UNIVERSITY TECHNOLOGY MARA

FACULTY OF CHEMICAL ENGINEERING

PRODUCTION OF PROPENE

SYAZWINA BINTI AZIZI 2015635202

SITI KHAIRUNNISA BINTI AHMAD 2015655912
HARRIS SHAZLAN BIN MUHAMMAD SHAZWAN 2015635236
NINA SUHAILA BINTI NOR WAHID 2015237884
SABRINA BINTI KHAMIS 2015687078

1
TABLE OF CONTENT

Topic Page Number

1.0 Introduction 3
1.1 Market Survey 4
1.2 Location 7
1.3 Process Selection 8
1.4 Process Modification 12
2.0 Mass Balance 13
2.1 Basic Mass Balance 13
2.2 Separator 1 15
2.3 Mixer 16
2.4 Reactor 17
2.5 Separator 2 18
2.6 Separator 3 19
2.7 Separator 4 20
3.0 Energy Balance 21
3.1 Heat Exchanger 1 23
3.2 Separator 2 24
3.3 Furnace 25
3.4 Reactor 26
3.5 Heat Exchanger 2 27
3.6 Separator 2 28
3.7 Heat Exchanger 3 29
3.8 Separator 3 30
3.9 Condenser 31
3.10 Separator 4 32
4.0 Heat Integration 33
5.0 Cost Calculation 35
5.1 Bare Module Costs 35
5.2 Fixed Capital Investment 49
5.3 Cost of Manufacturing 49
5.4 Revenue 54
5.5 Cost of Land 54
5.6 Working Capital 54
6.0 Profitability Analysis 55
6.1 Non-discounted Profitability 55
6.2 Discounted Profitability 57
7.0 Safety Analysis 60
8.0 Waste Management 64
9.0 References 66

2
1.0 INTRODUCTION

Propene, also known as propylene or methyl ethylene, is an unsaturated organic compound

having the chemical formula C3H6. It has one double bond, and is the second simplest
member of the alkene class of hydrocarbons.

At room temperature and atmospheric pressure, propene is a gas, and as with many other
alkenes, it is also colorless with a weak but unpleasant smell. Propene has a higher density
and boiling point than ethylene due to its greater mass. It has a slightly lower boiling point
than propane and is thus more volatile. It lacks strongly polar bonds, yet the molecule has a
small dipole moment due to its reduced symmetry (its point group is Cs). Propene has the
same empirical formula as cyclopropane but their atoms are connected in different ways,
making these molecules structural isomers.

Propene is produced from fossil fuels which are petroleum, natural gas, and, to a much
lesser extent, coal. Propene is a by-product of oil refining and natural gas processing. During
oil refining, ethylene, propene, and other compounds are produced as a result of cracking
larger hydrocarbon molecules to produce hydrocarbons more in demand. A major source of
propene is naphtha cracking intended to produce ethylene, but it also results from refinery
cracking producing other products. Propene can be separated by fractional distillation from
hydrocarbon mixtures obtained from cracking and other refining processes; refinery-grade
propene is about 50 to 70%.

Propene reacts violently with oxide of nitrogen and also a number of other substances and
condition. Essentially all of the propylene produced for chemical purposes is consumed as a
chemical intermediate in other chemical manufacturing processes. This hydrocarbon is
widely used in the manufacture of cumene, resins, fibres, elastomers and other chemicals
which enable the manufacture of many chemicals and plastics. In addition to its use as a
chemical intermediate, propylene is produced and consumed in refinery operations for the
production of gasoline components

The raw material that is utilized in this process is liquefied petroleum gas (LPG). The term
LPG actually encompasses more than one variety of gaseous fuel. There are a number of
hydrocarbon gases that fall into the classif classification of LPG. Their common
distinguishing characteristic is that they can be compressed into liquid at relatively low
pressures. LPG is stored under pressure, as a liquid.

3
 Propane dehydrogenation (PDH) is used to produce polymer-grade propylene from
propane. The productions of dehydrogenation process normally consist of isobutylene, n-
butenes, or propylene from isobutane, n-butane, or propane respectively. The process
consists of a reactor section, product recovery section and catalyst regeneration section.
Hydrocarbon feed is mixed with hydrogen-rich recycle gas and is fed into a heater to be
heated to over 540C (1000F) and then enters the reactors to be converted at high mono-
olefin selectivity. Several inter-stage heaters are used to maintain the reaction through
supplying heat continuously, since the reaction is endothermic. This process converts
propane to propylene on a fixed-bed of chromia-alumina catalyst in order to recycle the
unconverted propane and leave propylene as the net product. The chemical reaction occurs
during the gaseous phase at high temperatures (ranging from 540 to 820 degrees C) that
causes an endothermic equilibrium reaction. Conversion rates depend on the
thermodynamic limits from specific partial pressures and the actual temperature used in the
immediate process. Low partial pressures of the hydrocarbons eventually create the
dehydration reaction as well as the high temperatures. The propane through the catalytic
dehydration is processed in dehydrating reactors to create the by-products and compressors
separate these substances later on.

1.1 Market Survey

4
The dominant outlet
for propylene is polypropylene (PP),
accounting for nearly two-thirds of global
propylene consumption. Second largest sales
market for propylene is the production
of propylene oxide, followed by the
manufacturing of acrylonitrile, butyraldehyde,
cumene, and acrylic acid. The derivatives of
propylene oxide are needed as raw materials
for the manufacturing of products
like polyurethane (PUR), lacquers and adhesives, polyester resins, cooling agents,
antifreeze, and solvents. In addition to the production of the engineering plastic acrylonitrile
butadiene styrene (ABS), acrylonitrile is also used to produce acrylic fibers that are then
processed into textiles. Butyraldehyde is an intermediate in the production of butanol and 2-
ethylhexanol. Cumene is primarily used to produce phenol and acetone. Acrylic acid is used
in the production of acrylic esters for superabsorbers (superabsorbent polymers, SAP)

Besides traditional propylene production methods, new on-purpose technologies

have penetrated the market. On-purpose sources include propane dehydrogenation (PDH),
metathesis, high severity catalytic cracking, olefin cracking, Coal-to-Olefins (CTO) and
Methanol-to-Olefins (MTO). On-purpose production currently makes up an estimated 14% of
global propylene supply, and is projected to grow to 30% of global supply by 2019.

Figure 2.1: Propylene production by technology

Global on-purpose propylene production grows from 14% to 30% of supply over the
next five years as the wave of new propane dehydrogenation (PDH) and coal-to-olefin (CTO)

5
projects start production. The majority of the new on-purpose propylene capacity is being
built in China via both CTO and PDH.

Based on the recent article, in the Global Propylene Market 2016 stated that
propylene is the second most important product of the olefin market (PR Newswire). In 2014,
about 90 million tonnes of propylene were processed worldwide and it was estimated the
demand to rise to 130 million tonnes worldwide by year 2024 according to the latest data
from HIS Chemical North American Propylene Supply Study. Some of the largest demands
countries in propylene production are India, China and Japan which together accounted for
about 55% of global consumption in 2014. It is anticipated that China will grow its propylene
capacity at the fastest pace of any country in the world over the next five years and the
market will exhibit significant growth and account for about 76% of the total increase in propylene
demand.

Figure 2.1: Graph of propylene supply and demand from year 2009 to 2024

Currently, China is the second-largest

producer of propylene and is expected to make up for
almost 70% of the Asian capacity addition and 45% of
the global capacity addition in the next five years. As
a result of being a by-product of refinery sources, the
availability of propylene has been widespread. The by
far largest share of global propylene output, about two

Figure 2.2: Pie chart shows

6
world consumption of propylene
thirds, is processed into polypropylene. Demand for this plastic is projected to increase by
3.7% p.a. until 2021 and will therefore dominate demand development on the propylene
market.

7
1.2 Location

Scoring method

Location Weightage (%)

Criteria
China India Malaysia
Transportation 5 3 5 10

Human Capital
Labor availability 5 5 3 10
Skill levels

Source of Raw
4 4 3 20
Materials
Market Target 5 3 3 10
Infrastructure 5 3 4 10
Politics 4 2 3 15
Weather 3 4 4 5
Landscape 4 4 4 20
Total Score 435 350 375 100
Rank 1 3 2

Site Location

This plant located at Pudong, Shanghai, China where these locations are the most nearer
to the supplier of raw material which is propane from Shanghai Hynote Import & Export,
which take only 20 min to reach. This location also strategic where the products produce can
be easily import and export by shipping at Shanghai Port which are huge port in China.
Lastly labour cost also low compared to other country which supplied raw material.

