This document provides an analysis for establishing a solvent recovery plant. It begins with an introduction to solvents and recovery methods. It then surveys key solvent markets and competitors. The proposed production method is an adsorption system using activated carbon due to the azeotropic nature of the solvent mixture. The document considers plant location, technology, costs, implementation plan and provides a market analysis. The goal is to establish a solvent recovery plant to reduce waste and costs while gaining profit from recycled solvent sales.
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Solvent Recovery System - Feasibility Report
1. Table of Contents
1 INTRODUCTION......................................................................................................................1
2 MARKET SURVEY...................................................................................................................2
2.1 Ethanol ..............................................................................................................................2
2.2 Isopropyl Alcohol................................................................................................................4
2.3 Ethyl Acetate......................................................................................................................5
2.4 Methoxy Propanol..............................................................................................................5
2.5 N-Propanol.........................................................................................................................5
2.6 Acetic Acid.........................................................................................................................6
3 COMPETITION ........................................................................................................................7
The usage areas of solvent recovery systems .........................................................................7
Competitors in the market........................................................................................................7
The facility requirements for built a solvent recovery system....................................................7
4 PRODUCTION METHOD.........................................................................................................8
5 PLANT LOCATION SELECTION............................................................................................11
6 TECHNOLOGY AND PATENT SITUATION ...........................................................................12
6.1 Technology ......................................................................................................................12
6.2 Patent ..............................................................................................................................12
7 RAW MATERIALS..................................................................................................................13
8 SAFETY AND SECURITY CONSIDERATIONS FOR ENVIRONMENTAL SIDES..................14
8.1 Ethanol ............................................................................................................................14
8.2 Isopropyl Alcohol..............................................................................................................14
8.3 Ethyl Acetate....................................................................................................................14
8.4 Methoxy Propanol............................................................................................................14
8.5 n-Propanol .......................................................................................................................15
8.6 Acetic Acid.......................................................................................................................15
9 STORING, PACKAGING, SHIPPING REQUIREMENTS........................................................15
9.1 Storing, Packaging, Shipping Requirements........................................................................15
9.1.1 Storing ..........................................................................................................................15
9.1.2 Packaging.....................................................................................................................15
9.1.3 Shipping........................................................................................................................16
10 FACILITIES AND EQUIPMENT............................................................................................16
11 INVESTMENT COST (CAPEX) ............................................................................................17
12 PRODUCTION COST (OPEX) .............................................................................................18
2. 13 IMPLEMENTATION PLAN ...................................................................................................19
14 REFERANCE .......................................................................................................................20
APPENDIX................................................................................................................................21
CAPEX CALCULATION.........................................................................................................21
Annual Sales Analysis ....................................................................................................21
Fixed Capital Cost Analysis ............................................................................................21
Direct Cost Analysis........................................................................................................21
Indirect Cost Analysis .....................................................................................................21
Working Capital Cost ......................................................................................................22
Start-up Cost ..................................................................................................................22
OPEX CALCULATION ..............................................................................................................22
Raw Material Cost ..........................................................................................................22
Operation and Supervision Labor Cost ...........................................................................22
Maintenance and Repair Cost.........................................................................................22
Operating Supplies Cost.................................................................................................22
Plant Overhead Cost.......................................................................................................22
Insurance........................................................................................................................23
Property taxes and other duties ......................................................................................23
Depreciation ...................................................................................................................23
Distribution and Marketing Cost ......................................................................................23
Research and Development Cost ...................................................................................23
Contingencies.................................................................................................................23
Cash Flow Calculation ....................................................................................................24
Break-Even Point Calculation .........................................................................................24
3. 1
1 INTRODUCTION
Solvents are chemical intermediates which is to dissolve or dilute other substances or
materials. They are widely used in a great variety of processes, from coating to fuel, cleaning,
manufacturing electronics and machining, painting and diverse applications in industry. Solvents
are generally organic liquids such as volatile components, gasoline and water as well. Solvents
can be selected according to their solubility in the other molecules because there is a rule in
chemistry βlike dissolves likeβ. At the end of the process the solvent mixture is removed as a waste.
