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CHAPTER I

DESIGN BACKGROUND

Introduction

Petrochemicals, which are chemical products derived from petroleum, are the

building blocks for a wide range of materials such as solvents, detergents plastic

and adhesives. Because of its many uses, the Petrochemical industry in

Philippines has been a critical contributor to the country’s overall economic

growth. Despite of its importance, only a few companies have invested to partake

in this industry. With the ever-growing demand for petrochemical derivatives,

more petrochemical plants are needed in the Philippines.

One particular petrochemical that is greatly used in manufacturing diverse

products in the Philippines is benzene. Benzene is an organic chemical

compound with the chemical formula C 6H6. It is used primarily as a precursor to

the manufacture of chemicals with more complex structure such as

ethlybenzene, cumene and more. More than half is processed to ethylbenzene, a

precursor to styrene which is used to make polymers and plastics. Some 20% of

the benzene production is used to manufacture cumene which is needed to

produce phenol and acetone for resins and plastics.

Because of the several applications of benzene and the demand for

petrochemical derivatives such as plastics, the group has decided to design a

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benzene manufacturing plant. This plant produces benzene through the

hydrodealkylation of toluene.

Process Description

Hydrodealkylation is a chemical reaction that involves reacting an aromatic

hydrocarbon in the presence of Hydrogen gas to form a simpler aromatic

hydrocarbon devoid of a functional group. The Hydrodealkylation of Toluene is a

process used to produce benzene. The main reaction in the process is:

Toluene + H2 → Benzene + CH4

Toluene and hydrogen are converted in a reactor packed with a catalyst to

produce benzene and methane. The catalyst provides an alternative reaction

mechanism with a lower activation energy. Typically, the reaction reaches a

conversion of 90%. The reaction is highly exothermic and the typical operating

conditions are 500 to 660 degrees Celsius, and 20 to 60 bar. Figure 1 shows the

block diagram of the HDA process.

Figure 1: HDA Block Flow Diagram

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The HDA process begins with mixing fresh toluene with a stream of recycle

unreacted toluene, the mixing is achieved in a storage tank. The toluene is then

pumped to combine it with a stream of mixed hydrogen and fresh hydrogen gas.

The mixture of hydrogen and toluene is preheated before it is introduced to the

heater or furnace. In the furnace the stream is heated to 600 C, the reaction

temperature, then introduced into the reactor. The reactor is where the main

reaction happens:

C7H8 + H2 = C6H6 + CH4

This reaction is irreversible, and it requires catalyst. The catalyst consists of

chromium or molybdenum oxides, platinum or platinum oxides, on silica or

alumina.

The catalytic process occurs at lower temperatures and offers higher

selectivity but requires frequent regeneration of the catalyst. The products are

then cooled and introduced into a pair of separators that separate the unreacted

hydrogen. Portion of the unreacted hydrogen is compressed and recycle back to

the feed and the reactor. The products leaving the separators are then heated

before being introduced into a distillation column, where toluene is separated

from the stream and recycle to the feed. This allow for greater conversion. Then

further fractionation separates methane and toluene from the benzene product.

The heating requirements are achieved with low, high and medium pressure

steam. The cooling requirements are achieve by cooling water at temperature of

30 C and pressure of 1 bar.

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Raw Materials

1. Toluene
Toluene is an aromatic hydrocarbon. It is colorless, water Soluble

liquid with the smell associated to paint thinners. It is a mono-substituted

benzene derivative consisting of a methyl attached to a Phenyl group. This

will serve as the feed for the HDA process and will be converted to

Benzene
The toluene feed of the HDA plant will be bought from Petron

Bataan Refinery which has a Toluene capacity of 150000 MT. The refinery

is capable of providing the HDA plant’s feed. Otherwise, we can also

obtain Toluene from Shell Tabangao Refinery which also produces

Toluene from catalytic reforming.


2. Hydrogen
Hydrogen is chemical element with a standard atomic weight of

1.008. It is the lightest element. Large quantities of hydrogen are required

in petroleum and chemical industries for processing of fossil fuels. The key

consumers of H2 are hydrodealkylation, hydrodesulfurization and

hydrocracking.
The hydrogen will be supplied by Air Liquid’s Steam methane

reforming plant. The hydrogen will be recycled in the hydrodealkylation

process to minimize the H2 requirements.

3. Catalyst
The catalyst we will use in the reactor is a Molybdenum based

catalyst. Because this industrial Catalyst isn’t available locally, it will be

imported from Liaoning Haitai Sci-Tech Development Co., Ltd.

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Products

1. Benzene
Benzene is an organic chemical compound with the chemical

formula C6H6. It is used primarily as a precursor to the manufacture of

chemicals with more complex structure such as ethlybenzene, cumene

and more. More than half is processed to ethylbenzene, a precursor to

styrene which is used to make polymers and plastics. Some 20% of the

benzene production is used to manufacture cumene which is needed to

produce phenol and acetone for resins and plastics.


2. Fuel Gas (CH4)
The Fuel gas produced primarily consists of methane. Methane is a

chemical compund with the chemical formula CH 4. It is the simplest alkane

and is the main constituent of natural gas. This can be used to fuel fired

heaters in the plant.

Rationale of the Study

Benzene is an aromatic hydrocarbon and a commodity petrochemical

product. It is produced as by-product in stream crackers and refineries, thus its

supply and demand is driven by other products derived from it. Benzene is a

basic chemical and a building block for many other chemical synthesis of the

global chemical and petrochemical value chain.

Benzene is used in a broad range of economic sectors such as electrical

& electronics, construction, consumer products, transportation, and medical. This

petrochemical product has many derivatives such as ethyl benzene,

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nitrobenzene, cumene, cyclohexane, alkyl benzene, chlorobenzene, aniline, and

phenol.

The rapidly growing industries such as packaging, construction, bulk

chemicals & materials, automotive, textiles and building & construction have

substantially driven the applications for the benzene derivatives globally

influencing the benzene market growth. Rising population in tandem with the

increase in disposable incomes has led to growth of many consumer products

and bulk materials. Low cost of the feedstock and economical commodity product

prices have also contributed to the higher consumption of benzene derivatives.

The unusual supply–demand pattern has prompted researchers to

develop “on-purpose” routes to benzene. Several aromatic interconversion

technologies are available. In one strategy, toluene is converted to equimolar

amounts of benzene and xylene. This technology is known as toluene

disproportionation (TDP).

Other technologies used to balance supply are toluene hydrodealkylation

(HDA) and transalkylation (TA). In HDA, toluene reacts with hydrogen to give

benzene and methane. In TA, toluene and polymethylated benzenes

disproportionate to produce benzene, xylenes, and other aromatics.

Hydrodealkylation is a chemical reaction that often involves reacting

an aromatic hydrocarbon, such as toluene, in the presence of hydrogen gas to

form a simpler aromatic hydrocarbon devoid of functional groups. An example is

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the conversion of 1, 2, 4-trimethylbenzene to xylene. This chemical process

usually occurs at high temperature, at high pressure, or in the presence of

a catalyst. These are predominantly transition metals, such

as chromium or molybdenum.

Taking into considerations the different kinds of factors, such as the

environmental hazards, safety within the area, overall efficiency, feasibility,

layout, and equipment, the designers came up with the idea of hydrodealkylation

processing plant.

Location Plan

The designed Hydrodealkylation Plant will be located by Roman

Expressway at Limay, Bataan. Several factors are considered for the selection of

the location such as suitability of land, ease of access to transport, and

environmental and safety requirements.

The selected location provides ease of access to transport. It is

geographically located along the coast connected to the sea which means an

easy access for ships and vessels. Furthermore, the location is favorable due to

its proximity to Petron Bataan Refinery where we will get the HDA Plant’s Toluene

Feed.

The plant would provide numerous job opportunities for the people around

the area. To ensure public safety, the plant location is located as far from

residential area. Figure 2 shows the location plan of the plant.

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Figure 2: Plant Location and its proximity to Petron Bataan Refinery

Supply and Demand of the By-Product

The global market is expected to grow at a CAGR of 4–5 percent during

2016–2022: The impetus for this growth comes from demand in Asia, which is

expected to grow at 6-7 percent, due to increased automobile and construction

activities.

Major demand for aromatics is expected to come from the Asian region,

since most of the derivative units (styrene, phenol, PET, and gasoline) are

lined up in Asia. The automobile (4 – 5 percent growth) and construction

sectors (5 – 6 percent growth) would be the key segments driving the demand.

Around 1.5 MMT capacity additions planned for styrene in Asia and the Middle

East would also contribute to benzene’s demand growth.

Feedstock change in the western markets to yield less benzene. Lesser

yield from lighter feedstock will continue to reduce the output of aromatics in
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the US and the EU, thus making the regions increasingly import dependent.

This demand from the western markets will be met by surplus capacity

additions, planned in the Middle East and Asia through 2022.

With the wide applications of benzene such as for formulating high octane

fuels, for use as commercial solvent and for making paints, thinners and plastics,

the demand for benzene is projected to be high. To meet this demand, the

development of a hydrodealkylation plant is needed.

Figure 3: Demand and Supply Projection for 10 Years

Source: ICIS Global Petrochemical Supply

CHAPTER II

DESIGN OBJECTIVES AND REQUIREMENTS

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The principal thrust of this project proposal is to design a

Hydrodealkylation Process Plant that will process benzene as its raw materials to

produce toluene.

Specifically, this study aims to meet the following objectives for the

proposed plant in order to come up with a feasible and economical project design

1. To be able to construct three (3) design options following some of the

engineering standards and realistic constraints.


2. To gather data and information needed in relation to technical and

economic aspects that will justify the viability of the proposed project.
3. To assign the proper technical design specifications for the equipment

of the three design options following standard requirements.


4. To determine the capacity and efficiency of each of the plant by the

computation of the following:


4.1 Material Balance
4.2 Energy Balance
5. To present acceptable designs having processes that are capable of

operating under conditions which will yield a profit providing an

evaluation and under conditions which will yield a profit providing an

evaluation and computations of the economical expenditures:

5.1 Capital Expenditures


5.2 Operating Expenditures
5.3 Net Present Values
5.4 Rate of Return
5.5 Payback Period
6. To provide safety and loss prevention in the process designs under the

following:
6.1 Identification and assessment of the hazards;
6.2 Control of hazards;

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6.3 Control of the processes; and
6.4 Limitations of the loss
7. To choose the best design option following the Worst Case Design

philosophy.
8. To provide a construction management, project scheduling of

assembling each sections of the plant’s manufacturer’s site and the

sequence and arrangement of the major items of equipment given on

the process flow sheet.


9. To provide a summary of findings, conclusion and recommendation for

Hydrodealkylation Process Plant.

