"Chemical Plant Financial Analysis Spreadsheet"

brought to you by The Chemical Engineers' Resource Page at:

http://www.cheresources.com/

To help you optimize your chemical process, use this spreadsheet to calculate the Net Present Value of your various
plant configurations. Simply click into each sheet and complete the cells that are:
Yellow
You'll find advice along the way in that some values that you may not be sure of are already set.
I've included the utility costs the algorithms that appear in the following two references:
1. "Analysis, Synthesis, and Design of Chemical Processes", Turton, Richard, et al, Prentice Hall, 1998
2. "A Guide to Chemical Engineering Process Design and Economics", Ulrich, G.D., Wiley, 1984
Be sure to note the economic assumptions made on the "Summary Page". If you're looking for a true economic
value, these values (along with the utility costs) will have to be updated for your current region or situation.
If you are simply evaluating different processes or optimizing, as long as the same values are used for each, this
spreadsheet will function quite nicely, although the true Net Present Value may not be accurate.
Finally, all dollar amounts are reported in US dollars.

Fixed Capital Investment

Equipment
Name
Installed Cost
C-301 A/B
R-301 (F)
P-301 A/B
P-302 A/B
P-303 A/B
P-304 A/B
E-301
E-302
E-303
E-304
E-305
FIC's
LIC's
V-301
T-301
T-302
T-303
X-301

$993,028
$7,515,317
$95,624
$136,988
$37,576
$32,120
$302,252
$277,250
$2,756,200
$9,220,222
$21,419
$4,800
$4,000
$129,576
$2,819,369
$638,051
$2,581,764
$0

Name

Installed Cost

List your equipment by na

enter the Fixed Capital Inv
will take into account the a
building the plant.

There is a large difference

the installed cost of a piec
the purchased cost, you ca
factor as shown below:

4.74 for Fluid Processing P

3.63 for Solid-Fluid Proces
3.10 for Solid Processing P

Total
$27,565,556
Fixed Capital Investment
Multiplier=
1.5 (Default is 1.5)
FCI
$41,348,334

List your equipment by name and installed cost. Then

enter the Fixed Capital Investment Multiplier. This multiplier
will take into account the additional cost associated with
building the plant.
There is a large difference between purchased cost and
the installed cost of a piece of equipment. If you only know
the purchased cost, you can multiply this cost by a "Lang"
factor as shown below:
4.74 for Fluid Processing Plants
3.63 for Solid-Fluid Processing Plants
3.10 for Solid Processing Plants

Operating Labor
Scroll Down

Equipment
Name

Installed Cost

C-301 A/B
R-301 (F)
P-301 A/B
P-302 A/B
P-303 A/B
P-304 A/B
E-301
E-302
E-303
E-304
E-305
FIC's
LIC's
V-301
T-301
T-302
T-303
X-301
0
0
0
0
0

Name

$993,028
$7,515,317
$95,624
$136,988
$37,576
$32,120
$302,252
$277,250
$2,756,200
$9,220,222
$21,419
$4,800
$4,000
$129,576
$2,819,369
$638,051
$2,581,764
$0
$0
$0
$0
$0
$0

Installed Cost
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Enter the expected annual salaries of operators in the plant

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

$46,000 US

Now based on the equipment list that you have above, enter the total number of each type of unit in the space below.
You may not have auxiliary equipment in your list, but you should enter the number of pieces below.
For example, if you have 6 heat exchangers in your equipment list, you should enter "6" under "heat exchangers".
Also, if you have heat exchangers with cooling water in them, you'll probably have at least one cooling tower as well.
Equipment
Auxiliary Facilities
Air Plants
Boilers
Chimneys and Stacks
Cooling Towers
Water Demineralizers
Electric Generation Plants
Portable Generation Plants
Electric Substations
Incinerators
Mechanical Refrigeration Units
Waste Water Treatment Plants

# of units Operators per shift

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Total Number of Operators Need

Annual Cost of Operating Labor

Water Treatment Plants

Process Equipment
Evaporators
Vaporizers
Furnaces
Fans
Blowers and Compressors
Heat Exchangers
Towers
Vessels
Pumps
Reactors

0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00

Equipment
Auxiliary Facilities
Air Plants
Boilers
Chimneys and Stacks
Cooling Towers
Water Demineralizers
Electric Generation Plants
Portable Generation Plants
Electric Substations
Incinerators
Mechanical Refrigeration Units
Waste Water Treatment Plants
Water Treatment Plants
Process Equipment
Evaporators
Vaporizers
Furnaces
Fans
Blowers and Compressors
Heat Exchangers
Towers
Vessels
Pumps
Reactors

Operators per Shift

1.0
1.0
0.0
1.0
0.5
0.5
3.0
0.0
2.0
0.5
2.0
2.0
0.30
0.05
0.50
0.05
0.15
0.10
0.35
0.00
0.00
0.50

ype of unit in the space below.

pieces below.
6" under "heat exchangers".
east one cooling tower as well.

