5) COST CALCULATION

Generally, capital cost estimating has five classifications:

1. Order of magnitude Estimate also known as Ratio or Feasibility

2. Study Estimate, also known as Major equipment or Factored
3. Preliminary Design Estimate, also known as Scope
4. Definitive Estimate, also known as Project Control
5. Detailed Estimate, also known as Firm or Contractors

This five classifications roughly correspond to the five classes of estimate defined in
the AACE Recommended Practice No. 17R-97[4]. This part will discuss on
Preliminary Design Estimate which is Class 3. For the cost estimation of a chemical
plant, a Class 3 estimate is typically +10% to -40% accurate. This means by doing
such an estimate, the true cost of building the plant would likely be in the range of
0.1 higher than and 0.4 lower than the estimated price. If greater accuracy is
required in the capital cost estimate, then more money and time must be expended
in conducting the estimate.

A. Estimation Of Purchased Equipment Costs

The purchased cost and an attribute of the equipment are the most common simple
relationship related to units of capacity and it is given by
Ca
A
= a
Cb
Ab

( )

Where:

A = Equipment cost attribute

C = Purchased cost
N = Cost exponent

Subscripts:

a refers to equipment with the required attribute

b refers to equipment with the base attribute

B. Effect of Time on Purchased Equipment Cost

The cost of equipment is depend on past records or published correlations for price
information, it is essential to be able to update these costs to take into account
changing economic conditions (inflation). This can be achieved by using the
following expression:
C2 =C1

I2
I1

()

Where:

C= Purchased cost
I =Cost Index

Subscripts:

1 refers to base time when cost is known

2 refers to time when cost is desired

C. Calculation for Cost of Equipments

log 10 C p=K 1+ K 2 log 10 A + K 3 (log10 A )

The value of K1, K2, and K3 can be obtained from Table A.1 and A is the capacity of
the equipment.

F BM =B 1+ B2 F M F P

B1 and B2 can be obtained from Table A.4

FM can be obtained by referring the Table A.3 for the identification number for the
material and then refer the material factor at Figure A.8
FP can be obtained by two methods which are

3. For process vessel,

8500.6 ( P+ 1 )

+ 0.00315
2
( P+1 ) D

F P ,vessel =

4. For other equipment

2

log 10 F P=C 1+C 2 log 10 P+C 3 (log 10 P)

Value of C1, C2, and C3 can be obtained from the Table A.2 and P is the unit pressure
of bar gauge or barg.

C BM =C oP F BM

D. Sample of Calculation

I.

i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

Calculation for Heat Exchanger:

Step 1 (Characteristic)

E-301
E-302
E-303
E-304
E-305
E-306
E-307
E-308
E-309

A = 62.6 m2
A = 80.1 m2
A = 546 m2
A = 1567 m2
A = 348 m2
A = 57.8 m2
A = 54.6 m2
A = 22.6 m2
A = 17.5 m2

Floating Head
Floating Head
Floating Head
Fixed Head
Floating Head
Fixed Head
Floating Head
Fixed Head
Floating Head

SS-shell / SS-tube
SS-shell / SS-tube
SS-shell / SS-tube
CS-shell / CS-tube
CS-shell / CS-tube
CS-shell / CS-tube
CS-shell / CS-tube
CS-shell / CS-tube
CS-shell / CS-tube

Step 2 (Find K from Table A.1)

For HE with Floating Head:

K1 = 4.8306
K2 = -0.8509
K3 = 0.3187

For HE with Fixed Head:

K1 = 4.3247
K2 = -0.3030
K3 = 0.1634

i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

Step 3 (Find Cp)

log 10 C op=K 1+ K 2 log 10 A + K 3 (log10 A )2

E-301, Cp = $21,407
E-302, Cp = $23,212
E-303, Cp = $77,499
E-304, Cp = $105,842
E-305, Cp = $53,291
E-306, Cp = $19,865
E-307, Cp = $20,616
E-308, Cp = $16,369
E-309, Cp = $18,422

Step 4 (Find FM from Table A.3)

For SS-shell / SS-tube Heat Exchanger: Identification number = 5, F M = 2.7

For CS-shell / CS-tube Heat Exchanger: Identification number = 1, F M = 1

Step 5 (Find B1 and B2 from Table A.4)

For all Heat Exchanger:

B1 = 1.63
B2 = 1.66

Step 6 (Find C from Table A.2)

For E-301 to E-305,

C1 = 0.03881
C2 = -0.1127
C3 = 0.08183

For E-306 to E-309,

C1 = 0
C2 = 0
C3 = 0

x.
xi.
xii.
xiii.

