions for carbon footprint calculation and the results are provided in Table 27 and Table 28. Although it is difficult to precisely account for the total emissions generated by a process, it is possible to estimate the major emissions, which can be divided into: Table 28 – CO2e Emissions (ton/ton prod.) Direct emissions. Emissions caused by process waste streams combusted in flares. Indirect emissions. The ones caused by utilities generation or consumption, such as the emissions due to using fuel in furnaces for heating process streams. Fuel used in steam boilers, electricity generation, and any other emissions in activities to support process operation are also considered indirect emissions. In order to estimate the direct emissions, it is necessary to know the composition of the streams, as well as the oxidation factor. Estimation of indirect emissions requires specific data, which depends on the plant location, such as the local electric power generation profile, and on the plant resources, such as the type of fuel used. Intratec | Appendix C. Process Carbon Footprint Table 27 – Assumptions for CO2e Emissions Calculation 50 Source: Intratec – www.intratec.us Source: Intratec – www.intratec.us Equivalent carbon dioxide (CO2e) is a measure that describes the amount of CO2 that would have the same global warming potential of a given greenhouse gas, when measured over a specified timescale. All values and assumptions used in calculations are based on data provided by the Environment Protection Agency (EPA) Climate Leaders Program.
    • Actual gas flow rate Inlet (m3/h) Casing material Design gauge pressure Intratec | Appendix D. Equipment Detailed List & Sizing Outlet (barg) 51
    • Table 31 – Heat Exchangers Design gauge pressure (barg) Design temperature (deg C) Shell design temperature (deg C) Shell material Tube design gauge pressure (barg) Tube design temperature Intratec | Appendix D. Equipment Detailed List & Sizing (deg C) 52
    • Shell design temperature (deg C) Shell material Tube design gauge pressure (barg) Tube design temperature Intratec | Appendix D. Equipment Detailed List & Sizing (deg C) 53
    • Shell design temperature (deg C) Shell material Tube design gauge pressure (barg) Tube design Intratec | Appendix D. Equipment Detailed List & Sizing temperature (deg C) 54
    • temperature (deg C) Liquid flow rate (m3/h) Source: Intratec – www.intratec.us Intratec | Appendix D. Equipment Detailed List & Sizing Design 55
    • 56 Intratec | Appendix D. Equipment Detailed List & Sizing Design gauge pressure (barg) Design temperature (deg C)
    • Table 35 – Vessels & Tanks (Cont.) Design gauge pressure (barg) Design temperature (deg C) Design gauge pressure (barg) Design temperature (deg Intratec | Appendix D. Equipment Detailed List & Sizing C) 57
    • Appendix E. Detailed Capital Expenses Direct Costs Breakdown Figure 14 – ISBL Direct Costs Breakdown by Equipment Type for Base Case Source: Intratec – www.intratec.us Intratec | Appendix E. Detailed Capital Expenses Figure 15 – OSBL Direct Costs Breakdown by Equipment Type for Base Case 58 Source: Intratec – www.intratec.us
    • 59 Intratec | Appendix E. Detailed Capital Expenses
    • Appendix F. Economic Assumptions Capital Expenditures For a better description of working capital and other capital expenses components, as well as the location factors methodology, see the chapter “Technology Economics Methodology” Working Capital Table 38 – Working Capital Assumptions for Base Case Raw Materials Construction Location Factors Inventory days of raw materials cost + depreciation Table 37 – Detailed Construction Location Factor In-process Inventory Supplies and Stores Source: Intratec – www.intratec.us Intratec | Appendix F. Economic Assumptions Table 39 – Other Capital Expenses Assumptions for Base Case 60 Source: Intratec – www.intratec.us Source: Intratec – www.intratec.us
    • Operational Expenditures Fixed Costs Fixed costs are estimated based on the specific characteristics of the process. The fixed costs, like operating charges and plant overhead, are typically calculated as a percentage of the industrial labor costs, and G & A expenses are added as a percentage of the operating costs. The goal of depreciation is to allow a credit against manufacturing costs, and hence taxes, for the nonrecoverable capital expenses of an investment. The depreciable portion of capital expense is the total fixed investment. Table 41 shows the project depreciation value and the assumptions used in its calculation. Table 41 – Depreciation Value & Assumptions Table 40 – Other Fixed Cost Assumptions Source: Intratec – www.intratec.us Source: Intratec – www.intratec.us Source: Intratec – www.intratec.us Intratec | Appendix F. Economic Assumptions Figure 16 – Historical EBITDA Margins Regional Comparison 61
