Professional Documents
Culture Documents
Thomas Bollen
University of Delaware
Department of Chemical Engineering
Academic year 2015 - 2016
Abstract
This Report explores and investigate the performance of the fictitious Chemical company
Starburst. This analysis focusses on environmental sustainability. Different production
sites will be compared using metrics as Energy Intensity, Off-spec recycle, FirstPassFirstQuality Yield, Ultimate yield, Energy Cost, Water Intensity, ODP and Key emissions.
Also, a recommendation for a renewable energy program is presented.
Contents
1 Introduction
2 General information
2.1 Corporates Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2 SOCMA and Employees . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
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10
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4 Emissions
4.1 Ozone Depletion Substances . . . .
4.1.1 Corporates Total . . . . . .
4.1.2 Conclusion corporates total
4.1.3 Plants . . . . . . . . . . . .
4.1.4 Conclusion plants . . . . . .
4.2 Key Emissions plants . . . . . . . .
4.2.1 Data . . . . . . . . . . . . .
4.2.2 Conclusion . . . . . . . . . .
4.3 Yellowing Products . . . . . . . . .
4.3.1 describing the problem . . .
4.3.2 Conclusion yellowing . . . .
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6 Summarising Recommendation
6.1 Corporate level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.2 Producing sites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6.3 Renewable energy program . . . . . . . . . . . . . . . . . . . . . . . . . . .
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5 Renewable Energy
5.1 Solar Energy . .
5.2 Wind Energy .
5.3 Hydropower . .
5.4 Conclusion . . .
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6.4
6.5
Other . . . . . .
6.4.1 Yellowing
6.4.2 Patents .
Final Conclusion
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35
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Appendices
38
A Data Project
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49
List of Figures
3.1
3.2
3.3
3.4
Metrics
Metrics
Metrics
Metrics
4.1
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
5.1
5.2
5.3
5.4
5.5
5.6
5.7
5.8
for
for
for
for
Sc vs. Np . . . . . . . . . . . . . . .
all plants, no subdivision between Sc
all plants producing Sc . . . . . . .
all plants producing Np . . . . . . .
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and Np
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45
46
E.1
E.2
E.3
E.4
49
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49
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PBT
PBT
PBT
PBT
Acetonitrile . . . . .
Acrylonitrile . . . . .
1,2-Dichlorobenzene
Ethanol . . . . . . .
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50
List of Tables
2.1
2.2
Corporate Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Sum of operating expenses, depreciation and taxes . . . . . . . . . . . . . .
7
8
3.1
3.2
11
14
4.1
4.2
4.3
CAS-Number Substances . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ODS emissions plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Key Emissions plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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5.1
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6.1
Ranking Plants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
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B.1
B.2
B.3
B.4
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Table
Table
Table
Table
of
of
of
of
Figure
Figure
Figure
Figure
3.1
3.2
3.3
3.4
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Chapter 1
Introduction
Starburst represents a fictitious chemical company, that will be analysed according to
all three requirements for sustainability. Those three requirements are Health, Safety &
and Environment (HSE). Starburst Chemicals produces two different products, Speciality
Chemicals referred to as Sc and Natural Product referred to as Np. These products
are made by batch processing steps. The first product is fabricated at five different plants
and two of these plants also produce Natural Products.
In the second chapter some general information about the corporates total performances,
SOCMA and employees is presented.
Subsequently, the production characteristics and performances of the five producing sites
are compared using metrics.
In Chapter 4, all possible emissions are analysed. Those contain Ozone depletions related
emissions, the Key emissions, and emissions related to the preventing of yellowing.
The next chapter gives a recommendation about starting a renewable energy program.
Finally, all chapters are summarised and a final conclusion is presented in Chapter 6.
In appendix A, the originally given date can be found. It is assumed that the data is
sufficiently accurate for regulatory reporting and strategic thinking.
Chapter 2
General information
2.1
Corporates Total
As can be seen, Natural Products are 30% of the companys total Volume. Total sales
have reached $100 million/yr. and are apparently growing at about 10-12%/yr. Profit,
described in the table as ATOI (after tax operating income), runs about 17%. This value
can be computed by subtracting operating expenses, depreciation and taxes from the gross
Revenue. The sum of these first three values is computed in Table 2.2.
