Professional Documents
Culture Documents
Team 06 The Minions - Vedant Didwania, Luke Harris, Alia Khan, and Sarah Leung
Agenda
Executive Summary
Abstract Project Background
Optimum Design
Financial Analysis Sustainability Final Recommendations
Reaction Scheme Separation Scheme Optimization Projected Costs of Project Market Pricing Feasibility Simulation
Conclusion
BACKGROUND
Abstract
Assess the feasibility and sustainability of developing an ethylene production facility capable of producing 25,000 pounds per hour of 99.5% by weight ethylene To be used in plastic production facility in the Champaign-Urbana area 15-year project scope 350 production days per year Currently: Plant is purchasing ethylene
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
Relevance of Ethylene
Most highly produced organic compound globally 141M tons of ethylene was produced last year, Up by 3M from the previous year Slated to increase by around 6M Ethylene itself has no final use Building block for a large array of chemical products
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
Innovation Map
ABC Chemicals Value Environmentally Friendly Reliable production from non-fossil fuel source
Product
Project Differences
Renewable
Technology
Dehydration Reaction
Cracking
In Brazil
In USA
Silica Catalyst
Sulfuric Acid
Ethanol Dehydration
Strengths: Simplicity Environmentally friendly Ethanol accessibility Safer Lower FCI than steam cracking Weaknesses: Higher raw material cost Smaller profit margin
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
REACTOR SCHEME
Reaction Scheme
Consists of feed pump, process heater, steam-injected reactor with catalyst regenerator, two heat exchangers Feed of 49473 lb/h of 95% ethanol and 4000 lb/h hps
Background Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
Flow (lbmol/h) Discharge Pressure (psig) Temperature (F) Driver Type Shaft Power (hp) Material of Construction Number of spares
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
10
H-101 Type Tube Pressure (psig) Tube Temperature Duty (MJ/hr) Fuel Type Fired Heater 2 720 37300 Natural Gas
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
11
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
12
Reactor R-101
Catalyzed PFR coupled with catalyst regenerator Operated isothermally by steam injection Activated alumina as catalyst Simulated in ChemCAD as isothermal Kinetic Reactor Jacketed Agitated Isothermal PFR in CAPCOST
R-101 Type Jacketed Agitated (Isothermal PFR) 1630 720 23 4 Steam Injected
Volume (ft3)
Operating Temperature (F) Operating Pressure (psia) Pressure Drop (psi) Specifications
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
13
R-101 Optimization
Sensitivity studies from Volume, Pressure, and Temperature versus product flow rates to maximum ethylene production with optimizing ethylene selectivity 81% ethylene selectivity 1630 ft2 Reactor operating at 23 psia and 720F Catalyst options Replacement every 90 days 4 reactors operating in series at 25% 50% 75% and 100% catalyst purities Catalyst regenerator Catalyst regenerator the cheapest option
14
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
15
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
16
SEPARATION SCHEME
17
Ethanol Recycle
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
18
Flash Tanks
Removes excess water from process Two tanks with interstage cooling to reduce utilities usage and unit sizes Sensitivity study on ChemCAD utilized to determine operating temperature
V-101 Height (ft) Diameter (ft) Orientation Pressure (psig) 6.6 2.2 Vertical 4 V-102 6.6 2.2 Vertical 4
Temperature (F)
Material of Construction CBM
185
Carbon Steel $16,700
110
Carbon Steel $16,700
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
19
Distillation Towers
T-101 Function Ethylene Recovery T-102 Ethanol Recycle T-103 -Butylene
Purity
Production CBM
3 Towers ChemCAD used to simulate tower design CAPCOST used to determine bare module unit costs CBM includes vessel, pump, partial condenser, and kettle reboiler
Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
Background
20
T-101 Optimization
T-101 Height (ft) Diameter (ft) Pressure (psig) Temperature (F) Number of Trays Feed Location Reflux Rate 34 1.8 5 Top: -128 Bottom: 61 6 3 325
Type of Trays
Material of Construction
Vary feed tray location to minimize condenser/reboiler duties Feed location of 3 out of 6 trays optimal
Background Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
21
T-102 Optimization
T-102 Height (ft) Diameter (ft) Pressure (psig) Temperature (F) Number of Trays Feed Location Reflux Rate Type of Trays Material of Construction 38 2 5 Top: 83 Bottom: 182 8 4 62 Carbon Steel Sieve Carbon Steel
