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Crimson Consulting

Crimson Consulting. Cyclohexane Production Facility Analysis and Design. Crimson Consulting “Service Worth Waiting For”. Dynamic five-person team of Chemical Engineers Provider of quality engineering consulting services for companies in Oklahoma and the surrounding states

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Crimson Consulting

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  1. Crimson Consulting Cyclohexane Production Facility Analysis and Design

  2. Crimson Consulting“Service Worth Waiting For” • Dynamic five-person team of Chemical Engineers • Provider of quality engineering consulting services for companies in Oklahoma and the surrounding states • Visit our company website for information on company members and projects

  3. Independent Refineries, Inc. Cyclohexane Production Facility Overall Design and Analysis

  4. Independent Refineries, Inc. • Hydrogenation of benzene to form cyclohexane for industrial use • 20-year project life • Design new facility from ground-up • Our company was contracted for process design and economic analysis of project

  5. Process Flow Diagram

  6. Initial Economic Analysis • Initial Estimation of Total Capital Investment (TCI) • Determination of Annual Product Cost • Determination Annual Cash Flow • Profitability Analyses

  7. Estimation of Delivered Equipment Cost • Analyses based on percent of delivered equipment costs (Peters, Timmerhaus, and West) • Equipment sizing determined from provided process simulation reports • Cost estimated based on existing equipment cost estimates as functions of size • Assumed 10% error from reading charts

  8. Estimation of TCI • Estimation based on percentage of delivered equipment as outlined in PT&W • Assumed 20% error from inherent error in equipment pricing and estimated percentages • Fixed Capital Investment (FCI) of $1.6 million • Total Capital Investment of $1.8 million

  9. Annual Product Cost and Cash Flow • Annual product cost calculated as the sum of all costs of production; raw materials, utilities, depreciation (straight-line), etc. • Income from sales calculated based on production data and product prices • Cash flow defined as sales income minus annual product cost

  10. Profitability Analyses • Process found to have a return on investment (ROI) of -256%, significantly less than the 10% ROI required by IRI • Net Present worth for 2005 is -$370 million • Strauss Plots, Monte Carlo simulations, and propagation of error methods used for further profitability analyses • 10% maximum probability of profitability

  11. Pipe Network Design • Network specifications provided by IRI • Stainless steel construction • 2 in. fiberglass insulation • $822,000 installed piping, $197,000 additional annual production cost • New plant FCI: $2,182,000 • Additional product cost had less than 1% increase from previous estimates

  12. Further Pipe Network Design • Pressure drop analyses indicate that no additional pumps are needed in network • All pipes are within bursting limitations • Further size optimization calculations performed with given process data • Installation cost of optimized network: $87,400 • FCI with optimized network: $1,450,000

  13. Cyclohexane Production Facility Further Design and Analysis of Process Segments

  14. Segment #1

  15. Segment #1 Analysis • Stainless steel construction • 60 horsepower gear pump required to provide necessary pump work • Piping cost for segment of interest (includes stainless steel piping and valves): $4,250 • FCI estimated from cost of installed equipment: $54,000

  16. Segment #1 Analysis • As designed, system cannot provide required Available Net Positive Suction Head (NPSHA) greater than 2 m • Compressor must be installed before pump to provide necessary NPSHA • Compressor must provide approximately 4 lbf/s

  17. Segment #2

  18. Segment #2 Analysis • Heat exchanger design optimized in Pro/II simulations • Stainless steel construction • Tube diameter: 0.7 in. Shell diameter: 8 in. • Exchanger Heat Transfer Areas: E1: 272 ft2 E2: 240 ft2 E3: 360 ft2

  19. Network Installation Cost • Exchangers priced based on material and heat transfer area • Delivered equipment cost: $26,000 • FCI determined as percentage of delivered equipment cost • FCI: $105,000

  20. Distillation Column Design • Column designed in Pro/II simulation based on provided process data • Stainless steel construction • Height determined from number of trays • Diameter determined by calculation of vapor velocity and assumed downcomer area • Column specifications: height: 66 ft. diameter: 8 ft.

  21. Conclusions and Recommendations • At this time, current economic conditions are not favorable for this process • At current benzene prices, cyclohexane price must increase to $3.04/gal for process to be profitable • Crimson Consulting does not recommend construction of this facility at this time

  22. ? ? ? Questions? ? ? ? ?

  23. References and Credits • Peters, Max S., Klaus D Timmerhaus, and Ronald E. West. Plant Design and Economics for Chemical Engineers, 5th ed. New York: McGraw-Hill Companies, Inc., 2003. • Welty, James R., Charles E. Wicks, Robert E. Wilson, and Gregory Rorrer. Fundamentals of Momentum, Mass, and Heat Transfer, 4th ed. New York: John Wiley & Sons, Inc., 2001. • Crimson Consulting Staff: Sarah Katen, Group Manager Josef Dalaeli Nell Keith Kien Nguyen James Mansingh • Special thanks to: Inita Goodwin Helen Bedd Nosmo King John Bush George Kerry Perry O’Dontal Your mom Dr. PapaV

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