However, waste disposal cost has a high cost for many manufacturers. In order to reduce this cost
solvent recovery systems can be installed to ensure the recycling of solvents. This is a process
which is used in chemical industry generally. The system provides cost savings by reductions in
purchase costs of new solvents, reductions in waste handling costs and reductions in storage
costs of both solvent and wastes. Also, recovered chemicals can be sold to make profit. There
many different methods according to materials which are recovered. These methods are:
β’ Distillation
β’ Liquid-liquid extraction
β’ Chemical extraction
β’ Absorption systems
β’ Film evaporation
β’ Crystallization
β’ Membrane separation
Standard non-azeotropic solutions and heterogeneous and homogeneous azeotropic
solutions can be recovered by using solvent recovery system. There are many parameters to be
addressed to determine the feasibility of solvent recovery. The most important parameters are:
β’ Prices of solvents to be recovered
β’ Costs of disposal of solvents if not recovered
β’ Capital and operating costs of solvent recovery system
β’ Achievable purity of recovered solvents.
4. 2
2 MARKET SURVEY
In the project the local company which produces POLYMERIC films uses some solvents
which are listed below, and their waste stream rates were also specified.
Compound % mass Amount of waste
(tonnes/year)
Ethanol 30.8 1079.2
IPA 22.3 781.39
Ethyl acetate 22.9 802.416
Methoxy propanol 11.8 413.472
n-propanol 4.4 154.176
Acetic acid 7.8 273.312
2.1 Ethanol
Ethanol production by country in percent shows in Figure 1. For the ethanol production,
United States has a significant role. According to chart Turkey has 3% production which is very
low with respect to other countries. Recovering waste decrease the purchase. In Figure 2, ethanol
usage shows that 66% of ethanol is used in fuel industry, 20% percent of it is used in medical and
chemical engineering and 14% of it is used in drinking alcohol industry.
Figure 1 World ethanol production by country
5. 3
Figure 2 Ethanol usage area
Figure 3 World ethanol demand by region
According to Figure 3, Asia Pacific regionβs demand is important for the plant due to
location.
66
20
14
Ethanol fuel
Medical and chemical
engineering
Drinking alcohol
6. 4
2.2 Isopropyl Alcohol
Isopropyl alcohol is produced in several countries. In Middle East, 3% of the overall
isopropyl consumed according to 2018 data. It is used in basically four different industry which are
cosmetic and personal care, pharmaceuticals, automotive and chemicals as shown in Figure 5.
The market of isopropyl alcohol is expected to expand at 3.09% compound annual growth rate
over the period between 2016 and 2021.
Figure 4 World consumption of IPA
Figure 5 IPA usage area
40
30
20
10
Cosmatics and personal care Pharmaceuticals
Automotive Chemicals
7. 5
2.3 Ethyl Acetate
Ethyl Acetate is an organic ester compound with which is commonly used as a solvent for
cleaning, paint removal and coatings. Global demand for ethyl acetate grows at 3-4% per year in
market usage as a solvent.
2.4 Methoxy Propanol
Methoxy propanol is used in industrial products including surface coatings, paintings,
inks, synthetic resin and rubber adhesives and cleaners for electronics. The worldwide annual
methoxy propanol production amount is approximately from 100,000 to 500,000 tones. Main
producers for methoxy propanol are United States, Germany, Japan and China and located in
the regions North America, Europe and Asia. Annual growth rate according to producer
specifications were 0.7%-2%.
2.5 N-Propanol
N-propanol is used in several industries such as ink, plastic and especially coating. As
shown in Figure 7, the most important market area for the n-propanol is Asia Pacific according to
transparency market research in 2016. Also, global propanol market will expand between the
period of 2017 and 2025.
Figure 6 Ethyl acetate capacity by region
8. 6
Figure 7 Propanol market share
2.6 Acetic Acid
The demand to this solvent is increasing 600,000 tonnes/year but price of the acetic acid
is decreasing year by year. Acetic acid demand by region is shown in Figure 8.
By using solvent recovery system these solvents can be recovered and used in process.
Although demand is not so high as percentage, amounts are high as number and these amounts
are sufficient to install a recovery plant. Moreover, some recovered products can be sold to other
companies.
Figure 8 Acetic acid demand by region
9. 7
3 COMPETITION
A solvent recovery system is a process system that takes effluent and extracts useful
solvents and raw materials back out of the process waste stream. Thus, the product will be the
useful solvent and raw material of specific process. Solvents are relied upon in a great variety of
processes, from printing and manufacturing to electronics and machining, for their superior
cleaning and curing properties. Industry professionals from diverse organizations continue to
agree that no substitute has been found to replace solvents in such applications as coating, line
flushing, reactor cleaning, stabilizing, degreasing, and parts cleaning.
