SlideShare a Scribd company logo
PROCESS DESIGN
SESSIONAL
CHE 408
FEBRUARY 2017
1000 TONS PER YEAR RIBOFLAVIN (VITAMIN B2) CRYSTAL
PRODUCTION PLANT
Department of Chemical Engineering
Bangladesh University of Engineering & Technology
PROJECT TITLE
1000 TONS PER YEAR RIBOFLAVIN (VITAMIN B2) CRYSTAL PRODUCTION PLANT
PROJECT DEFINITION
A Riboflavin crystal (Vitamin B2) production plant is to be set-up at Tongi ,
Gazipur in Bangladesh, having capacity 3 tons per day, corresponding to 1000
tons of Riboflavin Crystal per year including all offsite auxiliaries, utilities and
support facilities. Glucose, vegetable oils and nutrients will be used as
feedstock. Candida famata fermentation process will be applied.
DESIGN BASIS
GEOLOGICAL DATA
SITE CHARACTERSTICS
❑ Nearest River – Turag
❑Minimum Water Level – 7-10 Meters
❑Maximum Water Level – 65-70 Meters
❑ Average Depth Of Wells – 30-35 Meters
❑Water Level Record During Flood – 10 Ft (Above Ground Level)
DESIGN BASIS
GEOLOGICAL DATA
SOIL CHARACTERSTICS
❑ Deposits Of The Pleistocence Age .
❑ Surface Clays – 12-15 Meters Thick Underlain By Slits And Fine Sands (Followed By 35
Meters Coarse Materials)
❑Arsenic Content Is Below WHO Limit .
SEISMIC CONDITION
❑Maximum Earth Quake – 6 In Richter Scale
❑Seismic Zone – 3 Seismic Zones In Bangladesh & The Site Is In Zone II
❑Seismic Coefficient – 0.15 G
DESIGN BASIS
CLIMATIC CONDITIONS
❑Rainy Season - Hot And Humid (Having About 90 Percent Of The Annual Rainfall) .
❑Winter - Cool And Dry.
❑Summer - Hot And Dry (Interrupted By Occasional Heavy Rainfall) .
❑Annual Average Temperature - Maximum 36 °C & Minimum Temperature Is About 12.70 °C
❑Annual Rainfall - Approximately 2,376 Mm.
❑Soil Condition - Soil Is Fertile (Not Used For Any Major Economical Activities) .
❑Corrosion Tendency - Iron And Arsenic Are The Major Water Quality Concern For Drinking
Purposes
DESIGN BASIS
CLIMATIC CONDITIONS
❖EQUIPMENTS
❑Maximum Dry Bulb Temperature – 38-40 ° C (Summer)
❑Minimum Dry Bulb Temperature – 4-7 °C (Winter)
❖HVAC
❑Maximum Dry Bulb Temperature – 25° C (Summer)
❑Minimum Dry Bulb Temperature – 20°C (Winter)
❑Relative Humidity (Maximum) – 90% (Summer)
❑Relative Humidity (Minimum) – 45 % (Summer)
DESIGN BASIS
CLIMATIC CONDITIONS
METEOROLOGICAL CONDITIONS
Ambient
Temperature
Humidity Rainfall Barometric Pressure Wind Direction
Maximum : 38-40°C
Minimum : 8-10°C
Average : 30°C
Average
RH :
75-78%
Average Annual : 1555 mm
Maximum monthly : 335 mm
Minimum (monthly) :1.5 mm
Maximum Daily : 450 m
Maximum intensity : 0.5mm/min
Minimum Pressure :
740 mm (Hg)
Design Barometric
Pressure :
760 mm (Hg)
Summer : South to
North
Winter : North to
South
Design wind velocity
: 3.5-4.5 m/sec
DESIGN BASIS
UTILITY CONDITIONS
Steam Water Electric power Air
Saturated
Steam
150°C
Ground Water (25°C)
Potable Water (WHO ,ECR-97)
Waste Water Treatment
❑ Raw Water
pH : 5-6.5
COD < 1500 mg/L
BOD < 900 mg/L
DO < 4
❑ Discharge Water
pH : 6.5-8
COD < 200 mg/L
BOD < 50 mg/L
DO > 4
440V : 3 phase, 50 cycle
230V :1 phase, 50 cycle for motors <0.4
kW
120V : 1 phase, 50 cycle for
instrumentations and control
❖ Instrument air :
❑ Pressure : 715 kPa
❑ Temperature : 25°C
❑ Dew Point : 4°C
❖ Plant Air :
Pressure : 250kPa
Temperature : 30°C
DESIGN BASIS
RAW MATERIALS
❑ Glucose Syrup
❑ Water
❑ Dl-methoinine
❑ Malt Extract
❑ Yeast Extract
❑ Peptone
❑ Sunflower Oil
❑ Manganese Sulfate
❑ Potassium Biphosphate
❑ Candida famata (Yeast)
Specification sheet
of Rotary Dryer
1. CUSTOMER Job no.
Reference no.
Address : Proposal no.
Plant location: Date
Service of Unit: Item no.
Size: 2m x 13.1m
2. CAPACITY DETAILS 3. FEED DETAILS
Operation Continuous Nature of feed Solid + Suspension
Feed rate 0.6039 ton/hr Moisture of feed 0.35
Evaporation Rate: 167.7 kg/hr Density 80lb/ft3
Efficiency(moisture removed) 70% Viscosity Not required
Volume of dryer 4.118 m3 pH Not required
Full Capacity 5.284 ton
4. DRY PRODUCT DETAILS 5. MODE OF AIR HEATING Steam
Moisture content 0.10 (Dry
basis)
6. POWER REQUIREMENTS
Desired particle size Not required Power of the Blower 2.47 KW
Heat sensitivity Upto 280 ̊C Power of the Exhaust Fan 2.69 KW
Solvent recovery Not Required Power Required to Drive
the Dryer
30.5KW
7. DESIGN DATA 8. ANY OTHER SPECIFICATION
Operating pressure 1 atm Dia of the Feed pipe 10 inches
Design Pressure 1.5 atm Dia of the air inlet pipe 12 inches
Operating Temperature Max 170 ̊C Dia of the air Outlet pipe 13 inches
Design Temperature 130 ̊C Rotation of the Dryer 10 rpm
Shell Material AISI SS317 Inner Dia of the dryer 2 m
Support Saddle
Support
Outer Dia of the dryer 2.18m
Shell type Cylindrical Number of Flights 20
Lining: Asbestos Radial Height of the flights 9.84 inches
Internal corrosion allowance 25 mm The Volumetric Heat
transfer Coefficient of
dryer
4.2213
Btu/ft3.h. ºF
Insulation 80 mm
Thickness 10 mm
SIDE VIEW OF ROTARY DRYER
CROSS SECTION OF ROTARY DRYER
P & I DIAGRAM OF ROTARY DRYER
SELECTION OF PROCESS AND PROCESS DESCRIPTION
❑Candida famata Fermentation
Process .
❑The Product Is Obtained As Dry
Crystal .
❑Fermentation Is Operated Batch-wise
❑Equipment AISI SS 317
SELECTION OF PROCESS AND PROCESS DESCRIPTION
Upstream Processing Fermentation Downstream Processing
❑ Preparation
❑ Sterilization
❑ Carbon and Nitrogen
Source (Raw Materials)
❑ Main Fermentation
(Fermentation Tank)
❖ Broth Harvest
❑ Crystallize
❑ Centrifuge (Decanter)
Oil and Aqueous fraction
❑ Dryer (Rotary Dryer)
❖ Dry Crystal (Product)
PROCESS BLOCK DIAGRAM
Nutrient Tank
T1
Glucose Syrup Tank
T2
Fermenter
F1
HS1
HS2
Air Filter
AF1
Air
Compressor
AC1
Air
Glucose
Syrup
Nutrients
Water
Harvest Tank
T3
Crystallizer
C1
Storage Tank
T4
Decanter
D1
Storage Tank
T5
Rotary Dryer
RD1
HE1
Exhaust Gas
Oil
Fraction
Aqueous
Fraction
Dry
Air
Exhaust Gas
Product
PROCESS FLOW DIAGRAM
1
7
2
6
3
54
11
12
14
15
16
17
18
19
20
21
8 9
22
23
24
32
30
31
25
26
27
T1T2
T3
T4
T5
F1
P1
P2
P3
P4 P5
P6
P7
P8
HS1
HS2
C1
D1
RD1
HE1
AC1
AF1
13
10
28
29
B1
B2
LIST OF PROCESS LICENSORS
❖Production Of Riboflavin By Fermentation Process
❑Merck & Co Inc , New Jersey , USA ; US2595499
❑Hoffmann La Roche , Basel , Switzerland ; US2493274
❖A Fermentation Process For Riboflavin-producing Organisms
❑Zeagen, Inc. Wo1992001060
❖Method For The Preparation Of Riboflavin
❑Dai Nippon Sugar Mfg Co Ltd , Japan ; US3433707
LIST OF MAJOR EQUIPMENTS AND LIST OF VENDORS
No. Equipment Vendor
1 Fermenter Zhenjiang East Biotech Equipment and Technology Co., Ltd. ,
China
2 Crystallizer Zhenjiang Mingchen Machinery Technology Co., Ltd. , China
3 Decanter Centrifuge Jiangsu Huada Centrifuge Co., Ltd. , China
4 Rotary Dryer Jiangsu Zhenxing Drying Equipment Co., Ltd. , China
