MINI PROJECT

PLANT DESIGN & ECONOMICS (CPE

604)
(PRODUCTION OF FORMALIN)
NAME
IZZAT SYAZWAN BIN ABDUL
RAHMAN
MOHD SYAMIL HIDAYAT BIN
HASSIM
MOHAMED HIZAM BIN
MOHAMED NOOR
HAMDAN BIN AZMAN
ADZHAM EZZAQ BIN ROSLAN
MUHAMMAD ASRAF BIN MAT
PAUZI
AMERUL NAIM BIN ABDULAH
MUHAMMAD REZZA BIIN
JAYADI
MUHAMMAD FAWWAZ BIN
RAIDI

SUBMITTED TO:
DR. JAGANNATHAN KRISHNAN
DECEMBER 2O14

ID NO
2013873332
2013280436
2013805264
2013659008
2013210046
2013895434
2013837186
2013467628
2013801798

DATE SUBMITTED:
18TH

CONTENT
1.0

INTRODUCTION...........................................................................................
.............. 1
1.1
Background
Literature.................................................................................. 1
1.2
History.................................................................................................
.......... 2
1.3
Property of
Formaldehyde......................................................................... 3-5
1.4
Applications.........................................................................................
...... 6-7
1.5
Selection of the production of
Formaldehyde.......................................... 8-9
1.6
Health and
Safety.................................................................................. 10-11

2.0

PROCESS
DESCRIPTION..........................................................................................
12
2.1
Process Flow
Diagram(PFD).......................................................................12-14
2.2
Process
Description................................................................................... 15
2.3
Stream
Summary.................................................................................. 16-19

3.0

EQUIPMENT
SIZING............................................................................................... 20
3.1
Pump...................................................................................................
...... 20-21
3.2
Absorber..............................................................................................
..... 21-22
3.3
Compressor.........................................................................................
..... 22-23
3.4
Distillation Column.............................................................................
23-24
3.5
Reactor................................................................................................
25-26
3.6
Heater E1................................................................................................ 26-27
3.7
Heater E2................................................................................................ 27-28
3.8
Cooler E4................................................................................................ 28
3.9
Cooler E-3...........................................................................................
28-30

4.0

ECONOMIC
ANALYSIS.......................................................................................... 31
4.1
Estimation of Capital.........................................................................
32-35
2

4.2
4.3
4.4

Estimation of Cost of Manufacturing.................................................

36-41
Engineering Economic Analysis..........................................................
42-47
Profitability Analysis...........................................................................
48-50

5.0

PINCH
ANALYSIS............................................................................................ 5159

6.0

ENVIRONMENTAL
CONSIDERATION................................................................. 60
6.1
Methanol.............................................................................................
... 61
6.2
Formalin..............................................................................................
61-64

7.0

PLANT
LAYOUT................................................................................................ 65
7.1
Plant Site
Suggested................................................................................ 67-70
7.2
Map of Site
Location............................................................................... 71-72
7.3
Site
Layout........................................................................................... 7375
7.4
Plant
Layout......................................................................................... 7678
SUMMARY&
CONCLUSION.............................................................................. 79-80

8.0
1.0

INTRODUCTION

1.1

Background Literature
Methanol,

CH 3 OH

or in another name alcohol or calbinol, is one of the

most important chemical raw materials. 85% of the methanol produced is used in the
chemical industry as a starting material or solvent for synthesis. The by-product is
used in the fuel and energy sector and increasing throughout the years. Worldwide
production capacity in 1989 was around

21 10

worldwide production capacity was increased to

tonne per annum. But in 1993,

22.4 10

tonne per annum and

keeps mounting in 2011, which was the consumption of pure methanol reached
almost

47 106 tonne per annum (Wiley-VCH, 2012).

3

Methanol

CH 3 OH

can be either used as a solvent and fuel by itself or

conveniently converted into useful products such as formaldehyde, amines, acetic

acid, esters, and olefins. The major part is used in the formaldehyde industry.
Formaldehyde (CH2O), the target product of the projects plant, is an organic
compound representing the simplest form of the aldehydes. It acts as a synthesis
baseline for many other chemical compounds including phenol formaldehyde, urea
formaldehyde and melamine resin. The most widely produced grade is formalin (37
wt. % formaldehyde in water) aqueous solution. Different catalysts have been widely
tested for the methanol oxidation reactions. Especially different vanadium-based
catalysts have been under intensive investigation. For example V2O5/TiO2, VMgO
and silica supported SbV mixed oxide catalysts have been studied.
Formaldehyde can be produced also by using mercaptans as reactants. This
is attractive, since the process will, at the same time, reduce the emissions of these
very malodorous compounds. For example, methanol and mercaptans are formed
during the pulping process of wood in pulp mills. In kraft pulp mills 7080% of total
volatile organic compound (VOC) emissions are methanol emissions. These
compounds can be collected from the condensate streams of the mill. Nowadays the
treatment process of these streams includes enrichment by steam stripping and then
incineration or in some cases the condensate stream is fed to an aerobic wastewater
treatment system where it is converted to carbon dioxide and water (Burgess,
Gibson, 2012). The main emitted gas in the process of formaldehyde synthesis
includes hydrogen, methanol gas, formaldehyde gas, vapour, carbon monoxide,
carbon dioxide and methane. In general, the emitted gases would be inhaled into the
boiler in which they can be burned to carbon dioxide and vapour, without causing any
harm (Kruse, 2012).

1.2

History
Ancient Egyptians used a mixture of substances that included methanol in
their embalming process. They obtained the methanol from pyrolysis of wood.
Pyrolysis is the chemical decomposition of condensed organic substances by
heating. However, pure methanol wasnt isolated until 1661 by Robert Boyle, who
produced the chemical through the distillation of boxwood. The chemical later
became known as pyroxylic spirit. The French chemists Jean-Baptiste Dumas and
Eugene Peligot determined its elemental composition in 1834.
4

The term methyl was derived from the word methylene, which was coined
by Dumas and Peligot in 1840. It was then applied to describe methyl alcohol. The
International Conference on Chemical Nomenclature shortened this to methanol in
1892. When German chemists Alwin Mittasch and Mathias Pier developed a means
to convert synthesis gas into methanol, a patent was filed on Jan. 12, 1926. In 2006
astronomers at Jodrell Bank Observatory using the Merlin array of radio telescopes,
discovered a large cloud of methanol in space, 300 billion miles across.
Formaldehyde is the simplest aldehyde with the chemical formula HCHO.
Since its accidental production by Alexander Mikhailovich Butlerov in 1859 and
subsequent discovery by A. W. Hofmann in 1868, formaldehyde has become a major
industrial product. Hofmann passed a mixture of methanol and air over a heated
platinum spiral and then identified formaldehyde as the product. This method lead to
the major way in which formaldehyde is manufactured today, the oxidation of
methanol with air using a metal catalyst.
Formaldehyde is normally found in pressed wood products such as particle
board, plywood, panelling and fibreboard, glues and adhesives, durable press fabrics
like drapes, furniture, cabinets and building materials made from particleboard,
medium density fibreboard and certain moulded plastics. Products containing
formaldehyde also "off-gas" which means the formaldehyde will evaporate into the air
slowly at a low rate. Products that pose this risk including some latex paints,
wallpapers, cardboard and paper products, dishwashing liquids, fabric softeners,
shoe-care agents, carpet cleaners, lacquers and some cosmetics, such as nail polish
and nail hardener. Formaldehyde is widely produced around the world for use as a
disinfectant and preservative. It is also used in textile finishing and in the production
of resins that act as adhesives and binders for wood products.

1.3

Properties of Formaldehyde

1.3.1

Chemical Properties

Figure 1: Atomic Structure of Formaldehyde

Formaldehyde is an organic compound with the formula CH2O or HCHO. It is
the simplest aldehyde and is also known by its systematic name methanal. The
common name of this substance comes from its similarity and relation to formic acid.
A gas at room temperature, formaldehyde is colourless and has a
characteristic pungent, irritating odour. It is an important precursor to many other
materials and chemical compounds. In 1996, the installed capacity for the production
of formaldehyde was estimated to be 8.7 million tonnes per year. Commercial
solutions of formaldehyde in water, commonly called formol, were formerly used as
disinfectants and for preservation of biological specimens. It is commonly used in nail
hardeners and/or nail varnish.

Figure 2: Chemical Identity of Formaldehyde

1.3.2

Physical Properties

The chemical formula for formaldehyde is CH2O and the molecular weight is 30.03 g/mol.
The vapour pressure for formaldehyde is 10 mm Hg at -88 EC, and its log octanol/water
partition coefficient (Log Kow) is -0.65. Formaldehyde is a colourless gas with a pungent,
suffocating odour at room temperature; the odour threshold for formaldehyde is 0.83 ppm.
Formaldehyde is readily soluble in water at room temperature. Commercial formaldehyde is
produced and sold as an aqueous solution containing 37 to 50 percent formaldehyde by
weight.

