741-0289 ronnie

Raw Material Costing:

Values of flow rates were obtained from material balances from both processes.
Priceinformation was sourced from ICIS chemical database. Values in red display costs.

PROCESS Mass   Cost  

Reactant
USE kg/h tons/y USD/ton USD/y
$
Methanol MTO 92000 728640 420.00 $ 306,028,800.00
$
Oxygen EO 23701 187711.92 210.00 $ 39,419,503.20
$
NaOH MTO/EO 23740 188020.8 295.00 $ 55,466,136.00
$
Nitrogen ALL 252.5 2000.0 95 $ 190,000.00
$ 401,104,439.20
http://www.methanex.com/products/methanolprice.html
http://www.icis.com/v2/chemicals/9075188/caustic-soda/pricing.html
http://www.yarnsandfibers.com/textile-pricewatch/ethylene-price-trends-reports.html#
Air Liquide Trinidad and Tobago

Catalyst Cost

Mass   Cost
Catalyst PROCESS USE
kg Required USD/kg USD
$ $
Silver Catalyst EO 15355
995 15,279,208
Palladium $ $
Acetylene H 467.28
Catalyst 400 186,912
$ $
SAPO-34 MTO 75000
30 2,212,500
$ 17,678,620
http://www.ecompressedair.com/desiccant/activated-alumina

http://www.alibaba.com/product-gs/317443667/Ethylene_oxide_catalysts_6_40meshes.html
Product Cost

Mass   Cost  
Product
kg/h tons/y USD/ton USD/y
$ $
EO 7576 60000 1,300.00 78,000,000.00
$ $
Propylene 12872 101946 1,350.00 137,626,782.48
$ $
C4 Distillate 5710 45223 700.00 31,656,240.00
$ $
Ethylene 9832 77869.44 1,300.00 101,230,272.00
$ 348,513,294.48
http://www.icis.com/StaticPages/a-e.htm

Equipment cost:

Equipment Number of items Total Cost

Compressors 7 $ 3,614,176

Pumps 9 $ 129,708

Reactors 4 $ 281,104

Columns 6 $ 17,587,436

Tanks 9 $ 21,284,897

Dryers $ 3,967,454

Heat Exchangers 23 $ 815,032.00

Knock Out Drums 4 $ 71,274

Absorbers/Strippers 7 $ 2,384,719

Catalyst 3 $ 17,678,620
$ 67,814,418.29
TOTAL
Peters & Timmerhaus 5th ed

Percentage of equipment
DIRECT COSTS cost Cost $
     
Equipment 100% USD 67,814,418.00
Equipment Installation 47% USD 31,872,776.46
Instruments 36% USD 24,413,190.48
Piping 68% USD 46,113,804.24
Electrical Equipment 10% USD 6,781,441.80
Buildings 18% USD 12,206,595.24
Land 6% USD 4,068,865.08
Yard Developments 10% USD 6,781,441.80
Service Utilities 60% USD 40,688,650.80
     
INDIRECT COSTS    
     
Engineering and Supervision 33% USD 22,378,757.94
Construction Expenses 41% USD 27,803,911.38
Contingency cost plans 44% USD 29,838,343.92
     
     
Total Fixed Capital Investment   USD 320,762,197.14
     
Working Capital 89% USD 60,354,832.02
     
Total Capital Investment   USD 381,117,029.16
VARIABLE COSTS    
Direct Manufacturing Costs    
Raw Material   USD 401,104,439.00
Operating Labour   USD 891,000.00
Operating supervision 15% USD 133,650.00
Utilities 20% USD 69,702,658.90
Maintainence/Repairs 7% USD 22,453,353.80
Operating Supplies 15% USD 3,368,003.07
Laboratory Charges 10% USD 89,100.00
Patents and Royalties 6% USD 16,501,977.61
     
Fixed Costs    
Depreciation   USD 16,038,109.86
Local Taxes 4% USD 12,830,487.89
Insurance 1% USD 3,207,621.97
     
General Costs    
Plant Overhead Costs 50% USD 11,739,001.90
Administrative costs 15% USD 133,650.00
Distribution and Marketing
Costs 10% USD 27,503,296.01
Research and Development
costs 5% USD 13,751,648.00
     
