Cost Estimation and HAZOP

Supervisor: Engr.Khaliq-ul-Zaman

100,000 Tons per year Production of Benzene by

Hydrodealkylation of Toluene

Presented by:
Daud Arshad 18123123-010
Uswah AbuBakar 18123123-045
Hamyal Awais 18123123-060
COST ESTIMATION OF REACTOR

Name: Hamyal Awais

Roll no. 18123123-060
 COST ESTIMATION OF REACTOR
CE= CB(Q/QB)M
where,
CE = equipment cost with capacity Q
CB = known base cost for equipment with capacity QB
M = constant depending on equipment type

(Chemical Process Design and Integration - Robin Smith) Chapter 2; Table 2.1
CB =1.15×104
QB =1m3
M =0.45
Q = 31 m3
CE = 1.15×104(31/1)0.45
CE =151084 $

Reactor original cost in 2002 from Chemical Process Design and Integration -
Robin Smith
The cost can be adjusted to bring it up-to-date using the ratio of cost indexes
Present cost=original cost x Index value at present time
Index value at time original cost was
obtained

From Plant Design and Economics for Chemical Engineers 5th Edition by
Klaus D.Timmerhaus
(mep.co.uk)

Cost index in 2002=525.4

Cost index in 2022=560
CE = 151084 × 560
  525.4
CE =1517127.59 $
Indirect cost of Reactor

CF =[fm fPfT(1+fPIP)]CE+(fER+fINST+fELEC+fUTIL+fOS+fBUILD+fSP+fDEC+fCONT+fWS)CE

where,
CF = fixed capital cost for the complete system
CE = cost of equipment
fm = correction factor for materials of construction
fP = correction factor for design pressure
fT = correction factor for design temperature

CF = [(1.0)(1.0)(2.1)(1+0.7)]1517127.59
+(0.4+0.2+0.1+0.5+0.2+0.2+0.1+1.0+0.4+0.7)1517127.59

CF =2295634.095 $

(Values from Chemical Process Design and Integration - Robin Smith)

(Chemical Process Design and Integration - Robin Smith) Chapter 2; Table 2.2
& Table 2.5
(Chemical Process Design and Integration - Robin Smith) Chapter 2; Table 2.7
Catalyst
Catalyst used = MoO3/SiO2
Volume of Catalyst bed = V𝟏 = 24.56 m3
Catalyst bulk density = 𝜌𝑏 = 400 kg/m3
Weight of Catalyst = W = 9824.774 kg
Cost of catalyst in 2021 = 36 $
Cost of catalyst = (weight of catalyst) x (cost of catalyst)
= (9824.774) x (36)

Cost of catalyst = 255444.1240 $

Total cost of Reactor = 2295634.095 + 255444.1240

Purchased Reactor cost in 2022 = 2551078.124 $

(Chemical Process Design, Simulation and Optimization by Jean-Pierre

Corriou, Jean-Claude Assaf) page no. 236
Cost Estimation

18123123-010
 Distillation column
Height of column = 12.6m
Diameter = 1.25m
Operating pressure = 1.6bar
No. of tray =23
Cost of distillation column in 2002 = 31000$
From graph ch.15 (form Timmerhaus)
Cost of D.C per tray = 1.7 X10^3
Graph (Figure 15-13) ch. 15 (form Timmerhaus)
PLANT DESIGN AND ECONOMICS FOR CHEMICAL ENGINEERS
FIFTH EDITION
• Total trays 23 = (1.7 X10^3)(23)
= 39100$
Total cost of d.c = 31000+39100 =70100$
Cost index = Cb (Q/Qe)
Here :
Cb = original cost
Q = Index value at present
Qe = index value at time of original cost
Cost index in 2002 = 390 (form Timmerhaus)
Cost index in 2014 = 556
Cost index in 2021 = 602 (mep.co.uk)

Cost in 2021 = 70100 (602/390)

=108205.6$
Condenser
Total Investment Cost:
Total physical plant cost = PPC = Purchased
Cost of Equipment × 3.40
Total physical plant cost = PPC = 1083198 ×
3.40
Total physical plant cost = PPC = 3682873.2
$
Fixed Capital Cost:
Fixed capital cost = PPC × 1.45
Fixed capital cost = 5340166.1 $
Working Capital Cost:
Total Investment:
Cost Total investment cost = Working capital cost +
Fixed capital cost
Total investment cost = 1068033.23 + 5340166.1 =
6408199.33 $
Maintenance:
Maintenance = 10% of fixed capital cost
Maintenance = 0.1 × 5340166.1 = 534016.6 $
•Labour Cost:
•Plant capacity = 4.9 × 106 kg/day
•Employee (h/day) = 50
•Number of units = 9
•Employee hours = 9 × 50 × 360 = 162000 employee h/yr
•Present Wages = 43 $/h Operating labour cost = 162000 h/yr
× 43 $/h = 6966000 $/yr
•Plant overhead:
•Plant overhead = 50 % of labour cost= 3483000 $/yr
Capital charges:
Capital charges = 10 % of fixed capital cost = 534016 $/yr
Insurance:
Insurance = 1 % of fixed capital cost = 5340 $/yr
Local Taxes:
Local taxes = 2% of fixed capital cost = 10680.3 $/yr
Total fixed operating cost:
Total fixed operating cost = 2.8 *107 $/yr
 Indirect cost
components % Total cost
Engineering 8 139879$
Construction expense 10 176286$
Legal expense 2 344490$
Contractors fee 5 315225$
Total 916164$
 Variable Operating Cost:
Raw Material:
• Toluene Flow rate = 123.2 tons/hr
Cost per ton = 998 $
Total cost = 122984.5 $/yr
• CO2 Flow rate = 159.476 ton/hr
Cost per ton = 500 $
Total cost = 79737.9 $/yr
Total cost of Raw Material = 202722.4 $/yr
Miscellaneous Material:
Miscellaneous material = 10% of maintenance cost Miscellaneous material
Miscellaneous Material = 534016.6 $/yr

Total Variable Operating Cost:

Total variable operating cost= 736,739 $/yr.

