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Sulfuric Acid Cost Estimation & Economics
Sulfuric Acid Cost Estimation & Economics
Given in the literature is the cost versus size Nomograph, from which the cost of
Sulfuric Acid Plant within the capacity between 50 500 TPD can be calculated.
The cost for 500 TPD plant with Chemical Engineering Cost Index (CE) =130 (Basis
= 1957 -59; CE = 100) is as follows:
C = [a x S] n
[ C1 / C2 ] = [ S1 / S2 ] n
Obtained from one of the Internet sites, that Chemical Engineering Plant Cost Index
are given as:
Present Cost of Plant = (Original Cost) x (Present Cost Index) / (Past Cost Index)
= (8,23,81,330 /-) x (402/132) = Rs. 254.8 x 106 /-
Land (LC):
RANGE = 4-8% of Purchased Equipment Cost
Let the cost of land = 6 % of Purchased Equipment Cost
LC = 6 % x Rs. 50.96 x 106 /-
= Rs. 3.0576 x 106 /-
Expenses which are not directly involved with material and labour of actual
installation of complete facility (15-30% of Fixed-capital investment)
3. Contingency (CC):
RANGE = 5-15% of Fixed-Capital Investment
Let the contingency cost = 7% of Fixed-Capital Investment
CC = 7% x Rs. 254.8 x 106 /-
= Rs. 18.14 x 106 /-
Manufacturing cost is the sum of Direct Production Cost, Fixed Charges and Plant
Overhead Cost.
Depreciation (DC:
RANGE = Depends on life period, Salvage Value
and method of calculation-about 10% of
FCI for Machinery & Equipment, 2-3%
for Building Value for Buildings.
Utilities (UC):
RANGE = 10-20% of Total Product Cost
Let the Cost of Utilities = 14% of Total Product Cost
UC = 14% x Rs. 232.81 x 106 /-
= Rs. 32.6 x 106 /-
Thus,
Manufacturing Cost = Direct Production cost + Fixed charges + Plant Overhead cost
= Rs. [184.396 x 106 /- + 34.9224 x 106 /- + 23.281 x 106 /-]
= Rs 242.5994 x 106 /-
General Expenses
General Expenses is the sum of Administrative Costs, Distribution and Selling Cost
and Research and Development Costs.
Let the Distribution and selling costs = 15% of Total Product Cost
D & SC = 18% x Rs. 232.81 x 106 /-
= Rs. 41.9058 x 106 /-
Research and Development costs (R & DC):
RANGE = 5% of Total Product Cost
Let the Research and development costs = 5% of Total Product Cost
R & DC = 5% x Rs. 232.81 x 106 /-
= Rs. 11.64 x 106 /-
Thus,
Total General Expenses = Rs 83.2672 x 106 /-
Gross Earnings/Income:
As available in the literature that the Tax rate is generally taken as 45%
Rate of Return:
Data that are available for the determination of Break Even Analysis are:
Direct Production Cost per Ton of Sulfuric Acid = 184.39 x106 x 1440/460.8 x106
= Rs.576.23/ Ton
B = 123352 Tons/yr
= 385 TPD
Hence, the Break-Even Point Production Rate is 385 TPD and this value is 38.5% of
the designed Sulfuric Plant Capacity.
Thus the Economic Aspects of 1000 TPD Sulfuric Acid Plant is detailed out.