2.2
average of $600K sales/employee, but well above the average for small SOCMA members of $400K/employee. Also, the average selling price/lb. and average margin are both
well above SOCMA averages. So there can be concluded Starburst is performing excellent
among the other SOCMA members.
The company has a history of good relations with its workers. The 200 employees include
about 10% leadership, business, marketing and staff and 14% engineering. Both groups
are seated at the Camden headquarters. The remaining employees are distributed across
the five sites based on the level of production at the various sites. Normal operations are
five days per week, with a reduced second shift and no third shift, at all sites. Periods of
higher than normal demand are met by working more on the second shift or on Saturday
and Sunday, all on overtime.
Chapter 3
Production characteristics of
different Plants
3.1
Metrics
Starburst contains five plant sites, all in the U.S. The first one is located in the east of
Camden, New Jersey. Two of the other sites are in the U.S. Southeast (Richmond, VA
and Birmingham, AL), and the other two are on the U.S. West Coast (Irvine, CA and
Portland, OR). Speciality Chemicals are manufactured at all five sites with roughly the
similar process. Natural Products manufactured only at the two sites in the Southeast
with a similar process as well.
These five sites will compared according to the following six criteria:
1) Energy intensity (KKBtu/lb)
= total energy / production
2) Off-spec recycle (%)
= off-spec re-work(ppy) / (production+off-spec re-work(ppy)+total waste)
3) FirstPasFirstQuality Yield (%)
= production / (production+off-spec re-work(ppy)+total waste)
4) Ultimate yield (%)
= production / (production+total waste)
10
These values can be evaluated using the data provided in Table 3.1.
equally. Doing this, the companies producing Natural Products would be unfairly disadvantaged. Therefore, the plants should be compared for both products separately. The
results for the plants producing Speciality Chemicals and Natural Products are to be found
respectively in Figure 3.3 and 3.4.
3.2
Conclusion
As mentioned earlier, basing the judgement on Figure 3.2 Richmond and Birmingham
would be sentenced worse than they perform. One should compare by using Figure 3.3
and 3.4. From this first figure, it is clear that Camden is performing very well. It beats all
the other plants in every aspect. Especially its Off-spec recycle, energy intensity and cost
score very high.
The four other plants accomplish a comparable value for FirstPassFirstQuality yield and
ultimate yield. For the four other criteria, they differ. The following ranking can be made:
Camden scores the best, followed by Richmond, Portland and Birmingham. Irvine scores
the worst. Note, this ranking is not absolute, for instance, Birmingham beats Portland in
off-spec recylce although it is ranked lower.
Studying Figure 3.4, there can be concluded that again Richmond performs better than
Birmingham.
Note, the criteria Energy Cost ($/lb) is influenced by the energy price ($/KKbtu) of each
state. This is calculated in Table 3.2 by dividing the energy Cost by Total energy.
Chapter 4
Emissions
Compliance is excellent at all sites. For the next five years, no permits will come up for
renewal. Programs to reduce emissions begun in the mid 1990s. There are some generalities among the sites. First of all, air emissions are fugitive, or exiting thermal oxidizers at
concentrations that are below the threshold for practical and economic recovery. Second,
water emissions are below the threshold for practical and economic recovery. Thirdly, air
and water emissions are within current state permit levels.
Sequentially, Ozone Depletion substances, Key emissions and yellowing products are discussed. Table 4.1 gives an overview off all CAS-Numbers of some substances used at
Starburst.
15
4.1
4.1.1
In 2000, Starburst started a program to reduce emissions of gasses with ozone depletion
potential. The company uses four substances with a notable ODP: CFC-11, Halon 1301,
methylbromide and CH2FBr. Using the data of the Corporates total, a stacked chart
in Figure 4.1 is plotted. All the substances are expressed in equivalent ODP CFC-11
(pounds/year). The converting values are:[2]
CFC-11 1.00
Halon 1301 10.00
Methylbromide 0.70
CH2BrF 0.73
As can be seen, Halon 1301 has a very high ODP compared to CFC-11. Methylbormide
and CH2BrF have a quite low ODP.