Total   USD 599,447,998.00
     
 Year 1 2 3
       
Fixed Capital Investment (USD 301,096,015.92)    
Working Capital   (USD 60,354,832.02)  
Production Cost     (USD 617,148,374.62)
Sales     USD 348,513,294.00
Gross Income     (USD 268,635,080.62)
Depreciation     USD 15,054,800.80
Taxable Income     (USD 253,580,279.83)
Tax ( 25%)     USD 63,395,069.96
Net Cash Flow (USD 301,096,015.92) (USD 60,354,832.02) (USD 175,130,409.08)
Cumulative Cash Flow (USD 301,096,015.92) (USD 361,450,847.94) (USD 536,581,257.02)
Discounted Cash Flow (12%) (USD 268,835,728.50) (USD 48,114,502.57) (USD 124,654,365.97)
Cumulative Discounted Cash flow (USD 268,835,728.50) (USD 316,950,231.07) (USD 441,604,597.04)
NPV (USD 1,359,780,841.32)    

Year 4 5 6 7
         
Fixed Capital Investment        
Working Capital        
Production Cost (USD 617,148,374.62) (USD 617,148,374.62) (USD 617,148,374.62) (USD 617,148,374.62)
Sales USD 348,513,294.00 USD 348,513,294.00 USD 348,513,294.00 USD 348,513,294.00
Gross Income (USD 268,635,080.62) (USD 268,635,080.62) (USD 268,635,080.62) (USD 268,635,080.62)
Depreciation USD 15,054,800.80 USD 15,054,800.80 USD 15,054,800.80 USD 15,054,800.80
Taxable Income (USD 253,580,279.83) (USD 253,580,279.83) (USD 253,580,279.83) (USD 253,580,279.83)
Tax ( 25%) USD 63,395,069.96 USD 63,395,069.96 USD 63,395,069.96 USD 63,395,069.96
Net Cash Flow (USD 175,130,409.08) (USD 175,130,409.08) (USD 175,130,409.08) (USD 175,130,409.08)
(USD (USD
Cumulative Cash Flow (USD 711,711,666.09) (USD 886,842,075.17) 1,061,972,484.24) 1,237,102,893.32)
Discounted Cash Flow (12%) (USD 111,298,541.05) (USD 99,373,697.36) (USD 88,726,515.50) (USD 79,220,103.13)
Cumulative Discounted Cash
flow (USD 552,903,138.08) (USD 652,276,835.45) (USD 741,003,350.95) (USD 820,223,454.08)
 Year 8 9 10 11
         
Fixed Capital Investment        
Working Capital        
Production Cost (USD 617,148,374.62) (USD 617,148,374.62) (USD 617,148,374.62) (USD 617,148,374.62)
Sales USD 348,513,294.00 USD 348,513,294.00 USD 348,513,294.00 USD 348,513,294.00
Gross Income (USD 268,635,080.62) (USD 268,635,080.62) (USD 268,635,080.62) (USD 268,635,080.62)
Depreciation USD 15,054,800.80 USD 15,054,800.80 USD 15,054,800.80 USD 15,054,800.80
Taxable Income (USD 253,580,279.83) (USD 253,580,279.83) (USD 253,580,279.83) (USD 253,580,279.83)
Tax ( 25%) USD 63,395,069.96 USD 63,395,069.96 USD 63,395,069.96 USD 63,395,069.96
Net Cash Flow (USD 175,130,409.08) (USD 175,130,409.08) (USD 175,130,409.08) (USD 175,130,409.08)
(USD (USD
Cumulative Cash Flow (USD 1,412,233,302.39) (USD 1,587,363,711.47) 1,762,494,120.54) 1,937,624,529.62)
Discounted Cash Flow (12%) (USD 70,732,234.93) (USD 63,153,781.19) (USD 56,387,304.64) (USD 50,345,807.71)
Cumulative Discounted Cash (USD (USD
flow (USD 890,955,689.01) (USD 954,109,470.20) 1,010,496,774.84) 1,060,842,582.55)

