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Green Group

Green Group. Kathryn Knopinski Kara Shelden Kim Fink Justin Sneed Mark Shreve. Assignment 3. Financial Analysis of Cyclohexane Plant. Purchased Equipment Cost. Fixed Capital Investment. Fixed Capital Investment. Total Product Cost. Total Product Cost. Sales Income.

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Green Group

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  1. Green Group Kathryn Knopinski Kara Shelden Kim Fink Justin Sneed Mark Shreve

  2. Assignment 3 Financial Analysis of Cyclohexane Plant

  3. Purchased Equipment Cost

  4. Fixed Capital Investment

  5. Fixed Capital Investment

  6. Total Product Cost

  7. Total Product Cost

  8. Sales Income • Gross Product Income • Current prices: $160 million • 3x current prices: $480 million • ½ current prices $80 million • Majority of profits come from the sale of cyclohexane • Benzene, hydrogen, and methane were also sold

  9. Profits after 10 years • Cash Flow • Current prices: $108 million • 3x current prices: $2,491 million • ½ current prices $-487 million • Net Present Worth • Current prices: $63 million • 3x current prices: $1,490 million • ½ current prices $-461 million

  10. Analysis of Profits • Based on current prices • Return on investment • 489% • Pay-out time • 57 days • Discounted cash flow rate of return • 430%

  11. Assignment 4 Risk Analysis and Piping Analysis of Cyclohexane Plant

  12. Sensitivity Analysis • Strauss plots determined NPW sensitivity • Strauss plots • NPW vs. FCI • NPW vs. Product Costs • NPW vs. Product Price

  13. Strauss Plot for FCI

  14. Strauss Plot for Product Costs

  15. Strauss Plot for Product Price

  16. Risk Evaluation Conclusion • Minimum sale price of cyclohexane: $3.39/gal • NPW: • $63 ± 130 million using propagation of error • $63 ± 289 million using Monte-Carlo

  17. Pressure Drop Pipe Material • Piping for all streams was high-alloy stainless steel • Ability to resist corrosion at higher temperatures • Ranged from 0.84 – 2700 psi • 2 pumps and 5 compressors required

  18. Bursting Strength • 2,480 kPa for all pipes • Operating Pressures • 4% - 143% of safe working pressure • 3 sections under safe pressure • Error with unit conversion: all pipes should be safe

  19. Piping Insulation Thickness • Varies from 1 – 1.5 inches • Material: mineral wool • Low thermal conductivity • Standard metal finish to reduce maintenance and heat loss

  20. Fixed Capital Investment • New Piping Design System • $3,670,000 • Optimized Piping System • $2,890,000

  21. Assignment 5 Simulation and Fluid Transport

  22. Table 1. Heat Balances on Heat Exchangers Hx Name E1 E2 E3 Hx Description Duty MM BTU/HR 7.129 7.6808 3.9265 Heat and Material Balances • Simulated using SIMSCI PRO/II using the Saove-Redelich-Kwong thermodynamic package • Stream summaries, material balances, and heat balances obtained

  23. Heat and Material Balances

  24. Heat and Material Balances

  25. Reactor Material Selection • High-alloy stainless-steel should be used • Hydrogen not compatible with carbon-steel • Cast-iron not durable at reactor operating conditions (375 psia and 435oF)

  26. Table 5. Pump Properties Pump Name P1 Pump Description Pressure Gain PSI 248.413 Head FT 760.313 Work HP 12.5526 Pump Work Requirements • Equivalent pipe lengths were found • PRO/II used to find pump work requirements • Pump work found to be 12.6HP, or 9.4 kW

  27. Pump Selection • Gear pump chosen • Positive displacement pump • Stainless-steel case, gears, and shaft • Can process liquids containing small amounts of vapor • Handles 83 gal/min flow rate • Handles 1.7 MPa pressure gain

  28. NPSHA and System Head vs. Flow Rate 1074.00 70.00 1073.00 60.00 1072.00 50.00 1071.00 40.00 NPSHA NPSHA (ft) 1070.00 System Head (ft) Hs 30.00 1069.00 20.00 1068.00 10.00 1067.00 1066.00 0.00 0 100 200 300 400 500 600 700 800 900 1000 Cyclohexane Flow Rate (ft3/h)

  29. Fixed Capital Investment

  30. Assignment 6 Design of the Heat Exchanger Network

  31. Cyclohexane Production Unit E2 E1 E3

  32. Selection of Material • Shell-and-Tube Heat Exchangers • Different stream composition in each side • CAUTION! Hydrogen causes damage to carbon steel and low alloy metals; stainless steel must be used

  33. Hand Design • Exchanger E1 designed for two cases: • Single-Pass Tubes • Double-Pass Tubes • Equipment cost determined for each design • T-Q Diagram compared

  34. Overall Heat Transfer Coefficient U = 52 Btu/hr·ft2·˚F Heat Transfer Area A = 1288 ft2 Tubes Length = 16 ft OD = 0.750 in Number = 411 Cost = $22,000 Overall Heat Transfer Coefficient U = 63 Btu/hr·ft2·˚F Heat Transfer Area A = 1119 ft2 Tubes Length = 16 ft OD = 0.750 in Number = 179 Cost = $20,000 Single-Pass Double-Pass

  35. T-Q Diagram for E1

  36. Pro/II Design • Rigorous heat exchanger model used for exchanger E1 • Tube length and diameter and shell diameter were varied to produce the smallest heat transfer area Minimize heat transfer area Minimize cost

  37. Pro/II Design • Shell-and-Tube double-pass heat exchanger • Overall heat transfer coefficient, U = 129 Btu/hr·ft2·˚F • Heat transfer area, A = 964 ft2 • Tubes: • Length = 16 ft • OD = 0.750 in • Number = 19 • Cost of Exchanger E1 = $ 21,715

  38. Fixed Capital Investment Fixed Capital Investment = Direct Costs + Indirect Costs • Based on purchased equipment delivered cost • E1: Stainless steel shell and tubes • E2: Carbon steel shell, stainless steel tubes • E3: Carbon steel shell, stainless steel tubes • Assuming the same heat transfer area for each exchanger as E1 found from Pro/II, the costs are • E1 = $ 21,715 • E2 = E3 = $ 20,370 • Total purchased equipment cost = $ 62,500

  39. Fixed Capital Investment

  40. Distillation Column Design • Pro/II software used • Specified: • Reflux ratio = 24 • Bottom stream = 0.985 mole fraction cyclohexane • Resulted in design specifications of • Pressure = 14.7 psia • Number of stages = 30 • Feed tray = 16 • Tray Spacing = 24 in • Tray type: Valve, 15 in minimum diameter • Column diameter = 78 in • Column height = 60 ft

  41. THANK YOU! Questions?

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