Figure 3: Physical and Chemical Properties of Formaldehyde

1.4

Applications
8

Formaldehyde is a major industrial chemical, ranked 24th in production

volume in the United States. In 1985, 5.7 billion pounds of 37 percent formaldehyde
(by weight) was produced. Formaldehyde has four basic uses: as an intermediate in
the production of resins; as an intermediate in the production of industrial chemicals;
as a bactericide or fungicide; and as a component in the formulation of end-use
consumer items. The manufacture of three types of resins: urea-formaldehyde,
phenol-formaldehyde, and melamine formaldehyde, accounts for about 59 percent of
total consumption. An additional seven percent is consumed in the production of
thermoplastic acetal resins. About one-third is used in the synthesis of high volume
chemical

derivatives,

including

pentaerythritol,

hexamethylenetetramine,

and

butanediol. Two percent is used in textile treating and small amounts of formaldehyde
are present as preservatives or bactericides in consumer and industrial products,
such as cosmetics, shampoos and glues.
Some products prepared from formaldehyde contain unreacted formaldehyde
residues which may be released from the product over its useful life. One example is
urea-formaldehyde resin. Urea-formaldehyde resin is a generic name that actually
represents an entire class of related formulations. Over 60 percent of ureaformaldehyde resin production in 1977 was consumed by particleboard and plywood
manufacturing, where the resin is used as a glue. Urea-formaldehyde resins are also
used in decorative laminates, textiles, paper, and foundry sand moulds.
Formaldehyde resins are used to treat textiles to impart wrinkle-resistance to
clothing. About 60-85 percent of all apparel fabric is finished with formaldehydecontaining resins. As apparel manufacture is the sixth largest industry sector in the
United States, this use is the major source of widespread exposure to formaldehyde
because of the large number of workers potentially exposed. In addition, the natural
gas and petroleum industries use formaldehyde-based resins in drilling operations, to
increase oil and gas well yield and to improve service life. Formaldehyde-based
glues help paint to adhere to surfaces, and veneer and paper overlays to adhere to
particleboard.
Formaldehyde destroys bacteria, fungi, moulds, and yeast. Its commercial
importance as a fungicide is probably its greatest use as a disinfectant. Because of
its bactericidal properties, formaldehyde is used in numerous cosmetic preparations.
Formaldehyde's uses can lead to widespread exposure in downstream
industries.

For

example,

when

formaldehyde

is

present

in

disinfectants,

preservatives, and embalming fluid, worker exposure can occur. Although

formaldehyde changes into other chemicals when urea-formaldehyde resins and
9

concentrates are produced, decay may occur, causing workers in numerous

industries including wood products and apparel manufacture to be exposed to
airborne formaldehyde when it off gasses from products manufactured with these
resins.
From the front to the rear bumpers, formaldehyde-based materials are key to
the manufacture of automobiles and are used to make components for the
transmission, electrical system, engine block, door panels, axles and brake shoes,
just to name a few. It's even used in the paint. Formaldehyde-based materials are
used to produce the money bills we spend every day, the documents we print from
our computers and the ink used in books, magazines and newspapers.
Formaldehyde solutions are used as a fixative for microscopy and histology
because of formaldehyde's ability to perform the Mannich reaction, although the
percentage formaldehyde used may vary based on the method of analysis.
Additionally, the methanol used to stabilize formaldehyde may interfere with the
ability to properly fix tissue or cells, and therefore commercial formaldehyde
preparations are available that are packaged in glass ampules under an inert gas to
prevent the use of contaminating methanol for stabilization. Formaldehyde-based
solutions are also used in embalming to disinfect and temporarily preserve human
and animal remains. It is the ability of formaldehyde to fix the tissue that produces the
tell-tale firmness of flesh in an embalmed body. In post mortem examinations a
procedure known as the "sink test" involves placing the lungs of an animal in an
aqueous solution of formaldehyde; if the lungs float it suggests the animal was
probably breathing or able to breathe at the time of death.

10

1.5

Selection of the production of formaldehyde

Formaldehyde is mainly produced by the metal oxide catalyst process. This
process is usually carried in very low temperature due to the activeness of the high
catalyst selectivity. Qualitative and quantitative processes were used to identify which
process might be used so far in the industry to obtain the objective of production.
In process selection of a production of formaldehyde, there are various
criterions that should be taking in consideration as it plays important parts in
producing better formaldehyde. The process of selection covered all other aspects
such as inner aspects and outer aspects. For the selection process, concept
screening was used to list up every criteria that might affect the production of
formaldehyde. The selection process tabulated data in screening table 1 as below:

Criterions
Old

Oxidation of

Formalin

Tail

traditional

hydrocarbo

production

Circulation

Quality of product (formaldehyde)

method
-

n gases
-

unit 800
+

Method
0

Consumption of energy

Catalyst used and effectiveness

-2

-1

Low

inhibitor

distillation
Total score
Rank

in

bottom

column

of

gas

Table 1: Selection process tabulated data in screening

As the process of screening done, further evaluation needs to be done. The

critical analysis was needed to be performed to ensure the best method can be
selected. Here is the process of scoring after the best ranks were picked.

11

Criterions

(2).

Oxidation

of

hydrocarbon gases.
Quality

of

product

(3). Formalin production unit

800

and

bottom

Total score

13

15

Rank of scoring

(formaldehyde)
Consumption of energy
Catalyst

used

effectiveness
Low inhibitor

in

column of distillation

Table 2: Selection process tabulated data in scoring

Referring from the scoring table 2, the production through the method in
Formalin production unit 800 has a greater possibilities in terms of high quality
formaldehyde production, the moderate consumption of energy, the effective of
catalyst is slightly better than method 2 which is oxidation of hydrocarbon gases, and
contains low inhibitor in bottom column of distillation. Clearly this process is far the
best among the others method available in industries.

1.6

Health and Safety

12

According to a 1997 report by the U.S. Consumer Product Safety Commission,

formaldehyde is normally present in both indoor and outdoor air at low levels, usually less
than 0.03 parts of formaldehyde per million parts of air (ppm). Materials containing
formaldehyde can release formaldehyde gas or vapour into the air. One source of
formaldehyde exposure in the air is automobile tailpipe emissions.
During the 1970s, urea-formaldehyde foam insulation (UFFI) was used in
many homes. However, few homes are now insulated with UFFI. Homes in which
UFFI was installed many years ago are not likely to have high formaldehyde levels
now. Pressed-wood products containing formaldehyde resins are often a significant
source of formaldehyde in homes. Other potential indoor sources of formaldehyde
include cigarette smoke and the use of unvented fuel-burning appliances, such as
gas stoves, wood-burning stoves, and kerosene heaters.
Industrial workers who produce formaldehyde or formaldehyde-containing
products, laboratory technicians, certain health care professionals, and mortuary
employees may be exposed to higher levels of formaldehyde than the general public.
Exposure occurs primarily by inhaling formaldehyde gas or vapour from the air or by
absorbing liquids containing formaldehyde through the skin.
Formaldehyde enters the environment through natural sources such as forest
fires and certain human activities such as smoking tobacco, burning automotive and
other fuels, and wood burning. Sources of formaldehyde in indoor air include tobacco
smoke and smoke that may leak from wood-burning appliances, such as wood
stoves and fireplaces. Many processed and finished products found inside our homes
contain and release very small amounts of formaldehyde into the air.
In recent years, the health effects associated with elevated levels of exposure
have brought to light the dangers from prolonged and repeated contact with
chemical. The major exposure risks associated with formaldehyde come from
occupants inhaling contaminated air.

Exposure to elevated levels of this substance should be avoided whenever

possible as exposures to high levels of formaldehyde can trigger:
Asthma attacks
13

 Nausea
Watery and/or burning eyes
Difficulty breathing
Headaches
Respiratory irritation
Sensitization
Formaldehyde has been shown to cause cancer in animals and according to
the Department of Health and Human Services (DHHS), formaldehyde may
reasonably be anticipated to be a carcinogen. Formaldehyde must be stored in a
moderately warm place. It is classified as C1 (Combustible Liquid) for the purpose of
storage and handling. This substance must be kept away from sources of heat or
ignition, strong alkalis, acids, combustibles and oxidizing agents.
Figure 4: Safety Information of Formaldehyde

14

2.0

Process Description

Unit 800 produces formalin (37wt% formaldehyde in water) from methanol using the silver catalyst process. Air is compressed and preheated,
fresh and recycled methanol is pumped and preheated, and these two streams are mixed to provide reactor feed. The feed mixture is about 39 mol
% methanol in air, which is higher than the upper flammability limit for methanol. In the reactor, the following two reactions occur:

CH3OH + 1/2O2

CH3OH

HCHO + H2O

H rxn=37.3 kcal/mole

HCHO + H2

H rxn=20.3 kcal/mole

The reactor is a unique configuration, in which the silver catalyst is in the form of wire gauze, suspended above a heat exchanger tube bank.
Because the net reaction is very exothermic, the heat generated in the adiabatic reactor section must be removed quickly, hence the close
proximity of the heat-exchanger tubes. The heat exchanger resembles a pool boiler, with a pool of water on the shell side. If the temperature of the
effluent is too high, the set point on the steam pressure line is lowered to increase the vaporization of boiler feed water (bfw). In general, the liquidlevel controller on the bfw is adjusted to keep the tube bundle fully immersed. The reactor effluent enters an absorber in which most of the
methanol and formaldehyde are absorbed into water, with most of the remaining light gases purged into the off-gas stream. The methanol,
formaldehyde, and water enter a distillation column, in which the methanol overhead is recycled; the bottoms product is a formaldehyde/water
mixture that contains 1 wt% methanol as an inhibitor. This mixture is cooled and sent to a storage tank, which is sized at four days capacity. This
storage tank is essential, because some of the downstream processes are batch. The composition in the storage tank exceeds 37wt%
15

formaldehyde, so the appropriate amount of water is added when the downstream process draws from the storage tank. This is not shown in the
PFD (Figure 5a).
Storage of formaldehyde/water mixtures is tricky. At high temperatures, undesirable polymerization of formaldehyde is inhibited, but formic
acid formation is favored. At low temperatures, acid formation is inhibited, but polymerization is favored. There are stabilizers that inhibit
polymerization, but they are incompatible with resin formation. Methanol, at concentrations between 5 wt% and 15 wt%, can also inhibit
polymerizaton, but no separation equipment for methanol currently exists on site, and methanol greater than 1 wt% also causes defective resin
production. With 1 wt% methanol, the storage tank contents must be maintained between 35C and 45C..

