Professional Documents
Culture Documents
190,000 TPA LUBE OIL BASE STOCK AND WAXES VDU RESIDUE
Siddharth Saraswat
Chapter 1 contains the summary of the project and the problem statement.
ii.
iii.
iv.
Chapter 4 includes exhaustive process designing of all major equipment in the plant.
Mechanical designs of some of the equipment have also been presented.
v.
vi.
vii.
Chapter 7 deals with the environmental protection and energy conservation in the
plant. Possible sources of pollutants of all kinds are investigated and their mitigate
measures suggested. Uses of alternative sources of energy are assessed.
viii.
Chapter 8 gives in full detail of the utilities involved in the plant. Considerations are
taken for various types of utilities, their application range and their general facilities.
ix.
x.
Chapter 10 covers the market prospects of the product with pivotal focus on analysis
of demand and supply, export potential and marketing network.
xi.
Chapter 11 covers site selection. Alternative feasible sites are weighed and the best
site selected. It also covers the plant layout.
xii.
Chapter 12 deals with assessment of the economic viability of the project. It shows in
detail the total project cost estimations, cash flow diagram, and break even analysis and
implementation schedule.
xiii.
Drawings of process flow sheet, material and energy information, process instrumentation
and control, mechanical designs and plant layout are included in the report.
CHAPTER 1
SUMMARY OF THE PROJECT
REPORT
Project at a Glance
1.
Product
2.
Capacity
190000 TPA
3.
Location
4.
Raw Materials
Vacuum residue
5.
Propane Deasphalting
Furfural extraction
Solvent dewaxing
Hydrofinishing
CHAPTER 2
PROJECT DESCRIPTION
1) Introduction
Lube oil Base Stocks
The base stocks used to formulate lubricants are normally of mineral (petroleum) or
synthetic origin, although vegetable oils may be used for specialized applications.
Synthetics can be made from petroleum or vegetable oil feedstocks and are "tailor
made" for the job they are expected to do. Lubricant base stocks influence additive
performance through two main functions: solubility and response. For example,
performance of surface active additives such as anti-wear (AV) or extreme pressure
(EP) depends largely on their ability to adsorb on the machine surface at the proper
time and place. Base stocks with poor solubility characteristics may allow these
additives to separate before they can fulfill their intended functions. Conversely, base
stocks with very high-solubility characteristics may keep the additives in solution, not
allowing them to adsorb.
DEASPHALTING UNIT
This Unit produces deasphalted oil (DAO) by removing asphalt from short Residue obtained
from vacuum Distilation Unit (VDU). Asphalt removal is effected by extraction with liquid
Propane. Deasphalted oil is sent to Furfural unit for aromatics removal.
Solvent deasphalting takes short residue feed from VDU and removes the paraffinic DAO
from the asphalt by counter current solvent extraction. In the extraction, the DAO component
in the feed is soluble in the liquid propane at operating temperatures of the extractor.
Whereas, the asphalt component remains undissolved and which settles down at bottom and
this property is used in extraction.
This propane-DAO mix leaving the top of extractor is sent to a ROSE(Residuum oil super
critical extraction) column. Here the feed is heated and maintained above the supercritical
temperature of propane(above 93degrees C).At this temperature, the solubility of DAO
propane is negligible and hence DAO separates out at bottom and sent out for further
recovery. The main advantage of ROSE process than the conventional process(which uses
distillation to separate propane from DAO mix) is the savings in energy.
Short residue feed is charged to the unit, by the offsite pump at a temperature of 1300C at the
unit battery limits.
Vacuum residue enters the column frop top and propane solvent required for the extraction
enters the bottom of the Extraction Columns, thus providing counter current flow. The total
propane flow is such that 6 volumes (standard) of propane per volume (standard) of feedare
mixed in the Extraction Columns. The columns operate at a pressure of about 38Kg/cm2g at
the top.
Asphalt is insoluble in the solvent at the extraction conditions and therefore drops out of
solution and exit through the bottom of extraction column, taking some amount of propane
along with it.
DAO is soluble in propane at the extraction conditions. As the DAO/propane phase flows
upward in the Extraction Columns, it passes by a set of heating coils or heat exchangers
located in the top section of the extractors.
The extraction temperature effectively controls the DAO yield. Higher operating
temperaturesresult in less product extracted overhead. A lower operation temperature
produces more DAO, but of a poorer quality.
Since certain primary process parameters (i.e. total solvent-to-oil ratio, solvent composition,
and operating pressure) are fixed or set a relatively constant value, the Extraction Column
operating temperature is used as the primary performance control variable. The operating
temperature of Extraction Columns effectively controls DAO yield. Higher temperature will
result in lower yield at higher quality while lower
temperature will result in a higher yield but of a poor quality.
The Extraction Column overhead DAO/propane solution (i.e. rich solvent) is boosted to a
pressure above its critical value by the Extractor Overhead Booster
Pump . Then it is heated above the critical temperature of the pure solvent by exchanging
heat with recovered solvent in the ROSE Exchanger and M.P. steam in the DAO Separator
Preheater (32-E-119). The DAO Mix then enters the DAO Separator.
Increasing the temperature of the pure solvent above its critical temperature takes advantage
of the solvents low-density properties in this region. As the temperature increases above the
critical point, the density of the solvent significantly decreases to values approaching that of
dense gases. At this increased temperature, the DAO is virtually insoluble in the solvent, and
a phase separation occurs. About 90+% of the extraction solvent is recovered by this
supercritical phase separation. The DAO Separator operates at a pressure of 43 bar and a
temperature of 1020C.
The DAO Separator operating conditions are set to achieve the required density difference
needed for good separation. Adjusting the discharge of the Booster
Pump controls the pressure. Adjusting the steam flow to the DAO Separator
Preheater controls the temperature.
Supercritical phase separation in the DAO separator and subsequent heat recovery in the
provides significant energy savings over conventional deasphalting process. The conventional
process requires substantial energy to vaporize and condense subcritical solvent in the solvent
recovery.
The DAO with some remaining propane enters the DAO Strippers on liquid level control
from the DAO Evaporation Columns where the pressure is reduced to 1.7-kg/cm2g. The
DAO is contacted with steam in the DAO Stripper to strip the remaining propane to low
levels in the product stream. DAO product is withdrawn from the bottom of each DAO
Stripper and pumped by the DAO Product Pump (32-P-4/104) through the DAO-Propane
Exchanger and the DAO Cooler to the battery limit.
Some solvents dissolve hydrocarbons at all temperatures and form homogenous (single
phase) solutions; e.g. carbon tetrachloride, dichloromethane, ethyl ether etc. Some other
solvents dissolve selective components of hydrocarbons and leave others, thus forming a two
phase solution, up to a limited temperature (called the critical solution temperature- CST).
However, above the CST, two phases dont exist and only one remains. These selective
solvents are of great importance in lube base stock manufacture.
Raw lube base stocks (vacuum distillate cuts) contain tars, asphaltenes, polycyclic aromatics
etc. which are undesirable in the finished lube oil base stocks. These undesirable components
behave unfavourably in respect of their viscocity characteristics at higher application
temperatures and also sometimes degrade to leave undesirable deposits during use. The
demulsibil ity of the base stock also gets affected unfavourably in the presence of the
undesirable components. Hence, there is need to eliminate them and this is achieved by
selective solvent refining.
Selective solvent refining involves mixing of the solvent with vacuum distillate cut in the
required proportion and allowing the mixture to settle and separate into two phases in an
extractor. The solvent, solvent/feed ratio and the extractor operating conditions are so
selected that the required degree of separation of undesirable components occurs and two
distinct phases of the desirable and undesirable hydrocarbons dissolved in solvent separate
out. These phases, called raffinate phase and extract phase respectively, are processed
separately to recover the solvent for re-use and leave the raffinate and extract for subsequent
processing/use.
The ability of a solvent to keep the hydrocarbon components in solution is called its solvent
power. For the given hydrocarbon feed and at fixed solvent/ feed ratio, solvents that can hold
more of selective hydrocarbons in solution can be termed as solvents with high solvent
power. High solvent power is desirable because this determines the solvent circulation rates
in the commercial plant and decides the equipment sizing and energy consumption for
pumping as well as for solvent recovery.
Selectivity of a solvent indicates the degree of preference with which a component or a group
of components is dissolved in it from a mixture. For the same solvent & feed quality at higher
solvent/feed ratios, the dissolving power increases and selectivity decreases. The result is a
raffinate of higher quality, but lower yield. Additives like water in phenol or furfural
10
OPERATING VARIABLES
Solvent/feed ratio:
Higher solvent/feed ratio results in raffinate of better quality and lower yield This is because
of improved solvent power and reduced selectivity.
Water in furfural
Water contamination in furfural decreases the solvent power and has the same effect as
reduced solvent feed ratio.
11
PROCESS
The feed oil is pumped to the extraction tower via a pump and furfural enters the column
from bottom, thus creating countercurrent flow along the extractor. Packed bed is used for
sufficient contacting.
The extract stream is preheated and is sent to a flash drum for furfural separation. This flash
drum operates at low pressure in the range of 150mmHg and temperature of 160-170 0C. the
bottoms are then sent to the stripper column where remaining furfural is stripped of the oil.
The final output that is oil free from aromatics is then sent to storage tanks.
Solvent Dewaxing Unit process the vacuum distillates obtained from VDU either directly
from vacuum Distillation Unit or after processing the same in Furfural Extraction unit. The
objective of this process is to remove paraffinic hydrocarbons to the extent that the lube base
stock produced will have enough low pour point so that is suitable for low temperature
applications.
Solvent dewaxing Is a complex process which includes extraction and crystallisation
followed by filtration. The solvent blend used in the process under the prescribed operating
conditions, extracts the useful part of the feed stock (i.e. the lube oil), crystallises and
precipitates the undesirable\ part (i.e. wax). The two phase mix thereby developed is filtered
and the useful filtrate solution is separated from wax solution. The solvent being used for this
process is a mixture of Methyl Ethyl Ketone (MEK) and Toluene in volumetrically equal
proportions.