    • Appendix G. Released Publications The list below is intended to be an easy and quick way to identify Intratec reports of interest. For a more complete and up-to-date list, please visit the Publications section on our website, www.intratec.us. Ethylene via Ethanol Dehydration: Ethylene production via ethanol dehydration, in a process similar to that used by Chematur and Petron. TECHNOLOGY ECONOMICS IMPROVEMENT ECONOMICS Propylene Production via Metathesis: Propylene production via metathesis from ethylene and butenes, in a process similar to Lummus OCT. Propylene Production via Propane Dehydrogenation: Propane dehydrogenation (PDH) process conducted in moving bed reactors, in a process similar to UOP OLEFLEX™. Propylene Production from Methanol: Propylene production from methanol, in a process is similar to Lurgi MTP®. Membranes on Polypropylene Plants Vent Recovery: The Report evaluates membrane units for the separation of monomer and nitrogen in PP plants, similar to the VaporSep® system commercialized by MTR. Use of Propylene Splitter to Improve Polypropylene Business: The report assesses the opportunity of purchasing the less valued RG propylene to produce the PG propylene raw material used in a PP plant. RESEARCH ECONOMICS Polypropylene Production via Gas Phase Process: A gas phase type process similar to the Dow UNIPOL™ PP process to produce both polypropylene homopolymer and random copolymer. Polypropylene Production via Gas Phase Process, Part 2: A gas phase type process similar to Lummus NOVOLEN® for production of both homopolymer and random copolymer. Intratec | Appendix G. Released Publications Sodium Hypochlorite Chemical Production: Sodium hypochlorite (bleach) production, in a widely used industrial process, similar to that employed by Solvay Chemicals, for example. 62 Propylene Production via Propane Dehydrogenation, Part 2: Propane dehydrogenation (PDH) in fixed bed reactors, in a process is similar to Lummus CATOFIN®. Propylene Production via Propane Dehydrogenation, Part 3: Propane dehydrogenation (PDH) by applying oxydehydrogenation, in a process similar to the STAR PROCESS® licensed by Uhde. Green Ethylene from Ethanol: The report evaluates the ethylene production via ethanol dehydration in a process based in a patent published by BP Chemicals.
    • Appendix H. Technology Economics Form Submitted by Client Appendix H. Technology Economics Form Submitted by Client
    • Technology Economics Request Form Process Technology of Interest Is it a commercial process technology? Yes No Industry Sector Chemicals Production Specify Chemical Produced: Ethylene Technology Description Ethanol catalytic dehydration ( similar to Petron’s ETE Process ) Study Assumptions Please provide the assumptions that will support the techno-economic evaluation of your target mature technology. Change inputs Analysis Date Quarter / Year Q4 / 2012 Change inputs Plant Nominal Capacity Plant Capacity 300 kta (661.4 million lb/yr) Change inputs Operating Hours Operating Hours 8,000 h/year (91.3% of the year) Change inputs Storage Facilities Requirements Products 0 days of operation By-Products (if applicable) Not Applicable days of operation Raw Materials 20 days of operation Change inputs Utilities Supply Facilities Account for the Erection of Utilities Facilities? Yes
    • Add another location Plant Location Capital and operating costs estimation will be based on Intratec's Internal Database default prices for: 1) United States (US Gulf Coast) Add comments 2) Second Location: Choose among countries available on Intratec's Database. Select a Country Brazil Economic Assumptions Change inputs Income Tax 37 % Sales Tax 7% Value Added Tax (VAT) 0% Depreciation Method Straight Line (10 years) Perpetuity (EBITDA Multiple) 5 times the EBITDA value in the last year of the economic cycle Prices Escalation 1 % per year General Design Conditions Check process design assumptions used by Intratec Change inputs Attach Files Attach any other documents deemed relevant for the project description. Multiple files may be uploaded: - Articles Brochures Book sections Patents Block flow diagrams
