Fydp II Group 17 Final Report - 24th August 2011 - 1

CAB 4023 PLANT DESIGN PROJECT II
MAY SEMESTER 2011
PRODUCTION OF AMMONIA 671,200 METRIC TONNES PER YEAR AMMONIA
GROUP 17
MUHAMMAD MUSTAQIM BIN RAZAK MUHD IRSYADUDDIN ZAKWAN BIN NOR SAERAN MUZAKKIR BIN AZIZ NOR ALWANI BINTI ABD GHANI @ YAACOB 10847 10875 10877 10909
CHEMICAL ENGINEERING PROGRAMME UNIVERSITI TEKNOLOGI PETRONAS BANDAR SRI ISKANDAR, 31750 TRONOH, PERAK DARUL RIDZUAN
PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY
FYDP GROUP 17
CERTIFICATION OF APPROVAL CAB 4023 PLANT DESIGN PROJECT II
MAY SEMESTER 2011
PRODUCTION OF AMMONIA 671,200 METRIC TONNES PER YEAR AMMONIA
GROUP 17
MUHAMMAD MUSTAQIM BIN RAZAK MUHD IRSYADUDDIN ZAKWAN BIN NOR SAERAN MUZAKKIR BIN AZIZ NOR ALWANI BINTI ABD GHANI @ YAACOB 10847 10875 10877 10909
APPROVED BY, ___________________________________ (DR KHALIK MOHAMAD SABIL) CHEMICAL ENGINEERING PROGRAMME UNIVERSITI TEKNOLOGI PETRONAS
FYDP GROUP 17
FYDP GROUP 17
ACKNOWLEDGEMENT
It is a pleasure to thank those who made Final Year Design Project II (FYDP 2) possible, Our group FYDP group 17 would like to take this opportunity to thank and acknowledge all parties who played role in making the projects successful. First of all, we would like to thank Dr. Khalik Mohamad Sabil from Chemical Engineering Department for his endless and priceless guidance and support throughout of the project period. Special thanks go to Dr. Risza Rusli and Dr. Rajashekhar Pendyala who have supportively helping the group during the project as the project coordinators. Our group also would like to convey our gratitude to our family members and friends for their moral support throughout of the project period. Thank you.
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TABLE OF CONTENTS
ACKNOWLEDGEMENT...........................................................................................................................II TABLE OF CONTENTS...........................................................................................................................III EXECUTIVE SUMMARY.......................................................................................................................VII LIST OF FIGURES.................................................................................................................................VIII LIST OF TABLES........................................................................................................................................X 1 CHAPTER 1 INTRODUCTION.........................................................................................................1 1.1 PROJECT BACKGROUND..............................................................................................................................1 1.2 OBJECTIVES..............................................................................................................................................1 1.3 SCOPE OF PROJECT.....................................................................................................................................1 2 CHAPTER 2 LITERATURE REVIEW.............................................................................................5 2.1 HISTORY OF AMMONIA...............................................................................................................................5 2.2 AMMONIA USAGE AND PROCESSABILITY.........................................................................................................6 2.3 AVAILABLE TECHNOLOGY............................................................................................................................7 2.4 PRODUCT MARKET SURVEY......................................................................................................................10 2.41 Demand...............................................................................................................................................10 . 2.4 Climax.................................................................................................................................................12 . 2.43 Ammonia Market Lengthen.................................................................................................................12 . 2.4 Import and Export...............................................................................................................................13 . 2.45 European Market review.....................................................................................................................15 . 2.46 Asia. Market Review.............................................................................................................................16 2.47 Malaysia Market Review.....................................................................................................................16 . 2.5 SITE STUDY............................................................................................................................................18 2.51 Introduction.........................................................................................................................................18 . 2.5 Criteria in Selection of Plant Site........................................................................................................18 . 2.53 Proposed location................................................................................................................................20 . 2.54 Conclusion Remark.............................................................................................................................25 . 2.1 PREVIOUS PLANT ACCIDENT.......................................................................................................................26 2.1 Accident 1............................................................................................................................................26 . 2.1 Accident 2............................................................................................................................................26 . 3 CHAPTER 3 CONCEPTUAL PROCESS DESIGN AND SYNTHESIS......................................28 3.1 GENERAL PROCESS DESCRIPTION...............................................................................................................28 3.1 The .reactions and reactions conditions...............................................................................................28 3.2 PRELIMINARY REACTOR OPTIMIZATION USING - HIERARCHICAL DECOMPOSITION METHOD (DOUGLAS METHOD). .34 3.3 BATCH VERSUS CONTINUOUS.....................................................................................................................34 3.4 INPUT-OUTPUT STRUCTURE OF THE FLOWSHEET...........................................................................................36
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3.41 Number of product streams.................................................................................................................37 . 3.5 REACTOR DESIGNED AND RECYCLE STRUCTURE OF THE FLOWSHEET..................................................................38 3.51 Reactor design.....................................................................................................................................38 . 3.52 Reaction Conditions............................................................................................................................43 . 3.5 Catalysts..............................................................................................................................................47 . 3.54 Recycle structure.................................................................................................................................48 . 3.6 PROCESS SCREENING OR SEPARATION SYSTEM SYNTHESIS...............................................................................49 3.61 General structure of the separation system.........................................................................................49 . 3.62 Vapour recovery system......................................................................................................................49 . 3.6 Liquid separation system.....................................................................................................................51 . 3.64 Carbon Dioxide removal.....................................................................................................................51 . 3.65 Ammonia absorption unit....................................................................................................................53 . 3.6 Knock out drum...................................................................................................................................54 . 3.7 : HEAT INTEGRATION....................................................................................................................56 3.71 Introduction.........................................................................................................................................56 . 3.72 Stream Identification...........................................................................................................................56 . 3.7 Minimum Temperature Difference Tmin.............................................................................................56 . 3.74 Pinch Technology Method...................................................................................................................57 . 3.75 Stream Identification for pinch............................................................................................................58 . 3.76 Corrected Temperature.......................................................................................................................59 . 3.7 Problem Table Algorithm....................................................................................................................59 . 3.78 Heat. Cascade......................................................................................................................................59 3.79 Grand composite curve.......................................................................................................................61 . 3.71 Heat.0 Exchanger Network....................................................................................................................62 3.71 Energy saving evaluation....................................................................................................................63 .1 4 CHAPTER 4 INSTRUMENTATION AND CONTROL................................................................65 4.1 INTRODUCTION........................................................................................................................................65 4.1 Safety...................................................................................................................................................65 . 4.12 Production specifications....................................................................................................................66 . 4.13 Environmental Regulations.................................................................................................................66 . 4.1 Operational constraints.......................................................................................................................66 . 4.15 Economics...........................................................................................................................................66 . 4.2 BASIC CONCEPT OF ADVANCED PROCESS CONTROL.....................................................................................68 4.21 Feedback Control................................................................................................................................68 . 4.2 Feedforward Control...........................................................................................................................68 . 4.23 Cascade Controller.............................................................................................................................69 . 4.2 Ratio Control.......................................................................................................................................70 . 4.3 AMMONIA PLANT CONTROL SYSTEM..........................................................................................................71 4.31 Introduction.........................................................................................................................................71 . 4.32 Feed Control System...........................................................................................................................72 . 4.3 Air and reactant mixture.....................................................................................................................73 .
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4.3 Primary Reformer Reactor..................................................................................................................74 . 4.35 Secondary Reformer Reactor..............................................................................................................75 . 4.36 High Temperature Shift Reactor.........................................................................................................77 . 4.37 Low. Temperature Shift Reactor..........................................................................................................79 4.38 Methanation Reactor...........................................................................................................................80 . 4.39 Ammonia Synthesis Reactor................................................................................................................81 . 4.31 Carbon Dioxide Removal....................................................................................................................83 .0 4.31 Water Removal....................................................................................................................................84 .1 4.31 Ammonia Separation...........................................................................................................................85 .2 5 CHAPTER 5 SAFETY AND LOSS PREVENTION.......................................................................87 5.1 INTRODUCTION........................................................................................................................................87 5.2 SAFETY ISSUES IN CHEMICAL PLANTS.........................................................................................................87 5.21 Hazard awareness reducing accident risk..........................................................................................88 . 5.2 Precautions against toxic risk.............................................................................................................88 . 5.23 Organization for meeting up an emergency........................................................................................89 . 5.3 HAZARD AND OPERABILITY STUDIES (HAZOP).....................................................................91 5.31 Introduction.........................................................................................................................................91 . 5.32 Basic Principle of HAZOP..................................................................................................................91 . 5.3 Process HAZOP..................................................................................................................................92 . 5.34 HAZOP procedure...............................................................................................................................92 . 5.3 Worksheet entries................................................................................................................................93 . 5.36 Process parameters.............................................................................................................................95 . 5.37 Selected node.......................................................................................................................................96 . 5.38 HAZOP Analysis: Node 1....................................................................................................................98 . 5.39 HAZOP Analysis: Node 2..................................................................................................................103 . 5.31 HAZOP Analysis: Node 3..................................................................................................................107 .0 5.4 PLANT LAYOUT.....................................................................................................................................111 5.41 Introduction.......................................................................................................................................111 . 5.42 Plant Arrangement Description........................................................................................................114 . 5.43 Process Area......................................................................................................................................115 . 6 CHAPTER 6 WASTE TREATMENT............................................................................................121 6.1 INTRODUCTION......................................................................................................................................121 6.2 WASTE IDENTIFICATION..........................................................................................................................121 6.21 Solid Waste........................................................................................................................................121 . 6.2 Liquid Waste......................................................................................................................................122 . 6.23 Gaseous Waste..................................................................................................................................122 . 6.24 Others Waste.....................................................................................................................................123 . 6.3 LAWS AND REGULATIONS.......................................................................................................................123 6.31 Liquid Wastes....................................................................................................................................123 . 6.32 Solid Wastes......................................................................................................................................124 .
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6.3 Gaseous Wastes.................................................................................................................................125 . 6.4 WASTEWATER TREATMENT STRATEGY......................................................................................................126 6.5 WASTE WATER (EFFLUENT) TREATMENT PROCESS FLOW DIAGRAM............................................................126 6.51 Waste Water Treatment Process.......................................................................................................127 . 6.52 Solid Wastes Handling......................................................................................................................128 . 6.53 Labeling of packaging:......................................................................................................................131 . 7 CHAPTER 7 PROCESS ECONOMICS AND COST ESTIMATION........................................133 7.1 INTRODUCTION......................................................................................................................................133 7.2 CAPITAL COST/ CAPITAL EXPENDITURE (CAPEX)....................................................................................133 7.21 Working Capital................................................................................................................................136 . 7.3 ANNUAL OPERATING COST.....................................................................................................................136 7.31 Manufacturing Cost...........................................................................................................................136 . 7.1 PROCESS ECONOMIC ANALYSIS................................................................................................................139 7.2 NET PRESENT VALUE (NPV).................................................................................................................140 7.3 PAYBACK PERIOD..................................................................................................................................146 7.4 INTERNAL RATE OF RETURN (IRR).........................................................................................................146 8 CHAPTER 8 CONCLUSION & RECOMMENDATION............................................................148
REFERENCES..........................................................................................................................................150 APPENDIX 1: PFD DIAGRAM..............................................................................................................153 APPENDIX 2: PLANT LAYOUT............................................................................................................154 APPENDIX I: SITE LOCATION............................................................................................................155
APPENDIX I: SITE LOCATION
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EXECUTIVE SUMMARY
The purpose of writing this report is to present the tasks, projects and work completed by our group group 17 throughout of Final Year Design Project II (FYDP 2). The title given for the project is the production of Ammonia. There are seven chapters in the report; starting with the introduction which consists of the project background, the objectives of the project, the scope of the project, the history of ammonia, ammonia usage and processability and available technology, followed by chapter 2 which is the literature review focusing on ammonia synthesis process, product market survey and site study. Chapter 3 highlights the conceptual process design, there are 5 levels in conceptual process design using Douglas hierarchical approach. Continues with chapter 4, which discussed the instrumentation and control, in this particular chapter, the control strategy is performed at each of the process stage. The discussion is then followed by chapter 5 which is regarding safety and loss prevention. This chapter will zoom on hazard and operability studies (HAZOP) and the plant layout. Moving to the next chapter, chapter 6 will elaborate more on waste treatment where the ethical and statutory requirement must be fulfilled concerning on waste disposal and treatment. Chapter 7 will stress on process economics and cost estimation. Finally, the project will be concluded by conclusion and recommendation.
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LIST OF FIGURES
FIGURE 11: TYPICAL AMMONIA PLANT CONSISTING OF EIGHT CATALYTIC STAGES.........................................3 FIGURE 21: AMMONIA USAGE...........................................................................................................11 FIGURE 22: WORLD AMMONIA DEMAND.............................................................................................12 FIGURE 23: AMMONIA WORLD IMPORT...............................................................................................14 FIGURE 24: AMMONIA WORLD EXPORT..............................................................................................14 FIGURE 25: AMMONIA NET PRICE PER QUARTER.................................................................................15 FIGURE 26: MALAYSIA AMMONIA PRODUCTION BY YEAR.....................................................................17 FIGURE 31: COMPARISON BETWEEN NATURAL GAS REFORMING, HEAVY OIL AND COAL GASIFICATION IN EUROPE .....................................................................................................................................29 FIGURE 32: BLOCK DIAGRAM OF THE STEAM/ AIR REFORMING PROCESS [1].................................................30 FIGURE 33: GENERAL INPUT-OUTPUT STRUCTURE OF AMMONIA PLANT EXCLUDING THE INNER LOOP...............36 FIGURE 34: COMPLETE INPUT-OUTPUT STRUCTURE OF AMMONIA PLANT....................................................36 FIGURE 35: REACTION RATE FOR AMMONIA SYNTHESIS DEPENDENCE ON THE AMMONIA CONCENTRATION AT
VARIOUS PRESSURES..........................................................................................................43
FIGURE 36: REACTION RATE FOR AMMONIA SYNTHESIS DEPENDENCE ON THE AMMONIA CONCENTRATION AT
VARIOUS TEMPERATURES....................................................................................................44
FIGURE 37: AMMONIA SYNTHESIS RATE CONSTANT DEPENDENCE ON HYDROGEN: NITROGEN RATIO................45 FIGURE 38: RECYCLE STRUCTURE OF THE FLOWSHEET............................................................................48 FIGURE 39: SEPARATION SYSTEM RECYCLE LOOP AFTER AMMONIA SYNTHESIS............................................50 FIGURE 310: CARBON DIOXIDE ABSORBER UNIT....................................................................................51 FIGURE 311: CARBON DIOXIDE REMOVAL PROCESS................................................................................52 FIGURE 312: AMMONIA ABSORPTION UNIT...........................................................................................53 FIGURE 313: AMMONIA PURIFICATION PROCESS....................................................................................54 FIGURE 314: BASIC VAPOUR-LIQUID SEPARATOR...................................................................................55 FIGURE 315: WATER REMOVAL SYSTEM..............................................................................................55 FIGURE 316: PROBLEM TABLE ALGORITHM.........................................................................................59 FIGURE 317: HEAT CASCADE USING MANUAL CALCULATION...................................................................60 FIGURE 318: HEAT CASCADE USING SPRINT CALCULATION................................................................60 FIGURE 319: COMBINED GRAND COMPOSITE CURVES..............................................................................61 FIGURE 320: GRAND COMPOSITE CURVE............................................................................................62 FIGURE 321: HEAT EXCHANGER NETWORK FOR AMMONIA PRODUCTION PLANT...........................................63 FIGURE 322: HEAT EXCHANGER AFTER THE SECONDARY REFORMER TO GENERATE STEAM AS UTILITIES..........63 FIGURE 41: EXAMPLE OF FEEDBACK CONTROL SYSTEM...........................................................................68 FIGURE 42: EXAMPLE OF FEEDFORWARD CONTROL SYSTEM.....................................................................69 FIGURE 43: EXAMPLE OF CASCADE CONTROL SYSTEM............................................................................70 FIGURE 44: EXAMPLE OF RATIO CONTROL SYSTEM.................................................................................70
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FIGURE 45: AMMONIA PRODUCTION PROCESS DIAGRAM..........................................................................71 FIGURE 46: STEAM AND NATURAL GAS MIXTURE CONTROL SYSTEM..........................................................72 FIGURE 47: AIR AND REACTANT MIXTURE CONTROL SYSTEM...................................................................73 FIGURE 48: PRIMARY REFORMER REACTOR CONTROL SYSTEM..................................................................74 FIGURE 49: SECONDARY REFORMER REACTOR CONTROL SYSTEM..............................................................75 FIGURE 410: HIGH TEMPERATURE SHIFT CONVERTER CONTROL SYSTEM....................................................77 FIGURE 411: LOW TEMPERATURE SHIFT REACTOR CONTROL SYSTEM.........................................................79 FIGURE 412: METHANATION REACTOR CONTROL SYSTEM.......................................................................80 FIGURE 413: AMMONIA SYNTHESIS REACTOR CONTROL SYSTEM...............................................................81 FIGURE 414: CARBON DIOXIDE REMOVAL CONTROL SYSTEM...................................................................83 FIGURE 415: WATER REMOVAL CONTROL SYSTEM.................................................................................84 FIGURE 416: AMMONIA SEPARATION CONTROL SYSTEM..........................................................................85 FIGURE 51: ILLUSTRATION OF HAZOP PROCEDURE (M. RAUSAND, 2005)............................................93 FIGURE 52: STUDY NODE 1- SYNGAS COMPRESSOR................................................................................97 FIGURE 53: STUDY NODE 2 AMMONIA CONVERTER...........................................................................102 FIGURE 54: STUDY NODE 3 AMMONIA ABSORPTION TOWER...............................................................106 FIGURE 61: WASTE WATER TREATMENT FLOW DIAGRAM....................................................................126 FIGURE 71: ESTIMATED COST FOR EQUIPMENT....................................................................................133 FIGURE 72: CASH FLOW DIAGRAM FOR NON-DISCOUNTED RATE, I=0%...................................................143 FIGURE 73: CUMULATIVE CASH FLOW RATE FOR I=10%, I=20% AND I=30%.......................................145
Figure 73: Cumulative cash flow rate for i=10%, i=20% and i=30%
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LIST OF TABLES
TABLE 11: AMMONIA PROPERTIES........................................................................................................4 TABLE 21: DESCRIPTION OF AMMONIA USAGE AND PROCESSABILITY...........................................................6 TABLE 22: COMPARISON BETWEEN STEAM METHANE REFORMING (SMR), THERMAL PARTIAL OXIDATION (POX) AND AUTO THERMAL REFORMING (ATR).................................................................9 TABLE 23: SUMMARY OF SITE CHARACTERISTICS.................................................................................22 TABLE 24: WEIGHT MARKS AND EXPLANATION ON THE PLANT SITE LOCATION FACTORS..............................24 TABLE 25: WEIGHTED EVALUATION ON POTENTIAL SITES.....................................................................25 TABLE 31: CRITERIA OF SELECTING THE PROCESS TYPE..........................................................................35 TABLE 32: COMPONENTS EXPECTED TO LEAVE THE REACTOR..................................................................37 TABLE 33: NATURAL GAS COMPOSITION..............................................................................................37 TABLE 34: SUMMARY OF DECISION IN LEVEL 2-INPUT-OUTPUT STRUCTURE OF FLOWSHEET..........................38 TABLE 35: COMPARISONS BETWEEN CSTR AND PFR..........................................................................39 TABLE 36: PRACTICAL REACTOR TO BE USED FOR AMMONIA PLANT..........................................................41 TABLE 37: CATALYSTS USED IN THE CATALYTIC STAGES IN AMMONIA PRODUCTION PROCESS........................47 TABLE 38 OPTIMUM T
MIN
IN DIFFERENT INDUSTRIES.............................................................................57
TABLE 39: THE OVERALL NUMBER OF STREAMS....................................................................................58 TABLE 310: STREAM USED FOR PINCH ANALYSIS...................................................................................58 TABLE 311: ENERGY SAVING EVALUATION...........................................................................................64 TABLE 41: STEAM AND NATURAL GAS MIXTURE CONTROL STRATEGY........................................................72 TABLE 42: AIR AND REACTANT MIXTURE CONTROL STRATEGY.................................................................73 TABLE 43: PRIMARY REFORMER REACTOR CONTROL STRATEGY................................................................75 TABLE 44: SECONDARY REFORMER REACTOR CONTROL STRATEGY............................................................76 TABLE 45: HIGH TEMPERATURE SHIFT CONVERTER CONTROL STRATEGY....................................................78 TABLE 46: LOW TEMPERATURE SHIFT REACTOR CONTROL STRATEGY........................................................80 TABLE 47: METHANATION REACTOR CONTROL STRATEGY.......................................................................81 TABLE 48: AMMONIA SYNTHESIS REACTOR CONTROL STRATEGY..............................................................82 TABLE 49: CARBON DIOXIDE REMOVAL CONTROL STRATEGY...................................................................84 TABLE 410: WATER REMOVAL CONTROL STRATEGY..............................................................................85 TABLE 411: AMMONIA SEPARATION CONTROL STRATEGY.......................................................................86 TABLE 51: THE BASIC HAZOP GUIDE-WORDS (M. RAUSAND, 2005)...................................................95 TABLE 61: IDENTIFICATION OF WASTE BY OPERATION........................................................................122 TABLE 62: MISCELLANEOUS WASTE.................................................................................................123 TABLE 63 STANDARD A AND B VALUES OF ENVIRONMENTAL QUALITY ACT 1974................................124 TABLE 64: STANDARDS OF DARK SMOKE PERMISSIBLE IN PLANTS.........................................................125 TABLE 65: WASTE CLASSIFICATION LINED BY KUALITI ALAM.............................................................128 TABLE 67: ORGANIC WASTES FOR INCINERATION...............................................................................129
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TABLE 71: TYPICAL FACTORS (JAMES M. DOUGHLAS, 1988).............................................................135 TABLE 72: TYPICAL FACTORS FOR PLANT (DOUGLAS, 1988)..............................................................135 TABLE 73:NON-DISCOUNTED CASH FLOW (I=0%)...............................................................................142 TABLE 74: DISCOUNTED CASH FLOW FOR I=10%, I=20% AND I=30%.................................................144 TABLE 75: NET CASH AT EOY OF 20 YEARS FOR I=20% AND I=30%.................................................147
Table 710: Net cash at EOY of 20 years for i=20% and i=30%
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1 CHAPTER 1 INTRODUCTION
1.1Project Background
The final year design project is divided into two phase which are Plant Design Project I and Project Plant Design II. The designed team has been assigned to propose a plant that produces 671,200 ton per year (pre determined based on market demand) of Ammonia, using Purified Hydrogen and Nitrogen as the feedstocks. The reaction takes place in a gas phase with supported iron oxide catalyst. The core design is to include facilities that are located within the battery limits of ammonia production. The designs for offsites, utility plant or waste water treatment are not required. However, the design must include the offsites, utility plants and waste water treatment in the economic evaluation.
1.2Objectives
The aims of the Plant Design Project II are: To perform instrumentation and control studies The perform process design and mechanical design of the major process units (individual project) To perform safety and loss prevention studies including plant layout To deal with the waste from the plant to flow the rules and regulation To perform the economic evaluation
1.1Scope of Project
This project is primarily to design an Ammonia process plant. All researches and literatures used for this project include the scope of the chemical compositions, usage and cost, alternative process route for Ammonia manufacture, current productions of Ammonia, preliminary hazards and safety analysis, process design configurations and selections, and configuration of plant equipment (i.e. reactor, compressor, separation system, heat integration). The designing phase of the best process route is then executed using a complete material and energy balance of manual engineering calculation and PETRONAS iCON software. The design is aided with heat integration study in 2
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economical decision. The uprising design problems are resolved by making the necessary decisions, judgements and assumptions. The scope of the project is solely aimed for achieving the objectives of the plant design process. Anhydrous ammonia is produced in about 80 countries worldwide (in 2001). About 86% was used for nitrogen fertilizer production which including about 4% that was directly applied to the field. In United States however, the distribution of ammonia use slightly different from the worldwide uses. Only 80% of the ammonia is used to make fertilizers and out of it, 20% is used as a direct application fertilizer (Ammonia properties encyclopedia airliquide.com). Generally, there are eight catalytic stages in a typical continuous ammonia plant, which are: 1. Purification 2. Pre-reforming 3. Primary reforming 4. Secondary reforming 5. High temperature shift 6. Low temperature shift 7. Methanation 8. Ammonia synthesis
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Figure 11: Typical ammonia plant consisting of eight catalytic stages Figure 11 shows typical ammonia plant which is consisting of eight catalytic stages. Considering this, it is know that the input output structure of the flowsheet and the recycle structure of the flowsheet must consider the other stages of the plant and not only focussing on the ammonia synthesis. Therefore, for the input output structure, two different ways of doing it will be represented.
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Table 11: Ammonia properties
PROPERTIES Molecular Structure Other names Molar mass Appearance Density Melting Point Boiling Point Solubility in Water Specific Gravity Hydrogen nitride, Trihydrogen nitride, Nitro-Sil 17.031 g/mol Colourless gas with strong pungent odour 0.86 kg/m (1.013 bar at boiling point) -77.73 C -33.34 C 700.0 g/1000 mL at 10C 0.597 at 1.013 bar and 21C PHYSICAL DANGERS: Explosive if mixed with halogens, silver mercury or iodide salt. CHEMICAL DANGERS: Toxic and explosive if mixed with halogens. Hazards INHALATION RISK: Exposure to high concentration of gaseous ammonia results in lung damage and death. EFFECTS OF SHORT-TERM EXPOSURE: The substance is irritating and burning to the eyes and the skin. Sources: Ammonia properties , retrieved from the website, 15th April 2011, at
http://encyclopedia.airliquide.com/Encyclopedia.asp?GasID=2
Molecular Formula NH3
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1 CHAPTER 2 LITERATURE REVIEW

