SKF4153 PLANTDESIGN CAPITALCOSTESTIMATION

Dr.M.Fadhil A.Wahab Dr.MuhammadAbbas AhmadZaini

CostIndexes
9 Equipmentcostisobtainedfromcharts,equationsorquotesfrom vendors,andonlyvalidforacertainperiodoftime. 9 Thecostchanges(increases)fromyeartoyearprimarilydueto inflation. 9 ToestimatepurchaseCost,CP atalaterdate, 9 TheChemicalEngineering(CE)PlantCostIndex,TheMarshall&Swift (MS)EquipmentCostIndex,TheNelsonFarrar(NF)Refinery ConstructionCostIndex,TheEngineeringNewsRecord(ENR) ConstructionCostIndex.

I Cost = Base Cost I base

TotalCapitalInvestment(TCI)
9 Onetimeexpensefordesign,constructionandstartupfornew orarevampofanexistingplant. 9 Grassrootsplantsvs.Plantexpansions. 9 ComponentsofTCI: CTBM:TotalBareModuleCost CDPI:DirectPermanentInvestment CTDC:TotalDepreciableCapital CTPI:TotalPermanentInvestment CW:WorkingCapitalInvestment

EstimationofTCI
Methods(Levelsofaccuracy), Orderofmagnitudeestimate( 50%) basedonproductionrateand majorequipmentsasdeterminefrombenchscalelaboratorydata. Studyestimate( 35%) basedonapreliminaryprocessdesign. Preliminaryestimate( 20%) basedondetailedprocessdesign studiesleadingtoanoptimizedprocessdesign. Definitiveestimate basedonadetailedplantdesign,including detaileddrawingsandcostestimates,sufficienttoapplycost accounting.

METHOD1:OrderofMagnitudeEstimate
Toknowwhetheraprocessisworthpursuingornot? Suitableforlowpressureprocess(<100psi) Needproductionrateandflowsheetshowingmajorequipment Calculationarebasedon: Abaseproductionrateof10,000,000lb/yrofmainproduct BasedonMarshallandSwiftIndex(IMS) Carbonsteelconstruction Designpressure<100psi

Step1ofMETHOD1
UsingsixtenthsrulecomputeproductionratefactorFPR:
Capacity 2 F = PR Capacity b m Main product flowrate, lb / yr = 10, 000, 000 0.6

Step2ofMETHOD1
CalculateindividualmodulecostCMforcompressors,blowers, separators(distillation,absorber,etc.),reactor,butnotfor pump,flash,refluxdrumandheatexchanger.

0.25 > design pressure psia if psia , , 100 $160000 = FPR FM 100

FMismaterialfactor;Carbonsteel(FM=1.0),Copper(FM=1.2),Stainlesssteel (FM=2.0),NickelAlloy(FM=2.5),Titaniumclad(FM=3.0).

Step3ofMETHOD1
CalculatetotalbaremoduleinvestmentCTBMforcurrentyear,
CTBM I MS = FPI I MS ,base C M

FPIisfactortoaccountforpiping,instrumentation,automaticcontrolaswell asindirectcosts.Forsolidhandling(FPI=1.85),solid&fluids(FPI=2.0)andfor fluidshandling(FPI=2.15).

Step4ofMETHOD1
CalculatedirectpermanentinvestmentCDPI

C DPI = (1 + F1 + F2 )CTBM
F1 andF2 arefactorstoaccountsitepreparation,servicefacilities,utility plants.Foroutdoorconstruction(F1=0.15),Indoor&outdoor(F1=0.4)and indooronly(F1=0.8).Forminoradditiontoexistingfacilities(F2=0.10),major additiontoexistingfacilities(F2=0.3)andforgrassrootsplant(F2=0.8).

Step5ofMETHOD1
CalculatetotalpermanentinvestmentCTPI Add40%tocoverforcontingenciesandanother10%forland, royaltiesandstartup(totalof50%,thusmultiplyby1.5).

CTPI = 1.5C DPI

CalculatetotalcapitalinvestmentCTCI Add15%tothetotalpermanentinvestmentCTPI

C = 1 . 15 C TCI TPI

METHOD2:StudyEstimate
HerethemethodisbasedonoverallfactormethodofLang (1947,1948). ReferTable22.16forLangfactorsofTPIandCPI,fL,TPI andfL,TCI, respectively. Purchasecost,CP foraparticularbaseyear(Ib,i) shouldalready beknown. Thepurchasecostofequipmentwasbasedonyear1977,and thecorrespondingMSindexforthatyearis514.

SummaryofstepsinMethod2
Prepareanequipmentlistincludingtheirpurchasecostfora particularbaseyear. Updatetothecurrentcostindex(II)andsumtheupdated purchasecost. Multiplyby1.05toaccountfordeliverycosttotheplantsite.

C C

TPI

= 1.05 f = 1.05 f

L , TPI

I I
i i

b, i

C C

P, i

TCI

L , TCI

I I

P, i

b, i

METHOD3:PreliminaryEstimate
9 BasedonIndividualFactorsMethodofGuthrie (1969,1974). 9 Bestcarriedoutafter; Optimalprocessdesign, CompleteM&Ebalances,Equipmentsizinganddecisionon materialsofconstruction, ProcesscontrolconfigurationdevelopedasinP&ID.