    • Assess any Process with Technology Economics The list below presents many examples of processes eligible for technology economics studies, to know more about this service and request your own custom study please access www.intratec.us/tec. Production Processes for ABS Resins High Density Polyethylene (HDPE) Phenol Acetic Acid Hydrogen Phosphoric Acid Acetone Hydrogen Peroxide Phthalic Anhydride (PAN) Acrylic Acid Isobutanol Polyacrylamide Acrylonitrile Isobutylene Polyacrylate Adipic Acid Isooctane Polybutadiene Rubber (PBR) Ammonia Isoprene Polybutylene Terephthalate (PBT) Aniline Isopropanol Polycarbonate Benzene Lactic Acid Polyethylene Terephthalate (PET) Biodiesel Linear Alkylbenzene Polypropylene (PP) Bisphenol A Liquefied Natural Gas (LNG) Polystyrene (PS) Butadiene Linear Low Density Polyethylene (LLDPE) Polyvinyl Acetate (PVA) Butylene Low Density Polyethylene (LDPE) Polyvinyl Chloride (PVC) Butyraldehyde Maleic Acid Propylene Caprolactam Maleic Anhydride (MAN) Propylene Glycol Carbon Dioxide Melamine Propylene Oxide Chlorine Methanol Sodium Hydroxide Cumene Methyl Ethyl Ketone (MEK) Styrene Dimethyl Ether Methyl Isobutyl Ketone (MIBK) Succinic Acid Diphenylmethane Diamine Methyl Methacrylate (MMA) Succinic Anhydride Ethanol Methyl Tert-Butyl Ether (MTBE) Sulfur Ethanolamine Methylamine (MA) Sulfuric Acid Ethyl Acetate Methylene Diphenyl Diisocyanate (MDI) Synthesis Gas (Syngas) Ethylbenzene Naphtalene Terephthalic Acid (PTA) Ethylene Nitrobenzene Toluene Ethylene Dichloride (EDC) n-Butanol Urea Ethylene Glycol Nitrogen / Oxygen Vinyl Acetate Monomer (VAM) Ethyleneamine Nylon 6 Vinyl Chloride Monomer (VCM) Formaldehyde Nylon 6,6 Glycerin P-xylene
    • Oil Refining Processes Alkylation Hydrotreating Visbreaking Crude Distillation Hydrocracking Vacuum Distillation Catalytic Cracking Isomerization Catalytic Refining Sulfur Recovery Gas Treatment Processes Dehydration NGL Recovery Sulfur Recovery
    • Appendix I. Related Study Opportunities Appendix I. Related Study Opportunities
    • PET from Coca-Cola’s PlantBottle Relies on Green MEG Produced via Scientific Design Process The first ever recyclable plastic bottle made partially from plants, Coca-Cola’s PlantBottle relies on polyethylene terephthalate (PET) produced from terephthalic acid and green monoethylene glycol (MEG) derived from bioethanol. Scrubber Oxygen Caustic Water EO Stripper CO2 Removal MEG Ethanol Steam DEG TEG Ethylene Oxide Reactor Dehydration Reactor Water Removal Glycol Reactor PEG The use of green MEG in the production of PET was enabled by Scientific Design (SD), which developed an integrated process comprising the ethanol dehydration and the MEG production steps. This integration requires minimum ethylene purification and takes advantage of heat integration opportunities. According to SD, ethanol is dehydrated to ethylene in a single reactor. The reactor effluent is cooled, washed with an alkaline water solution, compressed and purified. Then, ethylene reacts with oxygen, generating ethylene oxide. The stream is purified and sent to the glycols reactor, where a non-catalytic reaction of ethylene oxide and water generates ethylene glycol (EG). The glycols are separated by vacuum distillation to produce MEG, DEG and TEG. Intratec’s Technology Economics advisory service makes a critical analysis of the process. Based on publicly available information, the complete study evaluates the economics surrounding the technology, providing: Process Simulation Estimation of Key Performance Indicators and list of equipment Plant capital cost estimates developed using Aspen Process Economic Analyzer Evaluation of the costs related to plant operation (raw materials, utilities, labor and other fixed costs, etc) Review our Technology Economics advisory service at www.intratec.us/tec and order the service online: 1. Indicate the commercial technology to be economically evaluated; 2. Select the pricing and payment options that best fit your budget; 3. Submit your order. Main Reference Touch Briefings 2010 – Hydrocarbon World, Volume 5, Issue 2 – Scientific Design’s Ethanol to Monoethylene Glycol Technology (http://www.touchoilandgas.com/ebooks/A1qfzp/hydro52/resources/14.htm)