CHAPTER III

TECHNICAL ASPECTS AND REQUIREMENTS

This chapter presents the data and information as well as the assumptions

related to the technical aspects and economical information needed for the

design of the manufacturing plant. Standards were used to come up with a

technically viable design. Technical catalogues were used to carefully identify the

design specifications of each equipment.

Three Designs are presented and the best design option will be selected

through the worst case design philosophy.

Plant Cycle and Process Flow Diagram of each Design Option


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A. Design Option 1

The first design option shows a simple hydrodealkylation plant with

the minimum required equipment. This design helps reduce costs by only

selecting the necessary equipment for the conversion of toluene to

benzene.

Presented is the process flow diagram of the design. It shows the

configuration of the plant equipment and the streams entering and exiting

each equipment.

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Fig ur e 3: Sim ula t io n Pr ocess Flow Diagr am

Hy d ro d e a l k y t i o n o f To l u e n e

S P 2 C1

S 1 4 Re c y c le Hy d ro g e n
S 1 2

S 1 3

S 2 0
S 2 2
S 1 5 S 1
M5
M6 Fuel G as
S 1 6
S P 1 S 2 5
S 1 7
M2 S 7
Hy dr ogen
M4
S 9
S 1 8
R1
S 6
S 8

M3 S 4
S 3 S C 2
S 2 8
S 5

E 2
E 1 E 5 F 1 S 2 6
S 2 S 2 3
S 1 S 1 0
M1 S 2 7
P 1
o lu ene
T

F 2
Benz ene
E 4

S 1 9

S 2 1
E 3

S C 1

S 2 4

o lu e n e Re c y c le
T

Figure 4. Design Option 1 PFD

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The process starts with combining the fresh toluene stream S1 with the

recycle toluene stream S24 in the mixer M-1 to form stream S2. The stream S2 is

then pumped (P-1) to 25.5 bar and is combined in a mixer M-3 with stream S16,

this stream is a mixture of fresh feed hydrogen mixed with unreacted hydrogen, it

also contains traces of toluene benzene and methane. The stream S16 is the

outlet of mixer M-2, this mixer combines the fresh stream of hydrogen S17 and

the unreacted recycle stream of hydrogen S14. The two phase stream exiting the

mixer M-3 is then introduced into heat exchanger E-1 in the tube side. High-

pressure stream is used in this heat exchanger in the shell side to heat up the

tube side process stream S4 to an outlet temperature of 163.9 C. The outlet

stream S5 is a one-phase stream of all vapor. The pressure drop for all the heat

exchangers are set to be 0.345 bar.

The process stream is then introduced into the heater E-2, where it is heated

up to 600 C. This temperature is the required temperature that will allow the

reaction to happen in the reactor. The now heated up stream S6 is combined with

recycle compress hydrogen S15 in mixer M-4. Since the reaction is highly

exothermic, the temperature is controlled by injection of quench hydrogen at the

reactor. The feed is then introduced to the main part of the process the reactor R-

1. The process stream now containing a high amount of benzene exits the

reactor at 671oC, this temperature must be decreased in order to separate the

unreacted components with the products. This is achieved by introducing the

product stream S8 to heat exchanger E-5. In this heat exchanger the process

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stream is cooled to 38 oC, by using cooling water. The outlet stream, S28, is a

two-phase stream that is introduced into the first separator F-1. This knock out

drum separates mostly all hydrogen and methane and it also contains traces of

toluene and benzene. The pressure and temperature of this flash drum must be

specified to 23.9 bar and 38oC.

The overhead stream S9 is then split into two streams S11 and S12 in splitter

SP1. Stream S12 is compressed in a compressor of efficiency of 75% to a

pressure of 25.5 bar. The compressed gas S13 is then introduced into splitter

SP-2, which splits the splitter into stream S14 and S15. Stream S14 is mixed with

the fresh feed of hydrogen, and stream S15 is used to control the temperature of

the reactor. The stream S11 is part of the fuel gas.

The bottom stream S10 of the separator F1 is introduce into the second

separator F2, which separates more hydrogen and methane from benzene and

toluene. The liquid bottom stream S19 is then heated up in heat exchanger E-3

to 90oC. The overhead stream S18 is combined with the overhead of the first

separator F-1 in mixer M-5 to makeup portion of the fuel gas.

Stream S19 is then introduced into a distillation column, which is simulated

by a stream calculator, SC1. In this piece of equipment the separation required

must be specified. In this case 99% of the benzene must exit at the overhead

and 98.85% of the toluene must exit at the bottom of the separation unit. The

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temperature and pressure of the overhead and the bottom must be specified in

order for the simulation to be properly represented. The temperatures are 112 oC

and 2.43 bar. The bottoms of this stream calculator S24 is the recycle toluene

that is mixed in M1 with the fresh toluene feed. The overhead of this separator is

then introduced into another stream calculator SC2, which simulates the

condenser and reflux drum and pump of the distillation tower. This stream

calculator separates all the hydrogen and methane in the overhead S25, from the

toluene and benzene in the bottoms S26. The stream S25 is then combined in a

mixer M6 with the rest of the gas that composes the fuel gas. The stream S26 is

then introduced into a heat exchanger E4 where the benzene product is cooled

down to 38oC before is sent to storage.

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B. Design Option 2.

Figure 5. Design Option 2 PFD

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Fresh and recycled liquid toluene is pumped from TNK-100 and is

combined with a high pressure hydrogen feed and a recycled gas stream

MIX-100. The combined feed stream S4 is vaporized using high pressure

steam in exchanger E-100 and then heated further to 600 degCelsius in fired

heater E-101 prior to being fed into reactor R-100. The feed enters the reactor

at a pressure of 2500 kPa. The reactors is of the catalytic packed bed type, is

operated adiabatically and is intended to achieve 80% conversion of toluene.

The feed contains a large excess of hydrogen, which acts as a diluent to

moderate the temperature rise in the reactor. A small flow of cold gas, stream

S24, is used for further reactor temperature control. The reactor effluent is

cooled and partly condensed in exchanger E-102 using cooling water and

partial separation of this stream is achieved in high pressure (V-100) and low

pressure (V-101) flash drums. Part of the overhead vapour from V-100 is

recycled via compressor K-100 to the reaction section. The liquid product from

the low pressure flash drum is heated to near its bubble point in E-103 using

low pressure stream and is then distilled in the benzene column.

The column produces a high purity benzene distillate, S18, an impure

toluene bottoms stream, S19, which is recycled to the toluene storage tank,

and a small non-condensate gas stream, S16, vented from the column’s reflux

drum. This vent stream, the balance of vapour from V-100 and all the vapour

from V-101 are combined in MIX-101 and become fuel gas for use in the plant

or elsewhere on the site. The benzene product from the column is cooled in

exchanger E-104 using cooling water prior to being pumped in the storage.

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C. Design Option 3

The third design option is a pinch analysis. In this design,

energy is saved by using the outlet stream leaving the reactor as its

temperature is in the range of 620 ◦C, to preheat the feed stream

coming from the mixer, via a heat exchanger (Fehe) some energy

integration is achieved

Presented is the process flow diagram of the design. It shows

the configuration of the plant equipment and the streams entering and

exiting each equipment.

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Figure 6. Design Option 3 PFD

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The process starts by combining fresh toluene feed, recycled toluene, and

Hydrogen gas mixed with traces of methane. This initial feed is passed through a

heat exchanger to be heated before being heated again in a furnace at 600

degrees Celsius. The heated feed mixture is then fed to an adiabatic reactor

where it contains unreacted hydrogen, toluene, benzene, biphenyl, and methane.

It is then quenched and cooled in a high-pressure flash separator to condense

the aromatics from non-condensable hydrogen and methane. Liquid stream from

the high-pressure flash drum is fed to a low-pressure flash drum to separate

traces of hydrogen and methane rom the aromatics. Toluene, benzene, and

biphenyl are separated in two distillation columns. The first column separates the

product – Benzene – from biphenyl and Toluene before being fed to the second

distillation column, which will separate Toluene from biphenyl. Recycled Toluene

from the second distillation column is fed back to the initial stream, which is the

fresh Toluene.

Components of the Hydrodealkylation Processing Plant

This section includes all the equipment used to run the HDA processing

plant.

A. Mixer
Chemical mixers set up and operate machines that mix chemicals.

They also measure and weigh ingredients used in making a chemical

solution. It is their responsibility to regulate the flow of the ingredients into

a mixing vessel, as well as to monitor stirring to ensure that solutions only

mix for a specified period of time and to a desirable quality. They also test

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resulting solutions for parameters such as viscosity, temperature and

density.

Figure 7. Chemical Mixer


B. Pump
A pump is any device meant to facilitate the motion of a fluid.

Pumps displace fluids, causing it to move down or out of a pipe. Most

pumps use some sort of compressional action to displace the fluid. This

compressional action sometimes necessitates a motor that acts to put

pressure on the fluid in order to displace it. This motor can be powered by

a variety of fuels, as long as it has the necessary power to displace the

fluid. Most pumps are either positive displacement or rotodynamic.

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Figure 8. Pump
C. Compressor

A compressor is a mechanical device that increases the pressure of

a gas by reducing its volume. Compressors are similar to pumps: both

increase the pressure on a fluid and both can transport the fluid through

a pipe. As gases are compressible, the compressor also reduces the

volume of a gas. Liquids are relatively incompressible; while some can be

compressed, the main action of a pump is to pressurize and transport

liquids.

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Figure 9. Compressor
D. Pre-Heater
A preheater is any device designed to heat a substance before

another process (for example, combustion in a boiler) with the primary

objective of increasing the thermal efficiency of the process. They may be

used alone or to replace a recuperative heat system or to replace a steam

coil. The purpose of the preheater is to recover the heat from the

boiler flue gas which increases the thermal efficiency of the boiler by

reducing the useful heat lost in the flue gas. As a consequence, the flue

gases are also conveyed to the flue gas stack (or chimney) at a lower

temperature, allowing simplified design of the conveyance system and the

flue gas stack. It also allows control over the temperature of gases leaving

the stack (to meet emissions regulations, for example).

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Figure 10. Pre-heater
E. Heat Exchanger
A heat exchanger is a device used to transfer heat between two or

more fluids. Heat exchangers are used in both cooling and heating

processes. The fluids may be separated by a solid wall to prevent mixing

or they may be in direct contact. They are widely used in space

heating, refrigeration, air conditioning, power stations, chemical

plants, petrochemical plants, petroleum refineries, natural-gas processing,

and sewage treatment. The classic example of a heat exchanger is found

in an internal combustion engine in which a circulating fluid known

as engine coolant flows through radiator coils and air flows past the coils,

which cools the coolant and heats the incoming air. Another example is

the heat sink, which is a passive heat exchanger that transfers the heat

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generated by an electronic or a mechanical device to a fluid medium, often

air or a liquid coolant.

