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Final Presentation Spring 2010 V2
- 1. Design and Feasibilityof Building a new Vinyl Acetate Monomer Production Plant in the United States4/2/2010Team Members: Eric Busch Kevin Chrapkowski Brandon Kussow Aaron Ritthaler1
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- 7. Mass and EnergyBalances
- 8. Safety and EnvironmentalConsiderations
- 9. Economic Feasibility/Cash FlowAnalysis
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- 12. IntroductionFCC proposed newvinyl acetate production plant within the United States
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- 17. Safety and EnvironmentalConsiderations
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- 20. Business ObjectivesPlant Capacityof 30,000 tons per year
- 21. Accounts for 2.25%of global market
- 22. VAM product 99.6wt% pure
- 23. Location for feedstock
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- 27. Decision Matrix /MethodsEthylene – Acetic Acid method was the best choice based on characteristic parameters5
- 28. Market SurveyVAM priceshave fallen
- 29. Ethylene priceshave leveled off
- 30. Acetic Acidprices have risen6
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- 34. Safety Highly ExothermicReaction
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- 43. Hydroquinone addedto VAM10
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- 45. Plant emits173 tons of CO2 each year
- 46. Scrubber usingmonoethanolamine
- 47. Some stateshave adopted more strict VOC regulations
- 48. 100 g/LVOC’s for flat coatings
- 49. 150 g/LVOC’s for non-flat coatings
- 50. 250 g/LVOC’s for non-flat “high gloss” coatings
- 51. 340 g/LVOC’s for industrial maintenance coatings11
- 52. Profitability Analysis Fixed Capital Investment12
- 53. Equipment CostsFCI wascalculated by the following equation:FCI = PEC-delivered * Lang Factor Lang Factor for fluids plant = 5.82FCI = $8,136,00013
- 54. Profitability Analysis Fixed Capital Investment
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- 56. Income Income =Production Rate * Sales Price* 60 million pounds per year = 30,000 tons per year15
- 57. Profitability Analysis Fixed Capital Investment
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- 60. VCOP: Raw MaterialsVCOPfor Raw Materials = $58,600,00 / yr.17
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- 63. CCOP CCOP =VCOP + FCOP20
- 64. Profitability Analysis Fixed Capital Investment
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- 67. BaseCase Cash Flow Analysis21
- 68. Cash Flow Analysis*All values in millions22
- 69. Sensitivity – StraussPlots Vinyl Acetate prices affect NPV the most
- 70. Ethyleneprices affect NPV the least23
- 71. Optimization: Steam Production Vinyl Acetate formation produces a large amount of energy
- 72. ForBase Case, this energy is “swept” away by cooling water
- 73. Steamcould be created to use in other units throughout the plant24
- 74. Optimization Cash Flow*Incremental Analysis, all values in millions of dollars25
- 75. Optimization: Acetic AcidProduction Acetic Acid accounts for more than half of the expenses
- 76. AceticAcid produced by Methanol Carbonylation
- 77. Transfer Pricebased off of Methanol and Carbon Monoxide feedstock prices
- 78. Atransfer price of $ 0.30/lb. estimated26
- 79. Optimization: Cash Flow*Incremental Analysis, all values are in millions of dollars27
- 80. Cash Flow Analysiswith Optimizations* All values in millions28
- 81. Risk Analysis –Monte Carlo Method Probability that the NPV will be greater than zero
- 82. Flexiblevalues are FCI, Expenses, and Income29
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- 84. Purity of99.6%
- 85. Annual Productionof 30,000 tons/yr
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- 87. NPV ofnegative $39 MM
- 88. Optimized NPVof negative $4 MM
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- 90. 8.4% possibilityof a positive NPV30
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- 92. Not recommendedat current time
- 93. Changes neededfor feasible plant
- 94. Acetic Acidcosts fall
- 95. VAM saleprices increase
- 96. Less strictVOC’s regulations
- 97. Construct andproduce overseas31
- 98. ReferencesBusch, Chrapkowski, Kussow,and Ritthaler. “Design and Feasibility of Building a new Vinyl Acetate Monomer Production Plant in the United States.” Fictitious Chemical Company. March 19, 2010.32
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