16

Figure 5: Unit 800: Formalin Process Flow Diagram

17

2.2

Process Description
The PFD shows a process to produce formaldehyde and water. Fresh methanol, at

30C and 120kPa mixes with recycled methanol, Stream 14, at 30C and 120kPa. Stream 1
(recycled and fresh methanol) is at 30C and 120kPa. Pump raises the pressure up to
300kPa. Stream 2 enters the heater which increases the temperature and pressure at 150C
and 265kPa respectively. Fresh air at 25C and 101.3kPa enter the compressor.

The

compressor raises the pressure to 300kPa in Stream 4. This stream was then passed
through a heater which raised the temperature to 200C in Stream 5. Stream 5 and Stream 3
were then entering the mixer. The combined mixture is at 171.9C and 255kPa in Stream 6.

The reactor converts 85% of the methanol. The exit reactor temperature is 200C
and 185 kPa. Heat is removed by Stream 7 passing through E-3 cooler which cools the
temperature into 100C at Stream 8 with a drop of pressure which is at 150 kPa. A valve
drops the pressure of this stream to 5 psia before it enters the absorber, T-101. Fresh water
is sent through the absorber at 30C and 150 kPa. Absorber is set to absorb 99% of the
formaldehyde that enters. Stream 9 then enters the formalin distillation column.

Most of the methanol is recovered in the distillate.

Stream 10, the distillate, is

recycled back to the inlet of fresh methanol at 30C and 120 kPa. The bottoms, Stream 12 is
at temperature of 106.4C with the pressure of 150 kPa. Storage of formalin is tricky. At high
temperatures, undesirable polymerization of formaldehyde is inhibited, but formic acid
formation is favoured. At low temperatures, acid formation is inhibited, but polymerization is
favoured. With 2 wt% methanol, the storage tank contents must be maintained between
35C and 45C.

18

2.3

Stream Summary

Name

mixer3.Out

pump.Out

E-2.Out

compressor.Out

pump.In

E-2.In

Mixer1.In1

E-1.In

Description
Upstream Op
Downstream Op
VapFrac

0.00

0.00

1.00

1.00

T [C]

30.0

40.8

150.0

183.0

120.00

300.00

265.00

300.00

P [kPa]
MoleFlow/Composition

Fraction

kgmole/h

Fraction

kgmole/h

Fraction

kgmole/h

Fraction

kgmole/h

METHANOL

1.0000

80.00

1.0000

80.00

1.0000

80.00

0.0000

0.00

OXYGEN

0.0000

0.00

0.0000

0.00

0.0000

0.00

0.21009

30.66

FORMALDEHYDE

0.0000

0.00

0.0000

0.00

0.0000

0.00

0.0000

0.00

WATER

0.0000

0.00

0.0000

0.00

0.0000

0.00

0.0000

0.00

HYDROGEN

0.0000

0.00

0.0000

0.00

0.0000

0.00

0.0000

0.00

NITROGEN

0.0000

0.00

0.0000

0.00

0.0000

0.00

0.78991

115.28

1.00

80.00

1.00

80.00

1.00

80.00

1.00

145.94

Total
Mass Flow [kg/h]

2563.35

2563.35

2563.35

4210.48

Volume Flow [m3/hr]

3.275

3.318

1062.108

1844.978

Std Liq Volume Flow [m3/hr]

3.221

3.221

3.221

12.348

Std Gas Volume Flow [SCMD]

4.5485E+4

4.5485E+4

4.5485E+4

8.2977E+4

Energy [W]

-6.209E+5

-5.914E+5

3.901E+5

5.405E+5

H [kJ/kmol]

-27939.0

-26614.0

17552.9

13332.8

67.344

76.002

206.302

174.598

32.04

32.04

32.04

28.85

782.6941

772.6670

2.4135

2.2821

S [kJ/kmol-K]
MW
Mass Density [kg/m3]

19

Cp [kJ/kmol-K]
Thermal Conductivity [W/m-K]
Viscosity [Pa-s]
Molar Volume [m3/kmol]
Z Factor

121.168

124.240

53.538

29.787

0.2007

0.1970

0.0288

0.0360

5.0500E-4

4.4242E-4

1.3999E-5

2.4694E-5

0.041

0.041

13.276

12.642

0.0019

0.0048

1.0000

1.0000

Name

E-1.Out

Mixer1.Out

reactor.Out

E-3.Out

Downstream Op

Mixer1.In0

reactor.In

E-3.In

absorber.Feed_19_bottomFeed

VapFrac

1.00

1.00

1.00

1.00

200.0

171.9

200.0

100.0

265.00

255.00

185.00

150.00

Description
Upstream Op

T [C]
P [kPa]
MoleFlow/Composition
METHANOL

Fraction

kgmole/h

Fraction

kgmole/h

Fraction

kgmole/h

Fraction

kgmole/h

0.0000

0.00

0.35408

80.00

0.04512

12.00

0.04512

12.00

0.21009

30.66

0.1357

30.66

0.0100

2.66

0.0100

2.66

FORMALDEHYDE

0.0000

0.00

0.0000

0.00

0.2557

68.00

0.2557

68.00

WATER

0.0000

0.00

0.0000

0.00

0.21057

56.00

0.21057

56.00

HYDROGEN

0.0000

0.00

0.0000

0.00

0.04512

12.00

0.04512

12.00

NITROGEN

0.78991

115.28

0.51022

115.28

0.43348

115.28

0.43348

115.28

1.00

145.94

1.00

225.94

1.00

265.94

1.00

265.94

OXYGEN

Total
Mass Flow [kg/h]

4210.48

6773.83

6773.83

6773.83

2166.495

3301.453

5655.112

5500.552

12.348

15.570

15.279

15.279

8.2977E+4

1.2846E+5

1.512E+5

1.512E+5

Energy [W]

5.611E+5

9.511E+5

1.131E+6

8.768E+5

H [kJ/kmol]

13839.9

15154.6

15306.4

11868.9

Volume Flow [m3/hr]

Std Liq Volume Flow [m3/hr]
Std Gas Volume Flow [SCMD]

20

S [kJ/kmol-K]

176.721

192.978

201.114

194.704

28.85

29.98

25.47

25.47

Mass Density [kg/m3]

1.9435

2.0518

1.1978

1.2315

Cp [kJ/kmol-K]

29.871

38.773

35.231

33.560

Thermal Conductivity [W/m-K]

0.0371

0.0329

0.0382

0.0295

2.5371E-5

2.0114E-5

1.9595E-5

1.5795E-5

Molar Volume [m3/kmol]

14.845

14.612

21.265

20.683

Z Factor

1.0000

1.0000

1.0000

1.0000

MW

Viscosity [Pa-s]

Name

10

11

Upstream Op

absorber.LiquidDraw_19_bottomL

Distillation_column.VapourDraw_0_condenserV

Downstream Op

Distillation_column.Feed_17_feed

mixer2.In1

mixer2.In0

Description

Distillation_column.LiquidDraw_0_con
L

VapFrac

0.00

1.00

0.00

T [C]

89.9

96.0

96.0

150.00

130.00

130.00

P [kPa]
MoleFlow/Composition
METHANOL

Fraction

kgmole/h

Fraction

kgmole/h

Fraction

kgmole/h

0.04809

9.51

0.08429

1.46

0.08554

OXYGEN

0.0000

0.00

0.00001

0.00

0.0000

FORMALDEHYDE

0.3402

67.28

0.65246

11.26

0.45573

WATER

0.61167

120.97

0.26284

4.54

0.45873

HYDROGEN

0.00001

0.00

0.00011

0.00

0.0000

NITROGEN

0.00002

0.00

0.00028

0.00

0.0000

1.00

197.77

1.00

17.27

1.00

Total
Mass Flow [kg/h]

4504.31

466.77

745.56

Volume Flow [m3/hr]

6.063

407.604

1.108

Std Liq Volume Flow [m3/hr]

5.243

0.589

0.902

Std Gas Volume Flow [SCMD]

1.1244E+5

9.8163E+3

1.717E+4

Energy [W]

-1.102E+6

6.119E+4

-1.292E+5

21

H [kJ/kmol]

-20057.5

12759.8

-15404.5

115.225

205.561

131.624

22.78

27.04

24.69

742.8699

1.1451

673.0442

107.931

38.135

129.112

S [kJ/kmol-K]
MW
Mass Density [kg/m3]
Cp [kJ/kmol-K]
Thermal Conductivity [W/m-K]
Viscosity [Pa-s]

0.2827

0.0226

0.2096

2.1966E-4

1.2334E-5

1.7283E-4

0.031
0.0015

23.609
1.0000

0.037
0.0016

Molar Volume [m3/kmol]

Z Factor

Name

13

14

Off-gas

air

mixer2.Out

E-4.Out

absorber.VapourDraw_0_overheadV

E-4.In

mixer3.In1

Description
Upstream Op
Downstream Op
VapFrac
T [C]
P [kPa]
MoleFlow/Composition
METHANOL

compressor.In

0.36374

0.00001

1.00

1.00

96.0

30.0

84.6

25.0

130.00

120.00

140.00

101.30

Fraction

kgmole/h

Fraction

kgmole/h

Fraction

kgmole/h

Fraction

kgmole/h

0.08509

4.04

0.08509

4.04

0.01179

2.49

0.0000

0.00

0.0000

0.00

0.0000

0.00

0.0126

2.66

0.21009

30.66

FORMALDEHYDE

0.52729

25.03

0.52729

25.03

0.00341

0.72

0.0000

0.00

WATER

0.38748

18.39

0.38748

18.39

0.36952

78.03

0.0000

0.00

HYDROGEN

0.00004

0.00

0.00004

0.00

0.05682

12.00

0.0000

0.00

NITROGEN

0.0001

0.00

0.0001

0.00

0.54588

115.28

0.78991

115.28

1.00

47.46

1.00

47.46

1.00

211.17

1.00

145.94

OXYGEN

Total
Mass Flow [kg/h]