Step 7 (Find FP)

2
log 10 F P=C 1+C 2 log 10 P+C 3 (log 10 P)

E-301, FP = 1.08
E-302, FP = 1.08
E-303, FP = 1.08
E-304, FP = 1.08

xiv.
xv.
xvi.
xvii.
xviii.

i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.

II.

E-305, FP = 1.08
E-306, FP = 1
E-307, FP = 1
E-308, FP = 1
E-309, FP = 1

Step 8 (Find CBM in 2001)

C BM (2001)=CoP (B 1+ B2 F P F M )

E-301, CBM = $138,515

E-302, CBM = $150,195
E-303, CBM = $501,462
E-304, CBM = $362,276
E-305, CBM = $182,404
E-306, CBM = $65,356
E-307, CBM = $67,827
E-308, CBM = $53,854
E-309, CBM = $60,608

Step 9 (Find CBM in 2014)

I
576.1
C BM ( 2014 )=C BM ( 2001 ) 2014 =C BM ( 2001 )
I 2001
394

E-301, CBM = $202,534

E-302, CBM = $218,090
E-303, CBM = $733,229
E-304, CBM = $529,714
E-305, CBM = $266,708
E-306, CBM = $95,562
E-307, CBM = $99,175
E-308, CBM = $78,744
E-309, CBM = $88,620

Calculation for Furnace

Step 1 (Characteristic)

H-301

T = 341.5 C

SS-tubes

Step 2 (Find K from Table A.1)

K1 = 7.3488
K2 = -1.1666
K3 = 0.2028

Step 3 (Find Cp)

log 10 C op=K 1+ K 2 log 10 A + K 3 (log10 A )2

H-301, Cp = $834,929

Step 4 (Find C from Table A.2)

C1 = 0.1347
C2 = -0.2368
C3 = 0.1021

Step 5 (Find FP)

log 10 F P=C 1+C 2 log 10 P+C 3 (log 10 P)2

H-301, FP = 1

Step 6 (Find FT)

FT =1+0.00184 ( T )0.00000335

H-301, FT = 1.24

Step 7 (Find FBM from Table A.)

For SS-tube Furnace: Identification number = 55, F BM = 2.8

Step 8 (Find CBM in 2001)

o
C BM (2001)=C P F P F T F BM

H-301, CBM = $2,898,873

Step 9 (Find CBM in 2014)

I
576.1
C BM ( 2014 )=C BM ( 2001 ) 2014 =C BM ( 2001 )
I 2001
394

H-301, CBM = $4,238,682

III.

i.
ii.
iii.
iv.
v.

Calculation for Pump:

Step 1 (Characteristic)

P-301
P-302
P-303
P-304
P-305

Displacement
Centrifugal
Centrifugal
Centrifugal
Displacement

Carbon Steel
Carbon Steel
Carbon Steel
Carbon Steel
Carbon Steel

Actual Power = 15 kW
Actual Power = 1 kW
Actual Power = 1 kW
Actual Power = 1.4 kW
Actual Power = 2.7 kW

Step 2 (Find K from Table A.1)

For P-301 and P-305:

K1 = 3.4771
K2 = 0.1350
K3 = 0.1438

i.
ii.
iii.
iv.
v.