    • Braskem Operates the First Commercial-Scale Green Ethylene Plant in the World Ethylene is certainly one of the most important petroleum derivatives, known as the raw material for the production of numerous chemicals. Ethylene is most frequently produced via steam cracking of petroleum-based feedstock. Growing global concerns about sustainability and global warming, along with rising oil prices have motivated research into ethylene manufacture from renewable sources. Ethanol Ethanol Vaporizer Dehydration Reactors Quench Water Steam Compressor Brazilian petrochemical company Braskem operates the first large-scale ethylene project to use 100% renewable raw materials. The plant, inaugurated in September 2010 in Triunfo, Rio Grande do Sul state of Brazil, uses ethanol produced from sugarcane as the feedstock. Ethylene Ethylene Purification Dryer Caustic Wash Through Intratec’s Technology Economics advisory service, it is possible to assess the economics of this process. From publicly available data, Intratec develops a complete study for the economic evaluation of the technology, encompassing: Simulation of the mature process Estimation of process consumptions and equipment requirements Capital cost estimation for a commercial scale plant Operating costs evaluation (including raw materials, utilities, labor and other fixed costs) Review our Technology Economics advisory service at www.intratec.us/tec and order the service online: 1. Indicate the commercial technology to be economically evaluated; 2. Select the pricing and payment options that best fit your budget; 3. Submit your order. Main Reference Braskem Ethanol-to-Ethylene Plant, Brazil (http://www.chemicals-technology.com/projects/braskem-ethanol/)
    • Dow Suggests Different Ethylene Purification to Reduce Bioethylene Plant Costs A patent issued by Dow Global Technologies (Application WO 2011/087478) reveals the research on an alternative ethylene purification scheme in the ethanol dehydration process which may reduce the required capital investment. Caustic Wash and Drying Ethylene purification in conventional ethanol dehydration processes uses cryogenic separation to remove methane, Water hydrogen (H2) and carbon Selective CO/ H2 Oxidation monoxide (CO). The costs of cryogenic distillation appear to be Ethanol Dehydration Quench Compressor Ethanol Vaporizer Reactors particularly high when it is used merely for removal of the relatively low concentration of CO produced by dehydrating ethanol, especially when the concentrations of methane and hydrogen are already below the specification for ethylene. Polymer Grade Ethylene Ethylene Purification In this context, Dow proposes the use of selective oxidation of CO to carbon dioxide (CO2) as a way to achieve the ethylene CO specification. In addition, H2 is also selectively oxidized and converted to water, which further reduces the amount of H2 in the ethylene stream to be purified. In order to check if the suggested layout is advantageous in comparison to prior art, it is necessary to assess the required reactor size, and the impact of CO concentration reduction in the capital costs of ethylene cryogenic purification step. Through Intratec’s Research Economics advisory service, it is possible to assess the economics of the invention. Intratec’s methodology ensures a critical analysis of the research, based on: Simulation model of the process described in the patent Plant capital cost estimates developed using Aspen Process Economic Analyzer Manufacturing expenses detailed breakdown Process economic performance sensitivity on raw materials and utilities pricing Review our Research Economics advisory service at www.intratec.us/rec and order the service online: 1. Indicate a patent to be economically analyzed; 2. Select the pricing and payment options that best fit your budget; 3. Submit your order. Main Reference Patent App. WO 2011/087478 – Dow Global Technologies (http://www.google.com/patents/WO2011087478A1)
