CE3001

SECTION A. PROCESS ECONOMICS

Answer ONE question from Section A

1. A new chemical refinery is being built and the managing director would like
to know the estimated capital cost in £, in the year 2020. The process
consists of 9 process steps and is constructed of stainless steel. The
process operates at 150 °C and 10 atm with a capacity of 300,000 tonnes
per year.

(a) Stating any assumptions made, use the Zevnik and Buchanan method
and data given in TABLE Q1 to estimate the capital cost of the plant
in $.
(10 marks)

TABLE Q1

CEPCI 2016 541.7

CEPCI 2020 596.2
Exchange rate 2016 0.74 £ / US $

C £ 2016 =k × N ×Q 0.6 × 10(

FT +F P + FM )
Zevnik and Buchanan
equation
k = 6655
Q = plant capacity, t y-1
TMAX = K
PMAX = atm
FT = 1.8 x 10-4 (TMAX – 300)
FP = 0.1 log(PMAX)

FM = 0 Mild (carbon) steel and

wood
0.1 Aluminium, brass, some
stainless
0.2 Monel, nickel, some
stainless
0.3 Hastelloy
0.4 Precious metals

(b) What is a process step or a functional unit?

(3 marks)

(c) Why are the step counting methods less accurate than the factorial
method?
(4 marks)

(d) Explain with the aid of diagram/s the impact of supply and demand on
the chemical and process industries.
(8 marks)

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[Total: 25 marks]

2.
(a) Use a discounting method and the data in TABLE Q2 to assess the
profitability of a proposed 40,000 tonnes per year acetic acid plant. The
plant is based on conventional technology, and the market is well-
established.
(13 marks)

TABLE Q2

Capital cost £30 million, built in one year

Operating cost £250 per tonne of product
Income £450 per tonne of product
Working capital 3 months operating cost
Plant life 5 years

(b) Explain, in detail, the meaning of the following terms:

i) Amortisation
(4 marks)

ii) Economy of scale

(4 marks)

iii) Return on investment

(4 marks)
[Total: 25 marks]

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SECTION B. LOSS PREVENTION

Answer BOTH questions from Section B

3. You are involved in the design of a new biofuel production facility. During the
design, you need to consider the potential hazards and risks.

(a) What hazard identification technique would you recommend to properly

consider the hazards and risks associated with the process? Briefly
describe what is involved within the technique chosen.
(4 marks)

(b) For the technique you recommended in 3(a), explain the advantages
and disadvantages.
(5 marks)

(c) One of the hazards identified is the flammability of the biofuel. Explain
the difference between the flash point and the auto-ignition point.
(2 marks)

(d) A situation being discussed by the design team is a leak of biofuel from
a storage tank. Discuss the potential consequences for the initiating
event, mentioning the severity associated with each consequence.
(8 marks)

(e) Another scenario is overpressure in the reactor. List the common

causes of overpressure.
(6 marks)
[Total: 25 marks]

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4. During the restart of a distillation column following a major shutdown, it was

discovered that a slip-plate had been left in the suction line between the
reflux drum and the pump on the drum side of the isolation valve (see Figure
Q4). The drum was about half full of water with a layer of volatile oil on the
top. To avoid shutting down, it was decided to remove the slip-plate and
allow the water to drain out from the joint.

However, the fitter failed to remake the joint in time. Oil came out of the joint
and ran across the ground towards the furnace. The trip button to shut down
the furnace was pressed, but it failed to operate, and the burners had to be
shut down manually, while the oil advanced.

It was subsequently discovered that the furnace trip had been giving trouble
before the shutdown, and a supervisor had by-passed it “for a few days, until
the shutdown”.

a) List and explain the initiating causes for this incident.

(10 marks)
b) List and explain the potential consequences of this accident.
(6 marks)
c) Describe three risk reduction measures that could be put in place to
prevent this incident re-occurring in the future.
(6 marks)
d) What factors determine the magnitude of an incident?
(3 marks)
[Total: 25 marks]

FIGURE Q4
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END OF QUESTIONS

END OF PAPER

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