Identification: Item: Fermenter Date: 15/02/2017
By: ChE,BUET
Function: To produce Riboflavin from Candida famata
Operation: Batch
Type: Batch reactor ( jacketed and cylindrical )
Material Handled: Inlet Outlet
Quantity (kg) 18784904 kg 222950 kg ( Liquid)
18561954 kg (Exhaust Gas)
Pressure (atm) 1 1
Temperature (ºC) 40 50
Design Data:
Tank Turbine
Height 5.0 m Impeller diameter 0.833 m
Diameter 2.50 m Impeller length 0.208 m
Shell thickness 6 mm Impeller width 0.167 m
Capacity safety factor 25% Impeller type Six-blade turbine
Capacity 20 m
3
Speed 25 rpm
Operating pressure 180 kPa Shaft diameter 1.64 cm
Operating Temperature 35 - 50 ºC Power required 0.22 hp
Material of construction: SS 317
Code AISI3
Utilities:
Cooling Jacket Thickness = 1.5 mm , Area available (A) = 17 m
2
Tolerance: Rules of thumb and heuristics
Skirt: 3 mm thick and 2.5 m height (AISI SS317)
SPECIFICATION SHEET
OF
FERMENTER
FRONT VIEW OF FERMENTER
2.5 m
5 m
1.67 m
0.167 m
1.64 cm
2.5 m
2.6 m
cm5
Feed 1 Feed 2
Product
Compressed
Air
2 cm
TOP VIEW OF FERMENTER
0.237 m
0.208 m
2.5 m
0.833 m
P & I DIAGRAM OF FERMENTER
AT
TTTC
FC
PT FC
SIZING OF STORAGE TANKS
Position of
tank
Volume
(m3)
Teui mm Agitator
speed
Power KW
T1 28.6 3314.6 39.83 3.16
T2 160 5884.1 22.40 7.76
T3 204 6380.4 20.69 9.13
T4 245 6782.0 14.67 8.57
T5 125 5419.3 24.36 7.03
Sizing of Centrifugal Pumps
Position of
the pump
Volumetric
flow rate
m3
Required
head m
Power Hp Other
Properti
es
P1 0.003 8.89 0.08 Pressur
e ratio
(P2/P1)
= 2
Pdrop =
12KPa
P2 0.004 9.75 0.97
P3 0.003 10.77 0.67
P4 0.003 10.38 0.08
P5 0.003 8.61 0.07
P6 0.003 10.36 0.08
P7 0.003 8.27 0.28
P8 0.003 8.27 0.28
OTHERS
Equipment name Properties
Air Compressor Pressure ratio, P2/P1 = 2
Power Requirement = 15
Hp
Heat exchanger Heat duty = 7.7x 105 KJ/hr
Surface area = 6.5 m2
Blowers Pressure (assumption) = 20
cm water column
Power requirement = 2 Hp
PLOT PLAN
EQUIPMENT LAYOUT
FRONT VIEW OF DECANTER
TOP VIEW OF DECANTER
P & I DIAGRAM OF DECANTER
SPECIFICATION
SHEET OF DECANTER
Identification Item: Centrifuge Date: 11/02/2017
Function
To remove oil and aqueous fraction from
solution media
Operation: Batch
Material
Parameters Inlet Outlet
Quantity (kg) 1114.7 kh/hr 1114.7 kh/hrHandled
Temperature(ºC) 30 35
Height 3 m Design pressure 10.7 atm
Design Centrifuge Diameter 0.70m
Operating 30-35 ºC
TemperatureData
Shell
33 mm
Capacity safety
10%
thickness factor
Motor
Speed
1200
Power required 10.5 hp
rpm
Material of Stainless Steel
construction
Code AISI SS 317
Utilities Not required
Tolerance 10% of load
Insulation Noise cancelling
FRONT VIEW OF
CRYSTALLIZER
TOP VIEW OF CRYSTALLIZER
P & I
DIAGRAM OF
CRYSTALLIZER
SPECIFICATION
OF
CRYSTALLIZER
Identification: Item: Crystallizer Date: 15/02/2017
Function: To produce Riboflavin Crystal
Operation: Batch
Type: Agitated jacketed cooling crystallizer
Material Handled: Inlet Outlet
Quantity (kg) 2787 kg 824 kg Riboflavin Crystal
355 kg Riboflavin (in suspensio
1609 kg water and others
Pressure (atm) 1 1
Temperature (ºC) 45 25
Design Data:
Tank Turbine
Height 3.0 m Impeller diameter 0.66 m
Diameter 2 m Impeller length 0.165 m
Shell thickness 14 mm Impeller width 0.137 m
Capacity safety factor 25% Impeller type Six-blade turbine
Capacity 4.5 𝒎 𝟑 Speed 100 rpm
Operating pressure 250kPa Shaft diameter 4 cm
Operating Temperature 20 ºC -50 ºC Power required 3 hp
Material of construction: SS 317
Code AISI3
ECONOMIC ANALYSIS
TOTAL EQUIPMENT
COST
Storage tank for glucose 19500
Storage tank for Nutrient 30300
Storage tank before
Crystallizer 33300
Storage tank before
decanter 32100
Storage tank before dryer 28800
Fermenter 940200
crystallizer 127842
Rotary Dryer
269400
Centrifuge 182400
Air Blower 10044
Total equipment cost 1711266
Item Price ($)
Glucose supply Pump 3060
Nutrient supply Pump 3300
Harvest pump 3360
Pump Before crystallizer 3060
Pump after crystallizer 3060
Pump before decanter 3060
Pump after decanter 3240
Pump before dryer 3240
Air compressor 4500
Heat Exchanger 7500
DIRECT COST
TOTAL DIRECT COST = 6639712.08 USD
Item % of equipment cost Cost (USD)
Purchased equipment 100 622504
Land 8 49800
Piping 45 217876
Installation 30 124500
Service facilities 30 186751
Instrumentation 20 62250
Electrical system 30 62250
Building 50 124500
Yard improvement 5 31125
TOTAL INDIRECT COST = 1112322 USD
Indirect cost
Item
% of equipment
cost
Cost (USD)
Engineering 15 256690
Construction
expense
15 256690
Contractors fee
10
171126
Contingency
25
427816
Fixed Capital
Investment 7752035 USD
Working
Capital
Investment
(20% of total
capital
investment)
1938009 USD
Total capital
investment
9690044 USD
TOTAL PRODUCTION COST
Manufacturing cost
Type Percentage USD
Direct cost
Raw material 40% of Total
Production cost 9496243
Operating cost 10% of Total
Production cost 2374061
Utilities 10% of Total
Production cost 2374061
Maintenance &
repairs
10% of Fixed
Capital
investment
775203.
5
Fixed charges 10% of Total
Production cost
2374066
1
Plant overhead 10% of Total
Production cost
2374066
1
General Expenses
Administrative cost 6% of Total
Production cost 14244396
Distribution and selling 5% of Total
Production cost 11870330
Research and developing 5% of Total
Production cost 11870330
Financing 2% of Total
capital
investment
193800
Total production cost
23740507
ECONOMIC ANALYSIS
• ANNUAL REVENUE
SALES PRICE $30/KG RIBOFLAVIN CRYSTAL(90% PURE)
SO TOTAL REVENUE $27215550/YR
• TOTAL PROFIT/YR = $27215550- $ 23740607
=$ 3474943/YR
SALVAGE VALUE = 10% OF (PURCHASED EQUIPMENT + LAND +
BUILDING) =$ 304605
ECONOMIC ANALYSIS
• % RATE OF RETURN
• TAX RETURN = 15%
• NET PROFIT AFTER TAX =
$ 2948984
RATE OF RETURN = NET
PROFIT AFTER TAX/TOTAL
INVESTMENT COST
= 30.1%
Depreciation calculation
Minimum attractive rate of return (MARR) =
15%
Plant useful life = 15 years
Depreciation = FCI (A/P, 15 %, 15) – Salvage
(A/F, 15%, 15)
= $1238476.51- $6402
= $1232074
CASH FLOW DIAGRAM AND IRR
-10000000
0
10000000
20000000
30000000
40000000
0.00 0.20 0.40 0.60 0.80 1.00 1.20
IRR Analysis
By PW method,
PW = -Total capital investment + Annual Income (P/A,
i%, 15) + Salvage Value (P/F, i%,15)
=0 , IRR is 29%
ECONOMIC ANALYSIS
ERR is 19.4% here
Project is feasible
Payback period
End of year Net Cash Flow Cumulative PW
without interest
Present Worth
of cash flow
with interest
( i=15%/yr)
Cumulative PW
with interest
(i=15%/yr)
0 -9690044 -9690044 -9690044 -9690044
1 2948984 -6741065 2564333.913 -7125715.087
2 2948984 -3792081 2229855.577 -4895859.51
3 2948984 -843097 1939004.849 -2956854.661
4 2948984 +2105887 1686091.173 -1270763.488
5 2948984 5054871 1466166.238 +195402.7496
THANK YOU

