CHE Design Project I 20-CHE-545 Winter 2012 ECONOMIC GROUND RULES Energy Costs Fired Furnace HP Steam 254C

4C MP Steam 184C LP Steam 160C Refrigeration Cooling Water $9.83 GJ-1 $9.83 GJ-1 $8.22 GJ-1 $7.78 GJ-1 $4.42 GJ-1 $0.075/1000 gal

Waste Water Volume charge = $3.985/CCF BOD Surcharge = $0.004482(BOD-240) if BOD > 240 TKN Surcharge = $0.00396(TKN-25) if TKN >25 o 1 CCF = 100 ft3 o BOD = Biological Oxygen Demand, mg/L (or ppm) ChemCAD can estimate this o TKN = Total Kjeldahl Nitrogen, mg/L (or ppm) o You would normally have to pay a surcharge for Total Suspended Solids as well assume your waste treatment system can remove the solids o You can calculate a credit if BOD < 192 mg/L or TKN < 20, but the credit can only cancel out surcharges from other components o Example: Your wastewater has a BOD of 400 and a TKN of 0 BOD Surcharge = $0.717/CCF TKN Surcharge Credit = -$0.099/CCF Total Wastewater Cost = $4.603/CCF 8000 operating hours year-1 Operator Labor $37.00/hour

Catalyst Cost: $25/kg, bulk density = 2500 kg/m3 bed If you have data from a literature source that differs from this, use the literature value. Be sure to update costs to December 2011. Capital Costs Use cost correlations in textbook for class to estimate purchased equipment costs Escalate cost estimate to December 2011 Estimate total capital costs using Lang factors

Depreciation: MACRS depreciation 10 year asset life Salvage value = 10% of purchased equipment cost Income Taxes: 40% (combined local + state + federal) Required Minimum Return = 15% Estimate other annual costs using factors from Table 23.1 in the textbook unless other direction is provided above.