Figure 11. Heat Exchanger


F. Cooler
An industrial cooler will feature a large water tank to store water.

For better water conservation, an ecofriendly air cooler will have larger

storage capacity and utilize water resources to the maximum without

wastage. The cooler will absorb heated air into its system which is passed

through the water and cooling media. It is in this area where the actual

cooling system takes place where heat and moisture is absorbed and

evaporated. The resulting cold air is blown out of the system with the help

of powerful motor driven fans. The piping system distributes cold moisture,

water and air throughout the cooler.

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Figure 12. Cooler
G. Flash Drum
A flash drum is a very simple vessel which separates vapor from

liquid at a given temperature and pressure. Sometimes they are heated,

sometimes not. A liquid or liquid vapor mixture flows in, the vapor that boils

off goes out the pipes at the top and the liquid that remains flows out the

bottom.

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Figure 13. Flash Drum
H. Splitter
Component splitter works as its name says: it redistributes each of

the components present in the feed stream in between the so called

"overhead" and the "bottom" streams. Depending on specified conditions

of both outlet streams, you may need to include an energy stream feeding

the splitter as well.

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Figure 14. Splitter
I. Reactor
A chemical reactor is an enclosed volume in which a chemical

reaction takes place. In chemical engineering, it is generally understood to

be a process vessel used to carry out a chemical reaction, which is one of

the classic unit operations in chemical process analysis. The design of a

chemical reactor deals with multiple aspects of chemical engineering.

Chemical engineers design reactors to maximize net present value for the

given reaction. Designers ensure that the reaction proceeds with the

highest efficiency towards the desired output product, producing the

highest yield of product while requiring the least amount of money to

purchase and operate. Normal operating expenses include energy input,

energy removal, raw material costs, labor, etc. Energy changes can come

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in the form of heating or cooling, pumping to increase pressure, frictional

pressure loss or agitation.

Figure 15. Reactor


J. Storage Tank
Storage tanks are containers that hold liquids, compressed gases

(gas tank; or in U.S.A "pressure vessel", which is not typically labeled or

regulated as a storage tank) or mediums used for the short- or long-term

storage of heat or cold. The term can be used for reservoirs (artificial lakes

and ponds), and for manufactured containers. The usage of the word tank

for reservoirs is uncommon in American English but is moderately

common in British English. In other countries, the term tends to refer only

to artificial containers.

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Figure 16. Storage Tanks
K. Furnace
A furnace is a device used for high-temperature heating. The name

derives from Latin word fornax, which means oven. The heat energy to

fuel a furnace may be supplied directly by fuel combustion, by electricity

such as the electric arc furnace, or through induction heating in induction

furnaces.

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Figure 17. Furnace
L. Distillation Column
The distillation column is made up of a series of stacked plates. A

liquid feed containing the mixture of two or more liquids enters the column

at one or more points. The liquid flows over the plates, and vapor bubbles

up through the liquid via holes in the plates. As liquid travels down the

column, the vapor comes in contact with it several times due to the

multiple plates – a critical process in distillation columns. The liquid and

vapor phases are brought into contact because as one molecule of higher

boiling material converts from vapor to liquid phase by energy release,

another molecule of the low boiling material utilizes the free energy to

convert from liquid to vapor phase. The base of the distillation column

contains a large volume of liquid consisting mostly of the liquid with higher

boiling point (in our example, this would be water). Out of the base flows

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some of this liquid, some of which is heated in the re boiler and returned to

the column. This is called the boil up.

Figure 18. Distillation Column


M. Condenser
A condenser is a device (tube) which allows a vapour to pass

through a confined space and be cooled by a surrounding cooler fluid. An

air condenser is simply a naked tube where the cooler fluid is the

surrounding air. A water condenser (Liebig condenser) has the tube

enclosed in a larger tube so that cooling water is able to pass in the space

between the two tubes. The efficiency is improved by slanting the

apparatus so that the vapour to be condensed flows downwards through

the inner tube whilst the cooling water flows upward through the outer

tube, thus creating a counter current flow.

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Figure 19. Condenser
N. Reboiler
Reboilers are heat exchangers typically used to provide heat to the

bottom of industrial distillation columns. They boil the liquid from the

bottom of a distillation column to generate vapors which are returned to

the column to drive the distillation separation. The heat supplied to the

column by the reboiler at the bottom of the column is removed by

the condenser at the top of the column. Proper reboiler operation is vital to

effective distillation. In a typical classical distillation column, all the vapor

driving the separation comes from the reboiler. The reboiler receives a

liquid stream from the column bottom and may partially or completely

vaporize that stream. Steam usually provides the heat required for the

vaporization.

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Figure 20. Reboiler

Equipment Specifications

Presented is the list of equipment with their corresponding input and

output streams as well as their operating conditions.

Table 1. Equipment Specification for Design Option 1

Equipment Equipmen Input Output


Operating Parameters
Number t Type Streams Streams
M-1 Mixer S1,S24 S2 Pressure Drop = 0 bar
M-2 Mixer S17,S14 S16 Pressure Drop = 0 bar
M-3 Mixer S16,S3 S4 Pressure Drop = 0 bar
M-4 Mixer S6,S15 S7 Pressure Drop = 0 bar
M-5 Mixer S11,S18 S20 Pressure Drop = 0 bar
M-6 Mixer S20,S25 S22 Pressure Drop = 0 bar
Outlet pressure = 25.5 bar,
P-1 Pump S2 S3
Efficiency 75%
Compress Outlet pressure = 25.5 bar,
C-1 S12 S13
or Efficiency 75%
E-1 Preheater S4 S5 Outlet Liquid Fraction = 0

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E-2 Heater S5 S6 Outlet temperature = 600 C
Heat
E-3 S19 S21 Outlet temperature = 90 C
Exchanger
E-4 Cooler S26 S27 Outlet temperature = 38 C
E-5 Cooler S8 S28 Outlet temperature = 38 C
Flash Pressure = 23.9 bar, Temp
F-1 S28 S9,S10
Drum = 38 C
Flash Pressure = 2.8 bar, Temp =
F-2 S10 S18,S19
Drum 38 C
Recycle stream flowrate =
SP-1 Splitter S9 S11,S12
440 kgmol/hr
Recycle to the reactor = 40
SP-2 Splitter S13 S14,S15
kgmol/hr
Duty = 0, product phases,
R-1 Reactor S7 S8 global temp = -22.2 C, 75%
Conversion
Overhead product = 99%
Stream
SC-1 S21 S23,S24 benzene, Bottoms product
Calc.
= 98.85 % toluene
Stream Overhead product = 100%
SC-2 S23 S25,S26
Calc. H2, 100% CH4

Table 2. Equipment Specification for Design Option 2

Equipment Equipment Input Output


Operating Parameters
Number Type Streams Streams
Toluene,
TNK-100 Tank S1, S2 Temperature = 25 degC
H2 Feed
Outlet Pressure = 25.8
P-100 Pump S2 S3
bar
Pressure Drop = 0.3 bar
E-100 Pre-heater S4 S5 Outlet Temperature =
225 degC
Pressure Drop = 0.2 bar
E-101 S5 S6 Outlet Temperature = 20
Furnace degC
Pressure Drop = 0.1 bar
R-100 Reactor S6 S7, S8 Outlet Temperature = 38
degC
E-102 Cooler S7 S9 Pressure Drop = 0 bar
High
V-100 Pressure S9 S10, S11 Pressure drop = 0
Flash Vessel

36
TEE-100 Splitter S10 S20, S21 Efficiency ratio = 73%
Level
Outlet Pressure = 2.9
VLV-100 Control S11 S12
bar
Valve
Low
V-101 Pressure S12 S13, S14 Pressure Drop = 0
Flash Vessel
Pressure drop = 0.3 bar
E-103 Pre-heater S14 S15 Outlet temperature = (0
degC
Pressure
Outlet Pressure = 2.6
VLV-101 Control S13 S26
bar
Valve
Fictitious Use Lowest Feed
X-100 S15 S16, S17
unit Pressure Option
Condenser Pressure =
2.5 bar
T-100 Column S17 S18, S19
Reboiler Pressure = 2.8
bar
Outlet Temperature = 38
E-104 Cooler S18 Benzene degC
Pressure drop = 0.2 bar
Outlet Pressure = 25.5
K-100 Compressor S20 S22 bar
Efficiency = 75%
TEE-101 Splitter S22 S23, S24 Flow Ratio = 5%
Control Outlet Pressure = 2.6
VLV-102 S21 S25
Valve bar
S3, S23,
M-100 Mixer S4 Pressure Drop = 0 bar
H2 Feed
S16, S25,
M-101 Mixer Fuel Gas Pressure Drop = 0 bar
S6

Table 3. Equipment Specification for Design Option 3

Equipm
Equipment Input Output Operating
ent
Type Streams Streams Parameters
Number

37
Toluene Toluene Outlet Pressure = 25.8
P-100 Pump
Feed Feed bar
Hydrogen
Feed,
M-100 Mixer S1 Pressure Drop = 0 bar
Toluene
Feed, S20
Heat Outlet temperature =
HX-100 S1, S4 S2, S26
Exchanger 90C
Operating
E-100 Furnace S2 S3
Temperature = 600C
Pressure Drop = 0.1
bar
R-100 Reactor S3 S4
Outlet Temperature =
38C
E-101 Cooler S26 S5 Pressure Drop = 0 bar
Pressure = 2.8 bar,
T-100 Flash Drum S5 S22, S6
Temp = 38 C
Pressure = 2.8 bar,
T-101 Flash Drum S6 S21, S7
Temp = 38 C
Distillation
D-100 S7, S9, S12 S8, S11
Column
S9, S10 Condenser Pressure =
C-100 Condenser S8
(Benzene) 2.5 bar
Reboiler Pressure =
RB-100 Reboiler S11 S12, S13
2.8 bar
Distillation
D-101 S13 S14, S17
Column
Condenser Pressure =
C-101 Condenser S14 S15, S16
2.5 bar
S18, S19 Reboiler Pressure =
RB-101 Reboiler S17
(Biphenyl) 2.8 bar
Recycled
Outlet Pressure = 25.8
P-101 Toluene S16 S20
bar
Pump
S-100 Splitter S22 S23, S24 Efficiency ratio = 73%
Outlet Pressure = 25.5
K-100 Compressor S24 S25 bar
Efficiency = 75%

Material Balance

38
After designing the process, a material balance calculation for each

equipment is determined. Presented below are the material balances.

Design Option 1

The first design option has a feed of 50000 tonnes of toluene and 1502

tonnes of hydrogen per year.