More Related Content

What's hot

Bioreactors (Fermenters)
Bioreactors (Fermenters)Bioreactors (Fermenters)
Bioreactors (Fermenters)
Shyam Panwar
 
Production of PHB
Production of PHBProduction of PHB
Production of PHB
Sonia Patel
 

What's hot (20)

Fungal pretreatment of lignocellulosic biomass
Fungal pretreatment of lignocellulosic biomassFungal pretreatment of lignocellulosic biomass
Fungal pretreatment of lignocellulosic biomass
 
Types of fermenters
Types of fermentersTypes of fermenters
Types of fermenters
 
Fermentation systems by Sagacious Sadia
Fermentation systems by Sagacious Sadia Fermentation systems by Sagacious Sadia
Fermentation systems by Sagacious Sadia
 
Silica in steam
Silica in steamSilica in steam
Silica in steam
 
Bioreactors (Fermenters)
Bioreactors (Fermenters)Bioreactors (Fermenters)
Bioreactors (Fermenters)
 
Membranes for Pervaporation
Membranes for PervaporationMembranes for Pervaporation
Membranes for Pervaporation
 
Production of PHB
Production of PHBProduction of PHB
Production of PHB
 
GE / Texaco Gasifier Feed to a Lurgi Methanol Plant and its Effect on Methano...
GE / Texaco Gasifier Feed to a Lurgi Methanol Plant and its Effect on Methano...GE / Texaco Gasifier Feed to a Lurgi Methanol Plant and its Effect on Methano...
GE / Texaco Gasifier Feed to a Lurgi Methanol Plant and its Effect on Methano...
 