4.1.2
CFC-11 was commonly used as a reaction and extraction solvent in the early 1990s. Under
the pressure of the Montreal Protocol restrictions, alternatives have been steadily developed and the use of CFC-11 is successfully (strongly) decreased.
Methyl bromide is used in most Natural Products as a conditioner. However, this substance is toxic and therefore a number of those products have switched to CH2FBr. This
substance is a perfect substitute regarding to ozone depletion, because both ODP values
are more or less the same and are low.
Halon 1301 can be used as a coolant, but is in this company mostly used as a fire extinguishant. Because of his effectiveness, it is highly favored by the computer industry to
protect the new and expensive instrumentation of Starburst. However, Halon 1301 has a
high ODP value and the steadily growing use of this substance has a noteworthy impact
on the corporates total ODS (ozone depletion substances) emissions.
This makes that the Corporates total ODS emissions decrease until 2010 and start slightly
increasing after that. This increase is mostly due to the increment of Halon 1301.
Analysing GWP, there can be concluded that the reduction of ODS also beneficed emissions
of GWS (global warming substances). The decrease of GWS is mostly due to the decrease in
CFC-11, having the second highest GWP. Again, the use of Halon 1301 is not recommended
because of its very high GWP value.
Replacing methylbromide by CH2BrF is for GWP not favorable, GWP is +/-100 times
bigger. However, due to the still relatively seen (compared to CFC-11 and Halon 1301)
low GWP, this effect is negligible.
4.1.3
Plants
Now the performances regarding ODP of the plants individually will be discussed. All the
following charts will be based on the data in Table 4.2. The Tables used to plot these
charts are to be found in Appendix C.
Again, first the two products are compared to make a fair judgement. If both have a
distinguishable ODS emissions, the plants should be compared with only taking the same
product into account. In Figure 4.3, the mean pounds of CFC-11/year is expressed for a
Speciality Chemical and for a Natural Product. Also the ODS emissions for every entire
plant is plotted. As mentioned, the latter doesnt give a good perception to compare the
companies, however it is shown to give a general overview.
4.1.4
Conclusion plants
Again, Camden scores the best. Note that Richmond scores better than Birmingham for
producing speciality Chemicals but worse for Natural product. In this case, Figure 4.3 can
be used to look at the total ODS emissions. Examining this, there can be concluded that
Birmingham scores a bit better than Richmond.
So second place is for Birmingham, followed by Richmond, Portland and once more, Irvine
is the worst.
4.2
4.2.1
The key emissions are Acetonitrile, Acrylonitrile, 1,2-Dichlorobenzene, ethanol and Vinyl
Chloride. The PBT profile[3] of these components is to be found in Appendix E.
To evaluate the Key emissions of every plant, the data in Table 4.3 is used. In what follows,
the emissions for water and air are regarded separately. From a practical view, this seems
logic because both waste streams can be treated totally different.
4.2.2
Conclusion
Conclusions about the performances of the production sites keep showing the same trend.
The ranking of the key emissions to water and air for Speciality Chemicals from high to low
is: Camden, Richmond, Birmingham/Portland, Irvine. Birmingham and Portland share
the 3th place because one scores a bit better on water while the other one scores better on
air.
However, one alarming anomaly is COD exposure to water of Irvine. This value is extremely high.There should be an investigation if this is due to a measurement error and if
not, the production should be revised immediately.
4.3
Yellowing Products
4.3.1
A troubling phenomenon is the yellowing of the products. The steady growth and strong
earnings of Starburst would be better if the yellowing problem were fully eliminated. R&D
has found two additives that would greatly improve this problem. First, there is pentachlorobenzene, which totally prevents this yellowing, when added at very low levels
(+/-10ppm).
Second, R&D suggested monochlorobenzene that can be used at slightly higher levels (+/20ppm), also with excellent results. The monochlorobenzene process requires close control
and supervision to exclude oxygen and carefully control the temperature during a few key
times in the Starburst process. Also, this substance doesnt only make the process more
complex at Starburst, the customer experiences this as well. The preparation of the first
intermediate at the customers site requires oxygen exclusion and careful temperature control, albeit not as critical as the step at the Starburst site.
