MARGIN SEMUANYA 3 CM, KECUALI SISI KIRI 4 CM

TIMES NEW ROMAN UNTUK SEMUA FONT (TERMASUK PAGE NUMBER)

UKURAN 2.5 CM × 2.5 CM, HITAM

UNIVERSITAS INDONESIA

PRELIMINARY DESIGN OF INTEGRATED GASIFICATION

COMBINE CYCLE FOR POWER GENERATION WITH CO2
CAPTURE FOR ENHANCED OIL RECOVERY

HANYA JUDUL YANG 14 PT Disesuaikan sesuai jenis assignment (draft,

report, revised). Khusus untuk UTS, nama
menjadi “Mid Term Report” dan “Mid
Capitalize Each Word dan undelined Revised Assignment 5
Term Revised”. Khusus untuk UAS, nama

GROUP 21 menjadi “Final Report”.

GROUP PERSONNEL:
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CHEMICAL ENGINEERING DEPARTMENT

ENGINEERING FACULTY
DEPOK
DECEMBER 2016 TIDAK PAKAI KOMA
 EXECUTIVE SUMMARY

} JARAK 2 kali 1,5 SPACING

Cost index is important to estimate equipment cost in a certain year. In this
economic analysis, chemical engineering cost index used to predict the price of
equipment in the year of purchase. There are two types of cost index which are
commonly used: Marshall and Swift Equipment Cost and Chemical Engineering
Plant Cost Index (CEPCI). CEPCI is preferred in analyzing cost index of methanol
plant due to its simplicity. Capital expenditure should be known for convenience in
cost accounting and cost estimation. This expenditure is a one-time expense for the
design, construction, and start-up of a new plant or a revamp of an existing plant.
Preliminary estimate is based on the individual factors method of Guthrie, 1969,
1974.
Operating cost are cost incurred during plant operation such as the cost of
materials, labor, utilities cost, insurance, salary tax, building tax, depreciation,
distribution and marketing as well as administration. To calculate operating cost,
there are some assumptions used for calculate the operating costs. The assumptions
are as follows: plant operating life is 30 years, in one year, IGCC plant operated for
345 days, 5 days/ week, 24 hours, production capacity is 100% since the first-time
plant operated, and US$1 equal to Rp 13,200 based on Bank Indonesia (29th
November 2016). The cost of raw materials is the largest item of expense in the
manufacturing cost of product. The quantities of raw materials consumed are
calculated from material balances. Raw materials for methanol plant are coal,
MDEA, catalyst Fe2O3/Cr2O3, and NaOCl. Transportation from supplier to plant is
paid by supplier.
The income is gained from electricity and CO2. From the study, the high
case forecasts a CO2 price that begins in 2020 at $39 per ton. It increases to
approximately $53 in 2030 and $110 in 2050, representing a $55 per ton leveled
price over the period 2022-2050. The forecast of CO2 will be calculated as linear as
below and use the price of CO2 for 2020 at $39. As for electricity price, it is
necessary to sell below the buying price of PLN so that the bargaining will be done
in order to sell the product. The price given per kWh of electricity is Rp1070.3,00.
The product will be sold at Rp 1050,00 or equal to $0.08/kWh to PLN for
Sejajar ya
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Angka romawi, jarak 2,5 cm dari ARIAL 10 PT BOLD

