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TECHNO-ECONOMIC FEASIBILITY REPORT OF PRODUCTION OF

190,000 TPA LUBE OIL BASE STOCK AND WAXES VDU RESIDUE

Siddharth Saraswat

Introduction to the format of the report


The complete project report consists of fourteen chapters, each chapter focusing on a specific
dimension of the report.
i.

Chapter 1 contains the summary of the project and the problem statement.

ii.

Chapter 2 is dedicated to the process selection and raw material specifications.

iii.

Chapter 3 is fully devoted to material and energy flow information.

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.

Chapter 5 deals with material handling and storage facilities

vi.

Chapter 6 consists of process instrumentation and control of the plant.

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.

Chapter 9 encompasses the organizational structure and manpower requirements of


the project.

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.

Chapter 13 constitutes of a reference list of books, journals, standard codes and


encyclopaedia which have been used for the project work.

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

Lube oil base stock

2.

Capacity

190000 TPA

3.

Location

In or around Durgapur, West Bengal

4.

Raw Materials

Vacuum residue

5.

Important chemical processes involved

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.

Product yield and quality is affected by


* Operating temperature
* solvent composition
solvent-to-oil ratio
* Pressure in the Extraction Column (to a lesser extent)

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.

FURFURAL EXTRACTION UNIT


The Furfural Extraction Unit (FEU) is designed to process the deasphalted oil to improve
viscosity index (VI) of lube oil.

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
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decrease dissolving power whereas addition of benzene or Toluene to furfural/phenol/ketones


increases the dissolving power.

BEST SOLVENT PROPERTIES

(i) High solvent power.


(ii) Low light-heavy selectivity and high group selectivity.
(iii) Boiling point much different from that of feed stocks processed.
(iv) Low melting point.
(v) Density of 1.0 to 1.2 gm/c.c
(vi) Low surface tension.
(vii) High thermal/chemical stability.
(viii) Low toxicity.
(ix) Low flamability.
(x) Low corrosivity.
(xi) Low latent heat & specific heat.
(xii) Low viscosity at working temperatures.
(xiii) High bio-degradability.

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.

Top and bottom temperature:


Higher temperautres results in raffinate of higher quality and lower yield and conversely
lower temperatures result in lower quality and higher yield of raffinate. Top is maintained at
10C less than CST. Bottom is maintained depending on pour point of feed stock and melting
point of solvent.

Water in furfural
Water contamination in furfural decreases the solvent power and has the same effect as
reduced solvent feed ratio.
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High temperautre operation with furfural


Operation of furfural at or above 232C promotes decomposition of furfural and results in
polymer/coke deposition in furnaces/equipment. Operation at high temperature as above in
the presence of 02 further aggravates the situation of furfural decomposition. The acidity
caused by degraded products of furfural is neutralised by injection of a mild alkaline solution.
Excess alkalinity also promotes cracking and must be carefully avoided.

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.
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Anti Wax Solvent


Since the oil solvent (Toluene) has some dissolving power for waxes also, another solvent is
required which has the lowest wax solubility. This is called anti-wax solvent or wax rejector
(e.g. MEK,MIBK, Acetone). In our case this anit wax solvent Is MEK. MEK has poor oil
miscibility characteristics too. Toluene MEK blend shall be such to have little solvent effect
on wax and highest solvent effect on oil.

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:

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(i) Nature of the feed stock


Depending on the origin of the crude, the distillate cut is likely to vary in respect of its
hycrocarbon composition.

(ii) Hydrocarbon composition:


Different types of hydrocarbons form different types of wax crystals. Normal paraffins form
plate type crystals, isoparaffin s & napthenes form needle and microcrystalline crystals. Plate
& needle types are easily filterable, whereas microcrystalline crystals pose some filtration
problems since it plugs the pores of the filter cloth.

(iii) Boiling range of the feed stock


As the boiling range of the distillate cut increases its viscosity increases and the hycrocarbon
composition changes progressively from normal paraffin to isoparaffin to napthene type. Also
the increased viscosity of the crystallisation media and to reduce the pressure losses in
chillers.

(iv) Rate of cooling/chilling


This is one of the critical parameters that control crystallisation and dictates filtration. Low
chilling rate promote large & uniform wax crystals resulting in improved filtration rate that in
return gives better yield of DWO.
Faster/shock chilling forms fine crystals that cause plugging of the filter cloth and also carry
more oil into crystal lattices. The chilling rate with different dilution modes/rates for different
feed stocks are normally decided based on data from the run of a pilot plant.

(v) Presence of Impurities/contaminatlon


This will effect the controlled process of nucleation and result in large range of crystal size
distribution which is not favourable for good filtration.

(vi) Rate of agitation


This keeps the crystals and solution in constant motion thus ensuring the steady growth of
crystals w.r.t. time in the crystallisation media whose concentration is also maintained as
uniform as possible due to the constant mixing. Absence of agitation would lead to deposition
of wax crystals (having low heat transfer coefficient) on the internal surface and affect the
performance & unit throughput.
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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.

GOOD QUALITIES OF DEWAXING SOLVENT BLEND

(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.
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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.

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2a) Importance of the problem


The vacuum residua contain a considerable quantity of high viscosity components useful in
the manufacture of lubricationg oils and asphaltenes and resins which contribute an
undesirable dark color to the lube base stocks and form deposits of carbonaceous materials on
heating.
The global base oil market is going through a period of great changes and challenges. First,
the rationalization of Group I production is not anymore a possible scenario, but has become
reality. Secondly, the global capacity of Group II and Group III base oils has significantly
increased during the last years and new capacity has been announced to come on stream in
the coming years. In the unpredictability of global events, one thing appears quite likely and
that is that the future base oil market will be very different from the way it looks today. But
how is the base oil market changing? And why?
The changes in the base oil market can be understood more easily if we start from a basic
consideration. In the past the base oil industry was strictly linked to the lubricant industry,
and base oil supply has been driven, both volumetrically and technically, by the lubricant
demand. However, if we look at the trends in the base oil industry, it clearly appears that the
link between base oil supply and the lubricant industry has become weaker and is going to be
largely overruled in the coming years. This means that if we want to understand the changes
in the global base oil market, we have to look outside the lubricant industry and evaluate the
impact and the consequences of external factors.
The first, and probably most important, factor to be considered is the impact of mandatory
clean fuel investments. The growth in demand of diesel fuel, combined with the increasingly
stringent regulations on sulphur content will have a strong impact on the global refining
capacity, with significant new investments on new refinery hydrocracking capacity. The
implications of the mandatory clean fuel investments on the base oil market are numerous,
but probably the most relevant way in which clean fuel related investments are impacting and
altering the global base oil landscape is linked to the synergy between hydrocracking
investments and Group II and Group III base oil production. In fact, most of the new
hydrocrackers produce potential feedstock for Group II and Group III base oil production and
a significant portion of new Group II and III capacity is indeed coat-tailed on clean fuel
investments.

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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.
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2bi/ii) Available processes for the production of the product


Techno-economic appraisal of alternative schemes

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.

Vacuum Distilation Process


Vacuum distillation process separates the atmospheric residue mixture into a series of
fractions representing different molecular weight ranges or viscosity ranges from 90-100
neutral to the 500 neutrals.(the neutral number is the SUS viscosity at 100) The residue
contains the heavier base oils such as the bright stocks. (150 to 250 SUS at 210) The latter
is separated from asphaltenes and resins prior to introduction into the extraction process.

Solvent Extraction
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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.

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2B iii) Selection of technologies/schemes:


Choice of solvent
The essential characteristics of a good solvent are its selectivity and its solvent power, or
solvent capacity.
Selectivity corresponds to the solvents affinity for one substance rather than another, so that
it will be able to extract this compound preferentially from the hydrocarbon mixture making
up the feed of the extraction unit.
The solvent power, or capacity, is expressed by the amount of feed oil that can be dissolved
per unit of volume or weight of solvent.
A good extraction solvent for aromatics must therefore have high selectivity for aromatics
molecules and good solvent power in order to perform the extraction with a small volume of
solvent.
Besides these two characteristics, the following points also enter into consideration in the
choice of the solvent:

High extraction temperature for good mass transfer;

Easy recovery, if possible simply by flash;

Low vapour pressure to make high pressure equipments unnecessary;

High specific gravity for rapid separation of the oil and solvent phases;

No emulsion for rapid separation of the oil and solvent phases;

Stability, i.e., no thermal or chemical degradation;

Adaptability to a wide range of feeds;

Availability at a reasonable cost;

Non-corrosive toward conventional construction metals;

Non-toxic for the environment and on-the-job safety.