Oil Solvent
A solvent is required to dissolve the desired components of the charge stock (e.g. Benzene,
Tolune). In our case it is Tolune.
12
CRYSTALLISATION
Crystals are highly organised type of matter with its constituents arranged as space lattice
conforming to any of the standard crystallographic forms.
Each substance has definite crystalline form and chemically similar substances have the same
crystalline form. In the process of crystallisation, the solution when cooled to a temperature
of saturation or lower, the soild phase separates out in the form of crystals. Process of
crystallization takes place simultaneously with (i) Nucleation & ii) Growth.
Above supersaturation, the nucleation is spontaneous and then onwards, nucleation & growth
proceed together. Above saturation but below supersaturation, the growth occurs only when
nucleation is started by seeding with external agents. Nucleation would be
(i) Spontaneous (as in case of above super saturation)
(ii) due to presence of foreign substances
(iii) due to seeding of solution
(iv) due to attribution of existing crystals.
Crystallisation is a complex process involving both heat & mass transfer in a multiphase,
multicomponent system. In the dewaxing process ex- tractive crystallisatlon takes place.
Under suitable chilling condItions., the oil is extracted, the wax is precipitated to saturated /
super saturated condition in the wax phase and nucleation & growth of crystals proceed.
The hydrocarbon components (i.e. waxes) that precipitates may be normal
paraffins iso-paraffins, napthenes or traces of aromatics. The wax crystals that form may be
plate, needle, malcrystalline or microcrystalline.
The size and shape of wax crystals are affected by the following:
13
Non-uniform growth of crystals, thus increasing the range of crystal size distribution. This is
not favourable for good filtration.
Excessive agitation, however, results in breaking of already formed crystals which would
multiply the nuclei and result in large range crystal size distribution
The oil from storage tanks is mixed with equal amounts of toluene and MEK solvents at
ambient temptrature in a mixer. The mixing is exothermic and final output temperature is
around 400C. the oil solvent mix is then heated using saturated steam to about 950C in order
to dissolve any wax that is already coagulated in order to prevent uncontrolled crystallization
in chillers.
(i) High solvent power for oil & low solvent power for wax.
(ii) Low viscosity at operating temperatures to reduce pressure drops
as well as helps in precipitation/crystallisation of wax.
(iii) Good filtrabIlity.
(iv) Low freezing point and temp. effect of dewaxing.
(v) High thermal/chemical stability.
(vi) Low corrosivIty.
(vii) Low explosivity.
(viii) Low toxicity.
(ix) High biodegradability.
(x) Boiling point much lower than that of the feed stocks.
(xi) Low latent heat/specific heat.
PROCESS
The solution is then cooled using cooling water to about 45 degree Celsius. The stream is
then divided into 6 parallel trains which then undergo crystallization in double pipe heat
exchangers.
The stream first exchanges heat with the cold filtrate stream and then flows inside two
scrapped surface heat exchangers where the loose heat to vaporizing ammonia flowing in
annular side.
15
The process of crystallization takes place in these exchangers the stream is then sent to the
rotary vacuum filter. Suction pressure is maintained using inert gas due to which the solvent
is sucked in and the wax is deposited on the filter cloth as cake. Washing of wax cake is done
using solvent in order to remove the oil entrained in the wax.
The wax is removed by doctors knife and the solvent after passing through heat exchangers
is sent to the flash drum where .6kg/cm2 pressure is maintained and a temperature of 102 0C
is maintained.
Then the bottoms are sent to the stripper column where remaining solvent is removed by
stripping the feed stream by steam at 1.5 kg/cm2 pressure and 1020C.
16
17
Another factor that is also favouring Group II and III production is crude selection. Due to
availability and price issues, several refiners have moved away from light and sweet crudes
(e.g. crudes with high API gravity and low sulphur content) towards heavy sour crudes (e.g.
crudes with low API gravity and high sulphur content). Unfortunately, this shift poses serious
problems to base oil production. In fact, light crudes are good lube crudes, or in other
words, crudes that give high yields of base oil feedstock, while heavy crudes are non-lube
crudes, that is crudes with low base oil yields.
The shift from a lube to a non-lube crude is a problem primarily for Group I base oil
production. The reason for this is that Group I base oils are produced mainly by separation
processes, which means that the lube molecules must be present in the distillate. Instead,
Group II and III base oils are produced by conversion processes, which means that new
(lube) molecules can be formed and the chemical composition of the final product can be
influenced.
Finally, the last external factor driving future base oil supply is commonly referred to as the
technology paradox, which is that the highest quality base oil has the lowest cost of
production. Group II and III base oil plants produce high quality base oils, higher base oil
yields and higher value products and by-products than Group I plants and have lower capital
and operating costs.
To summarize, Group I plants are more sensitive to crude selection, have bad economics and
do not present any synergy with a fuel strategy. On top of this, if we look at the demand,
which is historically driven by the automotive industry, we observe an increasing use of
Group II and III base oil and a decreasing use of Group I base oils.
For this reason, as the announced oncoming Group II and III capacity will most likely lead to
a large oversupply, several market analysts agree that Group I refineries will close to
compensate for new G II and G III capacity. The refineries that are more likely to close are
higher costs and small scale operations. Another factor that will be determining is whether
the operations are strategic to the overall business. Also, refineries with excess fuel hydrocracking capacity are more likely to close down the base oil line. The time frame of the
closures will be mainly decided by the time of the coming on stream of the new capacity.
However, as we are already seeing, the recession will have an impact and accelerate closures,
as a result of lower demand and lower prices leading to shrinking margins and promoting
rationalization of operations.
18
Petroleum lubricating oils are made from the higher boiling portion of the crude oil that remain
after removal of the lighter fractions. Crude oils contain varying amounts of compounds of
sulfur, nitrogen and oxygen, metals such as vanadium and nickel, water and salts. All of these
materials can cause problems in refining or subsequent product applications. The manufacture
of the lube base stocks from crude oil involves a series of subtractive processes to remove these
undesirable components, resulting in a base oil that meets performance requirements. The
manufacture of the lube base oils involves following processes.
Solvent Extraction
19
Extraction process involves removal of impurities in the base oils like aromatics, polars,
sulfur and nitrogen compounds. Especially, aromatics make poor quality base oils because
they are among the most reactive components in the natural lube boiling range. Oxidation of
aromatics can start a chain reaction that can dramatically shorten the useful life of a base oil.
Conventionally, solvent(furfural) extraction was adopted as the purification process, in which
aromatics are removed by feeding the raw lube distillate (vacuum gas oil) into a solvent
extractor where it is countercurrently contacted with a solvent. The resulting product is
usually referred to as raffinate. Hydrocracking is a more recent form of purification process.
It is done by adding hydrogen to the base oil feed at higher temperatures and pressures. Feed
molecules are reshaped and often cracked open into smaller molecules. A great majority of
sulfur, nitrogen and aromatics are removed. This massive reforming process produces
molecules that have improved viscometrics and thermal and oxidative stability than product
from solvent extraction process.
Solvent Dewaxing
The next step in the lube base oil manufacture is the dewaxing process. Solvent dewaxing
process utilizes dewaxing solvents like MEK(methyl-ethyl-ketone), which is one of the most
popular ones, to be mixed with the waxy oil. The mixture is then cooled to a temperature 10
to 20 below the desired pour point. The wax crystals are then removed from the oil by
filtration. More desirable alternatives to the solvent dewaxing are i) catalytic dewaxing and ii)
wax hydroisomerization. Catalytic dewaxing removes long n-paraffins and waxy side chains
from other molecules by catalytical cracking them into smaller molecules. The wax
hydroisomerization process, more advanced form of the catalytic dewaxing process,
isomerizes n-paraffins and other molecules with waxy side chains into branched molecules
with very desirable quality as lube base oils rather than cracking them away.
Hydrofinishing
The final process in the manufacturing of lube base oil is hydrofinishing to improve color and
thermal/oxidative stability of base oil. In hydrofinishing process, hydrogen is added to base
oil at an elevated temperature in the presence of catalyst. By reaction of hydrogen with some
remained sulfur and/or nitrogen containing molecules, these sulfur/nitrogen containing
compounds are decomposed into smaller molecules to improve product color and stabilities.
20
High specific gravity for rapid separation of the oil and solvent phases;
Furfural
Phenol
N-methyl-2-pyrrolidone, or NMP.
21
Environmental and toxicity criteria have taken on an increasing importance in recent years, and
this explains why the phenol process, which was very widely used in 1937, has remained static.
NMP, by itself, is not corrosive to carbon steel. However, because of NMPs high dielectric
constant, other corrosive compounds will readily ionize in NMP and become very aggressive.
The NMP condensing circuit may be at risk to accelerated corrosion from accumulated
corrosive elements or
corrosion/erosion from high velocities.
It is clear that furfural is applicable for wide range of raw materials, it has a low potential to
form emulsion, it separates easy from oils, and it gives higher raffinate yield in some cases. It
is also better in circulation of the solvent and it requires lower corrosion protection. The most
important reasons for the use of furfural are its low toxicity, low price, availability, better
selectivity and excellent extraction is there is relatively low solvent/oil ratio. Therefore, furfural
is the most often used solvent for extraction of paraffin and naphthene distillates nowadays.
2. Selectivity
3. Solvent boiling point lower than the boiling point of the oil
4. Low heat capacity
5. Heat of vaporization
6. Low viscosity
7. Non-Toxic
8. Non-corrosive
9. Low freezing point
10. Inexpensive
11. Readily Available
Ketone units typically use a dual solvent system consisting of MEK and
either MIBK or Toluene. The MEK acts as an antisolvent to reject wax
molecules from solution. This reduces refrigeration requirements but
excessive MEK may cause oil phase separation. The second solvent keeps the
oil in solution but also dissolves some wax. MIBK and toluene act as
prosolvents.