The usage areas of solvent recovery systems
Paint and coating operations use a significant amount of paint thinner, acetone, toluene,
xylene and other solvents for spray gun cleaning and routine line flushing. For these products,
solvent recovery system can be used.
Lithographic and flexographic printing operations use a significant amount of press
wash/blanket wash and other solvents for press cleaning. Used solvent combined with ink waste
is often a large contributor to a facilityβs waste stream. With the solvent recovery unit, printing
operations can reclaim their cleaning solvents from the ink and reuse them.
Industry operations use a significant amount of acetone and other solvents for cleaning
molds and tools. Used solvent combined with resin waste is often a significant waste stream in
the facility. Costs for acetone and for hazardous waste disposal can be very costly and erode
profits.
Competitors in the market
CBG Biotech (Industrial Solvent Recycles) is a company that manufactures solvent
recovery systems. Koch Modular Process Systems, Epic Process Systems, Kimura Chemical
Plants Co. LTD. are the other competitors for solvent recovery systems manufacturers. Rather
than buying the solvent recovery system, the option of renting is also available from OFRU
Recycling. The prices differ from usage of system since there are so many different application
areas.
Solvent recovery systems can reduce the demand for purchase of new solvents & process
inputs by recovering chemicals that can be reused in production or to flush the system between
runs. They can also help manufacturers meet regulatory requirements or process standards by
cleaning waste streams before they are released from the plant.
The facility requirements for built a solvent recovery system
The buyer will need to consider their level of automation; their material handling capabilities
and how they might accommodate piping, storage tanks and manpower requirements; and their
safety standards. Additionally, a hazardous operation review must be conducted in order to assess
the risks of the solvent recycling process, and to determine sufficient safeguards.
10. 8
4 PRODUCTION METHOD
There are different methods for solvent recovery system according to solventβs properties.
These methods are:
β’ Distillation Recovery System
One of the basic methods used during solvent recovery is the distillation method. Which
of these methods can be used depends on the size of the plant, the nature of the material being
recycled, the feasibility and environmental factors. Distillation is a separation method used by
difference of boiling points of solvent. Solvents to be recovered in solvent distillation systems
have a boiling point of at most 300-375 F. These distillable solvents also consist of varnishes
and thinners, enamel reducers, alcohols including methanol, toluene, hexane, xylene, ketone
organic compounds including acetone, chlorinated solvents and Freon.
β’ Batch Distillation
β’ Continuous Distillation
β’ Organic Solvent Recovery with Using Membranes
To operate membrane-based separation, which is a continuous process, system a
moderate initial capital investment involving the membrane cell, filter and mister, etc. In addition,
the capital cost membrane usage is the most energy efficient way because it was not needed
energy supply to separate the solvents. The membrane system decreases the consumption of
energy by 20% per unit volume of product, increase the product quality and yield. Membranes
must be lyophilic and hydrophobic to filtrate the solvents from the humid air. Unlike the distillation,
membrane usage can eliminate the azeotrope effect from the separation process.
β’ Organic Solvent Nanofiltration
β’ Pervaporation
Adsorption recovery system is chosen instead of other methods. The one of reasons is
solvent mixture is azeotropic. Azeotropic mixtures are mixtures which are identical in both liquid
and gas phase which cannot be separated by distillation. Furthermore, since the mixture is
azeotropic and all the substances used are volatile components, the boiling points are very close
to each other, so it is almost impossible to make an efficient separation with the distillation recovery
system. The reason why membrane system is not used, although it is more efficient in terms of
energy, the cost of the membranes is expensive, and the system is short-lived due to the high
amount of production.
11. 9
β’ Adsorption System with Activated Carbon
Solvent recovery process with activated carbon is a common example of thermal swing
adsorption process. This is based on temperature change to increase the efficiency of activated
carbon and separation. The high heat and mass transfer coefficients possible in column open the
possibility of using the TSA process for gas purification. The basic TSA cycle consists of four
following steps which are adsorption of solvent onto adsorbent at temperature T1, a temperature
increase with hot purge gas, desorption with purge fluid feed, N2, at T2 after final regeneration
cooling to T1 and cycle continue. Before starting desorption process the bed must be swept by
cold nitrogen before increasing the temperature to eliminate risk of combustion if there left any
oxygen in the system. Figure 9 illustrates each step of the adsorption/ desorption cycle.