bawah sama dengan autotext
distribution. In order to startup of the plant, a loan from a bank or investor is needed
to meet the initial capital and make the balance sheet. The equity in the first year is
considered to be zero because there is no initial cash owned. Annually, equity will
increase to rise, as the liability is dropped. 10 banks has been chosen to make loans
as a liability. The share capital is 57% for bank loans, while investors by 43%. The
internal revenue service allows a deduction for the “exhaustion, wear and tear and
normal obsolescence of equipment used in the trade or business.” Briefly, for
manufacturing expense estimates, straight line depreciation is used, and accelerated
methods are employed for cash flow analysis and profitability calculations.
Depreciation costs are costs caused by the use of the property so that the point value
decrease over time. Depreciation is calculated per equipment and depends on
Declining Balance Factor.
In profitability analysis, four different methods will be used for each
alternative equipment lines with its alternative location. WACC, Rate of Investment
(ROI), Payback Period, Net Present Value (NPV), Break Even Point (BEP), and
Internal Rate of Return (IRR) will be used.
Based on sensitivity analysis, the fluctuation in product price and raw
material price will change the parameter of economic profitability such as IRR,
NPV and payback period significantly. For IRR analysis, the value of sensitivity is
taken to the rate of target IRR. As shown in figure above, the influence of
fluctuations of product price and raw material cost on IRR, the IRR which reach
12% is gained by reducing the raw material cost to -30% or adding the product price
of CO2 until 50% or 100% of electricity price. The price of CO2 at that point is the
same as the price in 2037. If the product is sold based on nowadays price, the profit
will not be gained. If the product price of CO2 is decreased until 20% or raw
material price is fluctuated by 30%, the NPV value is negative and IRR<MARR,
which indicates deficit, these are the most sensitive parameter.
If this is compared to the price in US, which existing IGCC is mainly there,
the cost of electricity is about $0.2/kWh, which is more than 2 times of price of
electricity in Indonesia. And by the survey conducted by Ministry of Mineral
Resources in Indonesia, IGCC is not ready by now, and projected to be ready by
2030 or forth.
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 ISI DARI LIST OF
CONTENT/FIGURES/TABLES
SINGLE SPACE

LIST OF CONTENT
PERHATIKAN BAGIAN
YANG BOLD YA } JARAK 2 kali 1,5 SPASI

EXECUTIVE SUMMARY................................................................................... ii
LIST OF CONTENT ........................................................................................... iv
LIST OF FIGURES ...............................................................................................v
LIST OF TABLES ............................................................................................... vi
CHAPTER 1 CAPITAL ESTIMATE ..................................................................1
1.1 Cost Index ................................................................................................. 1
1.2 Capital Expenditure (CAPEX) ................................................................. 2
1.2.1 Direct Cost ........................................................................................ 3
CHAPTER 4 CONCLUSION ...............................................................................8
REFERENCES .......................................................................................................9
APPENDICES ......................................................................................................10
APPENDIX A PURCHASED EQUIPMENT COST CALCULATION .......... 10

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TIDAK ADA YANG LIST OF FIGURES
BOLD YA
} JARAK 2x 1,5 SPASI
Figure 1.1. Cost Index ............................................................................................. 1
Figure 1.2. TCI Breakdown .................................................................................... 2

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TIDAK ADA YANG LIST OF TABLES
BOLD YA
} JARAK 2 kali 1,5 SPASI
Table 1.1. Cost Index from 2017 to 2022 ............................................................... 1
Table 1.2. Components of Total Capital Investment (TCI) .................................... 3
Table 1.3. Calculation FOB .................................................................................... 5
Table 1.4. Total Bare Module Cost ......................................................................... 7

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 CHAPTER 1 ANGKA ARAB

CAPITAL ESTIMATE

1.1 Cost Index

} JARAK 2 kali 1,5 SPASI

Cost index is important to estimate equipment cost in a certain year. In this

economic analysis, chemical engineering cost index used to predict the price of
equipment in the year of purchase. There are two types of cost index which are
commonly used: Marshall and Swift Equipment Cost and Chemical Engineering
Plant Cost Index (CEPCI). CEPCI is preferred in analyzing cost index of methanol
plant due to its simplicity. CEPCI from 1950 to 2011 is shown in Table 1.1 and
Figure 1.1.

} JARAK 2 kali 1,5 SPASI UNTUK SETIAP GAMBAR

GAMBAR
700

600

500
Cost Index

400

300
JUDUL GAMBAR DAN TABLE
Capitalize Each Word 200

BOLD 100

0
1998 2000 2002 2004 2006 2008 2010 2012
Year

Figure 1.1. Cost Index

}JARAK 1,5 SPASI

From Figure 1.1, it can beGAMBAR

} JARAK 2 kali 1,5 SPASI
shown that cost index in the last two years
increases almost linearly. The average increase of cost index in 2009-2011 is 5.9%.
Using this value, cost index in 2012-2034 can be predicted. The result is given in
Table 1.1.

