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HEAT EXCHANGER

Sample calculation for exchanger E-101

From the calculation;

Area, A = 55.371 m2

Pressure, P = 240 bar

MOC tube = SS ; MOC=Material of construction, SS= Stainless steel

MOC shell = SS

Estimation of Cp and Fp:

1. From table A-4 (multiple pipe):

B1 = 1.74

B2 = 1.55

2. From table A-2 (for P=240 barg):

C1 = 13.1467

C2

= -12.6574

C3 = 3.0705

3. Calculate value Fp using equation below:

log Fp = C1 + C2 log(P) + C3 [log(P)]2

log Fp = 13.1467

12.6574 log (240) + 3.0705 [log (240)]2

Fp = 2.61

4. Estimation of purchased cost, Cp0:

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From figure A.5;

Cp0/A =

Cp0(2001) = $ 19379.85

5. Estimation of material factor, FM:

Since material of construction for both shell and tube is SS and multiple type, therefore:

From Table A.3: Identification number = 5

Thus, from figure A-18: Material factor, FM = 2.75

Therefore,

CBM = Cp0 (B1 + (B2 x Fp x FM))

CBM = 19379.85 x (1.74 + (1.55 x 2.6 x 2.75)) = 249324.19

Bare Module Cost,

CBM (2012) = CBM (2001) [ I2 (2012) / I1 (2001) ]

Where:

I1 = cost index for year 2001 = 397

I2 = cost index for year 2011 = 643.11

For $1 = RM 3.1645 (average currency for year 2012)

So, Bare Module Cost,

CBM

(2012) = $249324.19 (643.11/ 397) = $ 403886.35

Bare Module Cost, CBM (2012) in Malaysia currency = RM1278098.36

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Table: Total price for all heat echanger:

Equipment Area, m2 Purchase cost,

Cp0(2001) ($)

Bare module cost,

CBM (2012) ($)

Bare module cost,

CBM (2012) (RM)

E-101 55.37 19,379.85 403,886.35 1,278,098.36

E-102 66.79 22,707.92 473,245.10 1,497,584.11

E-103 46.26 15,726.70 327,752.77 1,037,173.64

Total 1,204,884.22 3,812,856.11

Reactor

From the chemical and mechanical design calculation;

Volume, VTotal = 3.534 m3


Materials of Construction = stainless steel

Estimation of Cp:

The value for K1 and K2 and K3 are referred to the table A.1 in the Turton (2009) page 910 and

the value are:

K1 = 4.7116

K2 = 0.5521

K3 = 0.0004

For V=3.534m3

log10Cpo = 4.7116 + 0.5521log10(3.5534) + 0.0004[log10(3.534)]

2

= 4.7116 + 0.3027 + 0.0004

= 5.0147

Cpo = 103,442.7

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Cpo (2011) = 103,442.7(622/397) = $ 162,067.8

log Fp = C1 + C2 log(P) + C3 [log(P)]2

For conversion vessel, the operating pressure is 2.2 barg. From Table A.2, C1=C2=C3=0 and

from equation A.3 (Turton, 2009), then Fp= 1

Bare Module Cost:

CBM = 162,067.8 (2.25+ (1.82) (3.1)(1))

CBM = $ 1,279,039.10

The currency $ 1 = RM 3.02

So, the value from Bare Module Cost is in US dollar ($) must be converted into Ringgit Malaysia

(RM)

$ 1,279,039.10 = RM 3,862,698.00

As conclusion, the price for the reactor is RM 3,862,698.00.

Vessel

From the chemical and mechanical design calculation;

Volume, D = 1.5 m

Height = 3.0 m


Materials of Construction = stainless steel

By Using CAPCOST software:

Cpo (2011) = RM 11,800

CBM (2011) = 1,530,000

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Compressor

1) Fluid power = 4850.7 kW

MOC = SS

Compressor type = Centrifugal

Cpo (2011) = RM 1,630,000

CBM (2011) = 9,390,00

2) Fluid power = 5393.1 kW

MOC = SS

Compressor type = Centrifugal

Cpo (2011) = RM 1,630,000

CBM (2011) = 9,390,00

TOTAL CAPITAL INVESTMENT

Equipment Specification

Base Bare

Module Cost

(RM)

Heat Exchanger 1 E -100 712,342

Heat Exchanger 2 E -101 1,804,200

Heat Exchanger 3 E -102 58,227

Heat Exchanger 4 E -103 1,854,825

Component Splitter 1 X - 100 123,040

Component Splitter 2 X 101 123,040

Component Splitter 3 X 102 123,040

Reactor CRV-100 2,612,383Separator V-100 53,202

Pump 1 P-101 94,008

Pump 2 P-102 68,948

Pump 3 P-103 68,948

Compressor 1 K-100 154,060

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Contingency and Fee (8%)

Contingency = Total Bare Module Cost 0.15

= RM 1,199,439.75

Fees = Total Bare Module Cost 0.08

= RM 639,701.2

Total Module Cost, TMC = Total Bare Module Cost + Contingency + Fees

= RM 9,835,405.95

Auxiliary Facilities (10%)

Site Development = Total Bare Module Cost 0.05

= RM 399,813.25

Auxiliary Buildings = Total Module Cost 0.04

= RM 319,850.6

Offsite Facilities = Total Module Cost 0.21

= RM 1,679,215.65

Auxiliary Facilities = Site Development + Auxiliary Buildings +

Offsite Facilities

= RM 2,398,879.5

Grass-roots capital (GRC) = Total Module Cost + Auxiliary Cost

= RM 10,395,144.5

Compressor 2 K-101 146,002

Total Bare Module Cost (RM) 7,996,265

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Labor Cost

The operating labor requirement for chemical processing plants is given by:

NOL = (6.29 + 3.17P2 + 0.23 Nnp)

0.5

The value of Nnp is given by:

Nnp= Equipment

Where:

NOL The number of operators per shift

P The number of processing steps involving the handling of particulate solids.