1.1 History of Ammonia
Shortage of naturally occurring and nitrogen-rich fertilizers at the beginning of the 20th century had prompted the German Chemist Fritz Haber, and others, to look for ways of combining the nitrogen in the air with hydrogen to form ammonia, which is a convenient starting point in the manufacture of fertilizers. This process is apart of interest to the German chemical industry as Germany was preparing for World War I and nitrogen compounds were needed for explosives. The hydrogen for the ammonia synthesis was made by the water-gas process (a Carl Bosch invention) which involves blowing steam through a bed of red hot coke resulting in the separation of hydrogen from oxygen. The nitrogen was obtained by distillation of liquid air, then by cooling and compressing air. These days, the hydrogen is produced by reforming light petroleum fractions or natural gas (methane, CH4) by adding steam: Ni catalyst CH4(g) + H2O(g) ----------> 700oC Enough steam is used to react with about 45% of the methane (CH4), the rest of the methane is reacted with air: 2CH4(g) + O2(g) + 4N2(g) (air) Ni catalyst ---------> 2CO(g) + 4H2(g) + 4N2(g) CO(g) + 3H2(g)
All the carbon monoxide (CO) in the mixture is oxidised to CO2 using steam and an iron oxide catalyst: CO(g) + H2O(g) iron oxide catalyst ------------------> H2(g) + CO2(g)
The carbon dioxide (CO2) is removed using a suitable base so that only the nitrogen gas (N2) and hydrogen gas (H2) remain and are used in the production of ammonia (NH3). In ammonia production the hydrogen and nitrogen are mixed together in a ratio of 3:1 by volume and compressed in high pressure system supported with catalytic system. 7
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1.2 Ammonia usage and processability

Table 21: Description of ammonia usage and processability
Industry Fertilizer For production of:
Use
Ammonium sulfate, (NH4)2SO4 ammonium phosphate, (NH4)3PO4 ammonium nitrate, NH4NO3 urea, (NH2)2CO,also used in the production of barbiturates (sedatives), is made by the reaction of ammonia with carbon dioxide
CO2 carbon dioxide Chemicals
2NH3
H2NCOONH4
heat, pressure (NH2)2CO urea
ammonia ammonium carbonate synthesis of:
Nitric acid, HNO3, which is used in making explosives such as TNT (2, 4, 6-trinitrotoluene), nitroglycerine which is also used as a vasodilator (a substance that dilates blood vessels) and PETN (pentaerythritol nitrate).
Explosives Fibres and plastics Refrigeration Pharmaceuticals nylon,
sodium hydrogen carbonate (sodium bicarbonate), NaHCO3 sodium carbonate, Na2CO3 hydrogen cyanide (hydrocyanic acid), HCN hydrazine, N2H4 (used in rocket propulsion systems) -[(CH2)4-CO-NH-(CH2)6-NH-CO]-,and other
ammonium nitrate, NH4NO3 polyamides used for making ice, large scale refrigeration plants, airconditioning units in buildings and plants used in the manufacture of drugs such as sulfonamide which inhibit the growth and multiplication of bacteria that require paminobenzoic acid (PABA) for the biosynthesis of folic acids, anti-malarials and vitamins 8 such as the B vitamins
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nicotinamide (niacinamide) and thiamine. Pulp and paper Mining and metallurgy Cleaning ammonium hydrogen sulfite, NH4HSO3, enables some hardwoods to be used used in nitriding (bright annealing) steel. used in zinc and nickel extraction. ammonia in solution is used as a cleaning agent such as in 'cloudy ammonia'
1.1Available technology
The major hydrogen production technologies for ammonia manufacture used in refineries are Steam Methane Reforming (SMR) and Thermal Partial Oxidation (POX). The other new develop technology is Auto Thermal Reforming (ATR). In Steam Methane Reforming (SMR), the hydrogen production for ammonia synthesis supply is accomplished via several steps: steam reforming, water gas shift, carbon dioxide removal and methanation. SMR plant use steam to react with methane in producing hydrogen. For Thermal Partial Oxidation (POX), methane or other hydrocarbon feedstock such oil is oxidized to produce hydrogen. The technology includes a partial oxidation reactor, water gas shift reactor and hydrogen purification equipments. Auto Thermal Reforming (ATR) combine best features of SMR and POX. In Auto Thermal Reforming (ATR), methane or liquid fuel feed is reacted with both steam and air to produce hydrogen rich gas. All of the technology reviewed are different in the initial stages of the primary feedstock commonly methane reaction to produce hydrogen. The technologies still incur the water gas shift reactors and hydrogen purification stages before the ammonia synthesis reaction. The main different is the capability of hydrogen production efficiency and the capital cost of initial stage of feedstock reaction. Below is the summarized comparison between the three (3) technologies:
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Table 22: Comparison between Steam Methane Reforming (SMR), Thermal Partial Oxidation (POX) and Auto Thermal Reforming (ATR).
Comparison
Steam methane reforming
Partial oxidation
Auto thermal reaction
Feedstock
Natural gas, light hydrocarbon, coal and steam.
Natural gas, liquid fuel, heavy oil and oxygen. Yes Yes No (hydrogen yield enhanced if use catalyst) 70-80%
Natural gas, liquid fuel and steam. No No Yes More than 85%
External heat needed[3] Indirect heat exchanger[3] Active catalyst Hydrogen production efficiency Estimated plant capital cost Advantages[3]
Yes Yes Yes Up to 85%
Moderate Heat can be recovered; flue gas to raise steam for reaction, purge gas as reformer burner for endothermic reforming reaction.
Highest Partial oxidation reactor less expensive than steam reformer vessel. Feedstock cheap; heavy oil available at low cost. Not sensitive to poisoning. Less energy efficient than SMR because higher temperature involved (excess heat loss, heat recovery problem), purge gas cannot fully recovered 10
Lowest All heat generated by POX is fully utilized to drive SMR reaction. Higher yield.
Disadvantages
Twice CO2 emission than hydrogen product.
Lower thermal efficiency than SMR. Poisoning of catalyst Catalyst sensitive
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Downstream and purification stages more expensive than SMR. Solution for low cost technology Low cost of natural gas prices. Capital cost lower with PSA design Other Low cost technology at purification stages Pure hydrogen feed Incorporate with oxygen plant rather using air Reduce size and reactor cost
to mixing of oxygen. Low cost of feedstock
Higher operating temperature.
Sources:1. Review of small stationary reformers for hydrogen production by Dr. Joan M.
Ogden Research scientist, Center for Energy and Environmental Studies,Princeton University, Princeton, NJ 08544. 2.Reforming and auto thermal reforming available at www.chrisgas.com and http://www.ics.trieste.it/media/139818/df6497.pdf 3. Mr. Ali Al-Sanadi Ammonia Sales Manager-QAFCO, Ammonia Outlook Supply/Deman & Trade of Suez and Oceania, 2008
1.2Product Market Survey

1.2.1Demand Ammonia, an essential feedstock for a wide range of downstream nitrogen based products, is one of the most common and voluminously produced in organic chemical worldwide. The largest share of ammonia is primarily used in the production and consumption of fertilizer, while industrial applications and others account for the remainder. Ammonia production increases at an annual growth rate of 2-3% with China leading global production and capacity surplus. Growth in ammonia production is directly related to the demand for phosphate and nitrogen fertilizers, as nearly 90% of ammonia and ammonium derivatives are applied in mineral fertilizer production worldwide IFA annual conference, (2011). The trio of China, United States and Morocco are considered as market leaders in the production of ammonium phosphate worldwide. International ammonia prices are highly dependent on natural gas prices, and move in tandem with the United States market, more precisely with natural gas prices in the United States.
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Figure 21: Ammonia Usage
The end-use market of ammonia, particularly fertilizers is undergoing significant changes with the emergence of new market such as biofuels and AdBlue abatement of NOx emission. There has been stupendous growth in biofuels production particularly bioethanol and biodiesel in recent years. AdBlue (Aqueous Urea Solution) is the other niche end-use market gaining prominence due to its capability in reduction of diesel/NOx emissions, a prime concern in the automobile industry. The need for complying with stringent environmental regulations drives demand for this urea solution. The market share of urea in ammonia-based fertilizer consumption was pegged at more than 50% in 2008, the largest in comparison to other nitrogen-based fertilizer. In term of end-use segments, fertilizers dominate the ammonia market demand, accounting for a major share. Carbamide or urea and Ammonium Phosphate are two significant fertilizer types holding sway over market. 1.2.2Climax R. Clarke (2011) the onset of worldwide financial crisis in 2008 and 2009 adversely affected the overall consumer purchasing power resulting in substantial decrease of fertilizer prices. The most noticeable price declines were for the MAP/DAP varieties, which fell by a huge 75% in 2009 as compared to 2008. Other fertilizers such as urea witnessed similar drop in prices. As a consequence of high inventory levels 12
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during the end of 2008, nitrogen and phosphate fertilizers declined, both in terms of volume and prices in 2009. Surplus supply of ammonia in market of North America and Europe also contributed to low prices during the year. Production in developed markets, such as United States and Europe, has been relatively flat over the past few years with rising natural gas prices leading to numerous plant closures. The market demand and prices for ammonia however entered a revival phase in the year 2010. Future growth in terms of expansion of production capacity will be powered mainly from developing markets. 1.2.3Ammonia Market Lengthen According to the International Fertilizer Industry Association (IFA), the world nitrogen market in 2009 recovered from a depressed demand conditions seen in 2008 in both the fertiliser and industrial sectors. World ammonia production in 2009 remained stable at 153m tonnes ammonia. Global ammonia trade fell 7.4% to an estimated 17.4m tonnes.
Figure 22: World Ammonia Demand
Global ammonia capacity was 152m tonne/year in 2009, with the main addition occurring in Chine, Trinidad, Indonesia, Oman, India and Egypt. The IFA noted that many projects that were slated for commissioning in 2009 have been delayed by six months or more. According to IFA 2010 world capacity survey, global ammonia capacity will increase by 20% to 224m tonne/year by 2014. The bulk of the growth will be in China, Middle East, Latin America and Africa. IFA estimated global seaborne ammonia availability will be close to 19m tonnes in 2014, a net increase of 17.4m tonnes over 2009. 13
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In terms of nitrogen supply, world capacity will reach 184m tonnes in 2014. IFA estimated global nitrogen supply from G.Wheeler, (2011), capability to grow from 134.8m tonnes in 2010 to 158.5m tonnes in 2014. For the period 2009 to 2014, consumption of nitrogen nutrient fertilizer is projected by the IFA to grow at 2.0% per year to 111.7m tonnes in 2014, compared to 103.9m tonnes in 2010. Nitrogen demand in the non-fertilizer sector is forecast to grow at 4.6% per year from 21.6mtonnes in 2009 to 26.6m tonnes in 2014. Taking into account distribution losses, IFA estimated global nitrogen demand will reach 142m tonnes in 2014. Demand for nitrogen fertilizers in China was soft in 2009 with ammonia production increasing at a moderate rate 3.8% compared to 2008 to 50.8m tonnes of ammonia. Much of the increase was related to higher urea and DAP output. In medium term, Chinas ammonia capacity is projected by the IFA to increase from 62m tonne per year in 2014. 1.2.4Import and Export
Figure 23: Ammonia World Import
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Figure 24: Ammonia World Export
The import and export of ammonia have fluctuated slightly over the last few years. In 2005, the amount of ammonia imported around the world was slightly around 18 million tonnes. In both 2006 and 2007, the amount of ammonia imported was slightly less than 20 million tonnes. These years reflect a 11% increase in the amount of ammonia imported compare to 2006. World exports of ammonia flat during the years following the change in domestic production and import from the abroad. Export in 2001 was approximately 15478 million tonnes, and in 2002, 16093 million tonnes were exported. Exports then increased to 2/3 of those reported in the previous years. In 2004, when domestic production dropped and imports increased, only 17325 million tonnes of ammonia were expected. 1.2.5European Market review
Figure 25: Ammonia Net Price per Quarter
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From the global strategic business report on market research, (2011), Ammonia prices in Europe were firm in the $390 per tonne in mid-November. Expectations of a normal seasonal decline were diminishing amid production problems at a Gorlovka in Ukraine which were impacting yuzhny availability and continued strong demand from United States, as some suppliers looked to keep systems from running empty. Despite bids from traders at lower levels there was little pressure for lower prices. Through December prices remained in the $390-$400 per tonne range as sentiment was still firm. Although production at Gorlovka restarted, demand, particularly from the United States, was sufficient to absorb the extra available. At the same time, production curtailments in Trinidad took any slack out of the market and supported prices. At the end of the year, the ammonia market was in a bullish mood. January business was reported at $400 per tonne and offers moved higher. Early in the New year, business was reported at $430 per tonne as limited supply and strong demand combined to push prices up. Deals quickly followed at a $450 per tonne and $460 per tonne as production problems in Trinidad and Algeria persisted, while in United States, European and North African demand remained strong. At mid-February, the short term prospects for ammonia prices remain strong. Demand from the United States and Europe is still strong and supply limited. Yuzhny prices have risen to $470 per tonne and could move higher with suppliers reporting bids from the traders at $480 per tonne. 1.2.6Asia Market Review The Asia-Pacific region reigns over the world market as the single largest and fastest growing Ammonia market, as stated by the new market research report. Growth and demand of Ammonia largely stems from China, where ammonia is finding increased application in NPK/NP production. Europe, driven by regions such as Russia, Ukraine, Croatia, Germany and other Eastern Europe countries is the second largest and fastest market for ammonia worldwide. India is ranked as the worlds third largest producer and importers of ammonia. Imports which are estimated at 1.9m tonnes in 2009 are used for phosphate fertilizers since domestic ammonia production is mostly integrated with urea production. Excluding
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any plant restarts, IFA expected Indias ammonia capacity to reach 20m tonne per year in 2014. Prices in the Asian as interpreted by G.Wheeler, (2011), ammonia market picked up momentum in the last couple of months of 2010, driven by the tight supply and healthy demand in the region. Robust conditions in the United States and Europe offered additional support to Asia pricing, and high numbers for other nitrogen products also helped buoy ammonia levels. Prices rose from $445-$475 per tonne in mid-November 2010 to $465-$500 per tonne in early February 2011. Ammonia values were anticipated to remain high throughout the first quarter of the year. A scheduled turnaround at an ammonia facility in Indonesia in December and a turnaround in Malaysia plant in February contract price in Tampa, together with climbing indications in Yuzhny and Middle East, offered additional support to ammonia values in Asia. 1.2.7Malaysia Market Review The petroleum and petrochemical industry covers natural gas, petroleum products and petrochemical. The industry is an important sector in Malaysia with investment totalling RM57.2 billion as at 2008. According to J.C Wu (U.S Geological Survey Minerals Yearbook), Malaysia has the worlds 14th largest natural gas reserves and 23rd largest crude oil reserves. In 2008, Malaysia produced 5,891 million standard cubic feet per day of natural gas. Malaysia also has the worlds largest production facility at a single location of liquefied natural gas with production capacity of 23 million metric tonne per year. The long term reliability and security of gas supply ensures the sustainable development of the countrys petrochemical industry. The existence of a trans-peninsular gas transmission pipeline system and six gas processing plants, has resulted in a ready supply of gas to the industry. Three major petrochemical zones have been established in Kerteh, Terengganu; Gebeng, Pahang; and Pasir Gudang/Tanjung Langsat, Johor. Each zone is an integrated complex with crackers, syngas and aromatics facilities to produce feedstocks for downstream products. Ammonia plant had built in Bintulu, Sarawak; Kerteh, Terengganu; and Gurun, Kedah. The production of ammonia in Malaysia keeps increasing from 2004 onwards. 17
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Figure 26: Malaysia Ammonia Production by Year
Malaysia produced ammonia and urea using natural gas as feedstock. ASEAN Bintulu Fertilizer Sdn. Bhd. (ABF) and PETRONAS Fertilizer (Kedah) Sdn. Bhd. (PFK) produced ammonia and granular urea, and PETRONAS Ammonia Sd. Bhd.(PA) produced only ammonia. Ammonia production capacity (in nitrogen content) of ABF in Bintulu was 395,000 tonnes per year while PFK in Gurun, 378,000 tonnes per year and PA in Kerteh, produced 378,000 tonne per year. In 2003, Malaysia produced 909,500 tonnes of ammonia (in nitrogen content), of which 578,800 tonnes was delivered to the home market and 340,900 tonnes was exported to overseas market. The usage of ammonia in Malaysia mostly contributes to agriculture sector. Ammonia is used as fertilizer in agriculture sector mainly, such developed states currently focused on agriculture sectors including Pahang, Kedah, Perlis, Perak, Sabah and Sarawak. For example, the agriculture focus on Pahang is to develop and promote pineapple growing and integration into oil palm plantations in Rompin, fruit agriculture park in Lanchang, vegetables growing as well as Neclues Cattle Breeding & Research Centre in Muadzam Shah. Besides, northern states also rich with paddies, vegetables as well as grapes ville.
1.3Site Study
1.3.1Introduction To build a plant, we need to review all the current available and proposed the most suitable site. Many theories describing plant location have been proposed by the economics. The location of the plant can have a crucial effect on the profitability of the 18
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project and the scope for future expansion and also is crucial to ensure availability of the raw materials and the interconnection of the feedstock provider. Therefore, a suitable site must be chosen as well as environment analysis need to be performed to ascertain the expected effect of the plant and the chemicals on the surrounding area. A proper screening process of all the sites based on our criteria of selection need to be done systematically. 1.3.2Criteria in Selection of Plant Site In selecting the most suitable site for manufacturing which is ammonia, we have taken into consideration a number of criteria that is vital in ensuring the success of the plant. These are: 1. Raw material supplier To minimize the transportation cost of the raw material, a closer source of the raw material to the operating plant is needed. If the needed raw material is to be imported, it would be important to consider a location to a seaport with excellent infrastructure. 2. Transportation facilities The plant should be located near to an at least three forms of major transportation facilities, which are road network, seaport and airport. These will help facilities ant import and export activities. Seaport facilities will help in the exportation and importation of the product and raw materials via tankers while the availability of airport is convenient for the movement of personnel and essential equipment suppliers. 3. Land prices Most of the industrial land price depends on the location. It is very important to choose an economical land price which can reduce the total investment cost. Besides that, it is important to choose the lowest land price when starting a new plant to gain the highest economic value. 4. Availability of utilities, water, fuel and power In petrochemical industries, large quantities of water supply are usually needed for cooling and general use in a chemical plant. Besides that, petrochemical plants need power in the form of electricity to run machines and equipments. 19
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Thus it is important to have sufficient power and local supply in order to ensure the plant running smoothly. 5. Regulatory laws and waste disposal Site selected should have efficient and satisfactory disposal system for factory waste and industrial effluent if it is decided that the waste should be treated offsite. 6. Taxes and government incentive Most state governments offer attractive incentives to investors. Some incentives grant partial or total relief from income tax payment for a specified period, while indirect tax incentives come in the form of exemptions from import duty, sales tax and excise duty. This can help reducing initial operating cost. 7. Availability of low cost labour and services Plant should be located where sufficient labour supply is available. Skilled construction worker will usually be brought in from outside local area but there should be an adequate pool unskilled workers available locally and workers suitable for training to operate the plant. Available, inexpensive manpower from the surrounding area will contribute in reducing the cost of operations. 1.1.1Proposed location The proposed plant had to be reconsidered all the criteria as stated. Several locations have been identified, which are: 1. Gebeng (Phase IV) Industrial Estates, Kuantan, Pahang Gebeng Industrial Estates is promoted by the Pahang State Development Corporation (PSDC) as an industrial predecessor in the East Asian region for petrochemical and chemical based plants. The federal governments move to develop the eastern industrial corridor ensures beneficial and rapid progression for the industrial growth of Gebeng estate. According to Kuantan Port Consortium (2007), the first and second phase category, comprises about 900 hectares. A third phase, spanning some 1600 hectares, has attracted mega industrial from multinational companies, namely from US, Japan, Germany and Belgium. Kuantan proximity to Malaysias oil and gas fields make it logical choice for petrochemical industry growth. 20
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2. Pasir Gudang, Industrial Estate, Johor Pasir Gudang, Industrial Estate is located 36 km from Johor Bharu. The type of industry develop in Pasir Gudang is light, medium and heavy industry. Johor Port is about 5 km from Pasir Gudang, and this will enable easier import and export processes. Good infrastructure facilities are also available here, such as NorthSouth highway to Kuala Lumpur and the main road to Singapore. Railroads are also available here. The line ruins from northern terminal in Butterworth to Singapore and Pasir Gudang in the south. 3. Kerteh Industrial Estate, Terengganu Kerteh Integrated Petrochemical Complex, Terengganu located at the south of Terengganu, is developed by PETRONAS. Plants can be sited within the vicinity of raw materials thus saving in production cost. Availability of cheap industrial land and supply of relatively productive and adaptable labour from a young and literate population give merit to the location. Special incentives are offered such as cheaper land and lower quit rent and assessment rates. Terengganu is also home of the Malaysia deepest port versioned to be new gateway to the Asia Pacific.
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Table 23: Summary of Site Characteristics
Selection Criteria Location Type of Industry Area available Land price (per feet2) Raw Material Supplier Power Supply
Kerteh Industrial Estate 5 km from Paka Chemical, petrochemical, other 500 hectares RM 15-20 PETRONAS Gas Berhad Tasik Kenyir Hydroelectric Dum Paka Power Plant (900 MW) CUF Kerteh
Gebeng Industrial Estate 30 km from Kuantan City Chemical, petrochemical, other 1557.2 hectares RM 7-14 PETRONAS Gas Berhad Tanjung Gelang TNB CUF Gebeng
Pasir Gudang Industrial Estate 36 km from Johor Bharu Light, Medium and Heavy 430 hectares RM 17-25 PETRONAS Gas Berhad Sultan Iskandar Power Station (644MW) IPP YTL Power Generation Sdn. Bhd. Loji Air Sungai Layang Syarikat Air Johor Loji Air Sungai Buluh Pasir Gudang Port Senai International Airport, Johor Changi International Singapore Airport,
Water Supply
Bukit Sah Sungai Cherol CUF Gebeng
Loji Air Semambu CUF Gebeng Kuantan Port Kemaman Port Sultan Mahmud Airport
Port Facilities Airport
Kerteh Port Kuala Terengganu Port Kerteh Airport Sultan Mahmud Airport
Roadways Railway Facilities
Kuala Terengganu -Kuantan Karak Highway Kuantan Kerteh Railway
Kuala Terengganu Kuantan Karak Highway Kuantan Kerteh Railway 23
Main road to Singapore North South Highway Singapore and North Peninsular
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Malaysia Railway Incentive Infrastructure allowance Infrastructure allowance Incentive for exports for for research tariff Five years exemption on import Five years exemption on import Incentive duty duty development 5% discount on monthly electrical 5% discount on monthly electrical Incentives bills for first 2 years bills protection
training
25-38% exemption on daily water 85% tax exemption on gross profit Exemption from import duty on cost for 4545 m3 of water direct raw materials/components Pioneer Status and Investment Pioneer Status and Investment Pioneer Status and Investment Tax Allowance and Reinvestment Tax Allowance and Reinvestment Tax Allowance and Reinvestment Allowance Allowance Allowance Incentive for high tech industries Waste water management Kualiti Alam Sdn. Bhd. Indah Water Konsortium Incentive for high tech industries Kualiti Alam Sdn. Bhd. Indah Water Konsortium Incentive for high tech industries Kualiti Alam Sdn. Bhd.
Sources: 1. Invest in Pahang, (2010). Retrieved March 2011, at http://www.investinpahang.gov.my/index.php?

