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Cost Estimation

Chemical Engineering DPS-A



  
   
  

 Gases

 Reactor Products
 Liquid
Organics

 Water
 Steam
  
 EB
Topping Ethyl Benzene Styrene
Column Column Column
 
  


Calculate Net annual Profit = ?

1- Capital cost
Equipment and Machinery
Contingency cost
Building cost (20 acres of farmland)
Depreciation (10% of capital)
Maintenance (15% of capital)

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Estimating size of machinery

Find out the dimensions of Reactor, Gravity separator

and Distillation column

Determine the densities of streams and calculate the

volume and height of the equipments (assume the
diameter). Use r2h
 
  

2- Operating Cost
Streams Cost
Find out the Prices of streams (feed, products and by products)
give you the material values
How much EB can be recycled.
Net new EB requirement is ?

Energy Cost
Furnace heating cost per hour (assume). Calculate the recycled
gases provide, worth of heating ?
Calculate the annual heating cost

Labour Cost
Assume the number of staff and wages
 
   
Omounts lost as gas from organic separator

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!|" !#$" %  % 

Styrene 4266
Ethyl 4563
Benzene
Hydrogen 286
Methane 890
Ethane 1559
Benzene 3267
Toluene 3909

 
Ossume 3.6 MJ = 1kWhr
Ossume 1kWhr = £ 0.08
 
  

Calculate Gross Annual Profit (GAP)

Net annual profit = GAP ʹ (Energy cost +labour

cost + Depreciation +
Maintenance cost)

= ~ 4 to 5 million pound

Olso calculate the Capital investment includes Equipment, land and building cost