heat exchangers
heat exchangers  heat exchangers
heat exchangers
 
Selection of Reboilers for Distillation Columns
Selection of Reboilers for Distillation ColumnsSelection of Reboilers for Distillation Columns
Selection of Reboilers for Distillation Columns
 
Key lessons to optimise ammonia plant
Key lessons to optimise ammonia plantKey lessons to optimise ammonia plant
Key lessons to optimise ammonia plant
 
Physical methods of food preservation
Physical methods of food preservationPhysical methods of food preservation
Physical methods of food preservation
 
upstream & downstream process of antibiotics
upstream & downstream process of antibioticsupstream & downstream process of antibiotics
upstream & downstream process of antibiotics
 
Cryogenic grinding
Cryogenic grindingCryogenic grinding
Cryogenic grinding
 
BREAD PRODUCTION AND ITS SPOILAGE
BREAD PRODUCTION AND ITS SPOILAGEBREAD PRODUCTION AND ITS SPOILAGE
BREAD PRODUCTION AND ITS SPOILAGE
 
Bioprocess technology
Bioprocess technologyBioprocess technology
Bioprocess technology
 
Evaporators
Evaporators Evaporators
Evaporators
 
Spray drying pdf In food industry.
Spray drying pdf In food industry. Spray drying pdf In food industry.
Spray drying pdf In food industry.
 
Urea process flow diagram
Urea process flow diagramUrea process flow diagram
Urea process flow diagram
 
Cellulase
CellulaseCellulase
Cellulase
 

Similar to 1000 Tons Per Year Riboflavin (Vitamin B2) Crystal Production Plant | Process Design | Supervisor: Dr. Nafisa Islam

334529321 production-of-acetic-acid-pptx
334529321 production-of-acetic-acid-pptx334529321 production-of-acetic-acid-pptx
334529321 production-of-acetic-acid-pptx
BatuhanKse1
 
Microsoft PowerPoint - DEV of Dual Filling
Microsoft PowerPoint - DEV of Dual FillingMicrosoft PowerPoint - DEV of Dual Filling
Microsoft PowerPoint - DEV of Dual Filling
PRAN-RFL Group
 
processoptimization-rawmillcoalmill-moduleday2-230314110558-e03314c6.pdf
processoptimization-rawmillcoalmill-moduleday2-230314110558-e03314c6.pdfprocessoptimization-rawmillcoalmill-moduleday2-230314110558-e03314c6.pdf
processoptimization-rawmillcoalmill-moduleday2-230314110558-e03314c6.pdf
Santosh190549
 

Similar to 1000 Tons Per Year Riboflavin (Vitamin B2) Crystal Production Plant | Process Design | Supervisor: Dr. Nafisa Islam (20)

334529321 production-of-acetic-acid-pptx
334529321 production-of-acetic-acid-pptx334529321 production-of-acetic-acid-pptx
334529321 production-of-acetic-acid-pptx
 
Biodigester
BiodigesterBiodigester
Biodigester
 
400 bpm dual filling sytem(completed)
400 bpm dual filling sytem(completed)400 bpm dual filling sytem(completed)
400 bpm dual filling sytem(completed)
 
1 Hoja especificaciones.pdf
1 Hoja especificaciones.pdf1 Hoja especificaciones.pdf
1 Hoja especificaciones.pdf
 
Design-ppt_SAmodified.pptx
Design-ppt_SAmodified.pptxDesign-ppt_SAmodified.pptx
Design-ppt_SAmodified.pptx
 
Heat Recovery System to Save the Fuel (Bagasse) by Eliminating the Feedwater ...
Heat Recovery System to Save the Fuel (Bagasse) by Eliminating the Feedwater ...Heat Recovery System to Save the Fuel (Bagasse) by Eliminating the Feedwater ...
Heat Recovery System to Save the Fuel (Bagasse) by Eliminating the Feedwater ...
 
Ject report
Ject reportJect report
Ject report
 
Wastewater recycling plant
Wastewater recycling plantWastewater recycling plant
Wastewater recycling plant
 
Basic dryer for HVAC
Basic dryer for HVACBasic dryer for HVAC
Basic dryer for HVAC
 
Lean Six Sigma Project.pptx
Lean Six Sigma Project.pptxLean Six Sigma Project.pptx
Lean Six Sigma Project.pptx
 
pump design
pump designpump design
pump design
 
Microsoft PowerPoint - DEV of Dual Filling
Microsoft PowerPoint - DEV of Dual FillingMicrosoft PowerPoint - DEV of Dual Filling
Microsoft PowerPoint - DEV of Dual Filling
 
Inlet Air Cooling system from Ikeuchi Improve gas Turbine efficiency
Inlet Air Cooling system from Ikeuchi Improve gas Turbine efficiencyInlet Air Cooling system from Ikeuchi Improve gas Turbine efficiency
Inlet Air Cooling system from Ikeuchi Improve gas Turbine efficiency
 
Presentation PX
Presentation PXPresentation PX
Presentation PX
 
processoptimization-rawmillcoalmill-moduleday2-230314110558-e03314c6.pdf
processoptimization-rawmillcoalmill-moduleday2-230314110558-e03314c6.pdfprocessoptimization-rawmillcoalmill-moduleday2-230314110558-e03314c6.pdf
processoptimization-rawmillcoalmill-moduleday2-230314110558-e03314c6.pdf
 
BE Chemical Engineering Design Project Production Of Propylene Oxide
BE Chemical Engineering Design Project   Production Of Propylene OxideBE Chemical Engineering Design Project   Production Of Propylene Oxide
BE Chemical Engineering Design Project Production Of Propylene Oxide
 
Atmospheric water generator
Atmospheric water generatorAtmospheric water generator
Atmospheric water generator
 
SLIDE FYDP2
SLIDE FYDP2SLIDE FYDP2
SLIDE FYDP2
 
Datasheet SpruceTrigen 56 NG 60Hz
Datasheet SpruceTrigen 56 NG 60HzDatasheet SpruceTrigen 56 NG 60Hz
Datasheet SpruceTrigen 56 NG 60Hz
 
IRJET- Design and Fabrication of Simultaneous Heating and Cooling in VCR ...
IRJET-  	  Design and Fabrication of Simultaneous Heating and Cooling in VCR ...IRJET-  	  Design and Fabrication of Simultaneous Heating and Cooling in VCR ...
IRJET- Design and Fabrication of Simultaneous Heating and Cooling in VCR ...
 