ch=en_investinpahang&pg=en_industrialareas&ac=9. 2. Lembaga Pelabuhan Johor, (2011). Retrieved March 2011, at http://www.lpj.gov.my/.3. Land for sale Pahang, (2011). Retrieved March 2011, at http://www.mudah.my/Gebeng+Sg+Karang-6145773.htm. 4. Property Listing, iProperty, (2011). Retrieved March 2011, at http://www.iproperty.com.my/propertylisting/486107/Kerteh_Industrial_Land_ForSale. 5. Property Listing, iProperty, (2011). Retrieved March 2011, athttp://www.iproperty.com.my/propertylisting/506304/Pasir_Gudang_Industrial_Land_ForSale.
Table 24: Weight marks and explanation on the plant site location factors
Factors Supply of raw material
5-4 Marks
3-2 Marks
1-0 Marks Unable to obtain raw material from close sources with the distance exceeding 80km Forced to import from foreign countries
Able to obtain large supply locally thus saving on import cost Having long pipeline networks for the transportation of raw 24
Source of raw materials from neighbouring states or countries with the distance not exceeding 80km Uses pipeline system as well.
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Price and area of land Government Incentives
Transportation
materials. Land area exceeding 60 hectares Price of land is considerable Incentives from the Local Organization of Country Development Incentive from special companies Complete network and well maintained highway, expressways and roads. International airport facilities access to the main location around the world Well provided utilities supply Efficient waste management
Land area below 60 hectares Price of land is moderate
Uses pipeline as well Land area below 40 hectares Price is expensive No incentives from the Local Organization of Country Development Average road system No highway or expressway system in close proximity No railway system Very distance from port or harbours Distance from nearest airport more than 100km away Least provided utilities Satisfactory waste management
Incentives from the Local Organization of Country Development Good federal road and highway system Limited railway system access More distant from port Airport only provides domestic flight. Moderate provided utilities. Moderate waste management
Utilities
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PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY Table 25: Weighted Evaluation on Potential Sites
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Site Consideration Availability of land Price of land Close proximity to port Supply of raw material Utilities provider Transportation Waste water disposable Workers supply Numerous telecommunication system network Conductive living conditions Weather TOTAL
Weight 20 30 15 25 20 20 15 20 10 15 10 200
Kerteh 4 3 4 4 4 4 4 4 4 3 4 755 3.775
Gebeng 4 4 4 4 4 4 4 4 4 3 4 785 3.925
Pasir Gudang 3 2 4 2 3 5 4 4 5 4 4 680 3.4
1.1.1Conclusion Remark Based on matrix comparison made, Gebeng Industrial Estate, Pahang has been chosen as the site for ammonia plant. The location of Gebeng Industrial Estate is highly strategic compared to others where the reason is focused on the cheap land price, close to port as well as has good and complete network and well maintained highway, expressway and roads. Also near the raw material supplier, PETRONAS Gas Berhad contributes to low cost of operating system. With good pipeline connection between Gebeng Kuantan and Kerteh, the transportation of raw material had been eased. In addition, a centralized Utility Facilities (CUF) is also offering its services to plant owner in Gebeng to provide the supply of electricity, industrial gases and utilities such as steam and pre-treated water.
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1.1Previous Plant accident

1.1.1Accident 1 One person died and nearly a dozen were injured in a freak accident at an ammonia manufacturing plant at Vatva GIDC on Sunday. The mishap occurred when a vessel emitting ammonia gas burst, damaging the factory premises. R K Industries produces petro-nitroaniline, a by-product of ammonia. The factory is based in Phase IV of Vatva GIDC and is run by Karshan Patel, an Ahmedabad based chemical trader. Nearly 25 to 30 workers were present in the factory at the time of the accident. Two workers, Ramesh Zala and Kishan Bhandari, were buried in the debris. The injured were later shifted to LG Hospital where their condition is reported to be critical. Investigating Officer Inspector G R Gadhvi said it was a major blast and fragments of the vessel were found even half a kilometre away. The blast took place in a 15foot high vessel emitting ammonia gas. A rise in temperature led to pressure build-up inside the vessel. The explosion also damaged the cement shades and walls of the factory, he said.
(Resource: Indian Express.com, Monday, April 12, 2010) Link: http://www.indianexpress.com/news/blast-at-vatva-ammonia-plant-kills-one/604942/
1.1.2Accident 2 Nangal, March 20, three persons were killed and one sustained serious burns in a blast at the ammonia plant of National Fertilisers Limited here today. The Ropar Deputy Commissioner has ordered a magisterial inquiry into the accident. The incidence took place at around 11:40 am, when an explosion reverberated in the factory premises due to bursting of a boiler. Three people, including two engineers and a labour, died on the spot. Eyewitnesses said the impact of explosion and pressure of the gas was so great that the victims were thrown high in the air. Glass of the control room was shattered into pieces.The NFL authorities have banned the entry of outsiders, including the cops, and declared emergency in the plant.
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A spokesperson for the company said the explosion occurred in the shift conversion section of the plant. The saturator tower fell and some pipelines were found detached, he stated. The ammonia plant and other allied plants on the factory premises were immediately shut down. Total system was isolated and depressurised. The authorities have refused to divulge details of the damage. The deceased have been identified as mechanical manager Deepak Chhabra (47), shift engineer (production) Mahinder Anand (52) and Jarnail Singh (49). Deepak is survived by wife Neeru Chhabra and two children while Mahinder is survived by wife Saroj Anand, two daughters and a son. Engineer Umesh Kumar suffered 50 per cent burns while trying to help in rescue operations. He has been referred to Dayanand Medical College and Hospital, Ludhiana. Deputy Commissioner Priyank Bharti reached spot after 1 pm and ordered Nangal SDM Lakhmir Singh to conduct an inquiry. Lakhmir Singh said preliminary inquiry would be submitted by tomorrow after taking the statements. Detailed technical inquiry would take some time.
(Resource: The Tribune Online Edition, Sunday March 21, 2010) Link: http://www.tribuneindia.com/2010/20100321/main3.htm
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2 CHAPTER 3 CONCEPTUAL PROCESS DESIGN AND SYNTHESIS

2.1General Process Description
2.1.1The reactions and reactions conditions
The reaction above shows the heart of the reaction of producing ammonia (NH3). The reaction is reversible, telling us that only part of the hydrogen and nitrogen is converted into ammonia. The reaction is exothermic (H= - 46kJmol-1) at 298K and it is favoured by high pressure and low temperature. From production of ammonia, EFMA, (2000), the ammonia synthesis pressure is usually in the range of 100-250 bars. The temperature for the synthesis is from 350-550 (high temperature), but considering the reaction rate as lower temperature would contribute to slower reaction and high yield is important for the industry. Iron catalyst was used in the processed. Again, the reaction above is referred. The synthesis of ammonia needs two main raw materials which are the nitrogen (g) and hydrogen (g). The nitrogen can be easily got from the processed air; hydrogen however, is very expensive. After doing some literature research on the topic on how to produce hydrogen, 6 possible ways of producing hydrogen managed to be found. They are: 1. Steam methane reforming 2. Partial oxidation of heavy oil or vacuum residue 3. Coke gasification of coal 4. Electrolysis of water 5. Biomass 6. Autothermal reformer The methods found were analysed and the best and the most economical and practical method was chosen. 29
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Figure 31: Comparison between natural gas reforming, heavy oil and coal gasification in Europe
Although the comparison was made in Europe, the figure used which is in term of ratio is a help to rationalize everything. From Figure 31, it can be seen that natural gas reforming is the simplest and the most effective way of producing hydrogen for ammonia synthesis. Electrolysis, it is undeniable fact that electrolysis of water has a very huge potential in producing hydrogen, however, this process is very expensive and the effectiveness is dependent on cells total reversible reduction potential. Thus, this method is not really effective and economical. Biomass however, is not suitable due to the problem with the raw material. Since a lot of raw materials will be needed for the process. Autothermal reformer (ATR) is the latest technology nowadays which is elegant for its energy saving and, for a very high ammonia plant capacity, ATR can be the best answer.
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Steam methane reforming in Ammonia production
Figure 32: Block diagram of the steam/ air reforming process [1]
Feedstock desulphurization
Sulphur compound is poisonous to most of the catalyst used in the process. The feed gas is preheated to 350-400C, usually in the primary reformer convection sector, and then treated in a desulphurization vessel, where the sulphur compounds are hydrogenated to H2S, typically using a cobalt molybdenum catalyst, and then 31
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adsorbed on pelletized zinc oxide. Zinc sulphide remains in the adsorption bed. The hydrogen is usually recycled from the synthesis section (production of ammonia, EFMA,(2000)). Primary reforming The gas from the desulphurizer is mixed with process steam, usually coming from an extraction turbine, and the steam/gas mixture is then heated further to 500600C in the convention section before entering the primary reformer. In some new revamped plants the preheated steam/gas mixture is passed through an adiabatic prereformer and reheated in the convection section, before entering the primary reformer. (Special pre-reformer catalysts are offered by several suppliers). Also, in some plants, part of the process steam is supplied by feed-gas saturation. The amount of process steam is given by the process steam to carbon molar ratio (S/C ratio), which should be around 3.0 for the best reforming processes. The optimum ratio depends on several factors, such as feedstock quality, purge gas recovery, primary reformer capacity, shift operation, and the plant steam balance. In new plants the optimum S/C-ratio may be lower than 3.0. The primary reformer consists of a large number of highnickel chromium alloy tubes filled with nickel-containing reforming catalyst. The overall reaction is highly endothermic and additional heat is required to raise the temperature to 780830C at the reformer outlet section (production of ammonia, EFMA,(2000))
The heat for the primary reforming process is supplied by burning natural gas or other gaseous fuel, in the burners of a radiant box containing the tubes. The fluegas leaving the radiant box has temperatures in excess of 900C, after supplying the necessary high level heat to the reforming process. Thus only about 50-60% of the fuels heat value is directly used in the process itself. The heat content (waste heat) of the flue-gas is used in the reformer convection section, for various process and steam system duties. The fuel energy requirement in the conventional reforming process is 40-50% of the process feed gas energy section (production of ammonia, EFMA,(2000)). 32
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The flue-gas leaving the convection section at 100-200C is one of the main sources of emissions from the plant. These emissions are mainly CO2, NOx, with small amounts of SO2and CO section (production of ammonia, EFMA,(2000)). Secondary reforming Only 30-50% of the hydrocarbon feed is reformed in the primary reformer because of the chemical equilibria at the actual operating conditions. The temperature must be raised to increase the conversion. This is done in the secondary reformer by internal combustion of part of the gas with the process air, which also provides the nitrogen for the final synthesis gas. In the conventional reforming process the degree of primary reforming is adjusted so that the air supplied to the secondary reformer meets both the heat balance and the stoichiometric synthesis gas requirement. The process air is compressed to the reforming pressure and heated further in the primary reformer convection section to around 600C. The process gas is mixed with the air in a burner and then passed over a nickel-containing secondary reformer catalyst. The reformer outlet temperature is around 1,000C, and up to 99% of the hydrocarbon feed (to the primary reformer) is converted, giving a residual methane content of 0.2-0.3% (dry gas base) in the process gas leaving the secondary reformer. The process gas is cooled to 350-400C in a waste heat steam boiler or boiler/superheated downstream from the secondary reformer section (production of ammonia, EFMA,(2000)). Shift conversion
In the High Temperature Shift (HTS) conversion, the gas is passed through a bed of iron oxide/chromium oxide catalyst at around 400C, where the CO content is reduced to about 3% (dry gas base), limited by the shift equilibrium at the actual operating temperature. There is a tendency to use copper containing catalyst for increased conversion. The gas from the HTS is cooled and passed through the Low Temperature Shift (LTS) converter. This LTS converter is filled with a copper oxide/zinc oxide-based catalyst and operates at about 200-220C. The residual CO content in the converted gas is about 0.2-0.4% (dry gas base). A low residual CO 33
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content is important for the efficiency of the process section (production of ammonia, EFMA,(2000)). CO2 removal The CO2 is removed in a chemical or a physical absorption process. The solvents used in chemical absorption processes are mainly aqueous amine solutions (Mono Ethanolamine (MEA), Activated Methyl Diethanolamine (aMDEA) or hot potassium carbonate solutions. Physical solvents are glycol dimethylethers (Selexol), propylene carbonate and others. The MEA process has high regeneration energy consumption and is not regarded as the best process. For new ammonia plants the following CO2 removal processes are currently regarded as best technique:1. aMDEA standard 2-stage process, or similar 2. Benfield process (HiPure, LoHeat), or similar 3. Selexol or similar physical absorption processes After making literature research regarding the topic, it is observed that aMDEA for CO2 removal is the best. The benefits of the usage of a-MDEA are: 1 2 3 4 5 high CO2 purity minimum H2 loss no corrosion low energy requirement low capital investment
Methanation
The small amounts of CO and CO2, remaining in the synthesis gas, are poisonous for the ammonia synthesis catalyst and must be removed by conversion to CH4 in the methanator section (production of ammonia, EFMA,(2000)).
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The reactions take place at around 300C in a reactor filled with a nickel containing catalyst. Methane is an inert gas in the synthesis reaction, but the water must be removed before entering the converter. This is done firstly by cooling and condensation downstream of the methanator and finally by condensation/absorption in the product ammonia in the loop or in a make-up gas drying unit section (production of ammonia, EFMA,(2000)). The next step will be the ammonia synthesis which is already been discussed in the beginning.
1.1Preliminary Reactor Optimization using - Hierarchical Decomposition Method (Douglas Method)

In performing the design process, Douglas method is chosen to be used. Douglas method can be further divided into some hierarchical decisions which are: 1. Level 1: Batch or continuous 2. Level 2: Input-output structure of the flowsheet 3. Level 3: Recycle structure of the flowsheet Decision 1: Reactor performance Decision 2: Operating conditions of the reactor, (1) concentration, (2) temperature, (3) pressure, (4) phase, (5) catalyst Decision 3: configuration of the reactor, reactor volume (capacity of reactor in terms of input and output flow rates, orientation, and configuration) 1. Level 4: General structure of the separation system 2. Level 5: Heat Exchanger Network
1.1Batch versus Continuous

Continuous processes are designed so that every unit will operate 24 hr/day, 7 days/week for close to a year at almost constant conditions before the plant is shut down for maintenance. While, batch processes normally contain several unit (in some cases the entire unit) that are designed to be started and stopped frequently. During a normal batch operating cycle, the various units are filled with material, perform their desired function for a specified period, are shut down and drained before the cycle is repeated. (Douglas, 1988) 35
PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY Table 31: Criteria of selecting the process type
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Criteria Production rates
Market forces
Continuous process For plant having a For plants having a capacity of less capacity of greater than 453.5924 than 4535.924 6 tonnes/yr or 1x10 tonnes/yr or 10x106 lb/yr lb/yr For products with a For yearly, seasonal demand. continuous production.
Batch process
Decision Continuous process is chosen because the ammonia plant designed to be built is 678, 810 tonnes/yr. Continuous process is decided because the production of is throughout the year based on 7920 operating hours per year or 330 days per year Continuous process because no slurry materials are involved in ammonia production.
Operational problems / Scale up problems
For slow reaction. For fast reaction. Good when dealing with slurry
Therefore, based on the analysis which is simplified in the table above, continuous process was selected for the ammonia plant that is going to be built with a capacity of 671,200 tonnes per year or 2034 tonnes per day.
1.2Input-Output Structure of the Flowsheet
Figure 33: General input-output structure of ammonia plant excluding the inner loop
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Figure 34: Complete input-output structure of ammonia plant
Figure 33 and Figure 34 shows the input output structure of the ammonia plant. Figure 33 described the process as a whole where there only the ultimate inputs and output are shown while Figure 34 shows the complete input output structure showing eight stages in the process. 1.2.1Number of product streams In order to determine the number of product streams that will leave the process, we need to list all the components that are expected to leave the plant. The components which are expected to leave the reactor are listed in Table 32
Table 32: Components expected to leave the reactor
Component NH3/Ammonia CO2 Water N2 H2 CH4
Boiling point -77.8C -56.6C 100C 30C -253C -182.5C 37
Destination code Primary product Valuable by product Waste water treatment Recycle and purge Recycle and purge Recycle and purge
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With reference to the supplier, the natural gas composition which will use as the raw material is below:
Table 33: Natural gas composition
Source: PETRONAS Gas Sdn. Bhd. Kerteh Terengganu.vWith reference to Zulkifli Abdul Majid, Zulkefli Yaacob, Yasmin binti Ahmad Khan, The Use of Natural Gas as a Fuel. Available at: http://eprints.utm.my/4056/1/4ASTC2002_Kertas_Kerja.pdf
Table 34: Summary of decision in level 2-Input-output structure of flowsheet
Criteria Is it necessary to purify the feed stream? Do we need to remove/recycle reversible by product? Do we need a purge stream? Should we recover and recycle some material? What are the design
Decision No No
Justification The natural gas contains NO sulphur and mercury There is NO by-products formed during ammonia synthesis
Yes
Purging is very important in order to avoid build-up in the reactor
Yes
Recycling the reactants, especially hydrogen will be very economical
Reactor conversion, optimized nitrogen: hydrogen ratio, 38
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variables?
operating pressure, operating temperature, type of catalyst used.
1.3Reactor designed and recycle structure of the flowsheet

1.3.1Reactor design From section Batch versus Continuous, it is known that continuous system will be used in the process. Table 35 shows the comparisons between CSTR and PFR. Looking into this matter considering that the ammonia production process contains catalytic stages, a plug flow reactor packed with catalyst will be chosen for the process. It is known as packed bed reactor (PBR). Therefore, it can be said that CSTR is unsuitable for this process.
Table 35: Comparisons between CSTR and PFR
CSTR
PFR
Run at steady state with continuous flow of reactants and products; the feed assumes a uniform composition throughout the reactor, exit stream has the same composition as in the tank Primarily used for: Liquid phase reaction Steady state operation
Arranged as one long reactor or many short reactors in a tube bank ; no radial variation in reaction rate (concentration); concentration changes with length down the reactor Primarily used for: Liquid Gas Slurry
A typical plug flow reactor could be a tube packed with some solid material 39
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(frequently a catalyst). Typically these types of reactors are called packed bed reactors or PBR's When agitation is required Series configurations for different concentration streams Continuous production Large Scale Fast Reactions Homogeneous and heterogeneous reactions Continuous Production High Temperature High volumetric unit conversion Run for a long period of time without maintenance Continuous Operation Heat transfer can be optimized by using more thinner tubes Residence time is the same for all the reactants Perfectly mixed in the radial direction Undesired thermal gradients may exist High temperature are hard to control Shutdown and cleaning may be expensive.
Continuous operation: feed and product run takeoff are both continuous Uniform temperature throughout the reactor because of perfect mixing Easily adapts to two phase runs Simplicity of construction Low operating (labour) cost Easy to clean
Lowest conversion per unit volume because the feed is diluted by the product when the it reach the tank By-passing and channelling possible with poor agitation The residence time cannot be controlled because the reactant can come and leave instantly.
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Table 36: Practical reactor to be used for ammonia plant TYPE OF REACTOR CHARACTERISTICS The solid catalyst pellets are held in place and do not move with respect to a fixed reference frame Most frequently used as continuous tubular reactors Kinds of Phases Present Gas phase/ solid catalyzed Gas-solid reactions USES Used primarily in heterogeneous gas phase reactions with a catalyst ADVANTAGES High conversion per unit mass of catalyst Low operating cost Continuous operation Efficient contacting of the reactants and catalyst because the tube in the fixed bed is packed with solid catalyst DISADVANTAGES Temperature control is difficult due to variation of heat load through the bed In exothermic reaction, hot spots can cause onset of undesired reactions or catalyst degradation Channelling may occur Extremely shortcircuiting and bypass Not good for small particle of catalyst because of high pressure drop and plugging Attrition of the catalyst can cause the generation of catalyst fines Increased reactor vessel size High cost of the reactor Erosion of internal components, thus required expensive maintenance and upkeep for reactor vessel and pipes
FIXED-BED CATALYTIC REACTOR
FLUIDIZEDBED CATALYTIC REACTOR
Solid material in the form of fine particles is held in suspension by the upward flow of the reacting fluid A fluid is passed through a granular solid material (catalyst) at high enough velocity to suspend the solid and cause it to behave as though as it was a fluid
Multiphase chemical reactions Gas-solid phase reaction that requires large interfacial surface to react Catalytic cracking of petroleum naphtha to form gasoline
Prevents the formation of hot spots due to uniform temperature gradient High heat transfer rate Catalysts can be removed, regenerated, and recycled back to the bed Good for fast reactions in which pore and diffusion may influence the rate. Can handle large amounts of feed and solid Uniform particle mixing Ability to operate reactor in continuous state
41
PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY MOVING-BED CATALYTIC REACTOR Catalyst is kept in motion by the feed to the reactor and the product The force of gravity is used to shift the catalyst from top to bottom Operate adiabatically especially when endothermic reactions are involved
FYDP GROUP 17 Fluid (gas) phase Single-phase flow Possible to remove the catalyst continuously for regeneration Possible to use for cases with rapid deactivation of catalyst is encounter Suitable for short-active life catalyst Can avoid stagnant zones in the bed Can obtain high conversion rates under good conditions of selectivity Temperature control is poor Attrition of the catalyst can cause the generation of catalyst fines
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1.1.1Reaction Conditions For ammonia production, there more than one reaction occurs in the process. However, ammonia synthesis is the most critical part in ammonia plant where the process is a reversible process with a conventional conversion of 20-30%. Knowing that knowledge of the macrokinetics is important for solving the industrial problem of designing ammonia synthesis reactors, the optimal operating conditions for computer control of ammonia plant must be determined.. Some of the considerations are: Effect of pressure on the reaction rate
Figure 35: Reaction rate for ammonia synthesis dependence on the ammonia concentration at various pressures
According to G. R Maxwell (2004), high pressure promotes a high rate of ammonia formation. This is based on Le Chateliers principle that says a reaction 43
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that reduces the number of moles of gas (in this case from four moles of reactants to two moles of ammonia) will be favoured by an increase in pressure. From the figure, it can be seen at ratio of 3:1 of hydrogen to nitrogen, higher pressure will give higher reaction rate. Thus, sufficiently high pressure would give better reaction rate. However, higher pressure would result to higher operating cost due to the duty of the compressor. Thus, an optimum pressure must be chosen. Effect of Temperature to Reaction Rate
Figure 36: Reaction rate for ammonia synthesis dependence on the ammonia concentration at various temperatures
Referring to G. R Maxwell (2004) the rate of formation initially increases with rising temperature but then goes through a maximum as the system approaches thermodynamic equilibrium (see Figure 36). From here, it can be seen there is a limit to increase the temperature so that the reaction rate will be sufficiently high for 44
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the process. Thus, here, it can be said that there is a limit for the temperature to be increased. However, too low temperature will lower the rate of reaction. Hence, the temperature must be optimized in order to get better rate of reaction.
Figure 37: Ammonia synthesis rate constant dependence on hydrogen: nitrogen ratio
The figure above shows that ammonia synthesis rate constant is dependent on hydrogen: nitrogen ratio. It can be seen that for 1:1 ratio, at lower temperature the rate constant is much higher however at higher temperature the rate constant decreases. It is known that, for the ammonia production process, the temperature must be sufficiently high so that the rate of reaction will be higher. For 3:1 ratio, it can be seen that the rate of reaction increases as the temperature increases. Hence, it can be concluded that 3:1 hydrogen nitrogen ratio better for ammonia production process. 45
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All the data above is from a commercial iron catalyst Haldor Topse KMIR. The data shows a sharp drop in reaction rate with declining temperature at a 3:1 ratio in contrast to a 1:1 ratio. This may be attributed to a hindering effect by absorbed hydrogen at low temperature
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1.1.2Catalysts
Table 37: Catalysts used in the catalytic stages in ammonia production process
Process stage Purification
Optimum condition 350C-400C
Catalyst Cobalt molybdenum (CoMo)
Efficiency 99%
Pre-reforming Primary reforming Secondary reforming High temperature shift
750C-950C 700C-800C >750C 330C -360C
Alumina supported 99% high Ni Nickel Nickel 25% Nickel Nickel 15% Iron-chromium Combination and at on of LTS 92% LTS (90-95% magnetite HTS iron oxide, 5-10% allow chromia, Cr2O3) of CO oxide; 99 oxide; 40-80%
conversion
Low temperature shift
200C -300C
CuO the Al2O3.
(15-30%), based balance is 99% 20.7
ZnO (30-60%) and reactor outlet
Methanation Ammonia synthesis
320C 300C
Nickel oxide Iron oxide
Sources: 1.G R. Maxwell (2004). Synthetic Nitrogen Products, A Practical Guide to the
Products and Process. DuPont Chemical Solutions Enterprise, Memphis, Tennessee 2. Mr. Kenneth Windridge (1998), Mineral Fertilizer Production and the Environment part 1, International Fertilizer Industry Association. 3. Ram B. Gupta (2009), Hydrogen Fuel Production, Transport and Storage, CRC Press
The pre reforming stage is basically for the conversion of higher hydrocarbon into methane. This stage is really preferable if the feedstock contain higher
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hydrocarbon. The conversion is expected to be higher since the feedstock contains less than 7% percentage of higher hydrocarbon. The reforming consists of 2 stages which are primary and secondary. The primary reforming efficiency is contains of higher percentage of nickel component as the catalyst compared to the second stage. The second stage is basically to increase the conversion of methane up to 99%. The Water Gas Shift (WGS) is commonly consists of 2 stage of high temperature and low temperature. The combination of high temperature and low temperature of WGS reactor allow converting 92% of the CO in the reformate gas into H2 and lowering the CO2 content to about 0.1 vol%. Before entering the methanation stage, the CO and CO2 is reduced to below 100ppm in the CO2 removal stage. This small value can be assumed total conversion to methane in the methanation stage. Thus, in this level, it is decided that fixed bed catalytic reactor will be used as the reactor for ammonia synthesis 1.1.3Recycle structure
Figure 38: Recycle structure of the flowsheet
The unreacted reactants will be recycled back to the reactor via syngas compressor. The recycle structure can be seen in the figure above. Some of the unreacted gases will be purged in order to avoid build up in the reactor. 48
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1.2Process Screening or Separation system synthesis

