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Cost Estimation

1. The document provides details on estimating the costs for a chemical plant that produces ethyl benzene and styrene from a reactor. It outlines calculating the capital costs, operating costs, and profit. 2. It describes estimating equipment sizes, stream costs, energy costs, labor costs, and depreciation and maintenance costs to calculate the net annual profit. 3. The summary provides an estimated net annual profit of £4-5 million and notes the calculation involves determining the capital investment costs and subtracting the operating, depreciation, and maintenance expenses.

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309 views7 pages

Cost Estimation

1. The document provides details on estimating the costs for a chemical plant that produces ethyl benzene and styrene from a reactor. It outlines calculating the capital costs, operating costs, and profit. 2. It describes estimating equipment sizes, stream costs, energy costs, labor costs, and depreciation and maintenance costs to calculate the net annual profit. 3. The summary provides an estimated net annual profit of £4-5 million and notes the calculation involves determining the capital investment costs and subtracting the operating, depreciation, and maintenance expenses.

Uploaded by

mrtrixs
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Cost Estimation

Chemical Engineering DPS-A




  
   
  

 Gases

 Reactor Products
 Liquid
Organics

 Water
 Steam
  
 EB
Topping Ethyl Benzene Styrene
Column Column Column

  

Calculate Net annual Profit = ?

1- Capital cost
Equipment and Machinery
Contingency cost
Building cost (20 acres of farmland)
Depreciation (10% of capital)
Maintenance (15% of capital)

Ñ 



 

  
 

 
 
 

  


Estimating size of machinery

Find out the dimensions of Reactor, Gravity separator


and Distillation column

Determine the densities of streams and calculate the


volume and height of the equipments (assume the
diameter). Use r2h

  


2- Operating Cost
Streams Cost
Find out the Prices of streams (feed, products and by products)
give you the material values
How much EB can be recycled.
Net new EB requirement is ?

Energy Cost
Furnace heating cost per hour (assume). Calculate the recycled
gases provide, worth of heating ?
Calculate the annual heating cost

Labour Cost
Assume the number of staff and wages

   
Omounts lost as gas from organic separator
  |
  
   
       |   
!|" !#$" %  % 

Styrene 4266
Ethyl 4563
Benzene
Hydrogen 286
Methane 890
Ethane 1559
Benzene 3267
Toluene 3909

 
Ossume 3.6 MJ = 1kWhr
Ossume 1kWhr = £ 0.08

  


Calculate Gross Annual Profit (GAP)

Net annual profit = GAP ʹ (Energy cost +labour


cost + Depreciation +
Maintenance cost)

= ~ 4 to 5 million pound

Olso calculate the Capital investment includes Equipment, land and building cost

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