Converting into molar flowrate.

Toluene feed = (50000 tonnes/year) x (1000 kg/tonnes) x (1kmol/92.14 kg of

toluene) x (1 year/8640 hours)

=62.8 kmol/hr = 62.8 kg mol /hr

Hydrogen feed = (1502 tonnes/year) x (1000 kg/tonnes) x (1kmol/1 kg of

Hydrogen) x (1 year/8640 hours)

=173.899 kmol/hr = 173.899 kg mol / hr

Using Soave-Redlich-Kwong thermodynamic system, the simulation yielded the

material balance below.

Table 4. Mass Balance of Design Option 1

Equipment Number/ Mass Balance Calculations


Description Kg-mol/hr

M-1 mS1+mS24 = mS2


(Mixer) 62.8 + 20.772 = 83.572

M-2 mS17+mS14 = mS16


(Mixer) 173.899 + 230.871 = 404.77

39
M-3 mS16+mS3 = mS16
(Mixer) 404.77 + 83.572 = 488.342

M-4 mS6+mS15 = mS7


(Mixer) 488.342 + 23.333 = 511.675

M-5 mS11+m18 = mS20


(Mixer) 173.468 + 1.801 = 175.269

M-6 mS20+m25 = mS22


(Mixer) 175.269 + 0.422 = 175.691

P-1 mS2 = mS3


(Pump) 83.572 = 83.572

C-1 mS12 = mS13


(Compressor) 254.204 = 254.204

E-1 mS4 = mS5


(Preheater) 488.342 = 488.342

E-2 mS5 = mS6


(Heater) 488.342 = 488.342

E-3 mS19 = mS21


(Heat Exchanger) 82.202 = 82.202

E-4 mS26 = mS27


(Cooler) 61.008 = 61.008
E-5 mS8 = mS28
(cooler) 511.675 = 511.675

F-1 mS28 = mS9 + mS10


(Flash Drum) 511.675 = 427.672 + 84.003

40
F-2 mS10 = mS18 + mS19
(Flash Drum) 84.003 = 1.801+ 82.202

SP-1 mS9 = mS11 + mS12


(Splitter) 427.672 = 173.268 + 254.204

SP-2 mS13 = m14 + mS15


(Splitter) 254.204 = 230.871 + 23.333

R-1 mS7 = mS8


(Reactor) 511.675 = 511.675

SC-1 mS21 = mS23 + mS24


(Column) 82.202 = 61.43 + 20.772

SC-2 mS23 = mS25 + mS26


(Column) 61.43 = 0.422 + 61.008

Conversion = Benzene Output / Toluene Input x 100%

= 61.008 kmol/hr / 62.8 kmol/hr

= 97.15% conversion

Design Option 2

Presented here is the material balance based on each equipment’s

processes.

50,000 Metric Ton/year x 1000 kg/ton = 50,000,000 kg/year

50,000,000 kg/year x 1 year/365days = 136,986.3014 kg/day

136,986.3014 kg/day x 1day/24hrs = 5707.762557 kg/hr

41
Table 5. Mass Balance of Design Option 2

Equipment Number/ Mass Balance Calculations


Description (kg/hr)

E-100 mS5+mwr = mS4


(Heater) 5,693.49 + 14.27 = 5707.76

E-101 mS6+mvr = mS5


(Furnace) 5,679.26 + 14.23 = 5,693.49

R-100
mS7+mff = mS6
(Reactor)
4,713.79 + 681.51 = 5,679.26

E-102 mS9+mSwr = mS7


(Cooler) 4,702.00 + 11.78= 4,713.79

V-100 mS11+mS10 = mS9


(Flash Vessel) 4,673.79 + 28.21 = 4,702.00

V-101 mS14+mS13 = mS12 = mS11


(Flash Vessel) 4,645.75 + 28.04= 4,673.79

E-103 mS15+mwr = mS14


(Heater) 4,634.13 + 11.61 = 4,645.75

X-100 mS17+mS16 = mS15


(Fictitious Unit) 4606.33 + 27.8 = 4,634.13

T-100 mS18+mS19 = mS17


(Distillation Column) 4,594.81 + 11.52 = 4606.33

E-104 Benzene + mvr = mS18


(Cooler) 4,583.32 + 11.49 = 4,594.81

42
Conversion = Benzene Output / Toluene Input x 100%

= 4,583.32 kg/hr / 5707.76 kg/hr

= 80.3% conversion

Design Option 3

Presented here is the material balance based on each equipment’s

processes.

50,000 Metric Ton/year x 1000 kg/ton = 50,000,000 kg/year

50,000,000 kg/year x 1 year/365days = 136,986.3014 kg/day

136,986.3014 kg/day x 1day/24hrs = 5707.762557 kg/hr

Table 6. Mass Balance of Design Option 3

Equipment / Mass Balance Calculations


Description (kg/hr)

mS2+mwr = mS1
Heater
5,693.49 + 14.27 = 5707.76

mS3+mvr = mS2
Furnace
5,679.26 + 14.23 = 5,693.49

Reactor mS4+mff = mS3


4,713.79 + 681.51 = 5,679.26

mS26+mSwr = mS4
Heater
4,702.00 + 11.78= 4,713.79

43
mS26+mwr = mS4
Cooler
4,690.25 + 11.76 = 4,702.00

mS6+mS22 = mS5
Flash Vessel
4,645.75 + 28.14= 4,662.10

mS15+mwr = mS14
Flash Vessel
4,662.10 + 27.91 = 4,634.13

mS8+mS19 = mS7
Distillation Column
4622.55 + 11.59 = 4,634.13

Condenser Benzene + mwr = mS18


4,610.99 + 11.56 = 4,622.55

Conversion = Benzene Output / Toluene Input x 100%

= 4,610.99 kg/hr / 5707.76 kg/hr

= 85.78% conversion

Energy Balance

Design Option 1

Presented is the Energy Balance for the design option 1.

Table 7. Mass Balance of Design Option 1

44
Equipment Number/ Energy Balance Calculations
Description

Win + PVin = PVout


Win + (190000 Pa)( 2.464255607x10-3 m3/s) =
P-1
2550000 Pa (2.464255607x10-3 m3/s)
(Toluene Pump)
Win = 5815.643233 J/s = 5.815 kW

Qin = mCp(tout-tin)
Qin = (9751.383976 kg/hr)(6149 J/kg-K)(436.905-
E-1
316.219)(1hr/3600)
(Preheater)
Qin = 2010134.62 J/s = 2010.13462 kW

Qin = mCp(tout-tin)
Qin = (9751.383976 kg/hr)(6149 J/kg-K)(873-
E-2
436.905)(1hr/3600)
(Heater)
Qin = 7263557.141 J/s = 7263.557141 kW

Qin = mCp(tout-tin)
Qin = (6681.287316 kg/hr)(1707.76 J/kg-K)(363-
E-3
311)(1hr/3600)
(Heat Exchanger)
Qin = 164811.6199 J/s = 164.8116199 kW

Qout = mCp(tin-tout)
Qout = (4768.758649 kg/hr)(1700.08 J/kg-K)(385-
E-4
311)(1hr/3600)
(Cooler)
Qout = 166649.4636 J/s = 166.6594636 kW

Qout = mCp(tin-tout)
Qout = (10021.00649 kg/hr)(5354.2 J/kg-K)
E-5
(944.015-311)(1hr/3600)
(cooler)
Qout = 9434468.386 J/s = 9434.468386 kW

Efficiency = Output/Input x 100%

Efficiency = 9454.32296/7030.514404 x 100%

Efficiency = 98.5%

45
Design Option 2

Presented here is the energy balance based on each equipment’s

processes.

5707.762557kg/hr x 1hr/3600sec = 1.5854895999kg/sec

1.5854895999kg/sec x 15,485.6 kJ/kg = 24,552.25775kW

Table 8. Mass Balance of Design Option 2

Equipment Energy Balance Calculations

ES4=24,552.25775kW
Ewr=24,552.25775(.0025)
=61.38kW
Heater
ES5=24,552.2577 – 61.38
=24,490.88kW

ES5=24,490.88kW
Evr=24,490.88(.0025)
=61.23kW
Furnace
ES5=24,490.88 – 61.23
=24,429.65kW

ES6=24,429.65kW
Eff=24,429.65(.12)
=2931.56kW
Reactor
ES7=24,429.65(.95) – 2,931.56
=20,276.61kW

46
ES7=20,276.61kW
Ewr=20,276.61(.0025)
=50.69kW
Cooler ES9=20,276.61 – 50.69
=20,225.92kW

ES9=20,225.92kW
ES10=20,225.92(.006)
=121.36kW
Flash Vessels
ES11=20,225.92 – 121.36
=20,104.56kW

mS12=20,104.56kW
mS13=20,104.56(.006)
=120.63kW
Flash Vessels
mS14=20,104.56 – 120.63
=19,983.94kW

ES14=19,983.94kW
Ewr=19,983.94(.0025)
=49.96kW
Heater
ES15=19,983.94 – 49.96
=19,933.98kW

ES15=19,933.98kW
ES16=19,933.98(.006)
=119.60kW
Fictitious Unit
ES17=19,933.98 – 119.60
=19,814.37kW

ES17=19,814.37kW
ES19=19,814.37(.0025)
=49.54kW
ES18=19,814.37 – 49.54
Column
=19,764.84kW

47
ES18=19,764.84kW
Ewr=19,764.84(.0025)
=49.41kW
Cooler Benzene=19,764.84-49.41
=19,715.42kW

Ev=23.3kg/hr x 1hr/3600s
Compressor =6.47E-3 x 15,485.6 kJ/kg
=100.23kW

Effeciency = Output/Input x 100%

Efficiency = 19,715.42kW/24,552.25775kW x 100%

Efficiency = 80.3%

Design Option 3

Presented here is the energy balance based on each equipment’s

processes.