1.2.1General structure of the separation system In order to determine the general structure of the separation system, the phase of the reactor effluent streams must be considered. In the ammonia production plant, there are two possibilities: 1. Reactor effluent is liquid. In order to recover ammonia, the ammonia, the unreacted hydrogen and nitrogen and methane need to be separated. At first, ammonia will be removed from the gaseous mixture by having a counter current absorption column using water, producing ammonia aqueous as the bottom product. Later on, the ammonia will be separated from water using distillation column. 2. Reactor effluent is all vapour. There are three cases where the reactor effluent is all vapour. The first case is during carbon dioxide removal, the second one is the water removal and the last one is during ammonia removal which is already been discussed above. 1.1.1Vapour recovery system With an aim to attempt synthesizing a vapour recovery system, two decisions must be made What is the best location? What type of vapour system is cheapest?
Location of vapour recovery system According to Douglas , there are for the location of the vapour recovery system: 1. The purge stream 2. The gas-recycle stream 3. The flash vapour stream 4. None Vapour recovery system on the purge, will be installed to recover hydrogen to avoid significant loss of it in the purge.
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Type of vapour recovery system In accordance to Douglas, the most common choices of vapour recovery system (with current technology) are: 1. Condensation high pressure or low temperature, or both 2. Absorption 3. Adsorption 4. Membrane separation process 5. Reaction systems Strategy Vapour recovery system need to be designed before considering liquid separation system because each of the vapour recovery processes usually generates a liquid stream that must be further purified. In the project, ammonia separation is done by absorption of ammonia using water producing ammonia aqueous and then separation of ammonia from ammonia aqueous using distillation process.
Figure 39: Separation system recycle loop after ammonia synthesis
Figure 39 shows the separation system for ammonia recovery unit and hydrogen recovery unit. For hydrogen recovery unit, it is very crucial to set up it in order to maintain 3:1 hydrogen, nitrogen ratio in the ammonia converter.
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1.1.1Liquid separation system In our case, the liquid separation unit is only exists for ammonia separation whereas the ammonia aqueous needs to be separated to produce ammonia. In the process, distillation column was used to separate ammonia from ammonia aqueous. Separation structure of ammonia aqueous to produce ammonia can be seen in Figure 39. 1.1.2Carbon Dioxide removal
Figure 310: Carbon dioxide absorber unit
The method used for separating carbon dioxide from the stream gas is absorption by using aMDEA (activated methyldiethylamine) solution. In the carbon dioxide removal, the feed contain of hydrogen, nitrogen, carbon dioxide, carbon monoxide and argon. The feed gas then entering absorber which already load with lean solution of aMDEA. The aMDEA solutions will absorb carbon dioxide components and leaving at the bottom of the absorber as a rich solution of carbon dioxide. The product gas leaving contains a very small percentage of carbon dioxide (around 100ppm). The aMDEA solution is then entering the stripping column to regenerate the rich solution of aMDEA into lean solution by removing the carbon dioxide. The lean solution then entering the absorber again as the process is continuous. 51
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Figure 311: Carbon dioxide removal process
1.1.3Ammonia absorption unit
Figure 312: Ammonia absorption unit
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In the gas absorber, the solvent use; water will react with ammonia from the feed gas to form ammonium ion, NH4+ and hydroxide ion, OH- . The product leaving at the bottom of the stream as liquid and enter a distillation unit to purification of ammonia. The solvent is continuously supply at the inlet of ammonia absorber unit. The solvent which is water is not being regenerated since the solvent is cheap plus the regeneration unit cost is high. Reaction in the ammonia absorber: NH3(aq) + H2O(l) NH4+(aq) + OH-(aq) The product gas leaving the ammonia absorber unit contains small percentage of ammonia roughly 2%.
Figure 313: Ammonia purification process
1.1.4Knock out drum Since the ammonia synthesis uses Iron oxide as the catalyst, removing water before the process is very essential. Therefore, in order to remove water, knock out drum will be used. Since the reactants are in the gaseous phase, thus the gas needs to be compressed and cooled so that water will condense and exist in the liquid form. The knock out is selected because the mixture the mixture is heterogeneous and after compressing and cooling it contains mostly vapour and little liquid.
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Figure 314: Basic vapour-liquid separator
A knock-out drum is a vertical vessel into which a liquid and vapour mixture (or a flashing liquid) is fed wherein the liquid is separated by gravity, falls to the bottom of the vessel and then being withdrawn. The vapour travels upward at a design velocity which minimizes the entrainment of any liquid droplets in the vapour as it exits the top of the vessel. It is an undeniable fact that the usage of simple knock-out drum with gravity forces will be very effective and cost saving.
Figure 315: Water removal system
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1.2: HEAT INTEGRATION

1.2.1Introduction Heat integration is undoubtedly important in energy conservation in production plant. By doing heat integration, heat heating and cooling duties can be optimized, reducing the operating cost. In industrial application, there are many types of heat exchanger used. In this case, the shell and tube heat exchanger will be used. Utilities consumption, whether hot or cold utility requirement in order to obtain the targeted temperature of a stream is one of the main contributions to operating cost and capital cost. Thus, in this heat integration section, maximum energy recovery method is used to optimize the usage of heating and cooling utilities. 1.2.2Stream Identification In order to do heat integration, firstly, the hot stream (source of heat) and cold stream (source of sink) need to be identified. While doing the heat integration, the heat exchange streams for absorption and stripping section and condenser and reboiler of distillation columns are not included in the in heat integration. This is because these operation units are very sensitive towards temperature change and thus affecting the product purity. 1.2.3Minimum Temperature Difference Tmin The driving force for heat transfer, Tmin is very important in heat integration as it sets the relative location of the hot and cold streams and thus determining the amount of recoverable heat. As .the energy is increases, capital cost decreases. The optimum Tmin varies for different industries. Table 38 shows the suggested optimum Tmin in different industries
Table 38 Optimum Tmin in different industries
Industrial sector Oil refining
Optimum Tmin values (oC) 20 40
Remarks Relatively low heat transfer coefficients, 55
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parallel composite curves in many applications, fouling of heat exchangers Petrochemical Chemical Low temperature Processes 10 20 10 20 35 Reboiling and condensing duties provide better heat transfer coefficients, low fouling As for petrochemicals Power requirement for refrigeration system is very expensive. Tmin decreases with low refrigeration temperatures
Source: Pinch Analysis Foundation Training Course (1997) Production of ammonia is in petrochemical industries, thus, Tmin of 10oC is chosen 1.2.4Pinch Technology Method Introduction Pinch technology can be described as a systematic method for energy saving. The methodology is based on thermodynamic principle. A Pinch Analysis starts with material and heat balances for the process [1]. Using Pinch Technology, it is possible to identify appropriate changes in the core process conditions that can have an impact on energy saving. After establishing the heat and material balance, targets for energy saving can be set prior to the design of the heat exchanger network [1]. In this section, the method to calculate the amount for the ammonia production process by constructing composite curves to set an energy target, developing the problem table algorithm and doing the heat cascade diagram. In doing the Pinch Analysis, it is a mandatory to follow two principles of thermodynamics namely as the First and Second Law of Thermodynamics in determining the direction of Pinch Analysis application. 1. The First Law of Thermodynamics known as the conservation of energy principles which provide a sound basis for studying the relationship among the various forms of energy and energy interactions. Based on experimental observations, the first law of thermodynamics states that energy can be neither created nor destroyed during a process but change from one form to another.
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2. The Second law of Thermodynamics stated that energy cannot be transferred from a cold stream to a hot stream. 1.1.1Stream Identification for pinch Streams number
Table 39: The overall number of streams
Stre am Typ e Su p p ly Te m p eC)Targe t te m p eC reT C ) ratu re ( ratu ( ( ) S3/ S4 Co ld 355.4 750 394.6 S10/ S11 H o t 1056 350 -706 S12/ S13 H o t 452 200 -252 S16/ S17 H o t 220 110 -110 S19/ S20Co ld 110 320 210 S21/ S22 H o t 327 110 -217 S25/ S26 H o t 206 110 -96 S29/ S30 H o t 207.69 110 - 97.69 S33/ S34Co ld 179.88 360 180.12 CP (k W / K)En th alp h y (k W ) 145.467425457401.44607 197.7804676-139633.0101 187.680276 -47295.42956 536.6576154- 59032.3377 108.321820722747.58234 108.9785386-23648.34288 148.1324729-14220.71739 118.0656055 - 11533.829 105.703308319039.27989
For pinch analysis process, 6 streams are selected, the stream listed are as follow
Table 310: Stream used for pinch analysis
Stream Type S12/S13 Hot S25/S26 Hot S29/S30 Hot S3/S4 Cold Supply T perature(C) em 452 206 207.69 355.4 110 179.88 Target temperature(C) 200 110 110 750 320 360 T(C ) -252 -96 -97.69 394.6 210 180.12 CP (kW/K) Enthalphy (kW)
187.680276 -47295.42956 148.1324729 -14220.71739 118.0656055 -11533.829
145.4674254 57401.44607 108.3218207 22747.58234 105.7033083 19039.27989
S19/S20 Cold S33/S34 Cold
Stream S10/S11 which is the stream from secondary reformer to high temperature shift converter is excluded because it is decided that the heat will be used to generate steam as utilities as it will give better profit.
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1.1.2Corrected Temperature The corrected temperature for hot streams and cold streams need to be determined first before calculating the minimum utility requirement. For hot stream, For cold stream, Corrected temperature = T (Tmin)/2 Corrected temperature = T + (Tmin)/2
1.1.3Problem Table Algorithm Figure 316 shows the problem table algorithm, process the figure the surplus source of heat and deficit heat sink (heat deficiency can be determined).
Interval temp( C) 755 447 360.4 365 325 202.69 201 6 195 10.12 184.88 115 105
S19/ S20 S33/ S34 S25/ S26 S29/ S30 S1/ S2
Streams
S12/ S13
Delta T 308 86.6 -4.6 40 122.31 1.69
Cp(kW/K) 145.4674 -42.2129 -187.68 -81.977 26.34485 -91.7208 -239.853 -52.1729 -157.876 -266.189
Enthalpy(kW) 44803.9592 -3655.632862 863.3292696 -3279.078708 3222.23897 -155.0081102 -1439.119352 -527.9902449 -11032.39289 -2661.890784
surplus/ deficit Deficit Deficit Deficit Surplus Deficit Surplus Surplus Surplus Surplus Surplus
69.88 10
Figure 316: Problem Table Algorithm
1.1.4Heat Cascade Figure 317 shows the heat cascade using manual calculation while Figure 318 shows the heat cascade using SPRINT calculation. From the figures, it can be seen that the pinch temperature is 452C, the minimum heating requirement is 44804 kW and the minimum cooling requirement is 20806 kW.
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T (C) 745 447 -44 803.9592 360.4 355 184.88 202.69 -41 954.8159 20 1 19 5 184.88 115 105 -41 799.8078 -40 360.6884 -39 832.6982 -28 800.3052 201 195 18 4.88 115 105 -41 118.3263 -42 011.6556 -38 732.5679 360 .4 355 18 4.88 20 2.69 0 T (C) 745 447
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448 03.9592 0 365 5.63286 279 2.30359 6071.3823 300 4.15144 444 3.27079 497 1.26104 16003.65 3 186 64.5 447 20805.79 6
QH min = 4480 3.9592 kW PINCHT= 452C
QC min= 2080 5.796kW
Figure 317: Heat Cascade using manual calculation

*Dt m =10C in Minimumhot utility: 44803.967052 kW Minimumcold utility: 18665.634762 kW Grand Composite Curve T emperature Enthalpy --------------------------------------110.000000 18665.634762 120.000000 16003.653978 189.880000 4971.261074 200.000000 4443.270824 206.000000 3004.151469 207.690000 2849.143397 330.000000 6071.382316 365.400000 3169.397652 370.000000 3461.453757 452.000000 0.000000 760.000000 44803.967052
Figure 318: Heat Cascade using SPRINT calculation
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1.1.5Grand composite curve Figure 319 and Figure 320 shows the combined grand composite curve and grand composite curve. From the grand composite curve, the possible energy saving can be determined which is the overlapped of the curve.
Figure 319: Combined grand composite curves
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Figure 320: Grand Composite Curve
1.1.6Heat Exchanger Network In order to build heat exchanger network, Maximum Energy Recovery (MER) method must be taken into consideration. For streams above the pinch, CpC > CpH, while For streams below the pinch CpH > CpC Furthermore, as a rule of thumb, heat cannot be transferred across the pinch. Figure 321 shows the heat exchanger network for the ammonia production plant. The red line shows the hot streams those need to be cooled while the blue lines indicate the cold streams that need to be heated. From the figure, it can be seen that 2 heat exchanger will be used. Besides, another heat exchanger is installed in stream S10/S11, stream after secondary reformer in order to generate steam as utilities.
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Figure 321: Heat exchanger network for ammonia production plant
Figure 322: Heat exchanger after the secondary reformer to generate steam as utilities
1.1.7Energy saving evaluation After installing the heat exchangers, the energy saving can be evaluated. Table 3 11 shows the evaluation of the energy saving.
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PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY Table 311: Energy saving evaluation
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It is true that hot utilities saving after heat exchanger network is not as significant as cold utilities saving. However, considering steam is produced as valuable and important utilities in the plant, thus, the decision is produced steam as utilities instead of using it in heat exchanger network is justified. If streams S10/S11 are taken into consideration in heat integration without considering into generating steam as utilities, a threshold problem will be faced where there is no heating needed since the hot streams S10/S11 after the secondary reformer is sufficient to heat most of the streams. However, generating steam using the abundant heat after the secondary reformer is a common practice in industry and it is considered as more beneficial than using it in heat exchanger network. Therefore, the decision of using it for steam generation is justified.
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2 CHAPTER 4 INSTRUMENTATION AND CONTROL

2.1Introduction
The plant wide control strategy is designated to maximize the specified throughput of the plant with the highest purity value that can be achieved. The plant control strategy is divided into different sections that involve control of different unit of operations. The control of a process is often accomplished by measuring the variables (controlled variables), comparing this measurement with the value at which it is desired to maintain the controlled variables (set point), and adjusting some further variables (manipulated variables) which has a direct or indirect effect on the controlled variables. For the proposed Ammonia production plant, the vital objectives of designing control system are: 1. 2. 3. 4. To have a safe plant operation and to avoid abnormal operation accident. To control the production rate at 678,810 tonnes of ammonia per year. To maintain the ammonia product purity above 99 wt%. To avoid excess usage of cooling and heating utility.
During operation, the ammonia plant needs to satisfy requirements to guarantee the satisfaction of the operational objectives above. According to Stephanopoulos (1984), among such requirements are: 1.1.1Safety The safe operation of the ammonia plant is a primary requirement for the well-being of the people in the plant and for its continued contribution to the economic development. Thus it is important: a. To keep the process variables within known safe operation limits. b. To make sure the temperature and pressure at the desired level for reactor and columns c. To detect danger as they develop and to provide alarms and automatic shutdown systems. 64
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d. To provide interlocks and alarms to prevent dangerous operating conditions. 1.1.1Production specifications Continuous control of the process will give the desired amounts and quality of the final ammonia and carbon dioxide product with the purity specified. The desired ammonia product purity is 99%. 1.1.2Environmental Regulations The federal and state laws have specified that the temperatures, concentrations and flow rates of the effluents from the plant be within certain limits. Therefore, for example, control on the quality of the water returned to a river from the plant is important. 1.1.3Operational constraints The various types of equipment used in the plant have constraints inherent to their operation. Such constraints should be satisfied throughout the operation. For example the pumps must maintain a certain net positive suction head, tanks should not overflow or go dry and also the distillation columns should not be flooded. 1.1.4Economics The operation of the ammonia plant should confirm to the market conditions that are availability of the raw materials and the demand of the final product. It should be as economical as possible in its utilization of raw material, energy, capital and human labour. Thus, control strategies are required to operate at optimum level: a. To operate at the lowest production cost, corresponding with the other objectives b. To minimize the usage of heating and cooling utility, and thus reducing the utility cost. All the requirements listed can be accomplished through a rational arrangement of the equipment (measuring devices, valves, controllers, and computer) and human 65
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intervention including plant engineers and operators which together constitute the control system. These are the important terms used in process control: 1. Controlled variables: This variable must be maintained or controlled at desired value also known as set point. 2. Set point: Desired value to be achieved and set earlier. 3. Manipulated variable: Variable used to maintain the controlled variable at its set point. 4. Disturbance variable: Any variable that can cause the controlled variable to deviate from the range of set point. Seborg (2004) classified the process variables to be either input or output variables. For section of the controlled variables, the guidelines are: 1. Guideline 1: All variables that are not self-regulating must be controlled. 2. Guideline 2: The output variables must be kept within equipment and operating constraints. 3. Guideline 3: The output variables represent a direct measure of product quality. 4. Guideline 4: The output variables interact with other controlled variables. 5. Guideline 5: The output variable has favourable dynamic and static characteristics. For selection of the manipulated variable from input variables, the guidelines are: 6. Guideline 6: Inputs that have large effect on controlled variable. 7. Guideline 7: Inputs that have rapidly effect on controlled variable. 8. Guideline 8: The manipulated variable should affect the controlled variable directly rather than indirectly. 9. Guideline 9: Avoid recycling disturbance.
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1.1Basic Concept of Advanced Process Control

1.1.1Feedback Control Feedback control needs to control one variable and compare with set point. Correction action occurs regardless of the source and type of disturbance. Due to figure below, feedback controller measures the controlled variable. In order to maintain controlled variable at its set point value, feedback controller adjusts manipulated variable which is the input value. Thus, feedback control takes no corrective action until a deviation in a controlled variables occurred.
Figure 41: Example of feedback control system
1.1.2Feedforward Control Feedforward control measure important disturbance variables and take corrective action before they upset the process. Due to figure below, feedfoward control measure the disturbance despite the controlled value. It measure disturbance, adjust input value in order to maintain control variable at its set point value. Feedfoward control takes corrective action before the process is upset where theoretically capable of perfect controller.
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Figure 42: Example of feedforward control system
1.1.3Cascade Controller The disadvantage of conventional feedback control is that the corrective action does not begin until after the controlled variable deviates from the set point. Feedforward control offers large improvement over feedback control for process that has large time constant or delay. However, feedforward control requires that the disturbance be measured explicitly and a model be available to calculate the controller output. And alternative approach employs a secondary measurement point and a secondary feedback controller. The secondary measurement point is located so that it recognizes the upset condition sooner than the controlled variables, but the disturbance is not measured. Particularly useful when disturbances are associated with manipulated variable or when the final control element exhibits nonlinear behaviour.
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Figure 43: Example of cascade control system
1.1.4Ratio Control Ratio control system is special type of feedforward control system. The main objective is to maintain the ratio of two process variables at a specified value. The two variables are usually flow rates, a manipulated variable, U and a disturbance variable, d.
Figure 44: Example of ratio control system
The flow rate of the disturbance stream is measured and transmitted to the ratio station (RS). RS multiplies this signal by an adjustable gain, K whose value is the desired ratio. The output from RS is used as the set point for the flow controller. The controller will adjust the input signal to its desired value. 69
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1.2Ammonia Plant Control System