The most often used solvents are:

Furfural

Phenol

N-methyl-2-pyrrolidone, or NMP.

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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.

Dewaxing Solvent Selection


As solvent is added to the waxy raffinate the oil is diluted and the
viscosity of the oil solvent mixture decreases allowing filtration to take place
more easily. The polarity of the oil-solvent mixture increases, decreasing the
solubility of the wax and promoting the formation of more compact wax
crystals. But as solvent is added the resulting filtrate becomes more dilute,
loading up filtrate pumps and solvent recovery facilities.
Properties to Consider in Selecting a Dewaxing Solvent:
1. Solubility
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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.

Typical Dewaxing Solvent Properties


Solvent

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

MEK/MIBK refrigeration requirements are lower than MEK/Toluene


because the Pour-Filter spread is smaller due to the lower wax solubility. The
Pour-Filter spread is the difference between the Dewaxed Oil pour point and
the filtration temperature required to meet the Dewaxed Oil pour point
specification. Wax has a higher solubility in Toluene than MIBK and

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.

2B iv) Raw Materials


Vacuum Residue
Composition: cut data
Temperature range

% 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

API gravity = 14.841


Specific gravity = .966
Propane
1. Formula: C3H8
2. Boiling point: -42 C
3. Density: 493.00 kg/m

24

4. Molar mass: 44.1 g/mol


5. IUPAC ID: Propane
6. Melting point: -188 C
7. Classification: Alkane

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.

1. Density: 866.90 kg/m


2. Boiling point: 110.6 C
3. Molar mass: 92.14 g/mol

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.

Testing Procedures for raw materials


Vacuum residue testing procedure includes ASTM-189.
Summary of test method
A weighed quantity of sample is placed in a crucible and subjected to destructive distillation.
The residue undergoes cracking and coking reactions during a fixed period of severe heating.
At the end of the specified heating period, the test crucible containing the carbonaceous residue
is cooled in a desiccator and weighed. The residue remaining is calculated as a percentage of
the original sample, and reported as Conradson carbon residue.

27

CHAPTER 3
MATERIAL AND ENERGY
BALANCE

28

3a) Material Balance


Deasphalting Unit
Feed to deasphalting unit : Vacuum residue
Flow rate of vacuum residue = 1710000 TPA
Solvent (i.e Propane) flow rate = 10260000 TPA
Product Deasphalted oil produced = 487350 TPA
Propane present in the deasphalted oil stream = 8878461.473 TPA
Fraction of oil in top stream = .052035
Fraction of propane in top stream = .947965
Asphalts obtained as bottoms = 1381538.527 TPA
Propane present in the bottom stream = 1068104.713 TPA

Material balance equation:


Mass In = mass out
Mass In = propane as solvent + vacuum residue
= 10260000 + 1710000 TPA
= 11970000 TPA
Mass out = 487350 + 8878461.473+1381538.527+1068104.713 TPA
= 11970000 TPA
So, mass in = mass out

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

Mass in = flash inlet stream


Mass out = top stream + bottom stream
= 808896.8914 + 8556914.582
= 9365811.473 TPA
Mass in = mass out
EVAPORATOR:
Feed to evaporator = 101112.3 kg/hr
Propane vapors removed = 32154.84 kg/hr
Bottoms (i.e) concentrated stream of oil = 68957.46
Total mass out = top +bottoms stream
= 32154.84 + 68957.46
= 101112.3 kg/hr
Stripper column of deasphalting unit:
Pressure = 1.7 kg/cm2
Temperature of feed = 1250C
Temperature of steam = 1500C
Temperature pf top tray = 119.9 0C
Temperature of bottom tray = 119.7 0C
Feed to the flash column = 68957.46 kg/hr
Steam used for stripping = 427.5 kg/hr
Vapor generated from top = 8430.87 kg/hr
Vapor composition:
Water = .1096 wt fraction
Propane = .8904 wt fraction
Bottoms flow rate = 60954.4415 kg/hr
Water wt. fraction = .04%

30

Oil wt. fraction = .9996


Mass in = 68957.46 + 427.5 kg/hr
= 69384.96 kg/hr
Mass out = 8430.87 +60954.4415
= 69385.3115
Mass in mass out ( error due to rounding off of values)

Final output : deasphalted oil with very little amount of moisture present = 60954.4415 kg/hr
= 487635.532 TPA

Furfural Extraction material balance


Feed entering the furfural extractor unit = Deasphalted oils
Feed entering the furfural extractor = 64162.57 kg/hr
Solvent Flow rate = 76995.084 kg/hr
Aromatics fraction in feed (w/w%) = 0.558
Raffinate Flow rate = 43502.2 kg/hr
= 348017.6 TPA
Furfural in raffinate = 15399 kg/ hr
Aromatics fraction in raffinate (w/w%) = 0.0837
Extract Flow rate = 20660.37 kg/hr
Furfural in extract = 61596.0672 kg/hr
Aromatics fraction in extract (w/w%) = 0.9163

Raffinate Flash column


flash inlet stream flow rate = 43502.2 kg/hr
= 348017.6 TPA
31

Top (furfural vapor) stream flow rate = 5220.264 kg/hr


Bottom flow rate

= 38281.93 kg/hr

Mass in = flash inlet stream


Mass out = top stream + bottom stream
= 5220.264+38281.93
=348017.6 TPA
Mass in = mass out.

Raffinate Stripping column


Pressure = 200 mmHg
Temperature of feed = 1700C
Temperature of steam = 1500C
Temperature pf top tray = 160 0C
Temperature of bottom tray = 160 0C
Feed to the column = 38281.93 kg/hr
Steam used for stripping = 48.02 kg/hr
Vapor generated from top = 1914.096 kg/hr
Vapor composition:
Water = .03 wt fraction
Propane = .97 wt fraction
Bottoms flow rate = 36367.8 kg/hr

32

Dewaxing unit material balance :


Feed entering the dewaxing unit = 34059.6375 kg/hr
Mixer:
Mixture of Toluene and ketone at ambient temperature in 1:1 ratio are mixed with the waxy oil feed
stream in a mixer.
Solvent to feed ratio = 2.2
Feed stream = 34059.6375 kg/hr
Toluene flow rate = MEK flow rate = 37465.60125 kg/hr
Flowrate of outlet stream = 108990.84 kg/hr
Mass in = mass out = 108990.84 kg/hr
1st Steam heat exchanger of dewaxing circuit:
Inlet = 108990.84 kg/hr
Outlet = 108990.84 kg/hr
2nd heat exchanger where heat is exchanged with cooling water
Inlet = outlet = 108990.84 kg/hr
Flowrate of cooling water = 164215.4325 kg/hr
Chiller section of dewaxing circuit:
Now the stream is divided in 6 exchangers uniformly and the streams flow through a network of
double pipe heat exchangers where it first exchanges heat with the filtrate and liquid ammonia.
Flow rate of each stream = 108990.84/6
=18165.14 kg/hr of waxy oil
Flow rate of filtrate used for cooling = 17586.02 kg/hr
Mass in = mass out= 18165.14 kg/hr
No further mixing is done in heat exchangers ahead and flow rate of the stream is maintained at
17300.07 till the stream enters rotary drum filter.
ROTARY DRUM FILTER
Stream entering the rotary drum = 18165.14 kg/hr
Toluene and MEK mixture is added at the rate of = 798 kg/hr
Filter cake (i.e wax with oil and solvent entrained in it ) obtained = 1376.265 kg/hr
Flow rate of filtrate recovered = 17586.02 kg/hr
33

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)

Flash column of dewaxing unit:


Feed is filtrate recovered from rotary drum vacuum filter.
Feed flow rate =6 x 16748.595 x 1.05 kg/hr
= 105516.1485 kg/hr
Vapour generated = 70182.5552
Bottoms obtained =35333.58 kg/hr
Stripper column :
feed is bottoms from flash drum of dewaxing circuit
feed flow rate = 35333.58 kg/hr
top flow rate = 7334.28234 kg/hr
top composition :
MEK = .1589
Toluene = .1393
Water = .7018
bottom flow rate =27999.29 kg/hr
bottoms composition:
.0024 mole fraction toluene
.0001 mole fraction MEK
.0103 water is present
34

Steam is used for stripping:


Steam flow rate = 1496.25 kg/hr
Top stream temperature : 118.6 0

Bottom stream temperature = 114 0C


Total mass in = 1496.25 + 35333.58
= 36829.83 kg/hr
Total mass out = 7334.28234+ 27999.29
= 36829.83 kg/hr
Mass in = mass out
Bottoms which is dewaxed oil is the feed to the hydrofinishing unit
Flow rate = 27999.29 kg/hr

35

CHAPTER 4
PROCESS DESIGN

36

4) List and no. of equipments


EQUIPMENT NO.