} JARAK 2 kali 1,5 SPASI UNTUK SETIAP TABEL

GAMBAR Table 1.1. Cost Index from 2017 to 2022
Year Cost Index
2017 827.9
2018 877
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Angka arab, jarak 2,5 cm dari

bawah sama dengan autotext
 Angka arab, jarak 1,5 cm dari bawah
dan 3 cm dari kanan (margin)
2

Table 1.1. Cost Index from 2017 to 2022 (continued) Jika terpotong, tambah
Year Cost Index “(continued)” di belakang judul
2020 984.2
2021 1042.7
2022 1104.6

To estimate equipment cost, all equipment is assumed to be bought in 2014.

Based on CEPCI in Table 1.1, equipment cost in 2014 can be estimated using
equation: Artinya “persamaan
PERSAMAAN DI cost index at present time
TENGAH
Present cost = original cost × cost index at original cost obtianed (1.1) pertama pada bab
pertama”
So, in equipment cost calculation, cost each equipment in reference year is
multiplied by ratio of its CEPCI.
1.2 Capital Expenditure (CAPEX)
Capital expenditure should be known for convenience in cost accounting
and cost estimation. This expenditure is a one-time expense for the design,
construction, and start-up of a new plant or a revamp of an existing plant. As a
project for manufacturing a new or existing chemical by a new process progresses
from laboratory research through pilot plant development to a decision for plant
construction, a number of process-design studies of increasing complexity may be
made, accompanied at each step by capital-cost estimates of increasing levels of
accuracy as follows: order-of-magnitude estimate, study estimate, preliminary
estimate, and definitive estimate. The one which has been done up to this step is the
preliminary estimate.
Preliminary estimate is based on the individual factors method of Guthrie,
1969, 1974. This method is best carried out after an optimal process design has been
developed, complete with a mass and energy balance, equipment sizing, selection
of materials of construction, and development of a process control configuration as
incorporated into a P&ID. To apply the method, the f.o.b. purchase cost of each
piece of major equipment must be estimated. The equation for the total capital
investment by Guthrie method is
CTCI = 1.18(CTBM + Csite + Cbuildings + Coffsite facililities ) + CWC (1.2)

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 3

The equation above does not account for royalties or plant startup. These
additional costs should be added if they are known or can be estimated. Complete
capital investment (TCI) components can be seen on Table 1.2 below.

Table 1.2. Components of Total Capital Investment (TCI)

SUMBER TABEL
(Source: Seider et al., 2003) ALIGN LEFT

1.2.1 Direct Cost SUBBAB DERAJAT KEDUA TIDAK BOLD

The direct cost in this plant includes total bare module, land and building,
offsite facilities, building plant, site development, and upporting facilities costs.
1.2.1.1 Total Bare Module (TBM) Cost SUBBAB DERAJAT KETIGA TIDAK BOLD

The calculation of equipment or total bare module cost is begun with the
calculation of FOB itself. FOB (Free On Board) is the bases cost of the equipment.
The parameter and the formula in Process and Product Design Principles by Seider
can be seen exactly in Table 16.32 or based on the vendor (catalog). To get an
estimate of the purchase cost at a later date, multiplying the cost from an earlier
date by the ratio called cost index is needed at that date a base cost index.
From the planning, the equipment purchasing on this plant will be done on
2020. Using the design specification for all equipment, the purchase cost can be
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 4

determined and later converted into 2020 purchase cost using the cost index. The
overall calculation can be seen on the table below total bare module cost than will
be depreciated. The depreciation will be conducted in the main equipment costs
using declining balance method of depreciation within 20 years of recovery period.

