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Getting Started with Relative Economics

in Aspen HYSYS
A Brief Tutorial (and supplement to training and online documentation)
By Dan McCarthy, Product Manager; Ron Beck, Marketing Manager;
and Glenn Dissinger, Product Director, Aspen Technology, Inc

2011 Aspen Technology, Inc. AspenTech, aspenONE, the Aspen leaf logo, OPTIMIZE, and the 7 Best Practices of Engineering Excellence are trademarks of Aspen Technology, Inc. All rights
reserved. All other trademarks are property of their respective owners.
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About AspenTech
AspenTech is a leading supplier of software that optimizes process manufacturingfor energy, chemicals,
pharmaceuticals, engineering and construction, and other industries that manufacture and produce
products from a chemical process. With integrated aspenONE solutions, process manufacturers can
implement best practices for optimizing their engineering, manufacturing, and supply chain operations.
As a result, AspenTech customers are better able to increase capacity, improve margins, reduce costs,
and become more energy efficient. To see how the worlds leading process manufacturers rely on
AspenTech to achieve their operational excellence goals, visit www.aspentech.com.

Getting Started with Relative Economics in Aspen HYSYS

1. Introduction
The new integrated economics workflow provided by AspenTech enables process modelers to incorporate rigorous
relative costs in their process modeling studies. This provides the business benefit of better process designs that take into
account capital and operating costs together with technical and process parameters.
Integrated economics brings the power of AspenTechs rigorous economic modeling products (the ICARUS family) to the
process model (Aspen HYSYS or Aspen Plus). This enables the process designer to rapidly assess the relative costs of a
proposed process design, thereby providing the means to screen alternatives based on a balance of technical, safety,
environmental and economic factors.
This document serves as a simple getting started guide, taking you through the most common progression of how we
would envision the process designer to use this integrated functionality. This guide is not meant to be used on a standalone basis. We would recommend that a range of other resources be called upon to give the new user a comprehensive
view of how to use this capability. This may include:
Online documentation which can be accessed through the Aspen HYSYS and Aspen Process Economic Analyzer
software user screens.
AspenTech support website (support.aspentech.com), which contains a wide range of knowledge base items, provides
answers to frequently asked questions.
AspenTech courseware available in in-person and on-line versions, which provide formal training on process modeling
and economic evaluation.
AspenTech business consultants.
Pre-recorded tutorials and webinars that provide another view of the information contained in this document (go to
http://www.aspentech.com/solutions/industry_solutions/epc/integrated-economics.aspx for many of these
resources).
This document covers Aspen HYSYS. This guide assumes that the user has Aspen HYSYS V7.3 and Aspen Process
Economic Analyzer V7.3 installed.
A companion document to this one, providing similar information for users of Aspen Plus, is also available.
(http://www.aspentech.com/uploadedFiles/Forms/Events/NALA/int_econ_tutorial.pdf)

2. The Work Flow


The integrated economics solution is flexible in terms of the work flows that it supports. The work flow that we follow in
this guide is as follows:
STEP ONE: incorporate operating costs in the Aspen HYSYS model.
STEP TWO: converge the model
STEP THREE: activate relative costing
STEP FOUR: select cost basis

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Getting Started with Relative Economics in Aspen HYSYS

STEP FIVE: map unit operation models to equipment


STEP SIX: sizing equipment
STEP SEVEN: evaluate economics and report
This entire workflow can be performed from WITHIN the familiar Aspen HYSYS user interface.

3. Definition of Operating Cost Parameters within Aspen HYSYS


The current release of Aspen HYSYS (V7 and newer) provides the means to define utility (energy), feed and product
streams and costs.
Feedstock and product stream pricing parameters are only needed if an ROI for the plant is desired. For estimating and
comparing capital and operating costs, the process stream costs are not required.
Utility cost definition is RECOMMENDED but not a required step. If utility costs are not defined as described below, the
economics engine will assign the utilities and associated prices for each energy stream using built-in values, which is not
as accurate as specifying them if known, but is pretty good at the conceptual design level. Each energy stream in the
HYSYS model should be associated with a process utility. The costs of the process utilities should be specified in the
Process Utility Manager or HYSYS Workbook. (see Figure 1 for an example of assigning a utility).