5707.762557kg/hr x 1hr/3600sec = 1.5854895999kg/sec

1.5854895999kg/sec x 15,485.6 kJ/kg = 24,552.25775kW

48
Table 9. Mass Balance of Design Option 3

Equipment Energy Balance Calculations

ES1=24,552.25775kW
Ewr=24,552.25775(.0025)
=61.38kW
Heater
ES2=24,552.2577 – 61.38
=24,490.88kW

ES2=24,490.88kW
Evr=24,490.88(.0025)
=61.23kW
Furnace
ES3=24,490.88 – 61.23
=24,429.65kW

ES3=24,429.65kW
Eff=24,429.65(.12)
=2931.56kW
Reactor
ES4=24,429.65(.95) – 2,931.56
=20,276.61kW

ES4=20,276.61kW
Ewr=20,276.61 (.0025)
=50.691525kW
Heater ES26=20,276.61– 50.691525
=20,225.91848kW

ES4=20,225.91848kW
Ewr=20,225.91848 (.0025)
=50.56479619kW
Cooler
ES26=20,225.91848kW -50.56479619kW
=20,175.35368kW

49
ES5=20,175.35368kW
ES22=20,175.35368kW (.006)
=121.0521221kW
Flash Vessels
ES6=20,175.35368kW -121.0521221kW
=20,054.30156kW

ES6=20,054.30156kW
ES21=20,054.30156kW (.006)
=120.3258093kW
Flash Vessels
ES7=20,054.30156kW - 120.3258093kW
=19933.97575kW

ES7 =19933.97575kW
ES19 = 19933.97575kW (.0025)
=49.83493938kW
Column ES8= 19933.97575kW – 49.83493938kW
=19,884.14081kW

ES18=19,884.14081kW
Ewr=19,884.14081kW (.0025)
= 49.71035203kW
Condenser Benzene=19,884.14081kW - 49.71035203kW
=19,834.43046kW

Efficiency = Output/Input x 100%

Efficiency = 19,834.43046kW /24,552.25775kW x 100%

Efficiency = 85.78%

50
CHAPTER IV

ECONOMIC STUDY AND ANALYSIS

This chapter presents all the required calculations and the data regarding

the financial aspects of the designed Hydrodealkylation Plant. In this chapter the

payback period, rate of return and net present value is to be considered to

determine the most economical.

DESIGN OPTION 1

All capital and expenses for operation and construction of the designed

are estimated based on research.

A. Capital Expenditures

The Capital Expenditures (CAPEX) of the HDA Plant is summarized in the

Table 10 shown below.

Table 10. Estimation of Capital Expenditures for Design Option 1

Total Cost
PLANT EXPENSES Quantity Cost (Php)
(Php)
Admin 1 14,100,000.00
Control Room 1 18,600,000.00
Workshop and
Buildings 1 16,900,000.00
Powerhouse
Warehouse 1 13,700,000.00
Security Office 1 6,900,000.00

51
15,000
Land 5000/sqm 75,000,000.00
sqm
Vehicles 5 1,800,000.00 9,000,000.00
Toluene Feed
1 1,512,930.00 1,512,930.00
storage tanks
Mixers 6. 200,000 1,800,000
Pump 1 238,215.00 238,215.00
Compressor 1 200,000.00 200,000.00
Preheater 1 13,329,900.00 13,329,900.00
Furnace 1 29,049,250.00 29,049,250.00
Equipments Cooler 2 12,645,019 25,290,038
Heater 1 11,650,000.00 11,650,000.00
Flash Drum 2 500,000 1,000,000
Splitter 2 1,100,000.00 2,200,000.00
Distillation
2 41,736,000.00 83,472,000.00
Column
Benzene Storage
1 1,512,930 1,512,930
Tanks
Water
Treatment Reverse Osmosis 36,500,000.00
Facility
Storage
4 3,760,000.00 15,040,000.00
Facility
30% of Building
Installation Contractor Fee and Equipment 70,200,000.00
cost
Personal
Protective 12,000 5,000.00 60,000,000.00
Equipments
Health and
Safety Fire
150 3,000.00 450,000.00
Extinguishers
CCTV System 120 10,000.00 1,200,000.00

52
B. Operating Expenditures

Operating expenditure or OPEX will be the ongoing cost for running the

proposed HDA plant as summarized in Table 11

Table 11. Estimation of Operating Expenditure for design option 1

OPERATING EXPENDITURES (Yearly)


Cost/Salary
Plant Expenses Quantity Total
(Php)
Raw Material 3,070,000,000
Electricity 4,000,000
Utilities Water 1,500,000
Fuel 1,000,000
Office
100,000
Supplies
Property
15% of total
Taxes, 76,326,789.45
capital
Permits and
investment
Licenses
10% of total
Maintenance capital 50,884,526.3
investment
Operating General 720000 720000
1
Labor Manager
Plant
Operation 2 600000 600000
Manager
Engineering 480000 480000
8
Supervisor
HSSE 420000 420000
1
Supervisor
Accounting 1 360000 360000
Manager

53
Admin. Staffs 15 264000 264000
Plant 288000 288000
12
Operators
Chemist 5 300000 300000
Laboratory 210000 210000
3
Staff
Plant 360000 360000
5
Mechanics
Plant 360000 360000
2
Electricians
Security 144000 144000
5
Guards
Doctor 1 300000 300000
general plant upkeep and
overhead, payroll overhead,
Plant packaging, medical services, 15% of total
Overhead safety and protection, capital 76,326,789.45
Cost restaurants, recreation, investment
salvage, laboratories, and
storage facilities
External tree planting, feeding program 400,000

C. Total Project Cost

Table 12. Total Project Cost

Total Project Cost


Capital Expenditures 508,845,263

Operating Expenditures (Yearly) 3,285,344,105

D. Economic Indicators

1. Net Present Value

54
Net present value (NPV) is the difference between the present value

of cash inflows and the present value of cash outflows to analyze the

profitability the project. Table 4.6 shows the NPV of the proposed power plant

after ten (10) years of operation.


Let A= Benzene Generated: 61.008 kmol/hr * 78.11kg/kmol * 8760hr/yr
41174.33355 MT/Year

Let B= Proposed Price: Php 80000/MT

Gross Income = AxB = Php 3,339,546,684 (Assumed to include taxes)

Net Annual Income = GI - OPEX

= 3,339,546,684 - 3,285,344,105

=Php 54,202,578

Table 13. Net Present Value Estimation

Year Cash Flow Present Value


0 -508,845,263 -508,845,263
1 54,202,578 -454,642,685
2 54,202,578 -400,440,107
3 54,202,578 -346,237,529
4 54,202,578 -292,034,951
5 54,202,578 -237,832,373
6 54,202,578 -183,629,795
7 54,202,578 -129,427,217
8 54,202,578 -75,224,639
9 54,202,578 -21,022,061
10 54,202,578 33,180,517

55
2. Payback Period

Payback period refers to the period of time required to recoup the

funds expended in the proposed power plant, or to reach its break-even

point.

Payback Period = Total Capital Investment / Total Net Annual Income

Payback Period = 508,845,263 / 54,202,578

Payback Period =9.387842456 Years

3. Rate of Return or Rate of Investment

Rate of return will measure the profit as a percentage of investment of

the proposed power plant after years of operation, and calculated as follows:

After 10 years of operation

Rate of Return = Current value – Original Value/ original value x 100%

Rate of Return = 33,180,517/ 508,845,263 x 100%


Rate of Return within 10 yrs of operation= 6.520747939%

DESIGN OPTION 2

All capital and expenses for operation and construction of the designed

are estimated based on research.

56
A. Capital Expenditures

Capital Expenditures (CAPEX) is the money invested to acquire any fixed,

physical, non-consumable asset. Table 14 represents the summary of the

CAPEX of the HDA Plant.

Table 14. Estimation of Capital Expenditures

PLANT EXPENSES Quantity Cost (Php) Total Cost (Php)


Admin 1 14,100,000.00
Control Room 1 18,600,000.00
Workshop and
Buildings 1 16,900,000.00
Powerhouse
Warehouse 1 13,700,000.00
Security Office 1 6,900,000.00
15,000
Land 5000/sqm 75,000,000.00
sqm
1,800,000.0
Vehicles 5 9,000,000.00
0
Equipments 3,250,000.0
Reactor 1 3,250,000.00
0
Pump 1 238,215.00 238,215.00
Compressor 1 200,000.00 200,000.00
Distillation
1 938,428.00 938,428.00
Column
8,250,000.0
Furnace 1 8,250,000.00
0
1,650,000.0
Cooler 2 3,300,000.00
0
3,250,000.0
Reactor 1 3,250,000.00
0
Heat Exchanger 2 8,500,000.0 17,000,000.00

57
0
1,100,000.0
Splitter 2 2,200,000.00
0
5,500,000.0
Mixer 2 11,000,000.00
0
Valve 3 275,000.00 825,000.00
Water
Treatment Reverse Osmosis 36,500,000.00
Facility
Storage 3,760,000.0
4 15,040,000.00
Facility 0
30% of
Building and
Installation Contractor Fee 36,195,492.90
Equipment
cost
Personal
Protective 12,000 5,000.00 60,000,000.00
Equipments
Health and
Safety Fire
150 3,000.00 450,000.00
Extinguishers
CCTV System 120 10,000.00 1,200,000.00

B. Operating Expenditures

Operating Expenditure or OPEX will be the ongoing cost for running the

processing plant. Table 15 represents the summary of the CAPEX of the HDA

Plant.

Table 15. Estimation of Operating Expenditure

OPERATING EXPENDITURES (Yearly)


Cost/Salary
Plant Expenses Quantity Total
(Php)
Raw Material 3,000,000,000

58
Electricity 4,000,000
Utilities Water 1,500,000
Fuel 1,000,000
Office
100,000
Supplies
Property
15% of total
Taxes,
capital 53,105,570.39
Permits and
investment
Licenses
10% of total
Maintenance capital 35,403,713.59
investment
General
1 60,000/month 720,000
Manager
Plant
Operation 2 50,000/month 1,200,000
Manager
Engineering
8 40,000/month 3,840,000
Supervisor
HSSE
1 35,000/month 420,000
Supervisor
Accounting
1 30,000/month 360,000
Manager
Admin. Staffs 15 22,000/month 3,960,000
Operating
Labor Plant
12 24,000/month 3,456,000
Operators
Chemist 5 25,000/month 1,500,000
Laboratory
3 17,500/month 630,000
Staff
Plant
5 30,000/month 1,800,000
Mechanics
Plant
2 30,000/month 720,000
Electricians
Security
5 12,000/month 720,000
Guards
Doctor 1 25,000/month 300,000

59
general plant upkeep and
overhead, payroll overhead,
Plant packaging, medical services, 15% of total
Overhead safety and protection, capital 53,105,570.39
Cost restaurants, recreation, investment
salvage, laboratories, and
storage facilities
External tree planting, feeding program 400,000

C. Total Project Cost

Table 16 Total Project Cost

Total Project Cost


Capital Expenditures 354,037,135.90
Operating Expenditures 3,168,240,854

D. Economic Indicators

1. Net Present Value


Net present value (NPV) is the difference between the present value

of cash inflows and the present value of cash outflows to analyze the

profitability the project. Table X.XX shows the NPV of the proposed

processing plant after ten (10) years of operation


Let A = Benzene Generated: 4,583.324114kg/hr (24hrs/day)

(1ton/1000kg)