Figure 9 Main Parts of Thermal Swing Adsorption System
The adsorbent was used as activated carbon which was commonly used in commercial
solvent recovery systems and volatile organic compound emission control which this process. The
other reason for selection of activated carbon as adsorbent was the solvents in the air adsorbed
physically; in other words, there was no chemisorption. Additionally, the stripping gas was used
as nitrogen which was used as the heat source for desorption. Nitrogen was more efficient than
steam for desorption usage.
One disadvantage of TSA process is that large amount of energy per unit quantity
adsorbate is consumed. Additionally, since the adsorbent is subjected to several repeated thermal
cycling, reduction in life and capacity is a practical problem. Also, during the
desorption/regeneration step hydrocarbons exposed to temperature elevation tis can cause coke
formation in process.
13. 11
Table 1 SWOT analysis
STRENGTHS WEAKNESSES
+ Due to the recovery, there is no waste
disposal.
+ Demand interval is longer since solvents
are reused in the system.
+ There is profit by selling.
+ The process is nature-friendly, it obeys
regulations established by ministry of
environment and forestry.
+ Transportation is done easily due to plant
location.
- Because of the location which has limited
social activities, employee may not be
happy.
- Solvents are explosive.
OPPORTUNITIES THREATS
+ Land is free by government support. It
decreases the Fixed Capital Investment.
+ Low taxes are available.
-Demand may decrease with time due to
growing market field.
- A costly investment may be risky due to
political issues. These political issues cause
an untrusted environment.
5 PLANT LOCATION SELECTION
In Turkey, there are six districts for plant investment. These districts are classified by
development of city. Government allocates resource for these districts according to their economic
sorting.
The aim was to find favored area that is cheap and at a good location for transportation.
To decrease the transportation costs and eliminate the land price, Mut/Mersin was chosen as plant
location. Since it is in the fourth industrial area, government also exempts the firms from VAT and
tariff. Also, they give 40% discount on other taxes. According to official data in 2017, population
of Mut determined as 62,228 which is important for hiring employees. Moreover, in Mut
government supplies electricity and water for a much lower price than any other place since this
is area is for organizational industrial area. There are several small companies in Mersin organized
area to sell the products which are working in plastic and chemical industry. Considered in terms
of transportation it is a nice to choose Mut as location.
14. 12
6 TECHNOLOGY AND PATENT SITUATION
6.1 Technology
Many industrial processes utilize volatile solvents. In past, the solvent vapors were simply
emitted to the atmosphere as they are being evaporated. This in many cases caused pollutants of
the plant air breathed by personnel, polluted the atmosphere and entailed the loss of a valuable
product. In systems which are operating above a certain amount of contaminants, this method is
prohibited by local laws.
Many plants are treating their exhaust gases to remove the solvent before the gases can
be vented to the atmosphere. One of the treatment systems involves adsorption of the solvent
followed by stream desorption, condensation and separation of the solvent from water.
It is needed an improved solvent separation and recovery system which does not require
steam distillation or water separation from recovered solvent. The system to be used in this report,
utilizes a bed of absorbent for separation of the solvent vapor from the outlet gas from the
processing plant. Recovery is accomplished by distilling the solvent from the bed of absorbent at
reduced pressure and moderate temperature. The vapors are condensed and collected.
6.2 Patent
As a result of patent investigations on solvent recovery systems, a relevant patent has
been found. In this patent which was published in 1973 in America, all necessary technical
information is explained. The system design can be done using this information. By these way, it
can be said that there is no need to start from scratch for the solvent recovery system.
In the related patent document, mentioned solvent recovery system comprising an
absorbent bed for stripping the solvent from an air stream and a vacuum distillation and
condensation unit for desorbing the solvent from the bed and recovering the solvent for reuse and
regenerating the bed for the next absorption cycle.
This invention relates to a vapor recovery system and more specifically to a continuous
system for removing and recovering organic contaminants from output gas streams of chemical
process plants.
There is a very important point. As more than 25 years have passed since the publication
of the patent, no license fee is required.
15. 13
Figure 11 A diagram shows the system in the patent document
Figure 12 Graph of the Percent Recovery vs Temperature for the recovery of C14-C16 hydrocarbons at 1 torr from a bed of
activated carbon
7 RAW MATERIALS
The raw materials of products are ethanol, isopropanol, ethyl acetate, methoxy propanol,
n-propanol and acetic acid. These materials flow as waste from the production. The below table
shows the materials cost, annual amount and expenditure.