Figure 1. Assigning a utility to an Aspen HYSYS energy stream

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Getting Started with Relative Economics in Aspen HYSYS

To enter an individual streams cost factors, doubleclick on any screen and scroll down the resulting
navigation pane to cost parameters. At that point,
you may enter data for the price and flow basis of
that stream (see Figure 2).
In many cases, it is more efficient to enter the cost
parameters for a group of streams at once. The
stream and utility costs can be conveniently entered,
reviewed and modified using the workbook within
Aspen HYSYS. To do that, the needed parameters
need to be set up in the workbook view (this takes
only a few seconds.) With the workbook open (this is
a necessary first step to see the pull-down menu),
access the workbook setup (see Figure 3).
Next enter the needed cost parameters for the feed,
product and utility streams (see Figure 4).
Figure 2: Assigning costs to an Aspen HYSYS stream

Figure 3: Aspen HYSYS Workbook setup

Figure 4: Add cost parameters to the stream workbook views

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Getting Started with Relative Economics in Aspen HYSYS

Now, the workbook can be used to review and enter/edit cost factors quickly for all the feed, product and utility streams.
(see Figure 5).
In most cases, a design case will involve multiple utility sources and multiple unit operations. The workbook (see Figure 5)
is a convenient way to quickly review the streams and utilities selected and to review and modify utility selections and
cost parameters.

Figure 5: Feed and Product Stream Cost Factor Assignment using Workbook View

Important Note: Once you have specified utility selections and costs and feed and product pricing within Aspen
HYSYS, the resulting operating cost information produced by the Aspen HYSYS model run automatically updates the
economics module in the subsequent steps in the integrated workflow.

2011 Aspen Technology, Inc. AspenTech, aspenONE, the Aspen leaf logo, OPTIMIZE, and the 7 Best Practices of Engineering Excellence are trademarks of Aspen Technology, Inc. All rights
reserved. All other trademarks are property of their respective owners.
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Getting Started with Relative Economics in Aspen HYSYS

4. The Costing Toolbar and Costing Menu


Integrated economics is accessed two ways in Aspen
HYSYS. First, there is a costing toolbar which is
used to perform integrated cost evaluation (see
Figure 6). The same functionality may also be
accessed from the costing pull-down menu which
appears as a sub pulldown in the tools menu (see
Figure 7).

Figure 6: Costing Toolbar in Aspen HYSYS

Each step in the integrated economic evaluation is


initiated through the toolbar or the menu. First you
activate the costing engine, next you map unit
operations to equipment and perform sizing, finally
you perform the evaluation and review the results.
The results can be easily exported to MS Excel or
reviewed within Aspen HYSYS.
Depending on the level of control that the process
engineer would like to maintain over the economic
evaluation, steps can be individually performed or
can be skipped in favor of a quick and automatic
evaluation based on default-assigned mappings and
sizing algorithms.
Figure 8 enumerates the work flow actions that each
button in the toolbar governs. These will each be
explained during the course of this tutorial.

Figure 7: Pull-down Economics Sub-menu in Aspen HYSYS

5. Best Practice: Use a Converged Aspen HYSYS Model


The Aspen HYSYS solver is always working in the
background to attempt to solve the flow sheet as it is
being constructed. Consequently, whatever process
information exists when the economics is activated
and mapped will be used in analyzing relative
economics. It is a best-practice to work within HYSYS
to always complete modeling to convergence prior to
proceeding to the integrated economics step of the
workflow. You will NOT get any reminder to solve to a
converged model first before initiating the economics
workflow. This is because there are some valid
engineering reasons why you may wish to define the
relative economics without having a converged model.

Figure 8: Costing Toolbar actions in Aspen HYSYS

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Getting Started with Relative Economics in Aspen HYSYS

6. Activate Costing Module


Integrated economics functions by linking Aspen
HYSYS with Aspen Process Economic Analyzer. The
APEA license key is checked out when you activate
the integrated economics feature. The APEA license
key is released when you de-activate integrated
economics or exit Aspen HYSYS (see Figure 9).