    • BP Bets on Reactive Distillation to Reduce Ethanol Dehydration Plants Capital Costs A patent issued by BP Chemicals (Application US 2008/0275283) reveals the research on alternatives to reduce equipment requirements of ethanol dehydration process. According to the core concept proposed by BP, ethanol feedstock is converted in a reactive distillation column into a product comprising ethylene and diethyl-ether (DEE). The reactive distillation column top product (ethylene and diethyl-ether) is sent to further purification for PG Ethylene recovery. Ethylene Diethyl Ether Diethyl Ether Ethylene According to BP, compared to traditional Methanol-to-Olefins (MTO) process, higher selectivity can be achieved using milder reaction conditions (temperature and pressure). By converting ethanol to ethylene (and/or diethyl-ether) in a single reactive distillation column, it is possible to suppress some unit operations in comparison to regular ethanol dehydration process (furnaces, reactors, etc). Ethanol Water Ethanol Dehydration (Reactive Distillation) In order to evaluate the economic feasibility of the invention, it is necessary to assess the reaction conversion, the reflux streams rates, and the need for further unit operations. Intratec’s Research Economics advisory service enables a critical analysis of the topic. From the patent, Intratec develops a complete study for the economic evaluation of the concept, encompassing: Synthesis of a commercial scale process configuration based on patent data Capital cost estimation for a commercial scale plant relying on this concept Operating costs estimation Economic sensitivity analysis over the key technical parameters regarding the invention Review our Research Economics advisory service at www.intratec.us/rec and order the service online: 1. Upload the patent you would like to be assessed; 2. Define the pricing and payment options according to your needs; 3. Submit your order. Main Reference Patent App. US 2008/0275283 – BP Chemicals Limited (http://www.freepatentsonline.com/y2008/0275283)
    • IFP and Total Propose an Energy Saving Process Change in a Typical Ethanol Dehydration Unit A recent patent application (WO 2013011208 A1) jointly proposed by IFP and Total disclose the research on an apparently simple process modification in conventional ethanol-to-ethylene dehydration facilities to save energy. According to the concept suggested by IFP and Total, two heat exchangers and one compressor system (see the green highlights on the figure below) are added to favor the heat transfer between the product stream exiting the reactor system and the feedstock stream entering the same reactor system. Furnaces Ethanol Pretreatment Dehydration Reactors Water Ethanol It appears that the addition of a compressor system to the facility might imply in an increase of capital expenditures and electric power consumption, but OPEX reduction related to natural gas savings might offset both capital and operating costs increase. The claimed energy gains are about 4 GJ equivalent per metric ton of ethylene produced. Ethylene To evaluate the economic feasibility of the invention, it is necessary to properly size the two new heat Lights exchangers and compressor system, evaluate the trade-off between the rise in electric power consumption and reduction in natural gas Purge requirements, check the possibility of eliminating the water quench column, which is typically used, and assess the need for further unit operations. Intratec’s Improvement Economics advisory service enables a critical analysis of IFP and Total solution. From the patent, Intratec develops an in-depth and unbiased study of the economic evaluation of the concept, encompassing: Synthesis and design of a commercial scale process modified according to patent data Capital cost estimation for the layout changes suggested in the patent Reductions and increases in process consumptions as well as operating costs estimation Economic sensitivity analysis over the key parameters regarding the invention Check Improvement Economics advisory service at www.intratec.us/ime and order the service online: 1. Indicate the patent to be economically evaluated; 2. Select the pricing and payment options that best fit your budget; 3. Submit your order. Main Reference Patent App. WO 2013011208 A1 – IFP & Total (http://www.google.com/patents/WO2013011208A1)