The extra supervision and control make the monochlorobenzene process slightly more expensive. However, this is not the only criteria. Toxicity is an other important one. Using
the EPA PBT profiler[3], the PBT profile of both substances can be found in Figure 4.9
and 4.10.
4.3.2
Conclusion yellowing
Chapter 5
Renewable Energy
Because of uncertainty of energy prices and supply, the possibility of a renewable energy
program for Starburst is investigated. sequentially, Solar energy, Wind energy and Hydro
power are discussed. To give a geographical overview, the five production sites are marked
on a map in Figure 5.1.
5.1
Solar Energy
To check whether the geographical location of a plant site is suited for solar energy, the
average annual DNI is pictured in Figure 5.2[8]. DNI stands for Direct Normal Irradiance.
This is the amount of solar radiation received per unit area by a surface that is always
held perpendicular (or normal) to the rays that come in a straight line from the direction
of the sun at its current position in the sky.[7]
26
5.2
Wind Energy
This problem is tackled in the same way as Solar Energy. On Figure 5.3[9], a map of
potential on-shore Wind capacity is displayed. This map is valid for a 2014 industry
standard wind turbine, installed on a 110-m tower. This represents plausible current
technology options.
Figure 5.3: Map of Potential on-shore wind capacity in the USA (sq.m)
From this figure it is clear that on-shore Wind Energy is absolute not suited for any of
the five plants sites. However, all plants (except for Birmingham) are located close to the
coast line. This implies off-shore wind capacity could be used. Figure 5.4[10] shows a wind
map with the estimates of the total offshore wind potential that would be possible from
developing the available offshore areas for a height of 90 meter.
5.3
Hydropower
Hydropower can be generated by several means. Here, generating energy from waves, tidal
streams, ocean currents and river currents is considered. Table 5.1[11] gives an overview
of the estimated annual energy generated by this four techniques in (Twh/year).
From the table it is clear the using waves (from the ocean) would generate the most energy.
To check the capacities of the water streams/oceans around the companies sites, several
sources are consulted. Figure 5.5[12], 5.6[13], 5.7[14] and 5.8[15] show a map of energy production potential for respectively waves, tidal streams, ocean currents and river currents.
Figure 5.5: Waves energy production potential, expressed in Wave Power Density (kW/m)
Figure 5.6: Tidal Stream energy production potential, expressed in Power Density (W/m2 )
Figure 5.7: Ocean currents energy production potential, expressed in Mean current speed
(m/s)
Figure 5.8: River currents energy production potential, expressed in Power Density (gigawatt hours/year)
Using the given legend, all four techniques score relatively seen poorly. For Figure 5.5, the
Wave power Density goes from +/-10 until 35 Kw/m for the locations close to the plant
sites. For Figure 5.6, the Power density is lower than 50 W/m2 , Figure 5.7 has mostly a
mean current speed smaller than 0.5 m/s, and Figure 5.8 Power density is less than +/-13
gigawatt hours/year
5.4
Conclusion
First of all, Hydropower doesnt seem to be a cost effective energy source. The problem
for Wind energy is that it isnt very reliable. There is absolutely no guarantee of energy
production when energy consumption is peeking. Therefore, energy storage is required.
This could be done by batteries or water towers. However, this makes the wind energy
program too expensive.
Solar Energy generates electricity only during day time. Because Starburst produces in
batch during day time, and not on a continuous base, energy consumption decreases a lot
during night times. So the energy generation of the Solar Panels follows more or less the
trend of energy consumption. This means no energy storage is required, which is a great
benefice of the solar energy program. Shortcomings during non-sunny and winter days can
be countered by buying energy when required.
This means the final recommendation would be to investigate the solar energy program at
the sites of Irvine and Birmingham further in detail. In addition, remember energy price is
the highest in California (see Table 3.2). This only increase the benefit of having renewable
energy at Irvine.
Chapter 6
Summarising Recommendation
In what follows, a general summarizing recommendation for the next five years of Starburst
is made. The main focus will be on environmental sustainability. This will be done
using all three requirements for sustainability: Health, Safety & and Environment. The
recommendation is subdivided on four different areas: Corporate level, the five producing
sites, renewable energy program, and other. This chapter ends with a final conclusion.