8
1.3 Process Selection

Process 1 (Hydro MTO Process)

MTO process

The MTO process converts crude methanol to olefins, which results in savings for a
methanol purification section. The reaction takes place on a zeolite catalyst in a fluidized-bed
reactor and MTO can use crude methanol. The catalyst is deactivated over time by the
building of coke, which is why a portion of the spent catalyst is continuously removed from
the reactor to a regeneration reactor. Air or oxygen is introduced to that regeneration reactor
so that the catalyst can be regenerated by building carbon oxides. The product stream
leaving the reactor is fed to a separation section to remove water and to recover non-reacted
dimethyl ether (DME). The olefin rich stream is then passed to a fractionation section that
separates the mixture into the desired ethylene and propylene streams as well as a fuel gas
stream and a stream that consists of medium boiling hydrocarbons.

The MTO uses a fluidized-bed reactor, which is favourable with respect to the
exothermic reaction so that the released heat can be removed faster. Moreover, the spent
catalyst can be regenerated easily by continuously removing a part of the catalyst from the
reactor and reroute it back after regeneration. However, the fluidized-bed implies the
presence of a stable catalyst, which had to be developed for these special conditions.
According to the needs, the ratio between propylene and ethylene produced by the reaction
can be adjusted in a range of about 1.3 to 1.8. The heavier hydrocarbon stream leaving
fractionation is fed into a cracking zone to provide another source for ethylene and propylene

9
production. The product stream of the cracking section is separated into high boiling
hydrocarbons, which are removed from the process and an olefin rich stream which is re-
routed to fractionation.

Process 2 (Metathesis of Propylene)

Metathesis process

The metathesis of ethylene and butane to propylene is carried on a metal oxide catalyst and
is operated with excess ethylene. The process consists of a reaction section and product
recovery section. Fresh ethylene and butane are fed to a treater before it is sent to the
heater to be heated to the operating temperature of 453K. Here the feed reacts to form
propylene and other byproducts. Both propylene and unreacted ethylene travels to a
depropylenizer column and deethylenizer column to be separated. The Propylene is
harvested and unreacted ethylene is sent back to the feed treater to be mixed with fresh
feed for higher conversion. Theoretically, if 1-butene was used it will have a 100% selectivity
for propylene

10
 Process 3 (Dehydrogenation of Propane)

Propane dehydrogenation
Propane dehydrogenation (PDH) is used to produce polymer-grade propylene from
propane. The productions of dehydrogenation process normally consist of isobutylene, n-
butenes, or propylene from isobutane, n-butane, or propane respectively. The process
consists of a reactor section, product recovery section and catalyst regeneration section.
Hydrocarbon feed is mixed with hydrogen-rich recycle gas and is fed into a heater to be
heated to over 540C (1000F) and then enters the reactors to be converted at high mono-
olefin selectivity. Several inter-stage heaters are used to maintain the reaction through
supplying heat continuously, since the reaction is endothermic. This process converts
propane to propylene on a fixed-bed of chromia-alumina catalyst in order to recycle the
unconverted propane and leave propylene as the net product. The chemical reaction occurs
during the gaseous phase at high temperatures (ranging from 540 to 820 degrees C) that
causes an endothermic equilibrium reaction. Conversion rates depend on the
thermodynamic limits from specific partial pressures and the actual temperature used in the
immediate process. Low partial pressures of the hydrocarbons eventually create the
dehydration reaction as well as the high temperatures. The propane through the catalytic
dehydration is processed in dehydrating reactors to create the by-products and compressors
separate these substances later on.

11
 Catalyst activity is maintained by the continuous catalyst regenerator (CCR) or by
shutting down reactors one by one and regenerating the reactor by using regeneration air. In
the continuous catalyst regenerator, catalyst is continuously withdrawn from the reactor,
regenerated, and then fed back into the reactor bed. The reactor effluent is compressed,
dried and sent to a cryogenic separator where hydrogen is recovered. The olefin product is
sent to a selective hydrogenation process (SHP) where dienes and acetylenes are saturated
to mono-olefins. The propylene stream goes to a deethanizer where light-ends are removed
prior to the propane-propylene (P-P) splitter. Unconverted feedstock is recycled back to the
depropanizer where it combines with fresh feed before being sent back to the reactor
section.

SCREENING

Processes
Criteria MTO Metathesis Dehydrogenation Standard

Capital Cost 0 + - 0

Cost of + 0 + 0
Reactants
Environmental + 0 0 0
Impact
Total 2 1 0 0

Advantages Disadvantages
Cheap material cost Reaction is highly endothermic

High propylene selectivity Requires multiple reactors

Produces other profitable products Catalyst is easily deactivated

(benzene)

12
1.4 Process Modification

(Modified Dehydrogenation Process)

In the modification of the dehydrogenation of propane we added 3 more reactors and

heaters to the original 1 to increase the conversion of propane to its products. At the end of
the reaction process, we also added a heat exchanger to act as a preheater for the propane
feed that is about to enter the first heater as this would reuse the heat released by the
products. The heat exchanger also reduces the temperature of the product so that it would
not damage the compressor equipment that is designed to withstand temperatures below
100 degree Celsius only.

13
2.0 MASS BALANCE

2.1 Basic Mass Balance

Temperature = 500C

Pressure = 1 Bar
F lb/hr C3H8

R lb/hr C3H8

C2H8 C3H6 H2

Stoichiometry 1 1 1
Mass
m1 m2 = 110 000 m3
Flowrate(lb/hr)
Molecular
Weight (lb/lb 44.10 42.08 2.01
mol)
n2, (lbmole/hr) 2614.07 2614.07 2614.07

Basis = 110 000 lb/hr of Propylene produced

Conversion, X = 0.84

Number of moles of Propylene formed

110 000
2 = = 2614.07

42.08

Assuming 100% conversion was achieved, m1

1 = 2 614.07 44.1 = 115 280.49

14
Mass flowrate of recycle, R
1
= 1

1 0.84
= 115 280.42
0.84

= 21 903.28

Mass flowrate of H2, m3

3 = 2 = 2 614.07 2.01


3 = 5 254.28

Mass flowrate of feed to reactor

= 1 + = 115 280.42 + 21 903.42


= 137 183.84

15
 2.2 Mass Balance For Separation Unit 1

2
D1=126 920.68 lb/hr
0.910 Propane

0.007 Butane

0.002 Pentane
S-1
1
F1=145 587.87 lb/hr
0.79 Propane

0.18 Butane

0.03 Pentane 3
B1=18 666.99 lb/hr
0.87 Butane

0.13 Pentane

Stream 1 Stream 2 Stream 3

No Component
Mole Mass Flowrate Mole Mass Flowrate Mole Mass Flowrate
Fraction (lb/hr) Fraction (lb/hr) Fraction (lb/hr)
1 Propane 0.79 115 014.42 0.91 115 014.42 0 0

2 Butane 0.18 26 205.82 0.07 8 929.69 0.87 17 275.83

3 Pentane 0.03 4 367.64 0.02 2 976.56 0.13 1 391.06

TOTAL F1=145 587.87 lb/hr D1=126 920.68 lb/hr B1=18 666.99 lb/hr

16
 2.3 Mass Balance For Mixer

2 M-1 3
D1=126 920.68 lb/hr F =148 828.19 lb/hr
0.91 Propane A1 Propane

0.07 Butane A2 Butane

0.02 Pentane 19 A3 Pentane

R =21 907.51 lb/hr

1.0 Propane

Stream 2 Stream 3 Stream 19

No Component
Mole Mass Flowrate Mole Mass Flowrate Mole Mass Flowrate
Fraction (lb/hr) Fraction (lb/hr) Fraction (lb/hr)
1 Propane 0.91 115 014.42 A1=0.92 136 921.93 1 21 907.51

2 Butane 0.07 8 929.69 A2=0.06 8 929.69 0 0

3 Pentane 0.02 2 976.56 A3=0.02 2 976.56 0 0

TOTAL D1=126 920.68 lb/hr F=148 828.19 lb/hr R=21 907.51 lb/hr

17
 2.4 Mass Balance For Reactor Unit 1 (R-1)