1.2.1Introduction Ammonia plant consists of various kind equipments including vessel, knock drum, distillation column, reactor, heat exchanger and heater. These equipments are controlled using several types of controllers which are: 1. 2. 3. 4. Temperature indicator controller (TIC) Pressure indicator controller (PIC) Flow indicator controller (FIC) Level indicator controller (LIC)
Control system for each of equipment is analyzed and the respective P&ID diagram is attached. The control system includes: 1. 2. 3. 4. 5. Feed control system Reactor control system Separation system Heat exchanger control system Recycle stream control system
Figure 45 show the overall diagram regarding ammonia production.
Figure 45: Ammonia production process diagram
1.1.1Feed Control System 1. Steam and natural gas mixture 70
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Figure 46: Steam and natural gas mixture control system
The purpose of the feed control system is to maintain the desired stream flow rate of steam and natural gas. The flow rates of the streams need to be controlled before mix up in order to avoid pipe leakage due to over pressure or flood accidents. Both flow rate of steam and natural gas stream are maintained at a specified value using ratio control system. As flow rate of the steam is despite from desired value, valve v-1 will be adjusted in order to maintain the flow ratio between both flow rate before combine.
Table 41: Steam and natural gas mixture control strategy
Control Measured Manipulated Type of Disturbance Variable Variable Variable Controller Flow rate of Flow rate of Flow rate of Flow rate of Ratio natural gas steam and natural gas steam stream controller stream natural gas stream stream
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1.1.1Air and reactant mixture
Figure 47: Air and reactant mixture control system
After through primary reformer, the mixture needs to be mixed with air in order to collect Nitrogen compound into the stream for further reaction. The flow rate of the mixture and the air stream need to be adjusted in order prevent the runaway reactor condition. Ratio control system is employed here. The flow rate of mixture stream is controlled since it has higher stochiometric ratio to ensure the production rate of ammonia.
Table 42: Air and reactant mixture control strategy
Control Measured Manipulated Type of Disturbance Variable Variable Variable Controller Flow rate of Flow rate of Flow rate of Flow rate of air Ratio mixture air and mixture stream stream controller stream mixture stream Throughout ammonia production flow, there are several reactors used including:
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1.1.2Primary Reformer Reactor
Figure 48: Primary reformer reactor control system
Primary reformer reactor in ammonia plant is endothermic. Therefore, in order to maintain the temperature to its set point, a furnace system is needed. The important parameters that are crucial to be controlled in a reactor are temperature and pressure. The reactor temperature is affected by changes in disturbance variables such as reactant feed temperature or feed composition. However, an increase in the inlet steam water temperature, an unmeasured disturbance, may cause unsatisfactory performance. So, to improve it, a feedback controller for fuel gas, whose set point is determined by the reactor temperature controller, will be used. The control system measures the pressure of fuel gas stream, compares it to the set point value and uses the resulting error signal as the input to a controller for the fuel gas makeup. The temperature set points and both measurement are used to adjust a single manipulated variables which is the fuel gas makeup rate. The process system called Cascade control system. The fuel gas flow system is flow out where the used fuel will be transferred to the tank for storage. The volume of the water inside the tank is controlled by level control system. The fuel will be flowed out to the waste stream as the fuel inside the tank reaches maximum level.
Table 43: Primary reformer reactor control strategy
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Control Measured Manipulated Type of Disturbance Variable Variable Variable Controller Temperature of Temperature of Flow rate of Temperature of Cascade R-101 R-101 and fuel gas into the reactant controller pressure of reactor fuel stream
1.1.3Secondary Reformer Reactor
Figure 49: Secondary reformer reactor control system
Secondary reformer in the ammonia plant is exothermic. Therefore, in order to maintain the temperature to its set point, a cooling jacket is needed. The important parameters that are crucial to be controlled in a reactor are temperature and pressure. The reactor temperature is affected by changes in disturbance variables such as reactant feed temperature or feed composition. However, an increase in the inlet reactant stream temperature, an unmeasured disturbance, may cause unsatisfactory performance. So, to improve it, a feedback controller for jacket temperature, whose set point is determined by the reactor temperature controller. The control system measures the jacket temperature, compares it to the set point value and uses the resulting error signal as the input to a controller for the cooling water makeup. The temperature set points and both measurement are used to adjust a single manipulated
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variables which is the water makeup rate. The process system called Cascade control system. The cooling water flow system is recyclable where the used water will be transferred to the tank for storage. The volume of the water inside the tank is controlled by level control system. The water will be flowed out to the waste stream as the water inside the tank reaches maximum level. Some of it will be recycled for cooling system. The reactor pressure is affected by changes in disturbance variable which is reactant flow rate and temperature of reactor. The pressure inside the reactor is measured in order to provide set point value to final control element which is valve. The valve will be coordinated due to desired value. Feedback control system is applied. Backup valve is installed as due to failure valve in future.
Table 44: Secondary reformer reactor control strategy
Control Measured Variable Variable Temperature of Temperature of R-102 R-101 and temperature of cooling jacket Liquid level in Liquid level in water surge water surge tank tank Pressure of R- Pressure of R102 102 and flow rate of reactant
Manipulated Type of Disturbance Variable Controller Flow rate of Temperature of Cascade cooling water the reactant controller into jacket Flow rate of water out Feedback controller
Flow rate of Volume of Feedback the reactant reactant enter controller the reactor
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1.1.4High Temperature Shift Reactor
Figure 410: High temperature shift converter control system
Heat temperature shift reactor operates at high temperature which is 350C. After through secondary reformer, the reactant is cooled down through heat exchanger using water from 1056C to 350C. The important parameter that is crucial to be controlled in high temperature shift is temperature. The reactor temperature is affected by changes in disturbance variables such as reactant feed temperature or feed composition. Thus, the water flow into the heat exchanger needs to be controlled in order to get satisfied value of feed stream temperature. The temperature inside the reactor is identified and provides the set point value to the flow meter system in order to control the valve opening. The control system measure the water flow rate and compares to its set point and uses the resulting error signal as the input to the valve for valve opening makeup.
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The pressure inside the reactor is controlled by installing release valve. The corrective action will be taken as the pressure inside reactor is overpressure by controlling the opening of release valve. The control system applied is feedback control system.
Table 45: High temperature shift converter control strategy
Control Variable Temperature of R-103
Measured Variable Flow rate of water and R103 temperature. Liquid level in Liquid level in water surge water surge tank tank Pressure inside Pressure inside reactor R-103 reactor
Manipulated Disturbance Type of Variable Controller Flow rate of Temperature of Cascade water into heat the reactant Controller exchanger Flow rate of water out Feedback Controller
Pressure Volume of Feedback released via reactant inside Controller release valve reactor Temperature of reactor
1.1.5Low Temperature Shift Reactor
Figure 411: Low temperature shift reactor control system
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Low temperature shift in the ammonia plant is exothermic. Therefore, in order to maintain the temperature to its set point, a cooling jacket is needed. The important parameters that are crucial to be controlled in a reactor are temperature and pressure. Using the same concept applied in secondary reformer, cascade controller is implemented in order to control the temperature of low temperature shift reactor. The pressure inside the reactor is controlled by installing release valve. The corrective action will be taken as the pressure inside reactor is overpressure by controlling the opening of release valve. The control system applied is feedback control system.
Table 46: Low temperature shift reactor control strategy
Control Measured Variable Variable Temperature of Temperature of R-104 R-104 and temperature of cooling jacket Liquid level in Liquid level in water surge water surge tank tank Pressure of R- Pressure inside 104 reactor
Manipulated Type of Disturbance Variable Controller Flow rate of Temperature of Cascade cooling water the reactant controller into jacket Flow rate of water out Feedback controller
Pressure Volume of Feedback released via reactant inside controller release valve the reactor Temperature of reactor
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1.1.6Methanation Reactor
Figure 412: Methanation reactor control system
Methanation reactor in the ammonia plant is exothermic. Therefore, in order to maintain the temperature to its set point, a cooling jacket is needed. The important parameters that are crucial to be controlled in a reactor are temperature and pressure. Using the same concept applied in secondary reformer, cascade controller is implemented in order to control the temperature of methanation reactor. The pressure inside the reactor is controlled by controlling the opening release valve for decreasing pressure level inside the reactor. The control system applies is feedback control system.
Table 47: Methanation reactor control strategy
Control Measured Variable Variable Temperature of Temperature of R-105 R-105 and temperature of cooling jacket Liquid level in Liquid level in water surge water surge tank tank
Manipulated Type of Disturbance Variable Controller Flow rate of Temperature of Cascade cooling water the reactant controller into jacket Flow rate of water out 79 Feedback controller
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Pressure of R- Pressure inside Pressure Volume of Feedback 105 reactor R-105 released via reactant inside controller release valve. the reactor. Temperature of reactor
1.1.7Ammonia Synthesis Reactor
Figure 413: Ammonia synthesis reactor control system
Ammonia synthesis reactor in the ammonia plant is exothermic. Therefore, in order to maintain the temperature to its set point, a cooling jacket is needed. The important parameters that are crucial to be controlled in a reactor are temperature and pressure. Using the same concept applied in secondary reformer, cascade controller is implemented in order to control the temperature of ammonia synthesis reactor. Ammonia synthesis part is including recycle stream system. The flow rates of the streams need to be controlled before mix up in order to avoid runaway reactor condition and leakage. Both flow rate of reactant and recycle stream are maintained at a specified value using ratio control system. The flow rate of reactant stream is controlled since it has higher stochiometric ratio to ensure the production rate of ammonia. As flow rate of the steam is despite from desired value, valve will be adjusted in order to maintain the flow ratio between both flow rates before combine. 80
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The reactor pressure is affected by changes in disturbance variable which is reactant flow rate and temperature of reactor. The pressure inside the reactor is measured in order to provide set point value to final control element which is valve. The valve will be coordinated due to desired value. Feedback control system is applied. Backup valve is installed as due to failure valve in future.
Table 48: Ammonia synthesis reactor control strategy
Control Variable Temperature of R-106
Measured Variable Temperature of R-106 and temperature of cooling jacket Liquid level in Liquid level in water surge water surge tank tank Pressure of R- Pressure inside 106 reactor R-106
Manipulated Disturbance Type of Variable Controller Flow rate of Temperature of Cascade cooling water the reactant controller into jacket Flow rate of water out Feedback controller Feedback controller
Pressure Volume of released via reactant inside release valve the reactor. Temperature of reactor Flow rate of Flow rate of Flow rate of Flow rate of reactant stream reactant and reactant stream recycle stream recycle streams
Ratio controller
Besides, throughout ammonia production flow system, there are several separation process involved including:
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1.1.8Carbon Dioxide Removal
Figure 414: Carbon dioxide removal control system
Control strategy for adsorption tower is subjected to flooding and condenser limit. In separation process, overloading and flooding will cause poor separation. Therefore, there are two area need to be controlled in adsorption tower. After the reactant through absorption tower, carbon dioxide inside the stream is removed and sends to regeneration column for purification. Level control is installed inside absorption tower in order to prevent flooding accident. Control system applied is feedback controller. The flow rates of the streams need to be controlled before going through regeneration column as to avoid runaway reactor condition. Both flow rate of top feed and bottom feed stream are maintained at a specified value using ratio control system. As flow rate of the top feed is despite from desired value, valve at bottom feed will be adjusted in order to maintain the flow ratio between both flow rates before go through regeneration process. The carbon dioxide is then collected at the top stream where it will be flow into a column for temperature and pressure configuration. The temperature of regeneration column is controlled by manipulating flow out of carbon dioxide at the top stream. The strategy used is feedback control system.
Table 49: Carbon dioxide removal control strategy
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Control Variable Flow rate of top feed stream (C-102)
Measured Variable Flow rate of top and bottom feed stream (C102) Liquid level in Liquid level in absorption column tower (C-101) Temperature of Temperature of regeneration regeneration column column
Manipulated Disturbance Variable Flow rate of Flow rate of steam top feed stream (C-102) Flow rate of bottom product Flow out of carbon dioxide
Type of Controller Ratio controller Feedback controller Feedback controller
1.1.9Water Removal
Figure 415: Water removal control system
Many knock up drums are used in ammonia production in order to remove certain percentage of water from the stream. Knock up drum is then attached to compressor or pump in order to increase the pressure of the reactant. Figure above shows the water removal system where it consist of 3 main components including compressor, heater and knock up drum. In order to remove the water, the pressure and temperature must be reduced. Feedback control system is applied for both components. The parameters of temperature and pressure are identified before taking further corrective action. Control strategy for knock up drum is feedback controller for all the control system needed. Reactant volume inside the vessel is identified and as it reaches 83
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specified level, the valve will be rearrange at bottom stream so that there is no flooding inside knock up drum.
Table 410: Water removal control strategy
Control Variable Liquid level in knock up drum Temperature of the stream
Manipulated Variable Flow rate of water out Flow rate of the reactant passing through. Pressure of the Pressure of the Flow rate of stream stream the reactant passing through
Measured Variable Liquid level in knock up drum Temperature of the stream
Type of Controller Feedback Controller Temperature of Feedback the reactant Controller Disturbance Temperature of Feedback the reactant Controller
1.1.10Ammonia Separation
Figure 416: Ammonia separation control system
Control strategy for ammonia separation is feedback controller. Reactant volume inside the tower is identified and as it reaches specified level, the valve will be rearrange at bottom stream so that there is no flooding inside absorption tower. Bottom stream of ammonia separation absorption tower consist mixture of ammonia and water. Thus knock up drum is used along the flow until storage in order to remove 100% water and reduce temperature and pressure at storage 84
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conditions. Feedback control system is applied in order to avoid flooding or overload inside knock-out drum. Pressure inside absorption tower, V-105 is controlled by manipulating flow out of the reactant at top product. Control system applied is feedback control system.
Table 411: Ammonia separation control strategy
Control Variable Liquid level in absorption tower Liquid level in knock up drum Pressure inside tower, V-105
Measured Variable Liquid level in absorption tower Liquid level in knock up drum Pressure of absorption tower
Manipulated Disturbance Variable Flow rate of bottom product Flow rate of water flow out
Type of Controller Feedback controller Feedback controller
Flow rate of Temperature of Feedback top product reactant feed Controller
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2 CHAPTER 5 SAFETY AND LOSS PREVENTION

2.1Introduction
Ensuring safety in chemical plant is a must. This concern is related to the industry potential to cause accidents and deaths. For an example, the Bhopal, India tragedy causes more than 2000 civilian casualties due to the released of methyl isocyanate (MIC) to atmosphere. MIC is considered as an extremely dangerous compound which is reactive, toxic, volatile and flammable. 25 tons of toxic MIC vapor estimated was released, the toxic cloud spread to the adjacent town, killing more than 2000 civilians and injuring an estimated 20,000. (D.A Crowl, 2002) From this incident, it can be seen that guaranteeing safety is not only important for the company but also for the civilians. Knowing how an incident can lead to deaths of people, safety at the workplace should not be taken lightly.
2.2Safety Issues in Chemical Plants

Considered as one of the most critical issues in chemical plants safety must be practiced in line with the safety regulations in order to eliminate accidents and probability of accidents. Safety starts with people, safety awareness among the workers and civilians would result in better understanding of the importance of safety. Safety is an undeniably a very crucial element in a chemical plant. It protects workers from illness, injuries and deaths while ensuring the survival of company business. Therefore, it is a necessity to establish safe working environment in a chemical plant. Thus, a management team to cater health safety and environment (HSE) must be developed. The aim of establishing this team is to reduce and eliminate any undesired accident in the plant.
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2.2.1Hazard awareness reducing accident risk Awareness of the hazards that could happen in a chemical plant can increase the awareness of the importance of working in a safe environment. For an example, knowledge about ammonia would lead to better processes handling. Ammonia is liquefied under pressure in refrigeration systems and liquid ammonia released by accident may be in the form of an aerosol i.e., small liquid droplets along with ammonia gas. Behaves as a dense gas even though it is lighter than air, it may travel along the ground instead of immediately rising into air. Hence, this behaviour may increase the potential of risk for the exposure of workers and the public. Ammonia vapours are not flammable at concentration of less than 16%, however, there may be fire and explosion hazard at concentrations between 16% and 25%). Mixtures of ammonia vapours contaminated with lubricating oil from the system may have a much broader explosive range (R.K Gangopadhyay and S.K Das, 2007) Thus, a training program should be done to ensure the ammonia plant is operated and maintained by knowledgeable personnel. 2.2.2Precautions against toxic risk The precaution against toxic risk can be done in a few ways: 1. Personal Protective Equipment 2. Evacuation and Emergency Procedures 3. Ventilation 4. Training in Plant Operation and Maintenance These precautions can be taken to avoid undesired accident in an ammonia plant. Workers should wear personal protective equipment at the designated workplace without any exception. Besides, an evacuation and emergency procedures should be prepared which details the precise duties of all staff and the arrangements for evacuation, rescue, first aid, plant isolation and etc. (R.K Gangopadhyay and S.K Das, 2007) For ventilation, normal ventilation should be provided to prevent build-up of toxic concentration of hazardous gaseous, i.e., ammonia from leakage. Other than that, emergency ventilation provisions should be made for adequate mechanical ventilation to prevent flammable air mixtures accumulating in the event of 87
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reasonably foreseeable plant or operational failure (e.g., valve failure) (R.K Gangopadhyay and S.K Das, 2007). Besides, all personnel involved in the operation and maintenance of the plant must be sufficiently trained. The training done should cover both general principle of the plant and specific points related to the particular plant which applies as much to maintenance contractors as to an employers own staff. (R.K Gangopadhyay and S.K Das, 2007) 1.1.1Organization for meeting up an emergency In handling of a plant emergency situation, in house planning, proper education for the local authority and communication with the surrounding neighbours is must. An emergency situation cannot possibly be tackle by a group of personnel, thus, the emergency team should be a collaboration of maintenance, fire, safety and environment, personnel, security and medical. (R.K Gangopadhyay and S.K Das, 2007) The steps below can be taken for organization to tackle emergency situation: 1. Communication 2. Emergency Control Centre 3. Testing of the Plan by Rehearsing Communication in communicating, the terminal manager or manager of the plant will act as the on-site works main controller (WMC). While, the shift manager/engineer in charge of the plant will act as the on-site work incident controller (WIC), the WIC should be familiar with the plant and be readily recognizable at the scene of the incident. After being alerted by the WIC, WMC should take charge of the charge of the situation, opening an emergency control room and the controlling the situation from there. The WMC should be familiar with the plant and should have the necessary authority to make decisions regarding the affecting part of the plant and the neighbourhood. After the incidence, the first person who activated the emergency alarm shall report to the WIC on the location of the incident. (R.K Gangopadhyay and S.K Das, 2007) Emergency Control Centre Theoretically, the emergency control center (ECC) should be positioned in a location of minimum risk and with good access both to the affected side and the outside road system so that the controllers could be reaching 88
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with mluch difficulty. (R.K Gangopadhyay and S.K Das, 2007) The ECC should comprise of: Sufficient chairs, tables and stationeries Several telephones for internal and external communication The Material Safety Data Sheets (MSDS) of all chemicals used on site A computer with internet facility for communication and data entry purposes Radio contact with all sections of the plant Log book Important telephone number on display board Data pertaining to the decision making Emergency lights Canned food materials and beverages Charts for communication network inside the plant and outside localities Charts for dispersion distances Diagram to assess weather category, and Layout map for escape routes, assembly points, location for personnel protective equipment, site entrance and road systems, medical centre location, location of fire extinguisher and etc. (R.K Gangopadhyay and S.K Das, 2007) Testing of the Plan by Rehearsing The emergency plan must be developed and distributed to WMC, WIC, fire, safety and environmental, security, medical and personnel departments, and on-site emergency control room. The plan must be tested using models and necessary modifications incorporated. An actual mock drill should follow this exercise. The shortcomings and inadequacies in the plant must be identified and rectified accordingly. The mock drill done should adequately address the on-site emergency plant, communication network and procedures, and coordination between various departments and their roles. On the basis of the mock drill, all suggestions from various departments/observers/government agencies should be incorporated to prepare an updated version of the on-site emergency plant for both on-site and off-site. (R.K Gangopadhyay and S.K Das, 2007)
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1.1HAZARD AND OPERABILITY STUDIES (HAZOP)

1.1.1Introduction Hazard and operability (HAZOP) analysis was established in the late 1960s at ICI in UK based on the basic principle of that hazards arise in a plant due to deviations from normal behaviour. Thus, a group of experts thoroughly identify every possible deviations from design intent in a plant, find all the possible abnormal causes and adverse hazardous effects of the deviations (V. Subramaniam et al, 2000) In HAZOP analysis, hazards assume to arise in a process plant due to deviations from designers intent or from acceptable normal behaviour. It is performed by systematically examining the process P&IDs in order to determine abnormal causes and adverse consequences for every conceivable abnormal behaviour of the process plant. To cover all possible malfunctions in the plant, the process deviations for HAZOP analysis are generated by systematically applying a set of guide words for examples MORE OF, LESS OF, NONE, REVERSE, PART OF, AS WELL and OTHER THAN. (R. Vaidhyanatham et al, 1995) 1.1.2Basic Principle of HAZOP Initially, the development of the HAZOP techniques was to analyse chemical process systems, but later been extended to other types of systems also to complex operations and to software systems (M. Rausand, 2005) In order to give a significant influence on the design, the HAZOP study should be carried out in the early stage of the design phase. However, in order to perform a HAZOP analysis, a rather complete design is needed. Hence, the HAZOP is usually carried out as a final check when the detailed design has been completed. A HAZOP study may also be conducted on an existing facility to identify modifications that should be implemented to reduce risk and operability problems (M. Rausand, 2005) The HAZOP studies may be used during these stages (M. Rausand, 2005): 1. At the initial concept stage when design drawings are available 2. When the final piping and instrumentation diagrams (P&ID) are available 3. During construction and installation to ensure that recommendations are implemented 90
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4. During commissioning 5. During operation to ensure that plant emergency and operating procedures are regularly reviewed and updates as required 1.1.1Process HAZOP In order to conduct a HAZOP study, the following information should be available (M. Rausand, 2005) 1. Process flow diagrams 2. Piping and instrumentation diagrams (P&IDs) 3. Layout diagrams 4. Material safety and data sheets 5. Provisional operating instructions 6. Heat and material balances 7. Equipment data sheets start-up and emergency shut-down procedures 1.1.1HAZOP procedure The procedure of HAZOP can be broken into these steps (M. Rausand, 2005): 1. Dividing the system into sections (i.e., reactor, storage) 2. Choosing a study node (i.e., line, vessel, pump, operating instruction)ent 3. Describing the design intent 4. Selecting a process parameter 5. Applying a guide-word 6. Determining cause(s) 7. Evaluating the consequences or problems 8. Recommending actions 9. Recording the information 10. Repeating the procedure (from step 2)
91

Recordsystem combinations Need more information and causes and suggest Divide SURE into study nodes of guide words remedies Select a study node NO YES relevant NOT the consequences Apply
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Figure 51: Illustration of HAZOP procedure (M. Rausand, 2005)
Figure 51 shows the illustration of HAZOP procedure. It starts according to the numbering in the previous section. Modes of operation In HAZOP, the following modes of plant operation should be considered for each node: 1. Normal operation 2. Reduced throughput operation 3. Routine start-up 4. Routine shutdown 5. Emergency shutdown 6. Commissioning 7. Special operating modes 1.1.1Worksheet entries Node A node is a specific location in the process in which (the deviations of) the design/process intent are evaluated. (For examples, separators heat exchangers, scrubbers, pumps, compressors, and interconnecting pipes with equipment) (M. Rausand, 2005) Design Intent The design intent is a description of how the process is expected to behave at the node; this is qualitatively described as an activity (e.g., feed, reaction, sedimentation) and/or quantitatively in the process parameters, like temperature, flow rate, pressure, composition, etc. (M. Rausand, 2005) Deviation A deviation is a way in which the process conditions may depart from their design/process intent. (M. Rausand, 2005) Parameter the relevant parameter for the condition(s) of the process (e.g. pressure, temperature, composition) Guideword a short word to create the imagination of a deviation of the design/process intent. (M. Rausand, 2005)
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Safeguard facilities that help to reduce the occurrence frequency of the deviation or to mitigate its consequences. There are 5 types of safeguards in principle (M. Rausand, 2005): 1. Identifying the deviation (e.g., detectors and alarms, and human operator detection) 2. Compensating for the deviation (e.g., an automatic control system that reduces the feed to a vessel in case of overfilling it which is usually an integrated part of the process control) 3. Preventing the deviation from occurring (e.g., an inert gas blanket in storages of flammable substances) 4. Preventing further escalation of the deviation (e.g., by (total) trip of the activity. The facilities are often interlocked with several units in the process, often controlled by computers) 5. Relieving the process from the hazardous deviation (e.g., pressure safety valves (PSV) and vent systems) 1.1.1Process parameters Process parameters can be classified into the following: Physical parameters related to input medium properties Physical parameters related to input medium conditions Physical parameters related to system dynamics Non-physical tangible parameters related to batch type processes Examples of process parameters are flow, pressure, temperature, mixing, stirring, transfer, level, viscosity, reaction, composition, addition, separation, time, phase, speed, particle size, measure, control, pH, sequence, signal, start/stop, operate, maintain, services and communication. (M. Rausand, 2005) The basic HAZOP guide-words are:
Table 51: The basic HAZOP guide-words (M. Rausand, 2005)
Guide-word No (not, none) More (more achived
Meaning None of the design intent is Quantitative increase in a 94 expected
Example No flow when production is High temperature than designed
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of, higher) Less (less of, lower) As well as (more than) Part of Reserve Other than (other)
parameter Quantitative decrease in a parameter An additional activity occurs Only some of the design intention is achieved Logical opposite of the design intention occurs Complete substitution another activity takes place Other valves closed at the same time (logic fault of human error) Only part of the system is shut down Back-flow when the system shuts down Liquids in the gas piping Lower pressure than normal
1.1.1Selected node In our case, three HAZOP nodes selected, which are the syngas compressor before entering the ammonia converter, the ammonia converter itself and the ammonia absorption tower in order to separate ammonia from the unreacted syngas. These nodes are selected due to the fact that they are very essential to the process in the production of ammonia. If the pressure cannot be increased, the desired process cannot be achieved and therefore the conversion of syngas in the ammonia converter fails. Besides, after the process, ammonia separation from the other unreacted syngas. Due to these fact, those node are selected.
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Figure 52: Study node 1- syngas compressor
1.1.2HAZOP Analysis: Node 1