6.1
Corporate level
Sales growth rates of Natural products are growing faster than Speciality Chemicals, plus
the ATOI is 5% higher. This makes this product more attractive than Speciality Chemicals. Starburst should try to focus on increasing the relative volume, which is 30% at
the moment. However, this can become risky for the company because Natural products
are highly dependent of the imported raw materials (> 75%). Therefore there must be
searched for possibilities of decreasing the percentage of imported raw materials.
Also, for all products, raw materials are moderately expensive per pound. Programs for
the internal re-work of off-spec material to re-make first quality product are highly recommended.
Although international sales have a higher profit than the companys average, it is only
10% of total sales. More promotion of Starbust products should be made abroad to keep
the international sales growing.
Energy cost is 5.6% of total sales, and is a rapidly growing cost component. This means
fluctuating energy prices influence a considerably part of profit. Making efforts to lower
energy intensity or using renewable energy sources owned by the company can help making
the profits less fluctuating. Also, smoothing the fluctuating energy consumption during
the cycle of a batch is encouraged.
All data indicate constantly growing sales, at the moment they are estimated at 10-12% a
33
year. Because of this, the company should consider cancelling the reduction on the second
shift and reintroducing a third working shift in the future. This measure is needed to avoid
an excessive amount of employees working on overtime.
6.2
Producing sites
In Table 6.1, the obtained rankings of Production Characteristics, Ozone emissions and
Key emissions are summarized.
6.3
The renewable energy program should focus on solar energy. This technology gives the
least problems regarding energy storage. The plant that qualifies the best for this program
is Irvine. This geographical area has the highest average annual DNI and has the highest
energy price.
6.4
6.4.1
Other
Yellowing
Using pentachlorobenzene may be financially seen the best, nevertheless it is too toxic from
a safety point of view. Therefore it is recommended to use monochlorobenzene.
6.4.2
Patents
Starbust has very few process or product patents. This is risky and the company should
think about going for patents to lower those risks.
6.5
Final Conclusion
Starburst is performing very well. Both Financially and Sustainability seen, Starburst is
a strong player in the market. However, this doesnt mean the company can fall asleep. It
should try to constantly improve products and production processes. Numerous targets,
many stated in this report, will make Starburst an even more dominant firm.
Bibliography
[1] Wikipedia, (03/12/2015). SOCMA
https://en.wikipedia.org/wiki/Society of Chemical Manufacturers and Affiliates
[2] U.S. Environmental Protection Agency, (03/12/2015). Class I Ozone-depleting Substances
http://www3.epa.gov/ozone/science/ods/classone.html
[3] EPA, (03/12/2015). PBTprofiler
http://www.pbtprofiler.net/notice.asp
[4] SIRI, (03/12/2015). msds
http://hazard.com/msds/
[5] msds, (03/12/2015). pentachlorobenzeen
http://www.unece.org/fileadmin/DAM/env/lrtap/TaskForce/popsxg/20002003/pentachloorbenzeen.pdf
[6] GWP, (03/12/2015). CH2BrF
http://www.ghgprotocol.org/files/ghgp/tools/Global-Warming-Potential-Values.pdf
[7] 3tier, (03/12/2015). DNI
http://www.3tier.com/en/support/solar-prospecting-tools/what-direct-normalirradiance-solar-prospecting/
[8] maps, (03/12/2015). solar capacity
http://maps.nrel.gov/prospector
[9] U.S. department of energy, (03/12/2015). windsmap
http://apps2.eere.energy.gov/wind/windexchange/windmaps/resource potential.asp
[10] U.S. department of energy, (03/12/2015). windsmap
http://apps2.eere.energy.gov/wind/windexchange/windmaps/offshore.asp
[11] energy.gov, (03/12/2015). hydropower
http://energy.gov/eere/water/marine-and-hydrokinetic-resource-assessment-andcharacterization
36
Appendices
38
Appendix A
Data Project
39
Appendix B
Tables for Metric Charts
41
Appendix C
Tables for ODP Charts
44
Appendix D
Tables for Key Emission Charts
46
Appendix E
PBT Key Emissions
49