Benzene Generated: 110tons/day

Let B= Proposed Price: Php80,000/ton

Let C= Operating Time: 365days

60
Gross Income = AxBxC

Gross Income = (110 tons/day)( Php80,000/ton)(365days)

Gross Income = Php3,212,000,000 (Assumed to include taxes)

Net Annual Income = GI – OPEX

= Php3,212,000,000 - Php3,168,240,854

Net Annual Income = Php43,759,146

Table 17. Net Present Value Estimation

Year Cash Flow Present Value


0 -354,037,135.90 -354,037,135.90

1 43,759,146 -310,277,989.90
2 43,759,146 -266,518,843.90
3 43,759,146 -222,759,697.90
4 43,759,146 -179,000,551.90
5 43,759,146 -135,241,405.90
6 43,759,146 -91,482,259.90
7 43,759,146 -47,723,113.90
8 43,759,146 -3,963,967.90
9 43,759,146 39,759,178.10
10 43,759,146 83,554,324.10

1. Payback Period
61
Payback period refers to the length of time required to recover the

amount of money invested for the processing plant and it is calculated as

follows:

Payback Period = Total Capital Investment / Total Net Annual Income

Payback Period = Php354,037,135.90/ Php43,759,146

Payback Period = 8.091years

1. Rate of Return or Rate of Investment

Rate of return will measure the gain or loss on an investment over a

specified period of time. It is expressed as a percentage increase over the

initial investment cost and it is as calculated as follows:

After 10 years of operation

Rate of Return = Current value – Original Value/ original value x 100%

Rate of Return = Php83,554,324.10/ Php354,037,135.90x 100%

Rate of Return within 10 yrs of operation= 23.60%

DESIGN OPTION 3

All capital and expenses for operation and construction of the designed

are estimated based on research.

A. Capital Expenditures

62
Capital investment refers to the fund needed for the proposed procesing

plant, Table 18 shows the estimation of required amount of money needed to be

invested and its summary, respectively.

Table 18. Estimation of Capital Expenditures

PLANT EXPENSES Quantity Cost (Php) Total Cost (Php)


Admin 1 14,100,000.00
Control Room 1 18,600,000.00
Workshop and
Buildings 1 16,900,000.00
Powerhouse
Warehouse 1 13,700,000.00
Security Office 1 6,900,000.00
15,000
Land 5000/sqm 75,000,000.00
sqm
1,800,000.0
Vehicles 5 9,000,000.00
0
Equipments 3,250,000.0
Reactor 1 3,250,000.00
0
Pump 2 238,215.00 476,430.00
Compressor 1 200,000.00 200,000.00
Distillation
2 938,428.00 1,876,856.00
Column
8,250,000.0
Furnace 1 8,250,000.00
0
1,650,000.0
Cooler 1 1,650,000.00
0
3,250,000.0
Reactor 1 3,250,000.00
0
8,500,000.0
Reboiler 2 17,000,000.00
0
Splitter 1 1,100,000.0 1,100,000.00
0

63
5,500,000.0
Mixer 1 5,500,000.00
0
Water
Treatment Reverse Osmosis 36,500,000.00
Facility

Storage Facility 3,760,000.0 15,040,000.00


4
0
30% of 33,825,985.8
Building and
Installation Contractor Fee
Equipment
cost

Personal
Protective 10,000 5,000.00 50,000,000.00
Equipment
Fire
150 3,000.00 450,000.00
Extinguishers
Health and
Safety
CCTV System 1 250,000.00 250,000.00

B. Operating Expenditures

Operating expenditure or OPEX will be the ongoing cost for running

the proposed processing plant as shown in table 19 and its summary is

presented in table 20
Table 19. Estimation of Operating Expenditure

OPERATING EXPENDITURES (Yearly)


Cost/Salary
Plant Expenses Quantity Total
(Php)
Raw Material 3,431,095,890
Electricity 4,000,000
Utilities Water 1,500,000
Fuel 1,000,000
Office
100,000
Supplies

64
Property 49,922,890.77
15% of total
Taxes,
capital
Permits and
investment
Licenses
10% of total
Maintenance capital 33,281,927.18
investment
General
1 60,000 60,000
Manager
Plant
Operation 2 50,000 100,000
Manager
Engineering
8 40,000 320,000
Supervisor
HSSE
1 35,000 35,000
Supervisor
Accounting
1 30,000 30,000
Manager
Admin. Staffs 15 22,000 330,000
Operating
Labor Plant
12 24,000 288,000
Operators
Chemist 5 25,000 125,000
Laboratory
3 17,500 52,500
Staff
Plant
5 30,000 150,000
Mechanics
Plant
2 30,000 60,000
Electricians
Security
5 12,000 60,000
Guards
Doctor 1 25,000 25,000
general plant upkeep and
overhead, payroll overhead,
Plant packaging, medical services, 15% of total
Overhead safety and protection, capital 49,922,890.77
Cost restaurants, recreation, investment
salvage, laboratories, and
storage facilities

65
External tree planting, feeding program 400,000

C. Total Project Cost

Table 20. Total Project Cost

Total Project Cost


332,819,271.80
Capital Expenditures

3,572,859,099
Operating Expenditures

D. Economic Indicators

Net Present Value


Net present value (NPV) is the difference between the present value

of cash inflows and the present value of cash outflows to analyze the

profitability the project. Table 4.6 shows the NPV of the proposed power plant

after ten (10) years of operation.


Let A = Benzene Generated: 4,610.990057 kg/hr(24hrs/day)

(1ton/1000kg)

Benzene Generated: 110.6637614 tons/day

Let B= Proposed Price: Php89,000/ton

Let C= Operating Time: 365days

Gross Income = AxBxC

Gross Income = (110.6637614 tons/day)( Php89,500/ton)(365days)

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Gross Income = Php3,615,108,426 (Assume to include taxes)

Net Annual Income = G.I – OPEX

Net Annual Income = Php3,615,108,426 - Php3,572,859,099


Net Annual Income = Php42,249,326.53

Table 21. Net Present Value Estimation

Year Cash Flow Present Value


0 -332,819,271.80 -332,819,271.80
1 42,249,326.53 -290,569,945.27
2 42,249,326.53 -248,320,618.74
3 42,249,326.53 -206,071,292.21
4 42,249,326.53 -163,821,965.68
5 42,249,326.53 -121,572,639.15
6 42,249,326.53 -79,323,312.62
7 42,249,326.53 -37,073,986.09
8 42,249,326.53 5,175,340.44
9 42,249,326.53 47,424,666.97
10 42,249,326.53 89,673,993.50

Payback Period

Payback period refers to the period of time required to recoup the

funds expended in the proposed power plant, or to reach its break-even

point.

Payback Period = Total Capital Investment / Total Net Annual Income

67
Payback Period = Php332,819,271.80/ Php42,249,326.53

Payback Period = 7.8775 years

Rate of Return or Rate of Investment


Rate of return will measure the profit as a percentage of investment of

the proposed power plant after years of operation, and calculated as follows:

After 5 years of operation

Rate of Return = Current value – Original Value/ original value x 100%

Rate of Return = Php89,673,993.50/ Php332,819,271.80x 100%

Rate of Return within 10 yrs of operation= 26.9438%

68
CHAPTER V

Environmental Management of the Project

This chapter includes the environmental impacts of the Hydrodealkylation

Processing Plant and the mitigation to lessen their effect to the safety and health

of the people and the environment.

Socio-Economic Benefit of Hydrodealkylation Processing Plant

Positive benefits are being extended for the local community in terms of

the income for local economy and employment for residents during the

construction and operational phase of the designed power plant. Employment for

both skilled and semi-skilled workers were to be offered. Job such as

administration staff, medical staff and even catering services will be offered.

These personnel will be mostly hired from the residents of Limay, Bataan. Local

equipment to be used during the construction of the processing plant will also

result to economic boost to the resources coming from the community and will

produce a positive impact. The construction phase will also require numerous

skilled and semi-skilled employment. The management will also offer training

which is necessary for many new staff which will boost their skills and additional

techniques will be offered for the local market. When the operation phase started,

employment opportunities will also be offered especially for those skilled worker

in the community. The project will also provide revenue to local supporting

businesses within Bataan. During local activities such as fiestas and holidays, the

69
management will also offer assistance as well as participation can also be

expected. Since the management believe of what education can do, it will offer

scholarship for selected students from the local community. In conclusion, the

socio-economic impact of the processing plant would be positive and the

management would do its best to manage all the concerns and expectation of the

community in a fair and well-balanced manner.

Social, Political and Ethical Considerations

Decision making is a critical part when it comes to management of a

processing plant. Potential impact of strategic decision to the local community

and the people residing in it should always be considered. Decisions made by

the management will always consider virtues such as patronage, charity and

volunteerism to extend the sense of social responsibility.

Laws and regulation has always been a part of every decision making

activities. Decision from a legal stand point will be considered by the

management. The operation of the processing plant will always be working

according to laws and regulation. Compliance from the national and local

government laws will be highly perceived during the construction and operation

phase of the processing plant.

Ethical decisions will be considered based on the manner consistent to the

ethical principles and shared values in the society. Ethical principles will be

based on the values of the people living in Bataan. In making ethical decisions,

70
the management will perceive and eliminate unethical alternatives to prevent

ethical violations.

Health and Safety

Safety is the top priority of our management. We value the health and

safety of our employees and staff more than anything else. The local public holds

a positive attitude about the project and believe it can improve the development

of the local economy when it is completed so it is a responsibility of the

management to consider the health and safety of the local community as well.

Here is the main step the management will implement to ensure the health and

safety of everyone that is concerned all throughout the process.

A. Hazard Prevention and Control


The management identify all the hazard that exist all throughout the

processing plant. Staffs assign per worksite and machine operations are

well trained and tasked to ensure that each equipment is taken care of so

that less hazard can be expected. Maintenance and repair of all

equipment are scheduled and should be implemented during the date

indicated to ensure that they work according to its purpose in a safe and

sound manner. All employees, including all levels of management, are

tasked to obey the site’s safety and health rules and regulations.
B. Medical Services
The company provides a professional doctor to employ medical

care not just for the employees but for the near residences. Medicines for
71
both in-site and travelling purposes are also provided by the company. The

company also has its own medical equipment in case of urgent needs.

C. Personal Protective Equipment (PPE)


Personal Protective Equipment is the last line of defense of workers

most especially those engaged on high risk operation. Each employees

will have their own PPEs issued by the company to minimize exposure to

serious workplace conditions. Training are also provided to orient each

employee on how to use all equipment included in their PPEs. PPEs are

also engaged to maintenance and repair which is scheduled and damaged

PPEs should be replaced immediately.