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

4a) PROCESS DESIGN


Extractor C01
Taking Vacuum Residue as dispersed phase and Propane as continuous phase
Flow Rate of dispersed Phase

4114.16 ft3/h

Flow Rate of continuos Phase

49370 ft3/h

Density of continuous phase =

439.855 kg/m3

27.45575 lb/ft3

965.917 kg/m3

60.29254 lb/ft3

Density of dispersed phase

Viscosity of continuous phase

Interfacial tension

0.0716 cp

0.173208 lbm/ft.h

34 dyne/cm

971448 lb/ft

Using ceramic Intallox saddles packing 50mm


Superficial area of packing,a =

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

Considering 50% flooding Vd+Vc lie in the packed towers


Cross-sectional Area

D/Vc

33.59924 ft2

6.542292 ft

1.994 m

Height of the column


Droplet Velocity

= ()
d>c, Cp= 0.8
=

8.33 mm

Superficial Velocity
=

39

122.53 ft/h

Mean column to surface diameter of droplets at zero flow rates

= 0.92 ()
=

2.3 mm

Pratt empirical relationship for kc and kd


= 0.60.5
= 1.150.5
Kc

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
= (

W = lb. Mols asphalt extracted


S = Cross-sectional area of tower

=
=

10815.6 lb. mol

33.575 ft2

cm = log mean driving force, lb.mol.units

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

Flash Tank F01


Feed flow rate = 1232343.6 kg/hr
Liquid flow rate = 106434 kg/hr
Vapor generated = 1125910 kg/hr
Properties and equilibrium data was generated from aspen plus.
Vapour density = 126 kg/m3
Vapour phase is dense propane in gaseous phase just above its critical temperature and
pressure\.
Flv = ((liquid flow rate)/(vapour flow rate))( )
= 106434 1125910 451/126

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

Nozzle size = 61cm


Height above feed line = 36 + .305
= .9144 + .305
= 1.2194 m
Heignt above feed line = 12 + .305
= .6098 m
Height of liquid pool

= V/(base area)

Taking 8 min residence time


Height of liquid pool

= 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.

Stripper column S01


Bottoms mass fraction
Temprature =119.70c
Flow rate = 64162.57 kg/hr
Water = .0004
Density of liquid at bottom = 883.6 kg/m3
Density of vapor(steam) at bottom = .9951 kg/m3
43

Low pressure superheated steam at 1500c use d for stripping


Vapor leaving the column = 8874.6 kg/hr
Water = .1096
Propane = .8904
Above values in mole fraction
Temprature = 119.90c
Density = 2.041 kg/m3
Number of trays as found from aspen hysys simulation in order to minimize solvent in the
bottoms with minimum utility composition = 10
For any no of trays less than 10 any feed inlet temperature 1250C the simulation does not
converge
liquid feed entering the system = 72586.8 kg/hr
top section;

Flv top

2.041

= (64125/8874.6049)(887.5)
= .346

Flv bottom = (64162/450)(.9950/883.6.5)^(.5)


=4.78
taking plate spacing = .6m
K1(top)

= .068

K1(bottom) = .01
44

flooding velocity top = k((pl pv)/pv)^.5 m/s


= 1.4161 m/s
flooding velocity bottom = .297 m/s
assuming 85% of flooding velocity
for base uv = 1.2036 m/s
for top uv = .25245 m/s
Area of column
Top
volumetric flow rate = mass flow rate/ density
= 1.207 m3/s
net area = 1.207/1.2036
= 1.002 m2
Bottom
volumetric flow rate = .1256 m3/s
net area = .497 m2
take downcomer area as 12% of total
so now base area = .497/.88 =.56477 m2
top area = 1/.88 = 1.136m2
Diameter of column:
top diameter = (1.136x4/3.14)^(.5)
= 1.20 m
bottom diameter as we can see from area will be less than top diameter so we choose top dia
as column diameter.

45

Provisional Plate design


plate spacing

= .6m

column diameter = 1.20 m


column area

= 1.136 m2

downcomer area = .13632 m2


net area = Ac - Ad
= .99968 m2
Active area

= .86336 m2

hole area = 6% Aa = Ah (Taking for first trial)


= .0502 m2
weir length = lw

= .62Dc

(From Figure 11.31, get lw/DC with help of Ad/Ac)


lw = .62Dc = .62x1.20
= .744 m
assuming weir height = 50 mm
hole diameter = 5mm
plate thickness = 5mm
Check for weeping
maximum liquid flow rate Lw

64125kg/hr
=

17.81 kg/s

min liquid flow rate, 70% turn down = 12.468 kg/s


maximum depth of the crest of liq over weir
how = (Lw/( lw * l ))2/3
46

= 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.

Plate pressure drop


Maximum vapour velocity = 1.2078/.086336 = 24.059 m/s
47

Percent perforated area = 0.06 (Ah/Aa, approximately)


Plate thickness/hole diameter = 1
(From graph (11.34) in Richardson & Coulson, vol-6)
Orifice coefficient, Co = 0.81
Dry plate drop (hd):-

hd = 51 * (24.059/0.81)2 * (2.041/882.4) mm liquid


= 122.88 mm liquid
Residual head (hr):hr = 12.5 * 103/ l
= 12.5 *1000/882.4
= 14.16mm liquid
Total pressure drop ht = hd + (hw + how) + hr
= 122.88 +121 +14.16
= 258.04 liquid

Downcomer liquid back-up

Downcomer pressure loss


Take hap = hw 5 = 45mm
Area under apron = .86336* 45 * 10-3 = 0.03885m2
This is less than Ad
hdc = 166 * {17.8125/ (882.4*0.03885)}2 = 44.81 mm
Back-up in downcomer = (121 + 44.81 +258.04) = 423.85 mm = 0.424m
48

0.424< (plate spacing + weir height)/2


Acceptable
Checking residence time
tr = (0.424 * 0.13632 * 882.4)/17.81
= 2.87 s

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

Heat Exchanger E-102

49

DAO mix with steam


Liquid tube side
Temperature goes from 870-1020 C
Flow rate= 1232343 kg/h
Latent heat of steam =2114 kj/kg
Steam in shell side
=

Flow rate

(1232343)(10287)(5.07x1.033)
2114

Flow rate steam= 45795.8 kg/hr= 12.72 kg/sec.