Figure 9: Costing Activation Button

Note: The activation enables the other buttons/functions within economics (load simulation data, map, size, evaluate,
equipment summary, deactivate

7. Select a Standard Basis File or Custom Template


The economics module functions through use of
what estimators call standard basis files. These
provide company-standardized, projectstandardized, or default cost basis information
from which the entire costing is built. For example,
Gulf Coast Standard is the most commonly used
generic process plant standard basis for
developing estimates.
Beyond these standard basis files, the mappings,
sizing, and other costing decisions described in
the ensuing sections of this guide, can all be
captured in re-usable templates to save time and
improve consistency in the way that an
organization applies this relative economics
workflow.

Figure 10: Accessing and Using Templates in the Costing Workflow

Templates are useful at an organizational level, a project level, a location level, and a technology level to ensure that best
practices are applied consistently by all process engineers in an organization.
The process of creating templates is beyond the scope of this Getting Started guide. What we do show here is how to
access and use templates in the workflow, assuming that they have been created, for instance, by the estimating group
within your organization.
If your estimating group has established company-specific guidelines or more involved templates, they can make these
available to your group as pull-down options within the integrated economics workflow.
Standard Basis also appears in the
workflow as template choices.

Figure 11: Create Costing Scenario File


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Getting Started with Relative Economics in Aspen HYSYS

After activating the costing module, by pushing the cost activation button, a Costing Options window will appear (see
Figure 10).
Next, click on the Browse button to the right of the templates field, and you will be presented with the available list of
templates. These may be simply the standard basis provided with the system or specific templates provided by your
organization. In the example shown in Figure 10, the available templates are standard, representing the different out-ofthe-box geographic cost basis (US Gulf Coast, Europe, Middle East, UK, Japan) and units of measure (metric or
Imperial).
After you make that selection, provide descriptors for the Scenario you are analyzing and a text Description.
Also on this screen, select the project investment options that will govern the calculation of project ROI and profitability,
namely design Operating Life of Plant, duration of Plant Startup, onset date for Basic Engineering, and the design
operating hours per year (also shown in Figure 10).
After making these selections, a costing file will be created (see Figure 11).

8. Load Simulation Data


The simulation run data must be loaded from Aspen HYSYS into the costing engine.
When you click on the load simulation data button
this task will happen in the background. This transfers key
process information needed for the economics software to define the process flow schema and perform mapping and
sizing operations.

9. Economic Evaluation Status Indicators


When the simulation data loading task, and other
aspects of the economics work flow, are being
performed, status messages are presented in the
status window in the lower left corner of the Aspen
HYSYS screen. During the workflow, you may be
prompted to wait for the background model
calculations to complete before proceeding (see
Figure 12 for a few examples of these messages).

Figure 12: Workflow Status Indicator

10. Map Unit Operations to Equipment Models


A key step in integrated economics is mapping of unit operations models from the simulation to equipment models in
Aspen Process Economic Analyzer.
The economic work flow is flexible and has both the ability to automatically establish default mappings, representing
best-engineering judgment contained within the software models, as well as the capability to over-ride these mappings
and substitute your own mappings, based on your engineering decisions as to which equipment models you select at this
stage of the design process.

2011 Aspen Technology, Inc. AspenTech, aspenONE, the Aspen leaf logo, OPTIMIZE, and the 7 Best Practices of Engineering Excellence are trademarks of Aspen Technology, Inc. All rights
reserved. All other trademarks are property of their respective owners.
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Getting Started with Relative Economics in Aspen HYSYS

Figure 13 summarizes conceptually


the operation which is performed
during this mapping workflow. Each
unit operation that has been defined
during the process modeling is
mapped to an item of equipment, or
a group of equipment items, that
most feasibly represent that unit
operation. The sample depicted in
the example figure is a distillation
Figure 13: Unit Operation to Equipment Model Mapping Scenario
column unit operation in Aspen
HYSYS), which maps into the economics
software as a collection of equipment models, including a packed column, condenser, exchanger pumps, a reboiler and
other complementary equipment items.
In each case, there is a default mapping, but there are also other mappings that the engineer can select instead.
Mapping workflow is invoked by the

mapping button.