Wax
Viscosity
Solubility
@ 0C, cSt
BP, C
Latent
Heat Specific
of
Heat,
Vaporization, cal/g-oC
g/100 ml
cal/g
MEK
0.25
0.40
80
106
0.55
MIBK
0.90
0.61
116
87
0.46
Toluene
13.0
0.61
111
99
0.41
23
MEK/Toluene systems will require a lower filtration temperature to achieve the same pour
point. MEK/MIBK solvent mixture viscosity is lower than MEK/Toluene. Filtration rates are
higher for MEK/MIBK. Toluene costs less than MIBK.
% distilled
390-400
.0049
400-420
.0080
420-440
.0112
440-460
.0315
460-480
.0509
480-500
.0951
500-520
.1249
520-540
.1245
540-560
.1109
560-600
.0922
600-650
.0743
650-700
.1095
700+
.162
24
Furfural
Furfural is an organic compound derived from a variety of agricultural byproducts, including
corncobs, oat, wheat bran, and sawdust. The name furfural comes from the Latin word furfur,
meaning bran, referring to its usual source. It is a colorless oily liquid with the odor of
almonds, but upon exposure to air samples quickly become yellow.
Boiling point : 161.7 0 C
Molar mass : 99.06g/mole
Density : 1.16g/cm2
Furfural structure.
Hygrogen gas is used for hydrofinishing o lube oil base stock.
Methyl Ethyl Ketone (MEK):
Butanone, also known as methyl ethyl ketone, is an organic compound with the formula
CHCCHCH. This colorless liquid ketone has a sharp, sweet odor reminiscent of
butterscotch and acetone.
25
1. Formula: C4H8O
2. Boiling point: 79.64 C
3. Density: 805.00 kg/m
4. IUPAC ID: Butan-2-one
5. Molar mass: 72.11 g/mol
6. Melting point: -86 C
7. Soluble in: Water
Toluene:
Toluene, formerly known as toluol, is a colorless, water-insoluble liquid with the smell
associated with paint thinners. It is a mono-substituted benzene derivative, consisting of a
CH group attached to a phenyl group.
Methyl ethyl ketone and toluene are used as a solvent in 1:1 ratio for the dewaxing process.
Availability: Indigenous/Imported
Light Arabian Crude is imported from Saudi Arabia through pipelines
26
Prevailing Prices
Vacuum residues prevailing price is Rs. 19/kg.
27
CHAPTER 3
MATERIAL AND ENERGY
BALANCE
28
FLASH DRUM :
flash inlet stream flow rate = 1170725.85 kg/hr
= 9365811.473 TPA
Top (propane vapor) stream flow rate = 8556914.582 TPA
Bottom flow rate
= 808896.8914 TPA
= 101112.3 kg/hr
29
30
Final output : deasphalted oil with very little amount of moisture present = 60954.4415 kg/hr
= 487635.532 TPA
= 38281.93 kg/hr
32
15% waxes are removed and it carries over with it 30% oil and about 30% solvent.
i.e the wax obtained from the filter containes 810.9675 kg/hr of wax 243.751 kg/hr of oil and 256.5
kg/hr of solvent.
Mass in = 18165.14 + 798 kg/hr
= 18963.14 kg/hr
Mass out = 17586.02 + 1376.265
=18963.14 kg/hr
Mass in = mass out
(slight difference in values is a result of rounding of)
35
CHAPTER 4
PROCESS DESIGN
36
EQUIPMENT NAME
E 01
E 02
E 03
E 04
E 05
E 06
E 07
E 08
E 09
E 10
E 11
E 12
E 13
E 14
E 15
E 16
E 17
E 18
E 19
E 20
E 21
P 01
P 02
P 03
P 04
C 01
C 02
F 01
F 02
F 03
F 04
EV 01
S 01
S 02
S 03
S 04
ST 01
R 01
SP 01
FU 01
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
HEAT EXCHANGER
PUMP
PUMP
PUMP
PUMP
EXTRACTOR
EXTRACTOR
FLASH TANK
FLASH TANK
FLASH TANK
FLASH TANK
EVAPORATOR
STRIPPER
STRIPPER
STRIPPER
STRIPPER
STORAGE TANK
REACTOR
SPLITTER
FURNACE
37
M 01
SE 01
MIXER
SEPARATOR
4114.16 ft3/h
49370 ft3/h
439.855 kg/m3
27.45575 lb/ft3
965.917 kg/m3
60.29254 lb/ft3
Interfacial tension
0.0716 cp
0.173208 lbm/ft.h
34 dyne/cm
971448 lb/ft
42.8 ft2/ft3
Void Fraction
0.78
Density Difference dp
32.83679004 lb/ft3
Flooding Correlation
0.2
1.5
( ) ( )( )
38
100.41
Using Crawford and C.R. Wilke, Flooding Correlation for packed extraction towers
(0.5 + 0.5 )2
1000 =
VC/VD= C/D
Vd
20.4 ft/hr
Vc
122.448 ft/hr
D/Vc
33.59924 ft2
6.542292 ft
1.994 m
= ()
d>c, Cp= 0.8
=
8.33 mm
Superficial Velocity
=
39
122.53 ft/h
= 0.92 ()
=
2.3 mm
0.1228 lb.mol/hr.ft2
Kd
0.235 lb.mol/hr.ft2
Partition Coefficient m
=
=
2.18
1
1
= +
Kc
0.045 lb.mols./hr
Packed Height H
= (
=
=
33.575 ft2
0.14815
28.28 ft
8.6 m
40
Total height includes 2ft above and below for inlet and outlet
=
32.28 ft
9.84 m
Pressure Drop
Sauter Diameter Dp
= 1.55 ()
0.5
1.62135 ft
1.6 Kpa
41
= .18
K = ^( + (Flv) + C(ln Flv)2 + D(lnFlv)3 + (Flv)4
A = -1.887747
B = -.81458
C = -.187074
D = -.014523
E = -.001.15
K = .3789
K .38
= ( )/
= 451 kg/m3
= 126 kg/m3
Permitted velocity = Vperm = .61 m/s
Diameter of flash drum = 4 (V )
Diameter = 2.469 meter
2.5 meter
Height of column
Height above feed line = 36 + nozzle diameter/2
Flow velocity max= 100/
Flow velocity min = 60/
Flow velocity max = 8.57 m/s
Flow velocity min = 5.19
Lets take flow velocity = 8m/s
42
= V/(base area)
= 106434*60*8*4/(451*3600*3.14*2.5^2)
= 6.41m
Total height = H = Height above feed line + Heignt above feed line +Height of liquid pool
= 1.2194+.6098+6.41
= 8.2392 =8.24 m
H/D = 8.24/2.5 = 3.29
This value lies between 3 and 5 and so it is acceptable.
Flv top
2.041
= (64125/8874.6049)(887.5)
= .346
= .068
K1(bottom) = .01
44
45
= .6m
= 1.136 m2
= .86336 m2
= .62Dc
64125kg/hr
=
17.81 kg/s
= 89.9 mm
Minimum how = 71.2 mm
at
hw + how =50+71.2 mm
= 121.2
(From graph (11.30) in Richardson & Coulson, vol-6)
K2 = 33
The minimum design vapour velocity, uh is given by:-
Where,
uh = minimum vapour velocity through the holes (based on the hole area), m/s,
dh = hole diameter, mm,
K2 = a constant, dependent on the depth of clear liquid on the plate, obtained
uh = (33- 0.90 *(25.4-5))/ (2.041)0.5
= 10.24 m/s
Actual minimum velocity = minimum vapour rate / Ah
= 0.7*1.20/ 0.0502
=16.73 m/s
This will cause no weeping.
Perforated Area
Angle subtended = 99
Angle subtended by the edge of the plate = 180-99 = 81
Mean length, unperforated edge strips = (1.2 0.05) * 3.14 * 81/180 = 1.624950 m
Area of unperforated edge strips = 50 * 10-3 * 1.20 = 0.0812475 m2
Mean length of calming zone, approx. = weir length + width of unperforated strip
= .744 + 0.05
= .80m
Area of calming zones = 2(.80 * 0.05) = 0.08 m2
Total area of perforations, Ap = .744-0.0812-0.08 = .5826m2
Ah/Ap = 0.0502/.5826 = .086
Lp/dh = 3 acceptable
Number of holes
Area of one hole = 1.9625 * 10-5 m2
No. of holes = 3473 holes
49
Flow rate
(1232343)(10287)(5.07x1.033)
2114
10287
102150
)
10287
ln(
=55 oC
Q
Area= UT
=611.138 m2
Select tube of ID 25 mm and OD 30 mm
Area of one tube =0.459596 m2
No. of tubes =
Total area
Area of one tube
611.138
= 0.459596
=1332.