Assuming U= 800 W/m2 oC
Tln =

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

Hc= (0.95)x(0.686)[ 0.00020x0.0016 ]x1/3(25)^-1/6


=1128 W/m2 oC
close enough to 1500 W/m2 oC so no correction is required.
Tube side coefficient
Tube area= = 3.14(0.025)2 /4
=0.7688 m2
liq=350 kg/m3
tube velocity=1232343.6/(3600x350x0.6538x4)
51

=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

= 2700 + 5000 + 25 5000 + 25 18643 +

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

Tubes in centre row =37


=45795.8/(3600x4.88x1004)
=1.296x10-3 kg/s
(9302.51)x9.81

hc= (0.95)x(0.686)[ 0.00020x0.0013 ]x1/3(25)^-1/6


=1247 W/m2 oC
close enough to 1500 W/m2 oC so no correction is required.
Tube side coefficient:Tube area= = 3.14(0.025)2 /4x1004/2
=0..24625 m2
liq=350 kg/m3
tube velocity=1232343.6/(3600x350x0.24629x2)
=1.988565 m/sec.
acceptable
hi=4200(1.35+ 0.02t)Ui0.8/di0.2 =0.023xRe0.8xPr0.33
Re=

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

= 1247 + 5000 + 25 5000 + 25 4074 +

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

Mass flow rate= 14.91 kg/m2

Negligible pressure drop


de=29.69 mm
Tube side
=1.39x10-2cp
=6.04x10-3cp
Re= 31,772
Re= 288750
Jf=.04
Jf=0.0022
vs= 5.94 m/s
Pt=8190.20 N/m2=8.19 kPa
acceptable

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

Viscosity of continuous phase= 1.032 cp


= 2.4965 lbm/ft. h
Interfacial tension

= 42.2 dyne/cm
= 1205738 lb/ft

Using Intallox saddles packing 50mm


Superficial area of packing,a = 42.8 ft2/ft3
Void Fraction

= 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

VC/VD= C/D = 1.2


Vd

= 231.735 ft/hr

Vc

=278.082 ft/hr

Considering 50% flooding Vd+Vc lie in the packed towers


Cross-sectional Area = D/Vc
= 6.9763 ft2
D

= 2.9811 ft
= 0.9086 m

Height of the column


Droplet Velocity

= ()
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
= (

W = lb. Mols asphalt extracted


S = Cross-sectional area of tower

= 1118 lb. mol


= 33.575 ft2

cm = log mean driving force, lb.mol.units


= 0.24625
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

clean overall coefficient


Uc = hiho/( hi+ho)
= 1283.17
taking fouling factor for waxy oil feed to be 2000
U dirty = 781.6
Q =UAdT
A = 282768/(781*18.95)
= 19.106 m2
for a 3inch pipe outer surface area per foot = .917ft2/ft
= .278 m
length of pipe required = 19.106/.278 m
60

= 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

Rotary drum filter D01


Volume of filtrate ,V = 4.082 m3
Mass of solids per volume of filtrate ,Cs = 42.9281 kg/m3
Viscocity of filtrate , = 0.003916 kg/ms
fraction of the rotational time , f = 1/3
Time for the drum to complete one full cycle, tc = 785 s
Cake resistance , = 1.6 *1010 m/kg
Pressure drop , = 147.099 KPa
Porosity, = 0.6
For area of rotary drum,
V=

1
3

(2

() 1

)2 2 2

Area = 91.06 m2
Therefore, diameter of rotary drum = 4.83 m

Shell and Tube heat exchanger E14


Waxy oil solvent mix cooled with cooling water
Flow rate of oil = 109264 kg/hr
Heated from 45 to 95 0c
K= .126261 w/m2-k
Density = 889.34 kg/m3
Cp= 2.018 kj/kg

62

Viscosity = .7*10^(-3) kg/m-s


Water being heated from 25 to 40 degree celsius
Water flow rate as calculated by energy balance = 164627 kg/hr
Lmtd = ((95-40)-(45-25))/ln((95-40)/(45-25))
= 43.16
R =(95-45)/(40-25)
= 3.33
S = (40-25)/(95-25)
= .214
ft = .95
Lmtd = 41
Waxy oil solvent mixture flows inside the tubes
Initially assuming u = 350w/m2
Area = q/udt
= 200.07 m2
Tube size:
Outer diameter : 19.05 mm
Length 5m
Inner diameter = 14.83inch
Surface area = .29936 m2
No of tubes = 668.33
= 672 tubes
Assuming 1 shell 4 tube passes
63

Tubes per pass = 168


Area of crosss-section of one tube =.000173 m2
Total area =.029 m2
Velocity = v*density/(3600*area)
= 1.1m/sec
Re= 889.37*1.1*.01483/(.7*10^(-3))
= 20726.13259
Pr= 11.188
Jh = 3.9*10*(-3)
Jf = .004
Hd/k =jhrepr*(.33)
Ht d/k= 179.33
Ht = 1526.86
Dp = np(8jf(l/di)+2.5)ut^(2)/2
= 28.589 kpa
= 4.1 psi
Shell side (bells method)
Db = d0(n/.175)^(1/2.285)
= 705.553
= 706mm
Clearance = 64mm
Ds = 770mm
Baffle spacing = ds/2
64

As = (pt - d0) dslb/pt


= .05929 m2
Gs = ws/as
= 771.288
V = .8275 m/s
De = 1.27(pt^2 - .785d0^2)/d0
= .01881 m
Re =gsde/viscosity
= 19520
Jf = .046
Dp = 62571.8 kpa
Jh = .0045
Pr = 4.99
Nu = jhrepr^(.33)
Hd0/k = 150.85
Re = 19722.19
Hoc= 4949
Hb = db/2 -ds(.5 - bc)
= 706/2-770*(.25)
= 160.5
Ncv = (706-321)/20.7168 = 18.58
Fn = 1.03 tube row correction factor
Rw = 2nw/nt
65

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

window correction factor

Bypass correction factor


Fb = exp(-a(ab/as)(1-(2ns/ncv)^(1/3)))
Ab = lb(ds - db)
= .024640
As = .05929
Ab/as = .41558
From fig 12.34 fb = .57
Now we set ns/ncv = 1/5
Fb = .863
Leakage correction factor
Fl = 1-(atb + 2asb)/al
atb = ct3.14d0(nt - nw)/2
Asb = csds(2*3.14 - )/2
Ct = .8
Nw = 107.52
Atb = .0135 m2
66

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

Nwv = hb/ pt'


160.5/(.78 x 1.25 x 19.05)
7.723

Dpw = fl' x (2 + .6nwv)density(velocity)^2)/2


= 1089
End zone pressure drop:
Dpe = dpi(nwv+ncv)/ncv

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

reference coulson and richardson vol.6

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

Stripper column S04


Bottoms mass fraction
Toluene = .0024
Mek = .0001
Temprature =1140c
Flow rate = 34582 kg/hr
Water = .0103
Density = 887.5 kg/m3
Low pressure superheated steam at 1500c use d for stripping
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
top section;

1.728

Flv top = (40435.68/7352.6)(887.5)


69

= .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

Check for weeping


maximum liquid flow rate Lw

40434.68 kg/hr

11.23 kg/s

min liquid flow rate, 70% turn down = 7.68 kg/s


maximum depth of the crest of liq over weir
how = (Lw/( lw * l ))2/3
Minimum how = 53.22mm
at
hw + how =50+53.2 mm
= 103.22 mm
(From graph (11.30) in Richardson & Coulson, vol-6)
K2 = 31
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 = (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):-

hd = 51 * (16.63/0.84)2 * (1.728/887.5) mm liquid


= 39mm liquid
Residual head (hr):hr = 12.5 * 103/ l
= 12.5 *1000/887.5
= 14.08 mm liquid
Total pressure drop ht = hd + (hw + how) + hr
= 39 + 103 +14.08
= 156 mm liquid

Downcomer liquid back-up


Downcomer pressure loss
Take hap = hw 10 = 40mm
73

Area under apron = .7106 * 40 * 10-3 = 0.0284m2


This is less than Ad
hdc = 166 * {11.23/ (887.5*0.0284)}2 = 33mm
Back-up in downcomer = (50 + 53+33 +156) = 292 mm = 0.292m
0.292< (plate spacing + weir height)/2
Acceptable
Checking residence time
tr = (0.292 * 0.1122 * 887.5)/11.23
= 2.6m/sec

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

No. of holes = 3620 holes

Stripper column S04


Bottoms mass fraction
Toluene = .0024
Mek = .0001
Temprature =1140c
Flow rate = 34582 kg/hr
Water = .0103
Density = 887.5 kg/m3
Low pressure superheated steam at 1500c used for stripping

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

Flv top = (40435.68/7352.6)(887.5)


= .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

Hydrofinishing Reactor R01


Diameter and Length Calculations

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

Pore volume (cm3/g)

0.80

Diameter (in.)