16. 14
Table 2 Material price, amount and expenditure
Compound
Demand Price
(TL/kg)
Amount of waste
(tonnes/year)
Annual Expenditure
(TL/year)
Ethanol 16.89 1079.2 18,227,688
Isopropyl
alcohol
8.25 781.39 6,446,467
Ethyl acetate 7.26 802.416 5,825,540
Methoxy
propanol
5 413.472 2,067,360
n-propanol 1.1 154.176 169,593
Acetic acid 6.05 273.312 1,653,537
8 SAFETY AND SECURITY CONSIDERATIONS FOR ENVIRONMENTAL SIDES
8.1 Ethanol
Pure ethanol is nontoxic and biodegradable, and it quickly breaks down into harmless
substances if spilled. Producing and burning ethanol results in emissions of carbon dioxide, a
greenhouse gas. However, ethanol is considered atmospheric carbon-neutral because corn and
sugarcane, the two major feedstocks for ethanol production, absorb CO2 as they grow and may
offset the CO2 produced when ethanol is made and burned. Comparing ethanol to gasoline,
ethanol has higher octane levels than gasoline and burns cleaner, but it has higher evaporative
emissions from fuel tanks and dispensing equipment. These evaporative emissions contribute to
the formation of harmful, ground-level ozone and smog. Similar to gasoline, ethanol is highly
flammable liquid and must be transported carefully.
8.2 Isopropyl Alcohol
Pure isopropyl alcohol is a toxic substance to humans, as it is known to readily absorb
through the skin. Because it affects the central nervous system. For this reason, it must be
operated with special equipment in the areas where it is used, and amount in the air should be
limited to a certain rate. This material needs to be recovered and released into the atmosphere at
the minimum amount possible. As an alcohol, it is highly flammable in the presence of heat,
sparks, or an open flame. Metal containers involving the transfer of isopropyl alcohol should be
grounded and bonded. Isopropyl alcohol must also be kept out confined spaces, such as sewers,
because of the possibility of an explosion.
8.3 Ethyl Acetate
Ethyl acetate has the potential to be seriously hazardous if handled incorrectly, especially
in the case of accidental exposure. It is highly flammable, as well as toxic when ingestion or
inhaled, and this chemical can be seriously damaging to internal organs in the case of repeated
or prolonged exposure. Ethyl acetate can also cause irritation when it comes into contact with the
eyes or skin.
8.4 Methoxy Propanol
Methoxy propanol is a flammable liquid and poisonous gases are produced in fire. Inhaling
methoxy propanol can irritate the nose, throat and lungs causing coughing, wheezing and
17. 15
shortness of breath. Moreover, exposure can cause headache, dizziness, light-headedness, and
passing out.
8.5 n-Propanol
n-Propanol occurs in naturally in crude fossil fuels, as the fermentation and decomposition
product of various fruits and vegetables and it is used in food and drug industry as a flavouring
substance. Taking into consideration all available toxicity and exposure information on n-Propanol,
it is determined that there is a reasonable certainty that no harm to any population subgroup will
result from aggregate exposure to n-Propanol used as an inert ingredient in pesticide formulations
when considering dietary exposure and all other nonoccupational sources of pesticide exposure
for which there is reliable information.
8.6 Acetic Acid
Acetic acid is not very harmful for the environment as it can be found in living organisms,
but of course it depends on its concentration. Only in high concentrations can harm the animals
or humans, but anaerobic degrades the acetic acid in nature, i.e. it is biodegradable.
Since they are corrosive materials, it is better to use stainless steel as packaging material.
It decreases the risk of leakage.
9 STORING, PACKAGING, SHIPPING REQUIREMENTS
9.1 Storing, Packaging, Shipping Requirements
9.1.1 Storing
Each solvent product obtained from the recovery system has some different chemical
properties. Some of them are flammable and may be corrosive. Stainless steel drums should be
preferred instead of plastic or ordinary steel material so that the storage tanks have a long life and
the products can be stored safely.
For the storage of solvent products, 6 custom designed stainless-steel tanks will be used.
These tanks will be manufactured in the desired special volumes, thickness and other quality
parameters.
9.1.2 Packaging
Up to 5% of the solvent products comes from the recovery system will be sold in domestic
markets. Distribution of these products will be provided by a local logistics company.