Sq. pitch=37.5
2000
Db =30x(0.215)^(2.207)
=1567
No. of tubes in centre row Nr =Db/Pt = 1567/37.5
50
=42 tubes
Shell side mean temperature =150 oC
Tube side mean temperature =94.5 oC
Mean temperature of condensate = 150 oC (as saturated steam used )
Assuming condensing coefficient of 1500 W/m2 oC
1500x(150 - Tw)= (150 - 94.5)x800
Tw =120 oC
Physical properties at 120 oC
= 0.2095x10-3
l =930 kg/m3
v=2.51 kg/m3
K=0.6886 W/m oC
Nr =2x42/3 =28
=45795.8/(3600x4.88x1567)
=1.663x10-3 kg/s
(9302.51)x9.81
=1.2721 m/sec.
hi=4200(1.35+ 0.02t)Ui0.8/di0.2 =0.023xRe0.8xPr0.33
Re=
3501.27210.025
6.027410^3
=1.855145x105
Jh=3.5x10-3
Pr=
(6.02410^5)(5237.21)
5.69810^2
=5.582
Nu=jhRe(Pr)0.33
hD/K=(2.5x10-3)(1.855145x105)(5.582)0.33
hi =1864.3 W/m2 oC
Overall coefficient
1
30
30
30
2
30
50x10-3 ln 50
U=536 W/m2 oC
Now using 2 heatexchanger
Initial U=530 W/m2 oC
Q=1232343x5.07x1.033x(102 87)/2
A=461.23 m2
Tubes ID=25mm , OD= 30 mm
No. of tubes =461.23/0.459596 =1004
Using one shell two tube pass
Db=30 (1004/0.156)(1/2.291) =1379 mm
52
3501.9885650.025
6.027410^3
=2.8956x105
Jh=3.5x10-3
Pr=
(6.02410^5)(5237.21)
5.69810^2
=5.582
Nu=jhRe(Pr)0.33
hD/K=(2.5x10-3)(2.8656)(5.582)0.33
53
hi =4074 W/m2 oC
overall coefficient
1
30
30
30
2
30
50x10-3 ln 50
U=628.46 W/m2 oC
Error=18%
Acceptable design
Shell ID= 1379 +80 =1460 mm
Cross flow area =
()
Dsdb=10.2x2.1316 = 0.42632 m2
P=2.33 kPa
54
Extractor E-201
Taking Deasphalted oil as dispersed phase and Furfural as continuous phase
Flow Rate of dispersed Phase = 1940 ft3/h
Flow Rate of continuos Phase = 2328 ft3/h
Density of continuous phase = 1068.3 kg/m3
= 66.68329 lb/ft3
Density of dispersed phase
= 529.882 kg/m3
= 33.07 lb/ft3
= 42.2 dyne/cm
= 1205738 lb/ft
= 0.78
Density Difference dp
= 33.6118 lb/ft3
Flooding Correlation
0.2
1.5
( ) ( )( )
214.44
Using Crawford and C.R. Wilke, Flooding Correlation for packed extraction towers
(0.5 + 0.5 )2
700 =
55
= 231.735 ft/hr
Vc
=278.082 ft/hr
= 2.9811 ft
= 0.9086 m
= ()
d>c, Cp= 0.8
= 39 mm
Superficial Velocity
=
= 278.085 ft/h
Mean column to surface diameter of droplets at zero flow rates
= 0.92 ()
= 2.9 mm
Pratt empirical relationship for kc and kd
56
= 0.60.5
= 1.150.5
Kc
= 0.1042 lb.mol/hr.ft2
Kd
= 0.199 lb.mol/hr.ft2
Partition Coefficient m =
0.608
1
1
= +
Kc
= 0.092 lb.mols./hr
Packed Height H
= (
= 26.2 ft
= 7.9 m
Total height includes 2ft above and below for inlet and outlet
= 30.2 ft
= 9.20 m
Pressure Drop
57
Sauter Diameter Dp
= 1.55 ()
0.5
= 1.83155 ft
= 2.3 Kpa
Double-pipe heat-exchanger oil mix exchanging heat with cold filtrate E16
Filtrate :
viscosity = 1.13*10^(-3) kg/m-s
filtrate flow rate = 14022.34 kg/hr
Cp = 1.5126 KJ/kg
k = .15689
density = 859 kg/m3
waxy-oil mix:
flow rate = 18210.83 kg./hr
Cp = 1.63 kJ/kg
k = .15119
density = 889.391 kg/m3
on heat balance we get temperature of outlet stream to be 320C
properties at mean temprature are mentioned above
we use 20 ft long 4x3 inch pipes
58
LMTD = 18.95 K
a check from table 6.2 kern shows inner area to be higher so hot fluid in inner pipe
annular area = 4.14insq
= .002015 sqmeter
Ga = 14022/area
= 7011000 kg/hr-m2
De= (D2^2 - D1^2)/D1
= (4.5^2 - 3.5^2)/3.5
= .0579 m
viscosity = 1.13x10^(-3) kg/m-s
Rea = GaxDe/viscosity
=359236
Jh = .0022
K = .15689
Pr= 10.89
ha = jhRePr^(.33)k/D
= 4709
Tube side
area = 7.38 sqinch
= .00474m2
Gt = 3841772 kg/hm2
inner dia = 3.068 inch
59
= .0777m
viscosity = 2.48x10^3 kg/m-s
Ret = DGt/viscosity
= 120365
jh = .0029
K= .15119
Pr = 26
ht = 2.9x10^(-3)x120365x(20)^(.33)x.15119/.0777
= 2012.139
hio = hi*ID/OD
= 1763.68
= 68.72 m
no of 20 feet pipes needed = 68.72/6.08
= 11.3037
= 12 pipes
i.e 6 hairpins in series
now total area = 12x6.08x.278
= 20.282 m2
Ud = Q/Adt
= 735.684 W/m2- 0C
Rd = (Uc - Ud)/UcUd
= (1283-735.68)/1283*735.68
= .0005798
Pressure Drop
annulus
De' = D2 - D1
= 4.5-3.5 inch = .0253 m
Re' = 156971
jf = .0021
dP = 8jf (L'/di)Ut2/2
= 8913 KPa
Tube side
Jf = .0028
61
dP = 8jf (L'/di)Ut2/2
= 12562.009
acceptable pressure drop values
1
3
(2
() 1
)2 2 2
Area = 91.06 m2
Therefore, diameter of rotary drum = 4.83 m
62
Nw = nt x ra'
Hb/db = 160.5/706 = .227
from figure 12.41 coulson and richardson vol.6
Ra' = .16
rw = 2 x .16
= .32
Fw = 1.06
Cs = 4.8mm
Asb = 4.8 x 770(2 x 3.14-2.1)/2
= .00772 m2
Al = (atb + asb)/2
= .021224
Al/as = .3579
= .26
Fl = .64547
Hs = flfbfwfhhoc
= 2303.00
Dps = dpifb'fl'
Dpi = 8jfus^(2)ncv/ 2
Jf = .05
Dpi = 2313
Fb' = .64 solved using a= 4
Fl' = .509
Dpc = 753
Window zone pressure drop:
uz = (uwus)^(2)
Uw = ws/aw
= .0491/aw
Aw = 3.14(.77)x.77x .16/4 - 107.52 x 3.14 x .01905^(2)/4
= .5934
67
x fb
= 2094
Dps = 2dpe + dpc(nb-1) + nb x dpw
Nb = 12
So substituting values we get
Dp = 25539
It is below 10 psi so is acceptable
Fouling factor
For shell side = .00033
Tube side = .00053
K= 50 w/m2
1/u = 1/2303 +(19.05/14.83)x1/1526 + .00033 +(19.05/14.83) x .0005 +
(.01905/(2*50))ln(19.05/14.83)
u = 367 w/m2
Value is very close to our assumed value so no further iterations required.
68
1.728
= .2426
Flv bottom = (34582/1500)(1.037/887.5)^(.5)
=.788
taking plate spacing = .6m
K1(top) = .075
K1(bottom)= .045
flooding velocity top = 1.69 m/s
flooding velocity bottom = 1.31539 m/s
assuming 85% of flooding velocity
for base uv = 1.4365 m/s
for top uv = 1.25 m/s
Area of column
Top
volumetric flow rate = mass flow rate/ density
= 1.18194 m3/s
net area = 1.181.94/1.4365
= .82279 m2
Bottom
volumetric flow rate = .3956
net area = .3539 m2
take downcomer area as 12% of total
so now base area = .3539/.88 =.40 m2
top area = .82279/.88 = .93498 m2
70
Diameter of column:
top diameter = (.93498x4/3.14)^(.5)
= 1.09 m = 1.1m
bottom diameter as we can see from area will be less than top diameter so we choose top dia
as column diameter.
Provisional PLate design:
plate spacing = .6m
column diameter = 1.1m
column area = .935m2
downcomer area = .1122 m2
net area = Ac - Ad
= .8228 m2
Active area = .7106 m2
hole area = 10% Aa = Ah (Taking for first trial)
= .07106 m2
weir length = lw = .76Dc
(From Figure 11.31, get lw/DC with help of Ad/Ac)
lw = .76Dc = .76x.935
= .7106 m
assuming weir height = 50 mm
hole diameter = 5mm
plate thickness = 5mm
71
40434.68 kg/hr
11.23 kg/s
Where,
uh = minimum vapour velocity through the holes (based on the hole area), m/s,
dh = hole diameter, mm,
K2 = a constant, dependent on the depth of clear liquid on the plate, obtained
uh = (31 - 0.90 *(25.4-5))/ (1.728)0.5
= 9.61 m/s
Actual minimum velocity = minimum vapour rate / Ah
= 0.7*1.181/ 0.071
72
=11.64m/s
This will cause no weeping.
Plate pressure drop:
Maximum vapour velocity = 16.63 m/s
Percent perforated area = .10(Ah/Aa, approximately)
Plate thickness/hole diameter = 1
(From graph (11.34) in Richardson & Coulson, vol-6)
Orifice coefficient, Co = 0.84
Dry plate drop (hd):-
Perforated Area
Lw/Dc = 0.76
Angle subtended = 99
Angle subtended by the edge of the plate = 180-99 = 81
Mean length, unperforated edge strips = (1.1 0.05) * 3.14 * 81/180 = 1.4836 m
Area of unperforated edge strips = 50 * 10-3 * 1.4836 = 0.07428 m2
Mean length of calming zone, approx. = weir length + width of unperforated strip
= .7106 + 0.05
= .7606m
Area of calming zones = 2(.5355 * 0.05) = 0.07606 m2
Total area of perforations, Ap = .7606-0.07428-0.07606 = .61026m2
Ah/Ap = 0.07106/.61026 = .1164
Lp/dh = 2.7 acceptable
Number of holes
Area of one hole = 1.9625 * 10-5 m2
74
Vapor composition
flow rate = 7352.6 kg/hr
Mek = .1589
Toluene = .1393
Water = .7018
Temprature = 118.60c
Density = 1.728 kg/m3
Number of trays as found from aspen hysys simulation in order to minimize solvent in the
bottoms with minimum utility composition = 10
liquid feed entering the system = 40434.68
75
top section;
1.728
Properties of catalyst
Catalyst used = 1/8(3.2-mm) low-density cobalt-molybdenum catalyst
Chemicals (wt% dry basis)
76
MoO3
15
CoO
3.2
NiO
--
SiO
--
Physical Properties
Surface area (m2/g)
310
0.80
Diameter (in.)