HAZOP study HAZOP analysis on node 1
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Node Intention Parameters FLOW
1 compressor Suppy 11501.22 kPa of syngas to the compressor at the desired temperature to increase the pressure Guide Words Deviation Possible causes 1. Valve opening failure of stream 34 (S34) before entering CP104 2. Line blockage of S34 3. Pipe fracture and large leakage of S34 1. Control valve Oof S34 failed in partially open position 2. Leakage in pipeline at S34 3. Pressure Consequences Recommendation 1. Install flow indicator at S34 2. Install low flow alarm at S34 Safeguards If Action required Action assigned to
1. Decrease
pressurepressure incremen t not accompli shed 2. Decrease temperat ure desired pressure not accompli shed.
manually Bypass S34 pipe Engineer/ into compressor the Technician
handle condition, PPE must be worn
NO
No Flow
LESS
Less Flow
1. Decrease
pressure desired pressure incremen t not accompli shed 2. Increase temperat
As No Flow
As No Flow
As No Flow
Engineer/ Technician
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control system failure at S34 MORE More flow 1. Valve closing of partially open valve of S34 failed 2. Check valve of S34 defect 3. Pressure controller system failure of S34
1.
2.
3.
4.
urepossible compress or overheat ed Compres sor overload possible compress or overheat ed Vibratio n in compress or possible reactor rupture Increase pressurepossible compress or overpres sure Increase temperat urepossible
1. Install flow indicator 2. Install high flow alarm
As No Flow
Manually control the opening of S34 valve
Technician
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1. Backflow
due to back pressure from downstrea m S35 2. Check valve defect of S35 3. Pressure control system failure of S35 1. Failure of previous cooler E110 (more cooling water flow)
compress or overheat ed 1. Breakdo wn or leakage in compress or
1. Install flow indicator
As No Flow
Manually control the opening of S35 valve
REVERSE
Reverse Flow
1. Decrease
pressure in compress ordesired incremen t in pressure is not accompli shed
TEMPERATURE
LESS
Less Temperature
1. Install temperature controller 2. Install pressure controller 3. Install low pressure alarm 4. Install low temperature alarm
Wear appropriate PPE if manually dealing with the equipment
Manipulate the flow to stabilize the temperature
Technician
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More Temperature
1. Failure of E110 (less cooling water flow)
1. Increase
pressure possibly compress or overpres sure, may lead to rupture
As Less Temperature
Monitor HIPS as to determine either process intervention or total shutdown is needed
As Less Temperature
Technician
MORE
PRESSURE
Less Pressure
LESS
1. Undetecta ble leakage in pipeline (low flow) in S34 2. Valve opening failure of S34
1. Decrease
temperat uredesired incremen t is not accompli shed 2. Reverse flowpossibly compress or vibrating 1. High temperat urecompress or
As
Less As Less Temperature
Bypass the S34 Engineer/ pipeline Manually control valve opening of S34 Technician
Temperature
MORE
More pressure
1. Control valve opening failure of S34 (fail-
1. Install temperature controller 2. Install pressure
As Less Temperature
Manually control Technician S34 opening valve
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to-close) 2. High feed S34 temperatur e entering the compresso r
oveheate d 2. Compres sor ruptured
controller 3. Install high pressure alarm 4. Install low temperature alarm
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Figure 53: Study node 2 ammonia converter
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HAZOP study Node Intention Parameters FLOW HAZOP analysis on node 2 2 -ammonia converter Supply 25000kPa syngas into the reactor at desired temperature and flow Guide Words Deviation Possible causes 1. Valve opening failure of stream 37 (S37) 2. Line blockage of S37 3. Pipe fracture and large leakage of S37 1. Control valve failed in partially open of S37 position 2. Line leakage of S37 Consequences Recommendation 1. Install flow indicator 2. Install low flow alarm Safeguards Action Action assigned to Engineer/ Technician
1. No
significant effect Desired process is not accomplishe d
If manually Manually control the control valve opening, proper PPE must worn be the valve opening of S37 if control system failure Bypass the S37 if line blockage/ fracture/leakage
NO
No Flow
LESS
Less Flow
1. Less
pressure inside converter Desired process is not accomplishe d.
1. Install pressure control system 2. Install low flow alarm
As Flow
No Control the valve opening of S37 Bypass the S37 line if line blockage/ fracture/leakage
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MORE
More Flow
1. Valve closing of partially closed of S37 failure
1. Overpressur
e possibly reactor runaway 2. Increase temperature possibly reactor runaway 3. Converter ruptured 4. Converter breakdown 1. Feed accumulated before entering due to high pressure inside reactor
REVER SE
Reverse flow
1. Backflo w due to high pressure at R106 downstre am 1. Failure of cooling system of R106 (fail-toclose) 2. Pressure control
1. Install pressure control system 2. Install temperature control system 3. Install high pressure alarm 4. Install high temperature alarm 1. Install syngas pressure control system
Monitor determine either process intervention or needed As Flow total shutdown is
Control the S37
Technician
HIPS as to valve opening
No Control the syngas pressure output
Technician
TEMPERATURE
LESS
Less Temperatu re
1. Less
pressure inside convertordesired process is not accomplishe d
1. Install temperature control system at cooling system 2. Install alarm indicator
As Flow
No Decreease volume of cold water into cooling jacket Control feed S37 valve opening
Technician
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More MORE Tempreatu re
system failure of R106 (fail-toopen) 1. Cooling system failure of R106 (fail-to open) 2. Pressure control system failure of R106 (fail-toclose) 1. Valve opening failure of S37
for low temperature
1. High
pressure inside converterpossibly reactor runaway 2. Overheated possibly runaway
1. Install temperature control system 2. Install alarm indicator for high temperature
Monitor determine either process intervention or needed total shutdown is
Increase volume of cooling jacket of R106 Control feed S37 valve opening
Technician
HIPS as to cold water entering
PRESSURE Less pressire
LESS
1. Low temperature inside converter
MORE
More pressure
1. Valve closing failure of S37
1. High temperature inside reactor 2. Reverse
1. Install pressure control system 2. Install alarm indicator for low pressure 1. Install pressure control system 2. Install
As Flow
No Increase S37 valve opening
Technician
As Flow
No Decrease S37 valve opening
Technician
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flow
alaram indicator for low pressure
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Figure 54: Study node 3 Ammonia absorption tower
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HAZOP study Node Intention Parameters FLOW HAZOP analysis on node 3 3 Absorption tower Supply ammonia gas with unreacted syngas to the separator at desired temperature, pressure and flow Guide Words Deviation No Flow Possible causes 1. Valve opening failure of stream 38(S38) 2. Line blockage of S38 3. Line leakage of S38 1. Valve opening failure of S38 2. Line blockage of S38 3. Line leakage Action Consequences Recommendation 1. Install flow control system 2. Install low flow alarm Safeguards If manually control the conditions, proper PPE must be worn As No Flow As No Flow As No Flow Engineer/ Technician Action required assigned to
1. No
significan t effect the desired process not accomplis hed
Increase feed valve Engineer/ opening of S38 Bypass the S38 line if blockage/leakage/ru ptured Technician
NO
LESS
Less Flow
1. No
significan t effectthe desired process not accomplis hed
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MORE
More Flow
of S38 1. Valve closing of partially closed failure of S38
1. Increase
pressurepossibly absorber overpress ure 2. Increase temperatu repossible overheate d 3. Increase level of ammonia aqueous inside the absorberpossible causing flooding 4. Reverse flow containin g liquid aqueous ammonia back to converter causing reactor
1. Install flow control system at ammonia aqueous outlet 2. Install high flow alarm
Monitor determine either process interventio n or total shutdown is needed
Increase ammonia valve opening of S38
Technician
HIPS as to aqueous outlet
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runaway Reverse flow
1. Valve
opening failure of S38
1. Reverse
flow containin g aqueous ammonia into feed gas pipe possibly flow to converter causing runaway 1. Low pressure in absorber desired process not accomplis hed 1. High pressure in the absorberoverpress ure possibly absorber ruptured
1. Install flow
control system at ammonia aqueous outlet 2. Install high level alarm
As Flow
No As More Flow
Technician
REVERSE
TEMPERATURE
Less Temperatur LESS e
1. Cooler failure before entering the V105
1. Install pressure control system ( to control temperature) 2. Install alarm for low temperature
AsNo Flow
Decrease the flow Technician of the cooling into the cooler
MORE
More Temperatur e
1. Cooler failure before entering the V105
1. Install pressure control system (to control temperature) 2. Install alarm for high temperature
Monitor determine either process interventio n or total
Increase the flow of Technician into the cooler
HIPS as to the cooling water
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shutdown is needed Less Pressure
1. Valve
opening failure at Stream 39 (S39) 2. Cooler failure before entering the V105 1. Valve opening failure at the S39 2. Cooler failure before entering V105
1. Low
temperatu re in the absorberDesired process is not accomplis hed
1. Install pressure control system 2. Install alarm for low pressure
As No Flow
Decrease the opening of the valve at the top product of the absorber Decrease the flow of the cooling water into the cooler
Technician
LESS
PRESSURE
More Pressure
1. High
pressure in the absorber overpress urepossibly causing absorber ruptured.
1. Install pressure control system 2. Install alarm for high pressure
As No Flow
Increase the opening of the valve at the top product of the absorber Decrease the flow of the cooling water into the cooler
Technician
MORE
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1.1Plant Layout
1.1.1Introduction The location of the plant is the key in order to achieve and maintain the overall profitability of the future constructed plant. The designated plant layout must consider on the expansion slot to make up with the future demands. There are plenty of factors need to be consider before choosing the location of the plant. Below is the factor considered: 1. Location, with respect to the marketing area 2. Raw material supply 3. Transport facilities 4. Availability of labor 5. Availability of suitable land 6. Environmental impact and effluent disposal 7. Local community consideration 8. Climate 9. Political and strategic consideration The Ammonia plant is to be located at Gebeng, Kuantan, Malaysia which occupies about 104000 m2 (400 m x 260 m). Generally, the site layout can be divide into two parts: 1. Process Area 2. Non-Process Area The plant layout is designed referring to PETRONAS Technical Standard (PTS) as the main guideline. PETRONAS Technical Standard (PTS) is a complete guideline for technical issues and several section have been used appropriately for constructing the plant layout xxxxx. The main factors of plant layout design can be summarize as follow: To maximize safety in plant To facilitate feasible plant operation and management To minimize construction cost 112
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To consider future expansion.
From PTS, such as all processing units, reactor, cooling tower and utilities plant are spaced at least at minimum distance. In example the storage area that contains hazardous materials such as ammonia should be sited at least 70m from the site boundary. It is important to comply to these as the minimum clearance suggested put safety consideration first. For instance, 100ft around the flare is required as flare is an area where combustion occurs; ignition of flammable gas and effective heat transfer via radiation at the high temperature making fire hazards more likely to occur. In addition, it is also specified that the dike capacity must be 10% more than the largest tank in the tank farm. Knowing that dike is actually a drain used to capture the liquid chemical, a 10% safety factor is needed so that leaked liquid are contained as much as possible.
Besides the location of the plant, the effective layout design of the plant ensure the viability of the plant to run in a long term period.The economic construction and operation of a process unit will depend on how well the plant equipment specified on the process flow sheet and laid out. From the general factor stated earlier, below are the details need to be consider in designing the plant layout:
No. 1
Factor Costs
Description The cost of construction can be minimized by adopting a layout that gives shortest run of connecting pipes between equipment, and adopting the least amount of structural steel work. However, the distance between the reactor or vessel must not be less than a minimum requirement for safety measures.
Process requirement
All the required equipments have to be placed properly within process. Even the installation of the auxiliaries should be done in such a way that it will occupy the least space.
Operation
Equipment that needs to undergo frequent monitoring should be 113
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located closed to the control room. Manual valves and sample points should be located at convenient position and height. Sufficient working space and headroom must be provided to allow easy access to the specific access space.
Maintenance
Heat exchangers need to be sited so that the tube bundles can be easily withdrawn for cleaning and tube replacement. Equipment that requires dismantling for maintenance, such as compressors and large pumps, should be placed under cover. Vessels that require frequent replacement of catalyst or packing should be located on the outer of the plant area
Safety
Blast walls may be needed to isolate potentially hazardous equipment, and confine the effects of an explosion. At least two escape routes for operator must be provided from each level in the process building.
Modular construction
In recent years, there has been a move to assemble sections of the plant at the manufacturer site. These modules will include the equipment, structural steel, piping and instrumentation. The modules then transported to the plant site, by road or sea.
Plant expansion
Equipment should be located so that it can be conveniently tied in with any future expansion of the process. Space should be left on pipe alleys for future needs, service pipes oversized to allow for future requirements.
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1.1.1Plant Arrangement Description Non-Process Area Revolving Gate There are 2 revolving gates in the plant and the only access to the process area. The purpose is to control and monitor all the personnel in and out of the process area. It is electronically controlled for record and security reason. The gates only allow the authorized employees to access via their personal card issued by human resource department. For the visitors, they only can access the gates by requesting visitor card from security department. Any personnel can be listed and tracked especially in emergency situation.
Guard post Guard posts are located at the entrance of the site. Indeed, the security checkpoints are important to ensure no unauthorized access whether into administration building or the process area. There are 2 guard posts in this site: 1. Main entrance guard post to control the flow in and out of personnel or cars between the site and public area. Besides, it is the mere access to the administration building. 2. Process area/Contractor guard post security check to ensure that there is no hazardous or undesired materials being brought into the process area. Besides, contractors who possess permits will be allowed to enter the process area at different entrance with their heavy transport such as crane and lorry. It is a common practice in some places where personnel should have a safetybriefing card or permit to be allowed to enter the process site. Administration Building Administration office building is located quite distance away from the process area. This is to minimize to any occurrence of explosion and fire hazard since this is the place where a lot of personnel. This building is
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intended to locate all employees which are non-technical such as plant managers, human resource and Information technology personnel. Cafeteria Located in the non process area and can be accessed by all employees in both process and non-process area. Clinic The location of clinic has been chosen in convenient place and can be reached easily either from the process area or non-process area. It offers emergency and fast treatment to the injured employees before being sent to the nearest hospital for further treatment.
1.1.1Process Area
Process area is the area where ammonia will be produced. Thus, this is a hazardous area since it deals with a lot of chemicals as well as heavy machines. Besides, arrangement and location of main process site as well as other ancillary buildings are done carefully. Process area is divided into 2 main areas which are Inside Battery Limit (IBL) as well as Outside Battery Limit (OBL). Below are the units and buildings in the Process Area:
1) Inside Battery Limit (IBL) IBL is the area where the main process of ammonia production takes place. In addition, there are 9 areas locating all major equipments and units which are divided into Area1, Area 2, Area 3, Area 4, Area 5, Area 6, Area 6, Area 7, Area 8, and Area 9.
Area 1 Primary Reformer/ Furnace
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Area 1 is the major processing unit where the synthesizing of natural gas into methane gas takes place. The main equipment in this area is a side-burner furnace to maintain high feed temperature in the reactor for desired methane conversion. The outlet of the furnace will be sent to the secondary reformer.
Area 2 Secondary Reformer
Area 2 consists of compressor, secondary reformer and heat exchanger for generating steam. Here, the NG will be compressed and be further goes methane-formation process in secondary reformer. Then, the syn gas will passes through heat exchanger for generating steam for the usage as feed stream of the primary reformer.
Area 3- HTS and LTS/ Carbon monoxide conversion
Area 3 consists of two reactors for further conversion of generated carbon monoxide to hydrogen. In the area, from the secondary reformer, the carbon monoxide undergo water gas shift conversion through the two reactor for optimum conversion under two different condition. The syngas from HTS passes through two heat exchanger which is located in Area 5. The syngas the entering LTS and leaves for acid gas removal stages.
Area 4- Carbon Dioxide/Acid gas Removal
Carbon dioxide removal consists of 2 main column which are absorber column and stripper column for regeneration of amine. In the stage, the carbon dioxide is absorbed by amine reactive solvent. The rich solvent then floe through the bottom of the absorber column and being regenerated in the stripper column before flow back into as lean solvent. The treated gas is then flow to the pressure knockout drum.
Area 5- Pressure Knockout Drum, Heat exchanger and Methanator
Methanator is used to convert the left carbon monoxide to methane. Pressure knockout drum is used to drain out water content in the flow composition. It is mainly to increase the purity of the hydrogen nitrogen before the ammonia synthesis takes place. The heat exchanger is place in the middle of the processing plant area for 117
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the close flow transport to connect between two area or equipment. In the area also consist compressor for increase the flow pressure stage by stage before entering the ammonia converter.
Area 6 Ammonia Converter and Separation Unit
Area 6 consists of 4 major equipments which is compressor, ammonia converter, absorber column and distillation column. The compressor set the pressure to ideal condition of 250 bar for ammonia synthesis in the converter. The synthesis ammonia then absorb by flash with water in the absorber column. Then flow through distillation column for separation of ammonia. Then flow through the pressure knockout drum for purification of ammonia by water drainage. The ammonia then flow through stages of cooler and valve to decrease temperature and pressure for the storage purpose. Then, the pure ammonia liquid will be sent to the ammonia tank which located in tank farm.
1) Outside Battery Limit (OBL) This area locates all the supplementary and supportive process systems such as utilities and wastewater treatment unit.
No 1
Area
Description This unit will supply cooling water as well as high pressure steam to the main process unit. Thus, it contains several equipments such as cooling towers and burners. This unit will process the raw water from supplier in order to produce different specification of water quality for different uses such as demineralized water etc.
Utilities
Water 2 3 Treatment Unit
Wastewater Treatment Unit
The wastewater effluent from the process unit will be sent to Wastewater Treatment Unit to be treated before being released to the environment. 118
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Quality of feed and product should be taken into considerations. Laboratory is the place where the sample for both feed and product is tested and analyzed to determine its specifications. All the result will be 4 Laboratory sent to the control room and some adjustments in controlling will be made, if needed. Thus, the distance between laboratory and control room is close. Laboratory workers will also perform an analysis regarding waste of the process before being released to nearby environment. 5 Chemical storage These vessels store chemical substances, lubricants, and catalyst pellet used for the process. Thus, it is located closed to the process unit. Storage farm or Tank Farm consists of some big tanks. 6 Storage farm These tanks store the product before being exported. Storage farm is located away from the major processing unit to avoid explosion hazard. The pump house contains pumps used to control the 7 Pump house material stream flow between the process units with the storage farm.
All the control valves for the whole process area will be controlled and monitored from this central control 8 Control room building. Even it is near to the main process area, it still can be considered as a safe place since it is provided with explosion proof doors and very thick concrete walls. 9 Emergency control room Fire water tank In case of emergency occurs in the plant, control room will be the assembly point in the process area. There is a fire water pond inside the process area nearby the utilities area. It will be used for emergency cases such as fire, explosion etc. 119
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Flares or venting area is used to vent all excess gases 10 Flares Area that are emitted from the process units and burnt before being released to environment. In our plant, the flares area is located at back of the area to avoid effect of wind blowing into non-process area. 11 Warehouse Warehouse stores all the equipments spare parts. It is placed near to the workshop to ease the maintenance job. There are some free areas allocated for the future plant 12 Expansion Site expansion. They occupy enough space for further expansion, whether for process reaction or producing the plants own utility such as steam production. There are a few zones that have been identified to be as assembly area. Assembly points are located for every 13 Assembly point personnel to gather in case of emergency occur, and the assembly areas are located in both process area and non-process area. For the non process area, the assembly points are determined to be in front of the car park and administration building compound. It is a common practice to have some alternatives way Emergency 14 Exit to exit from the chemical plant. In this site, there are three emergency exits available, two of them are provided in the process area while the other one is near to the workshop building.
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1 CHAPTER 6 WASTE TREATMENT

1.1Introduction
Waste generated in a plant are divided into three type, solid, effluent and gaseous waste. In order to obey the regulation, we need to make sure that the waste is handled according to the rules set by Department of Environment (DoE). In ammonia plant, we wont be producing much solid waste and gaseous waste since we are dealing with mixture and liquid form.
1.2Waste Identification
There are usually three types of wastes produced by chemical plant. The three wastes are Solid Waste, Liquid Waste (effluent) and Gas Waste. 1. Solid Waste: Any of a variety of solid materials as well as some liquid in containers, which are discarded or rejected as being spent, useless, worthless or being excess 2. Liquid Waste: Waste in the form of liquid and usually is not needed anymore in a process plant. 3. Gaseous waste: Waste in form of gas and usually is not needed anymore in a process plant After doing a study of ammonia plant, we manage to identify a few o components that can be classified as waste. Below are the materials that we detected as potential waste: 1.1.1Solid Waste For our plant, theres not much solid waste produce since we are always handle the material in liquid and mixed form. However, in our plant we use some catalyst. This catalyst will need to be change after theyve reached at the end of their lifespan. However, this is not considered as mere solid waste since the catalyst is hazardous material. We need to handle the catalyst as hazardous solid waste and not mixed it 121
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with another solid waste so that the solid waste will not become another Hazardous Waste. Disposing hazardous wastes are expensive compared to Solid Waste. 1.1.2Liquid Waste In our Ammonia plant, liquid wastes are more likely since most of our materials are in liquid form. For example, the water that is disposed from the condenser is not 100% water. It usually has some other composition such as dissolved Ammonia, dissolved Carbon Dioxide and others. So this water cannot be disposed directly and needs to be treated first to reduce the amount of other component before being discharged to the ground. 1.1.3Gaseous Waste The main source of gaseous ammonia emission is from the inert gas purge and from the ammonia storage section of the ammonia plant. In the case of nonfunctioning or breakdown of the equipment, large quantity of ammonia emission increases ammonia concentration in the atmosphere.
Table 61: Identification of Waste by Operation
Source/Operation Pollutants Condenser Dissolved Ammonia CO2 Removal Carbon Dioxide Ammonia Storage Ammonia Gas
Potential Hazard May cause suffocation to aquatic life form May cause suffocation to aquatic life form Ammonia that comes into contact with human skin will react to form Ammonium Hydroxide and can cause corrosion. Can cause death if inhale at a long time.
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1.1.4Others Waste There is also another waste that needs to be taken into account such as:
Table 62: Miscellaneous Waste
Waste Types Solid Liquid
Sources Non-process area Cooling Wastewater Non-process area Backwash Oil from mechanical parts Steam Reboiler
Contaminant Municipal solid waste (garbage) Water with High Temperature Domestic wastewater Contaminated water Oil from mechanical parts may mix with water thus contaminated the water Vent gas, usually water vapor
Gas
1.2Laws and Regulations

Generally, the statutory requirement that needs to be complied is the Environmental Quality Act 1974 (EQA 1974). Under this act, all industries in Malaysia have to comply with the regulations stated under this act and the failure to do so will cause them penalty. There are 3 main subsidiary regulations that need attention, namely 1. 2. 3. Environmental Quality (Clean Air) Regulation 1978 Environmental Quality (Sewage and Industrial Effluent) Regulation 1979 Environmental Quality (Scheduled Waste) Regulation 1989.
Following the enactment of the act, the Department of Environment (DOE) is established to administer and enforce the act. Hence, any consultation regarding environmental issues and regulations should be made to them. 1.1.1Liquid Wastes The effluent that to be released to Malaysian water needs to comply with Environmental Quality (Sewage and Industrial Effluents) Regulations, (Regulation 8(1) Third Schedule, Standard A, EQ 1979). Since we decided to discharge the waste to the drain, we need to make sure that the wastes complied with the regulation as 123
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stated in the law. This is also to make sure that no bad effect will be caused to the surrounding area. The main consideration of wastewater treatment system is the COD and BOD value. Below are the Standard sets in Environmental Quality (Sewage and Industrial Effluents) Regulations. Be informed that the list present below are the list of the parameter needed to be taken note in Ammonia Plant and not representing all the compound mention in the law book.
Table 63 Standard A and B Values of Environmental Quality Act 1974
Parameter Temperature pH value BOD5 at 20C COD Suspended solids Oil and Grease
Unit C mg/L mg/L mg/L mg/L
Standard A 40 6.0 - 9.0 20 50 50 Not Detectable
Standard B 40 5.5 9.0 50 100 100 10
Since the waste water are going to be discharged in a drain in Baluk area which are near to Sungai Baluk, according to regulation, the Standard A will applied to the effluent from Ammonia Plant 1.1.2Solid Wastes Environmental Quality (Scheduled Wastes) Regulations 1989 requires that scheduled wastes be treated and disposed of at facilities approved by Department of Environment (DOE). Presently most local authorities in Malaysia dispose solid wastes in landfills. For industry, waste is normally sent to Kualiti Alam Sdn Bhd which responsible in handling scheduled waste and waste disposal. The off-site treatment and disposal of scheduled wastes is operated by the Integrated Scheduled Waste Management Centre (WMC) at Bukit Nanas, Negeri Sembilan. There are many ways for handling the solid wastes. For non-hazardous solid wastes, we can send the waste for incineration, solidification or send to a landfill. For Hazardous Solid Wastes, it is necessary to send it for a physical or chemical treatment first to be 124
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transformed into solid waste or other form that wont affect peoples life negatively. In Malaysia, Kualiti Alam Sdn. Bhd are responsible in handling industrys related wastes. As a matter of fact, the facility has been awarded 10 years consensus until 2010 to treat all scheduled wastes generated in the country. 1.1.3Gaseous Wastes Environmental Quality (Clean Air) Regulation 1978 has lined out rule about the limit of certain component that needed to be aware of its emission to environment. However, none of the component listed are present in our Ammonia plant. However, we cannot be sure if the dark smoke will be produced in the plant. If the dark smoke does produced, then the limits shall follow the standards. Table below is the standards for dark smoke permissible in plants.
Table 64: Standards of Dark Smoke permissible in plants
Substance Emitted Dark Smoke
Source of Emission
Standards
Equipment using Ringelmann non-solid fuel Chart No. 1 for new facilities Ringlelman Chart No. 2 for existing facilities
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1.2Wastewater Treatment Strategy

In handling the wastes, we have divided the section into three parts. First are the Effluent treatment, Solid Waste Handling and Gaseous waste treatment.
1.3Waste Water (Effluent) Treatment Process Flow Diagram
Figure 61: Waste water Treatment Flow Diagram
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1.3.1Waste Water Treatment Process Waste water for an Ammonia plant is usually storm water, cooling water and wastewater in manufacturing process. Generally, the effluents produced by Ammonia plant are not very hazardous to the environment. In treating the effluent, we have several steps that need to be done before the effluent can be discharged to the drain. First, the contaminated water will go through oil separator to remove the oil that is mixed with the effluent. The oil may come from mechanical part in the plant. The oil that has been separated from waste water may be disposed accordingly or being reuse for another purpose. After oil removal, the waste water will be sent to the equalization basin. Here, the waste water will be mixed with sewer water. The purpose of this basin is to reduce the variation in the flow and the composition of the waste water before sending it to the next stage of treatment. It can also act as stabilizer of the flow as well as create uniformity of the inlet in term of quality of water such as BOD. Next, the wastewater will be sent to the neutralization basin. The pH of the waste water will be reduced or will be increase accordingly until the waste water become neutral using Caustic Soda (NaOH) and Sulfuric Acid (H2SO4). Other than that, we also add Alum to act as flocculants to bring together many suspended solid to form a larger suspended solid The wastewater will then send into coagulant basin. The waste water will be mixed with polymer to bring together the large suspended solid from the flocculation process to larger suspended solid. The wastewater will be separated between the waste water and sludge in the thickener. The sludge will be sent to the sludge basin while the effluents are sent to final pH adjustment basin. The sludges in the sludge basin are then sent to dehydrator to further remove the effluent leaving only the sludge cake. The remaining effluent will be sent to equalization basin along with the sewer water. The sludge cake will be sent out to Kualiti Alam Sdn Bhd as solid waste. In Final pH Adjustment Basin, the pH of the waste water are measured to make sure that the waste water are safe to be discharged to environment. If the pH are measured to be more or less than the standard, Caustic Soda (NaOH) and Sulfuric Acid (H2SO4) will be added to make sure that the pH of the waste water are safe to be
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released to the drain. Waste water is then sent to Treated Waste Water Effluent Basin before being discharged to the drain. 1.3.2Solid Wastes Handling Dewatered sludge from waste water treatment and catalyst is classified as scheduled wastes from specific source under Environmental Quality (Scheduled Wastes) Regulations, 1989. Other scheduled wastes are spent chemicals, lab chemicals and batteries containing materials that are hazardous to the environment. Kualiti Alam Sdn. Bhd. is the designated company providing off-site scheduled waste treatment disposal services in Peninsular Malaysia. Its waste management centre is located at Bukit Nanas in Negeri Sembilan. Table 9.5 below shows the waste classification lined by Kualiti Alam.
Table 65: Waste Classification Lined by Kualiti Alam
Waste Group A
Waste Type Mineral Oil Wastes Wastes containing lubricating oil, hydraulic oil, etc. Organic Chemical Wastes Containing Halogens and/or Sulphur > 1% Freon, PVC wastes, chloroform, solvents, capacitors and transformers containing PCB, etc. Waste Solvents Containing Halogens and/or Sulphur < 1% Acetone, alcohols (eg. ethanol, methanol), benzene, turpentine, xylene, etc. Waste should be pumpable, containing < 50% water and 18MJ/kg calorofic value Organic Chemical Wastes Containing Halogens and/or Sulphur < 1% Glue, latex, paint, phenol, printing ink, synthetic oils, soap, epoxy, etc. Wastes Containing Mercury Mercury, vapour lamps, COD-fluids, mercury batteries, etc. Pesticide Wastes Insecticides, fungus and weed killers, rat poison, etc Inorganic Wastes Acids, alkaline, sodium hypochlorite, inorganic salts, metal hydroxide sludge, chromate and cyanide waste, etc. 128
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Miscellaneous Medicine wastes, lab-packs, asbestos wastes, mineral sludges, isocyanates (MDI,TDI), batteries, etc.
Based on the constituents in the waste generated in our plant, it falls under Group Z. Table 66 below is the price set by Kualiti Alam for incinerating the solid waste
Table 66: Organic Wastes for Incineration
Packaged Wastes* Waste Group Pumpable liquid per tonne RM A B C H/Z T