Step 3 (Find Cp)

log 10 C op=K 1+ K 2 log 10 A + K 3 (log10 A )2

P-301, Cp = $7,873
P-302, Cp = $2,501
P-303, Cp = $2,501
P-304, Cp = $2,578
P-305, Cp = $3,951

Step 4 (Find FM from Table A.3)

For Positive Displacement Pumps: Identification number = 32, F M = 1.4

For Centrifugal Pumps: Identification number = 38, F M = 1.5

Step 5 (Find B1 and B2 from Table A.4)

For all Pumps:

B1 = 1.89
B2 = 1.35

Step 6 (Find C from Table A.2)

For P-301 and P-305,

C1 = -0.245382
C2 = 0.259016
C3 = -0.01363

For P-302, P303 and P-304,

C1 = 0
C2 = 0
C3 = 0

i.
ii.
iii.
iv.
v.

i.
ii.
iii.
iv.
v.

Step 7 (Find FP)

log 10 F P=C 1+C 2 log 10 P+C 3 (log 10 P)2

P-301, FP = 1.17
P-302, FP = 1
P-303, FP = 1
P-304, FP = 1.31
P-305, FP = 1.17

Step 8 (Find CBM in 2001)

o
C BM (2001)=C P (B 1+ B2 F P F M )

E-301, CBM = $32,290

E-302, CBM = $9,791
E-303, CBM = $9,791
E-304, CBM = $11,711
E-305, CBM = $16,204

Step 9 (Find CBM in 2014)

I
576.1
C BM ( 2014 )=C BM ( 2001 ) 2014 =C BM ( 2001 )
I 2001
394

i.
ii.
iii.
iv.
v.

E-301, CBM = $47,214

E-302, CBM = $14,316
E-303, CBM = $14,316
E-304, CBM = $17,124
E-305, CBM = $23,693

IV.

Calculation for Tower:

i.
ii.

Step 1 (Characteristic)

T-301
T-302

Carbon Steel
Carbon Steel

45 SS Sieve Tray
76 SS Sieve Tray

Step 2 (Find K from Table A.1)

For T-301 and T-302:

K1 = 3.4974
K2 = 0.4485
K3 = 0.1074

For Stainless Steel Tray:

K1 = 2.9919
K2 = 0.4465
K3 = 0.3961

i.
ii.

Step 3 (Calculate Volume = D2L / 4 and Area = D2 / 4)

T-301, Volume = 62.31 m3

T-302, Volume = 51.18 m3

tray = 0.42
tray = 0.45

For Stainless Steel Tray:

i.
ii.

i.
ii.

Tray T-301, Area = 2.27 m2

Tray T-302, Area = 1.77 m2

Step 4 (Find Cp)

log 10 C op=K 1+ K 2 log 10 A + K 3 (log10 A )2

T-301, Cp = $44,477
T-302, Cp = $37,814

For Stainless Steel Tray:

i.
ii.

Tray T-301, Cp = $44,477

Tray T-302, Cp = $37,814

Step 5 (Find FM from Table A.3)

For Carbon Steel Tower: Identification number = 18, F M = 1

Step 6 (Find B1 and B2 from Table A.4)

For T-301 and T-302:

B1 = 2.25
B2 = 1.82

Step 7 (Find FP)

8500.6 ( P+ 1 )

+ 0.00315
2
( P+1 ) D

F P ,vessel =

i.
ii.

T-301, FP = 1.14
T-302, FP = 1.06

Step 8 (Find FBM for Tray in Table A.6)

For Stainless Steel Sieve and Valve Tray: Identification number = 61, F BM = 1.8

Step 9 (Find Fq)

For N 20, Fq = 1

Step 10 (Find CBM in 2001)

o
For tower, C BM (2001)=C P ( B1 + B2 F P F M )
o

For tray, C BM (2001)=C P N F BM F q

i.
ii.

T-301, CBM = $192,354

T-302, CBM = $158,032

For Stainless Steel Tray:

i.
ii.

Tray T-301, CBM = $128709

Tray T-302, CBM = $183,312

For total CBM (2001),

i.
ii.

T-301, CBM = $321,063

T-302, CBM = $341,344

Step 11 (Find CBM in 2014)

I
576.1
C BM ( 2014 )=C BM ( 2001 ) 2014 =C BM ( 2001 )
I 2001
394

i.
ii.

