BIOCHEMICAL PLANT DESIGN AND ECONOMICS

Time : 3 Hours. Full Marks: 100

Attempt any FIVE questions. All questions carry equal marks.

1. a. What are the two main activities that Process Design consists of?
b. What are the commonly used five levels of design estimates and the error ranges
associated with them?
c. What is the role of Environmental Impact Assessment (EIA) in the overall process
design and cost estimation procedure? [4 + 10 + 6]

2. a. What are Process Simulators? Briefly discuss the development of specific simulators
for bioprocesses with particular reference to BPS, BioProDesigner, SuperPro Designer,
BDS and BATCHES.
b. Tabulate the various cost items (and their average multipliers) in fixed capital cost
estimation during setting up of a bioprocess plant.
c. What do you understand by scaling law explain with a specific example. What is the
Chemical Engg Plant Cost Index? [8 + 6 + 6]

3. For the scale-up of geometrically similar stirred tank bioreactors (STBR) for aerobic
suspension cultures, show that scale-up relations obtained separately by assuming
agitator Reynolds No., Aeration No. and Power No. respectively as scale-up basis, (i.e.
constant across scale), are mutually incompatible. Which of the above seems to you as
the most fundamental basis? (Note that the scale-up relation based on the Power No.
should incorporate the volume-specific power, the agitator Reynolds no. and the
agitation rate). [20]

4. The current insulation for a certain process equipment is causing a substantial energy
loss and must be replaced. Four types of insulation are available and their estimated
installation cost and associated annual savings in energy are given below:
Insulation Type Cost($) Estimated Annual Savings($)
A 3000 1400
B 5000 1900
C 6000 2000
D 9700 2400

Which is the best option (including the option of no-change) based on (a) Return on
installation cost and (b) Rate of return on Incremental Investment ?
[Assume an acceptable internal rate of return of 15% ] [20]
5. Cost of acquisition of a piece of equipment is USD 150 million, and its salvage value
after a 7 year operating life, is USD 10 million. Compare, in a tabular form, the annual
depreciation allowances by the straight-line (SL) method, sum of years digits (SOYD)
method, double declining balance (DDB) method and the modified accelerated cost
recovery system (MACRS)? Comment. [20]

6. In a process equipment design, you can choose either of the following materials of
construction:
A B C
Mat. of constrn. CS SS Ni alloy
Installed cost ($) 6000 12000 15000
Working Life (yrs) 4 7 8
Annual Operating Cost ($) 1700 1300 1000
Which option would you select, using the Equivalent Annual Operating Cost (EAOC)
method? (assume 10% internal rate of return). [20]

7. A biotechnology company is offering bench-scale bioreactors on instalment basis, with

an initial down payment. If I have to pay an EMI of Rs. 5000/- for 60 months after a down
payment of Rs. 50,000/- (with interest charged @ 10% p.a.) what is the cost of the
bioreactor? Derivation of the formula used is required. [20]