PP Bag
Bulk Wastes Pumpable liquid per tonne US$ 947 734 734 RM 630 1,800 US$ 166 474 RM 2,700 US$ 711 Solid
Solid
US$ 213 829 355 497 497
RM 3,600 2,790 2,790
810 3,150 1,350 1,890 1,890
Note: Packaged waste refers to wastes packed in standard 200-litre drums or 1m3
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Aside from sending for incineration, we can also send the waste for landfill. Table below show the table for the price of landfill Packaged Wastes* Waste Group RM X/Z 495 per tonne US$ 130 RM 450 Bulk Wastes per tonne US$ 118
We also have to consider the transportation cost of the wastes. Currently, the price set by Kualiti Alam is RM 77/tonne for Gebeng area. Sludge is usually being turned to a suitable sludge cake for ease of loading into plastic lined drums before being transported to the Solid Waste Storage Building. They will then being transported to Kualiti Alam Sdn. Bhd. (KA), Bukit Nenas, Negeri Sembilan Darul Khusus for further treatment or disposal to landfill. Proper packaging is vital for the safe transportation and handling of hazardous waste. The waste producer shall be responsible for the correct packaging, labeling, transportation and specification of the waste as stated in the Environmental Quality (Scheduled Wastes) Regulations 1989 and is also in line with Kualiti Alam's effort to obtain the ISO 9002 and ISO 14001. The following rules of thumb apply when selecting the appropriate packing: i. Solid waste and empty contaminated container: Open top drums (steel/plastic) with covers and clamp. ii. Dry solid waste and contaminated rags: One ton PP bags. Standard packaging is: i. Open top drums with clamp for solid waste: a. Maximum dimensions: Height - 90 cm, Diameter - 60 cm b. Drums should not to be filled more than 10 cm from the top 130
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c. Drums must not be used for free fluids. ii. One ton PP bags: a. Must be double liner b. Bags not to be filled more than 10 cm from the top. c. Bags must not be used for free fluids. Choice of appropriate packaging: i. ii. The packaging must be robust and capable of withstanding transportation by lorry. In order to qualify as robust, the packaging must be capable of withstanding normal chemical reaction. iii. Packaging should be leak-proof. iv. The packing is not weakened by bulging, corrosion or tear. 1.1.1Labeling of packaging: A few simple rules apply to the labeling of waste containers. There must be no room for doubt as to the waste category in any given packaging. The labeling must adhere to the Third Schedule (Regulation 8) of the Environmental Quality (Scheduled Wastes) Regulations 1989. i. All obsolete marks, hazard label, etc must be removed, erased. ii. The packaging to be marked on the side with the following information: a. Consignment number (e.g. 123456 - 001) b. DOE Code (e.g. N 151) c. Warning label corresponding to the type of waste iii. The label must be square in shape and set at an angle of 45 degrees. The dimension of the label shall not be less than 10cm by 10cm except where the size of the container or package warrants a label of a smaller size. iv. The label may be of the following types:a. Stick on b. Metal Plate c. Stenciled or printed on the container or package i. All labels shall be able to withstand open weather exposure without a substantial reduction 131
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ii. In case of waste capable of presenting two or more hazards, all the hazards must be clearly identified and the waste labeled accordingly. iii. All marking on the packaging must be clear and easy to identify. 9.5.2 Domestic Waste Domestic or municipal waste usually does not contain hazardous materials. However, certain wastes from process operation may contain soil- polluting compounds such as rags and gaskets. The waste categorized under domestic waste are; office waste, canteen waste, maintenance waste, production waste and landscape waste. The waste is disposed via contractors assigned by local authorities.
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1 CHAPTER 7 PROCESS ECONOMICS AND COST ESTIMATION

1.1Introduction
Process economics and cost estimation is carried out with a purpose to decide whether it is economically justified to invest in this ammonia production plant. In this particular chapter, the economics of carrying out of the plant will be discussed; the capital costs, operating costs and economic potential will be estimate. The plant lifetime are fixed at 20 years. According to Malaysian Industrial Development Authority (MIDA): A person carrying on petroleum upstream operations is subject to a Petroleum Income Tax of 38%. With effect from the year of assessment 2010, the assessment system on income derived from upstream petroleum and self assessment system. Income tax for the year of assessment 2010 based on income received in 2009 shall be allowed to be paid by instalment for 5 years (Source: http://www.mida.gov.my/en_v2/index.php?page=company-tax, retrieved on 14th July 2011)
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1.2 Capital cost/ Capital Expenditure (CAPEX)

The total purchase cost of the major and minor equipment are summarized in Table 1
Figure 71: Estimated cost for equipment
Equipment Reactor 1, R-101 Reactor 2, R-102 Reactor 3, R-103 Reactor 4, R-104 Reactor 5, R-105 Reactor 6, R-106 Heater, E-101 Heater, E-102 Heater, E-103 Heat Exchanger, E-103 Heat Exchanger, E-104 Heat Exchanger, E-105 Cooler, E-201 Cooler, E-202 Cooler, E-203 Cooler, E-204 Cooler, E-205 Cooler, E-206 Cooler, E-207 Cooler, E-208 Cooler, E-209 Cooler, E-210 Cooler, E-211 Carbon dioxide Remover, C-101 Regeneration Column. C-102 Pressure Knockout Drum, V-102 Pressure Knockout Drum, V-103
Cost,$ (USD) 1,528,602.21 2,124,890.10 1,561,745.08 1,134,215.52 1,134,806.93 2,919,495.45 5,262,457.13 13,736,204.73 931,693.31 1,214,704.04 982,789.59 922,883.69 2,016,000.00 2,016,000.00 2,016,000.00 2,016,000.00 2,016,000.00 2,016,000.00 2,016,000.00 2,016,000.00 2,016,000.00 2,016,000.00 2,016,000.00 235,459.65 235,459.65 679,782.87 679,782.87 134
RM 4,616,378.66 6,417,168.10 4,716,470.13 3,425,330.86 3,427,116.92 8,816,876.26 15,892,620.53 41,483,338.27 2,813,713.79 3,668,406.19 2,968,024.57 2,787,108.75 6,088,320.00 6,088,320.00 6,088,320.00 6,088,320.00 6,088,320.00 6,088,320.00 6,088,320.00 6,088,320.00 6,088,320.00 6,088,320.00 6,088,320.00 711,088.13 711,088.13 2,052,944.28 2,052,944.28
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Pressure Knockout Drum, V-104 Pressure Knockout Drum, V-105 Pressure Knockout Drum, V-108 Pressure Knockout Drum, V-109 Pressure Knockout Drum, V-110 Compressor, K-101 Compressor, K-102 Compressor, K-103 Compressor, K-104 Compressor, K-105 Expander, K-106 Expander, K-107 Valve Product Separation Delivery Cost Total(PCE)
679,782.87 679,782.87 679,782.87 679,782.87 679,782.87 20,241,836.16 28,225,701.08 28,026,675.30 21,401,165.00 91,994,147.33 8,640,000.00 8,640,000.00 2,808,000.00 5,164,992.00 3,031,824.50 279,034,228.51
2,052,944.28 2,052,944.28 2,052,944.28 2,052,944.28 2,052,944.28 61,130,345.21 85,241,617.25 84,640,559.39 64,631,518.31 277,822,324.93 26,092,800.00 26,092,800.00 8,480,160.00 15,598,275.84 9,156,110.00 842,683,370.19
In addition to the total equipment cost, the fixed capital for the project also includes design and engineering fees, contractors fees and contingency. It is once only cost that is not recovered at the end of the project life other than scrap value. The detailed factorial method gives the estimation of fixed capital cost based on the factors given in Table 71.
Table 71: Typical Factors (James M. Doughlas, 1988)
Items f1 Equipment erection f2 Piping f3 Instrumentation f4 Electrical 0.40 0.70 0.20 0.10 135
Factor
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f5 Buildings f6 Utilities f7 Storages f8 Site development f9 Ancillary building Total factor +1 Physical plant cost (PPC)
0.15 0.50 0.15 0.05 0.15 3.00 359,302,500
The indirect costs for the proposed plant consists of design and engineering costs, which covers purchasing, procurement and construction supervision fee, contractors fees and contingency allowances. The factors are shown in Table 72
Table 72: Typical Factors for Plant (Douglas, 1988)
Items f10 Design and Engineering f11 Contractor fee f12 Contingencies Total Factor + 1 Fixed capital cost, FCI
Factor 0.08 0.03 0.05 1.18 416,790,900.00
Fixed capital = PCE(1 + f10 + f11 + f12) = USD$ 416,790,900.00 1.2.1Working Capital Working capital is the additional investment needed, over and above the fixed capital, to start the plant up and operate it to the point when income is earned. It includes the cost of start up, initial catalyst charges, raw material and intermediate in process, and others. To determine the working capital for Ammonia plant, 5% of fixed capital to cover cost of initial raw material charge is allowed (Coulson and Richardson, 1996). Working capital, WC = USD$ 416,790,900.00 x 0.05 = USD$ 20,839,545.00 Startup cost, SC = USD$ 416,790,900.00 x 0.08 = USD$ 33,343,272.00 136
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Total investment required for the project = fixed capital + working capital +startup cost =USD$416,790,900.00 + USD$20,839,545.00 + USD$33,343,272.00 = USD$ 470,973,717.00
1.3Annual Operating Cost

1.3.1Manufacturing Cost Cover of variable operating costs including raw materials, miscellaneous operating materials, utilities, shipping and packaging cost. 1. Raw materials The raw material used in ammonia production including of natural gas, air and steam. The cost of raw material is estimated from the flow rate of natural gas needed to produce 678,810 tonnes of ammonia annually. (the current price is based on ICIS website) a. Natural gas price Natural gas used for production Cost of natural gas used annually USD$/year b. Catalyst As there is no price available, we assume 25% of total price of natural gas used. Thus, Cost of catalyst used/3year 2. Utilities a. Steam water As for hot utilities and cold utilities, the value of these utilities got from heat energy section where Total cold utilities Total hot utilities = 45,972.25 kW = 57,401.45 kW = 0.25 X 1,259,738.093 USD$/ = 314,934.52 USD$/year = 0.0031USD$/kg = 405,060,480.0 kg/year =1,259,738.093
The cost for steam used in plant is due to Centralised Utility Facility (CUF), Gebeng reference where the cost is RM63/kg 137
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Total cold utilities Total hot utilities Total b. Electricity The electricity cost is estimated Typical Factor Estimated electricity cost
= RM 823,534.74 = RM 1,028,274.85 = RM 1,851,809.59 = 616,242.79 USD$/year
= 0.10 = 35,027,215 USD$/year
Table below shows the variable operating cost of the plant
Table 73: Summary of Manufacturing Cost
Manufacturing expenses Raw material (natural gas) Catalyst and solvent Steam Cooling Water Electricity Miscellaneous Total variable cost
USD/year 1,259,738.093 314,934.52 27,202,242.00 900,000 2,083,954.50 2,500,745.40 33,946,679.99
Table 74: Direct production cost
Direct production cost Maintenance, take as 2% of fixed capital Operating labour Plant overheads, 50% of operating labor+supervision+maintainance Laboratory, take as 5% of operating labor Insurance, 0.4% of fixed capital Local taxes, 1% of fixed capital Operating Suppliers, 10% maintenance & repair Direct Supervision & clerical labour , 138
USD/year 8,335,818.00 480,000.00 4,431,909.00 24,000.00 16,671,636.00 4,167,909.00 833,581.80 48,000.00
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10% operating labor Royalties, 1% of fixed capital Total Fixed cost Total Expenses, raw material + utilities + maintenance + supply + labor+ supervision + lab charge 390,833.80 35,383,687.60 39,083,379.89
Table 75: General expenses of ammonia plant
General expenses Administration cost, 10% of operating labor, supervision and maintenance Distribution and selling expenses,
5% of total fixed cost
USD/year 886,381.80 1,769,184.38 1,061,510.63 3,717,076.81 USD/year 69,330,367.59 73,047,444.40 USD/year 241,633,497.00 50,729,580.00 292,363,077.6
Research and development, 3% of fixed cost Total general expenses Total manufacturing expenses Total variable cost + Total fixed cost Total production cost, TPC
Table 77: Revenue generated
Table 76: Total manufacturing expenses
Revenue generated, product Ammonia Carbon dioxide Total
1.1Process Economic Analysis

The feasibility of the ammonia plant will be evaluated in economics point of view. Some of the basic investment rules that will be used are: 1. Net Present Value (NPV) 2. Payback period 139
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3. IRR From the previous section, these values are estimated: Plant cost (total investment) Annual operating cost : USD$ 241,567,000.00 : USD$332, 444,323.10
The forecast income from the sales of ammonia will be as below Income : production rate x ammonia price : 671200tonnesx360USD$/tonne : USD$241,632,000 In doing the analysis, some assumptions were made: 1. All the ammonia produced are sold by the end of each year 2. The selling price of ammonia is USD$360/tonne and is going to remain constant throughout the lifetime of the project 3. The annual production cost (COM) is assumed to remain constant throughout of the project 4. The tax rate is linear throughout the lifetime of the project 38% 5. Depreciation rate is assumed to be linear throughout the life time of the project. 6. Annual depreciation = equipment cost/plant lifetime = USD$241,567,000/20years = USD$12,078,350 annually 7. The discount rate is 10
1.1Net Present Value (NPV)

The idea of time value of money is grounded due to the fact that the value of money can increase or decrease over time. The changes that happen to the value of money can be explained by the interest rate, expressed as an annual percentage. Thus, in order to determine the cash flow for the plant, all the costs are firstly converted to a common time. The future project cash flow will be discounted to an equivalent present value using the formula: NPVi=0nCt(1+i)i= 140
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Where, Ct NPV T I : Cash flow occurring at that time : Net present value : Number of years in the future : Discount rate
In our case, the desired minimum attractive rate of return, (MARR) is 10%. In order to evaluate the economics of the ammonia plant, the cumulative discounted cash flow is proposed to be used. The project will be considered as profitable when the calculated NPV is larger than zero which shows that the return of the project is larger than the expected rate
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Table 78:Non-discounted cash flow (i=0%) Year 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Capital cost ($USD) 470973717.00 20,839,545 41,679,090 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 292,363,077.60 73,047,444 73,047,444 73,362,378 73,047,444 73,047,444 73,362,378 73,047,444 73,047,444 73,362,378 73,047,444 73,047,444 73,362,378 73,047,444 73,047,444 73,362,378 73,047,444 73,047,444 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 41,679,090 219,315,633 219,315,633 219,000,699 219,315,633 219,315,633 219,000,699 219,315,633 219,315,633 219,000,699 219,315,633 219,315,633 219,000,699 219,315,633 219,315,633 219,000,699 219,315,633 219,315,633 83,339,941 83,339,941 83,220,266 83,339,941 83,339,941 83,220,266 83,339,941 83,339,941 83,220,266 83,339,941 83,339,941 83,220,266 83,339,941 83,339,941 83,220,266 83,339,941 83,339,941 135,975,693 135,975,693 135,780,434 135,975,693 135,975,693 135,780,434 135,975,693 135,975,693 135,780,434 135,975,693 135,975,693 135,780,434 135,975,693 135,975,693 135,780,434 135,975,693 135,975,693 177,654,783 177,654,783 177,459,524 177,654,783 177,654,783 177,459,524 177,654,783 177,654,783 177,459,524 177,654,783 177,654,783 177,459,524 177,654,783 177,654,783 177,459,524 177,654,783 177,654,783 Sales Income A(SI) Operating Cost A(OI) Depreciation A(BD) Income before tax, A(IBT) Income Tax (38%) Income after tax, A(IAT) Cash Income, A(CI) $USD Net Cash Flow, A(NCF) $USD -470973717 -20839545 -41679090 177654783 177654783 177459524 177654783 177654783 177459524 177654783 177654783 177459524 177654783 177654783 177459524 177654783 177654783 177459524 177654783 177654783 Cumulative cash flow, $USD 0 -470,973,717 -491,813,262 -533,492,352 -355,837,569 -178,182,787 -723,263 176,931,519 354,586,302 532,045,825 709,700,608 887,355,391 1,064,814,914 1,242,469,697 1,420,124,479 1,597,584,003 1,775,238,785 1,952,893,568 2,130,353,091 2,308,007,874 2,485,662,657
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Figure 72: Cash flow diagram for non-discounted rate, i=0% Table 79: Discounted cash flow for i=10%, i=20% and i=30%
year of completio n 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Discounted cash flow for 0% cumulative 0.00 -470,973,717.00 -491,813,262.00 -533,492,352.00 -355,837,569.42 -178,182,786.83 -723,263.33 176,931,519.26 354,586,301.84 532,045,825.35 709,700,607.93 887,355,390.51 1,064,814,914.0 2 1,242,469,696.6 0 1,420,124,479.1 9 1,597,584,002.6 0.9091 0.8264 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 428,162,206.12 -17,221,799.99 -31,313,500.32 121,338,216.51 110,305,854.51 100,175,901.02 91,172,434.42 82,875,956.08 75,260,583.92 68,485,918.69 62,268,001.30 56,538,604.19 51,466,590.51 46,776,504.25 42,483,809.93 Discount factor, fd i= 10% discounted cash flow for 10% (A(NCF)*fd) Discounted cash flow for 10% cumulative 0.00 -428,162,206.12 -445,384,006.11 -476,697,506.43 -355,359,289.92 -245,053,435.42 -144,877,534.40 -53,705,099.98 29,170,856.10 104,431,440.02 172,917,358.70 235,185,360.00 291,723,964.19 343,190,554.70 389,967,058.96 432,450,868.88 0.7692 0.5917 0.4552 0.3501 0.2693 0.2072 0.1594 0.1226 0.0943 0.0725 0.0558 0.0429 0.0330 0.0254 0.0195 362,272,983.12 -12,330,758.78 -18,972,321.77 62,196,939.38 47,842,432.95 36,769,613.27 28,318,172.34 21,780,476.34 16,734,433.07 12,879,971.74 9,913,136.87 7,613,013.56 5,862,607.83 4,512,431.48 3,460,460.71 Discount factor, fd i= 30% discounted cash flow for 30% (A(NCF)*fd) Discounted cash flow for 30% cumulative 0.00 362,272,983.12 374,603,741.89 393,576,063.66 331,379,124.28 283,536,691.33 246,767,078.06 218,448,905.71 196,668,429.37 179,933,996.30 167,054,024.57 157,140,887.70 149,527,874.14 143,665,266.31 139,152,834.84 Discount factor, fd i= 20% discounted cash flow for 20% (A(NCF)*fd) Discounted cash flow for 20% cumulative 0.00 392,462,398.38 406,933,378.42 431,053,067.81 345,370,166.17 273,970,709.05 214,539,514.62 164,956,064.81 123,633,562.38 -89,241,906.72 -60,550,659.33 -36,638,325.60 -16,727,367.06 -116,644.89 13,722,662.67 25,239,785.75
Net Cash Flow A(NCF) 0.00 470,973,717.00 -20,839,545.00 -41,679,090.00 177,654,782.58 177,654,782.58 177,459,523.50 177,654,782.58 177,654,782.58 177,459,523.50 177,654,782.58 177,654,782.58 177,459,523.50 177,654,782.58 177,654,782.58 177,459,523.50
0.8333 0.6944 0.5787 0.4823 0.4019 0.3349 0.2791 0.2326 0.1938 0.1615 0.1346 0.1122 0.0935 0.0779 0.0649
392,462,398.38 -14,470,980.05 -24,119,689.38 85,682,901.64 71,399,457.12 59,431,194.42 49,583,449.82 41,322,502.43 34,391,655.66 28,691,247.39 23,912,333.74 19,910,958.54 16,610,722.17 13,839,307.56 11,517,123.08
143

9 1,775,238,785.2 7 1,952,893,567.8 6 2,130,353,091.3 6 2,308,007,873.9 5 2,485,662,656.5 3
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135,692,374.13 133,027,552.39 130,966,756.91 129,387,367.15 128,179,314.63 127,237,744.28
16 17 18 19 20
177,654,782.58 177,654,782.58 177,459,523.50 177,654,782.58 177,654,782.58
0.2176 0.1978 0.1799 0.1635 0.1486
38,657,680.69 35,140,116.00 31,924,968.28 29,046,556.95 26,399,500.69
471,108,549.57 506,248,665.57 538,173,633.85 567,220,190.80 593,619,691.49
0.0150 0.0116 0.0089 0.0068 0.0053
2,664,821.74 2,060,795.48 1,579,389.76 1,208,052.52 941,570.35
0.0541 0.0451 0.0376 0.0313 0.0261
9,611,123.74 8,012,230.69 6,672,478.08 5,560,594.69 4,636,789.83
34,850,909.49 42,863,140.18 49,535,618.27 55,096,212.96 59,733,002.79
Figure 73: Cumulative cash flow rate for i=10%, i=20% and i=30%
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1.1Payback Period
Payback period can be interpreted as the time required for the cumulative cash flow to cover the capital cost. Short payback period project is a good project. It shows that the project does not need much time to recover the capital cost. Figure 72 shows the non-discounted cash flow. From the figure, the simple payback period can be determined. The simple payback period (i=0%) is at the seventh (7th) year where positive cumulative cash flow is generated. While Figure 73 shows the cumulative discounted cash flow at i=10%, i=20% and i=30%. If i=10%, the payback period is at the sixth (6th) year. If =20%, the payback period is at the thirteenth (13th) year, while if i=30%, the payback period is never pay back. From this, it can be concluded, the project reasonable to be done as it gives fast payback period to recover the capital cost. The payback period of MARR=10% is at the sixth year.
1.2Internal Rate of Return (IRR)

According to Sullivan et al (2009), the IRR method is the most widely used rateof return method for performing engineering economics analyses. It is also known by several names such as investor method, the discounted cash flow method, and the profitability index. This is used to solve the interest rate that equates the equivalent worth of an alternatives cash inflows (receipt or savings) to the equivalent worth of cash outflows (expenditures, including investment cost). IRR is the value of the discount which corresponds to zero cumulative cash flow at the end of the studies period, here is 20 years. From Figure 73 , it can be seen that the cumulative cash flow will be zero at 20%<i<30%. In order to effectively estimating the value, interpolation must be made.
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Table 710: Net cash at EOY of 20 years for i=20% and i=30%
i(%) 20 30
Net cash flow at EOY of 20 year (RM) 59,733,002.79 -127,237,744.28
IRR=(0-59733002.79)(-127237744.79-59733002.79)20-30+30=26.8% Thus, the value of IRR is 26.8% which is bigger than MARR (10%). Therefore, the investment decision is justified. The ammonia production plant is profitable to be done.
1.3Sensitivity analysis
According to Sullivan, sensitivity analysis is used to explore what will happens to a project s profitability when the estimated value of study factors are changed. Figure 74 shows the sensitivity graph where the capital investment, annual revenue, annual operating cost and the useful life of the plant are tested. From the graph, it can be seen that the annual revenue is the most sensitive element. Decrement of 30% of annual revenue will give no profit to the project.
Figure 74: Sensitivity graph
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2 CHAPTER 8 CONCLUSION & RECOMMENDATION