R-1

4 5
W= 148 828.19 lb/hr Y= 148 828.19 lb/hr

0.92 Propane N1 Propane

0.06 Butane N2 Butane

0.02 Pentane N3 Pentane

N4 Propene

N5 Butene

N6 Hydorgen

Stream 4 Stream 5
No Component
Mole Mass Flowrate Mole Mass Flowrate
Fraction (lb/hr) Fraction (lb/hr)
1 Propane 0.92 136 921.93 N1=0.15 21 907.51

2 Butane 0.06 8 929.69 N2=0.006 892.97

3 Pentane 0.02 2 976.56 N3=0.02 2 976.56

4 Propene - - N4=0.74 110 000

5 Butene - - N5=0.052 7 796.87

6 Hydrogen - - N6=0.035 5 254.28

TOTAL W =148 828.19 lb/hr Y =148 828.19 lb/hr

18
 2.5 Mass Balance For Separation Unit 2

9
D2 = 143 573.91 lb/hr
1.0 Hydrogen

S-2
7
F2=148 828.19 lb/hr
0.15 Propane

0.006 Butane

0.02 Pentane 8
B2 = 5 254.28 lb/hr
0.74 Propene
0.15 Propane
0.052 Butene
0.006 Butane
0.035 Hydrogen
0.021 Pentane

0.77 Propene

0.054 Butene

Stream 7 Stream 8 Stream 9

No Component
Mole Mass Flowrate Mole Mass Flowrate Mole Mass Flowrate
Fraction (lb/hr) Fraction (lb/hr) Fraction (lb/hr)
1 Propane 0.15 21 907.51 0.15 21 907.51 0 0

2 Butane 0.006 892.97 0.006 892.97 0 0

3 Pentane 0.02 2 976.56 0.021 2 976.56 0 0

4 Propene 0.74 110 000 0.77 110 000 0 0

5 Butene 0.052 7 796.87 0.054 7 796.87 0 0

6 Hydrogen 0.035 5 254.28 0 0 1.0 5 254.28

TOTAL F2 = 148 828.19 lb/hr B2 = 5 254.28 lb/hr D2 = 143 573.91 lb/hr

19
 2.6 Mass Balance For Separation Unit 3

11
D3 = 131 907.51 lb/hr
0.166 Propane

0.834 Propene

S-3
10
F3 = 143 573.91 lb/hr
0.15 Propane

0.006 Butane

0.021 Pentane 12
B3 = 11 666.4 lb/hr
0.77 Propene 0.08 Butane
0.054 Butene 0.26 Pentane
0 Hydrogen 0.67 Butene

Stream 10 Stream 11 Stream 12

No Component
Mole Mass Flowrate Mole Mass Flowrate Mole Mass Flowrate
Fraction (lb/hr) Fraction (lb/hr) Fraction (lb/hr)
1 Propane 0.15 21 907.51 0.166 21 907.51 - -

2 Butane 0.006 892.97 - - 0.08 892.97

3 Pentane 0.021 2 976.56 - - 0.26 2 976.56

4 Propene 0.77 110 000 0.834 110 000 - -

5 Butene 0.054 7 796.87 - - 0.67 7 796.87

6 Hydrogen 0 0 - - - -

TOTAL F3 = 143 573.91 lb/hr D3 = 131 907.51 lb/hr B3 = 11 666.4 lb/hr

20
 2.7 Mass Balance For Separation Unit 4

20
D4= 110 000 lb/hr
1.0 Propene

S-4
15
F4= 131 907.51 lb/hr
0.166 Propane

0.834 Propene
17
B4 = 21 907.51lb/hr
1.0 Propane

Stream 15 Stream 20 Stream 17

No Component
Mole Mass Flowrate Mole Mass Flowrate Mole Mass Flowrate
Fraction (lb/hr) Fraction (lb/hr) Fraction (lb/hr)
1 Propane 0.166 21 907.51 0 - 1.0 21 907.51

2 Propene 0.834 110 000 1.0 110 000 0 -

TOTAL F4= 131 907.51 lb/hr D4= 110 000lb/hr B421 907.51lb/hr

21
3.0 ENERGY BALANCE

Reference = (liquid phase, 25C, 1bar)

Table 3.1: Table of Data for Heat of Capacities

Cp=A+B*T+C*T^-2+D*T^-3
Average Cp
Molecular Hv
Compound Hf for liquid
Weight Kj/mol
KJ/(mol.K)
A*10^3 B*10^5 C*10^8 D*10^12

Propane 44.09 -103.8 18.77 68.023 22.59 -13.11 31.71 0.10584

Propene 42.08 20.41 18.42 59.58 17.71 -10.17 24.6 0.1199

Butane 58.12 -124.7 22.306 92.3 27.88 -15.47 34.98 0.13367

Cp=A+B*T+C*T^-2+D*T^-3

22
 Butene 56.1 1.17 21.916 82.88 25.64 -17.27 50.50 0.09396

Pentane 72.15 -146.4 25.77 114.8 34.09 -18.99 42.26 0.167

Hydrogen 2.016 0 0.904 28.84 0.00765 0.3288 -0.8698 -

Formula

= = + +

1. ,
=0

2. , = 0

3. , = 0

= =

= +

23
 =

3.1 Heat Exchanger (E-1)

Stream inlet Stream inlet

(liq) (liq)
T=293.15K H1 H4 T=325.15K
H2 H5

H3 H6

REFERENCE (LIQ, 298,15K)

Inlet stream Outlet stream

Component
n (mol/hr) H (kJ/mol) n (mol/hr) H (kJ/mol)

Propane (liq) 1 182 354.66 H1 =-625 702.09 1182354.66 H4=3 378 791.27

Butane (liq) 204 520.26 H2=-136 691.12 204520.26 H5=754 698.17

Pentane (liq) 27 460.48 H3=-22 929.50 27460.48 H6=123 819.30

24
 H=-78 522.71 H=4 257 308.74

Q=4 335 831.45

3.2 Seperator Unit 1 (S-1)

2 Stream outlet
(vap)
H9 T=320.15K

H10

H11
S-1
Stream inlet 1
(liq)
T=325.15K H4

H5

H6 3(i) Stream outlet

(liq)
H7 T=293.15K

H8

REFERENCE (LIQ,298.15K)

25
 Inlet stream Outlet stream
Component
n (mol/hr) H (kJ/mol) n (mol/hr) H (kJ/mol)

Propane (liq) 1182354.66 H4=3 378 791.27 - -

Butane (liq) 204520.26 H5=754 698.17 134 825.80 H7=1 544 499.51
Pentane (liq) 27460.48 H6=123 819.30 8 745.26 H8=125 161.29
Propane (vap) - - 1 183 254.66 H9=26 554 956.1
Butane (vap) - - 69 689.93 H10=1 854 086.65
Pentane (vap) - - 18 715.22 H11=558 741.02
H=4257308.74 H=30 637 444.57

Q=26 380 135.83

3.3 Furnace (H-1)

3 4 Stream outlet
Stream inlet (vap)
(vap) H9 T=873.15
T=320.15K H12
H10 H13
H11 H14
REFERENCE (LIQ, 298,15K)

Inlet stream Outlet stream

Component
n (mol/hr) H (kJ/mol) n (mol/hr) H (kJ/mol)
Propane (vap) 1 183 254.66 H9=26 554 956.1 1 183 254.66 H12=129 312 751.8
Butane (vap) 69 689.93 H10=1 854 086.65 69 689.93 H13=8 293 798.57
Pentane (vap) 18 715.22 H11=558 741.02 18 715.22 H14=140 346 458.50
H=28 967 783.77 H=277 953 008.90
Q=248 985 225.10 kJ/hr

26
3.4 Reactor Unit 1 (R-1)

R-1

Stream inlet 4 5 Stream outlet

(vap)
(vap)
T=873.15K H15
H12 T=873.15K

H13 H16

H14 H17

H18

H19

H20

Heat of Reaction (kJ/mol)

C3H4 --- C3H6 + H2 124.21

27
 C4H10 ---- C4H8 + H2 125.87
Extent reaction (mol/hr) 1 183 204.77
295 895 848.90 kJ/hr

REFERENCE (LIQ, 298,15K)

Inlet stream Outlet stream

Component
n (mol/hr) H (kJ/mol) n (mol/hr) H (kJ/mol)
Propane (vap) 1 183 254.66 H12=129 312 751.80 225 430.87 H15=25 129 004.51
Butane (vap) 69 689.93 H13=8 293 798.57 6 967.18 H16=989 304.72
Pentane (vap) 18 715.22 H14=140 346 458.50 18 715.22 H17=3 215 057.64
Propene (vap) - - 1 185 722.21 H18=109 892 734.40
Butane (vap) - - 63 040.27 H19=8 061 337.57
Hydrogen (vap) - - 1 182 193.26 H20=21 580 937.96
H=277 953 008.90 H=168 868 376.80
Q= 186 811 216.80 kJ/hr

3.5 Heat Exchanger (E-2)

Stream outlet
Stream inlet 6 7 (liq)
(vap) T=136.05K
T=873.15K H21
H15
H22
H16
H23
H17
H24
H18
H25
H19
H26
H20

REFERENCE (LIQ, 298,15K)

Component Inlet stream Outlet stream

28
 n (mol/hr) H (kJ/mol) n (mol/hr) H (kJ/mol)
Propane (vap) 225 430.87 H15=25 129 004.51 - -
Butane (vap) 6 967.18 H16=989 304.72 - -
Pentane (vap) 18 715.22 H17=3 215 057.64 - -
Propene (vap) 1 185 722.21 H18=109 892 734.40 - -
Butane (vap) 63 040.27 H19=8 061 337.57 - -
Hydrogen (vap) 1 182 193.26 H20=21 580 937.96 - -
Propane (liq) - - 225 430.87 H21= -3 868 393.73
Butane (liq) - - 6 967.18 H22=-150 976.62
Pentane (liq) - - 18 715.22 H23=-506 621.0
Propene (liq) - - 1 185 722.21 H24=-23 050 439.76
Butane (liq) - - 63 040.27 H25=-960 161.06
Hydrogen (liq) 1 182 193.26 H26=-5 520 842.52
H=168 868 376.80 H=-34 057 434.69
Q= -202 925 810.80 kJ/hr

3.6 Separation Unit 2 (S-2)

9 Stream outlet
(vap)
H27 T=136.05K

Stream inlet
(liq) S-2
7
T=136.05K

H21

H22
Stream outlet
H23 8
(liq)
H24 T=136.05K
H21
H25
H22
H26
H23
29 H24

H25
 REFERENCE (LIQ, 298,15K)

Inlet stream Outlet stream

Component
n (mol/hr) H (kJ/mol) n (mol/hr) H (kJ/mol)
Propane (liq) 225 430.87 H21=-3 868 393.73 225 430.87 H21=-3 868 393.73
Butane (liq) 6 967.18 H22=-150 976.62 6 967.18 H22=-150 976.62
Pentane (liq) 18 715.22 H23=-506 621.0 18 715.22 H23=-506 621.0
Propene (liq) 1 185 722.21 H24=-23 050 439.76 1 185 722.21 H24=-23 050 439.76
Butane (liq) 63 040.27 H25=-960 161.06 63 040.27 H25=-960 161.06
Hydrogen (liq) 1 182 193.26 H26=-5 520 842.52 - -
Hydrogen (vap) - - 1 182 193.26 H27=-29 740 435.84
H=-34 057 434.69 H=-58 277 028.01
Q= -24 219 593.32 kJ/hr

3.7 Heat Exchanger (E-3)

Stream outlet
Stream inlet 9(i) 10 (liq)
(liq) T=315.15K
T=136.06K H21 H28

H22 H29

H23 H30

H24 H31

H25 H32

REFERENCE (LIQ, 298,15K)

Inlet stream Outlet stream

Component
n (mol/hr) H (kJ/mol) n (mol/hr) H (kJ/mol)

30
Propane (liq) 225 430.87 H21=-3 868 393.73 225 430.87 H28=405 550.14
Butane (liq) 6 967.18 H22=-150 976.62 6 967.18 H29=15 815.50
Pentane (liq) 18 715.22 H23=-506 621.0 18 715.22 H30=53 132.51
Propene (liq) 1 185 722.21 H24=-23 050 439.76 1 185 722.21 H31=2 416 501.86
Butane (liq) 63 040.27 H25=-960 161.06 63 040.27 H32=100 675.31
H=-28 536 592.17 H=2 991 675.32
Q= 31 528 267.49 kJ/hr

3.8 Separation Unit 3 (S-3)

11
Stream outlet
(vap)
T=315.15K
H33

H34

S-3
Stream inlet 10
(liq)
T=315.15K H28

H29

H30 12 Stream outlet

(liq)
H31 T=315.15K
H29
H32
H30

H32
31
 REFERENCE (LIQ, 298,15K)

Inlet stream Outlet stream

Component
n (mol/hr) H (kJ/mol) n (mol/hr) H (kJ/mol)
Propane (liq) 225 430.87 H28=405 550.14 - -
Butane (liq) 6 967.18 H29=15 815.50 6 967.18 H29=15 815.50
Pentane (liq) 18 715.22 H30=53 132.51 18 715.22 H30=53 132.51
Propene (liq) 1 185 722.21 H31=2 416 501.86 - -
Butane (liq) 63 040.27 H32=100 675.31 63 040.27 H32=100 675.31
Propane (vap) - - 225 430.87 H33= 4 903 346.85
Propene (vap) - - 1 185 722.21 H34=22 188 419.72
H=2 991 675.32 H=27 261 389.89
Q= 24 269 714.57 kJ/hr

3.9 Condenser (E-15)

E-15 15
Stream inlet Stream outlet
11
(vap) (liq)
T=315.15K H33 H35 T=313.15K

H34 H36

REFERENCE (LIQ, 298,15K)

Inlet stream Outlet stream

Component
n (mol/hr) H (kJ/mol) n (mol/hr) H (kJ/mol)
Propane (vap) 225 430.87 H33= 4 903 346.85 - -

32
Propene (vap) 1 185 722.21 H34=22 188 419.72 - -
Propane (liq) - - 225 430.87 H35=357 894.05
Propene (liq) - - 1 185 722.21 H36=2 132 521.395
H=27 261 389.89 H=2 490 415.45
Q= -25 130 974.44 kJ/hr

3.10 Separation Unit 4 (S-4)

20 Stream outlet
(vap)
T=313.15K
H37

S-4
Stream inlet 15
(vap)
T=313.15K H35

H36
17 Stream outlet
(liq)
H35 T=313.15K

REFERENCE (LIQ, 298,15K)

33
 Inlet stream Outlet stream
Component
n (mol/hr) H (kJ/mol) n (mol/hr) H (kJ/mol)
Propane (liq) 225 430.87 H35=357 894.05 225 430.87 H35=357 894.05
Propene (liq) 1 185 722.21 H36=2 132 521.395 - -
Propene (vap) - - 1 185 722.21 H37=34 361 043.92
H=2 490 415.45 H=34 718 937.97
Q= 32 228 522.52 kJ/hr

4.0 HEAT INTEGRATION

T = 10 K

Cp FCp
Stream Type F (kg/s) Tsupply (K) Ttarget (K) Q (kW)
(KJ/kg.K) (kW/K)
H1 Hot 18.75 0.331 6.21 873.15 683.15 1 179.19
H2 Hot 18.75 0.331 6.21 683.15 493.15 1 179.19
H3 Hot 18.75 0.331 6.21 493.15 349.10 958.19
H4 Hot 18.75 0.331 6.21 349.10 136.05 1 258.07
C1 Cold 26.65 0.557 14.84 320.15 399.57 1 179.19
C2 Cold 11.27 4.187 47.19 300.15 325.15 1 179.19
C3 Cold 18.09 0.296 5.35 136.05 315.15 958.19
Cold Utility
Cold 24.42 0.919 18.50 70 126.05 1 258.07
(Oxygen)

34
Stream H1 H2 H3 H4 C1 C2 C3 CU
FCp
6.21 6.21 6.21 6.21 14.84 47.19 5.35 24.42
(kW/K)

873.15

683.15

493.15

399.57

349.10

325.15

320.15

303.15

300.15

136.05

126.05

70

35
Heat Integration PFD

36
5.0 COST CALCULATION

5.1 Bare Module Costs

REACTOR

Parameter SI
Volumetric Flowrate, Q 3812.78 ft3/hr
Retention time (half-full), t 5 min
Reactor Volume, V 635.46 ft3
Vessel Inside Diameter, Di 7.40 ft
Vessel Length, L 14.8 ft
Design Type Vertical
Material of Construction Low- Alloy Steel

1 ft3
Q=137 183.84 35.98

Q = 3812.78 ft3/hr

Retention time =5 min at half full :

5 min1
Volume, V = (3812.78 ft3/hr) ( 60
2)

0.0283 3
= 635.46 ft3 ( 1ft3
)

=18 m3

Assume L/ D = 2
V = (D/2)2L = (D3)/2
D = (2V/ )1/3 = [2(635.46)/ ] 1/3 = 7.40 ft
L= 2D = 14.8 ft

From figure A.16 (purchased reactor)

log 0 = 4.1052 + 0.5320(log 18) 0.0005(log 18)2 = $59 185.74

Bare-Module cost
From Table A.7

37
 = 0

= 4 $59 185.74 = $236 742.98

587
(2016) = $236 742.98 ( ) = $350 045.67
397

38
DISTILLATION COLUMN

Sizing and costing of the main vessel:

Parameters S1

Domed head wall thickness, a 0.0137m

Tray spacing, b 0.6096m

Column diameter, c 0.4785m

Column wall thickness, d 0.0127m

Design type Vertical

Material of Construction Carbon steel

Material of insulation Mineral wool,0.06m

Column type Plate column

Plate type Sieve

Domed head type Tori spherical

Sizing and costing of the reflux drum:

Parameters S1

Domed head wall thickness, 0.0137m

Vessel length,L 21.36m

vessel diameter, D 1.792m

Column wall thickness, d 0.01427m

Design type Vertical

Material of Construction Carbon steel

Material of insulation Mineral wool,0.06m

39
Sizing and costing of the condenser:

Parameters S1

Length of tube 2.697m

Area of transfer,Ac 58.75m2

Material of Construction Carbon steel

fixed head, shell tube

Type of HE
exchanger

Sizing and costing of the re-boiler:

Parameters S1

Length of tube
3.22m

Area of transfer,AR 188.53m2

Material of Construction Carbon steel

Type of HE u-tube

Total cost:

Vessel or Equipment Cost in $

main vessel 4587.49

the reflux drum

13,190.00

the condenser 100,006.00

the re-boiler 173,972.00

Total 291,755.49

40
Calculation:
Vessel
Bare module cost:
The operating pressure: 320 barg.

The pressure factor can be obtained from the following formula:

( + 1)
+ 0.00315
2[850 0.6( + 1)]
, , =
0.0063

(320 + 1)0.4785
+ 0.00315
2[850 0.6(320 + 1)]
=
0.0063

=19.04

Since the equipment is vertical process tower made up of carbon steel,

= 1

Purchased cost for the equipment can be calculated as follow in which A is the equipment
size:

10 = 1 + 2 10 () + 3 [10 ()]2

= 2 /4 = (0.4785 )2 /4 = 0.1798 3

For tray and packed tower, 1 = 2.9949, 2 = 0.4465, 3 = 0.3961,

10 = 2.9949 + 0.446510 (0.1798) + 0.3961 [10 (0.1798)]2

10 = 2.8821

= 762.31

Constant values for bare module factor of vertical process tower is 1 = 2.25, 2 = 1.82,

(2001) = (2001)[1 + 2 ]

(2001) = 762.31[2.25 + (1.82)(1)(1)]

(2001) = $3 102.611

Annual index for the year 2001 and 2016 are 397 and 587,

587
(2016) = $3102.611 ( )
397

41
 (2016) = $4587.49 4.43 = $ .

The plant has 3 vessels of the same size hence

(2016) = 3 ($20 322.57) = $60 967.71

Reflux Drum
The pressure factor can be obtained from the following formula:

10 = 1 2 10 () + 3 [10 ()]2

1 = 2 = 3 = 0

10 = 0

= 1

Since the equipment is vertical process tower made up of carbon steel,

= 1

Purchased cost for the equipment can be calculated as follow in which A is the equipment
size:

10 = 1 + 2 10 () + 3 [10 ()]2

= 2 /4 = (2 )2 /4 = 3.142 3

For tray and packed tower, 1 = 2.9949, 2 = 0.4465, 3 = 0.3961,

10 = 2.9949 + 0.446510 (3.142) + 0.3961 [10 (3.142)]2

10 = 3.32

= 2065

Constant values for bare module factor of vertical process tower is 1 = 2.25, 2 = 1.82,

(2001) = (2001)[1 + 2 ]

(2001) = 2065[2.25 + (1.82)(1)(1)]

(2001) = $8921

Annual index for the year 2001 and 2016 are 397 and 587,

42
 587
(2016) = $8921 ( )
397

(2016) = $13190 4.43 = $

Condenser
The operating pressure is 17.5 barg.

The pressure factor can be obtained from the following formula:

10 = 1 2 10 () + 3 [10 ()]2

1 = 0.03881, 2 = 0.11272, 3 = 0.08183

10 = 0.025

= 1.06

Since the equipment is made up of carbon steel,

= 1

Purchased cost for the equipment can be calculated as follow in which A is the equipment
size:

10 = 1 + 2 10 () + 3 [10 ()]2

= 58.75 2

For fixed tube reboiler, 1 = 4.3247, 2 = 0.3030, 3 = 0.1634,

10 = 4.1884 0.303010 (58.75) + 0.1634 [10 (58.75)]2

10 = 4.30

= 19954

Constant values for bare module factor of u-tube reboiler is 1 = 1.63 , 2 = 1.66,

(2001) = (2001)[1 + 2 ]

(2001) = 19954[1.63 + (1.66)(1.06)(1)]

(2001) = $67636

Annual index for the year 2001 and 2016 are 397 and 587,

43
 587
(2016) = $67636 ( )
397

(2016) = $100006 4.43 = $

Considering the plant has 2 condensers of the same capacity

(2016) = 2($443 027) = $886 054

Reboiler
The operating pressure is 17.5 barg.

The pressure factor can be obtained from the following formula:

10 = 1 2 10 () + 3 [10 ()]2

1 = 0.03881, 2 = 0.11272, 3 = 0.08183

10 = 0.025

= 1.06

Since the equipment is made up of carbon steel,

= 1

Purchased cost for the equipment can be calculated as follow in which A is the equipment
size:

10 = 1 + 2 10 () + 3 [10 ()]2

= 188.53 2

For u-tube reboiler, 1 = 4.1884, 2 = 0.2503, 3 = 0.1974,

10 = 4.1884 0.250310 (188.53) + 0.1974 [10 (188.53)]2

10 = 4.64

= 43740

Constant values for bare module factor of u-tube reboiler is 1 = 1.63 , 2 = 1.66,

(2001) = (2001)[1 + 2 ]

(2001) = 43740[1.63 + (1.66)(1.06)(1)]

44
 (2001) = $117660.60

Annual index for the year 2001 and 2016 are 397 and 587,

587
(2016) = $117660.60 ( )
397

(2016) = $173972 4.43 = $

Considering the plant has 2 reboilers of the same capacity

(2016) = 2($770 694) = $1 541 388

45
PUMP

Parameters Pump
Pump Type Positive Displacement
Material of Construction Stainless steel
Inlet Pressure, PI 145 psi
Outlet Pressure, PO 253.8 psi

Assumptions:
Supplies power shaft at 7 bar = 162 kW
Thus, P = 7.5 bar (109 psi) = 174 kW

To find the bare module cost, CBM,

CBM = Cp FBM

Since the unit does not operate at the near-ambient pressure, hence the condition for this
equipment is non-base-case.

To find Cp from Equation A.1,

log Cp = K1+ K2 log (A) + K3 [log(A)]2 -----------> Eq A.1

K1 = 3.4771, K2 = 0.1350, K3 = 0.1438, A = Shaft power = 174 kW

log Cp = 3.4771 + 0.1350 log (174 kW) + 0.1438 [ log (174 kW)]2 = 4.5

Cp = $31 729

To find FBM from Figure A.18,

FBM = B1 + B2FMFP

Value of B1 and B2 from Table A.4

B1=1.89

B2=1.35

46
From Table A.3, for compressor with steam turbine, the identification number to be used with
Figure A.18 is 34

From Figure A.18,

FM = 2.6

FBM = 1.89 + (1.35)(2.6)(1.0) = 5.4

Hence,

CBM (2001) = ($31 279)(5.4) = $31 279

CBM (2016) = CBM (2001) (587/397) = $31 279 (587/397) = $46 249

47
COMPRESSOR
The function of a compressor is to increase the pressure and corresponding saturation
temperature (boiling point) of the refrigerant vapor to high enough level so the refrigerant can
condense by rejecting its heat through the condenser.

Parameters Compressor
Compressor Type Centrifugal
Drive Type Steam turbine
Material of Construction Stainless steel
Inlet Volumetric Flow Rate, QI 3812.78 ft3/min
Inlet Pressure, PI 14.5 psi
Outlet Pressure, PO 145.04 psi
Specific Heat Ratio, k 1.10

Assumptions:
Supplies power shaft at 7 bar = 162 kW
Thus, at P = 9 bar (145.04 psi) = 208 kW

To find Cp from Equation A.1,

log Cp = K1+ K2 log (A) + K3 [log(A)]2 -----------> Eq A.1

K1 = 2.2897, K2 = 1.3604, K3 = -0.1027, A = Shaft power = 208 kW

log Cp = 2.2897 + 1.3604 log (208 kW) - 0.1027 [ log (208 kW)]2 = 4.9

Cp = $77 865

From Table A.6, for compressor with steam turbine, the identification number to be used with
Figure A.19 is 2
FBM = 5.8
CBM (2001) = CpoFBM = 77 865 x 5.8 = $451 618

CBM (2016) = CBM (2001) (587/397) = $451 618 (587/397) = $667 757

48
HEAT EXCHANGER

Heat exchanger type 2 shell and 4 tubes

Design type Fixed Head
Heat exchanger orientation Horizontal
Tube inlet direction Horizontal
Heat duty (kJ/s) 1 179.2
Heat duty (Btu/hr) 4.02 x 106

3412.14
= 1179.2

= 4.02 106

T1 T2
=
T
log(T1 )
2

Where T1 T2 =

(873.15 399.57)K (683.15 320.15)K

= = 54.11
473.58
log( 363 )

1179
= = = 48.20 2
0.45 . 54.11
2

Costing

1 = 4.3247, 2 = 0.3030, 3 = 0.1634

log 0 = 1 + 2 (log ) + 3 [log()]2 = 4.3247 0.3030 log 48.20 + 0.1634 (log 48.20)2

0 = $ 18 949.22

1 = 1.63, 2 = 1.66

1 = 0.00164, 2 = 0.00627, 3 = 0.0123

Operating pressure = 10 barg

log 0 = 1 + 2 (log ) + 3 [log()]2 = 0.00164 0.00627 (log 10) 0.0123 (log 10)2

0 = 0.95

49
 = 1

= 0 [1 + 2 ] = 18 949.22[(1.63) + 1.66(0.95)(1)] = $ 60 770.15

Considering that we have 3 of the same heat exchanger,

= 3(60 770.25) = $182 310.75

Equipment CBM (2001) ($)

Reactor 59 185.57
Vessel (Distillation Column) 9 307.83
Reflux Drum (Distillation Column) 8 921.00
Condenser (Distillation Column) 135 272.00
Reboiler (Distillation Column) 235 321.20
Pump 31 279.00
Compressor 451 618.00
Heat Exchanger 182 310.75
TOTAL $1 094 986.69

According to the Chemical Engineering Plant Cost Index, 2016 has a cost index of 587
therefore

587
(2016) = $1 094 986.69 ( ) = $1 619 035.74
397

50
5.2 Fixed Capital Investment

The fixed capital investment can be determined by the Grass Roots cost

= 1.18 = 1.18 ($1 619 035.74)

= $1 910 462.17

= + 0.50 = $1 910 462.17 + 0.50($1 619 035.74)

= $2 719 980.04

5.3 Cost Of Manufacturing

COST OF OPERATING LABOUR

The technique used to estimate operating labour requirements is based on data obtained
from five chemical companies and correlated by Alkhayat and Gerrrard (T.Richard, 2013).
The operating labour requirement for chemical processing plants is calculated using
equation below:

NOL = (6.29 + 31.7P2 + 0.23Nnp )0.5

NOL = the number of operator per shift

P = the number of processing steps involving the handling of particulate solids
Nnp = the number of non-particulate processing steps

Nnp = Equipment

Based on the process flow diagram,

P 0
Nnp 17

NOL (no. of operators required per shift) = (6.29 + 31.7(0)2 + 0.23(17))0.5 = 3.19

Based on eligible sources, the number of operators needed to provide this number of shifts
is [(1095 shifts/y)/(245 shifts/operators/y)] or approximately 4.5 operators.

51
 Operating Labour = (4.5)(3.19) = 14.36 = 14 operators

From the data obtained from the Bureau of Labour Statistics, they give the hourly
miscellaneous plant and system operators at $8012.28 for a year.

Labour Cost (2015) = 14 x $8012.28 = $112 172

RAW MATERIAL COST

Stream factor, SF = 0.92

Flowrate of propane = 52169.66kg/hr (stream 1)

Flowrate of pentane = 1981.13kg/hr (stream 1)

Flowrate of butane = 11886.76kg/hr (stream 1)

Yearly cost of propane

0.57 1
= (24 ) (365 ) (52169.66 ) ($ ) ( ) (0.92) = $239,654,062.60/.
1

Yearly consumption of propane

(24 ) (365 ) (52169.66 ) (0.92)

= = 420,445.72/
1000

Yearly cost of pentane

0.1 1
= (24 ) (365 ) (1981.13 ) ($ ) ( ) (0.92) = $1,596,632.29/.
1

Yearly consumption of pentane

(24 ) (365 ) (1981.13 ) (0.92)

= = 15,966.32/
1000

Yearly cost of butane

0.135 1
= (24 ) (365 ) (11886.76 ) ($ ) ( ) (0.92) = $12,928,347.82/.
1

Yearly consumption of butane

52

(24 ) (365 ) (11886.76 ) (0.92)

= = 95,797.78/
1000

Total yearly cost of crude oil

= $239,654,062.60 + $1,596,632.29 + $12,928,347.82 = $254,179,042.70

Total yearly consumption of crude oil

= 420,445.72 + 15,966.32 + 95,797.78 = 532,209.82

UTILITIES COST

1kW.h = 0.567 CNY (Chinese Yuan)

Furnace

Heat duty = 69 162.56 kW

365
Yearly cost = 69 162.56kW x 0.567/kWh x 0.92 x 24 hr x
1

= 316 042 910.3 CNY

= $ 45 568 215.72

Reactor

From journal assumption 923m3 = 186kW

1m3 = 0.2015kW

For this reactor 18m3 = 3.627kW

Based on heuristics, power input to a homogeneous reaction stirred tank is 0.1-0.3kW/m3.

So for reactors volume = 18 m3, need 3.627kW, efficiency = 84%

Shaft power 3.627 kW

Electric Power = = = 4.318 kW
0.84

Yearly cost = Electric power x Cost x Stream factor

365
Yearly cost = 4.3 kW x 0.567 CNY x 0.92 x 24 hr x
1
= 19 649.14 CNY

53
 = $2 833.45

Distillation Column
Reboiler duty is 5.3 GJ.

Power consumption cost at reboiler,

0.567 10^6 kJ 1 1 hr 24 hr 365 days
= 5.3 GJ 0.92
kW.h 1GJ 24 hr 3600s 1 day 1 year

= 280 309.05 CNY

Condenser duty is 5.1 GJ.

Power consumption cost at condenser,

0.567 10^6kJ 1 1 hr 24 hr 365 days
= 5.1 GJ 0.92
kW.h 1GJ 24 hr 3600s 1 day 1 year

= 269 731.35 CNY

Total consumption power of tower = 280 309.05 CNY + 269 731.35 CNY
= 550 040.40 CNY x 4 tower (consider same)
= 2 200 161.6
= $317 227.29
Pump
Shaft work = 174kW
Efficiency = 0.86 (interpolation from efficiency of reciprocating pump based on shaft work
from heuristic)
Shaft power 174 kW
Electric Power = = = 200kW
0.86

Yearly cost = Electric power x Cost x Stream factor

365
Yearly cost = 200 kW x 0.567/kWh x 0.92 x 24 hr x
1
= 913 913.28 CNY
= $128 947.20

Compressor
Shaft work = 208kW
Efficiency = 0.93 (from figure 8.7 (Turton et, al, 2013) )

54
 Shaft power 174 kW
Electric Power = = = 223.7 kW
0.93

Yearly cost = Electric power x Cost x Stream factor

365
Yearly cost = 223.7 kW x 0.567/kWh x 0.92 x 24 hr x
1
= 1 022 212.0 CNY
= $ 147 386.24

Heat Exchanger

Heat duty = 1 179.2 kW

365
Yearly cost = 1 179.2kW x 0.567/kWh x 0.92 x 24 hr x
1

= 5 388 432.7CNY x 3 Heat Exchanger (considering same)

= 16 165 298.10 CNY

= $2 330 771.36

Utilities cost, CUT = $ 48 495 381.20

Type of Manufacturing Cost Cost ($)

Operating 112 172

Raw Material 254 179 042.70

Utility 48 495 381.20

Total $302 786 595.90

= 0.18 + 2.73 + 1.23( + + )

= 0.18($2 719 980.04) + 2.73($112 172) + 1.23($48 495 381.20 + $254 179 042.70)

The cost of waste treatment is not available with reason that the by-product is not
considered waste and can be sold to other manufacturing companies.

= $373 085 367.40

55
5.4 Revenue

Flowrate of propylene = 49895.16kg/hr (stream 20)

Yearly revenue from propylene sales

0.958 1
= (24 ) (365 ) (49895.16 ) ($ )( ) (0.92) = $385,226,240.40/
1

5.5 Cost Of Plot Of Land

Our plant will be based in Pudong, Shanghai. The cost for 5 hectares of land is $500 000 per
5 hectares

5.6 Working Capital

The working capital is 20% of the fixed capital investment therefore

= 0.2($2 719 980.04) = $543 996.01

6.0 PROFITABILITY ANALYSIS

COMd = $373 085 367.40

Land Cost = $500 000

Fixed Capital Investment = $2 719 980.04

Revenue = $385 226 240.40

Corporate Tax Rate in Shanghai = 25%

Project life = 10 years

Working Capital = $543 996.01

56
6.1 Non-discounted Profitability

End of Year After Tax

Investment depreciation FCI-d Revenue COMd
Cash Flow
0 -500,000.00 - 2,719,980.04 - - -
- -
1 543,996.01 2,175,984.03 353,124,053.70 373,083,367.40
3,263,976.05 14,833,486.27
2 0.00 870,393.61 1,849,586.43 385,226,240.40 373,083,367.40 9,324,753.15
3 0.00 522,236.17 2,197,743.87 385,226,240.40 373,083,367.40 9,237,713.79
4 0.00 313,341.70 2,406,638.34 385,226,240.40 373,083,367.40 9,185,490.18
5 0.00 313,341.70 2,406,638.34 385,226,240.40 373,083,367.40 9,185,490.18
6 0.00 156,670.85 2,563,309.19 385,226,240.40 373,083,367.40 9,146,322.46
7 0.00 0.00 0.00 385,226,240.40 373,083,367.40 9,107,154.75
8 0.00 0.00 0.00 385,226,240.40 373,083,367.40 9,107,154.75
9 0.00 0.00 0.00 385,226,240.40 373,083,367.40 9,107,154.75
10 1,043,996.01 0.00 0.00 385,226,240.40 373,083,367.40 9,107,154.75
End of After Tax Cash
Investment depreciation FCI-d Revenue COMd Cash Flow Cum cash flow
Year Flow
0 -500,000.00 - 2,719,980.04 - - - -500,000.00 -500,000.00
1 -3,263,976.05 543,996.01 2,175,984.03 353,124,053.70 373,083,367.40 -14,833,486.27 -18,097,462.32 -18,597,462.32
2 0.00 870,393.61 1,849,586.43 385,226,240.40 373,083,367.40 9,324,753.15 9,324,753.15 -9,272,709.17
3 0.00 522,236.17 2,197,743.87 385,226,240.40 373,083,367.40 9,237,713.79 9,237,713.79 -34,995.38
4 0.00 313,341.70 2,406,638.34 385,226,240.40 373,083,367.40 9,185,490.18 9,185,490.18 9,150,494.80
5 0.00 313,341.70 2,406,638.34 385,226,240.40 373,083,367.40 9,185,490.18 9,185,490.18 18,335,984.97
6 0.00 156,670.85 2,563,309.19 385,226,240.40 373,083,367.40 9,146,322.46 9,146,322.46 27,482,307.44
7 0.00 0.00 0.00 385,226,240.40 373,083,367.40 9,107,154.75 9,107,154.75 36,589,462.19
8 0.00 0.00 0.00 385,226,240.40 373,083,367.40 9,107,154.75 9,107,154.75 45,696,616.94
9 0.00 0.00 0.00 385,226,240.40 373,083,367.40 9,107,154.75 9,107,154.75 54,803,771.69
10 1,043,996.01 0.00 0.00 385,226,240.40 373,083,367.40 9,107,154.75 10,151,150.76 64,954,922.45

Payback Period

+ = $500 000 + $543 996.01 = $1 043 996.01

We observe from table that the working capital was recovered between year 3 and 4
therefore

$3 763 976.05 ($34 995.38)

= (3 4) ( ) + 3 = 3.5
$9 150 494.17 ($34 995.38)

= $64 954 922.45

$83 552 384.77

=
$500 000 + $18 097 462.32

57
 = 4.5 > 1

( ) $64 954 922.45

= =
+ + 10 $3 763 976.05

= 1.73

Cumulative Cash Flow Diagram

60,000,000.00

50,000,000.00

40,000,000.00

30,000,000.00

20,000,000.00

10,000,000.00

0.00
1 2 3 4 5 6 7 8 9 10
-10,000,000.00

-20,000,000.00

-30,000,000.00

58
6.2 Discounted Profitability

Discount factor = 16%

End of Cash Flow Cash Flow Cumulative

Year (non -discounted) (discounted) Discounted Cash Flow

0.00 -500,000.00 -500,000.00 -500,000.00

1.00 -18,097,462.32 -15,601,260.62 -16,101,260.62
2.00 9,324,753.15 6,929,810.61 -9,171,450.02
3.00 9,237,713.79 5,918,212.23 -3,253,237.79
4.00 9,185,490.18 5,073,064.45 1,819,826.66
5.00 9,185,490.18 4,373,331.43 6,193,158.09
6.00 9,146,322.46 3,754,037.21 9,947,195.30
7.00 9,107,154.75 3,222,380.28 13,169,575.59
8.00 9,107,154.75 2,777,914.04 15,947,489.62
9.00 9,107,154.75 2,394,753.48 18,342,243.11
10.00 10,151,150.76 2,301,099.43 20,643,342.54

(4 5)($3 763 976.05 $1 819 826.66)

= + 4 = 4.5
($6 193 158.09 $1 819 826.66)

= $20 643 342.54

$36 744 603.16

=
$16 101 260.62

= 2.28 > 1

59
 End of Cash Flow NPV NPV NPV NPV
Year (Discounted) (i = 0) (i = 0.1) (i = 0.2) (i = 0.28)

0 -500,000.00 i=0 -500,000.00 -500000 -500,000.00

1 -15,601,260.62 -500,000.00 -14,182,964.20 -13001050.52 -12,188,484.86
2 6,929,810.61 -15,601,260.62 5,727,116.20 4812368.477 4,229,620.73
3 5,918,212.23 6,929,810.61 4,446,440.44 3424891.335 2,822,023.50
4 5,073,064.45 5,918,212.23 3,464,971.28 2446500.99 1,889,863.78
5 4,373,331.43 5,073,064.45 2,715,494.73 1757543.815 1,272,806.96
6 3,754,037.21 4,373,331.43 2,119,056.14 1257219.467 853,569.24
7 3,222,380.28 3,754,037.21 1,653,590.60 899307.1976 572,409.73
8 2,777,914.04 3,222,380.28 1,295,917.40 646054.0213 385,513.02
9 2,394,753.48 2,777,914.04 1,015,609.25 464119.2682 259,639.69
10 2,301,099.43 2,394,753.48 887,173.44 371640.4053 194,910.70
TOTAL 36,744,603.16 2,301,099.43 8,642,405.29 2,578,594.46 -208,127.51

Discount Rate (%) NPV

0 2,301,099.43
10 8,642,405.29
20 2,578,594.46
28 -208,127.51

By interpolation we acquire the discount rate at NPV value of zero

(28 20)($0 $2 578 594.46)

= + 20
($208 127.51 2 578 594.46)

= 20 + 7.4 = 27.4%

60
 Discounted Cumulative Cash Flow
10,000,000.00

5,000,000.00

0.00
1 2 3 4 5 6 7 8 9 10 11

-5,000,000.00

-10,000,000.00

-15,000,000.00

-20,000,000.00

61
7.0 SAFETY ANALYSIS
Material Safety Data Sheet Safety handling and storage

Propylene

Propylene is extremely flammable. It may explode when heated. It may explode at high
temperatures and pressure (955 atm; 327C).
Safety handling Ground and bond all lines and equipment associated with
product system.
All equipment should be non-sparking and explosion
proof. Remove all sources of ignition. Ensure adequate
ventilation. "NO SMOKING" signs should be posted in
storage and use areas.
Safety storage Outside or detached storage is preferred.
Protect from physical damage.
Cylinders should be stored upright with valve protection
cap in place and firmly secured to prevent falling.
Store in cool, dry, well-ventilated area of non-combustible
construction away from heavily trafficked areas and
emergency exits.
Keep at temperatures below 52C / 125F.