0.125

Average length (in.)

0.23

Compacted Bulk density (lb/ft3)

36

Average crush strength/length (lb/mm)

4.2

Density of inlet stream to reactor: = 909.5 kg/m3


Since total mass flow rate (F) = 27489 Kg/hr
Inlet volumetric flow rate = 30.2243 m3/hr
LHSV = 1 hr-1
Volume of catalyst = Inlet volumetric flow rate/ LHSV = 30.2243 m3
Bulk density of catalyst = 576 kg/m3
Mass of catalyst (kg) = volume of catalyst * bulk density = 17409.2 kg
Porosity of bed () = 0.83
Volume of cylindrical portion of reactor = Volume of catalyst/ (1-) =5.138131 m3
L/D (length to diameter ratio) = 6 so, D = 1.0294 m
Area of catalyst bed = 0.832593 m2
Superficial velocity = 36.30139 m/sec

77

viscocity of liquid = 0.001824 Ns/m2


Mass velocity , G = 33016.11 Kg/sec
Height of Reactor = 6.1764 m
Pressure drop calculation

P = pressure drop, KPa


L = depth of the packed bed, m
G = V = mass velocity, kg/m2s
V = superficial linear velocity, m/s
= fluid density, kg/m3
= fluid viscosity, Ns/m2
D = effective particle diameter, m
= interparticle void fraction, dimensionless
g = gravitational constant, 9.81 m/sec2

Using these formulae we calculate the value of C, f and finally P


C = 3683165
f = 1.000001
P = 2.648634 KPa
78

Condensor E13

Shell side

Cold fluid

Temperature in (Tin)( o C)

42

Temperature out (Tout) (o C)

95

Viscosity, (Ns/m2)

0.97695

Density, (kg/m3)

846.105

Conductivity , (W/m2o C)

0.13297

heat Capacity, ( KJ/kg o C)

1.927

Cold Fluid Specifications

Tube side

Hot fluid

Temperature in (tin)( o C)

120

Temperature out (tout) (o C)

120

Latent heat ( KJ/kg )

2202.3

density (kg/m3)

1.129

Viscosity (Ns/m2)

0.000013

Viscocity of condensate (Ns/m2)

0.00022

Conductivity (W/m2o C)

0.679

Hot Fluid Specifications


Step1. Heat loads
79

Flow rate of steam can be calculated using enthalpy balance:


Mass flow rate of steam = 5066.997 Kg/hr = 1.40745 Kg/sec
mass flow rate of cold fluid ( feed ) = 109264 Kg/hr = 30.35 Kg /sec
Heat load=m *L = 3099.735 KW

Step2. Calculation of Mean temperature difference

(120 95) (120 42)


= 46.58
120 95
[120 42]

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

Assuming Tube Outer Diameter O.D = 19.05 mm


Tube Inner Diameter I.D = 14.83 mm
Length (Allowing for tube thickness) = 5 m

Number of Tubes = = 280

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

Step 3: Tube Side Heat Transfer Coefficient


Actual No. of tubes used = 280
Tubes per pass = 70
Total flow area = 0.012 m2
Tube side velocity =1.4945 m /sec
=

4200 (1.35 + 0.02 )


0.2

hi =9187.276 W/m2 oC

Step 4: Shell Side Heat Transfer Coefficient


Shell Diameter Ds = 577.253 mm
Baffle spacing = 577.253 mm
Tube Pitch Pt = 1.25* tube O.D = 23.8125 mm

= 0.0666442 m2

Cross flow area

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

Step 5. Calculation of Overall Coefficient


Tube material will be plain carbon steel,
Kw = 50W/moC

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.

Step 6: Pressure Drop


Tube side Pressure drop
From figure 12.24, =0.0024


2
= [8 ( ) ( ) + 2.5]

2
=

33.33 KPa

(Ref. Eq. 12.20 C&R Vol 6)

This is acceptable

Shell-side Pressure drop


From figure 12.30, =0.032

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

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.

85

CHAPTER 6
PROCESS INSTRUMENTATION

86

Instruments for temperature measurement:


a. Thermocouple
b. Resistance Temperature Detectors (RTD)
c. Thermistor

Instruments for pressure measurement:


1. Liquid Manometers
a. U-Tube manometer
i. Mostly in laboratory
ii. Both for gas and Liquid
iii. Not for rapidly fluctuating pressure
b. Inclined Tube Manometer
i. For high sensitivity than U-tube manometer
ii. Mainly for gases
2. Elastic Pressure Sensor
a. Bourdon Tube Pressure Gauge
i. Both for gases and liquids
ii. Both industrial and domestic
iii. Tyre pressure gauge
iv. Pneumatically controlled tools and machines
v. Pipeline pressure in chemical plants
b. Bellows
i. Low pressure; 0-1000 Pa
ii. Not used in vibration or shock environment
iii. Closing valves in a pipe when a critical pressure is reached
c. Capacitive Pressure Sensors
i. Relatively expensive
ii. Measure small change in pressure in gas or liquid pipelines
d. Piezoelectric Pressure Sensor
i. Fast response
ii. Wide operating range
ii. Have high sensitivity, good accuracy, repeatability and low hysteresis
iv. Measuring the pressure in gun barrel when it is fired
e. Piezoresistive Pressure Sensors
i. Low range; 0-200 kPa
87

ii. Good repeatability, high accuracy, low hysteresis and long term stability
iii. Pressure at the bottom of the water tank
f.

Strain Gauge Pressure Sensors


i. For higher pressure; 200-25000 kPa

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

Instruments for Flow Measurement:


1. Differential pressure flow meters
a. Orifice plate
b. Flow nozzles
c. Venturi tubes
d. Variable area Rotameters
2. Velocity Flowmeters
a. Pitot tubes
b. Calorimetric flow meter
c. Turbine flow meter
d. Vortex flow meter
e. Electromagnetic flow meters
f. Ultrasonic doppler flow meter

3. Mass Flow meters


a. Thermal flow meter
b. Coriolis flow meter
4. Open channel flow meter
a. Flume
b. Weir
5. Positive displacement flow meters
a. Reciprocating piston
b. Oval gear meter
c. Nutating disk
d. Rotary vane
88

Instruments for Level Measurement:


1. Measuring using effects of density
a. Displacer
b. Float
c. Pressure gages
d. Balance method
2. Time of flight measurement
a. Ultrasonic
b. Microwave
c. Laser/Light
3. Detecting physical properties
a. Capacitive
b. Conductive
c. Radiometric
d. Ultrasonic switch
e. Microelectric switch
f. Photoelectric barrier
g. Thermal conductivity
h. Viscosity
Table 1 Used Process Instruments

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

Short description of used instruments


Resistance temperature detectors (RTDs):
These are sensors used to measure temperature by correlating the resistance of the RTD element with
temperature. Most RTD elements consist of a length of fine coiled wire wrapped around a ceramic or
glass core. The element is usually quite fragile, so it is often placed inside a sheathed probe to protect
89

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.

Piezoresistive Pressure sensors:


These devices use silicon diaphragms, which form part of a semiconductor integrated circuit chip.
Piezoresistivity is a strain dependent resistivity in single crystal semiconductors. When pressure is
applied to the diaphragm it causes a strain in the resistors. The resistance of the piezoresistor change
in proportion to this strain, and hence the change in pressure. The range of piezoresistive pressure
sensors is normally low, typically at a maximum of about 0 to 200 kPa. They are used where good
repeatability, high accuracy, low hysteresis and long term stability are required. A typical application
is in sensing the pressure at the bottom of a water tank. This pressure is directly related to the depth of
water, and so the pressure sensor forms part of a level measurement system.

Proportional-Integral-Derivative controller (PID):


A PID controller calculates an "error" value as the difference between a measured process
variable and a desired set point. The controller attempts to minimize the error in outputs by adjusting
the process control inputs. The PID controller algorithm involves three separate constant parameters,
and is accordingly sometimes called three-term control; the proportional,
the integral and derivative values, denoted P, I, and D. Simply put, these values can be interpreted in
terms of time; P depends on the present error, I on the accumulation of past errors, and D is a
prediction of future errors, based on current rate of change. The weighted sum of these three actions is
used to adjust the process via a control element such as the position of a control valve, a damper, or
the power supplied to a heating element.