After finishing the Final Year Design Project II (FYDP 2), it has been proven conceptually that the establishment of an ammonia production plant in Malaysia is feasible. Based on matrix comparison made, Gebeng Industrial Estate, Pahang is identified to be the best location for an ammonia production plant. This is due to the fact that the location is highly strategic compared to others, much cheaper, close to port as well as having good and complete network such as well-maintained highway, expressway and road embedded with other advantages as discussed before. The planned built plant will be operated in continuous mode, where nitrogen will react with hydrogen to produce ammonia. The reactor selected for ammonia synthesis will be catalytic fixed-bed reactor where iron oxide will be used as the catalyst. The process requires 3 types of separation process which are water removal, carbon dioxide removal and ammonia purification. The purity of ammonia is 99.4% with a 671, 200 metric tonnes production rate annually. The plant that has been proposed is economically justified and therefore it is viable for investment based on economic potential done. The calculate IRR is 26.8% which is bigger than the MARR (10%), thus justify the profitability of the plant. The plant will take about six years to recover the investment. Besides, while designing the plant, the safety and environmental rules aspects are taken into consideration. Thus, the production of ammonia project is proven to be technically possible to be done and economically profitable. It is suggested that further heat integration to be done so that the utilities cost can be reduced. Well integrated plant will minimize the purchase of utilities and raw materials and thus minimizing the operating cost. Besides, human resources department must hire workers accordingly; the usage of auto-controlled machine would further reduce the cost of workers. Other than that, maintenance must be done according to schedule to prevent unwanted incident. Practicing safe and effective work environment will further enhance the workers motivation thus improving the 147
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work quality as to mention, it is human who the most unpredictable variable in the production plant is. Ending the FYDP 2, it can be seen that the team managed to meet all the objectives of the project. The project is very important as it helps in improving and enhancing the knowledge of the team and experiencing the process of designing plant. It is an undeniable fact too that this project has improved the team presentation and communication skills via interaction between the group members and presentation done. Thus, via this project, the team managed to improve the teamwork.
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FYDP GROUP 17
REFERENCES
Ammonia properties , retrieved from the website, 15th April 2011, at http://encyclopedia.airliquide.com/Encyclopedia.asp?GasID=2 Solubility of gases on water, retrieved on 15th April 2011 from website http://www.engineeringtoolbox.com/gases-solubility-water-d_1148.html Ogden J.M Dr.Review of small stationary reformers for hydrogen production Research scientist, Center for Energy and Environmental Studies,Princeton University, Princeton, NJ 08544. Reforming and auto thermal reforming available at www.chrisgas.com and http://www.ics.trieste.it/media/139818/df6497.pdf Al-Sanadi .A. Ammonia Sales Manager-QAFCO, Ammonia Outlook Supply/Deman & Trade of Suez and Oceania, 2008 IFA Annual Conference, Paris, May-June 2010. Retrieved February 2011, at http://www.icis.com/v2/chemicals/9075154/ammonia/uses.html. Ammonia: A Global Strategic Business Report-new market research report, London, June 2011. Retrieved April 2011, at http://news.wooeb.com/NewsStory.aspx? id=717479. Clarke.R, Ammonia Prices and Pricing Information, ICIS Pricing, February 2011. Wheeler G., Ammonia Prices and Pricing Information, ICSI Pricing, February 2011. Malaysia Industrial Development Authority (MIDA), Industries in Malaysia, Petrochemical and Polymer Industry. Retrieved March 2011, at http://www.mida.gov.my/en_v2/index.php?page=petrochemical. Wu J. C., The Mineral Industry of Malaysia, U.S Geological Survey Minerals Yearbook. PETRONAS Official Website, (2011). Retrieved March 2011, at http://www.petronas.com.my/.
149
FYDP GROUP 17
Invest in Pahang, (2010). Retrieved March 2011, at http://www.investinpahang.gov.my/index.php? ch=en_investinpahang&pg=en_industrialareas&ac=9. Lembaga Pelabuhan Johor, (2011). Retrieved March 2011, at http://www.lpj.gov.my/. Land for sale Pahang, (2011). Retrieved March 2011, at http://www.mudah.my/Gebeng+Sg+Karang-6145773.htm. Property Listing, iProperty, (2011). Retrieved March 2011, at http://www.iproperty.com.my/propertylisting/486107/Kerteh_Industrial_Land_ForS ale. Property d_ForSale.
Best Available Techniques for pollution Prevention and Control in the European Fertilizer Industry, booklet No. 1 of 8. Production of Ammonia, 2000, European Fertilizer Manufacturers Association (EFMA), Ave. E. Van nieuwenhuyse 4, B-1160 Brussels, Belgium. Nielsen S.E Latest developments in ammonia production technology, Haldor Topse A/S Lyngby, Denmark Douglas J.M, (ed) (1988) Conceptual Design of Chemical Processes, Mc Graw-Hill International. Maxwell G.R (2004). Synthetic Nitrogen Products, A Practical Guide to the Products and Process. DuPont Chemical Solutions Enterprise, Memphis, Tennessee Windridge K. (1998), Mineral Fertilizer Production and the Environment part 1, International Fertilizer Industry Association Gupta R.B (2009), Hydrogen Fuel Production, Transport and Storage, CRC Press Carbon capture and storage, Bhatia, S., Granherne Pty, Ltd., Perth, Western, Australia available http://www.hydrocarbonprocessing.com/IssueArticle/713741/Home/Article.html at
Listing,
iProperty,
(2011).
Retrieved
March
2011,
at
http://www.iproperty.com.my/propertylisting/506304/Pasir_Gudang_Industrial_Lan
150
FYDP GROUP 17
Crowl D. A and Louvar J.F.,(2002) Chemical Process Safety, Fundamentals with Application, Prentice Hall international Series in Physical and Chemical Engineering Sciences Gowariker V. Krishnamurthy V. N. Dhanorkar M. Gowariker S, Paranjape. K (2009).John Wiley and Sons, Rausand M, (2004) Hazard and Operability Study, Department of Production and Quality Engineering, Norweigian University of Science and Technology (presentation) Venkatasubramanian V. Zhao J. Viswanathan. S (2000) Intelligent systems for HAZOP analysis of complex process plants, Laboratory for Intelligent Process Systems, School of Chemical Engineering, Purdue University, West Lafayette Gangopadhy R.K and Das S.K (2007) Ammonia leakage from refrigeration plant and the management practice, Wiley Interscience Hurst N.W, Young S. Donald I. Gibson H. and Muyselaar A. (1996) Measures of safety management performance and attitudes and attitudes to safety at major hazard sites
Nemerow N. L Agardy. J, Sullivan P and Salvato J.A (2009), Environmental Engineering: Environmental Health And Safety For Municipal Infrastructure, Land Use And Planning, And Industry, Joha Wiley & Sons Inc, Hoboker, New Jersey
151
FYDP GROUP 17
APPENDIX 1: PFD DIAGRAM

C-10 1 E-10 1 E-1 0 4 E-1 0 7 E-11 0 C O OLE R E-11 3 C O OL E R E-1 16 K-1 0 2 K-1 0 5 R-1 0 1 R-1 0 4 V-1 0 1 V-1 0 4 V-1 0 7 V-11 0 C A R B O N D IO X ID EH E A T E R R E M OV AL C-1 02 E-1 0 2 H E A T E X C H A N G E RC O O L E R C O O LE R C O M P R E S S O R O M P R E S S O R R IM A R Y R E F O R M ELO W T E M P E R A T U F LE S H S E P A R A TK NRO C K O U T D R U MD IS T ILL A T IO N K N O C K O U T D R U M C P R R A O S H IF T C O N V E R T E R TAN K COLUM N E-1 17 K-1 0 3 K-1 0 6 R-1 0 2 R-1 0 5 V-1 0 2 V-1 0 5 V-1 0 8 T-1 0 1 E-1 0 5 E-1 0 8 E-11 1 C O OLE R E-1 12 C O OLE R E-1 14 C O OL E R
R E G E N E R A T IO N H E A T E R C OL U M N E-1 0 3
H E A T E X C H A N G E RC O O L E R E-1 0 6 E-1 0 9 H EATE R
C O O LE R C O M P R E S S O R E X P A N D E R E C O N D A R Y R E F O R M E M E T H A N A T O R K N O C K O U T D R UKM O C K O U T D R UKM O C K O U T D R U A M M O N IA S T O R A G E S R N N M
H E A T E X C H A N G EC O O L E R R
E-1 15 K-1 01 K-1 0 4 K-1 0 7 R-1 0 3 R-1 0 6 V-1 0 3 V-1 0 6 V-1 0 9 C O O L E RC O M P R E S S OCRO M P R E S S O R E X P A N D E R H IG H T E M P E R A T U RAEM M O N IA S Y N T H E S IS O C K O U T D R U M A S A B S O R B E R N O C K O U T D R U M KN G K S H IF T C O N V E R T E R R EA CTO R C O LU M N
S19 S20
S02
S07
E-1 09
C A R B O N D IO X ID E S T OR A G E
S15 S16
S TEA M
S01 S03 S04 S05
A IR
S06 S08
NA TUR A L GAS E-1 01 E-10 2

S09 S10
W A TE R
S61
E-1 0 6
S17
E-1 0 8
R-10 1
S11 S12
R-1 0 4
E-1 0 7
S18
C-1 0 1
GA S ST EA M
C-1 0 2
K-1 01
R-10 2 E-1 0 3
S14
V-1 0 2
V-1 01
S22
S62
S TE A M
S27
R-10 3
S36 S28 S29 S31
S21
E-11 1
S32 S33
S13
S35
E-1 0 4
S43
E-10 5
S23
S24
S25
E-1 1 2 K-10 2
S37
E-1 10 V-1 03 V-1 06

S41 S42 S39 S40 S26
K-10 3 K-10 4
R-1 0 5
W A S TE W A T E R TR E ATMEN T PU R GE
WA TER
S44 S45 S46 S47 S56 S52 S57 S58 S59
S38
V-1 04
K-1 0 5
V-1 0 5
S30
R-1 0 6 K-1 07 K-1 0 6
E-1 1 3
S49
S50
E-1 1 5
S53 S55
E-1 1 6
E-1 1 7
S60
E-1 1 4
S34
V-1 0 7 V-1 08
S48 S51
V-1 0 9
S54
V-1 1 0 T-1 0 1
N a me S0 1 S0 2 S 0 3 S 0 4 S0 5 S0 6 S 0 7 S 0 8 S0 9 S10 S11 S1 2 S1 3 S 1 4 S 1 5 S 16 S 17 S18 S1 9 S2 0 S 2 1 S 2 2 S 23 S 24 S 2 5 S 2 6 S2 7 S2 8 S29 S3 0 S 31 S 3 2 S 3 3 S 34 S3 5 S36 S37 S3 8 S 3 9 S 4 0 S 41 S4 2 S4 3 S4 4 S4 5 S4 6 S 47 S 48 S4 9 S5 0 S5 1 S5 2 S 53 S5 4 S5 5 S5 6 S5 7 S5 8 S 59 S60 S6 1 S6 2 Vap Fr ac 1 1 1 1 0 .5 84 6 1 1 1 1 1 1 1 1 1 1 1 0 .81 38 1 0.7 5 110 .77 0 2 0 1 1 1 0.9 9 7 9 0 1 1 0.9 7 83 0 1 1 0. 98 8 8 0 1 1 1 1 1 1 1 1 1 1 1 1 0. 97 78 0 1 0. 9 68 6 0 1 0. 94 53 0 1 0 0 0 0 0 0 1 T [C] 2 5 50 0 3 5 5.4 7 5 0 58 .19 79 0 7 9 0 78 9.9 1 78 9 .9 1 05 6 3 5 0 45 2 3 5 1.5 8 9 .4 3 2 0 0 2 08 .8 4 10 . 84 8 0 22 1 90 11 0 1 1 0 1 1 0 3 20 3 27 1 1 0 1 1 0 11 0 2 06 .7 6 1 1 0 11 0 1 10 2 07 .4 3 1 1 0 1 10 11 0 17 9 .87 3 6 0 4 16 .7 1 7 8.6 9 4 3 3 4 33 4 3 3 4 33 43 33 39 .1 3 4 6.3 9 1 20 1 20 1 20 11 0 1 10 1 10 9 2 92 92 4 2 3 8 34 30 4 2 0 25 3 50 P [kP a ] 3 92 2 5 40 0 39 22 39 02 2 92 2 2 90 2 3 52 0 29 0 2 4 92 2 4 42 2 44 00 3 92 2 3 89 2 38 72 38 52 3 2 22 3 2 02 34 02 34 02 3 38 2 33 82 33 82 3 36 2 3 22 2 3 20 2 32 0 2 3 20 2 6 08 3 .860 6 3.860 6 3.86 0 63 .81 15 211 1 50 111 5 0111 50 11 89 77 1 89 47 19 46 0 25 29 8 2 00 00 19 46 01 94 60 19 46 01 94 6 0 84 5. 5 6 85 .6 37 60 3 7 60 3 76 0 37 3 0 37 30 37 30 37 00 3 70 0 3 70 0 36 7 0 29 2 0 2 1 70 21 70 1 42 0 16 6 69 1 66 59 8 3 M o le Flo w [kgm ole / h] .18 78 4 .21 17 12 1 17 12 15 17 2 15 17 2 4 04 1 1 92 1 319 21 3 20 73 0 2 07 30 20 73 0 20 73 0 2 07 30 2 07 302 0 7 3020 73 029 10 .81 78 19 17 81 94 09 5 .51 37 23 13 72 31 36 151 36 1 528 .2 1 613 58 7 13 58 7 1 35 8729 4 .6713 29 2 1 32 921 3 29 21 48 . 4813 14 41 31 44 1 31 44 56 09 8 56 09 8 5 07 72 45 21 5 6 0. 842 95 4 5 56 .8 55 6. 8 5 56 .8 5 5 6.8 23 .5 9 43 3 .2 4 3 3 .2 70 .8 2 2 62 .4 2 6 2.4 87 .9 3 97 4 .5 9 7 4 .5 9 7 4. 5 9 74 .5 9 74 .5 97 4.511 3 41 1 13 41 29 28 22 5 5 5 5 1 5 5 1 5 5 2 4 4 4 4 4 4 M ass Flo w [kg/ h] 5 11 44 8 25 0 0 9 39 5 0 93 95 0 9 39 2 09 3 95 16 743 26 1 4 32 6 14 0 2 6 14 0 2 61 40 2 61 40 2 6 14 0 2 61 40 2 6 1432 6 1 402 6 14 1 2 81 05 9 80 36 9 8 03 673 77 8 2 42 58 24 25 1 2 4 2 58 24 2 5 8 0 8.2 9 2 3 75 0 2 3 75 0 2 37 50 0 7.9 18 44 2 18 44 1 1 8 44 2 67 4 .4 1 5 76 1 1 57 67 1 57 67 12 79 2 12 79 2 1 27 92 1 7 92 3 08 96 70 27 48 6 8 4 86 8 8 689 48 68 16 4 .2 70 49 27 0 4 97 9. 8 7 248 97 24 97 6. 6 74 88 47 488 47 4884 7 4884 7 488 4 74 8 04 3 14 04 3 14 15 2 2 2 5 1 6 0 3 3 3 3 3 3 0 3 0 1 1 1 1 8 1 5 1 1 1 53 1 1 2 1 7 1 5 5 5 4 2 39 9 9 94 2 92 2 89 4 84 2 2 H [kJ/ km o l] 93 73 .525 80 5 2 16 97 4 04 28 67 6 .536 82 13 2 58 73 59 3 135 91 5 44 77 3 1 90 97 22 76 8 19 26 6 1 50 78 1 40 751 4 4 343 81 7 .21 00 54 33 4 1 92 6-27 92 81 08 36 17 16 31 74 121 07 7 1 79 3 110 85 1 13 74 199 5 6.1-2 78 8 110 79 5 1 37 231 0 32 7-2 77 8510 75 81 28 89 1 84 11 20 61 6 22 69 3 2 18 30 21 29 02 12 90 21 29 02 47 8 8 1 27 0 8 421 13 05 7 78 7 96 71 06 4 71 69 9 4 5 44 7 8.113 98 9 73 1-9 72 4-97 5 4-97 71 -96 34 24 4 42 131 27 18 -7 -2 2 17 -1 11 11 93 10 -11 -3 M o le Fr act ion [Fraction ] AM M ON IA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .11 0 0 0 0 .9 6 0 .9 6 0 .96 0 .96 0. 51 0.9 7 0 .97 0 .5 8 0.98 0 .9 8 0. 74 0.9 9 0 .9 9 0 .9 9 0.9 9 0. 9 9 0 .9 9 0 0 ETH A N E 0.0 4 0 0 .01 0 .01 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CARB ON DIO XIDE0.0 1 0 0 0 0 .05 0. 05 0 0 .0 4 0.0 4 0 .08 0 .08 0.1 3 0.1 3 0 .1 3 0 .1 3 0. 14 0. 14 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CARB ON M O N OX IDE 0 0 0 0 0 .07 0. 07 0 0 .0 5 0.0 5 0 .07 0 .07 0.0 1 0.0 1 0 .0 1 0 .0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 H YDRO GE N 0 0 0 0 0 .37 0. 37 0 0 .2 9 0.2 9 0.4 0.4 0.4 6 0.4 6 0 .4 6 0 .4 6 0. 47 0. 47 0 0 .54 0.5 4 0 0 .71 0 .71 0 .7 0. 7 0 0 .7 0.7 0.7 0 0.7 2 0 .7 2 0 .7 2 0 0.7 2 0 .72 0 .72 0.6 9 0 .69 0.6 0. 68 0 .6 8 0.6 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M E TH A N E 0.9 3 0 0 .23 0 .23 0 .09 0. 09 0 0 .0 7 0.0 7 0 .01 0 .01 0.0 1 0.0 1 0 .0 1 0 .0 1 0. 01 0. 01 0 0 .01 0.0 1 0 0 .01 0 .01 0. 02 0 .0 2 0 0.0 2 0.0 2 0 .02 0 0.0 2 0 .0 2 0 .0 2 0 0.0 2 0 .02 0 .02 0.0 8 0 .08 0 .08 0. 09 0 .0 9 0.0 9 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N ITRO GEN 0.0 1 0 0 0 0 0 0 .7 8 0 .1 7 0.1 7 0 .15 0 .15 0.1 5 0.1 5 0 .1 5 0 .1 5 0. 15 0. 15 0 0 .18 0.1 8 0 0 .23 0 .23 0. 23 0 .2 3 0 0.2 3 0.2 3 0 .23 0 0.2 4 0 .2 4 0 .2 4 0 0.2 4 0 .24 0 .24 0.2 3 0 .23 0.2 0. 22 0 .2 2 0.2 2 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n-BU TA N E 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n-P EN TA N E 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n-H EXA N E 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PROP A N E 0.0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 OXYGE N 0 0 0 0 0 0 0 .2 2 0 .0 5 0.0 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W AT ER 0 1 0 .75 0 .75 0 .42 0. 42 0 0 .3 3 0.3 3 0 .29 0 .29 0.2 4 0.2 4 0 .2 4 0 .2 4 0. 23 0. 23 0 0 .27 0.2 7 1 0 .05 0 .05 0. 05 0 .0 5 1 0.0 5 0.0 5 0 .05 1 0.0 3 0 .0 3 0 .0 3 1 0.0 2 0 .02 0 .02 0.0 1 0 .01 0 .01 0 0 0 0 .0 4 0 .0 4 0 .04 0 .04 0. 49 0.0 3 0 .03 0 .4 2 0.02 0 .0 2 0. 26 0.0 1 0 .0 1 0 .0 1 0.0 1 0. 0 1 0 .0 1 1 1 M ass Flo w [kg/ h] AM M ON IA 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 75 6 .8 7 56 .89 24 6418 49 .3 2 .4 6 4 7 56 .8 06 1 5 0 61 5 6 159 06 15 07 9 .2 53 68 95 3 6 68 8. 1 8 488 78 48 64 2. 8 20 58 42 058 42 0584 2 0584 2 058 4 20 5 0 1 9 1 9 9 90 1 89 1 87 3 84 0 ETH A N E 32 57 .6 0 32 57 .63 25 7.6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CARB ON DIO XIDE 17 .5 0 14 17 .51 41 7.531 87 3 31 87 3 0 3 18 7 331 87 3 70 99 8 7 09 98 1 85 87 1 8 58 7 1 85 87 1 8 5812 8 1 052 8 10 1 2 81 05 0 14 1 1 1 1 7 1 5 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 CARB ON M O N OX IDE 0 0 0 0 29 07 5 29 07 5 0 2 90 7 529 07 5 37 86 0 3 78 60 7 57 2 7 57 2 75 72 75 72 1 51 4 .4 51 4 .4 0 15 14 .41 51 4 .40 .02 5 3 1 4.4 51 4 .4 0 1 15 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 H YDRO GE N 0 0 0 0 11 42 2 11 42 2 0 1 14 2 211 42 2 16 90 3 1 69 03 19 08 2 19 08 2 1 90 82 1 90 821 9 5 1819 51 8 0 1 95 18 19 51 80 .92 9 11 95 17 19 51 71 91 901 91 9 0 0 .0 0 619 19 0 19 19 0 1 91 90 0.1 2 19 19 0 1 91 901 9 19 0 0. 1 13 19 19 01 91 90 1 91 90 77 80 4 77 80 4 6 16 98 61 69 8 8 4. 958 61 3 0 30 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 P RE P AR ED :BY M E TH A N E 4 37 18 0 4 37 18 4 37 18 21 85 9 21 85 9 0 2 18 5 921 85 92 56 5 .825 65 .825 6 5.82 5 65 .8 6 5.8 65 . 8 56 5 .8 56 5 .8 0 25 65 .82 56 5 .8 0 .0 0525 6 5.8 56 5 .8 43 3 .1 33 . 1 0 3 43 3 .13 43 3 .134 3 3.10.0 0 093 4 33 .1 43 3 .1 33 . 1 .00 08 43 3 .1 3 3.134 3 3.168 66 3 68 66 3 6 86 63 68 66 3 3 3. 165 23 0 0 25 25 2 2 2 3 34 3 34 0 3 34 34 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N ITRO GEN 54 9.5 7 0 54 9.575 49 .575 49 .5 7 49 .5 78 8 29 88 88 4 888 84 8 88 84 8 8 88 48 88 84 8 88 84 8 8 88 48 8 88 488 8 8 4888 84 8 0 8 88 48 88 84 87 .70 0 58 88 40 88 84 08 88 408 88 4 00.0 5 0 888 84 0 88 84 0 8 88 401.0 0 1988 83 9 8 88 398 8 83 90 .92 6388 83 88 88 38 8 88 38 59 25 2 59 25 2 8 46 50 8 4 65 0 42 32 04 17 0 5 3 3 2 1 27 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 R EV IEW ED :BY n-BU TA N E 71 4.7 8 0 71 4.787 14 .78 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n-P EN TA N E 14 7.8 8 0 14 7.881 47 .88 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n-H EXA N E 17 6.6 3 0 17 6.631 76 .63 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 PROP A N E 1 16 2 0 11 62 11 62 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 A PP R OV ED : BY OXYGE N 0 0 0 0 0 0 2 8 44 82 84 4 828 44 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W AT ER 0 15 8 25 0 5 8 25 0 5 82 50 1 4 61 1 14 6 16 0 1 14 6 1 11 4 61 6 0 8 96 6 0 89 6689 48 6 89 48 6 8 94 86 8 94 868 5 5 9085 59 0 0 8 55 90 85 59 0 73 76 9 1 18 20 11 82 01 27 941 27 9 450 8.2 312 28 6 12 28 6 1 22 8653 0 6.86 9 79 .5 97 9 .5 79 . 5 67 3 .3 30 6 .1 0 6.143 0 6.15 31 6 .2 3 16 .2 1 6 .2 63 .2 3 .1 6 2 0 10 .1 4 25 3 4 2 53 42 53 42 53 1 0 85 3 16 8 31 6 81 29 1. 7 8 76 .3 8 7 6.3 33 3. 8 42 .5 6 4 2 .5 6 4 2 .5 6 4 2.5 6 4 2. 56 42 .56 04 3 14 04 3 14 1 1 1 6 6 1 1 6 69 2 4 43 5 53 10 5 1 1 1 1 5 5 5 5 5 5 2 2
MW I CO NS UL T AN T E NG INE E RINH D DN . B G .S
P R OD UC T IO N O F A MM ON IA P RO DU CT ION 6OF 0TO NN ES PE R Y E AR 71 ,20
SIZE
F SC M N O
D WG N O
R EV
N O NE
SC ALE
1:1
SH EET
1 OF1
152
FYDP GROUP 17
APPENDIX 2: PLANT LAYOUT

4 0.00 45.0 0 Adm inistratio n Office C afetar ia 2 0.00
Am b ulance
30.00
Pa rking Fir e Assem bly Po1 / int
Eme rg ency Wate r T ank
F ir e W ater T a nk 25.0 0
2 5.00
35.0 0
Gu ard H ou se 40.00 20.00 10 .00 EC C 45 .50
2 5.00
F ir e Sta tion
2 0.00 8 .30 C lin ic
45.00 50.00 15.00 15 .00 90.00 Coo lin g T ow er 25.0 0 20.0 0 10 .00 W o rkshop 30 .93 5 5.0 0
6 0.0 0
Are a1
Ar ea2
Ar ea3 4 0.00
Parkin /g ire Assem b ly Point F 2
26 0.0 0
65 .00
Are a5
Area4 25.0 0 C o ntr ol Roo m
L ab ora tory W arehou se / C hem ica l Sto ra ge
17 .00
Am mon ia Sto rag e T an k Area5 Ar ea6 25 .00
Pla nt Office
40.0 0
17 .00
Am mon ia Sto rag e T an k Pum p house
9 0.00
Gu ar d Ho use
Proce ss Plan t Area 90.00
2 5.00
25.0 0
40 .00
15.00
1 5.00
Exp ansio n Are a
10.00
U tilities plant
Solid W aste C h am b er
W aste w ater T re atm ent Plan t 1 5.0 0
90.0 0
20.00
25.00
F la res 3 74 .90
SCALE 1:1000 :
C om pa ny N a m e W I C o n sulta n t E ng ine e rin g P lan t: A m m onia P ro du ctio n P lan t :M S dn.B h d . C ap ac ity 67 1 00ton ne /y e ar : ,2 s
153
3 5.00
FYDP GROUP 17
APPENDIX I: SITE LOCATION
154

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CAB 4023 PLANT DESIGN PROJECT II

MAY SEMESTER 2011

PRODUCTION OF AMMONIA 671,200 METRIC TONNES PER YEAR AMMONIA

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

CERTIFICATION OF APPROVAL CAB 4023 PLANT DESIGN PROJECT II

MAY SEMESTER 2011

PRODUCTION OF AMMONIA 671,200 METRIC TONNES PER YEAR AMMONIA

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

APPENDIX I: SITE LOCATION

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

Table 11: Ammonia properties

Molecular Formula NH3

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

1 CHAPTER 2 LITERATURE REVIEW

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

1.2 Ammonia usage and processability

Industry Fertilizer For production of:

CO2 carbon dioxide Chemicals

heat, pressure (NH2)2CO urea

ammonia ammonium carbonate synthesis of:

Explosives Fibres and plastics Refrigeration Pharmaceuticals nylon,

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

Steam methane reforming

Auto thermal reaction

Natural gas, light hydrocarbon, coal and steam.

Yes Yes Yes Up to 85%

Twice CO2 emission than hydrogen product.

Lower thermal efficiency than SMR. Poisoning of catalyst Catalyst sensitive

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

to mixing of oxygen. Low cost of feedstock

Higher operating temperature.

1.2Product Market Survey

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

Figure 21: Ammonia Usage

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

Figure 22: World Ammonia Demand

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

Figure 23: Ammonia World Import

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

Figure 24: Ammonia World Export

Figure 25: Ammonia Net Price per Quarter

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

Figure 26: Malaysia Ammonia Production by Year

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY

PRODUCTION OF 671,200 TONNES OF AMMONIA ANNUALLY