0.125
0.23
36
4.2
77
Condensor E13
Shell side
Cold fluid
Temperature in (Tin)( o C)
42
95
Viscosity, (Ns/m2)
0.97695
Density, (kg/m3)
846.105
Conductivity , (W/m2o C)
0.13297
1.927
Tube side
Hot fluid
Temperature in (tin)( o C)
120
120
2202.3
density (kg/m3)
1.129
Viscosity (Ns/m2)
0.000013
0.00022
Conductivity (W/m2o C)
0.679
For a 1 shell - 4tube pass split ring floating head heat exchanger
Tube side: Cold fluid
Shell Side: Hot Fluid
Assumption U = 800W/m2-K
Trial Area =
=83.183 m2
1/n1
Nt
Bundle Diameter = Db do
K1
For Square Pitch K1 = 0.158 & n1 = 2.263 (Ref Table 12.4 , C&R Vol 6)
Db = 0.519253 m = 519.253 mm
80
hi =9187.276 W/m2 oC
= 0.0666442 m2
Mass flow rate , based on inlet conditions(Gs) = 21.1196 kg/s m2(Ref section 12.7.2, Page
660, C&R vol 6)
Equivalent Diameter,de = 18.81 mm
Vapour visocity = 0.00022 Ns/m2
Reynolds Number =
Gsde
= 1805.7258
Jf = 0.032
Heat transfer coefficient h0 = 4648.9132 W/m2o C
81
d
do ln o
1
1
1
di d o 1 d 0 1
U o ho hod
2k w
di hid di hi
Uo = 802.94 W/m2oC
Acceptable, error is very less.
2
= [8 ( ) ( ) + 2.5]
2
=
33.33 KPa
This is acceptable
2
= [8 ( )
( )
] = 5.876874
2
(Ref. Eq. 12.26 C&R Vol 6)
This is acceptable.
82
CHAPTER 5
MATERIALS STORAGE &
HANDLING FACILITIES
83
Vacuum Residue
Storage
No precautionary measures are required.
Handling
Contact with hot material can cause thermal burns which may result in permanent skin
damage. Hot product may cause severe eye burns and/or blindness.
Not classified as flammable but will burn. Do not allow molten material to contact water or
liquids as this can cause violent eruptions, splatter hot material, or ignite flammable material.
These deposits, (carbonaceous materials and iron sulphides), may be pyrophoric and selfignite when brought into contact with air (opening of tank).
Propane
Storage &Handling
Keep containers away from heat sources or temperatures exceeding 130 degrees F.
Do not drop or roll any container.
Store and transport containers with relief valves in vapor space.
Keep all container valves closed when not in use.
Keep protective caps (if applicable) on containers when not in use.
Furfural
Storage
Keep containers away from heat sources or temperatures exceeding 130 degrees F.
Do not drop or roll any container.
Store and transport containers with relief valves in vapor space.
Keep all container valves closed when not in use.
Keep protective caps (if applicable) on containers when not in use.
Handling
Keep containers away from heat sources or temperatures exceeding 130 degrees F.
84
85
CHAPTER 6
PROCESS INSTRUMENTATION
86
ii. Good repeatability, high accuracy, low hysteresis and long term stability
iii. Pressure at the bottom of the water tank
f.
3. Barometers
i. Measure atmospheric pressure
ii. Sensitive and measure absolute pressure
ii. For meteorological purposes
a. Liquid in Glass Barometer
i. Fragile and their accuracy is affected by temperature variations
ii. Used in fixed position
ii. Used for calibrating other pressure sensors or as a datum in laboratories
b. Aneroid Barometer
i. For domestic purposes
ii. Simple to read and take less space
iii. Not affected by temperature changes as significantly
iv. Less accurate
Measured
Property
Temperature
sensor
Temperature
controller
Pressure
sensor
Pressure
controller
Gas interfacial
area
Flow sensor
Flow controller
Level sensor
Level
controller
Concentration
sensor
Concentration
controller
Heat
exchanger
RTD
Packed bed
reactor
RTD
Condenser
separator
RTD
RTD
PID
PID
PID
PID
Piezoresistive
Piezoresistive
PID
PID
Coriolis
PID
-
Coriolis
PID
Microwave
PID
Coriolis
PID
-
Coriolis
PID
Microwave
PID
Photometer
PID
it. The RTD element is made from a pure material, typically platinum, nickel or copper. The material
has a predictable change in resistance as the temperature changes and it is this predictable change that
is used to determine temperature. They are slowly replacing the use of thermocouples in many
industrial applications below 600 C, due to higher accuracy and repeatability.
90
Multiwave Photometer:
The ABB process Multiwave photometers provide continuous on-line measurement of gas or liquid
components, in simple or complex streams, for process control, product quality assurance, safety,
catalyst protection and area monitoring. These photometers operate in the infrared (IR), near infrared
(NIR), ultraviolet (UV) and visible (VIS) regions. The filter photometer accepts up to eight wave
lengths, increasing the number of measurement solutions. Because it uses multiple wavelengths, the
photometer can compensate for many types of interference and handle multiple component
applications. The process photometers connect to analyser network and incorporate the use of the
fibre optic sampling accessories for added measurement capability.
91
CHAPTER 7
ENVIRONMENTAL PROTECTION &
ENERGY CONSERVATION
92
Fugitive Emissions
These are emissions that are not released througha vent or stack. Examples of fugitive
emissions include dust from stockpiles, volatilization of vapor from vats, open vessels, or
spills and materials handling. Emissions emanating from ridge line roof-vents, louvres, and
open doors of a building as well as equipment leaks, and leaks from valves and flanges are
also examples of fugitive emissions.
Emissions to Water
Emissions of substances to water can be categorized as discharges
to:
although they are of low energy type, they are adequate to meet present state and local
air pollution regulations.
(e) Rotoclones
In rotoclones, particulate laden gas is ducted through a stationary impeller at high
velocity, forcing the scrubber liquor to form a turbulent sheet. The centrifugal
force exerted by rapid changes in the direction of flow, causes the ammonium
sulfate particulates to impinge on the turbulent sheet. Vendor design efficiency
data indicate that general particulate collection efficiency typically ranges from 93
to 99.3 % for articulates 3 micron in diameter for type N rotoclones with
pressure drops of 15.24 to 28 cm. and high liquid to gas ratios.
95
In spite of the fact that insulation covering the duct work and baghouse minimizes
temperature drop in the dryer exhaust gas, the following indicate that the temperature of the
dryer exhaust and/or baghouse surfaces were not maintained sufficiently above dew point at
all times.
96
CHAPTER 8
PLANT UTILITIES
97
Steam
Steam is the technical term for the gaseous phase of water, which is formed when water boils.
Technically speaking, in terms of the chemistry and physics, steam is invisible and cannot be
seen; however, in common language it is often used to refer to the visible mist of water
droplets formed as this water vapor condenses in the presence of (cooler) air. At lower
pressures, such as in the upper atmosphere or at the top of high mountains water boils at a
lower temperature than the nominal 100 C (212 F) at standard temperature and pressure. If
heated further it becomes superheated steam.
The enthalpy of vaporization is the energy required to turn water into the gaseous form when
it increases in volume by 1,600 times at standard temperature and pressure; this change in
volume can be converted into mechanical work by steam engines such as reciprocating piston
type engines and steam turbines, which are a sub-group of steam engines.
Steam is traditionally created by heating a boiler via burning coal and other fuels, but it is
also possible to create steam with solar energy. Water vapor that includes water droplets is
described as wet steam. As wet steam is heated further, the droplets evaporate, and at a high
enough temperature (which depends on the pressure) all of the water evaporates and the
system is in vaporliquid equilibrium.
Superheated steam is steam at a temperature higher than its boiling point for the pressure
which only occurs where all the water has evaporated or has been removed from the system.
The role of steam in the Chemical Industry is very significant. It is one of the heat carriers. It may be
saturated or unsaturated. In the industry three types of steam is found:
High pressure steam
Medium pressure steam
Low pressure steam
Steam is used as a heating media at various places in the plant including the reboiler of distillation
column. In our plant steam is being used Heat Exchanger, in reactors and in reboilers.
Water
Water is one of the most important and readily available utilities. Water acts as one of the most
important components in the chemical process industry. It is highly used as a heat transfer media
because of its low reactivity with other organic or inorganic compounds and also it is non
flammable. Water will be used for the all kinds of heat transfer in this process industry i.e. in different
heat exchangers. Requirement of water depends on the amount of cooling which have to be done in
the process. Excessive cooling may require a huge amount of water and may be if water is not
available in adequate amount refrigeration unit for water has to be installed so that proper cooling
takes place. Cooling water may be used if required. For the generation of steam, water will be
required in boilers. Water is also used for cleaning and washing during maintenance and drinking
purposes. Required degree of water purity depends upon the particular use of water. I the raw water is
impure, as usually the case, then it is better to have a number of separate purification systems,
preliminary treatment of all raw water entering the plant may include screening and sedimentation to
remove suspended solids, but subsequent treatment will depend will depend upon the ultimate use for
water system.
98
Water is used as heat transfer fluids in diverse heat exchange systems, due to its availability and high
heat capacity, both as a coolant and for heating. Cool water may even be naturally available from a
lake or the sea. Condensing steam is a particularly efficient heating fluid because of the large heat of
vaporization. A disadvantage is that water and steam are somewhat corrosive. In almost all
electric power stations, water is the coolant, which vaporizes and drives steam turbines to drive
generators.
Cooling Water - The water used for cooling is known as cooling water. Water cooling is a method
of heat removal from components and industrial equipment. As opposed to air cooling, water is used as
the heat conductor. Water cooling is commonly used for cooling automobile internal combustion
engines and large industrial facilities such as hydroelectric generators and chemical plants. Other uses
include cooling the barrels of machine guns, cooling of lubricant oil in pumps; for cooling purposes
in heat exchangers; cooling products from tanks or columns, and recently, cooling of various major
components inside high-end personal computers. The main mechanism for water cooling is convective
heat transfer.