Level switch of Microwave:


Microwaves are generally understood to be electromagnetic waves with frequencies above 2 GHz and
wavelengths of less than 15 cm. For level measuring systems, a small radiation angle is desirable in
order to avoid interfering reections from the tank wall or tank internals as much as possible. An
electrical pulse is generated (time t0) and a two-wire line guides the electromagnetic wave. At every
position where the surrounding permittivity changes, a part of the wave is sharply reected (time t 1)
back to the sensor. The wave propagates along the entire line and is reected a second time (t2) at the
interface between the two liquids, and a third time at the end of the line. The signal delay times (2t1,
2t2, and 2t3) represent the positions of the interfaces with respect to the end of the line, which can be
used as a reference. The signal polarity is inverted due to the reection from lower to higher
permittivity. The time scale is arbitrary.

Coriolis flow meter:


Direct mass measurement sets Coriolis flowmeters apart from other technologies. Mass measurement
is not sensitive to changes in pressure, temperature, viscosity and density. With the ability to measure
liquids, slurries and gases, Coriolis flowmeters are universal meters. Coriolis mass flowmeter uses the
Coriolis Effect to measure the amount of mass moving through the element. The fluid to be measured
runs through a U-shaped tube that is caused to vibrate in an angular harmonic oscillation. Due to the
Coriolis forces, the tubes will deform and an additional vibration component will be added to the
oscillation. This additional component causes a phase shift on some places of the tubes which can be
measured with sensors. The Coriolis flow meters are in general very accurate; better than +/- 0.1 %
with a turndown rate more than 100:1. The Coriolis meter can also be used to measure the fluids
density.

90

Electric Impedance Tomography:


This refers to a non-invasive imaging technique in which an image of the conductivity or permittivity
of bubble is inferred from surface electrode measurements. The majority of EIT systems apply small
alternating currents at a single frequency, however, some EIT systems use multiple frequencies to
better differentiate between bubbles. Small alternating currents will be applied to some or all of the
electrodes, the resulting equipotential being recorded from the other electrodes. This process will then
is repeated for numerous different electrode configurations and finally result in a two-dimensional
tomogram according to the image reconstruction algorithms incorporated. The methodology of using
an EIT image for control of reactor operation was developed to automatically reach and maintain the
flow condition deemed to correspond to the maximum interfacial area, since such a condition is
desirable for many chemical reactors and mass transfer operations using a bubble column.

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.

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CHAPTER 7
ENVIRONMENTAL PROTECTION &
ENERGY CONSERVATION

92

IV) Environmental protection &Energy Conservation


Chemical industry is regarded as one of the most powerful sources of environmental
pollution. Since all of the chemical manufacturing processes use raw materials and
consumables from each component of environment, it is clear that damages resulting from the
activities in chemical industry are not due to the industrial processes only but because to the
exhaustion of the natural resources too.
For chemical industry sustainable environment is of utmost importance with pollution
prevention as a first step, saving of raw materials and energy, whenever possible and
introduction of clean technologies to avoid impacts on environment with pollution and
treatment facilities.
Other options are to adjust manufacturing in a way to generate less waste or those compatible
with the self-regenerating capabilities of environment.
We specifically stress here upon the environmental impacts due to the production of the lube
oil in the chemical industries. The presence of furfural in refinery wastewater causes a rapid
increase in the waters chemical oxygen demand (COD). As a result , it is essential to keep
furfural discharges to sewer at a minimum. This is achieved by installing a drainage system to
recover all the occurrences of solvent leakage.
Emissions to Air
Air emissions may be categorized as either fugitive or point source emissions.

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.

Point Source Emissions


These emissions are exhausted into a vent or stack and emitted through a single point source
into the atmosphere.
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Emissions to Water
Emissions of substances to water can be categorized as discharges
to:

Surface Waters (e.g. Lakes, rivers, dams and estuaries)

Coastal or Marine Waters

Because of the significant environmental hazards posed by emitting toxic substances to


water, most facilities emitting NPI-listed substances to waterways are required by their
relevant State or Territory environment agency to closely monitor and measure these
emissions. This existing sampling data can be used to calculate annual emissions.
If no waste water monitoring data exists, emissions to process water can be calculated based
on a mass balance or using emission factors.
The discharge of listed substances to a sewer or tailings dam does not require reporting to the
NPI. However, leakage and other emissions (including dust) from a tailings storage facility
are reportable.
Air Pollution Removal

1. Distribution of emission control


The incentive for installing particulate control equipment to collect dryer emissions
was for process feasibility as well as for compliance with state and local air pollution
regulations. Scrubbers are commonly used to control particulate emissions in all
segments of the ammonium sulfate industry. At three existing caprolactum plants and
at synthetic ammonium sulfate plants, wet scrubbers are employed to control
particulate emissions. The only dry pollution control system in service is a fabric filter
bag house at one synthetic plant. For those coke oven facilities which dry or
pneumatically convey ammonium sulfate, no emission control system is employed or
relatively inefficient control devices such as cyclones are installed.
2. Wet scrubbing
Wet scrubbing is used in the majority of ammonium sulfate manufacturing facilities
for ammonium sulfate particulate removal from the dryer vent gas stream. Most of the
scrubbers are of low energy type with pressure drops equal to or less than 15.24 cm.
94

although they are of low energy type, they are adequate to meet present state and local
air pollution regulations.

(a) Venturi scrubber


(b) The venture scrubber is an air pollution device in which the scrubbing liquid is
atomized in a moving gas stream. Collection efficiency is enhanced by three
dominant factors: inertial impaction, condensation of water vapour on the
particulate and in this application, the high solubility of ammonium sulfate in water.
(c) In the venturi throat region, the gas velocity is considerably higher than that of the
accelerating liquid. This causes the ammonium sulfate liquid solution to atomize
into many fine droplets. Particulates impinge upon the slower moving liquid
droplets by inertial impaction. Also, the dryer exhaust temperature and humidity of
the gas promotes condensation of water vapour on the particulates. The increased
wetness and weight of the particulates increases the probability of their
impingement on the wetted surfaces as a result of inertial impaction.

(d) Centrifugal scrubbers


In centrifugal scrubbers, particulate laden gas usually enters the scrubber
tangentially, imparting a spinning motion to the gas. Ammonium sulfate
particulates are captured by their impacting on droplets of water or weak
ammonium sulfate solution and/or by their contact with wetted surfaces. For some
type of scrubbers, collection efficiency is enhanced by directing the gas against
rotating vanes. The pressure drops range from 7.6 cm to 33.0 cm.

(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

(f) Packed tower scrubbers


Only two packed tower scrubbers are known to be used in ammonium sulpahte
plants. Collection efficiency depends on the liquid to gas ratio, pressure drop, and
other factors. Pressure drops are commonly about 4.0 cm of packing. Their
collection efficiency is comparable to other low energy type scrubbers.

(g) Spray type scrubbers


These are used at several older ammonium sulfate plants to collect ammonium
sulfate particulate. Spray nozzles are used to atomize the liquid to form fine
droplets. The pressure drop s relatively low, usually 2.5 to 5.0 cm and the
operating costs are minimal. Collection efficiency of the spray type contact
scrubbers are usually not competitive with medium and high energy scrubbers.

3. Dry scrubbing- fabric filters


All fabric filters operate in basically the same way; dirty gas is ducted to the unit
where it is filtered by cloth tubes or bags. This filtering action is extremely efficient
and results normally in better than 99 percent of the entrained particles being removed
by the bags. The bags must be periodically purged of this collected material. The
method and frequency of cleaning differentiates one type of baghouse from another.

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.

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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.

The various uses of water are as:


Process Water - The water which is used to fulfill the requirement of process is known as process
water.

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

Air is used in 3 ways:


Control of valve (instrument air)
Process cooling (plant air)
For fired heater
Instrument air is supplied from a motor driven air compressor. The air is mainly required in the
process to cool down the process stream.