Nnp The number of non particulate processing steps handling steps.

Type of Equipment No. Of Equipment NNP

Heat Exchanger 4 4

Reactor 1 1

Splitter 3 3

Vessel 1 -

Pump 3 -

Compressor 2 2

Total 10

NOL = (6.29 + 3.17P2 + 0.23 Nnp)

0.5

= 2.93

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Event Cost

onsite

Purchased Equipment Installation

Instrumentation and Control

(installed)

Piping (installed)

Electrical and Material (installed)

30 % GRC

15 % GRC

30 % GRC

8 % GRC

RM 3,118,543.75

RM 1,559,271.70

RM 3,118,543.75

RM 831,611.60

offsite

Building

Yard Improvements

Service Facilities

Land

10 % GRC

1 % GRC

5 % GRC

2% GRC

RM 1,039,514.50

RM 103,951.40

RM 519,757.20

RM 207,902.90

Total RM 10,499,096.80

Event Cost

Engineering and supervision

Construction Expenses

Contractors

Fee

Contingency

5 % GRC

8 % GRC

1.5 % GRC

10 % GRC

RM 519,757.2

RM 831,611.60

RM 155,927.20

RM 1,039,514.50

Total RM 2,546,810.50

Cost (RM)

1) 1 operator per month = 1,800

2) 1 operator per year = 21600

(including bonus + allowance)

Direct Cost

Indirect Cost

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Fixed Capital Investment (FCI)

Working Capital

Start Up Cost

(FCI = GRC + Total)

12 % FCI

8 % FCI

RM 23, 441, 051.80

RM 2,812,926.20

RM 1,875,284.10

Total Capital Investment (TCI) RM 28,129,262.10Total = Direct+Indirect = RM 13,045,907.30

Assumption

1) Plant performed: 3 shifts per day

2) Plant is tunning 24hours per day: 1 day

3) Maintainace day per year: 30 days

4) Operation day per year: 335 days

5) Minimum day for operator rest: 14 days

6) Week for 1 operator work: 48 weeks

7) Shift needed for a plant in year: 1005 shift/year

8) 1 operator can obtained shift: 230 shift/year.operator

NON :

Operating labor cost, COL:

COL = NOL x NON x PO

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Manufacturing Expenses Cost (RM/yr)

Cost PerProduction(RM/kg)

Direct Production

Cost

Raw Materials

Utilities & Land

Water, Electric & Land

Miscellaneous

Maintenance andRepairs

Operating Supplies

Operating Labor

Direct Supervision &

Clerical Labor

Laboratory Charges

Patents and Royalties

Indirect Production

Cost

Local Taxes

Insurance

Plant Overhead

2 % FCI

0.5% of Maintenance

and Repairs

0.2% of maintenance

and repair

10 % of Operating

Labour

15 % of Operating

Labour

0.01% FCI

1 % FCI

1% FCI

50 % of Operating

labor

259, 290. 000

32,590,000.00

468,821.03

2,344.1

937.60

93.76

140.60

2344.10

234,410.5

234,410.5

468.8

3.11

3,342.60

48.08

0.2404

0.0962

0.0096

0.0144

0.2404

25.3825

25.3825

0.0508

Total Manufacturing Expenses, AME 292,823,971 30,033.22

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Total Manufacturing Expenses, AME Cost (RM/yr)

Cost perproduction(RM/kg)

Administration Cost

Distribution & Selling

Expenses

Research &

Development

25 % of PlantOverhead

10% of FCI

3% of FCI

1,049,310.60

3,497,702.00

1,049,310.60

76.1474

253.8245

76.1474

Total General Expenses, AGE 5,596,323.19 406.1192

Total ProductionCost, APC

Depreciation, ABD

APC = AME + AGE

(excludingdepreciation)

10 % FCI

2,141,397,014.99

3,497,702.00

155398.9126

253.8245281

Total Expenses, ATE ATE = APC + ABD 2,144,894,716.99 155652.7371

price for product

Urea RM 21 /kg

Raw material usage

Urea 9750 kg/hr

Annual sales for product RM 204,750 /yr

Total revenue from

sales

Net annual profit,

ANP

Product

Total Revenue

535,125,100.00

45,248,845.50

54,884.62

4,640.90

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Income taxes

Net annual Profit,

ANNP

Rate of Return

30% ANP

ANPIncome Taxes

(ANNP-ABD)/TCI x

100%

13,574,653.65

31,674,191.85

125..03%

1,392.27

3,248.64

Cash flow

Year of construction 3 years

Plant Life 22 years

Working Capital RM 2,812,926.20

TCI

Total Annual RM 28,129,262.10

Sales RM 535,125,100.00

Total Expenses, ATE RM 2,144,894,716.99

Bank Loans

1st year = 10% of TCI

2nd year = 45% of TCI

3rd year = 45% of TCI

Documents

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