Cooling water is the water removing heat from a machine or system. Cooling water may be recycled
through a recirculating system or used in a single pass once-through cooling (OTC) system.
Recirculating systems may be open if they rely upon cooling towers or cooling ponds to remove heat
or closed if heat removal is accomplished with negligible evaporative loss of cooling water. A heat
exchanger or condenser may separate non-contact cooling water from a fluid being cooled, or contact
cooling watermay directly impinge on items like saw blades where phase difference allows easy
separation.
Fire Water The requirements of fire water are intermittent and it may be assumed that other services
will be shut down if necessary to provide sufficient water capacity. The storage for necessary water will
be in the form of a pond. Fire water requires no treatment.
Utility Water It is used for miscellaneous washing operations such as cleaning of operating area. It
should be free from sediments but does not require any other treatment. Notices should be posted to
ward personnel not to drink this water. Water is being used in our plant in cooler, condensers and wash
towers.
Fuel
Fuels are any materials that store potential energy in forms that can be practicably released and used
for work or as heat energy. The concept originally applied solely to those materials storing energy in
the form of chemical energy that could be released through combustion.
At the present time the most common fuels are Coal, Oil and Gas. Coal and Oil are mainly used for
production of steam in boilers. In our processes, steam is being produced by water heat boiler and by
recovery of hat from flue gases.
Finely ground bituminous coal, known in this application as sea coal, is a constituent of foundry sand.
While the molten metal is in the mould, the coal burns slowly, releasing reducing gases at pressure,
and so preventing the metal from penetrating the pores of the sand. It is also contained in 'mould
wash', a paste or liquid with the same function applied to the mould before casting. Sea coal can be
mixed with the clay lining (the "bod") used for the bottom of a cupola furnace. When heated, the coal
99
decomposes and the bod becomes slightly friable, easing the process of breaking open holes for
tapping the molten metal.
Electricity
Electricity acts as the most important key component without which any of the process is not possible.
Electricity would be used for all kind of mild heating purposes, for running of different pumps and
different motors in the process industry. In a chemical industry, the power is supplied in the form of
electric energy. Pumps, compressors, etc similar equipments are usually operated by electric motors.
Electricity is the main component in todays era when the control is done with the help of different
automated instrumentation which automatically control the flow rate, temperatures of different
heating devices and also pressure building devices. For all such controls the need of electricity is must
in the industry. Total power consumptions will depend upon the amount of heat generated with
electricity and how much heat is produced from boilers.
Air
Liquid Ammonia
Liquid ammonia is being used in the dewaxing unit of the plant as a refrigerant.Its boiling point is 28oF
Additional facilities
Maintenance Facilities
The process plant has been provided with a machine shop equipped with standard tools. Since a large
mechanical labor will be maintained for regular shut down and repair of operating units, the same
personnel will be used for regular maintenance and building special equipment.
Plant Roadways
They are designed to permit easy access to all portion of the plant for mobile servicing equipment,
truck and firefighting apparatus. Road are located so that each process area is accessible from all
sides.
Rail Road Facilities
These are necessary for shipping receiving raw material.
Plant Buildings
The Following buildings are recommended:
100
1)
2)
3)
4)
5)
Fire Protection
The hazards considered in the design of process plant ma be grouped into three major categories:
1. Flammable, Explosive and Mechanical.
2. The safety records of the plant depend particularly upon the arrangement of the various units
and location of the equipments within the units.
Plant Security
The plant must be surrounded by fence topped with barbed wires to prevent entrance of
unauthorized visitors. Guard house are located at each gate. It is preferable to locate office building
outside the plant security area.
101
CHAPTER 9
ORGANIZATIONAL STRUCTURE
102
Principles of Organizations
There are sixteen principles of Organization
Unity of objectives
Specialization
Chain of command
Authority responsibility
Delegation
Unity of command
Span of control
Balance
Communication
Efficiency
Personal ability
Flexibility
Departmentalization
Informal groups and informal Organization indicate the influence of groups on individuals
behavior. Each group has its own leader, Social norms and exercised social pressure in an
organization.
103
Formal and informal groups can be found in any Organization. Management must learn to
understand and work through informal groups rather than trying to ignore or destroy them.
Informal group must be allowed to participate in planning, decision making and implantation
process.
But an Organization that works well in one type of environmental (environment being
defined as combination of markets, customers, producers and technology) may fail in
another. The failure may arise due to contingency factors such as:
Here task uncertainty is the degree to which the task necessary for the performance is
unpredictable. Technology and environment are the sources of unpredictability.
Organizational structure should manage conflict so that it helps the company. It is helpful to
understand the basic determinants of power in an organization and how conflicts are related.
Organization effectiveness includes the following criteria
Organizational efficiencies
Hierarchy
Board of directors
Establishes objectives
Operating Management
Accountable to CEO
104
One can suggest a general structure of good organization which will be applicable for
chemical engineering projects.
Ducker has suggested three ways to determine the organization for any Business:
Activity analyze can find out what work has to be performed, what work belongs
together and how each activity should be emphasized in the organization structure.
Decision analyze determines what kind of decision are needed, where in the
organization they should be made, and how each manager should be involve in them.
Relation analyze involves finding the contribution each manager must make to
program, with whom to work and contribution other managers must make to him.
Keeping the above factors in mind, we have divided the organization of our plant into the
following categories.
General administration
Production division
Maintenance division
Marketing division
Finance Sector
When it comes to the overall scope and duties of a finance department, there are many
functions to be fulfilled. For the most part, the duties include all things related to budgeting.
From appropriations to control of expenditure and auditing duties, the finance department of
any given company has an array of duties.
105
planning.
To meet and surpass the internal and external needs and financial reporting
The finance department generally focus on providing relevant information necessary for
upper level management. Such information is crucial in determining how a company make
better financial decisions.
Accountant
Finance Specialist
Finance Director
The finance director is the head of finance department. This individual will have the supreme
responsibility to ensure that all financial reports are accurate and up to date. The finance
106
director tasked with giving a financial forecast for the company and disclosing certain
financial information about the company to shareholders.
Accountant
The next position of importance in the department of finance is Accountant. The accountant
is responsible for handling the account payable and account receivable. Accountant also
process payroll. Other duties include putting together financial-related document such as
reports, auditing and closing but accounting books.
Finance Specialist
The finance specialist basically handles capital investments. This position may also require a
bit of analytical work such as reconciliations, maintaining the general ledger and keeping a
closed eye on the funds of the company.
107
employee with a title that includes human resources the function is performed when
employees are hired, training, supervised and hopefully retained.
Administrators, broadly speaking, engage in a common set of functions to meet the
organizations goal. These functions of the administrators were described by Henri Fayol
as the 5 elements of administration.
Planning- is deciding in advance what to do, how to do it, when to do it and who should do it.
It maps the path from where the organization is to where it wants to be. The panning function
involves establishing goals and arranging them in logical order. Administrators engage in
both short-range and long-range planning.
Staffing- means filling job positions with right people with right time. It involves determining
staffing needs, writing job descriptions, recruiting and screening people to fill the positions.
Directing (Commanding) - is leading people in a manner that achieve the goals of the
organization. This involves proper allocation of resources and providing an effective support
system. Directing requires exceptional interpersonal skills and ability to motivate people. One
of the crucial issue in directing is to find correct balance between emphasis on staff needs and
emphasis on economic production.
Controlling is a function that evaluate quality in all areas and detect potential or actual
deviations from the organizations plan. This ensures high-quality performance and
satisfactory results while maintaining an orderly and problem-free environment. Controlling
includes information management, measurements of performance and institution of corrective
actions.
108
Budgeting exempted from the list above, incorporates most of the administrative functions,
beginning with the implementation of a budget plan through the application of budget
controls.
Operations
Operational management is an area of management concerned with overseeing, designing and
redesigning business operations in the productions of goods and/or services. It involves the
responsibility of ensuring that business operations are efficient in terms of using as few
resources are needed and effective in terms of meeting customer requirements. It is concerned
with managing the process that converts inputs (in the forms of materials, labor and energy)
into outputs (in form of goods and/or services). The relationship of operations management to
senior management in commercial context can be compared to the relationship of line
officers the highest-level senior officer in military science. The highest-level officers shape
the strategy and revise it over time, while the line officers make tactical decisions in support
of carrying out the strategy.
According to U.S. department of education, operation management is the field concerned
with managing and directing the physical and/or technical function of a firm or organization
particularly those relating to development, production and manufacturing. Operational
management programs typically include instruction in principle of general management,
manufacturing and production system, plan management, equipment maintenance
management, production control, system analysis, productivity analysis and cost control and
109
Purchasing Department
The purchasing department will be responsible for providing the materials, components and
equipment required to keep the production process running smoothly. A vital aspect of this
role is ensuring stokes arrive on time and to the right quality.
Stores Department
The stores department will be responsible for stoking all the necessary tools, spares, raw
materials and equipment required to service the manufacturing process. Where sourcing is
unreliable, buffer stocks will need to be kept and the use of computerized stock control
system helps keep stocks at a minimal but necessary level for production to continue
unhindered.
Works Department
Works department will be concerned with manufacture of products. This will include the
maintenance of the production line and other necessary repairs. The works department may
also have responsibility for quality and quantity control and inspection.
110
Number required
Annual salary in
Qualification
Rupees lacs/annum
MD/ Chairman
40
Board of Directors
Designation
Number required
Annual salary in
Qualification
Rupees lacs/annum
CEO
30
COO
25
CFO
20
experience
15
Chemical Engineer
Operation
(for production)
200)
10years experience
Production Engineer
10
Chemical Engineer
with 4years
experience
111
Maintenance
10
Engineer
Mechanical Engineer
with 4years
experience
Instrumentation
10
Engineer
Instrumentation
Engineer with 4years
experience
Shift Engineer
Chemical Engineer
with 2years
experience
Shift Operator
12
3.5
Diploma in Chemical
profitable amongst the distribution channels and consists of spare part shops, dedicated
lubricant dealers, mechanic workshops and service centers.