Feed location of 4 out of 8 trays optimal Large reduction in duties can be seen in figure above
Background Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
22
T-103 Optimization
T-103 Height (ft) Diameter (ft) Pressure (psig) Temperature (F) Number of Trays Feed Location Reflux Rate Type of Trays Material of Construction 42 2.3 6.5 Top: 35 Bottom: 92 10 8 42 Carbon Steel Sieve Carbon Steel
Feed location of 8 out of 10 trays optimal Not middle tray for the -Butylene tower
Background Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
23
Duty (MMBtu/hr) Area (ft2) Temperature Pressure of Shell/Tube (psig) Number of passes MOC Shell/Tube
1-shell/2-tube Carbon Steel/Carbon Steel P-102 930 4.3 -128 Centrifugal 0.5 Stainless Steel 1 Separation Scheme
1-shell/2-tube Carbon Steel/Carbon Steel P-103 63 6.3 83 Centrifugal 0.7 Carbon Steel 1
Single Pass Carbon Steel/Carbon Steel P-104 32 6.5 35 Centrifugal 0.7 Carbon Steel 1
Pumps:
Flow (lbmol/h) Discharge Pressure (psig) Temperature (F) Driver Type Shaft Power (hp) Material of Construction Number of spares Reaction Scheme
Background
Economics
EHS
Sustainability
Conclusions
24
Design Decisions
Flash Tanks with interstage cooling Distillation tower use T-102 T-103 Partial Condenser Kettle Reboiler HEN Integration Side-product use
Reaction Scheme Separation Scheme
Background
Economics
EHS
Sustainability
Conclusions
25
ECONOMIC ANALYSIS
26
Financial Analysis
Quick Overview
Annual Cost of Ethanol: -$138 million Annual Revenue from Ethylene: $130 million
Bare Module Costs: -$5.6 million Annual Utility Costs: -$5.92 million
NPV: -200.58 million
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
27
Economic Feasibility
Production life of 15 years 2 years construction time 60% FCI Year 1, 40% FCI Year 2 Year 1 Start-up: 60% of full production capacity. 350 production days Land cost: $250,000 7-year Modified Accelerated Cost Recovery System (MACRS) Discount rate: 10% Tax rate of 40%
Background Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
28
Cost Estimations
Fixed Capital Investment ($9.53 million)
Grassroots basis Bare Module Costs
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
29
Towers
Flash Tank
Fired heater accounts for over 64% of total equipment costs & 66.7% of utility costs.
Background Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
30
Profitability Analysis
NPV: -200.58 million
Discounted Cumulative Cash Flow, Current Position
-
10
12
14
16
(50,000,000.00)
Project Value, $
(100,000,000.00)
(150,000,000.00)
(200,000,000.00)
(250,000,000.00)
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
31
Profitability Analysis
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
32
Price of the product can vary from -50% to 20% in a typical analysis
Background Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
33
Raw material availability and pricing can fluctuate from a dynamic range of -25% to 50%
Background Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
34
Net Present Value ($, millions) -55.62 -46.95 -38.28 -29.62 -20.95 -48.08 -39.41 -30.74 -22.08 -13.41 -40.54 -31.87 -23.21 -14.54 -5.87 -33.01 -24.34 -15.67 -7.00 1.67
0.280
-19.82
-12.28
-4.74
2.80
10.34
35
Ethylene ($/lb)
Current Market 0.61 Price Increase in Ethylene Price Decrease in Ethanol Price Increase in Ethylene and Decrease in Ethanol Prices 0.892
Ethanol ($/lb)
0.35 0.35
NPV
-200.58M +3.019M
Payback Period
N/A 2.9
0.61
0.237
+3.53M
2.8
0.710
0.280
+$2.84M
3.4
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
36
EH&S
37
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
38
R-101 P&ID
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
39
T-101 P&ID
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
40
Environmental Considerations
Environmental Compliance - EPA Regulation LDAR Leak Detection And Response MON Miscellaneous Organic chemical NESHAP HON Hazardous Organic chemical NESHAP NESHAP National Emission Standards for Hazardous Air Pollutants Waste facility auditing MSDS Reports Purging Storage
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
41
SUSTAINABILITY
42
Corporate Culture
Process Safety Management Plan Avenue for education and understanding of safety needs Comprehensive management and advisory board Emphasis on integrating safe technology and SOPs Monthly meetings to discuss various incidents and share ideas Safety awareness courses for all employees and administrators Preventative first-aid proficiency courses Industrial Recycling Growing global market for scrapping and industrial recycling Bureau of Industrial Recycling (BIR) Possible to attain a higher salvage value for equipment and side products
Background Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