In order to ensure that hazardous chemical products are safely transported from Mersin
port to Istanbul and Izmir, ATAKO Transport & Shipping can be preferred. ATAKO has also
warehouses and offices in Mersin. The service prices vary according to different supply demand
conditions during the year. However, these changes are reflected in the product price and the risk
can be eliminated.
ATAKO, through its service agencies and warehouses in Mersin, Istanbul, Izmir and
Gemlik, is performing services of transportation by all type of containers (flat rack-open top-reefer)
18. 16
between Turkish and all Western Mediterranean, Northern European, North American, Middle-
Eastern and Far-Eastern ports.
Figure 13 ATAKO brand logo
9.1.3 Shipping
Since the raw materials for the first installation will be purchased two or three times,
shipping charges can be neglected. Therefore, a detailed calculation will not be included in this
report.
10 FACILITIES AND EQUIPMENT
After the literature search, it is found that 4 adsorption columns 4 desorption column, 4
cooling tower, 3 pumps,12 vessel and 6 tanks storage with capacity of 6 tons each are needed for
production. Since the government support to build the facility in Mut, there is no land price. At the
end purchased equipment cost (PEC) is calculated as 726000 βΊ. The reason of calculating PEC
is that use percentage of purchased equipment cost method in order to calculate capital
investment and production cost.
19. 17
,
11 INVESTMENT COST (CAPEX)
Table 3 CAPEX
DIRECT COST
Purchased Equipment Cost
Adsorber column, vessels and carbon 726,000 TL
Auxiliary equipment 55,200 TL
Sum=A 781,200 TL
Instrumentation, 0.01A 7,812 TL
Sales Taxes, 0.03A 23,436 TL
Freight, 0.05A 39,060 TL
Purchased equipment cost=B 851,508 TL
INDIRECT COST
Engineering, 0.01B 8,515 TL
Construction 31,600 TL
Contractor fees, 0.01B 8,515 TL
Start-up, 0.02B 17,030 TL
Performance test, 0.01B 8,515 TL
Contingencies, 0.03B 25,545TL
Total Indirect Cost 99,720 TL
WORKING CAPITAL
Inventories 290,376 TL
Salaries 290,376 TL
Total Working Capital Cost 580,752 TL
Total Start-up Cost 290,376 TL
Total Capital Investment 1,822,350 TL
20. 18
12 PRODUCTION COST (OPEX)
Table 4 OPEX
MANUFACTURING COST
Raw materials
β’ Carbon replacement cost
34,390,185 TL
β’ 23,000 TL
Operation and supervision labor 125,300 TL
Utilities 52,600 TL
Maintenance and repair 290,376 TL
OperatiΔ±ng supplies 12,550 TL
Patents and royalties 0
Plant overhead cost 185,300 TL
Rent 0
Insurance 7,812 TL
Property taxes and other duties 143,700 TL
Depreciation 78,120 TL
GENERAL EXPENSES
Distribution and marketing cost 370,594 TL
Research and development cost 1,111,783 TL
OTHER
Contingencies 370,600 TL
Total Production Cost 37,059,440 TL
21. 19
13 IMPLEMENTATION PLAN
Feasibility study is the most important step for a plant design process. This study can be
considered as the final decision in the design process. This feasibility report is prepared with a
group of 7 people about the solvent recovery system.
As a summary, the main purpose of this report is to develop an economic process by
minimizing the environmental damage of solvents thanks to the solvent recovery system. The
parts in this report have been prepared by applying the submitted workplan. This report is
completed within 3 weeks. All the steps in a feasibility report are taken into account.
β’ Market Survey is investigated and prepared. In this section, the following topics are
highlighted in general: present and future demand & supply, new uses, price range of
products and consumer characteristic.
β’ Competition is done by considering productsβ characteristics, risk analysis of raw materials
and environmental research.
β’ Technology and Patent Situations part is investigated, and plant location is selected by
considering minimum total cost of production and distribution.
β’ Production Method (Preliminary Design) is investigated in order to estimate the investment
and production cost.
β’ SWOT Analysis is prepared to evaluate a company's competitive position by identifying its
strengths, weaknesses, opportunities and threats.
β’ Organization and Labor Requirements is taken into account.
β’ Raw Materials are investigated. Their selling prices are found for calculation, and their
availabilities in the world are illustrated by pie charts.