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)

Building for process equipments


Office Buildings
Employee Change House
Canteen and Recreation Centre
Control Laboratories

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 Sewer System


The primary sources of sewage in the process plant are sanitary waste, process drains. The
drainage system for the process plant will consist of one or more main sewer lines with branch
lines for each area to be drained.

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

VI) Organizational Structure and Manpower Requirement


Organizational Structure
Organizational is a structured process in which individuals and groups of people interact, that
is act, act and react continuously to achieve stated objectives. It is structured as well as a
process or a group of ongoing activities. Interaction and interrelationship of members in an
organization to achieve some purpose represent human aspect of an Organization.
Organization centers round the work or jobs.

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

Decision making and control by exception

Flexibility

Departmentalization

Goal centered and purposeful activities

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.
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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:

Task uncertainty, technology and environment

Power and conflict

Growth and size

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

Adaptability to external changes

Satisfaction of individual needs

Hierarchy
Board of directors

Establishes objectives

Overall accountability to stock holders

Chief Executive Officer

Operation business to accomplish objectives

Accountable to board of directors

Operating Management

Overall coordination and activities necessary to accomplish objectives

Accountable to CEO
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Supervision of non-supervisory employs

Accountable to operating management

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

Commercial and inventory division

Human recourses division

Marketing division

Research and development 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.

A finance department basically has three main functions:

105

To provide strategic financial support regarding operational and general business

planning.

To provide daily financial services functions

To meet and surpass the internal and external needs and financial reporting

requirements of the company at large

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.

Services and Duties of Finance Department


In order to implement these functions, there are numbers of services that need to be
performed. For example, the preparation of annual budget as well as compliance of
regulatory codes are both important services of financial department.

Key Positions in Financial Department


A financial department is comprised of several key positions that bear the burden of
responsibility when it comes to maintaining the cohesiveness and overall productivity of the
department as unit of the company.
When think about the overall structure of the financial department, there are four key point
people that may come to mind:

The Finance Director

Deputy Finance Director

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.

Deputy Finance Director


The deputy finance director is usually responsible for putting together the companys annual
budget. In this position, the deputy finance director will responsible for developing an overall
financial strategy. Sometimes referred to as finance manager, the deputy finance director is
also responsible for managing the financial departments team of employees.

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.

Evolution of the Finance Department


With each passing year the company evolves into an entity that is responsible for increasing
the company (and shareholders value). This shall be done by increasing the number of
employees of the department according to requirement and including other employees like
clerical staff and inter-section commuters.

Personnel & Administration Department


Human resources is the business administration function responsible for finding, hiring,
managing and relating employees and for ensuring that the right employees, in the right
numbers, are deployed throughout the organization to achieve its goal. Human resources is a
function that exists in every business regardless of size, Industry or geographic location. In
fact, even though small business may not have a formal human resources department or an

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.

Organizing- involves identifying responsibilities to be performed, group responsibilities into


department or divisions and specifying organizational relationship. The purpose is to achieve
coordinated effort among all the elements in the organization (Coordinating). Organizing
must take into account delegation of authority and responsibility and span of control within
supervisory units.

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.

Research and Development


A research and development departments is responsible for innovations in design, products
and style. This development will be responsible for creating innovative new products to keep
the company a step ahead of the competition. R & D department will work on improving
existing consumer products and to explore new ways of producing them.
Often a Research and Development department work closely with marketing department.
The marketing department studies consumer trends by surveying and researching consumer
demand, purchasing methods, products sales and the existence and development of the
technology across the relevant market. The marketing department gathers all the data and
makes this information available to the R & D department, which will take action in response
to the finding and proceed to keep the company on top of current market needs.

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
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material planning. Management, including operation management, is like engineering in that


it blends art with applied science. People skills, creativity, rational analysis and knowledge of
technology are all required for success.

Product Marketing & Sales


In a manufacturing company the production function may be split into five sub-functions:

Production and Planning Department


The production and planning department will set standards and targets for each section of the
production process. The quality and quantity of product coming off a production line will be
closely monitored. In business focusing on lean production, quality will be monitored by all
employees at every stage of production, rather than at the end as in the case for business
using a quality control approach.

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

Man Power Requirement


Designation

Number required

Annual salary in

Qualification

Rupees lacs/annum
MD/ Chairman

40

Engineer cum MBA


with 15years
experience.

Board of Directors

Designation

Number required

Annual salary in

Qualification

Rupees lacs/annum
CEO

30

Engineer cum MBA


with 10years
experience.

COO

25

Engineer cum MBA


with 10years
experience.
Engineer cum MBA
with 10years

CFO

20

experience

15

Chemical Engineer

Operation

Vice president (for


area between 100 and

(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

VII) Market prospects


Demand and Supply Analysis
Lube oil market outlook is an absolutely essential step for anyone looking for manufacturing
of lube oil plant. Using a wide range of primary and secondary sources, combined, analyzed
and presented all available data about lube oil market.
The lubricants usage can be divided in two key segments Automotive and Industrial. The
demand for automotive lubricants in India is driven by growth in vehicle population and the
consumption of industrial lubricants is highly correlated with Index of Industrial Production
(IIP). Automotive lubricants typically are higher margin products compared to industrial
lubricants. Majority of automotive lubricants demand is derived from commercial vehicles
(CVs) and tractors, largely dominated by diesel engines. Process oils are the biggest contributor
within industrial lubes. Lubricants play a role in cooling, rust prevention and help to avoid
deposition of solids between closely fitting parts. Liquid lubricants are most commonly used,
but for some special situations like extremes of temperature or where renewal of liquid lubes
is difficult, solid lubricants like graphite or molybdenum are used.
In the Indian market, lubricants are sold broadly through three channels- Original Equipment
Manufacturers (OEMs), petrol pumps and bazaar/retail trade. Bazaar trade is the most
112

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

Consumption (figures in 103Tonnes)

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 of waxes in the past years:


Year

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

Present Production capacity


Indian Oil -430 million lt
HPCL -350 million lt

VIII) SITE SELECTION


Critical points taken into consideration.
The geographical location of plant is a key factor that determines the success of any chemical
business venture and should not be taken lightly. The physical location of business functions
is an important part in the supply chain strategy of any company. A lot of thought has to put
into selection of the plant site, and many different factors muct be considered while selecting
the plant site. The plant site should be ideally located where acquiring the raw material in our
case is easy. Also there has to be a good scope for plant expansion, safe living condition for
easy plant operation. According to studies conducted by the SBA, poor location is among the
chief causes of all business failures. Simply finding the cheapest site is typically a recipe for
disaster.
Fajalpur is selected as a plant site; It is located about 15 kms from the IOCL, Vadodara, hence
that can also be used for import of the raw materials for the plant.

116

The following factors were considered in selecting the plant site:

Raw materials availability

Energy Supply

Meteorological data

Market study

Transportation facilities

Availability of land

Water supply

Waste disposal

Labour supply

Taxation and legal restrictions

Site characteristics

Safety and Environmental measures

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

Raw material availability:


This is by far the most important parameter that decides the plant setup location. If done with
proper thought knowledge, it can save us loads of money and manpower and also reduce the
time consumption. Attention should be given to the purchased price of the raw materials,
distance from the source of the supply, freight or transportation expenses, availability and
reliability of supply, purity of the raw material, and storage requirements.
The raw material will be available near a refinery and in this case raw material is VDU residue
of refinery.
Energy availability:
Power and steam are high in most of the chemical plants, and fuel is ordinarily required to
supply these utilities. Power and fuel can be combined as one major factor in the choice of a
plant site. If the plant requires large quantities of coal or oil, location near a source of fuel
supply may be essential for economic operation. The local cost of power can help determine
whether power should be purchased or self-generated.
Meteorological data:
If the plant is located in a cold climate, costs may be increased by the necessity for construction
of protective shelters around the process equipment, and special cooling towers or airconditioning equipment may be required if the prevailing temperatures are high. Excessive
humidity or extremes of hot and cold weather can have serious effect on the economic operation
of the plant, and these factors should be examined when selecting a site.
Market study:
The location of markets or distribution centres affects the cost of product distribution and the
time required for shipping. Proximity to the major markets is an important consideration in the
selection of plant site, because the buyer usually finds it advantageous to purchase from nearby
sources. It should be noted that markets are needed for by-products as well as for major final
products.