T-301, CBM = $469,453

T-302, CBM = $499,107

V.

Calculation for Reactor:

i.
ii.
iii.
iv.

Step 1 (Characteristic)

R-301
R-302
R-303
R-304

Stainless Steel
Stainless Steel
Stainless Steel
Stainless Steel

V = 20 m3
V = 25 m3
V = 30 m3
V = 1.67 m3

Step 2 (Find K from Table A.1)

For R-301, R-302, R-303 and R-304:

K1 = 4.7116
K2 = 0.4479
K3 = 0.0004

Step 3 (Find Cp)

o
2
log 10 C p=K 1+ K 2 log 10 A + K 3 (log10 A )

Pressure = 22 bar
Pressure = 22 bar
Pressure = 22 bar
Pressure = 22 bar

i.
ii.
iii.
iv.

R-301, Cp = $197,246
R-302, Cp = $218,031
R-303, Cp = $236,633
R-304, Cp = $66,311

Step 4 (Find FBM from Table A.3)

For Reactor, FBM = 4

i.
ii.
iii.
iv.

Step 5 (Find CBM in 2001)

C BM (2001)=CoP F BM

R-301, CBM = $788,984

R-302, CBM = $872,124
R-303, CBM = $946,532
R-304, CBM = $265,244

Step 6 (Find CBM in 2014)

I
576.1
C BM ( 2014 )=C BM ( 2001 ) 2014 =C BM ( 2001 )
I 2001
394

i.
ii.
iii.
iv.

R-301, CBM = $1,153,639

R-302, CBM = $1,275,205
R-303, CBM = $1,384,003
R-304, CBM = $387,835

VI.

Calculation for Vessel:

i.

Step 1 (Characteristic)

V-301

Horizontal

L/D=5

V = 7 m3

ii.
iii.
iv.

V-302
V-303
V-304

Vertical
Horizontal
Horizontal

L/D=3
L/D=3
L/D=3

Step 2 (Find K from Table A.1)

For V-301, V-303 and V-304:

K1 = 3.5565
K2 = 0.3776
K3 = 0.0905

For V-302:

K1 = 3.4974
K2 = 0.4485
K3 = 0.1074

i.
ii.
iii.
iv.

Step 3 (Find Cp)

log 10 C op=K 1+ K 2 log 10 A + K 3 (log10 A )2

V-301, Cp = $8,715
V-302, Cp = $11,306
V-303, Cp = $9,169
V-304, Cp = $8,176

Step 4 (Find FM from Table A.3)

For Carbon Steel Vessels: Identification number = 18, F M = 1

Step 5 (Find B1 and B2 from Table A.4)

V = 10 m3
V = 7.7 m3
V = 6.2 m3

For V-301, V-303 and V-304:

B1 = 1.49
B2 = 1.52

For V-302:

B1 = 2.25
B2 = 1.82

i.
ii.
iii.
iv.

i.
ii.
iii.
iv.

Step 7 (Find FP)

8500.6 ( P+ 1 )

+ 0.00315
2
( P+1 ) D

F P ,vessel =

V-301, FP = 1
V-302, FP = 1.03
V-303, FP = 1
V-304, FP = 1.02

Step 8 (Find CBM in 2001)

C BM (2001)=CoP (B 1+ B2 F P F M )

V-301, CBM = $26,231

V-302, CBM = $46,633
V-303, CBM = $28,379
V-304, CBM = $24,858

Step 9 (Find CBM in 2014)

C BM ( 2014 )=C BM ( 2001 )

i.
ii.
iii.
iv.

VII.