More from Abdullah Al Moinee

More from Abdullah Al Moinee (8)

Performance Evaluation of Microbial Fuel Cell for Removing Chromium from Text...
Performance Evaluation of Microbial Fuel Cell for Removing Chromium from Text...Performance Evaluation of Microbial Fuel Cell for Removing Chromium from Text...
Performance Evaluation of Microbial Fuel Cell for Removing Chromium from Text...
 
Biochar Preparation & Application | Water Pollution & Control | Course Teache...
Biochar Preparation & Application | Water Pollution & Control | Course Teache...Biochar Preparation & Application | Water Pollution & Control | Course Teache...
Biochar Preparation & Application | Water Pollution & Control | Course Teache...
 
Engineering Ethics: The Essence of Engineering Excellence | IEB 2019
Engineering Ethics: The Essence of Engineering Excellence | IEB 2019Engineering Ethics: The Essence of Engineering Excellence | IEB 2019
Engineering Ethics: The Essence of Engineering Excellence | IEB 2019
 
Mass Transfer of Biofilm in a Microbial Fuel Cell | Advanced Mass Transfer | ...
Mass Transfer of Biofilm in a Microbial Fuel Cell | Advanced Mass Transfer | ...Mass Transfer of Biofilm in a Microbial Fuel Cell | Advanced Mass Transfer | ...
Mass Transfer of Biofilm in a Microbial Fuel Cell | Advanced Mass Transfer | ...
 
Microbial Solar Cells: Applying Photosynthetic and Electrochemically Active O...
Microbial Solar Cells: Applying Photosynthetic and Electrochemically Active O...Microbial Solar Cells: Applying Photosynthetic and Electrochemically Active O...
Microbial Solar Cells: Applying Photosynthetic and Electrochemically Active O...
 
Unification of ETP & MFC: Sustainable Development, Environmental Safety, & Re...
Unification of ETP & MFC: Sustainable Development, Environmental Safety, & Re...Unification of ETP & MFC: Sustainable Development, Environmental Safety, & Re...
Unification of ETP & MFC: Sustainable Development, Environmental Safety, & Re...
 
Effect of electrodes, aeration, salt bridges and source of microbes in a medi...
Effect of electrodes, aeration, salt bridges and source of microbes in a medi...Effect of electrodes, aeration, salt bridges and source of microbes in a medi...
Effect of electrodes, aeration, salt bridges and source of microbes in a medi...
 
Bioremediation of Heavy Metals from Soil and Aquatic Environment: An Overview...
Bioremediation of Heavy Metals from Soil and Aquatic Environment: An Overview...Bioremediation of Heavy Metals from Soil and Aquatic Environment: An Overview...
Bioremediation of Heavy Metals from Soil and Aquatic Environment: An Overview...
 

Recently uploaded

Laundry management system project report.pdf
Laundry management system project report.pdfLaundry management system project report.pdf
Laundry management system project report.pdf
Kamal Acharya
 
Online blood donation management system project.pdf
Online blood donation management system project.pdfOnline blood donation management system project.pdf
Online blood donation management system project.pdf
Kamal Acharya
 
CFD Simulation of By-pass Flow in a HRSG module by R&R Consult.pptx
CFD Simulation of By-pass Flow in a HRSG module by R&R Consult.pptxCFD Simulation of By-pass Flow in a HRSG module by R&R Consult.pptx
CFD Simulation of By-pass Flow in a HRSG module by R&R Consult.pptx
R&R Consult
 

Recently uploaded (20)

Natalia Rutkowska - BIM School Course in Kraków
Natalia Rutkowska - BIM School Course in KrakówNatalia Rutkowska - BIM School Course in Kraków
Natalia Rutkowska - BIM School Course in Kraków
 
NO1 Pandit Amil Baba In Bahawalpur, Sargodha, Sialkot, Sheikhupura, Rahim Yar...
NO1 Pandit Amil Baba In Bahawalpur, Sargodha, Sialkot, Sheikhupura, Rahim Yar...NO1 Pandit Amil Baba In Bahawalpur, Sargodha, Sialkot, Sheikhupura, Rahim Yar...
NO1 Pandit Amil Baba In Bahawalpur, Sargodha, Sialkot, Sheikhupura, Rahim Yar...
 
Top 13 Famous Civil Engineering Scientist
Top 13 Famous Civil Engineering ScientistTop 13 Famous Civil Engineering Scientist
Top 13 Famous Civil Engineering Scientist
 
The Benefits and Techniques of Trenchless Pipe Repair.pdf
The Benefits and Techniques of Trenchless Pipe Repair.pdfThe Benefits and Techniques of Trenchless Pipe Repair.pdf
The Benefits and Techniques of Trenchless Pipe Repair.pdf
 
Courier management system project report.pdf
Courier management system project report.pdfCourier management system project report.pdf
Courier management system project report.pdf
 
Furniture showroom management system project.pdf
Furniture showroom management system project.pdfFurniture showroom management system project.pdf
Furniture showroom management system project.pdf
 
RESORT MANAGEMENT AND RESERVATION SYSTEM PROJECT REPORT.pdf
RESORT MANAGEMENT AND RESERVATION SYSTEM PROJECT REPORT.pdfRESORT MANAGEMENT AND RESERVATION SYSTEM PROJECT REPORT.pdf
RESORT MANAGEMENT AND RESERVATION SYSTEM PROJECT REPORT.pdf
 
Quality defects in TMT Bars, Possible causes and Potential Solutions.
Quality defects in TMT Bars, Possible causes and Potential Solutions.Quality defects in TMT Bars, Possible causes and Potential Solutions.
Quality defects in TMT Bars, Possible causes and Potential Solutions.
 
Halogenation process of chemical process industries
Halogenation process of chemical process industriesHalogenation process of chemical process industries
Halogenation process of chemical process industries
 
Event Management System Vb Net Project Report.pdf
Event Management System Vb Net  Project Report.pdfEvent Management System Vb Net  Project Report.pdf
Event Management System Vb Net Project Report.pdf
 
Laundry management system project report.pdf
Laundry management system project report.pdfLaundry management system project report.pdf
Laundry management system project report.pdf
 
Online blood donation management system project.pdf
Online blood donation management system project.pdfOnline blood donation management system project.pdf
Online blood donation management system project.pdf
 
Online resume builder management system project report.pdf
Online resume builder management system project report.pdfOnline resume builder management system project report.pdf
Online resume builder management system project report.pdf
 
İTÜ CAD and Reverse Engineering Workshop
İTÜ CAD and Reverse Engineering WorkshopİTÜ CAD and Reverse Engineering Workshop
İTÜ CAD and Reverse Engineering Workshop
 
Democratizing Fuzzing at Scale by Abhishek Arya
Democratizing Fuzzing at Scale by Abhishek AryaDemocratizing Fuzzing at Scale by Abhishek Arya
Democratizing Fuzzing at Scale by Abhishek Arya
 