Steps1&2ofMETHOD3
Prepareanequipmentlistincludingtheirpurchasecostfora particularbaseyear. Updatetothecurrentcostindex(I). Thepurchasecostisbasedonnearambientdesignpressure, carbonsteelmaterialandabasedesign.

Step3ofMETHOD3
Foreachpieceofequipment,determinebaremodulecost

(CBM)usingbaremodulefactors(FBM)andapplyappropriate factorsfordesign(Fd),pressure(FP)andmaterial(Fm).

I C = C [F + (F F F 1)] I
BM P, b BM d P M b

Steps4&5ofMETHOD3
ObtainedthetotalbaremodulecostCTBM.

C
startupandroyalties)

TBM

= C

BM

CalculatetotalpermanentinvestmentCTPI,(note:notincluding

TPI

= 1.18(C

TBM

+C +C
site

building

+C

offsite facilities

AddworkingcapitaltocalculatetotalcapitalinvestmentCTCI

TCI

=C +C
TPI

WC

PurchaseCost,Cp
Table22.19givessourcesofwidelyusedequipmentcostdataand thecorrespondingbasecostindex. Usuallypresentedintheformofgraphsand/orequations. CouldbegeneratedusingAspenIcarus ProcessEvaluator(Aspen IPE). AspenIPE:moreaccurate,consistentandperiodicallyupdated.

Cp ofCentrifugalPump
9 Determinesizefactor,S=Q(H)0.5 9 QisflowrateingpmandHisthepumpheadinft 9 Calculatebasef.o.b.purchasecost,

CB=exp{9.71710.6019[ln(S)]+0.0519[ln(S)]2}
9 Purchasecost(CB hasalreadytakenintoaccount)ofasingle stage,3600rpm,verticalsplitcase(VSC),andmadeofcast ironcentrifugalpumpforSbetween400and100000canbe estimatedfromFigure22.3.

9 Forotherspecifications,purchasecostofcentrifugalpump,

C p = F T F MC B
9 FM ismaterialfactor fromTable22.21. 9 FT ispumptypefactor fromTable22.20. 9 Thispricedoesnotincludeelectricmotor.

Cp ofShell&TubeHEX
9 Basef.o.b.purchasecostdataofHEXarecorrelatedintermsof surfacearea. 9 Fig.22.10isonlyvalidforcarbonsteeltubes, in.or1in.OD,wall thicknessoftubeis16BWG(BirminghamWireGage),20ftlong, squareortriangularpitch,carbonsteelwithshellsidepressureup to100psig,andsurfaceareabetween150to12000ft2. 9 Forotherspecifications,useEquation22.43,andCB ofparticular designfromEquations22.3922.42.

9 Equation22.43;

Cp=FPFMFLCB
9 FL istubelengthcorrectionfactor (seepage571) 9 FM ismaterialfactor (Equation22.44andTable22.25) 9 FP ispressurefactor (Equation22.45),Pinpsig. 9 Readalso onpurchasecostsfordoublepipeHEXandfired heater.

Cp ofPressurevesselandTowers
Sizefactor=Weight(lb) Forotherspecifications,useEquation22.52.

Cp=FMCV+CPL
Obtaincostofemptyvessels,CV;inEquations22.53 (horizontal),22.54(vertical)and22.57(towers). Additionalcostforplatformandladder,CPL;inEquations22.55 (Horizontal),22.56(Vertical)and22.58(towers). Useappropriateunitsfortheequations ValuesofFM aregiveninTable22.26.

W=(Di+tS)(L+0.8Di)tS
isdensityofcarbonsteel. tS isthicknessofshellandellipticalheads. 9 Athighinternalpressure(operatingpressure);use Equation22.60,wheretS =tP. 9 Minimumwallthicknessatlowpressuresaregivenat page575. Effectofwindandearthquakeonaverticalvessel/tower,use Equations22.60and22.62.tS =tV =tP+tW Atlowinternalpressure(vacuum),useEquations22.6322.65. tS =tV =tE+tEC.

Cp ofTrayandPackedTower
Addcostofinstalledtrays(inclusivealldowncomers),CT tocostof vessel.

Cp=FMCV+CPL+CT CT=NTFNTFTTFTMCBT
Basecost,CBT(CE394,year2000)isgivenbyEquation22.67. NT istraynumber,FNT isgivenbyEquation22.68,FTT istraytype factor,FTM istraymaterialfactor,seepage577. ForPackedcolumn,selflearnfrompage578.

References G.D.Ulrich,ProcessPlantDesignandEconomics,JohnWiley,1984. L.T.Biegler,I.E.Grossman,A.W.Westerberg,SystematicMethodsof ChemicalProcessDesign,PrenticeHall,1997. Monograph,ProcessDesignandSynthesis,Universiti Teknologi Malaysia, 2006/07 W.D.Seider,J.D.Seider,D.R.Lewin,ProductandProcessDesign Principles:Synthesis,AnalysisandEvaluation,JohnWileyandSons,Inc., 2010.