1212.33

1212.33

4845.70

4210.48

Volume Flow [m3/hr]

408.701

1.545

4481.601

3571.331

1.491

1.491

12.615

12.348

Std Gas Volume Flow [SCMD]

2.6986E+4

2.6986E+4

1.2007E+5

8.2977E+4

Energy [W]

-6.803E+4

-2.742E+5

6.450E+5

3.519E+5

H [kJ/kmol]

-5159.7

-20797.0

10996.4

8679.3

S [kJ/kmol-K]

158.519

98.072

186.396

171.110

25.54

25.54

22.95

28.85

Mass Density [kg/m3]

2.9663

784.9130

1.0812

1.1790

Cp [kJ/kmol-K]

96.021

95.849

31.247

29.178

Thermal Conductivity [W/m-K]

0.1376

0.2351

0.0323

0.0250

7.9774E-5

2.6044E-4

1.6451E-5

1.8110E-5

8.611

0.033

21.222

24.471

0.3647

0.0015

1.0000

1.0000

Std Liq Volume Flow [m3/hr]

MW

Viscosity [Pa-s]
Molar Volume [m3/kmol]
Z Factor

Table 3: Stream Summary

22

3.0

EQUIPMENT SIZING

This chapter covers the equipment design and sizing of the formaldehyde production plant.
The main units to be design are the reactor, absorber, distillation column, cooler and
heater(E-1,E-2,E-3,E-4), pump and the compressor. The reactor design cover mainly the
volume of the reactor. The absorber design is concerned with determining the height and
diameter of the packed tower. The design of the distillation column covered the minimum
and actual number of stages, the diameter and the height of the column. The coolers and
heaters design covered the determination of area of the equipment with respect to process
conditions. Lastly, the compressor and the pump were designed by determining the work of
the shaft according to the pressure drop across the unit.

PUMP
From Heuristic for Pump (Table 11.9) R.Turton, 2014, pg.330

Rule 1: Power (kW) =

Rule 4-7 : Type of pump based on head
From Summary Table and Equipment Summary (Appendix B)

Flowrate (stream 2) = 2563.35

Efficiency, = 0.8
P1= 120 kPa

P2= 300 kPa

Density of fluid =

= 772.5588 kg/m3

P = (3- 1.2) bar = 1.8 bar

head =

= 23.7505 mm
23

Volumetric flowrate

= 2563.35

= 0.0553 m3/min
Fluid pumping = 1.67 0.0553 m3/min 1.8 bar
= 0.166 kW

Power shaft =

= 0.2 kW

= 0.3 kW (actual value)

ABSORBER
From Summary Table,
Liquid mass flow,L(Stream 9)

= 4504.31 kg/h

Vapor mass flow,V (off gas stream) = 4845.70 kg/h

L

= 742.8699 kg/m3

= 1.0812 kg/m3

= 0.0355
From equipment summary(Appendix B),
2 in Ceramic Berl Saddle
Packing factor 45, 1.00 kPa/m pressure drop
Parameter at flooding = 0.2

75% flooding = 0.1125

G = 0.555 lb/ft2.s

24

Area =
= 5.3356 ft2

A = 5.3356 ft2 =
D = 2.6064 ft = 0.7944 m
Volume

(Actual value: 0.86m)

= Area Length

5.3356 ft 2

0.0929m 2

1ft 2

10m

= 4.96 m3

COMPRESSOR
From Heuristic for Pump (Table 11.10) R.Turton, 2014, pg.331

Rule 2 :
From Summary Table,
Mass flow(stream 4) = 4210.48 kg/h
MW = 28.85
T = 25C (298K)

P1= 1.01 bar P2 = 3 bar

Cp = 29.787

k=

Cv = 20.7865

a = (k-1)/k

= 1.433

= 0.3024

25

Mass flow =

= 40.54

Wrev ad =
= 129.494 kW
Given that = 0.7

Wact =

(Actual value: 183 kW)

DISTILLATION COLUMN
From Summary table,
L = 695.77 kg/m3

L = 27 000 kg/h

G = 1.2315 kg/m3

G = 23 000 kg/h

= 0.0447

For 18 inch tray spacing (P.Wankat, Equilibrium Staged Separations, Prentice Hall,1988, pg
387)
Csb = 0.28

Uact = 1.68 (assume 75% flooding)

Ufl = 7.35 ft/s

A=

5.07 m2 =

d = 2.54m
26

(Actual value: 2.5m)

Volume = Area x Length

; Length = 19m

= 5.07m2 x 19m
= 96.33m3

In order to determine the number of stages, Fenske equation are used as shown below:

xoverhead = 0.65426

top = 2.203

xbottom = 0.28112

bottom = 0.5335

avg =
= 1.17528

Nmin =

=
= 9.7134878
Ntheo = 2Nmin
= 2(9.7134878)
= 19.426976

tray = 0.7

Nact = (

x1.1)
= 30.5281 trays

(Actual value: 31 trays)

27

REACTOR
Component

Molecular Weight

Density (kg/m3)

Methanol

32.04

791.80

Formaldehyde

30.03

815.30

Water

18.02

999.97

Hydrogen

2.008

0.089

O2 (air)

50

0.69402

N2 (air)

From Appendix B
Component

Molar Flow

Composition

Mass flow
(kg/h)

Volume

flow

(m3/h)

CH3OH

31.45

0.11312

829.2601

1.047310

CH2O

62.67

0.2254

1652.3623

2.026692

H2O

66.82

0.24033

1761.8112

1.761864

H2

1.66

0.0059706

43.76927

491.78955

Oxygen

0.15

0.0005395

3.95497

27.13638

N2

115.28

0.41463

3039.5696

5543.8697

278.03

7330.8

6067.6315

Volume = 140.44m3

=
= 9.2583x10-3 h-1
From stream summary

28

9.2583x10-3 =
V = 130.8919 m3
given H = 2D

130.8919 =
D = 4.3678 m

H = 8.7356m

Assume 10% efficiency

D = 1.1 x 4.368 = 4.804597 m
H = 1.1 x 8.7356 = 9.60916 m

Vmax =

=
= 174.21648 m2

E-1 HEATER

Q = 20556.7896 W
Assume F = 0.9 U = 30W/m2.oC
Th,in = 336oC Th,out = 383oC

Tlm =

=
= 165.9482 oC
29

Q = UAFTlm

)(0.9)(165.9542 oC)

20556.7896 = (
A = 4.58795m2

(Actual value: 4.62m2)

A=
V

D = 2.43m
= Area Length

Assume L = 2D

= 4.62m2 2(2.43m)

= 22.54m2

For 10% efficiency

D

= 1.1 2.43m = 2.673m

= 1.1 4.86m = 5.346m

Vmax

= 29.99m3

E-2 HEATER

Q = 981487.8304 W
Assume F = 0.9 U = 30W/m2.oC
Th,in = 296oC Th,out = 90oC

Tlm =
= 88.994 oC
981487.8304 = (30)(A)(0.9)(88.994 oC)
A = 408.4702m2

(Actual value: 405m2)

D= 22.71m V=18398.02m3 Vmax = 9919122.39m3

30

E-4 COOLER
Q = 206.16826 kW
U = 280 W/m2 oC
F = 0.9
Tw,in = 30 oC Tw,out = 45 oC
Tin = 96 oC

Tout = 30.1 oC

Tlm =
= 8.1644 oC
Q = FUATlm
Q = (280) A (0.9)(8.1644)
A = 100.2 m2
D= 11.30m

V=2266.5m3

Vmax=302538.43m3

E-3 COOLER

Q = 253939.854 W
U = 30 W/m2 oC
F = 0.9
Tw,in = 30 oC Tw,out = 400oC
Tin = 200 oC

Tout = 100 oC

31

Tlm =
= 108.8694 oC
Q = FUATlm
253939.854= (0.9)(30)A(108.8694)
A= 86.3896 m2
D= 10.49m

V= 1813.203m3

(Actual value: 28.16m2)

Vmax= 208612.29m2

Comparison between Calculated Value based on Heuristic and Actual Data

Equipment

From Heuristic

Appendix

Error(%)

Pump

0.2 kW

0.3 kW

33.3

Absorber

0.7944 m

0.86 m

7.7

Compressor

184.99 kW

183 kW

1.09

Cooler E-4

100.2 m2

Cooler E-3

86.3896 m2

28.16 m2

67.4

Heater E-1

4.58795 m2

4.62 m2

0.694

Heater E-2

408.4702 m2

405 m2

0.8568

Distillation Column

D= 2.54 m

D= 2.5 m

1.6

Number of tray= 31

Number of tray= 31

130.8919 m3

140.44 m3

6.8

Reactor

Table 6: Comparison between heuristic and actual data

32

4.0

ECONOMIC ANALYSIS
This economic terms is refer to the evaluation of capital costs and others operating

costs that associated with the construction and operation of chemical process. The
economic evaluation for build a new plant can be divided into four sections which are:
4.1)

Estimation of Capital Costs

4.2)

Estimation of Manufacturing Costs

4.3)

Engineering Economic Analysis (non-discounted cash flow and discounted cash flow)

4.4)

Profitability Analysis

33

4.1: Estimation of Capital

Equipment

Cp ($)

Fp

FM

FBM

FBM

CBM($)

CBM ($)

96,284.46

4.00

4.00

385,137.84

385,137.84

- Tower

7,258.051

0.61

4.07

3.36

29,540.27

24,540.27

- Packing

7,262.987

4.10

4.10

29,778.25

29,778.25

64,501.511

0.61

4.07

6.45

262,521.15

416,031.70

3,208.63

1.83

1.83

182,025.50

182,025.50

Compressor

70,154.33

2.70

2.70

189,416.69

189,416.69

Pump

2,672.24

1.57

4.00

4.00

10,714.35

10,714.35

- E-1

25,535.10

3.29

3.29

84,010.48

84,010.48

- E-2

60,492.29

3.29

3.29

199,019.62

199,019.62

- Reboiler

41,895.06

2.78

3.29

6.24

137,834.75

261,626.21

- E-3

23,877.44

3.29

3.29

78,556.78

78,556.78

- E-4

25,351.66

3.29

3.29

83,406.96

83,406.96

- Condenser

44,033.22

2.78

3.29

6.24

144,869.30

274,978.62

TOTAL

472,526.98

8.22

13.1
3

44.51

52.08

1,816,831.9
4

2,219,109.71

Reactors
Absorber:

Distillation
Column:
- Tower
- Tray

Heaters:

Coolers:

Table 7: Estimation of Capital Cost

Table above gives the value in USD of the equipment that is used in the project of the plant. The
sample calculation is shown below.

34

Sample Calculation for Estimation of Capital Cost

Equipment used in this sample calculation is Pump.

log 10 C op=k 1 +k 2 log 10 ( A )+ k 3 ( log 10 A )2

Power Shaft ( kW )=

Fluid Power
Efficiency

From heuristic, sizing of the pump, the value of the shaft power of the pump is calculated in
Equipment design. From there, Power Shaft = 0.2kW. The constant value of k1, k2, and k3 are
collected in Appendix A, Table A.1.
k1 = 3.3892, k2 = 0.0536, k3 = 0.15838
So,

log 10 C op=3.3892+ 0.0536 log 10 ( 0.2 ) +0.1538 ( log 10 0.2 )2

C op =2672.2408
Next, the pressure factors is calculated using following equation that are taken from Turton text
book, Analysis, Synthesis, and Design of Chemical Process. The constant value of C1, C2, and
C3 are collected in Appendix A, Table A.2.

log 10 F p=C 1 +C2 log 10 ( P )+C 3 ( log 10 P ) 2

With a difference pressure of 1.8 bar = 0.8 barg which is less than 10 barg,
C1 = C2 = C3 = 0
So, Fp = 1

35

From the Table A.3, the identification number of the material is needed to be identified first
before proceeding to the graph of material factors, FM.
For this pump, centrifugal type and made of carbon steel. So, refer to the graph of material
factors in the text book, Figure A.18,
For this pump used carbon steel material. So, FM= 1.57
The constant for bare module factor is to be determined in Table A.4 in the text book. The
condition is centrifugal type of pump. The values are, B1 = 1.89, B2 = 1.35
FBM

B1 +B2FMFP

1.89 + 1.35(1.57)(1)

4.0095

FBM

B1 + B2

FBM

1.89 + 1.35

3.24

The bare module cost in base conditions is then calculated by using this following formula.
CBM

CBM

Cp FBM0

($2,672.2408) (3.24)

$8,658.060

Cp FBM
36

($2,672.2408) (4.0095)

$10,714.35

Sample Calculation of Equipment Based on CEPCI Index 2014

I2001

394

I2014

580.2 (last Nov 2014)

Find total bare module cost with non-base condition

I2
C2 (2014)

C1 (2001) I 1

C2 (2014)

2,219,109.71[

Total CBM ($) =

3,243,142.201

580.2

394

Find total bare module cost with base condition

I2
C2 (2014)

C2 (2014)

C1 (2001) I 1

580.2

1,814,775.65[ 394

Total CBM ($) =

2,672,418.356

Grass Roots and Total Module Costs

n

CTM

C BM ,i

1.18

1.18 ($3,243,142.201)

$ 3,826,907.572

i=1

37

CGR

CGR

4.2:

C BM ,i

CTM + 0.50

($3,826,907.572) + 0.50 ($2,672,418.356)

$5,163,116.75

$5,163,116.75

RM17,657,859.29

i=1

( RM$3.42 )

Estimation of Cost of Manufacturing (COM)

The costs that associated with day-to-day operation of plant are needs to be estimated before
the economic feasibility of a proposed process can be assessed. The manufacturing costs are
expressed in units of dollars per unit time. The factors that effecting of cost manufacturing are
Fixed capital investment, FCI, Cost of raw material, CRM, Cost of utility, CUT, Cost of waste
treatment, CWTand Cost of Operating Labor COL. The total for each cost and further calculation
can be refers at each tablethat summarize below.

Cost of Manufacturing
Cost (RM/yr)
Fixed capital investment, FCI
17,657,859.29
Cost of raw material, CRM
17,894,936.27
Cost of utility, CUT
1,570,791.195
Cost of waste treatment, CWT
0
Cost of Operating Labor COL
252,000
Table 8 : The Cost for Factor Affect in Cost of Manufacturing

38

4.2.1: Cost of Raw Material (CRW)

RAW MATERIALS

AMOUNT (tonne/yr,

CURRENT PRICE

COSTS (RM/yr)

Methanol
Deionised water
Air Supply (Oxygen

m3/yr)
21,556.75
15,571.52
30,033.46

RM 0.81/kg
RM 3.42/1000kg
RM 1.20/100 std m3

17,460,966.01
74,093.37
359,876.894

and Nitrogen
TOTAL

17,894936.27
Table 9 : Cost of Raw Material

4.2.2: Cost of Utility (CUT)

UTILITY
Pump
Compressor
Heater:

AMOUNT (kW)
0.2
184.99

COST / COMMON UNIT

RM 0.2025/kWh
RM 0.2025/kWh

COST (RM)
431.41
456,039.97

E-1

20.5567896

RM 60.534/GJ

11,015.56

E-2

98.14878304

RM 50.719/GJ

150,705.82

Reboiler
Cooler:

608.484209

RM 50.719/GJ

934,317.408

E-3

253.93985

RM 1.211/GJ

9,307.603

E-4

206.1682623

RM 1.211/GJ

7,556.64

Condenser
TOTAL

38.65419867

RM 1.211/GJ

1,416.784
1,570,791.195

Table 10 : Cost of Utility

4.2.3: Cost of Waste Treatment (CWT)

In our process flow diagram, there is an off-gas stream that contain all of the product and the
reactant that are not needed further in the reaction. The stream contains of methanol,
formaldehyde, water, hydrogen, nitrogen and oxygen in vapour form. The water, hydrogen,
nitrogen and oxygen are not harmful to the ecosystem if the gaseous mixture was released to
the atmosphere, but the formaldehyde and methanol are not. The only solution is to use the
flare system to burn off the methanol and formaldehyde. The cost of this flare system is count
as a unit.
4.2.4: Cost of Operating Labor (COL)

39

Nnp

NOL

Equipment

10

[6.29 + 31.7 P2 + 0.23 Nnp] 0.5

[6.29 + 31.7 (0)2 + 0.23 (10)] 0.5

2.931

P=0 (no solid)

So, the number of operators required per shift = 2.931

(49 weeks / year) x (5 shift / weeks) = 245 shifts per operator per year
(365 days/year x 3 shift/day) = 1095 operating shift per year
(1095 operators shift/year) / (245 shifts/year) = 4.5 operators
Operating labour = (4.5) (2.931)

= 13.1895
COL

14 operators

NOL x 4.5 x Salary

(2.931) (4.5) ($ 18,000)

252,000 RM/yr

COMd =

0.180 FCI + 2.73 COL +1.23 (CUT + CWT + CRM)

=(0.18x17,657,859.195)+b(2.73x252,000)+1.23(1,570,791.195+0+17,894,936.27
=
COM =
=
=

27,809,219.45 RM/yr
0.280 FCI + 2.73 COL +1.23 (CUT +CWT +CRM)
(0.28 x17,657,859.195) + (2.73x252,000)
+1.23(1,570,791.195+0+17,894,936.27
29,575,005.36 RM/yr

4.2.5: Manufacturing Factors to Determine Manufacturing Costs

FCI

= RM 17,657,859.29

COM

= RM 29,575,005.36/yr

Direct Manufacturing

Typical Range of Multiplying

Costs

Factors

Value used

Cost (RM/yr)

40

Raw Material
Waste Treatment
Utilities
Operating Labour
Direct Supervisory and

(0.1-0.25)COL

Clerical Labour
Maintenance and Repair
Operating Supplies
Laboratory Charges
Patents and Royalties
Total Direct

(0.02-0.1)FCI
(0.1-0.2)(0.06FCI)
(0.1-0.2)COL
(0-0.06)COM
CRM+CWT+CUT+1.33COL+

Manufacturing Costs

CRM
CWT
CUT
COL
0.18COL
0.06FCI
0.009FCI
0.15COL
0.03COM

17,894,936.27
0
1,570,791.195
252,000
45,360
1,059,471.557
158,920.734
37,800
887,250.16
21,906,529.92

0.03COM+0.069FCI
Table 11: Direct Manufacturing Cost

Fixed Manufacturing

Typical Range of Multiplying

Value used

Cost (RM)

Costs
Depreciation
Local Taxes and

Factors
0.1FCI
(0.014-0.05)FCI

0.1FCI
0.032FCI

1,657,785.929
565,051.497

Insurance
Plant Overhead Cost

(0.50-0.7)

0.708COL+

814,098.934

(COL+0.18COL+0.06FCI)
0.708COL+0.068FCI

0.036FCI

Total Indirect Costs

3,036,936.361

+Depreciation
Table 12: Indirect Manufacturing Costs

General Manufacturing

Typical Range of Multiplying

Value used

Cost (RM)

Costs
Administration Costs

Factors
0.15(COL+0.18COL+0.06FCI)

0.177COL

203,524.734

Distribution and Selling

(0.02-0.2)COM

+0.009FCI
0.11COM

3,253,250.59

Costs
Research and

0.05COM

0.05COM

1,478,750.27

Development
Total General

0.177COL+0.009FCI+0.16COM

4,935,525.291

Manufacturing Costs
Total Costs

CRM+CWT+CUT+2.215COL

29,878,991.87

+0.190COM+0.146FCI+
41

Depreciation
Table 13: General Manufacturing Costs

4.2.6: Total Direct Manufacturing Cost (DCM)

DCM

CRM+ CWT+CUT+1.33COL+0.03COM+0.069FCI

17,894,936.27 + 0 + 1,570,791.195 + (1.33 x 252,000)

+ (0.03 x 29,575,005.36) + (0.069 x 17,657,859.29)

21,906,529.92 RM/yr

4.2.7: Total Fixed Manufacturing Costs (FMC)

FMC

0.708 COL + 0.068 FCI + Depreciation (0.1FCI)

(0.708 x252,000)+ (0.068 x 17,657,859.29) + (0.1 x 17,657,859.29)

3,144,936.36 RM/yr

4.2.8: Total General Manufacturing Costs (GMC)

GMC

0.177 COL + 0.009 FCI + 0.16 COM

(0.177 x 252,000) + (0.009 x 17,657,859.29) + (0.16 x 29,575,005.36)

4,935,525.60

Total Cost =
=

CRM + CWT + CUT + 2.215 COL + 0.19 COM + 0.146 FCI + depreciation
17,894,936.27 + 0 + 1,570,791.195 + (2.215 x 252,000) + (0.19 x
29,575,005.36) + (0.146 x 17,657,859.29) + (0.1 x 17,657,859.29)

29,878,991.87 RM/yr

42

4.3

Engineering Economic Analysis

In this engineering economic analysis, the subjects included in this chapter are the nondiscounted cash flow and discounted cash flow.
4.3.1

Non-discounted Cash Flow

Cash Flow and Cumulative Cash Flow (Non Discounted)
Year
0
0
1
2
2
3
4
5
6
7
8
9
10
11
12
12

Cash Flow
0.0
-0.39
-10.59
-7.06
-3.58
3.03
3.56
2.99
2.65
2.65
2.40
2.15
2.15
2.15
3.47
3.97
Table 14: Non-Discounted Cash Flow

Cash Flow
Cumulative
0.0
-0.39
-10.65
-17.28
-20.64
-17.98
-14.75
-12.20
-10.01
-7.89
-6.23
-4.42
-2.86
-1.35
1.01
3.72

43

Cash Flow Diagram

15.0
10.0

Payback Period

5.0
0.0
Project Value (millions of RInggit)

-5.0
-10.0
-15.0
-20.0
-25.0
-1 0 1 2 3 4 5 6 7 8 9 10 111213
Project Life (Years)

Figure 6 : Graph of Non-discounted Cash Flow Diagram vs Time

Above are the graphs that represent our discrete (non-discounted) cash flows during this project
life. From the beginning, the construction phase of this plant takes only two years period. This is
shown in the graph that in two years of the project life, there is major capital outlay that
represents the fixed capital expenditures for purchasing and installing the equipment and
auxiliary facilities required to run the plant. After two years of construction, the plant will start its
production and has to recover the fixed capital investment (FCI L) in 6.2 years after plant startup. It can be shown on the graph that 6.2 years later the fixed capital investment has been paid.
The cumulative cash ratio of this project is calculated using this equation:

CCR=

of all positive cas h flows

of all negative cas h flows

After calculation, the value of cumulative cash ratio is about 1.44. This indicates that the project
has the potential to be profitable where project with CCR greater than one are potentially
profitable but if not, the project is said not profitable.

44

The rate of return on investment (ROROI) represents the non-discounted rate at which money is
made from a fixed capital investment. It can be calculated by the following equation:

ROROI=

Average annual net profit

capital investment ( FCI L )

The use of FCIL, whether in payback period and ROROI given above seems reasonable, due
this is the capital that must be recovered by project revenue. Other alternatives also can be
used. For example, the total capital investment (FCI L + WC + Land) and the fixed capital
investment minus the salvage value (FCIL S) could be used replacing the FCIL in the above
equation.
Thus the value of rate of return on investment is equal to 5.393%

45

4.3.2. Discounted Cash Flows

Year
0
0
1
2
2
3
4
5
6
7
8
9
10
11
12
12

Cash Flow (discrete)

0.0
-0.39
-10.26
-6.63
-3.36
2.75
3.13
2.55
2.19
2.12
1.86
1.61
1.56
1.51
2.36
2.71
Table 15: Discounted Cash Flows

Cash Flow
Cumulative
0.0
-0.39
-10.65
-17.28
-20.64
-17.89
-14.75
-12.20
-10.01
-7.89
-6.03
-4.42
-2.86
-1.35
1.01
3.75

Parsh
ojec
t Li
(Y ear
s)
C
F lo
wfeDiag
r am

Discounted Payback Period

Figure 7 : Graph of Discounted Cash Flow Diagram vs Time

NPV

The above graph shows the discounted cash flow diagram versus life of the project. The
difference between the discounted and the non-discounted cash flow is the non-discounted
profitability does not consider the time value of money whereas the discounted profitability does
consider it. The criterion is that latter each of yearly cash flows is discounted back to time zero.
The discounted payback period (DPBP) is defined as the time required, after start up, to recover
the FCIL required for the project with all cash flows discounted back to zero. After calculation,
the DPBP of our project is 7.44 years.
The discounted cumulative cash position, also known as net present value or net present worth
can be calculated by using the following equation:

46

NPV NPW =Cumulativediscounted cash position at the end of the project

So, at the end of the project, after 12 years of project life, the cumulative cash position or the
NPV is the Ringgit Malaysia 4.09 million

Same as the cumulative cash ratio (CCR), the present value ratio (PVR) calculated must be
greater than unity to indicate the profitable project and vice versa. The PVR can be calculated
by:

PVR=

Present value of all positive cash flows

Present value of all negative cash flows

The ratio is then calculated to give the value of 1.18 which is greater than unity. This value
shows that the project that we built will deem profitable.
The discounted cash flow rate of return or DFCROR is defined as the interest rate at which all
the cash flow must be discounted in order for the NPV of the project to be equal to 0. The
equation is as follows:

DCFROR=Interest discount rate for which the net present valueof the project is equal zero
The DCFROR represent the highest after tax interest of discount rate at which the project can
just break even.
Take the NPV is equal to RM 4.09 million, the NPV for several discount rates were calculated
and the results are shown below:
Interest of Discount Rate (%)
NPV (RM million)
0
9.54
3
4.09
6
0.18
7
-0.87
9
-2.65
Table 16: Evaluating DFCROR
The value of the DFCROR is found at NPV is equal to 0. So, interpolating the value of the NPV
and the interest rate gives the value of DFCROR of 6.17%

47

48

4.4

Profitability Analysis
(R-COMd-

Cash Flow

dk)*(1-t)

(Non-

COMd

+dk

Investmen
Year
0
0
1
2
2

t
0.00
0.39
10.59
7.06
3.58

dk

FCIL-Sdk
17.66
17.66
17.66
17.66
17.66

3.5

Cumulative

Cumulative Cash

Cash Flow

Cash Flow

Flow (Non-

discounted)
0.00
(0.39)
(10.59)
(7.06)
(3.58)

(discounted)
0.00
(0.39)
(10.29)
(6.66)
(3.37)

(discounted)
0.00
(0.39)
(10.68)
(17.34)
(20.71)

discounted)
0.00
(0.39)
(10.99)
(18.05)
(21.63)

30.6

3
5.6

14.13

8
30.6

27.82

3.03

3.03

2.77

(17.94)

(18.60)

5
3.3

8.48

8
30.6

27.82

3.56

3.56

3.16

(14.78)

(15.04)

9
2.0

5.09

8
30.6

27.82

2.99

2.99

2.58

(12.19)

(12.05)

3
2.0

3.05

8
30.6

27.82

2.65

2.65

2.22

(9.97)

(9.40)

3
1.0

1.02

8
30.6

27.82

2.65

2.65

2.16

(7.81)

(6.74)

8
30.6

27.82

2.40

2.40

1.90

(5.92)

(4.34)

8
30.6

27.82

2.15

2.15

1.64

(4.27)

(2.19)

10

8
30.6

27.82

2.15

2.15

1.60

(2.68)

(0.05)

11

8
30.6

27.82

2.15

2.15

1.55

(1.13)

2.10

12
12

27.82

3.47

3.47
3.97

2.43
2.79

1.31
4.09

5.57
9.54

49

Table 17 : Profitability Analysis (Values in RM million)

50

The project is to be built in industrial land at Tanjung Malim, Perak. It is situated near the
state border of Selangor and Perak. It is chosen because the strategic location that is
away from residential area and due to its reasonable price. With the area of 43,562
square feet or 14 acres, the location is desirable with vast area and closer to other
industrial chemical plant, given the project will be built in the industrial area. Also the
transportation cost for product selling or material buying is low.

Location

Range Selling Price

Per ft

Perlis

RM10.00 - 15.00,US$3.20 - 4.80

Kedah

RM23.00,US$7.36

Annual
Assessment Rate
(% of Property Value)
0.15
8 - 12

Penang:
Island

RM60 - 65 ,US$19.20 - 20.80

10 - 13.5

Mainland

RM18,US$5.63

Perak

RM5.00 - 17.00,US$1.56 - 5.31

Selangor

RM8.50 70,US$2.72 - 22

8 - 13

Negeri Sembilan

RM6.00 - 25.00,US$1.92 - 8.00

8 - 13

Melaka

RM6.00 - 18.00,US$1.88 - 5.63

12 - 13.2

Johor

RM8.00 - 38.00,US$2.50 - 12.16

0.33 - 1.0

Pahang

RM3.00 - 11.00,US$0.94 - 3.44

7-9

Terengganu

RM2.00 - 60.00 US$0.64 - 19.20

5 - 10

Kelantan

RM9.00,US$2.88

5 - 12

RM28.00 - 30.00,US$8.96 - 9.60

9 - 15

10

Sabah:
- KKIP
- POIC

RM12.00,US$3.75
Table 18: Location of Land and Selling Price

*Source: State economic development corporations (SEDCs)

** Source: MIDF Property Berhad - www.midf.com.my & State Economic
Development Corporation (SEDCs)
*** Cost of land in the Kota Kinabalu Industrial Park (KKIP) & Palm Oil Industrial Cluster
(POIC)

51

Plant Location: Taman Bahtera,Tanjung Malim, Perak.

Area: 43562 m2 or 40 acres
Cost of Land: RM 392,058
Taxation Rate: 25% (Source taken from
http://www.tradingeconomics.com/malaysia/)
Interest Rate 3.25% (Source taken from
http://www.tradingeconomics.com/malaysia/)
Salvage Value: RM 1,765,786
Working Capital: RM 3,580,000
FCIL: RM 17,657,859.29
Revenue from Sales: RM 30,677,938.24
Raw Material Costs (CRW): RM 17,894,936.27
Utilities Costs (CUT): RM 1,570,791.195
Waste Treatment Costs (CWT): RM 0
Operating Labor Costs (COL): RM 252,000

5.0

PINCH ANALYSIS
Pinch analysis is a technique for designing a process to minimize the energy

consumption and to maximize the heat recovery. It also reduces the cost of the
production in terms of utility consumption. To do the pinch analysis, the minimum
52

approach temperature is assumed to be 10C. Thus the pinch analysis could be done
using the Heat Exchanger Network software included in the Analysis, Synthesis, and
Design of Chemical Processes text book, forth edition published by Pearson in its CDROM appendix. Below are listed the stream data table and a few figures in designing the
heat exchanger network.

Stream

mCp(kJ/s.K)

Tin(C)

Tout(C)

Q(kW)

2.4793

200

100

247.93

1.2638

96

30

83.41

1.1898

40.8

150

-129.93

1.2109

183

200

-20.59

Table 19: Stream Data

53

Using the stream data collected from the stream summary table, temperature interval
diagram is performed in Figure 14.

Figure 8 : Temperature Interval Diagram

54

The cascade diagram was performed.

Figure 9 : Cascade Diagram

Pinch Temperature:
Hot= 200C
Cold= 190C

From the cascade diagram, it was determined that the pinch temperature is at 190C
below and 200C above. The minimum number of heat exchanger is then determined in
Figure 15 and 16 below.
55

Figure 10: Minimum Number of Heat Exchanger above Pinch

Minimum number of heat exchanger = 1

Figure 11: Minimum Number of Heat Exchanger below Pinch

Minimum number of heat exchanger = 4

56

The Temperature versus Enthalpy diagram in Figure 17 is plotted to depict the pinch
location.

Figure 12: Pinch in Temperature-Enthalpy Diagram

It is then performed the Heat Exchanger Network for above and below pinch to allocate
the energy distribution as in Figure 18 and 19 below.

57

Figure 13: Above Pinch Heat Exchanger Network

58

Figure 14: Below Pinch Heat Exchanger Network

Minimum utilities, minimum number of exchanger (MUMNE) diagram is plotted based on

the data obtained in the heat exchanger network and is given in Figure 20 below.

Figure 15: MUMNE Diagram

From the MUMNE diagram, the calculation of energy consumption is able to be

calculated and is compared to the energy consumption before the heat integration was
performed. The calculation is given below and the PFD after heat integration is as in
Figure 21 below.

59

Before heat integration,

Total heat consume, Q

= (206.1683 + 253.9399 + 20.5568 + 981.4878)kW

= 1462.1528 kW

After performing heat integration,

Total heat consume, Q

= (8.48 + 129.93 + 109.52 + 83.41 + 12.1)kW

= 343.44 kW

Percentage energy recover

= 76.51%

60

Figure 16 : PFD after Heat Integration

6.0

ENVIRONMENTAL CONSIDERATION
The impact of the production of formalin in a plant to the environment is one of the most

important considerations in the design of chemical processes. As the process engineer that
designing the plant, the environment consideration should be on the highest priority because it
is included in considerations of safety and economic issue on plant design. A good environment
consideration or waste treatment will reduce a cost on plant design and also reduce the injuries
or any hazardous incident on the plant that also match on the one of the Engineering Codes Of
Ethics engineers shall hold paramount the safety, health and welfare of the public in the
performance of their duties. The effect of a process can have on the environment is usually
61

through the materials that come out of the process. There are three types of waste categories
which is waste by gas, waste by liquid and waste by solids. To overcome these wastes, there
are many solutions with different ways of treatment according to the phase of the waste existed.
As the existed waste is in gas phase, it has the potential to pollute the air by its concentration to
the air. As the existed waste is in liquid form, it may pollute the water and for solid form of waste,
it will pollute the landscape.
The production of formalin in a plant will generate waste that caused pollution to the
environment or more worst to the surrounding including indoor plant environment.Formalin is a
37% aqueous (water) solution of formaldehyde, a pungent gas, with the chemical formula
HCHO, used as an antiseptic, disinfectant and others. The waste produces by formalin
production in this plant design was observed by process flow diagram to be in vapour phase
with mixture of oxygen, nitrogen, hydrogen, methanol, water and formaldehyde.These
substances then are subjected to off-gas stream after it is separated by absorber unit in a plant.
These substances then are treated as a waste.
These wastes are existed as a vapor, thus it has the potential to pollute the air if it is not treated
well. Since it contains methanol and formaldehyde that are categories as the toxic substance
(formaldehyde) and reactive substance (methanol) under hazardous material under Schedule 2,
it must be channeled to the right way of treatment.

6.1

Methanol

Its a light, volatile, colorless, clear and flammable liquid. It has a distinctive sweetish smell and
close to alcohol in odor and colorlessness. Methanol is very toxic to humans if ingested.
Permanent blindness is caused if as little as 10 mL of methanol is received and 30 mL could
cause death. Even slight contact with the skin causes irritation. Methanol has an explosive
nature in its vapor form when in contact with heat of fires.

Flash point
Auto ignition temperature
Explosive limits

11-12 oC
385 oC
36%
62

Lower Explosion Limit

Upper Explosion Limit

6.2

6%
36%
Table 20 : Methanol properties

Formalin (Formaldehyde 37 wt% solution)

This material is a highly toxic material that the ingestion of 30 ml is reported to cause fatal
accidents to adult victims. Formaldehyde ranges from being toxic, allergenic, and carcinogenic.
The occupational exposure to formaldehyde has side effects that are dependent upon the
composition and the phase of the material. These side effects range from headaches, watery
eyes, sore throat, difficulty in breathing, poisoning and in some extreme cases cancerous.
Formaldehyde is flammable in the presence of sparks or open flames.

Flash point
Auto ignition temperature
Explosive limits
Lower Explosion Limit
Upper Explosion Limit

64 oC
430 oC
36%
6%
36%
Table 21 : Formaldehyde properties

However, in this plant design the off-gas stream that contains methanol and formaldehyde that
seems to be the most dangerous waste is less. The highest percentage by waste in this formalin
production was nitrogen with 54.6%.
Waste
Methanol
Oxygen
Formaldehyde
Water
Hydrogen
Nitrogen

Fraction
0.01179
0.0126
0.00341
0.36952
0.05682
0.54588
Table 22 : Waste fraction

Mole flow
2.49
2.66
0.72
78.03
12.00
115.28

There so many ways to treat vapor waste such as flare system and relief system. In this design
plant, the waste is treated with flare and relief systems before it is discharge to the atmosphere.
Furthermore, Malaysian Government has introduced Environmental Quality Act 1947 in order to
save the environment. Under this regulation, the entire factory that produced waste must treated
the waste before discharge in order to reduce the pollution and environment quality. Other than
63

waste treatment, flare system provided a good part of plants safety system. Governmental laws
& regulations require the flare to be located a safe distance from the operating units and
populated areas.A typical flare system includes a flare (a long, narrow pipemounted vertically), a
steam ring mounted at the top of the flare (used to dispense hydrocarbon vapors), an ignition
source at the top of the flare, a fan mounted at the base of the flare (used for forced-draft
operation), a knockout drum with water seal, and a flare header.The flare stack range height
from 200 to 350 feet and far enough from surrounding and other equipments.

Waste

Flare
header

Warm
Flare

Knockou
t drum

Flare
Stack

Discharge to
air

Steam of

Figure 17 : Block flow diagram for gas waste treatment

The discharge waste from the absorber are collected in a closed piping system and sent to the
flare header and flare drum. Since this production is operated at above 0 oC, the warm flare
drum is used. The flare header branches throughout the plant and terminates in a sloped line
leading to the flare knockout drum. The knockout drum is a carbon steel vessel that contains a
steam coil to vaporize light materials and to warm up heavy materials so they can be pumped to
recovery. The pump can be automated to control level but will automatically shut down on low
level in the drum. Low and high alarms in the control room are normally provided. Then the
steam, air and nitrogen vapour is discharge to the atmosphere meanwhile the waste gas is burn
with minimum amount of smoke and must be high enough so that the surrounding area and its
equipment are not endangered by flame.

64

65

7.0

PLANT LAYOUT

Site Location
Proposed Site Location (Taman Bahtera)
The most important steps in building a chemical plant is to decide and verify whether a
certain location is suitable location to build a chemical plant. In this project, we need to produce
formalin in a large scale which is about 10 k tone per year. Based on the calculations done in
economic analysis, the production of formalin cost about RM 3677938.24. A strategic plant is
needed as it is the main contribution to either success or the failure of a chemical plant. The site
selection is very important because it will ensure that the cost of the final product will be a
suitable value. Final site selection choice should be based on the important criteria and factors
listed below:

a. Reasonable Land Price

Reasonable means that we are having an affordable land price. In Taman

Bahtera,Selangor the price and is RM9.00 per square feet. Compare from other land,
Taman Bahtera, Selangor have among the cheapest price in Selangor. This proposed
area is about 14 acres, even though the chemical plant did not need such great area at
the beginning, the price RM 9.00 psf is cheap for 14 acres compared to other industrial
area in Selangor which the remaining unused area can be used for future expand of the
chemical plant. The geographical factor should also be examined such as the land
condition is almost flat and have a good drainage system so that the cost of building the
plant does not strike up.
b. Strategic Location

Strategic location means that the purposed chemical plant is near to road system where
the raw material can be easily be transported. This will decrease the cost of
transportation for delivering the raw material. In Taman Bahtera, Selangor, it is near to
the PLUS North-South Express, which made the transportations of raw materials or
product will be easier. Other that than, the nearest town to Taman Bahtera is Tangjong

66

Malim where it is a well-known industrial area. The nearest residential area located at
Taman Bahtera is Kampung Bilal where future employers can live there and the distance
between the location and the residential area is in a safe distance where any plant faulty
will not affect the residential area.
c. Transport Facilities
The transport facilities means that the facilities that are needed in getting the material or
to sell the product. In Taman Bahtera, the PLUS North-South Express is the nearest
express way for delivering raw materials or products. This land property is about 3 KM
from the Tanjong Malim North-South Express exit. The North-South Express is the main
express way in Malaysia where it connects Perlis to Johor. Thus, where ever the
destination of the product to or the raw materials from, the facilities to transports them is
gratify. The Taman Bahtera are also place only about 60 KM from the capital city of
Malaysia which is Kuala Lumpur.

d. Utilities
Utilities means that the proposed chemical plant side have services such as electricity,
gas or water in that proposed area. In Taman Bahtera, the location have such utilites
since Tangjong Malim is an industrial area. Company such as Proton BHD are located in
Tangjong Malim. The proposed site is near to the power plant for electricity support due
to high demand of power to run a chemical plant. Other utilities such as water are easily
obtained at the location.

7.1

Plant Site Suggested

The plant location is being compared with other suitable location. The location was

selected based on several criterions. For example the criterions are utilities, transportation and
cost of land. Once again the screening and scoring method was used to narrow down the

67

choices of locations. To evaluate the location, first the screening process was done. The
selection of the process is tabulated in screening table as below:

Criterions
Gambang,

Bangi,

Taman

Pahang

Selangor

Bahtera,

Price (per square feet)

Selangor
+

Location (from Kuala Lumpur)

Transport Facilities

Utilities

Total score

Rank

Table 23 : Screening data

As the process of screening done, further investigation was done by the process of scoring. This
critical analysis was performed to ensure that the best location was been selected. The scoring
data was tabulated in a table as shown below:

68

Criterions

(2). Bangi, Selangor

(3). Taman Bahtera,

Price (per square feet)

Selangor
5

Location (from Kuala

Lumpur)
Transport facilities

Utilities

Total score

16

17

Rank of scoring

Table 24 : Scoring data

By referring to the scoring data above, the location chosen was Taman Bahtera, Selangor. This
is because Taman Bahtera have a cheaper price compared to Bangi which is RM 9 psf for
69

Taman Bahtera while RM 35 psf for Bangi. For the other criterions such as location, transport
facilities and utilities both location share the same score but in the end, we noticed that Taman
Bahtera, Selangor have a higher total score than Bangi, Selangor.

Taman Bahtera, Selangor

70

Selection Criteria
Location
Transport
Energy Sources

Taman Bahtera, Selangor

60 KM from Kuala Lumpur
PLUS North-South Express
Syarikat Bekalan Air Selangor Sdn Bhd
(SYABAS)

Raw Material Supply

Tenaga Nasional Berhad (TNB)

KLH Chemical Sdn Bhd
Global Trading Group
CS Methyl Sdn Bhd

Nearest Residential Area

Nearest Town
Land Price

Googad Gat Sdn Bhd

Kampung Bilal
Tangjong Malim
RM 9.00 (p.s.f)

Table 25 : Suggested Plant Site

71

7.2

Map of Site Location

Taman Bahtera, Selangor

Figure 18 : Google Map image of Site location

Location of Plant

72

Figure 19: Location of Plant

7.3

Site Layout

This site layout is constructed based on few factors including cost and the layout can be seen
as above. The process units and ancillary building should be laid out to give the most
economical flow of materials and personnel around the site. (Ray Sinnot, 2009)

73

Cante
en

Figure 20 : Site Layout

Safe Zone
Intermediate Zone
Danger Zone

From the layout above, upon entering the plant from the front, we can see the loading
and unloading bay at the right side. The waste water treatment plant located at the left side of
the plant. The road designed to be big as to have space for transportation. Heading straight

74

from the loading and unloading bay will be the space for unloading the raw material. Raw
material will be pumped into the tank farm for process inside the plant.
The canteen is located in the same building as the administration office as the workers
need to come to the office to register at the office. The parking lot of the plant is located outside
the plant as it the safety precaution to avoid any unwanted incidents. The administrations office,
unloading bay, waste water treatment plant and canteen is considered as a safe zone.
As we go along the main road, we can see the processing plant room on the right side
and opposite it is the preparation plant room. The distance between these two rooms are remain
close as it will ease the works to go back and forth to do their routine job. This will save the time
and increase the efficiencies of working hours to maintain the production of formalin. The
preparation plant room and the processing plant room is a considered as a danger zoom
because most the plants equipment are located here. In the danger zone, employers need to
wear their PPE (personal protective equipment) before entering the danger zone.
Behind the preparation plant room is located the tank farm. Tank farm is a place where
the facility keep or storage for the product that have been produce by the plant which is
formalin. The area of the tank farm is large enough as it able to store greater amount of
formalin. The tank farm is considered as an intermediate zone as employers still need to gear
up their PPE.
The plant layout is the simplest plant layout which can help in improving the efficiencies
to produce the formalin. All the utilities of the plant is located around the chemical plant. This to
ensure that the plant is supplied with sufficient energy sources to maintain the plant operation to
produce formalin.

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7.4

Plant Layout

Figure 21: Plant Layout

In the production of formaldehyde there are many types of equipment involved. Based
on process flow diagram PFD the equipment is already arranged followed the every steps
involving in the production. From the main plant layout based on grade mounted of plant layout,
the equipment that have in the process are 1 pump P-101, 4 heat exchangers, 1 compressor
house ,1 absorption tower, 1 conversion reactor and 1 distillation column.
The pump rack is located between block A and block B which is the middle of the main
plant design layout. All the piping is located on the middle as well. Several factor is might taking
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into consideration which are cost of equipment, cost construction, process requirement,
operational and maintenance, future expansion and modular construction.
At plant layout of the actual site, the 3D layout is established. As refer to the figure
below, the 3D block diagram of plant layout is shown. The plant layout consists of processing
plant room which is located on the bottom left, preparation plant room on the bottom-middle and
on very left, the tank farm is located. For a green building, it is mainly the green zone which
consists of administration office, loading and unloading bay, and lastly waste water treatment.

Figure 22 : 3D Plant Layout

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8.0

SUMMARY & CONCLUSION

The introduction gives a brief history of formalin whish is an accidental production by

Alexander Mikhailovich Butlerov in 1859 and subsequent discovery by A. W. Hofmann in 1868,
formaldehyde has become a major industrial product. Hofmann passed a mixture of methanol
and air over a heated platinum spiral and then identified formaldehyde as the product. This
method lead to the major way in which formaldehyde is manufactured today, the oxidation of
methanol with air using a metal catalyst.
In the process description it is describing the formalin production process as the
oxidation of methanol with air using a silver catalyst in the reactor which includes a recycle
stream after the distillation column to further reduce the cost of reactant purchase. It also gives
the step by step walkthrough the process involved in the entire processing plant and how the
equipments are used in the process.
The design of the equipments which is the application of engineering heuristics had
been calculated and compared to the actual result to acknowledge the percentage error of the
process equipments based on the experience of professionals. This design of equipment needs
to be measured first before building a plant to check either two of the criteria pass for building of
plant to prevent error or accident from occurring after plant had start operating. The equipment
design had a low percentage error and is concluded to be operational.
Economical analysis is conducted to evaluate the estimation of capital cost and
manufacturing cost, engineering economic analysis (cash flow and break-even point) and
profitability analysis. Through this evaluation, the results will show either this plant will give profit
or loss and is the key in deciding whether to continue the project or not.
The fifth analysis is pinch analysis that had been done to do heat integration in order to
minimize power used for cooling or heating inside the plant. It also reduces the cost of the
production in terms of utility consumption. To do the pinch analysis, the minimum approach
temperature is assumed to be 10C. Thus the pinch analysis could be done using the Heat
Exchanger Network software included in the Analysis, Synthesis, and Design of Chemical
Processes text book, forth edition published by Pearson in its CD-ROM appendix.
The environmental consideration part should be on the highest priority because it is
included in considerations of safety and economic issue on plant design. A good environment

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consideration or waste treatment will reduce a cost on plant design and also reduce the injuries
or any hazardous incident on the plant that also match on the one of the Engineering Codes Of
Ethics engineers shall hold paramount the safety, health and welfare of the public in the
performance of their duties
Finally the plant layout part, site location for plant is specified and the cost of land area is
estimated. In Taman Bahtera,Selangor the price and is RM9.00 per square feet. This location
had been specified by considering the land price, strategic, transport facility and utility. Site
layout had been constructed so that it can give most economical flow of material and personnel
around the site. Finally, plant layout had been constructed and is based on several factors that
are economic considerations, process requirements, convenience of the operation and
maintenance, safety, future expansion and modular construction.
In conclusion, this report shows that many tasks needs to be done in planning to build a
plant and is different based on the process involve. Our report on formalin production plant
shows that huge revenue of RM 30,677,938.24 can be made and thus it is considered that the
plant should be constructed.

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