β’ Storing & Packaging of raw materials is investigated because of their hazardous structures.
Safety is the one of the most important parameters for design process.
β’ Facilities and equipment are considered. In this section, the following topics are taken into
account in general: land, utilities, services, production equipment and so on.
β’ Investment Cost is found by calculation of CAPEX. This part includes the amounts that
companies use to purchase major physical goods or services that will be used for more
than one year. Production Cost is also found by calculation of OPEX. This part includes
the costs for a company to run its business operations on a daily basis. Then, financial
analysis is done by considering the results of CAPEX and OPEX.
β’ Profit and ROI are considered to see how much is earned by selling how many products.
β’ Optimization is done through the evaluations during the calculations.
β’ Sensitivity is also done by considering financial analysis.
22. 20
14 REFERANCE
Absorption / Adsorption / Stripping columns. (2018). Hse.gov.uk. Retrieved from
http://www.hse.gov.uk/comah/sragtech/systems1.htm#HumanError
ACTIVATED CARBON IN VAPOUR RECOVERY UNITS. (2017). Tank Storage Magazine
Carbon Adsorbers. Epa.state.oh.us. Retrieved from
http://www.epa.state.oh.us/portals/27/engineer/eguides/carbon.pdf
CBG. (n.d.). Parts Cleaning, Composites, Paint & Printing Solutions for Waste Solvent
Recycling. Retrieved from https://www.cbgbiotech.com/products-applications/industrial/solvent-
recyclers
How Solvent Recovery Works, Systems & Plant Price & Other FAQ's Answers. (n.d.). Retrieved
from https://www.epicmodularprocess.com/systems/solvent-recovery-systems/solvent-recovery-
system-faq#efficiency
Isopropyl Alcohol (IPA). (n.d.). Retrieved from https://ihsmarkit.com/products/isopropyl-alcohol-
ipa-chemical-economics-handbook.html
Modular Construction for the Chemical Processing Industry | Koch Modular. (n.d.). Retrieved
from https://kochmodular.com/
SOLVENT RECOVERY SYSTEM - KlMURA CHEMlCAL PLANTS CO.οΌLTD. (n.d.). Retrieved
from https://www.kcpc.co.jp/en/product/chemical/solvent-recovery-system/
https://www.e-education.psu.edu/egee439/node/646
YILDIRIM, T. (n.d.). DENΔ°Z TAΕIMACILIΔI. Retrieved from
http://www.atako.com.tr/services.html#tab3
23. 21
APPENDIX
CAPEX CALCULATION
β’ Annual Sales Analysis
%5 of total recovered solvents will be sold in Turkey market. The sold amount of the solvents is 175
tones/year.
For each solvent selling price changes.
β’ Fixed Capital Cost Analysis
Turnover ratio is about 0.5 for chemical industries.
β’ Direct Cost Analysis
β’ Purchased Equipment Cost
β’ Auxiliary Equipment Cost
β’ Indirect Cost Analysis
24. 22
β’ Working Capital Cost
β’ Start-up Cost
OPEX CALCULATION
β’ Raw Material Cost
β’ Operation and Supervision Labor Cost
For one worker, net wage is 2200 TL. So,
In this system, total employee is 27.
β’ Maintenance and Repair Cost
β’ Operating Supplies Cost
β’ Plant Overhead Cost
25. 23
β’ Insurance
β’ Property taxes and other duties
Tax is specified as 30% by Government.
β’ Depreciation
Straight line depreciation is used for calculation because it is easy to apply.
Equipment life is determined as 10 life. Also, salvage value is considered as zero.
β’ Distribution and Marketing Cost
β’ Research and Development Cost
π ππ ππππβ πππ π·ππ£ππππππππ‘ πΆππ π‘ = 0.03 β (πππ‘ππ πππππ’ππ‘ πππ π‘)
π ππ ππππβ πππ π·ππ£ππππππππ‘ πΆππ π‘ = 0.03 β (37,059,440 ππΏ)
π ππ ππππβ πππ π·ππ£ππππππππ‘ πΆππ π‘ = 1,111,783 ππΏ
β’ Contingencies
26. 24
β’ Cash Flow Calculation
In solvent recovery system, 5% of recovered solvents is sold therefore 5% of total product cost is taken
during calculation.
β’ Break-Even Point Calculation
At the break-even point, gross profit is zero. Above the break-even point profit results.