Total Number of Operators Needed

Annual Cost of Operating Labor (Col)

0
$0

Utilities

Scroll Right

Utility costs vary widely from region to region, you can change these values as you see fit
Utility
Air Supply

Steam from Boilers

Cooling Tower Water

Other Water

Electrical Substation
Fuels

Refrigeration

Thermal Oil Systems

Waste Disposal
Waste Water Treatment

Description
Pressurized and Dried
a. Process
b. Instrument
Process Steam: Latent Heat
a. Low Pressure (5 barg, 160 0C)
b. Medium Pressure (10 barg, 184 0C)
c. High Pressure (41 barg, 254 0C)
Process Cooling Water
30 0C to 40-45 0C
High purity water for
a. Process Use
b. Boiler Feed Water
c. Potable (drinking)
d. Deionized Water
Electric Distribution
110V, 220V, 440V
a. Fuel Oil (no. 2)
b. Natural Gas
c. Coal (FOB mine mouth)
a. Moderately Low Temp: 5 0C
b. Low Temp: -20 0C
c. Very Low Temp: -50 0C
a. Moderately High Temp: to 330 0C
b. High Temp: to 400 0C
c. Very High Temp: to 600 0C
a. Non-Hazardous
b. Hazardous
a. Primary
(filtration)
b. Secondary
(filtration + activated sludge)
c. Tertiary
(filtration, activated sludge, chem proc)

Cost $/GJ

Cost $/common unit

$2.30
$4.70

$3.17
$3.66
$5.09

$6.62
$7.31
$8.65
$6.70
$0.04
$2.54
$0.26
$1.00

$16.80
$4.00
$2.50
$1.20
$20.00
$32.00
$60.00
$4.90
$5.20
$5.90

$0.06
$170.00
$0.09
$31.00
Process cooling duty
Process cooling duty
Process cooling duty
Process heating duty
Process heating duty
Process heating duty
$36.00
$145.00
$39.00
$41.00
$53.00

Scroll Down

Equipment (enter a description)

Name
Utility Type
per 100 m3
per 100 m3
per 1000 kg
per 1000 kg
per 1000 kg
per 1000 m3
per 1000 kg
per 1000 kg
per 1000 kg
per 1000 kg

**This can also be used as condensate

return credit amount

per kWh
per m3
per std m3
**Based on lower heating value
per metric tonne

per metric tonne

per metric tonne
per 1000 m3
per 1000 m3
per 1000 m3

C-301 A/B
R-301 (F)
P-301 A/B
P-302 A/B
P-303 A/B
P-304 A/B
E-301
E-302
E-303
E-304
E-305
FIC's
LIC's
V-301
T-301
T-302
T-303
X-301
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0

Utility Cost Not Associated with Equipmen

Description

(Calc from Table at Left)

Annual Utility Cost

As an example, let's say that your reactor needs to be
mainted at 350 0C by a Therminol or Dowtherm loop within
the plant. The heating duty turns out to be about 75,000 GJ
per year. Your utility calculation for the reactor would be:
(75,000 GJ/year) x ($5.2/GJ) = $390,000 per year
The $5.2/GJ is from the utility table under thermal systems

Total Utility Cost per Year (Cut)

$0.00

iated with Equipment

Utility Cost

Raw Materials and Profits

Enter any raw material costs. Remember that sometimes, utilities can be used as raw materials.
Some processes may utilize low pressure steam as a reactor feed for example.

Raw Material
LPS
Propylene
De. Water

Annual Cost
$945,000.00
$18,344,000.00
$20,304.00

Total Annual Raw Material Cost (Crm) =

Enter any profits. These should consists of your main, salable reaction products as well as any generated utilities
that can be sold. Low pressure steam, for example, can be generated in heat exchangers and sold to other facilities.
Or condensed steam can be credited as boiler feed water at times

Profit Material
Acrylic Acid
Acetic Acid
Boiler Feed Water

Annual Profit
$96,053,000.00
$24,345,000.00
$6,235,000.00

Total Annual Profits =

aw materials.

$19,309,304.00

s well as any generated utilities

ngers and sold to other facilities.

nual Profits =

$126,633,000.00

Table A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop included

Total Installed Cost:

Operating Labor

$27,565,556

FCI

Col =

$0

Cut=

$0

$41,348,334

Utilities
Raw Materials
Crm=

$19,309,304

The following assumptions are made in the cash sheet

shown below:
1. Two years for construction of plant
2. Five year depreciation schedule
3. 10 year plant operating life
4. Cost of constructing the plant is spread over two years
5. Taxation rate is defaulted to 40%, but can be changed
below
6. The discounted cash flow rate is set at 8%, but can be
changed below
7. Optimization function used is "Net Present Value"

Profit from Products

Annual Revenue=

$126,633,000

Financial Outlook
COM=
Year
0
1
2
3
4
5
6
7
8
9
10
11

$31,193,144.04 (without depreciation)

**assume 15% of FCI as salvage value**
Depreciation
FCI-deprec.
Revenue
COM
Cash Flow
Discount Cash
$41,348,334
($20,674,167)
($20,674,167)
$41,348,334
($20,674,167)
($19,142,747)
$8,269,667
$33,078,667
$126,633,000 $31,193,144
$60,571,780
$51,930,539
$10,585,174
$22,493,494
$126,633,000 $31,193,144
$61,497,983
$48,819,082
$4,318,751
$18,174,743
$126,633,000 $31,193,144
$58,991,414
$43,360,450
$3,489,551
$14,685,192
$126,633,000 $31,193,144
$58,659,734
$39,922,829
$1,409,778
$13,275,414
$126,633,000 $31,193,144
$57,827,825
$36,441,339
$13,275,414
$126,633,000 $31,193,144
$57,263,914
$33,412,944
$13,275,414
$126,633,000 $31,193,144
$57,263,914
$30,937,911
$13,275,414
$126,633,000 $31,193,144
$57,263,914
$28,646,214
$13,275,414
$126,633,000 $31,193,144
$57,263,914
$26,524,272
$13,275,414
$126,633,000 $31,193,144
$63,466,164
$27,219,550

Taxation rate= 0.4

Discount rate=

0.08

Cumulative
Discounted
($20,674,167)
($39,816,914)
$12,113,624
$60,932,706
$104,293,156
$144,215,986
$180,657,324
$214,070,268
$245,008,179
$273,654,392
$300,178,664
$327,398,214

Table A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop included

NPV= $327,398,214
(Net Present Value)

Table A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop included

sheet

wo years
hanged
can be

ue"

Table A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop included