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12/1/2016

CostEstimation|ChemicalEngineeringProjects

Chemical Engineering Projects

Design and Calculation Of Chemical Engineering Projects

Cost Estimation

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Cost Estimation
Chemical Engineering projects

Before the plant to be operated, specied money must be supplied to purchase and install the
equipment. The capital needed to supply the necessary plant facilities is called xed capital investment
while that for the operation of the plant is called the working principal and sum of two capitals is called total
capital investment.
An acceptable plant design must present a process that is capable of operating under conditions which will
yield a prot. Since, Net prot =total income all expenses
It is essential that chemical engineer be aware of the many dierent types of cost involved in manufacturing
processes. Capital must be allocated for direct plant expenses; such as those for raw materials, labor, and
equipment. Besides direct expenses, many other indirect expenses are incurred, and these must be
included if a complete analysis of the total cost is to be obtained. Some examples of these indirect
expenses are administrative salaries, product distribution costs and cost for interplant communication.
ESTIMATION OF EQUIPMENT COST
Cost index used for 1999 = 109
Cost index used for 2009 = 121
11.1. CSTR-1:
Purchased equipment cost = Ce = CSn
Cost constant = C = \$ 31000
Area of column = S = 5m3
Index = n = 0.40
n
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CostEstimation|ChemicalEngineeringProjects

Ce = CSn
Ce = CS0.40
= 31000 (5)0.40
Ce = \$ 59013.27
Ce (2009) = 59013.27 x (121/109) = \$ 10005
11.2. Distillation column D-1:
Number of plates = 5
Reux ratio = 2
Bare vessel cost = \$ 9000
Diameter of column = 0.6 m
Height of column =10 m
Material: Carbon steel
Material factor = 1.0
Pressure factor = 1.4 at 26.67 bar
Vessel cost = 9000 x 1.4 x 1.0 = \$ 12600
Cost in 2009 = 12600 x (121/109) = \$ 13987
Sieve plate: one plate cost = \$ 310
Material factor = 1.0
Total cost of one plates = \$ 1550
Total cost of ve plates (2009) = \$1550 x (121/109) = \$ 1720
Total column cost = 12600 + 1550 = \$ 14150
Total column cost (2009) = 14150 x (121/109) = \$ 15707
Condenser:
2
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CostEstimation|ChemicalEngineeringProjects

Area = A = 2.8737 m2
Pressure factor = 1.1
Type factor = 0.8
Bare cost = \$ 1050
Cost of equipment = 1050 x 1.1 x 0.8 = \$ 924
Cost of equipment (2009) = 1050 x (121/109) = \$ 1026
Reboiler:
Required area = A = 0.774 m2
Pressure factor = 1.1
Type factor = 0.85
Bare cost = \$ 428.57
Cost of equipment = 428 x 1.1 x 0.85 = \$ 400.7
Cost of equipment (2009) = 400.7 x (121/109) = \$ 444
11.3. Distillation column D-2:
Number of plates = 6
Reux ratio = 2
Diameter of column = 0.67 m
Height of column = 7 m
Bare vessel cost = \$ 9000
Material: Carbon steel
Material factor =1.0
Pressure factor = 1.4 at 26.67 bar
Vessel cost = 9000 x 1.4 x 1.0 = \$ 12600
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CostEstimation|ChemicalEngineeringProjects

Cost in 2009 = 12600 x (121/109) = \$ 13987

Sieve plate: Cost of one plate = \$ 310
Material factor = 1.0
Total cost of 12 plates = \$ 3720
Total cost of 12 plates (2009) = 1240 x (121/109) = \$ 4130
Total column cost = 12600 + 3720 = \$ 16320
Total column cost (2009) = 13840 x (121/109) = \$ 18116
Total plates costs = \$ 3720
Bare vessel cost = \$ 13987
Total vessel cost = \$ 15363
Condenser:
Area = A = 2.8737 m2
Pressure factor = 1.1
Type factor = 0.8
Bare cost = \$ 1050
Cost of equipment = 1050 x 1.1 x 0.8 = \$ 924
Cost of equipment (2009) = 1050 x (121/109) = \$ 1026
Reboiler:
Required area = A = 0.774 m2
Pressure factor = 1.1
Type factor = 0.85
Bare cost = \$ 428.57
Cost of equipment = 428 x 1.1 x 0.85 = \$ 400.7
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CostEstimation|ChemicalEngineeringProjects

Cost of equipment (2009) = 400.7 x (121/109) = \$ 444

11.4 Gravity separator X-1, X-2:
Number of units = 2
Equipment cost (2009) = \$ 2000
Total cost of two units = \$ 4000
11.5 Distillation column D-1:
Number of plates = 5
Reux ratio = 2
Bare vessel cost = \$ 9000
Diameter of column = 0.6 m
Height of column = 10 m
Material: Carbon steel
Material factor =1.0
Pressure factor = 1.4 at 26.67 bar
Vessel cost = 9000 x 1.4 x 1.0 = \$ 12600
Cost in 2009 = 12600 x (121/109) = \$ 13987
Sieve plate: Cost of one plate = \$ 310
Material factor = 1.0
Total cost of ve plates = \$ 1550
Total cost of ve plates (2009) = 1550 x (121/109) = \$ 1720
Total column cost = 12600 + 1550 = \$ 14150.
Total column cost (2009) = 14150 x (121/109) = \$ 15707
Condenser:
2
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CostEstimation|ChemicalEngineeringProjects

Area = A = 2.8737 m2
Pressure factor = 1.1
Type factor = 0.8
Bare cost = \$ 1050
Cost of equipment = 1050 x 1.1 x 0.8 = \$ 924
Cost of equipment (2009) = 1050 x (121/109) = \$ 1026
Reboiler:
Required area = A = 0.774 m2
Pressure factor = 1.1
Type factor = 0.85
Bare cost = \$ 428.57
Cost of equipment = 428 x 1.1 x 0.85 = \$ 400.7
Cost of equipment (2009) = 400.7 x (121/109) = \$ 444.
11.6 PUMPS P-1, P-2, P-3, P-4:
Number of pumps = 4
Type: horizontal one stage
Diameter of discharge pipe = 3 in.
Material of construction: stainless steel
Seal type: mechanical seal
Cost (2008) = \$ 4700
Cost (2009) = \$ 4700 x (121/119) = \$ 4780
Cost (2009) of 4 pumps = \$19120
11.7 Neutralization Reactor MFR-2:
n
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CostEstimation|ChemicalEngineeringProjects

Purchased equipment cost Ce = CSn

Cost constant C = \$31000
S = 5 m3
n = 0.40
Ce = CS0.40
Ce = 31000 (5)0.40
Ce = \$ 59013.27
Ce (2009) = 59013.27 x (121/109) = \$ 10005
11.8. Mixer Mix-1, 2, 3:
Number of units = 3
Equipment cost (2009) = \$ 1500
Total cost of three units = \$ 4500
11.9. Double pipe heat exchanger E-1:
Pipe inner diameter = 2 in.
Area of one exchanger = 24 ft2
Purchased cost of one exchanger = \$ 1000
Total purchased cost of one exchanger (2009) = 1000 x (121/109) = \$ 1110.09
Total no. of heat exchangers = 1
Total purchased cost of two exchangers = \$ 1110.09
11.10 Liq-Liq Extractor:
Equipment cost = \$ 3000
11.11 Estimation of xed capital cost:

Sr. no.

Items

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Process type uids

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Major equipment, total purchase cost

PCE

F1 equipment erection

0.4

F2 piping

0.70

F3 instrumentation

0.20

F4 electrical

0.10

F5 buildings , process

0.15

F6 utilities

0.50

F7 storages

0.15

F8 site development

0.05

F9 ancillary buildings

0.15

= PCE x 3.40

0.30

0.05

F12 contingency

0.10

= PPC x 1.45

Total purchased cost of major equipment items (PCE):

EQUIPMENTS

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TOTAL PURCHASED COST (\$)

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CostEstimation|ChemicalEngineeringProjects

CSTR

10005

51187

Gravity separator (2)

4000

Pumps (4)

19120

Neutralization reactor

10005

Mixer (3)

4500

1110

3000

102927

PPC = PCE x 3.40

PPC = 102927 x 3.40
PPC = \$ 349951
Fixed capital = 349951 x 1.45
Fixed capital = \$ 507430.11
Total initial investment required for project = \$ 507430.11
Chemical Engineering projects

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