Year 12 13 14 15
         
Fixed Capital Investment        
Working Capital        
Production Cost (USD 617,148,374.62) (USD 617,148,374.62) (USD 617,148,374.62) (USD 617,148,374.62)
Sales USD 348,513,294.00 USD 348,513,294.00 USD 348,513,294.00 USD 348,513,294.00
Gross Income (USD 268,635,080.62) (USD 268,635,080.62) (USD 268,635,080.62) (USD 268,635,080.62)
Depreciation USD 15,054,800.80 USD 15,054,800.80 USD 15,054,800.80 USD 15,054,800.80
Taxable Income (USD 253,580,279.83) (USD 253,580,279.83) (USD 253,580,279.83) (USD 253,580,279.83)
Tax ( 25%) USD 63,395,069.96 USD 63,395,069.96 USD 63,395,069.96 USD 63,395,069.96
Net Cash Flow (USD 175,130,409.08) (USD 175,130,409.08) (USD 175,130,409.08) (USD 175,130,409.08)
(USD (USD
Cumulative Cash Flow (USD 2,112,754,938.70) (USD 2,287,885,347.77) 2,463,015,756.85) 2,638,146,165.92)
Discounted Cash Flow (12%) (USD 44,951,614.03) (USD 40,135,369.67) (USD 35,835,151.49) (USD 31,995,670.97)
Cumulative Discounted Cash (USD (USD
flow (USD 1,105,794,196.58) (USD 1,145,929,566.24) 1,181,764,717.73) 1,213,760,388.70)
 Year 16 17 18 19
         
Fixed Capital Investment        
Working Capital        
Production Cost (USD 617,148,374.62) (USD 617,148,374.62) (USD 617,148,374.62) (USD 617,148,374.62)
Sales USD 348,513,294.00 USD 348,513,294.00 USD 348,513,294.00 USD 348,513,294.00
Gross Income (USD 268,635,080.62) (USD 268,635,080.62) (USD 268,635,080.62) (USD 268,635,080.62)
Depreciation USD 15,054,800.80 USD 15,054,800.80 USD 15,054,800.80 USD 15,054,800.80
Taxable Income (USD 253,580,279.83) (USD 253,580,279.83) (USD 253,580,279.83) (USD 253,580,279.83)
Tax ( 25%) USD 63,395,069.96 USD 63,395,069.96 USD 63,395,069.96 USD 63,395,069.96
Net Cash Flow (USD 175,130,409.08) (USD 175,130,409.08) (USD 175,130,409.08) (USD 175,130,409.08)
(USD (USD
Cumulative Cash Flow (USD 2,813,276,575.00) (USD 2,988,406,984.07) 3,163,537,393.15) 3,338,667,802.22)
Discounted Cash Flow (12%) (USD 28,567,563.37) (USD 25,506,753.01) (USD 22,773,886.61) (USD 20,333,827.33)
Cumulative Discounted Cash (USD (USD
flow (USD 1,242,327,952.07) (USD 1,267,834,705.08) 1,290,608,591.69) 1,310,942,419.02)

Year 20 21 22
       
Fixed Capital Investment      
Working Capital      
Production Cost (USD 617,148,374.62) (USD 617,148,374.62) (USD 617,148,374.62)
Sales USD 348,513,294.00 USD 348,513,294.00 USD 348,513,294.00
Gross Income (USD 268,635,080.62) (USD 268,635,080.62) (USD 268,635,080.62)
Depreciation USD 15,054,800.80 USD 15,054,800.80 USD 15,054,800.80
Taxable Income (USD 253,580,279.83) (USD 253,580,279.83) (USD 253,580,279.83)
Tax ( 25%) USD 63,395,069.96 USD 63,395,069.96 USD 63,395,069.96
Net Cash Flow (USD 175,130,409.08) (USD 175,130,409.08) (USD 175,130,409.08)
Cumulative Cash Flow (USD 3,513,798,211.30) (USD 3,688,928,620.38) (USD 3,864,059,029.45)
 Discounted Cash Flow (12%) (USD 18,155,202.98) (USD 16,210,002.66) (USD 14,473,216.66)
Cumulative Discounted Cash flow (USD 1,329,097,622.00) (USD 1,345,307,624.66) (USD 1,359,780,841.32)
The Cumulative cash flow table yielded a net present value of (USD 1,359,780,841.32), making the
ethylene oxide plant unprofitable. This is probably due to the method of production elected, seeing
that the cost of methanol was the primary cause of high raw material costs (76%) that could not be
repaid by profits.

Break-even analysis of the Cash Flow

USD 0.00
1 3 5 7 9 11 13 15 17 19 21
(USD 500,000,000.00)

(USD 1,000,000,000.00)

(USD 1,500,000,000.00)

Non-Discounted Cash Flow

(USD 2,000,000,000.00) Cumulative Cash Flow

(USD 2,500,000,000.00)

(USD 3,000,000,000.00)

(USD 3,500,000,000.00)

(USD 4,000,000,000.00)

(USD 4,500,000,000.00)