I 2014
576.1
=C BM ( 2001 )
I 2001
394

V-301, CBM = $38,354

V-302, CBM = $68,186
V-303, CBM = $41,495
V-304, CBM = $36,345

Calculation for Total CBM in 2014 :

Total CBM(2014) = $12,021,343

Table 5.1: The actual bare module cost, CBM ($)

Equipment

No.
E-301
E-302
E-303
E-304
E-305
Heat Exchanger
E-306
E-307
E-308
E-309
Furnace
H-301
P-301
P-302
P-303
Pump
P-304
P-305
Tower
T-301
T-302
R-301
R-302
Reactor
R-303
R-304
V-301
V-302
Vessel
V-303
V-304
Total bare module cost,
CBM2011 ($)

Actual bare module cost, CBM ($)

73,627
79,835
266,550
364,033
183,289
65,356
67,827
53,854
60,608
2,956,851
29,760
9,454
9,454
9,745
14,935
369,239
255,743
788,984
872,124
946,532
265,244
26,143
46,015
27,601
24,610
7,867,413

Total bare module cost,

CBM2014 ($)

11,503,595

E. Calculation for Total Module Cost (CTM) and Grassroots Cost (CGR)

CTM =1.18 C BM
i=1

= 1.18 x ($12,021,343)
= $14,185,185

CGR =CTM + 0.50 CoBM

i=1

= $14,185,185 + 0.50($11,503,595)
= $19,936,983

F. Manufacturing Cost Estimation

Factors affecting the cost of manufacturing (COM), for a chemical Product

Factor
1. Direct cost
a. Raw materials

Description of Factor
Factors that vary with the rate of production
Costs of chemical feed stocks required by the process.

b. Waste treatment

Flowrates obtained from the PFD.

Cost of waste treatment to protect environment.

c. Utilities

Costs of utility streams required by process. Includes

but not limited to:
i.

Fuel gas

ii.

Electric power

iii.

Steam(all pressures)

iv.

Cooling water

v.

Process water

vi.

Boiler feed water

vii.

Instrument air

viii.

Inert gas (nitrogen) etc.

d. Operating labor
e. Direct supervisor

ix. Refrigeration
Costs of personnel required for plant operations.
Cost of administrative/ engineering and support

and clerical labor

f. Maintenance and

personnel.
Costs of labor and materials associated with the

repairs
g. Operating supplies

maintenance.
Costs of miscellaneous supplies that support daily
operation not considered to be raw materials. Examples
include chart paper, lubricants, miscellaneous
chemicals, filters, respirators and protective clothing for

h. Laboratory charges

operators, etc.
Costs of routine and special laboratory tests required for

product quality control and troubleshooting.

i. Patents and royalties Costs of using patented or licensed technology.
2. Fixed costs
a. Depreciation

Factors not affected by the level of production

Costs associated with the physical plant (buildings,
equipment, etc.). Legal operating expense for tax

b. Local taxes and

Insurance

purposes.
Costs associated with property taxes and liability
insurance. Based on plant location and severity of the

process.
c. Plant overhead costs Catch-all costs associated with operations of auxiliary
(sometimes referred

facilities supporting the manufacturing process. Costs

to as factory

involve payroll and accounting services, fire protection

expenses)

and safety services, medical services, cafeteria and any

recreation facilities, payroll overhead and employee

benefits, general engineering, etc.

3. General expenses

Costs associated with management level and

administrative activities not directly related to the

a. Administration costs

manufacturing process
Costs for administration. Includes salaries, other

b. Distribution and

administration, buildings, and other related activities.

Costs of sales and marketing required to sell chemical

selling costs
c. Research and
development

products. Includes salaries and other miscellaneous

costs.
Costs of research activities related to the process and
product. Includes salaries and funds for research
related equipment and supplies, etc.

Costs of Manufactures (COM) = Direct Manufacturing Costs (DMC) +

Fixed Manufacturing Costs (FMC) + General Expenses (GE)

The cost of manufacturing, COM, can be determined when the following costs are
known or can be estimated:

a) Fixed capital investment (FCI) : (CTM or CGR)

b) Cost of operating labor (COL)
c) Cost of utilities (CUT)
d) Cost of waste treatment (CWT)
e) Cost of raw materials (CRM)

The table above gives data that are needed to calculate to estimate the individual
cost items that are identified above. With the exception of the cost of raw materials,
waste treatment, utilities, and operating labor all the data need to be calculate by
using certain equations. If no other information is available, the midpoint values for
each of these ranges is used to estimate the costs involved. Hence, all the
summation of the datas for the calculation of manufacturing cost can be simplified
into these equations:

