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5.1. The total purchased cost of the major equipment items

for the process (PCE)
1. Reformer:
P = 20 atm
nt = 14220 kmol/hr
T = 455 c = 728 k
R = 0.083 atm l / mol k
Time of 1 mol stay in reactor : t = 30 sec
n = 14220*30/3600 = 118.5 kmol/hr
PV = nRT

20 V = 118500 * 0.083*728
V = 358 m3
Max volume of reactor (jacketed, non-agitated) is 43 m3
No. of reactors = 358/40 = 9 reactors
Cost of reactor = 15000*400.4 = 65601 $
Cost of reactors = 65601*9 = 590415.5199 $ (2004)

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2. ATR
P = 18 atm
nt = 14842.813 kmol/hr
T = 1000 c = 1273 k
R = 0.083 atm l / mol k
Time of 1 mol stay in reactor : t = 30 sec
n = 14842.813*30/3600 = 123.69 kmol/hr
PV = nRT
18 V = 123690 * 0.083*1273
V = 726 m3
No. of reactors = 726/40 = 20 reactors
Cost of reactor = 15000*400.4 = 65601 $
Cost of reactors = 65601*20 = 1312020 $ (2004)

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3. F-T reactor:
P = 60 atm
nt = 19040.7592 kmol/hr
T = 227 c = 500 k
R = 0.083 atm l / mol k
Time of 1 mol stay in reactor : t = 60 sec
n = 19040.7592*60/3600 = 317.345 kmol/hr
PV = nRT
60 V = 317345 * 0.083*500
V = 219 m3
No. of reactors = 219/40 = 6 reactors
Cost of reactor (stainless steel)= 422900 $
Cost of reactors = 422600*6 = 2537400 $ (2007)

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4. Absorber and stripper:
V = 330 m3
d = 3m
V = Π d2 L/4
330*4/ Π 32 = 46.68 m
2 columns, height of each one = 50 m
From chart
Cost of one vessel = 210000*1*1.4 = 294000 $
Cost of 2 vessel = 294000*2 = 588000 $ (2004)

5. Water separator vessel:

d= 3m
L= 30m
Stainless steel
Cost= 200000*2*1.8 = 720000$ (2004)

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6. Heat exchanger:
We have 14 H.E,
floating head,
with average area of heat transfer = 250 m2
C.S shell and Stainless steel tube
Pressure : 30-50 bar
Cost of one H.E = 190000*1.3 = 247000 $
Cost of 14 H.E = 14*247000 = 3458000 $ (2004)

7. Kettle reboiler.
Cost = 61700 $ (2007)

8. Fired heater
Duty = 190E6 BTU/hr
Stainless steel
Box tybe , P:600 psi
Cost = 5000400 $ (2007)

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Total cost 2007
F-T reactor …............. 2537400
kettle reboiler ………..61700
Fired heater ………….5000400

Total cost 2004

Reformer ……….……….590415.52

ATR ……………….... .1312020

absorber and stripper … 588000
water separator vessel …720000
Heat exchanger ………..3458000

Cost index
2004 = 111
2007 = 115
2011 = 120
Cost of equipment 2004 = 6668435.52 $

Cost in 2011 = cost in 2004*

Cost 2011 = 6668435.52 = 7209119.481$

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Cost of equipment 2007 = 7599500 $

Cost 2011 = 7599500 = 7929913.043 $

The total purchased cost for the major equipment

items (PCE) = 15139032.52 $
5.2. The total physical plant cost

(PPC) = PCE *(1+f1+f2+…………+f9)

F1 Equipment erection………………………………0.4

F2 Piping…………………………………………….0.7

F3 Instrumentation…………………………………..0.2

F4 Electrical………………………………………....0.1

F5 Building, Process………………………………...0.15

F6 Utilities…………………………………………..0.5

F7 Storage……………………..……………………0.15

F8 Site Development…………………………….....0.05

F9 Ancillary Buildings……………………………..0.15

PPC = 15139032.52 * 3.4 = 51472710.57 $

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Fixed Capital = PPC * (1+f10+f11+f12)
F10 Design & Engineering…………………………0.3
F11 Contractor's fee………………………………...0.05
F12 Contingency……………………………………0.1

Fixed Capital = 51472710.57 * 1.45 = 74635430.33 $

The F-T plant represents about 70% of the value of the factory, so,
the total fixed capital = 106.7 E6 $

5.3. The Operating Cost:

Divided into:
- Fixed Cost
- Variable Cost

1st the Fixed cost

1- Maintenance 5% of fixed cost = 0.05* 75000000 = 3750000$/y
2- Operating labor
The plant assumed to work for 24 h/d, 330 d/y, 2 shifts/day, 20
workers/shift, 1.5$/h for a worker
1.5*20*24= 720$/d

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720*330= 237600 $/y
Operating labor costs 237600 $/y
3- Laboratory Costs = 20% of labor costs = 0.2*237600= 47520 $/y
4- Supervision =20% of labor costs = 47520 $/y
5- Plant Overheads = 50% of labor costs = 0.5*237600 = 118800 $/y
6- Capital Charges = 10% of fixed capital =0.1*75000000
= 7500000 $/y
7- Insurance = 1% of fixed capital =750000 $/y
8- Local Taxes = 2% of fixed capital = 15000000 $/y
9- Royalties = 1% of fixed capital =750000 $/y
Operating fixed cost = 28201440 $
Total operating fixed cost of plant = 40285714.29
2nd Variable Cost
Working hours per year =24*330= 7920 h/y
1-Raw material:

Raw cost Flow rate Annual cost

material Kg/hr ($/yr)
CH4 0.4 $/kg 137676 436157568
H2O 0.4 $/ton 108450 343569.6
O2 0.138 $/kg 196778.24 215070745
Total 651571882.6

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2- Miscellaneous materials … 5% of maintenance
= 0.05*3750000 = 187500 $/yr
Variable cost = 651759382.6 $/yr
Direct product cost = fixed cost + variable cost = 692045096.9 $/yr
- sales expense
- general overhead
- R&D
All about 25 % of direct product cost = 173E6 $/yr
Annual production cost = 173E6 + 692.1E6 = 865.1E6 $/yr

5.4. Cost of product

This is range of production
Products Production Price Annual sales
$/yr
Diesel 49155 gal/hr 3.29 $/gal 662079500
LPG 1140 gal/hr 1.62 $/gal 14774333.33
Naphtha 11245 gal/hr 2.51 $/gal 225799500
Total 902653333.3

ROR = *100

ROR = *100 = 4.7%

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5.5. RECOMMENDATIONS
This process makes a low profit, to make it high profit, should:
1- Reduction in the cost of Natural Gas
2- increase in the selling prices of the liquid fuels
3- Heat integration leads to a reduction in cost

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