Table 22.
Summary of Recommended PPE According To Hazard
OBJECTIVE WORKPLACE HAZARD SUGGESTED PPE

Eye and Flying particles, molten


Safety Glasses with side-shields,
face metal, liquid chemicals,
protective shades.
protection gases or vapors, light
radiation.

Falling objects, inadequate


Head Plastic Helmets with top and side
height clearance, and
protection impact protection.
overhead power cords

Hearing Hearing protectors (ear plugs or ear


Noise, ultra-sound.
protection muffs).

Falling or rolling objects, Safety shoes and boots for


Foot
pointed objects. Corrosive protection against moving &falling
protection
or hot liquids objects, liquids and chemicals.

Hazardous materials, cuts Gloves made of rubber or synthetic


Hand
or lacerations, vibrations, materials (Neoprene), leather, steel,
protection
extreme temperatures. insulating materials, etc.

72
Respiratory Dust, fogs, fumes, mists, Facemasks with appropriate filters
protection gases, smokes, vapors for dust removal and air purification
(chemicals, mists)

D. Security
Security personnel are located in every entry and exit point within

the plant to ensure that all person that enters and exits the plant are

authorized to minimize safety issues. Scanning devices are also provided

to ensure that all personal materials of workers that enters and exits the

plant will not cause any trouble in both the operation and the safety of all

staff. Closed Circuit Television Cameras (CCTV) are installed all over the

area for high security purposes. Footage will always be checked every

now and then. These measures are implemented to make sure that all the

workers are secure and safe and can work without any worries in their

minds.
E. Workplace Inspection
The management conducts monitoring and inspection, both

announced and surprised, to ensure that the workplace as well as the

equipment of the processing plant are safe to work with. A thorough

examination is done to identify any hazard and to apply corrective

measures to minimize hazard present in the workplace. This improves the

overall safety of the workers.


F. Calamity Drills
Calamities such as typhoon, earthquake and fire are phenomena

which cannot be controlled. The company conducts calamity drills every

month to train employees what to do during every situation that may

happen during a calamity. Evacuation plans are also distributed to make

73
sure that all employees have the knowledge of each escape route near

their location. Alarms are also installed all throughout every facility to

make sure that everyone can be hear signals of emergency situation.

Waste Management

Waste are the by-product of each process within the plant that cannot be

reused and needs disposal. Waste management is the process in which waste

that can cause impact on the environment as well as the surrounding community

are treated using technology available in accordance to local, national and

international legal framework. Proper disposal are studied and planned to make

sure that it will cause the least amount of effect on the environment and the

community around the processing plant. Water treatment facilities are also

implemented to ensure that the waste water generated from the plant will not

affect the groundwater and the water system where the waste will be disposed.

Here are the waste that the HDA processing plant will produced and the ways on

how the management will handle waste management.

A. Unused Toluene
Toluene, also known as toluol, is an aromatic hydrocarbon. It is a

colorless, water-insoluble liquid with the smell associated with paint

thinners. It is a mono-substituted benzene derivative, consisting of

a CH3 group attached to a phenyl group. As such, its IUPAC systematic

name is methylbenzene. Toluene is predominantly used as an

industrial feedstock and a solvent.

74
As the solvent in some types of paint thinner, contact cement and

model airplane glue, toluene is sometimes used as a recreational inhalant

and has the potential of causing severe neurological harm.

Proper Disposal of Toluene

1. Turn off any sources of ignition or any device that can spark. Toluene and

toluene vapor are highly flammable.

2. Put on safety glasses and safety gloves. Liquid toluene can chemically

burn the skin, causing redness, and toluene vapor can damage the eyes.

Be careful not to inhale any of the toluene vapor.

3. Clean up any toluene spills by covering them with sand, clay, dirt or an

organic commercial product. You can allow small spills to evaporate.

4. Place toluene in a nonchlorinated waste container for disposal. Store this

container in an unoccupied building or outdoors.

5. Call a chemical waste disposal service to remove the container containing

toluene. According to Practice Green Health, you must have toluene

removed within three days of accumulating more than 55 gallons of this

hazardous waste.

B. Wastewater

75
Wastewater (or waste water) is any water that has been affected by

human use. Wastewater is "used water from any combination of domestic,

industrial, commercial or agricultural activities, surface

runoff or stormwater, and any sewer inflow or sewer

infiltration". Therefore, wastewater is a byproduct of domestic, industrial,

commercial or agricultural activities. The characteristics of wastewater

vary depending on the source. Types of wastewater include: domestic

wastewater from households, municipal wastewater from communities

(also called sewage) or industrial wastewater from industrial activities.

Wastewater can contain physical, chemical and biological pollutants.

Wastewater Treatment

Reverse osmosis (RO) is a water purification technology that uses

a partially permeable membrane to remove ions, unwanted molecules and

larger particles from drinking water. In reverse osmosis, an applied

pressure is used to overcome osmotic pressure, a colligative property, that

is driven by chemical potential differences of the solvent,

a thermodynamic parameter. Reverse osmosis can remove many types of

dissolved and suspended chemical species as well as biological ones

(principally bacteria) from water, and is used in both industrial processes

and the production of potable water. The result is that the solute is

retained on the pressurized side of the membrane and the pure solvent is

allowed to pass to the other side. To be "selective", this membrane should

76
not allow large molecules or ions through the pores (holes), but should

allow smaller components of the solution (such as solvent molecules, i.e.,

water, H2O) to pass freely.

Mitigation Measures

Mitigating measures are set of plans and activities to lessen the effect of

the processing plant on the environment as well as the local government. Here

are the list of the primary mitigating measures that the processing plant will

implement during construction and operating phase.

A. During Construction
1. The construction team will implement the covering of piles of cement

and other load to minimize emission of dust in the surrounding.


2. Unauthorized person are not allowed to enter the premises during

construction phase so potential hazards can be lessen.


3. Equipment to be installed in the plant are of high specification and are

selected properly to minimize emissions, odor and noise from

spreading on nearby communities.


4. Planting activities will be done on the location to make up for the loss

of trees and plant species that are affected by the construction.


5. New areas will be provided by the management in cooperation with the

local government for native species to prevent habitat loss.

B. During Operation
1. Air quality will be monitored all throughout the process to ensure that

emissions are of the level allowable by the local and national law.

Alarms will be designated on air vents to make sure that no amounts of

77
emission will exceed the standard and that welfare of the employees

and the environment are considered.


2. Proper storage of raw materials are studied and planned to ensure

elimination of possible chemical hazard that can be resulted by

mishandling of such raw materials.


3. PPE program will be strictly observed all throughout the plant to ensure

the safety of employees at work.


4. Communication and coordination between the company, local

government unit and the nearby residents will be practiced to build

social interaction and to monitor the safety of the local residents and

the environment. Problems that may arise will be dealt with immediate

action.
5. Waste disposal will be according to the local and national standards to

ensure that it will cause no harm with the nearby communities and the

environment surrounding the processing plant.

Environmental Standards

This section provides the list of the main laws and regulation that the

company work with accordingly.

A. Presidential Decree (PD) 1586: Philippine Environmental Impact

Statement

The main objective of this law is to maintain the balance between

the environment and the socio-economic development of the country. It

aims to protect the environment despite the increasing demand of natural

resources and development to attain sustainability.

78
B. Republic Act (RA) 6969: Philippine Toxic Substances and Hazardous

and Nuclear Waste Act

It is the policy of the State to regulate, restrict or prohibit the

importation, manufacture, processing, sale, distribution, use and disposal

of chemical substances and mixtures that present unreasonable risk

and/or injury to health or the environment; to prohibit the entry, even in

transit, of hazardous and nuclear wastes and their disposal into the

Philippine territorial limits for whatever purpose; and to provide

advancement and facilitate research and studies on toxic chemicals.

C. Republic Act (RA) 8749: Philippine Clean Air Act

The Act provides for the creation of a national program of air

pollution management focusing primarily on pollution prevention; for the

promotion of mass media communication in order to create social

awareness and active participation in air quality planning and monitoring

D. Republic Act (RA) 9003: Philippine Ecological Solid Waste

Management Act

This Act makes provision for the efficient solid waste management,

for the volume reduction of the waste, its environment friendly disposal,

composting, recycling, re-use, recovery, green charcoal process; for the

collection, treatment and disposal in environmentally sound solid waste

management facilities whereas it shall be possible to correctly dispose the

79
proper segregation, collection, transport, storage, treatment and disposal

of solid waste

80
CHAPTER VI

PROJECT DESIGN TRADE-OFFS

In selecting the best design, multiple realistic constraints will be

considered. The table below presents the summary of the multiple realistic

constraints of the three design options.

Table 23. Multiple Realistic Constraints

Multiple
Realistic Design Option 1 Design Option 2 Design Option 3
Constraints

Percent
97.15% 80.3% 85.78%
Conversion

Net Present
Php33,180,517.0 Php83,554,324.10 Php89,673,993.50
Value

Level of
High Low Medium
Waste

Design Philosophies

A. Worst Case Design

Using scale from one to ten, each realistic constraints are scored and are

evaluated using worst case design.

Technical Scale Calculation

Design Option 1:
81
100%:10 = 97.15%:X; X = 9.72

Design Option 2:

100%:10 = 80.3%:X; X = 8.03

Design Option 3:

100%:10 = 85.78%:X; X = 8.58

Economical Scale Calculation

Design Option 1:

90M:10 = 33M:X; X = 3.69

Design Option 2:

90M:10 = 84M:X; X = 9.28

Design Option 3:

90M:10 = 89M:X; X = 9.96

Envvironmental Scale Calculation

Design Option 1:

No waste:10 = High waste: X; X = 3

Design Option 2:
82
No waste:10 = Low Waste: X; X = 9

Design Option 3:

No waste:10 = Medium Waste: X; X = 6

Table 24 Worst Case Design

Multiple Realistic Design Option 1 Design Option 2 Design Option 3


Constraints

Technical 9.72 8.03 8.58

Economical 3.69 9.28 9.96

Environmental 3 9 6

Worst Result DO1 = 3

Worst Result DO2 = 8.03

Worst Result DO3 = 6

Based on the Worst Case Design philosophy, the designers find that

Design Option 2 is the best design to opt to in the selection of Hydrodealkylation

Processing Plant among the three design options.

83
B. Pareto Optimum Design

Degree of Importance:

Technical = 4

Economical = 3

Environmental = 5

Table 25. Pareto Optimum

Multiple Design Design Design Degree of


Realistic Option 1 Option 2 Option 3 Importance
Constraints

Technical 9.72 8.03 8.58 4

Economical 3.69 9.28 9.96 3

Environmental 3 9 6 5

Design Option 1 = 4(9.72) + 3(3.69) + 5(3)

= 65.76

Design Option 2 = 4(8.03) + 3(9.28) + 5(9)

= 104.96

Design Option 3 = 4(8.58) + 3(9.96) + 5(6)

= 94.2

84
Based on the Pareto Optimum Design philosophy, the designers find that

Design Option 2 is the best design to opt to in the selection of Hydrodealkylation

Processing Plant among the three design options.