    • American Process` Technology for Ethanol Production Upgrades The Value of Cellulosic Biomass The extensive use of fossil fuels and its associated risks of global warming have led to the production of alternative fuels such as sugarcane- or starch-derived ethanol. However, the increasing use of crops for ethanol production has raised concerns about competition between biofuels production and food supply. These concerns have motivated research on the use of low-value biomass, often deemed “waste”, as an alternative route for producing ethanol. That biomass is the lignocellulosic material found in wood, sugarcane bagasse or grain crop stubbles. Biomass Extraction Reactor Washing Biomass Dewatering Hydrolisis Reactor Post Hydrolisis Evaporator Thermal Conversion to Energy Steam CO2 Low-Solids Evaporator Fermentation & Distillation Ethanol In this context, American Process has developed an integrated process for the co-production of lignocellulosic ethanol and energy from residual biomass that is not used for food purposes. In this process, the hemicellulose is extracted from lignocellulosic biomass. Stillage Concentrator Mild sulfuric acid is then used to hydrolyze the hemicellulose to sugars that are then converted to ethanol. The remaining moist biomass is dewatered and burned to generate the energy required for the ethanol production process. Any fermentation residuals are sent to the boiler. American Process claims that this process results in a low CAPEX, low cost ethanol and a high overall IRR project. Through Intratec’s Technology Economics advisory service, it is possible to assess the economics of the suggested process. Intratec’s methodology ensures a critical analysis of the technology, based on: Simulation of the mature process Estimation of process consumptions and equipment requirements Capital cost estimation for a commercial scale plant Operating costs evaluation (including raw materials, utilities, labor and other fixed costs) Review our Technology Economics advisory service at www.intratec.us/tec and order the service online: 1. Indicate the commercial technology to be economically evaluated; 2. Select the pricing and payment options that best fit your budget; 3. Submit your order. Main Reference American Process Website (http://www.americanprocess.com/GreenPowerPlus.aspx) Other References Patent App. US 2012/0009632 A1 – American Process Inc. (http://www.freepatentsonline.com/y2012/0009632.html)
    • Brazilian Success in Sugarcane-Based Ethanol Is an Example for Biofuels Production Brazil is the world's largest exporter of ethanol and the world's second largest producer, only after the United States. Together, Brazil and the US lead global ethanol production, accounting for nearly 70% of the world's production. The success of sugarcane-based ethanol in Brazil is explained by an integrated production chain, allowing industrial ethanol production as well as energy generation. Large-scale production of sugar and ethanol includes milling, fermentation, distillation of Extraction of Juice Juice ethanol, and dehydration. After cleaning, sugar Cleaning Sugarcane Sugars Treatment Evaporation cane is pressed to extract the juice (10-15% sucrose). The fiber residue, called bagasse, is Distillation used as fuel, allowing the plant to be selfAnhydrous Fermentation Centrifugation and Dehydration Ethanol Rectification sufficient in terms of energy. The cane juice is treated with chemicals and filtered before the Yeast evaporation step. Yeast is added to the molasses Treatment for fermentation, which generates wine containing 7-10% alcohol. The yeast is recovered from the wine using a centrifuge. The alcohol is distillated, resulting in hydrous ethanol. Anhydrous ethanol is obtained through a further dehydration step. Bagass Through Intratec’s Technology Economics advisory service, it is possible to assess the economics of the process. Intratec’s methodology ensures a critical analysis of the technology, based on: Process Simulation Estimation of Key Performance Indicators and list of equipment Plant capital cost estimates developed using Aspen Process Economic Analyzer Evaluation of the costs related to plant operation (raw materials, utilities, labor and other fixed costs, etc) Review our Technology Economics advisory service at www.intratec.us/tec and order the service online: 1. Indicate the commercial technology to be economically evaluated; 2. Select the pricing and payment options that best fit your budget; 3. Submit your order. Main Reference SugarCane.org (http://sugarcane.org/sugarcane-products/ethanol)
    • Technology Economics Standardized advisory services developed under Intratec’s Consulting as Publications innovative approach. Technology Economics studies answer main questions surrounding process technologies: - What is the process? What equipment is necessary? - What are the raw materials and utilities consumption rates? - What are the capital and operating expenses breakdown? - What are the economic indicators? - In which regions is this technology more profitable?