Propane

Safety handling Do not drop or roll any container.

Keep all container valves closed when not in use.
Keep protective caps (if applicable) on containers when
not in use.
Safety storage Keep containers away from heat sources or temperatures
exceeding 130F.
Store and transport containers with relief valves in vapour
space.
Containers, even those that have been emptied, can
contain explosive vapours. Do not cut, drill, grind, weld or
perform similar operations on or near containers.

Pentane

Safety handling Keep away from heat. Keep away from sources of
ignition. Ground all equipment containing material. Do not
ingest.
Do not breathe gas/fumes/vapour/spray.
Wear suitable protective clothing. In case of insufficient
ventilation, wear suitable respiratory equipment.
If ingested, seek medical advice immediately and show
the container or the label. Avoid contact with skin and
eyes.
Keep away from incompatibles such as oxidizing agents.
Safety storage Store in a segregated and approved area.
Keep container in a cool, well-ventilated area. Keep
container tightly closed and sealed until ready for use.

62
 Avoid all possible sources of ignition (spark or flame). Do
not store above 25C (77F).

Butane

Safety handling Keep away from flame, sparks and excessive

temperatures.
Bond and ground containers.
Use only in well ventilated areas.
Safety storage Keep away from flame, sparks and excessive
temperatures.
Store only in approved containers.

Butene

It is flammable in air. Butene will rapidly or completely vaporize at normal pressure and
temperature, or is readily dispersed in air and will burn readily.
Safety handling Earth-ground and bond all lines and equipment
associated with the butene system. Electrical equipment
should be non-sparking or explosion proof.
Compressed gas cylinders should not be refilled except
by qualified producers of compressed gases.
Safety storage Store only where temperature will not exceed 125F
(52C).
Post No Smoking or Open Flames signs in storage and
use areas. There must be no sources of ignition
Cylinders should be stored and used in dry, cool, well
ventilated areas away from sources of heat or ignition. Do
not store with oxidizers

Hydrogen

Safety handling Keep away from heat, hot surfaces, sparks, open flames
and other ignition sources. No smoking. Use only non-
sparking tools. Use only explosion-proof equipment.
Safety storage Keep away from heat, hot surfaces, sparks, open flames
and other ignition sources. No smoking. Use only non-
sparking tools. Use only explosion-proof equipment.
This gas is heavier than air and in an enclosed space
tends to accumulate near the floor, displacing air and
pushing it upward. This creates an oxygen-deficient
atmosphere near the floor. Ventilate space before entry.
Verify sufficient oxygen concentration.
When handling product under pressure, use piping and
equipment adequately designed to withstand the
pressures to be encountered.
Hazard and Operability Study (HAZOP)

63
HAZOP for CSTR Reactor
The reaction in this reaction is exothermic, and a cooling system is provided to remove
the excess energy of reaction. If the cooling flow is interrupted, the reactor temperature
increases, leading to an increase in the reaction rate and the heat generation rate.

This situation may cause a runaway reaction with a subsequent increase in the vessel
pressure possibly leading to a rupture of the vessel. The temperature within the reactor
is measured and is used to control the cooling water flow rate by a control valve.

The HAZOP analysis which can be adapted are in the plant for potential process
modifications are:
1. Installation of a cooling water flow meter and low flow alarm to provide an immediate
indication of cooling loss.
2. Installation of a high temperature alarm to alert the operator in the event of cooling
function loss.
3. Installation of a high temperature shutdown system that would automatically shut
down the process in the event of a high reactor temperature. The shutdown
temperature would be higher than the alarm temperature to provide the operator with
the opportunity to restore cooling before the reactor is shutdown.
4. Installation of a check valve in the cooling line to prevent reverse flow. A check valve
could be installed both before and after the reactor to prevent the reactor contents
from flowing upstream and to prevent the backflow in the event of a leak in the coils.
5. Periodic inspections and maintenance of the cooling coil to insure its integrity.
6. Evaluation of the cooling water source to consider any possible interruption and
contamination of the supply.

Figure shows the exothermic reaction

with cooling system in a reactor
(copyright by RMIT University 2003)

64
Possible hazard that may happen during handling reactor:
1. Explosions from uncontrolled chemical reactions due to overpressure or due to
release of energy from exothermal reactions (a result of mechanical damage or
corrosion).
2. Exposure to carcinogenic, mutagenic and teratogenic substances present in the
reactor, or released from the reactor during cleaning and maintenance work.
3. Exposure to high temperatures and heat-stress from chemical reactors.

Preventative measure that can be done if any possible hazard occur:

1. Check periodically electrical equipment for safety before use and call a qualified
electrician for testing and repair of faulty or suspect electrical equipment.
2. Install effective exhaust ventilation and air conditioning, especially in the
operator's workstation, in order to prevent air contamination and heat stress; if
necessary use chemicals to eliminate odours.
3. Use suitable protective clothing: appropriate headgear, goggles, earmuffs,
gloves, boots, etc.

65
8.0 WASTE MANAGEMENT

In PDH process, propane is selectivity dehydrogenated into propylene. Based on the

process, it is produces lower paraffin hydrocarbon which is the propane. Waste from the
plant can be treated by using Conventional Activated Sludge (AS) Plant; the proposed of the
plant is composing of two parts; first is the plug flow aeration tank unit for the biological
biodegradation of the waste compounds and second is the circular secondary settling tank.
or Sequencing Batch Reactor (SBR) Plant; the proposed of this plant is composing of two
parts; first is the sequencing batch reactor unit for the biological biodegradation and settling
of the waste compounds, and second part is the equalization tank.

The sequencing batch reactor (SBR) as in Figure 1 is a fill-and draw activated sludge
system for wastewater treatment. In this system, wastewater is added to a single "batch"
reactor, treated to remove undesirable components, and then discharged. Equalization,
aeration, and clarification can all be achieved using a single batch reactor. To optimize the
performance of the system, two or more batch reactors are used in a predetermined
sequence of operations. SBR treatment process is as stated:

1. Collection cum Equalization Tank:

The Influent is made to pass through the screens to remove bigger objects before
entering the equalisation tank. The Screened Influent is collected and equalized in this
tank. Coarse bubble diffusers are provided to keep the Influent in suspension and to give
mobility to the liquid in the equalization tank.

2. Sequential Batch Reactor Tank:

A specially designed tank is used for the processes of BOD removal, nitrification/de-
nitrification, phosphorus removal and sludge separation which are achieved continuously
and the process operates on the batch inflow and batch outflow principle. The phases of
aeration, settling, decantation occur sequentially and are controlled by an automation
system.

The aeration is through micro fine bubble diffusion and here are the details:

1. Disinfection; to ensure that the treated water is free from bacteria, disinfectant is
dosed.
2. Pressure sand filter; suspended particles in the treated water are removed by
passing through the Sand Filter Vessel. The vessel system has backwash provision.
3. Activated carbon filter; the treated water is passed through this media in order to
remove bad odour and colour if any.

66
Besides, SBR process advantages over conventional treatment process such as no settling
tank and return sludge pumps, the state-of-the-art PLC control system provides a completely
automatic operation of plant, the automatic operation results in minimal supervision
requirements, contributing to lower operating and maintenance costs, and lastly, low F/M
ratios result in significantly less waste sludge and due to its complete stabilization, sludge
can be directly disposed into environment without further treatment.

Figure 1: Sequencing batch reactor (SBR) process flow diagram.

67
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