This brings up a map dialog box (Figure 14).


Here are a few key points to remember when executing the mapping workflow:

Figure 14: Using Default or else already used Mappings

(1)

Select map all items, the first time you use relative economic evaluation. The Map selected items option is for
changing/updating mappings when you have changed part of an established process design.

(2) When you are first using economics for a model run you should always select Default AND simulator data. If you
dont select this option, the sizing performed in the simulation will not be carried across to the economics software!

2011 Aspen Technology, Inc. AspenTech, aspenONE, the Aspen leaf logo, OPTIMIZE, and the 7 Best Practices of Engineering Excellence are trademarks of Aspen Technology, Inc. All rights
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Getting Started with Relative Economics in Aspen HYSYS

(3) If you change the operating conditions in a


model or add equipment to a model, use the
Last Mapping option The economic
evaluation case remembers the mappings
already established for a given simulation
model.
If you have made some custom mapping
selections during a previous simulation run,
and have modified some process parameters,
your prior selections will persist in the
software, and you can choose last mapping
to re-use those already selected mappings
(see Figure 14, right-side).

Figure 15: Selecting Your Own Mappings

(4) If you delete unit operation models from your


HYSYS case, you may need to remove mapped
equipment items. Use the Physical
Component Mapping Preview form to delete
any unwanted equipment.
(5) Even if you are planning to change some
mappings, select, default and simulator data.
Then a second dialog box will come up (see
Figure 15) which will allow you to change
mappings.
(5) Click on size Icarus project components, to
activate the economics sizing algorithms.

Figure 16: Project Component Map Preview Dialog Box

(6) Click OK.


(7) The project components map preview dialog
box will appear (see Figure 16).
(8) To change mappings (away from the default
mapping assigned by the system) follow the
following steps:
All items which have been mapped appear
in the simulator item window with an
asterisk in front of their designation.
Select the item in the simulator item
window (see Figure 16).
Delete the current mapping (select delete
one mapping button)
Figure 17: Icarus Project Component Selection Dialog Box

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Getting Started with Relative Economics in Aspen HYSYS

Click on new mapping button.


Icarus Project Component selection dialog box will come up (see Figure 19).
Navigate the tree of available equipment models/components.
Select a component (s).
A mapping, of course, can be to more than one component (i.e. to a column and pumps and so forth).
Click OK to complete the mapping of each component.
Repeat for each item mapped to a given unit operation.

11. Sizing Activity


Clicking on the sizing button initiates the
sizing evaluation. The system performs
the sizing with best available information.
Equipment sizes are determined from the
simulation data if they are available.
Missing data are estimated by the
system. You can also override estimate
sizes in the equipment grid.
To access the equipment sizing grid click
on the equipment grid button:
You can review the sizing and materials
of construction that were assigned during
the economic evaluation in the summary
grid. The default material of construction
for all equipment is Carbon Steel.
For example, in Figure 18, we can see the
materials of construction and geometry
for a heat exchanger. We can use pull
down menus to select other materials of
construction. The tube materials selection
pull-down menu is open in this example.

Figure 18: Equipment Summary Grid enables process designer to review and change sizing
and materials of construction

If you have better engineering information or assumptions available, or have company-specific sizing algorithms to apply,
these can be entered at this point.
Note: At this juncture, you may also interface to custom sizing programs that your company may be using that have been
developed in MS Excel or equivalent. Covering that topic is an advanced topic beyond the scope of this introductory tutorial.

The equipment grid has one tab sheet for each type of equipment. The columns represent individual equipment items.
The rows contain the key variables for that equipment. After changing the data you should re-size and re-evaluate the
costing. It is important to re-size the equipment first because equipment sizes may depend on the physical properties of
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Getting Started with Relative Economics in Aspen HYSYS

the materials of construction. For example, the area of an exchanger depends on the thermal conductivity of the tubing.
Re-sizing the equipment ensures that the estimated costs are based on the changes in equipment size.