A CASE STUDY ON ONLINE TICKET BOOKING SYSTEM PROJECT.pdf
A CASE STUDY ON ONLINE TICKET BOOKING SYSTEM PROJECT.pdfA CASE STUDY ON ONLINE TICKET BOOKING SYSTEM PROJECT.pdf
A CASE STUDY ON ONLINE TICKET BOOKING SYSTEM PROJECT.pdf
 
CFD Simulation of By-pass Flow in a HRSG module by R&R Consult.pptx
CFD Simulation of By-pass Flow in a HRSG module by R&R Consult.pptxCFD Simulation of By-pass Flow in a HRSG module by R&R Consult.pptx
CFD Simulation of By-pass Flow in a HRSG module by R&R Consult.pptx
 
Introduction to Machine Learning Unit-5 Notes for II-II Mechanical Engineering
Introduction to Machine Learning Unit-5 Notes for II-II Mechanical EngineeringIntroduction to Machine Learning Unit-5 Notes for II-II Mechanical Engineering
Introduction to Machine Learning Unit-5 Notes for II-II Mechanical Engineering
 
Architectural Portfolio Sean Lockwood
Architectural Portfolio Sean LockwoodArchitectural Portfolio Sean Lockwood
Architectural Portfolio Sean Lockwood
 
Introduction to Machine Learning Unit-4 Notes for II-II Mechanical Engineering
Introduction to Machine Learning Unit-4 Notes for II-II Mechanical EngineeringIntroduction to Machine Learning Unit-4 Notes for II-II Mechanical Engineering
Introduction to Machine Learning Unit-4 Notes for II-II Mechanical Engineering
 