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:

Economic considerations, construction and operation cost

Segregation of different risk

Minimization of vulnerable pipe work

Contaminant of accidents

Limitation of exposure

Efficient and safe construction

Efficient and safe operation

Efficiency and safe maintenance

Safe control room design

Emergency control facilities

Fire fighting facilities

Access for emergency services

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

Main Administrative Building(MAB)

Design & Technical Office(DTO)

R&D Wing
121

Sales Department

Stores

Workshops

Captive Power Plant(CPP)

Feed Storage tank 1&2

Product Tank Farms

Dispatch tanks

Boilers/Process Utilities

Flare

Fire & Safety

Efficient Treatment Plant(ETP)

Future Expansion Area

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

in which the power plant produces multiple forms of

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

IX) Economic Evaluation & Project Profitability


The purpose of economic analysis of the project is to bring about a better allocation of
resources, leading to enhanced incomes for investment and consumption. An acceptable plant
design must present an economically viable process that is, capable of operating under
conditions which will yield a profit. Economic viability depends upon the sustainability of
project effects. Project is sustainable if its net benefits or positive effects endure as expected
throughout the life of the project.
Since Net Profit equals total income minus all expenses, it is essential that the Chemical
Engineer be aware of the many different types of costs involved in manufacturing processes.
A Capital Investment is required for any industrial process and determination of the
necessary investment is an important part of a plant design project. The total investment for
any process consists of Fixed Capital Investment for physical equipment and facilities in the
plant plus working capital which must be available to pay salaries keep raw materials and
products on-hand and handle other special items requiring a direct cash outlay

Step 1. Purchased Equipment Cost

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.

References for evaluating equipment cost:


1. Coulson and Richardsons, Volume 6, 4th Edition
2. Timmerhaus Cost Estimates
3. Matches process Equipment Cost Estimates.

Some important considerations


1. The base year taken is 1999.

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 = (

The Chemical Engineering Plant Cost Index can be accessed at website


http://www.che.com/pci

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

Heat Exchanger E-101

2361

3494.28

217344.2

Heat Exchanger E-102

2361

3494.28

217344.2

Heat Exchanger E-103

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

Heat Exchanger E-201

2361

3494.28

217344.2

Heat Exchanger E-202

2361

3494.28

217344.2

Heat Exchanger E-203

2361

3494.28

217344.2

Heat Exchanger E-204

2361

3494.28

217344.2

Heat Exchanger E-205

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

Heat Exchanger HX-

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

Rotary Drum R-301

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

Heat Exchange HX-401

2361

3494.28

217344.2

301
Heat Exchanger HX302
Heat Exchanger HX303
Heat Exchanger HX304
Double pipe HX-305
(18)

Area 4

130

Thus, Total Cost of Purchased Equipment= INR 3070900490

Step 2 . Other Direct Costs

i)

Instrumentation and Controls

It will include the components to control the process equipment like:


1. Pressure Gauge 0-7 kg/cm2
2. Pressure Gauge 0-10 kg/cm2
3. Temp. Gauge 4-100 C
4. Temperature. Gauge 100-200 C
5. Temperature. Gauge

0-100 C

6. Vacuum Gauge 0-760 mm Hg


7. Water Flow Switch
8. U syphon & Cock
9. Safety Valves
10. Temp. Controller
11. Temp. Indicator
12. PID Controller

ii)

Piping

1. MS Pipes (all sizes)


2. SS Pipes (all sizes)
3. PVC Pipes and Fittings
4. GI Pipes
5. Pipe Hangers, Fittings, Valves, Beams, Channels etc.
6. Insulation piping equipment

iii)

Electrical Equipment and Materials


1. Electrical equipment - switches, motors, conduit, wire, fitting etc
2. Electrical materials and labour
131

iv)

Construction of Buildings (Including Services)

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)

Site Development - site clearing, grading, roads, walkways etc.


1. Site Clearing
2. Roads
3. Walkways
4. Landscaping

vi)

Utilities and Facilities

1. Borewell and Pumpset


2. POLYSTOL HDPE tanks
3. Distribution Transformer 400KVA
4. 24TR aircooled packaged chiller
5. SS water jet vacuum system
6. 70KVA Kirloskar make generator
7. ELGI air cooled Air Compressor
8. Heating bath and Accessories
9. Cold rooms with panels
10. Cooling Towers

vii)

Non-Process Equipment

132

1. FC 1800 FRP Fume Chamber and base


2. Doors and Windows
3. Labour charges for laying granite
4. Glazed Tiles
5. Labour charges for laying tiles
6. Fire Extinguishers
7. Miscellaneous Laboratory Equipment
8. Office furniture and equipment

viii)

Land - Surveys and fees, Property cost

Step 2.a. Total Direct Costs

S. No.

Description

Grand Total in `

Purchased Equipment

Purchased Equipment Installation

Instrumentation and Controls

Piping

Electrical Equipment and Materials

Buildings (Including services)

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

Total Direct Costs (D)


Table 3

133

414.24 Cr

Step 2.b. Indirect Plant Cost

Item

Cost (in ` )
9.68 Cr

Engineering and supervision

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

Total Indirect Costs (I)

` 137.94 Cr

Fixed Capital Investment (FCI), D + I

`20.69 Cr

Working Capital (WC), 15% of FCI

` 511.19 Cr

Total Capital Investment (TCI)


Table 5

Step 3.Total Product Cost:

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

Figure: Factors involved in calculating costs of a typical chemical plant.

Basis for calculating total product cost is:


1. The Total Product Cost is calculated based on the Annual Cost Basis.
2. Number of days working per year is taken as 333 days.
3. Plant is running in 3-shifts i.e. 24hrs per day.
4. Capacity of the plant per year is 200000000 kg Lube oil base stock, 40000000 kg waxes.

Step 3.a. Cost of Raw Materials135

S. No.

Description

Vacuum Residue

Catalyst

Furfural

Propane

Quantity per annum, Kg

Total Annual (` )

3420000000

342Cr

1044552

10.44lacs

4619705

46.19 lacs

192459

1.92 lacs
342.58 Cr

Total Cost of Raw Materials


Table 6
Step 3.b. Cost of Power and Utilities
No. of
S. No.

Description

Cooling Water (m3)

Total Annual Cost (`

Units/year

Electricity(for other
2

purposes) (kWh)

Steam required (m3)

Cost / unit (` )

864691200

30

2594.07 Cr

1248134.4

5.75

71.76 Cr

57600000

1.3

7.488Cr

Total Annual Cost of Power & Utilities

2673.32 Cr

Table 7
Step 3.c.Total Annual Direct Production Cost

S. No.

Description

Total Annual Cost (` )

Raw Materials

Operating Labor

Operating Supervision

Power and Utilities

Maintenance and Repairs

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

Step 3.d. Fixed Charges

S. No.

Types

Depreciation

Taxes

Insurance

Total Charges (in ` )


2.43 Cr
3.65 Cr
1.21 Cr
Table 9

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

Step 3.e.Total Manufacturing Cost (M)

S. No.

Description

Direct Production Cost

Fixed Charges

Plant Overhead Costs

Total Annual cost in Rs.


721.47 Cr
7.30 Cr
17.72 Cr
Table 10

Step 3.f. Total Product Costs (TPC)

137

S. No.

Description

Total Annual cost (` )


1.04 Cr

Administrative Expenses

Distribution and Marketing Expenses

23.16 Cr
24.2 Cr

Total General expenses(G)


Table 11

Total manufacturing cost (M)= Direct Production cost + Fixed Charges+ Plant Overhead
Cost
= ` 746.49 Cr
Total Product cost=M+G = ` 770.69 Cr

Step 5. Profitability Analysis

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

Market value of Finished product


Lube oil base stock

$750/MT

Slack wax

$150/MT

Annual Revenue through Sales


Gross Profit

970.32 Cr

199.63 Cr

20

Assuming tax percent

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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142

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