DMC = CRM+ CWT + CUT + 1.33COL + 0.069FCI + 0.03COM

FMC = 0.708COL + 0.069FCI + depreciation
GE

= 0.177COL + 0.009FCI + 0.16COM

We can obtain the total manufacturing cost by adding these three categories
together and solving for the COM and the result is:

COM = 0.280FCI + 2.73COL + 1.23(CRM+ CWT + CUT)

The cost of manufacture without depreciation:

COMd = 0.180FCI + 2.73COL + 1.23(CRM+ CWT + CUT)

a) Fixed capital investment, FCI (CGR)

CTM

= 1.18 CBM
= 1.18($12, 021343)
= $ 14,185,185

CGR

= CTM + 0.5 CBM

= $ 14,185,185 + 0.5($ 11,503,595)
= $ 19,936,983

b) Cost of operating labor (COL)

The technique used to calculate operating labor requirements is based on data

obtained from five chemical companies and correlated by Alkayat and Gerrard.

According to this method, the equation for the operating labor requirement for a
chemical processing plant is given by:
NOL= (6.29 + 3.17P2 + 0.23Nnp) 0.5

Where NOL is the number of operators per shift, P is the number of processing step
involving the handling of particulate solids, and N np is the number of non-particulate
processing steps handling steps includes compression, heating and cooling, mixing,
and reaction.
Nnp =

Equipment
Equipment
Compressor
Heat Exchanger
Furnace
Reactors
Towers
Vessels

Quantity
0
9
1
4
2
4

Nnp
0
9
1
4
2
-

Total

20

16

Hence, when Nnp is equal to165, the number of operating labor requirement is

NOL

= [6.29 + 3.1(0) + 0.23(16)] 0.5

NOL

= 3.158

The value of NOL is the number of operators required to run the process unit per shift.
A single operator works on the average 49 weeks (3 weeks time off for vacation and
sick leave) a year, five 8-hour shift a week.

= 49 week/yr 5 shift/week
= 245 shifts per operator/year

A chemical plant operates 24 hours per day. This requires (365 days / year

shift / day) 1095 operating shifts per year. The number of operators needed to
provide this number of shifts is

= 1095 shift/year

245 shifts per operator/year

= 4.5 operators

Hence,
the operating labor = NOL 4.5 operators
= 3.158 4.5
= 14.21 15 operators

The cost of operating labor, C OL is equal to the salary given to each of operator
yearly which in this case the yearly salary given is $59, 580

COL = $59, 580 x 15 = $893,700/ y

c) Cost of utility (COT)

No.

Type

Type of
equipment
Heat exchanger

No. of
equipment
2

Price

Total Price / year

$13.28 / GJ

$ 2,373,445.05

1.

Low-Pressure
Steam

2.

High-Pressure
Steam

Heat exchanger

$17.10/ GJ

$ 2,934,204.03

3.

Cooling Water

Heat exchanger

$0.354/GJ

$ 51,498.81

4.

Natural Gas

Furnace

$11.10/GJ

$ 2,755,953.47

5.