12. Materials of Construction


Capital costs are very sensitive to the materials of construction selected. Process engineers often have a good idea of the
material of construction that may be required due to the chemistry of a particular process that is being selected. The
process modeler can make that change at this point if he has that information (see Figure 19).

Note: After you change sizing or


materials of construction data, re-run
the sizing and evaluation steps to
update the economic results.

Figure 19: Changing Material of Construction from Carbon Steel to Inconel

13. Relative Cost Evaluation


Click on the evaluate button

for the economic evaluation to be calculated.

14. Reporting
The results of the economic evaluation can be reviewed and
manipulated in several ways.
Summary and detailed economics can be reviewed by clicking on the
equipment grid button.
This will give you access to a majority of the economic information that
you will need to rapidly review the economic feasibility of a modeling
scenario and to compare process alternatives.
The report summary tab displays net results as displayed as shown in
Figure 20.
Further details of the equipment costs can be reviewed in the
equipment summary table (see Figure 21). The individual tables by
equipment type contain information about the design of each item of

Figure 20: Summary report

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Getting Started with Relative Economics in Aspen HYSYS

equipment. The equipment summaries are


presented in a grid form. The Equipment Grid
can be copied-and-pasted into external MS
Excel spreadsheets for further manipulation.
For a more formal relative economics report,
you may then click on the report button.
This button creates a relative costing report in
MS Excel format (see Figure 22). This is a
complete project economics report. If, for
example, you have put in feedstock pricing at
the initial stages, you can get an initial look at
a project ROI within this report. The MS Excel
reports make it very easy to compare relative
costs as the process design evolves.
To understand the information available in this
report, run through a scenario, produce a
costing report, and explore the contents of the
report.

Figure 21: Equipment summary displays bare equipment costs and indicates errors
identified during the evaluation.

Figure 22: Relative economics report for your process scenario

15. Managing and Transferring Cost Files


The costing scenario created by Integrated Economics can be opened directly by Aspen Process Economic Analyzer or by
Aspen Capital Cost Estimator for further development.
When you run the relative economics, Aspen HYSYS stores the associated economics files in a new working folder, which
you will find as a sub-folder within your current HYSYS working folder. The resulting APEA files can be handed over to the
estimating department and can be directly opened in the APEA and ACCE estimating software products from AspenTech,
for further development or fine tuning of the cost estimate that has been preliminarily produced during this conceptual
design workflow.

2011 Aspen Technology, Inc. AspenTech, aspenONE, the Aspen leaf logo, OPTIMIZE, and the 7 Best Practices of Engineering Excellence are trademarks of Aspen Technology, Inc. All rights
reserved. All other trademarks are property of their respective owners.
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Getting Started with Relative Economics in Aspen HYSYS

16. Completion of Your Integrated Economics Session


At the completion of your integrated economics session, you can deactivate and release the APEA economics software
license by clicking the depressed activation button to deactivate it.

17. Further Resources


For further information on this workflow, or any of the individual products or elements covered briefly in this written
tutorial please consult:

Public website:
The following web page provides links to a number of useful resources on integrated economics http://www.aspentech.com/solutions/industry_solutions/epc/integrated-economics.aspx

Support website:
The support website provides an extensive and growing knowledge base on simulation, economics and the integrated website.
The following knowledge base article provides a getting-started location:
http://support.aspentech.com/webteamasp/KB.asp?ID=130806

Recorded tutorials are available at:


Brief Tutorial on relative costing during conceptual design with Aspen HYSYS
Brief Tutorial on relative costing during conceptual design with Aspen Plus
Technical webinars on integrated economics can be viewed on-demand at
DSM Presents how to achieve better process designs with integrated economics
Step-by-step Technical Webinar: Getting started with Integrated Economics with Aspen Plus
Step-by-step Technical Webinar: Getting started with Integrated Economics with HYSYS
Or email us at AspenEconomicEvaluation@aspentech.com to get your specific questions answered.

2011 Aspen Technology, Inc. AspenTech, aspenONE, the Aspen leaf logo, OPTIMIZE, and the 7 Best Practices of Engineering Excellence are trademarks of Aspen Technology, Inc. All rights
reserved. All other trademarks are property of their respective owners.
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phone: +97317503000
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