1000 Tons Per Year Riboflavin (Vitamin B2) Crystal Production Plant | Process Design | Supervisor: Dr. Nafisa Islam

  • 1. PROCESS DESIGN SESSIONAL CHE 408 FEBRUARY 2017 1000 TONS PER YEAR RIBOFLAVIN (VITAMIN B2) CRYSTAL PRODUCTION PLANT Department of Chemical Engineering Bangladesh University of Engineering & Technology
  • 2. PROJECT TITLE 1000 TONS PER YEAR RIBOFLAVIN (VITAMIN B2) CRYSTAL PRODUCTION PLANT
  • 3. PROJECT DEFINITION A Riboflavin crystal (Vitamin B2) production plant is to be set-up at Tongi , Gazipur in Bangladesh, having capacity 3 tons per day, corresponding to 1000 tons of Riboflavin Crystal per year including all offsite auxiliaries, utilities and support facilities. Glucose, vegetable oils and nutrients will be used as feedstock. Candida famata fermentation process will be applied.
  • 4. DESIGN BASIS GEOLOGICAL DATA SITE CHARACTERSTICS ❑ Nearest River – Turag ❑Minimum Water Level – 7-10 Meters ❑Maximum Water Level – 65-70 Meters ❑ Average Depth Of Wells – 30-35 Meters ❑Water Level Record During Flood – 10 Ft (Above Ground Level)
  • 5. DESIGN BASIS GEOLOGICAL DATA SOIL CHARACTERSTICS ❑ Deposits Of The Pleistocence Age . ❑ Surface Clays – 12-15 Meters Thick Underlain By Slits And Fine Sands (Followed By 35 Meters Coarse Materials) ❑Arsenic Content Is Below WHO Limit . SEISMIC CONDITION ❑Maximum Earth Quake – 6 In Richter Scale ❑Seismic Zone – 3 Seismic Zones In Bangladesh & The Site Is In Zone II ❑Seismic Coefficient – 0.15 G
  • 6. DESIGN BASIS CLIMATIC CONDITIONS ❑Rainy Season - Hot And Humid (Having About 90 Percent Of The Annual Rainfall) . ❑Winter - Cool And Dry. ❑Summer - Hot And Dry (Interrupted By Occasional Heavy Rainfall) . ❑Annual Average Temperature - Maximum 36 °C & Minimum Temperature Is About 12.70 °C ❑Annual Rainfall - Approximately 2,376 Mm. ❑Soil Condition - Soil Is Fertile (Not Used For Any Major Economical Activities) . ❑Corrosion Tendency - Iron And Arsenic Are The Major Water Quality Concern For Drinking Purposes
  • 7. DESIGN BASIS CLIMATIC CONDITIONS ❖EQUIPMENTS ❑Maximum Dry Bulb Temperature – 38-40 ° C (Summer) ❑Minimum Dry Bulb Temperature – 4-7 °C (Winter) ❖HVAC ❑Maximum Dry Bulb Temperature – 25° C (Summer) ❑Minimum Dry Bulb Temperature – 20°C (Winter) ❑Relative Humidity (Maximum) – 90% (Summer) ❑Relative Humidity (Minimum) – 45 % (Summer)
  • 8. DESIGN BASIS CLIMATIC CONDITIONS METEOROLOGICAL CONDITIONS Ambient Temperature Humidity Rainfall Barometric Pressure Wind Direction Maximum : 38-40°C Minimum : 8-10°C Average : 30°C Average RH : 75-78% Average Annual : 1555 mm Maximum monthly : 335 mm Minimum (monthly) :1.5 mm Maximum Daily : 450 m Maximum intensity : 0.5mm/min Minimum Pressure : 740 mm (Hg) Design Barometric Pressure : 760 mm (Hg) Summer : South to North Winter : North to South Design wind velocity : 3.5-4.5 m/sec
  • 9. DESIGN BASIS UTILITY CONDITIONS Steam Water Electric power Air Saturated Steam 150°C Ground Water (25°C) Potable Water (WHO ,ECR-97) Waste Water Treatment ❑ Raw Water pH : 5-6.5 COD < 1500 mg/L BOD < 900 mg/L DO < 4 ❑ Discharge Water pH : 6.5-8 COD < 200 mg/L BOD < 50 mg/L DO > 4 440V : 3 phase, 50 cycle 230V :1 phase, 50 cycle for motors <0.4 kW 120V : 1 phase, 50 cycle for instrumentations and control ❖ Instrument air : ❑ Pressure : 715 kPa ❑ Temperature : 25°C ❑ Dew Point : 4°C ❖ Plant Air : Pressure : 250kPa Temperature : 30°C
  • 10. DESIGN BASIS RAW MATERIALS ❑ Glucose Syrup ❑ Water ❑ Dl-methoinine ❑ Malt Extract ❑ Yeast Extract ❑ Peptone ❑ Sunflower Oil ❑ Manganese Sulfate ❑ Potassium Biphosphate ❑ Candida famata (Yeast)
  • 11. Specification sheet of Rotary Dryer 1. CUSTOMER Job no. Reference no. Address : Proposal no. Plant location: Date Service of Unit: Item no. Size: 2m x 13.1m 2. CAPACITY DETAILS 3. FEED DETAILS Operation Continuous Nature of feed Solid + Suspension Feed rate 0.6039 ton/hr Moisture of feed 0.35 Evaporation Rate: 167.7 kg/hr Density 80lb/ft3 Efficiency(moisture removed) 70% Viscosity Not required Volume of dryer 4.118 m3 pH Not required Full Capacity 5.284 ton 4. DRY PRODUCT DETAILS 5. MODE OF AIR HEATING Steam Moisture content 0.10 (Dry basis) 6. POWER REQUIREMENTS Desired particle size Not required Power of the Blower 2.47 KW Heat sensitivity Upto 280 ̊C Power of the Exhaust Fan 2.69 KW Solvent recovery Not Required Power Required to Drive the Dryer 30.5KW 7. DESIGN DATA 8. ANY OTHER SPECIFICATION Operating pressure 1 atm Dia of the Feed pipe 10 inches Design Pressure 1.5 atm Dia of the air inlet pipe 12 inches Operating Temperature Max 170 ̊C Dia of the air Outlet pipe 13 inches Design Temperature 130 ̊C Rotation of the Dryer 10 rpm Shell Material AISI SS317 Inner Dia of the dryer 2 m Support Saddle Support Outer Dia of the dryer 2.18m Shell type Cylindrical Number of Flights 20 Lining: Asbestos Radial Height of the flights 9.84 inches Internal corrosion allowance 25 mm The Volumetric Heat transfer Coefficient of dryer 4.2213 Btu/ft3.h. ºF Insulation 80 mm Thickness 10 mm
  • 12. SIDE VIEW OF ROTARY DRYER
  • 13. CROSS SECTION OF ROTARY DRYER
  • 14. P & I DIAGRAM OF ROTARY DRYER
  • 15. SELECTION OF PROCESS AND PROCESS DESCRIPTION ❑Candida famata Fermentation Process . ❑The Product Is Obtained As Dry Crystal . ❑Fermentation Is Operated Batch-wise ❑Equipment AISI SS 317
  • 16. SELECTION OF PROCESS AND PROCESS DESCRIPTION Upstream Processing Fermentation Downstream Processing ❑ Preparation ❑ Sterilization ❑ Carbon and Nitrogen Source (Raw Materials) ❑ Main Fermentation (Fermentation Tank) ❖ Broth Harvest ❑ Crystallize ❑ Centrifuge (Decanter) Oil and Aqueous fraction ❑ Dryer (Rotary Dryer) ❖ Dry Crystal (Product)
  • 17. PROCESS BLOCK DIAGRAM Nutrient Tank T1 Glucose Syrup Tank T2 Fermenter F1 HS1 HS2 Air Filter AF1 Air Compressor AC1 Air Glucose Syrup Nutrients Water Harvest Tank T3 Crystallizer C1 Storage Tank T4 Decanter D1 Storage Tank T5 Rotary Dryer RD1 HE1 Exhaust Gas Oil Fraction Aqueous Fraction Dry Air Exhaust Gas Product
  • 18. PROCESS FLOW DIAGRAM 1 7 2 6 3 54 11 12 14 15 16 17 18 19 20 21 8 9 22 23 24 32 30 31 25 26 27 T1T2 T3 T4 T5 F1 P1 P2 P3 P4 P5 P6 P7 P8 HS1 HS2 C1 D1 RD1 HE1 AC1 AF1 13 10 28 29 B1 B2
  • 19. LIST OF PROCESS LICENSORS ❖Production Of Riboflavin By Fermentation Process ❑Merck & Co Inc , New Jersey , USA ; US2595499 ❑Hoffmann La Roche , Basel , Switzerland ; US2493274 ❖A Fermentation Process For Riboflavin-producing Organisms ❑Zeagen, Inc. Wo1992001060 ❖Method For The Preparation Of Riboflavin ❑Dai Nippon Sugar Mfg Co Ltd , Japan ; US3433707
  • 20. LIST OF MAJOR EQUIPMENTS AND LIST OF VENDORS No. Equipment Vendor 1 Fermenter Zhenjiang East Biotech Equipment and Technology Co., Ltd. , China 2 Crystallizer Zhenjiang Mingchen Machinery Technology Co., Ltd. , China 3 Decanter Centrifuge Jiangsu Huada Centrifuge Co., Ltd. , China 4 Rotary Dryer Jiangsu Zhenxing Drying Equipment Co., Ltd. , China