Electricity

Pump

$0.06/kWh

$ 13,989.28
Total
$ 8,129,090.59

Stream Factor = 0.95

1. E-301 Duty is 1.967 GJ/h. From table above, Cost of High-Pressure Steam =
$17.70/GJ

Yearly cost = Q x CHPS x stream factor

=

1.967

GJ
hr

$ 17.70
GJ

24 hr
1 day

365 days
1 year

x 0.95

= $ 289,737.90 / year

2. E-302 Duty is 2.592 GJ/h. From table above, Cost of High-Pressure Steam =
$17.70/GJ

Yearly cost = Q x CHPS x stream factor

=

2.592

GJ
hr

$ 17.70
GJ

24 hr
1 day

365 days
1 year

x 0.95

= $ 381,800.04 / year

3. E-303 Duty is 10.080 GJ/h. From table above, Cost of High-Pressure Steam =
$17.70/GJ

Yearly cost = Q x CHPS x stream factor

=

10.080

GJ
hr

$ 17.70
GJ

24 hr
1 day

365 days
1 year

x 0.95

= $ 1,484,777/ year

4. E-304 Duty is 12.367 GJ/h. From table above, Cost of Low-Pressure Steam =
$13.28/GJ

Yearly cost = Q x CLPS x stream factor

GJ
= 1 2.367 hr

$ 13.28
GJ

24 hr
1 day

365 days
1 year

x 0.95

= $ 1,366,753.35 / year

5. E-305 Duty is 4.943 GJ/h. From table above, Cost of Cooling Water = $0.354/GJ

Yearly cost = Q x CCW x stream factor

=

4.943

GJ
hr

$ 0.354
GJ

24 hr
1 day

365 days
1 year

x 0.95

= $ 14,562.02/ year

6. E-306 Duty is 9.109 GJ/h. From table above, Cost of Low-Pressure Steam =
$13.28/GJ

Yearly cost = Q x CLPS x stream factor

9.109

GJ
hr

$ 13.28
GJ

24 hr
1 day

365 days
1 year

x 0.95

= $ 1,006,691.70 / year

7. E-307 Duty is 7.276 GJ/h. From table above, Cost of Cooling Water = $0.354/GJ

Yearly cost = Q x CCW x stream factor

GJ
= 7.276 hr

$ 0.354
GJ

24 hr
1 day

365 days
1 year

x 0.95

= $ 21,435.01/ year

8. E-308 Duty is 5.281 GJ/h. From table above, Cost of High-Pressure Steam =
$17.70/GJ

Yearly cost = Q x CHPS x stream factor

GJ
= 5.281 hr

$ 17.70
GJ

24 hr
1 day

365 days
1 year

x 0.95

= $ 777,888.13/ year

9. E-309 Duty is 5.262 GJ/h. From table above, Cost of Cooling Water = $0.354/GJ

Yearly cost = Q x CCW x stream factor

GJ
= 5.262 hr

$ 0.354
GJ

24 hr
1 day

= $ 15,501.70/ year

10. Electric Power = Actual power / efficiency

365 days
1 year

x 0.95

Equipment

Actual power (kW) Efficiency

P-301 A/B
P-302 A/B
P-303 A/B
P-304 A/B
P-305 A/B

15.0
1.0
1.0
1.4
2.7

Electric
(kW)
20.00
1.33
1.33
1.75
3.60

75%
75%
75%
80%
75%

Total Electric Power = 28.01 kW. Cost of electricity = $0.06/kWh

Yearly cost = Q x Celectricity x stream factor

$ 0.06
kWh

= 28.01 kW x

24 hr
1 day

365 days
1 year

x 0.95

= $ 13,989.28 / year

d) Cost of Waste Treatment (WWT)

Assume that,
Waste treatment = $0.0/year

e) Raw material costs:

Benzene ($1.0934/kg)
kg
= 9276.721 hr
= $

$ 1.0934
kg

24 hr
1 day

365 days
1 year

x 0.95

84,411,433.62

Ethylene ($1364/kg)
kg
3132.39 hr

$ 1.364
kg

24 hr
1 day

365 days
1 year

x 0.95

power

= $

35,556,421.76

Total raw materials

$
=

84,411,433.62 +

35,556,421.76

$ 119,967,855.40

COMd =0.180FCI + 2.73COL + 1.23(CUT + CWT + CRM)

= 0.180FCI + 2.73COL + 1.23(Utilities + Waste treatment+ raw materials)
= (0.180 x $ 19,936,983) + 2.73($ 893,700) + 1.23($ 8,129,090 + 0 + $119,967,855)
= $ 163,587,701 / year

6) PROFITABILITY ANALYSIS

A. Non-discounted Cash Flow

Working Capital, WC

= 20% FCI
= 20% ($19,936,983)
= $3,987,397

Land Cost, L

= $10,000,000

Total Fixed Capital Investment, FCIL

= $19,936,983