Economics of chem. plants

1. Economics of Chemical Plants
Eng. Kareem H. Mokhtar

2. Cost of equipment

3. ESTIMATION OF PURCHASED EQUIPMENT
COSTS
• Factors to be taken under consideration
Size of equipment (e.g.: diameter, height, volume or area of heat transfer).
Material of construction.
Operating conditions (e.g.: pressure).
Cost of equipment can be taken from charts or tables

6. Question 1
• A condenser with fixed tube sheets has an area 25.3 m2, the material
of construction is carbon steel shell and tubes, the operating pressure
is 1 bar.
• Solution
• Cost= 15000 *1 * 0.8 = 12000$

7. Question 2
• A “U tube” cooler, that has an area of 110 m2, it is built from Stainless
steel shell and tubes, the operating pressure 25 bar.
• Solution
• Cost =120000*1.25*0.85= 127,500 $

11. Question 3
• A recovery column of diameter 1m, vessel overall height 20 m, 35
valve plates, vessel and plates are stainless steel, operating pressure 1
bar.
• Solution
• Cost of column= 50000*2* 1= 100,000$
• Cost of 1 plate = 500*1.7 = 850$
• Cost of plates = 850*35= 29750$
• Total cost = 29750+100000 = 129,750$

12. From tables
• Purchased equipment cost= Cost constant * size parameterindex
• Cf= C * Sn

13. Question 4
• Find the cost of a vertical tube evaporator that has a area of 70m2.
• Solution
• Cost = 20000*700.53 =190,078$

14. Question 5
• A recovery column of diameter 1m, vessel overall height 20 m, 38mm
pall rings made of stainless steel, vessel are stainless steel, operating
pressure 1 bar and the packing fills 70% of the volume.
• Solution
• The total cost = 127488.9 $

15. Summary
• Prepare material and energy balances, draw up preliminary flow-sheets,
size major equipment items and select materials of construction.
• Estimate the purchase cost of the major equipment items.
• Calculate the total physical plant cost (PPC)
• Calculate the indirect costs
• The direct plus indirect costs give the total fixed capital.
• Estimate the working capital as a percentage of the fixed capital; 10 to 20
per cent.
• Add the fixed and working capital to get the total investment required.

16. Question 4
• Prepare a study estimate of the total capital investment for a process
plant handling fluids. Knowing that the purchased cost of equipment
is $ 1,000,000.
• Solution
• Equipment cost= 1000000$
• PPC=3.4*1000000= 3400000$
• FCI= 1.45*3400000= 4930000 $
• WCI= 0.15 * 4930000 = 739500$
• TCI= 5.7 million dollar

17. Question 5
• Find the cost of a carbon steel jacketed reactor that has a volume of
50m3.
• Solution
• Cost of 30m3 reactor= 15000*300.4 = 58470.9 $
• Cost of 50 m3 reactor = C2/58470.9 = (50/30)0.6
• = 79441.7$

18. Question 6
• An expansion of factory is needed to be built, knowing that the
factory is working in a solid handling industry, and given that:
Equipment Specifications
Recovery column Diameter 1.1 m
Height 11m
Stainless steel
Working under 7 bar
Saddles, 3.8 cm (filling 70% of the column)
Cone crusher 300 t/h

19. Find the following given that The cost index in
2019 is 835
• A) Find the mentioned equipment cost in 2019
• B) The Physical plant cost
• C) The total fixed cost taking in consideration that no contractor fee
will be paid
• D) The Total Capital Investment

20. Answer
• Recovery column = 23000 * 1.1 * 2 = 50600$ Packing = 1020 * pi/4 *
1.1*1.1 * 11 *0.7= 7463.9 $
• Cone crusher(200 ton)= 3800 * 2000.85 = 343288.37
• Cone crusher(300 ton)= 343288.37 * (300/200)0.6= 437838.4$
• Equipment Cost in 2019 = 495902.3*835/444.2 = 932189.15$

21. Answer
• B) 932189.15* (2.8-0.85) = 1,817,768.8 $
• C) 2610129.62* (1.3-0.05) = 2,272,211 $
• D) 2,613,042 million $