43
Sustainability
Factors to Consider Long term feasibility of operating the plant Role of materials and products Economic, societal and environmental impacts Value proposition for the future Price Sensitivity Selling price of 1 lb ethylene vs purchase price of 1.84 lb ethanol Operate when ethanol price is low, ethylene price high Current prices are not favorable Fluctuations in upstream product prices
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
44
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
45
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
46
Economic Considerations
Economic Considerations NPV target prices: $0.283/lb ethanol and $0.695/lb ethylene Current prices: $0.35/lb ethanol and $0.61/lb ethylene Decreasing fossil fuel supply leading to increased cracking prices Growing market for alternative fuel sources and more efficient production methods Realistic to expect these prices in the future
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
47
Accessibility
Location Factors Transportation infrastructure and plant accessibility Necessary to be able to access site to build and operate Personnel movement and access to nearby amenities Cost of transportation of raw materials and products Regional bioethanol and ethylene
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
48
Societal Considerations
Societal Considerations Quality of workforce and access to research and development Employee benefits with competitive wages, good morale Accelerated job creation and downstream growth of local economy Improved quality of life with strong community culture
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
49
Environmental Considerations
Environmental Considerations Renewable green bioethanol feedstock Lower carbon emissions Not a finite resource Important to maintain reserves of natural resources Rising crude prices for cracking lead to higher ethylene prices since this is the most common choice of technology Governmental tax and infrastructure benefits
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
50
CONCLUSION
51
Final Recommendations
Profitability controlled by volatile fluctuations in ethanol and ethylene prices Self-production of ethylene vs outright purchase Advantages Downstream societal and environmental effects of design Disadvantages High utility and heating costs in addition to changing prices Short term recommendation Not to pursue Long term recommendation Assess market dynamics
Background Reaction Scheme Separation Scheme Economics EHS Sustainability Conclusions
52
APPENDIX SLIDES
53
Reaction Data
Reaction C2H5OHC2H4 + H2O 2 C2H5OH(C2H5)2O + H2O (C2H5)2O 2C2H4 + H2O C2H5OH C2H4O + H2 2C2H4 C4H8
Aj (mole atm-1 kgcat-1 -1 s ) 5.41 x 106 9.55 x 107 2.79 x 1010 2.78 x 108 1.45 x 107
kj k1 k2 k3 k4 k5
Rate Law r1 = k1P C2H5OH r2 = k2P 2 C2H5OH r3 = k3P (C2H5)2O r4 = k4P C2H5OH r5 = k5P2 C2H4
54
EH&S
Reactor HAZOP
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
55
EH&S
Tower T-101 HAZOP
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
56
Type Tube Pressure (psig) Tube Temperature Duty (MJ/hr) Fuel Type Material of Construction
Type Volume (ft3) Operating Temperature (F) Operating Pressure (psia) Pressure Drop (psi) Specifications
57
Type Duty (MMBtu/hr) Area (ft2) Temperature of Shell/Tube (F) LMTD End Points (F) Pressure of Shell/Tube (psig) Number of passes Material of Construction Shell/Tube
E-101 Floating Head 3.9 599 700/600 130.83 4.3/6.3 1-shell/2-tube Stainless Steel/Stainless Steel
E-102 Floating Head 25.2 1150 105/185 242.39 5/5 1-shell/2-tube Carbon Steel/Carbon Steel
E-103 Floating Head 12.4 3030 110/115 45.21 5/5 1-shell/2-tube Carbon Steel/Carbon Steel
E-104 Floating Head 1.8 224 87/80 89.78 5/5 1-shell/2-tube Stainless Steel/Stainless Steel
58
Height (ft) Diameter (ft) Orientation Pressure (psig) Temperature (F) Material of Construction
Height (ft) Diameter (ft) Pressure (psig) Temperature (F) Number of Trays Feed Location Reflux Rate Type of Trays Material of Construction
T-101 34 1.8 5 Top: -128 Bottom: 61 6 3 325 Stainless Steel Sieve Stainless Steel
T-103 42 2.3 6.5 Top: 35 Bottom: 92 10 8 42 Carbon Steel Sieve Carbon Steel
59
Type
Duty (MMBtu/hr ) Area (ft2) Temperatu re Pressure of Shell/Tube (psig) Number of passes Material of Constructi on Shell/Tube
0.45
1.8
0.04
190 83 4/4
113 35 5.3/5.3
118 61 6.3/6.3
180 92 6.3/6.3
Flow (lbmol/h) Discharge Pressure (psig) Temperature (F) Driver Type Shaft Power (hp) Material of Construction Number of spares
60
61
62
63
Appendix - CAPCOST
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
64
Background
Reaction Scheme
Separation Scheme
Economics
EHS
Sustainability
Conclusions
65