The lubricants industry in India is dominated by national oil companies namely IOC, BPCL
and HPCL that account for almost half of market share. Rest of the market includes private
multinationals like Shell, Exxon Mobil, Total and numerous smaller and loyal players.
CORPORATE AND DIVISIONAL STRATEGIC PLANNING
Strategic planning involves framing corporate and divisional strategies. However, prior to that
the company has to identify its position in the market. Today firms face global competition. To
sustain itself in a global market a company has to adapt to international standards. The strategic
planning process may suffer, if there is an increased resistance to change within the
organization. To deal with such situation, Igor Ansoff suggested a 'managed-resistance or
accordion approach' in which a firm can employ coercive strategy when there is a pressing
need for change.
The entire lubes market in India can be classified into two key segments, automotive and
industrial. In India, the automotive lubes account for over 60% of the market. Diesel lubes
share is estimated at 70% of the same because it comprises commercial vehicles including
trucks. The current Indian market is estimated at Rs55bn in value and is growing at 5% pa.
This translates to a volume of 1.05 mn kl per annum.
Market
With the vehicular population of over 120million plus which only contributes to about 50%
of the total lube oil consumption in India, India is clearly one of the biggest market for lube
oil.
The lube oil demand in India in the year 2013 was 1257 with transport sector contributing
about 52% and the non transport sector contributing about 48%.
The Indian lube oil market is growing at a steady rate over the past years and India is the
third largest market in the world. The overall consumption of lube base oil in India over the
past seven years is(as published by ministry of petroleum):
Year
Consumption(figures in 10T3onnes)
2007
1057
113
2008
1022
2009
1192
2010
1210
2011
1199
2012
1209
2013
1257
Growth rate in 2013 was 4.03%. However the average growth rate for the past seven years
has been 2.7%.
The production of lubes in India over the last seven years according to the data from ministry
of petroleum was:
Year
2007
865
2008
908
2009
911
2010
859
2011
1016
2012
954
2013
915
Average % change in the production of lube oil in India over these 7 years is 0.8% and is
expected to grow at 1.5% in the next 5 years.
Waxes:
Production of waxes in the past years
Year
Consumption(figures in 103Tonnes)
2007
67
2008
72
2009
67
2010
67
114
2011
56
2012
59
2013
60
Consumption(figures in 103Tonnes)
2007
70
2008
67
2009
68
2010
69
2011
65
2012
56
2013
51
As can be seen from the data that the production has been below the requirement till now and
so we import lube oil at higher cost. So there is definitely scope for lube oil production.
Although the production and consumption of waxes have been in line for the period 20072013.
In the recent past, the Indian lubricant market has witnessed a phase of consolidation.
Multinationals with better technology, brand name and finances have the power to launch
themselves on their own in the market. However, with increasing number of competitors it is
not possible for every one to carve a nich in the market. This sector has witnessed
considerable amount of mergers and acquisitions. British Petroleums not so recent
acquisition of Castrol is one example. The Indian lubes market is a combative market place
and lubricant companies find themselves fighting a tough battle for survival. In the OE sector
lubricant manufacturing companies are also entering into collaborations with vehicle
manufactures. Maruti Udyog, Hyundai Motors, Hindustan Motors, TAFE, Toyota, and Skoda
have entered into collaboration with IOC and Castrol for some of their models.
115
116
Energy Supply
Meteorological data
Market study
Transportation facilities
Availability of land
Water supply
Waste disposal
Labour supply
Site characteristics
Community factors
For a preliminary survey, the first four factors should be considered. On the basis of raw
materials availability, market survey, energy supply, and climate, acceptable locations can be
usually reduced to one or two geographical regions.
In the second step, the effects of land availability, transportation facilities and water supply
are taken into account are taken into account are taken into account. This permits reduction of
the possible plant locationto few general target areas. These areas can be reduced further by
considering all the factors that have an influence on plant location.
As a third step, the availability of land at the selected site is examined and also a detailed
analysis of remaining site is made. On the basis of data such freight rates, labour conditions,
tax rates, price of land and general local conditions of various sites are inspected and appraised
influencing the final decision. The choice of final site is based on the detailed survey of various
geographical areas, and ultimately, on the advantages and disadvantages of available real
estate.
Keeping all these factors in mind Fajalpur was chosen as the plant selection site.
117
118
Transportation facilities:
Water, railroad, highways are common means of transportation used by majir industrial
concerns. The quality and quantity of products and raw materials determine the most suitable
type of transportation facilities. Careful attention should be given to local freight rates and
existing railroad lines. The proximity to railroad centres and the possibility of canal, river, lake
and ocean transport must be considered. Motor trucking facilities are widely used and can serve
as a useful supplement to rail and water facilities. If possible, plant site should access all three
type of transportation and, certainly, at least two types should be available. There is usually a
need for convenient air and rail transportation facilities between the plant and the company
headquarters, and effective transportation facilities for the plant personnel are necessary.
The transportation of material to and from the plant will be significant cost to us, hence it
should be located at places well connected by road, railways and waterways. West Bengal and
Gujarat emerges the states with both the raw material supply and connected with the world and
inside the country with a good mode of transport. Analysed market scenario strongly suggests
the Gujarat to be a state where the industry has to set up.
Transport:
Based on the above mentioned analysis of supply of the raw material and transportation
required for the disposal of end product Fajalpur, Gujarat is the ideal location of the plant site.
Various transport facilities that are available are:
Road connectivity:
Nearest port: It is Vadodara port, through which many Chemicals are imported as well as
exported so it can act as a major channel for getting raw materials and a finished product.
Nearest airport: the nearest airport is Vadodara airport, 21 kms away for this site location.
Water supply:
The process industries use large amount of water for cooling, washing, steam generation and
as a raw material in process. Hence, the plant should located where dependable supply of water
is available. A large river or lake is preferable, although a deep wells or artesian wells may be
satisfactory if the amount of water required is not too great. The level of the existing water
table can be checked by consulting the state geological survey and information on the
119
constancy of the water table and the year round capacity of local rivers or lakes should be
obtained. If the water supply shows seasonal fluctuation, it may be desirable to construct a
reservoir or drill several standby wells. The temperature, mineral content, slit or sand content,
bacteriological content, and cost for supply and purification must also be considered when
choosing the water supply.
In recent years, many restrictions have been placed on the method for disposing of waste
materials from the process industries. The site selected for a plant should have adequate
capacity and facility for correct waste disposal. In choosing a plant site, the permissible
tolerance levels for various methods of waste disposals should be considered carefully, and
attention should be given to potential requirements for additional waste treatment facilities.
Labour supply:
The type and supply of labour available in the vicinity of a proposed plant site must be
examined. Consideration should be given to prevailing pay scales, restrictions on number of
hours worked per week, competing industries that can cause dissatisfaction or high turnover
rates among the workers, and variations in skill and productivity of the workers. The site
selected for the plant setup has: Renowned academy and research institutions, like IIM, NIFT,
NID, CEPT, NIPER etc in Gujarat a large pool of skilled workforce. Industrial Training
Institutes ( ITIs ) in Jamnagar trains employees at shop-floor level.
Training facilities: A huge permanent training facility has been created for various technical
trades and functioning at existing facility in Jamnagar.
Taxation and legal restrictions:
State and local tax rates on property income, unemployment insurance and similar items vary
from one location to another. Similarly, local regulations on zoning, building codes, nuisance
aspects, and transportation facilities can have a major influence on the final choice of a plant
site. In fact, zoning difficulties and obtaining the many required permits can often be much
more important in terms of cost and time delays than many of the factors discussed in the
preceding section.
Site characteristics:
The characteristics of the land at a proposed plant site should be examined carefully. The
topography of land and the soil structure must be considered, since either or both may have a
120
pronounced effect on construction costs and living conditions. Future changes may make it
desirable or necessary to expand the plant facilities. Therefore , even though no immediate
expansion is planned, a new plant should be constructed at a location where additional space
is available.
Plant Layout
After selecting the site of the plant, plant layout is a crucial factor in the economics and safety
of process plant. Some of the ways in which plant layout contributes to the safety and loss
prevention (SLR) and which are included in the layout design are:
Contaminant of accidents
Limitation of exposure
Security
Future expansion
Modular construction
Our plant layout mainly includes the following buildings and construction as per ther process
requirements and support activities.
Process area
Gate location
R&D Wing
121
Sales Department
Stores
Workshops
Dispatch tanks
Boilers/Process Utilities
Flare
Mess/Canteens
The recovery Olefins from the FCC unit involves setting of a plant in the Sikka, Gujarat. The
location identified is strategic from the export potential point of view also from the economy
point of the view. The rail and road transport facilities helps in loadings, unloading and
dispatching the product/feed, etc. Also, a jetty close-by connects our plant to the rest of the
world which would enhance our export potential to a large extent.
Considering the location of our plant, the sea is on the astern side with a Jetty. There are 4 gates
in all 4 directions, which helps in the easy loading and unloading of feed and products.
Gate-1 : The main gate is on the eastern side from where the main influx of employees/ senior
officials/managers takes place. All the entrants are checked for security point of view. The
main parking is also very close to the main gate. The parking space provided is sufficient.
Gate-2: This is on the southern side which basically focuses on the loading & unloading, and
dispatching of the product/feed through rail transport which connects our plant to the rest of
the country. The main railway track is 20 kms from this gate. This 20 kms distance is traversed
using trucks.
Gate-3: This gate is very important as it connects our plant to the Jetty. This holds important
from the export potential point of view. Through this gate only, it becomes easier to bring the
sea water to desalinate it inside the desal unit.
122
Gate-4 : This gate is on the northern side, and very close to a large cover of green belt. The
mango orchards planted here provide a large potential as far as generating revenue is
concerned.