Direct Production Cost:

Direct Production Cost = Total Fixed Operating Cost + Total Variable Operating Cost
Direct Production Cost = 2.8 *107 + 736,739 = 28736739 $/yr

Annual Production Cost:

Annual Production Cost = Direct Production Cost + Plant Overhead
= 3483000 + 28736739 = 32219739 $/yr
Net Profit:
• Production Cost
Production cost = Annual production cost/Annual production rate kg/yr
Annual production rate = 1.5 × 10 9 kg/yr
Production cost = 0.0214 $/kg
• Total Income
Selling price of benzene (2022) = 0.37 $/kg
Total income = Selling price × Plant capacity × No. of days
Total income = 0.37 × 150000 × 300
Total income = 1.6 × 108 $/yr
Gross Income:
Gross income = Total income – Annual production cost
Gross income = 1.6 × 108 - 32219739 = 134280261
$/yr
Net Profit = Gross profit – (Operating expenses +
Taxes)
Net profit = 134280261 – (2.8 *107 + 10680.3)
Net profit = 1.06 × 107 $/yr
 HAZOP

18123123-045
 HAZOP
A hazard and operability study (HAZOP) is a structured and systematic examination of a planned or
existing process or operation in order to identify and evaluate problems that may represent risks to personnel or
equipment, or prevent efficient operation
HAZOP is done by defining some parameters and guide words.
• Parameters are the process variables, which apply to the design intention. Variations in these parameters
could constitute Deviations from the design Intention.
• Guide words are employed to each parameter in order to identify deviations in its behavior.

Deviation Cause Consequence Safeguard Action

E.g. Flow/No Potential cause Consequences Any existing Actions to
of the of the cause devices that remove the
deviation and the prevent the cause or
deviation itself cause or make mitigate the
its consequences
consequences
less painful
 Hazop study
A HAZOP survey is one of the most common and widely accepted method of systematic
qualitative hazard analysis. It is use for both new and existing facilities and can be applied to the whole
plant, a production unit or a piece of equipment. It uses as its database the usual sort of plant and
process information and relies on the judgment of engineering and safety expert in the areas with which
they are most familiar. The end result is therefore reliable in terms of engineering and
operational expectations, but it is not quantitative and may not consider the consequences of complex
sequences of human error. The objectives of a HAZOP study can be summarized as follows:
1. To identify (areas of the design that may possess a significant hazard potential
2. To identify and study features of the design that influence the probability of a hazardous
incident occurring.
3. To familiarize the study team with the design information available.
4. To ensure that a systematic study is made of the areas of significant hazard potential.
5. To identify pertinent design information not currently available to the team.
6. To provide a mechanism for feedback to the client of the study teams detailed comments.
 Conti..
GUIDE WORDS MEANINGS
No Negation of Design merit
Less Quantitative Decrease
More Quantitative Increase
Part of Qualitative Decrease
As well as Qualitative Increase
Reverse Logical opposite of indent
Other than Complete Substitution
 Conti..

Guide Deviation Causes Consequences Action

words
NO No flow (stream 4) Blockage in line Fluid in furnace Consider an
overheats interlock on fuel
gas flow
No O2 in combustion Rich fuel (air Unburnt fuel and O2 analyzer with
chamber mixture) CO in combustion self-checking
process circuit controls
ratio reliably

No flow (stream 6) Heat tubes burst explosion Pressure Drop

alarm and
shutdown
No flue gas flow Supply pipe rupture Cold shot to Interlock with
furnace, quenching process shutdown
reaction
No flame Momentary loss of Explosive mixture Automatic flame
flue gas detection with
reignition cycle
 …
More off Higher temperature Sudden reduction Reactor overheats Consider an
in stream 6 flow interlock on fuel
rate gas flow

Higher pressure Down stream Tube failure Pressure relief

blockage system on tubes
Higher temp. in Increased temp of Flame become Robust demister
heater stream 4 erratic design
Loss of control Higher stream in Interlock on
furnace stream 6 furnace controls
Higher conc.of O2 Lean fuel air ratio Waste Use
in exhaust concentration
sensor

Less off Lower temperature Flame out Cold shot to R- Automatic flame
101, quenching detection with
reaction reignition cycle

Less flow in stream Heat tubes burst explosion Interlock

6 than in stream 4 withdifferential
flow alarm and
shutdown
Less pressure in Burst pipe down Explosion and toxic Alarm on low
tubes stream release pressure or low
flow
Conti..
Hazop study on Heat Exchanger
Conti….
 Conti..

• Canadian Center for Occupational Health and Safety:

• Chemical Process Design and Integration - Robin Smith
• http://www.ccohs.ca/oshanswers/chemicals/chem_profiles/benzene.html)