  • 21. Identification: Item: Fermenter Date: 15/02/2017 By: ChE,BUET Function: To produce Riboflavin from Candida famata Operation: Batch Type: Batch reactor ( jacketed and cylindrical ) Material Handled: Inlet Outlet Quantity (kg) 18784904 kg 222950 kg ( Liquid) 18561954 kg (Exhaust Gas) Pressure (atm) 1 1 Temperature (ºC) 40 50 Design Data: Tank Turbine Height 5.0 m Impeller diameter 0.833 m Diameter 2.50 m Impeller length 0.208 m Shell thickness 6 mm Impeller width 0.167 m Capacity safety factor 25% Impeller type Six-blade turbine Capacity 20 m 3 Speed 25 rpm Operating pressure 180 kPa Shaft diameter 1.64 cm Operating Temperature 35 - 50 ºC Power required 0.22 hp Material of construction: SS 317 Code AISI3 Utilities: Cooling Jacket Thickness = 1.5 mm , Area available (A) = 17 m 2 Tolerance: Rules of thumb and heuristics Skirt: 3 mm thick and 2.5 m height (AISI SS317) SPECIFICATION SHEET OF FERMENTER
  • 22. FRONT VIEW OF FERMENTER 2.5 m 5 m 1.67 m 0.167 m 1.64 cm 2.5 m 2.6 m cm5 Feed 1 Feed 2 Product Compressed Air 2 cm
  • 23. TOP VIEW OF FERMENTER 0.237 m 0.208 m 2.5 m 0.833 m
  • 24. P & I DIAGRAM OF FERMENTER AT TTTC FC PT FC
  • 25. SIZING OF STORAGE TANKS Position of tank Volume (m3) Teui mm Agitator speed Power KW T1 28.6 3314.6 39.83 3.16 T2 160 5884.1 22.40 7.76 T3 204 6380.4 20.69 9.13 T4 245 6782.0 14.67 8.57 T5 125 5419.3 24.36 7.03 Sizing of Centrifugal Pumps Position of the pump Volumetric flow rate m3 Required head m Power Hp Other Properti es P1 0.003 8.89 0.08 Pressur e ratio (P2/P1) = 2 Pdrop = 12KPa P2 0.004 9.75 0.97 P3 0.003 10.77 0.67 P4 0.003 10.38 0.08 P5 0.003 8.61 0.07 P6 0.003 10.36 0.08 P7 0.003 8.27 0.28 P8 0.003 8.27 0.28
  • 26. OTHERS Equipment name Properties Air Compressor Pressure ratio, P2/P1 = 2 Power Requirement = 15 Hp Heat exchanger Heat duty = 7.7x 105 KJ/hr Surface area = 6.5 m2 Blowers Pressure (assumption) = 20 cm water column Power requirement = 2 Hp
  • 29. FRONT VIEW OF DECANTER
  • 30. TOP VIEW OF DECANTER
  • 31. P & I DIAGRAM OF DECANTER
  • 32. SPECIFICATION SHEET OF DECANTER Identification Item: Centrifuge Date: 11/02/2017 Function To remove oil and aqueous fraction from solution media Operation: Batch Material Parameters Inlet Outlet Quantity (kg) 1114.7 kh/hr 1114.7 kh/hrHandled Temperature(ºC) 30 35 Height 3 m Design pressure 10.7 atm Design Centrifuge Diameter 0.70m Operating 30-35 ºC TemperatureData Shell 33 mm Capacity safety 10% thickness factor Motor Speed 1200 Power required 10.5 hp rpm Material of Stainless Steel construction Code AISI SS 317 Utilities Not required Tolerance 10% of load Insulation Noise cancelling
  • 34. TOP VIEW OF CRYSTALLIZER
  • 35. P & I DIAGRAM OF CRYSTALLIZER
  • 36. SPECIFICATION OF CRYSTALLIZER Identification: Item: Crystallizer Date: 15/02/2017 Function: To produce Riboflavin Crystal Operation: Batch Type: Agitated jacketed cooling crystallizer Material Handled: Inlet Outlet Quantity (kg) 2787 kg 824 kg Riboflavin Crystal 355 kg Riboflavin (in suspensio 1609 kg water and others Pressure (atm) 1 1 Temperature (ºC) 45 25 Design Data: Tank Turbine Height 3.0 m Impeller diameter 0.66 m Diameter 2 m Impeller length 0.165 m Shell thickness 14 mm Impeller width 0.137 m Capacity safety factor 25% Impeller type Six-blade turbine Capacity 4.5 𝒎 𝟑 Speed 100 rpm Operating pressure 250kPa Shaft diameter 4 cm Operating Temperature 20 ºC -50 ºC Power required 3 hp Material of construction: SS 317 Code AISI3
  • 37. ECONOMIC ANALYSIS TOTAL EQUIPMENT COST Storage tank for glucose 19500 Storage tank for Nutrient 30300 Storage tank before Crystallizer 33300 Storage tank before decanter 32100 Storage tank before dryer 28800 Fermenter 940200 crystallizer 127842 Rotary Dryer 269400 Centrifuge 182400 Air Blower 10044 Total equipment cost 1711266 Item Price ($) Glucose supply Pump 3060 Nutrient supply Pump 3300 Harvest pump 3360 Pump Before crystallizer 3060 Pump after crystallizer 3060 Pump before decanter 3060 Pump after decanter 3240 Pump before dryer 3240 Air compressor 4500 Heat Exchanger 7500
  • 38. DIRECT COST TOTAL DIRECT COST = 6639712.08 USD Item % of equipment cost Cost (USD) Purchased equipment 100 622504 Land 8 49800 Piping 45 217876 Installation 30 124500 Service facilities 30 186751 Instrumentation 20 62250 Electrical system 30 62250 Building 50 124500 Yard improvement 5 31125
  • 39. TOTAL INDIRECT COST = 1112322 USD Indirect cost Item % of equipment cost Cost (USD) Engineering 15 256690 Construction expense 15 256690 Contractors fee 10 171126 Contingency 25 427816 Fixed Capital Investment 7752035 USD Working Capital Investment (20% of total capital investment) 1938009 USD Total capital investment 9690044 USD
  • 40. TOTAL PRODUCTION COST Manufacturing cost Type Percentage USD Direct cost Raw material 40% of Total Production cost 9496243 Operating cost 10% of Total Production cost 2374061 Utilities 10% of Total Production cost 2374061 Maintenance & repairs 10% of Fixed Capital investment 775203. 5 Fixed charges 10% of Total Production cost 2374066 1 Plant overhead 10% of Total Production cost 2374066 1 General Expenses Administrative cost 6% of Total Production cost 14244396 Distribution and selling 5% of Total Production cost 11870330 Research and developing 5% of Total Production cost 11870330 Financing 2% of Total capital investment 193800 Total production cost 23740507
  • 41. ECONOMIC ANALYSIS • ANNUAL REVENUE SALES PRICE $30/KG RIBOFLAVIN CRYSTAL(90% PURE) SO TOTAL REVENUE $27215550/YR • TOTAL PROFIT/YR = $27215550- $ 23740607 =$ 3474943/YR SALVAGE VALUE = 10% OF (PURCHASED EQUIPMENT + LAND + BUILDING) =$ 304605
  • 42. ECONOMIC ANALYSIS • % RATE OF RETURN • TAX RETURN = 15% • NET PROFIT AFTER TAX = $ 2948984 RATE OF RETURN = NET PROFIT AFTER TAX/TOTAL INVESTMENT COST = 30.1% Depreciation calculation Minimum attractive rate of return (MARR) = 15% Plant useful life = 15 years Depreciation = FCI (A/P, 15 %, 15) – Salvage (A/F, 15%, 15) = $1238476.51- $6402 = $1232074
  • 43. CASH FLOW DIAGRAM AND IRR -10000000 0 10000000 20000000 30000000 40000000 0.00 0.20 0.40 0.60 0.80 1.00 1.20 IRR Analysis By PW method, PW = -Total capital investment + Annual Income (P/A, i%, 15) + Salvage Value (P/F, i%,15) =0 , IRR is 29%
  • 44. ECONOMIC ANALYSIS ERR is 19.4% here Project is feasible Payback period End of year Net Cash Flow Cumulative PW without interest Present Worth of cash flow with interest ( i=15%/yr) Cumulative PW with interest (i=15%/yr) 0 -9690044 -9690044 -9690044 -9690044 1 2948984 -6741065 2564333.913 -7125715.087 2 2948984 -3792081 2229855.577 -4895859.51 3 2948984 -843097 1939004.849 -2956854.661 4 2948984 +2105887 1686091.173 -1270763.488 5 2948984 5054871 1466166.238 +195402.7496