The main blocks and buildings of our complex are as follows :
Main Administrative Building(MAB)
This is the main administrative block of our complex which mainly frames the implements
policies, rules , regulations, agendas, future plans. All high-level meetings, seminars take place
here. This also houses the cabins and offices of the top- level officials and officers.
Design & Technical Office(DTO)
This is the main block which provides a wide range of technical services across the complex.
DTO ensure that the staff carrying out fieldwork are supplied with facilities, equipment and
ongoing back-up as required. This can only be achieved by the flexibility of highly qualified
technical staff and the co-operation with heads of sections.
R& D Wing :
All the research and development work is carried out in this block which has state-of-the-art
facilities and infrastructure. Any expansionary plan which is to be executed is first studies and
researched thoroughly into the forefront.
Sales Department :
This department deals with the efficient practices which can be employed in a complex. This
is focused on the practical application of sales techniques and the management of a firms sales
operations. It is an important business function as net sales through the sale of products and
services and resulting profit drive most commercial business. These are also typically the goals
and performance indicators of sales management. The role typically involves sales planning,
human resources, talent development, leadership and control of resources such organizational
assets .
Stores :
This is a place Where things/ equipments /instruments are stored. This is almost like a
warehouse where commodities and good are stored for sale and future use.
123
Workshops :
It is a building which provides both the area and tools(or machinery) that may be required for
the manufacture or repair of manufactured goods.
Captive Power Plant(CPP)
Captive power plants are associated with specific industrial complexes, and their output is
almost entirely consumed by that industrial plant. Another term that may sometimes be
synonymous is cogeneration
energy(e.g., electric power and steam), and where both are raw-materials for a related industrial
process.
Boilers/Process Utilities
These are very helpful in generation of steam to be used in the process plant. The Water from
the desal unit can be used as feed.
Flare
They are used to eliminate waste gas which is otherwise not feasible to use or transport. They
also act as safety systems for non-waste gas and is released via pressure relief valve when
needed to ease the strain on equipment. They protect gas processing equipment from being
over pressured. Also in case of emergency situation, the flare system helps burn out the total
reserve gas. The location is such that the pipelines traverse the complete distance of the
complex before finally collecting and burning in the flare.
Fire & Safety
This block houses state of the art facilities based on infra-red detectors for the detection of
fire/explosion in the crew compartment, and is capable of supressing fuel-fire explosions
resulting from an enemy hit or due to any malfunction of the engine, transmission or electrical
short circuit. The system is capable of detection and suppression of fires in the crew
compartment within 200 milliseconds and in the engine compartment with 15s.
Effluent Treatment Plant(ETP)
Industrial wastewater treatment covers the mechanisms and processes used to treat waters that
have been contaminated in some way by anthropogenic industrial or commercial activities prior
124
to its release into the environment or its re-use. Most industries produce some wet waste
although recent trends in the developed world have been to minimize such production or
recycle such waste within the production process. However, many industries remain dependent
on processes that produce wastewaters.
Future Expansion Area
The product formed is mainly olefins which can be further processed to form a variety of
products like Polypropylene. To produce them the plant would be required to be expanded.
There is sufficient space for this activity to be carried out in the ensuring future.
Mess / Canteens :
The messes and canteens for fulfilling the requirement of food for the officials and employees
of the complex is provided through these messes. It is ensured that the food quality is hygienic
and proper.
125
126
CHAPTER 12
ECONOMIC EVALUATION &
PROFITABILITY OF THE
PROJECT
127
Purchased equipment costs are helpful during a project's early development and budgeting.
The actual cost of a piece of equipment depends upon many factors.
128
2. All the equipment are scaled to the present worth using the Chemical Engineering Plant
Cost Index published regularly in the Chemical Engineering Magazine using the
formula = (
Year
Index
For 2007
390.4
For 2015
579.7
Table 2
The cost of all the equipment required for the process is tabulated below
Area-1
Process Equipment
US$ (1999)
US$ (2015)
INR
Extractor EX-101
325882
482305.36 29999393
Flash F-101
211513
313039.24 19471041
Stripper S-101
339428
502353.44 31246384
Evaporator EV-101
56770
84019.6
5226019
2361
3494.28
217344.2
2361
3494.28
217344.2
2361
3494.28
217344.2
Pump P-101
7125
10545
655899
Pump P-102
7125
10545
655899
Area 2
Process Equipment
US$ (1999)
US$ (2015)
INR
Extractor Ex-201
176623
261402.04
16259207
Flash F-201
232628
344289.44
21414803
Flash F-202
217507
321910.36
20022824
Stripper S-201
303214
448756.72
27912668
129
Stripper S-202
263259
389623.32
24234571
Stripper S-203
302215
447278.2
27820704
2361
3494.28
217344.2
2361
3494.28
217344.2
2361
3494.28
217344.2
2361
3494.28
217344.2
2361
3494.28
217344.2
Pump P-201
7125
10545
655899
Pump P-202
7125
10545
655899
Pump P-203
7125
10545
655899
Area -3
Process Equipment
US$ (1999)
US$ (2015)
INR
15162
22439.76
1395753
15162
22439.76
1395753
15162
22439.76
1395753
15162
22439.76
1395753
2361
3494.28
3912195.6
Flash F-301
232628
344289.44
21414803
Stripper S-301
263259
389623.32
24234571
35000
51800
3221960
Process Equipment
US$ (1999)
US$ (2015)
INR
Reactor RX-401
22215
32878.2
2045024
Furnace H-401
7933
11740.84
730280.2
Flash F-401
217507
321910.36
20022824
2361
3494.28
217344.2
301
Heat Exchanger HX302
Heat Exchanger HX303
Heat Exchanger HX304
Double pipe HX-305
(18)
Area 4
130
i)
0-100 C
ii)
Piping
iii)
iv)
1. Process buildings
2. Auxiliary buildings
3. Maintenance shops
4. Building Services
Plumbing work (labour charges)
Air Handling Units (HVAC)
Paint Material
Labour charges for painting
v)
vi)
vii)
Non-Process Equipment
132
viii)
S. No.
Description
Grand Total in `
Purchased Equipment
Piping
Yard Improvements
Service Facilities
Land
307Cr
11.80 Cr
15.02 Cr
12.08 Cr
8.02 Cr
20.56 Cr
3.63 Cr
10.59 Cr
25.54 Cr
133
414.24 Cr
Item
Cost (in ` )
9.68 Cr
10.29 Cr
Construction expenses
5.75 Cr
Contracter's Fee
11.19 Cr
Contingency
1.21 Cr
Legal Expenses
Total Indirect Costs
38.13 Cr
Table 4
` 38.13 Cr
` 137.94 Cr
`20.69 Cr
` 511.19 Cr
Another equally important part is the estimation of costs for operating the plant and selling
the products. These costs can be grouped under the general heading of Total Product Cost
A tabular form is very useful for estimating total product cost and constitutes a valuable
checklist to preclude omissions.
Figure below provides a suggested checklist which is typical of the costs involved in
chemical processing operations.
134
S. No.
Description
Vacuum Residue
Catalyst
Furfural
Propane
Total Annual (` )
3420000000
342Cr
1044552
10.44lacs
4619705
46.19 lacs
192459
1.92 lacs
342.58 Cr
Description
Units/year
Electricity(for other
2
purposes) (kWh)
Cost / unit (` )
864691200
30
2594.07 Cr
1248134.4
5.75
71.76 Cr
57600000
1.3
7.488Cr
2673.32 Cr
Table 7
Step 3.c.Total Annual Direct Production Cost
S. No.
Description
Raw Materials
Operating Labor
Operating Supervision
342.58Cr
5.21 Cr
2.89 Cr
2673.32 Cr
136
50.96 Cr
Operating Supplies
Laboratory Charges
46.32 Cr
6.94 Cr
Table 8
S. No.
Types
Depreciation
Taxes
Insurance
Also, Plant Overhead cost is taken to be 30% of the cost of operating labour, supervision and
maintenance.
Thus, Plant Overhead Cost = ` 17.72 Cr
S. No.
Description
Fixed Charges
137
S. No.
Description
Administrative Expenses
23.16 Cr
24.2 Cr
Total manufacturing cost (M)= Direct Production cost + Fixed Charges+ Plant Overhead
Cost
= ` 746.49 Cr
Total Product cost=M+G = ` 770.69 Cr
1. Based on Fixed Known Selling Price of the Finished Product at 100% Capacity
2.
Based on Selling Price of the Finished Product API calculated at 100% Capacity.
Based on Fixed Known Selling Price of the Finished Product at 100% Capacity
= value
= (1 %)
= (+) ,
100
138
$750/MT
Slack wax
$150/MT
970.32 Cr
199.63 Cr
20
159.704Cr
Net Profit
3.52
Payback Period
27.96
Rate of Return
%
`
Years
%
Table 12
BreakEven Curve
Break-Even Analysis:
For break-even production, Annual Sales equals the Annual Cost of Production.
SP Selling Price per kg
DPC Direct Production Cost per kg
Annual Sales = Annual Variable Cost + Annual Fixed Cost
Therefore,
=%
Hence, the plant should run at a minimum of % of its maximum capacity to successfully
operate for profit to achieve break-even.
139
Yr
Sales/Yr
Producti
Average
Depreciat
Cash
Cumulati
on
Profit/Y
ion
Flow
ve
Cost/Yr
9703200
7706900
1996300
000
000
000
CCF
Cash TCI
Flow
24500000
2001200
20012000
000
00
3877485
000
9703200
7706900
1996300
000
000
000
24500000
2001200
40024000
000
00
1876285
000
9703200
7706900
1996300
000
000
000
9703200
7706900
1996300
000
000
000
9703200
7706900
1996300
000
000
000
9703200
7706900
1996300
000
000
000
9703200
7706900
1996300
000
000
000
24500000
24500000
24500000
24500000
24500000
140
2001200
60036000
1249150
000
00
00
2001200
80048000
2126115
000
00
000
2001200
10006000
4127315
000
000
000
2001200
12007200
6128515
000
000
000
2001200
14008400
8129715
000
000
000
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