CHAPTER VII

PROJECT CONSTRUCTION EXECUTION PLAN

The proposed project execution plan for the hydrodealkylation processing

plant in Limay, Bataan is presented in this chapter. This chapter discusses about

different factors to be considered before and during the construction phase as

well as during operation phase of the processing plant. This includes the

discussion of the scope of the work, the goal of the execution plan, allocation of

resources, and scheduling and commissioning of the proposed project.

Scope of Project Construction Execution

The scope of the project execution plan involves the sequence of events

that will be involved in the construction phase, the resources and the

organization of the project including the personnel to make the HDA processing

85
plant possible. The planning phase as well as the preparations to be made

before the construction of the plant are also included in this section. The

engineers and experts involved in the construction phase will decide and

consider details and studies for the erection of the hydrodealkylation processing

plant such as the plant location, resource allocation, the current demand and the

forecast on the local and international market, technical details and construction

plan.

Scheduling of the proposed project will be agreed upon after the

agreement and setting of a plan for the processing plant. Set of time frame will

assigned to each activity to make sure that each task were accomplished. These

activities include the planning, procurement, construction, start up, and

commissioning of the project. Target goals and objectives for every activity will be

set to provide a clear image of the expected output.

Organizational Considerations

Coordination of many different fields of expertise concerned with the

project construction is required for the execution of the project. This would

include the administration department, technical department, and financial

department. The administration of department will be the one to oversee the

overall operation. A general manager will be assigned for the task. The

department will serve as the framework of the project. The main function of this

department is to provide connections with different departments in order to

provide an efficient and reliable communication of information.

86
The financial department will manage the costs, revenues, and other

financial aspects that is concerned with the construction and operation of the

project. The department will study the cost effectiveness while considering the

quality of the equipment and materials required for each phase of construction as

well as operation.

The technical department will include engineering principles such as civil,

electrical, and mechanical and instrumentation expertise who will provide

detailed engineering plans in the construction of the power plant. This includes

the structural details, piping layout, electrical layouts and instrumentation details

that will be installed. This department also weighs in the economical aspect of

the construction along with the technical expertise that the construction of the

proposed project entails.

Construction Management

The construction manager will supervise and coordinate the construction

of the proposed hydrodealkylation processing plant considering the choice of

location based on the three key requirements for the viability of plant which are

the fuel source, ease of access for transportation and source of water as well as

the consideration of the location of the supplier of raw material which is the

Petron Refinery situated in Bataan.

Quality Assurance and Technical Specifications

All deliverables and quality of the products delivered during the

construction phase of the processing plant will be checked by the material

87
engineers and quality control specialists to ensure the legitimacy of the

equipment and materials delivered. Specification of every equipment will also be

checked by the engineers to ensure that it is optimal for the operation and could

handle different temperatures, pressures and other parameter ranges involved.

This stage also pertains to the control towards the quality of the product

generated from the plant to the consumers. Environmental considerations

through the emissions that may be released and the waste generated from the

plant are also covered in this section. The procedures in controlling the quality is

to ensure that the generated toluene adheres to the quality criteria or meets the

requirements or demand of the consumer.

Quality assurance differs from quality control as it is system of maintaining

standards in manufactured products by testing a sample of the output against the

specification. The equipment used is also checked if it complies with the

temperature and pressure capacity which will take part in the continuous plant

operations. Redesigning or reconsideration of other product will be observed

when limitations are met. For the total capacity of the plant, each of the

components needed for the plant should be of the right specifications.

Resources Allocation

Different forms of resources including materials and manpower are the

main focus of this section. The management and allocation of the resources must

be optimal to ensure that every department will be able execute their work in the

best way. Resources will be allocated and scheduled economically and will be

88
monitored to prevent over-allocation and under-allocation. The project manager

will be assigned for monitoring of resources to ensure smooth operations during

the construction phase.

Plant Layout

The layout of the proposed hydrodealkylation processing plant is shown in

the figure below. This includes the key equipment which requires installation. The

layout considers the distances of equipment in relation to other components in

order to save time and costs for transportation and is essential to operation. It is

also arranged in order to achieve efficient coordination, productivity, and flexibility

between the components while taking into account the safety measures involved.

Figure 21. 3D layout of the Proposed HDA Processing Plant

The 3D model presented includes the setup of the proposed

hydrodealkylation processing plant, the facilities shown include the parking area,

the warehouse, the substation, the administration building, and the

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manufacturing area which houses the components necessary for

hydrodealkylation process.

Project Commissioning and Execution

Construction of the processing plant requires various permits which should

be obtained from the government. This includes the management of the different

contracts and permits which may refer to building, lease, purchase and

operation. Compliance should be acquired from the Department of Environment

and Natural Resources (DENR) especially when there will be environmental

changes to be performed.

The HDA processing plant is composed of different components which has

their own respective functions. The overall system and components of the

processing plant should be designed, installed, tested, operated and maintained

according to the operational requirements. Proper design of plant should be

observed, since it is the key to achieve the designed output. The size of the

design chosen is considered for the land occupancy on its erection. Safety

installation of equipment in the processing plant should be conformed properly.

The plant performance can be calculated and evaluated and it is ideal to test

them to assure proper functioning and can start with the operations.

The plant operations require maintenance as there are plenty of things to be

considered to be able to have an efficient run. Preventive maintenance is an

unceasing procedure as long as the plant is running and this should be complied.

To enable the processing plant, meet its plant life effectively and efficiently,

without any hitch, it should be used and maintained properly.

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Through the phase of project development, proper schedule should be

followed, having time management and discipline also need to be considered,

otherwise it will have an adverse effect to the construction period of the plant that

may also delay the plant operation.

The construction of the plant will be able to provide opportunities for the

locality that they may have development in the community. Building ties with the

local government and community sets a platform for further mutual

understanding. Such negative effects that the plant may impart should be solved,

as the wellness of the residents should be a priority.

Project Scheduling and Overall Management

The project manager who is in charge of the entirety of the construction

execution phase will need to plan, budget, oversee and document all aspect of

the erection of the processing plant. They may work closely with the upper

management to make sure that the scope and direction of the construction phase

is on schedule, as well as other departments for support.

Project management requires detailed planning with realistic goals and is

set to be achieved with the given resources and time. A Gantt chart is presented

below which shows the planned construction execution, with the activities listed

as well as the expected time of construction divided quarterly.

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Figure 22. Summary of Tasks in the Construction of the Proposed HDA

Processing Plant

Figure X shows the pacing of every task with the given time frames in which

it should be followed, when a certain task is slacking, the project manager will

have to shift from monitoring to controlling in order to achieve the task within the

allocated time due to the possibility of one task piling over the other and thus,

delaying the construction phase, and ultimately, the start of commission and

operation of the project.

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CHAPTER VIII

SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS

This chapter presents an overall rundown of pertinent details regarding the

designed plant, and consists of summary of findings, conclusion and

recommendations for the development of Hydrodealkylation Processing Plant.

Summary of Findings

The following results relative to the Hydrodealkylation Processing Plant

were summarized as follows:

1. The Hydrodealkylation Processing Plant total required input of raw

materials, toluene (5708 kg/hr) and hydrogen (301 kg/hr) is sufficient to produce

110 tons of benzene annually which will able the plant to meet the growing global

demand of benzene materials.

2. The proposed processing plant of benzene material in the country will

supply the local industries and manufacturers, specifically polymers, which have

great demand in the use of benzene material to produce by products. Exportation

of the product is also considered.

3. The proposed plant will be located at Roman Expressway at Limay,

Bataan, near other industrial plants. The land area for the proposed plant is 1.5

hectares which approximate value is Php75,000,000.00. The capital expenditure

(CAPEX) estimate that the total project of the equipment cost specification for the
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designed plant is approximately Php354,037,135.90 and the operating

expenditure (OPEX) is Php3,168,240,854.

4. The investment‘s payback period calculated as 8.091 years and rate of

return of 23.60% is assessed to be apparent.

Conclusions

Based from the analysis of information and data gathered, the proponents

established the following conclusions:

1. The annual growth estimation rate of benzene material indicates its high

escalation in terms of demands and use. With the current demand trend of

benzene material, Asia Pacific region contributes the most.

2. Technical information and data, specifications and capacity of

equipment, resources of raw materials and process flow is considered in

evaluating the capability of the proposed plant, which has the capacity to

produce 4,583 kg/h of benzene material, to meet the growing demand of the

benzene material.

3. Alternative designs are made to fully consider the most appropriate

and efficient design and operation in the production of benzene. Selection of

the best design was conducted based on the conversion, net present value,

waste produced and equipment capacity in each design.

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4. The proposed hydrodealkylation production plant has an approximate

of 8 years for payback period.

5. The proposed Hydrodealkylation Processing Plant is a minimal waste

production plant. Recovery system for the waste produced, such toluene and

waste water, are installed for further use of the materials, thus decreasing the

cost requirements for materials. The recovered materials will then be stored

and used in the next process.

6. Environmental Impact Assessment is conducted to identify the

hazards that may be produced before, during and after the construction and

processing of the plant to the people around the community, to the

environment and to the staffs. Mitigations, preventions and protections are also

readily identified to prevent the people and environment from these hazards.

7. For the project construction execution plan, four phases of

preparation is set for the smooth flow which are the conceptualization phase,

feasibility study phase, basis of design phase and basic design phase.

Different phases are also set for the quality control and assurance.

Recommendations

Based on the foregoing findings and conclusions presented, the following

recommendations are suggested for further development of the

Hydrodealkylation Processing Plant:

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1. Installation of water treatment facilities for further processing of the

water collected in water reserve tanks. The treated water can be used for other

activities inside the plant and thus can also be reused in the process.

2. Additional information and data about the equipment specifications,

process and other factors affecting the process are required to develop cost-

effective, reliable, emission-compliant systems.

3. Proper maintenance of the equipment is also suggested to maintain

the efficiency of the process and prolong the life of equipment. A regular

schedule of maintenance for equipment decreases the possibility of having

faulty equipment during the process that may cause delay.

4. More critical calculations for the designed plant are recommended to

ensure that the total costs are accurate

5. Further research must be conducted to select alternative catalyst to

be used in the process and alternative process methods of more efficient

production of benzene.

6. Larger plant capacity is also suggested for the next advocates of this

production plant, since the demand trend of the benzene globally is very high.

7. Further research for more efficient waste treatment of the plant must

be conducted while taking inconsideration the health, safety and environment

during the construction and operation of the process plant.

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