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 Table 1.3. Calculation FOB
Equipment Original Cost Original Cost (Marked Up $) Basis Year Basis Year Index Present Year Index FOB
Coal Storage (S-101) $ 177,600.00 177,600 2007 525.4 746.06 $ 252,189.30
Belt Conveyor (Y-101) $ 34,936.36 34,936 2007 525.4 746.06 $ 49,609.09
Belt Conveyor (Y-102) $ 34,936.36 34,936 2007 525.4 746.06 $ 49,609.09
Coal Crusher (SR-101) $ 99,386.66 199,387 2006 499.6 746.06 $ 297,747.01
Coal Crusher (SR-102) $ 199,386.66 199,387 2006 499.6 746.06 $ 297,747.01
Mixer (M-101) $ 30,000.00 30,000 2007 525.4 746.06 $ 42,599.54
Slurry and Coal Handling $ 21,500.00 21,500 2007 525.4 746.06 $ 30,529.67
Gasifier (R-101) $65,275,078.06 65,275,078 2007 525.4 746.06 $ 92,689,616.93
Absorber (T-401) $ 914,162.49 914,162 2007 525.4 746.06 $ 1,298,096.81
Rich MDEA Pump (P-401) $ 14,300.00 14,300 2007 525.4 746.06 $ 20,305.78
Stripper (T-402) $ 157,362.00 157,362 2013 657.3 746.06 $ 178,611.74
MDEA Tank (T-403) $ 16,500.00 16,500 2007 525.4 746.06 $ 23,429.75
Lean MDEA Pump (P-402) $ 22,500.00 22,500 2007 525.4 746.06 $ 31,949.66
Expander (K-501) $ 158,923.80 158,924 2007 525.4 746.06 $ 225,669.37
Heater (E-501) $ 116,000.00 116,000 2007 525.4 746.06 $ 164,718.23
WGS Reactor (R-501) $14,199,300.97 14,199,301 2007 525.4 746.06 $ 20,162,791.17
Separator CO2 Compression
V-601 $ 11,000.00 11,000 2004 444.2 746.06 $ 18,475.15
V-602 $ 9,000.00 9,000 2004 444.2 746.06 $ 15,116.03
V-603 $ 29,000.00 29,000 2004 444.2 746.06 $ 48,707.20
Gas Turbine (K-703) $51,418,330.61 51,418,331 2010 550.8 746.06 $ 69,646,259.50
Steam Turbine (K-704) $ 6,948,400.00 6,948,400 2012 620.5 746.06 $ 8,354,429.18
HRSG $ 100,000.00 100,000 2006 499.6 746.06 $ 149,331.47
Pump (P-701) $ 20,500.00 20,500 2007 525.4 746.06 $ 29,109.69
Compressor CO2 Compression
K-601 $ 1,314,000.00 1,314,000 2007 525.4 746.06 $ 1,865,859.99
K-602 $ 1,737,100.00 1,737,100 2008 575.4 746.06 $ 2,252,312.87
K-603 $ 1,781,900.00 1,781,900 2009 521.9 746.06 $ 2,547,239.54
K-604 $ 1,632,400.00 1,632,400 2010 550.8 746.06 $ 2,211,089.95
K-701 $ 1,760,100.00 1,760,100 2011 585.7 746.06 $ 2,242,001.38
5 Universitas Indonesia
 Table 1.3. Calculation FOB (continued)

Equipment Original Cost Original Cost (Marked Up) Basis Year Basis Year Index Present Year Index FOB
Air Compressor (K-801) $ 1,224,400.00 1,224,400 2012 620.5 746.06 $ 1,472,160.94
Desalination Unit (D-801) $ 150,000.00 150,000 2006 499.6 746.06 $ 223,997.20
Water Tank (T-804) $ 50,000.00 50,000 2006 499.6 746.06 $ 74,665.73
Pump (P-801) $ 15,200.00 15,200 2006 499.6 746.06 $ 22,698.38
Cooling Water System $ 100,000.00 100,000 2006 499.6 746.06 $ 149,331.47
Slag Handling System $ 532,000.00 1,100,000 2006 499.6 746.06 $ 1,642,646.12
Sulfur Handling $ 5,709,000.00 5,709,000 2007 525.4 746.06 $ 8,106,693.07
Generator & Transformer $ 50,000.00 9,922,000 2007 525.4 746.06 $ 14,089,088.92
Wire and Cable $ 10,000.00 10,000 2006 499.6 746.06 $ 14,933.15
Combustor (R-701) $ 600,000.00 600,000 2007 525.4 746.06 $ 851,990.86
Sulfur Combustor (R-702) $ 600,000.00 600,000 2006 499.6 746.06 $ 895,988.79
Heat Exchanger
E-201 $ 106,667.10 106,667 2012 620.5 746.06 $ 128,251.50
E-202 $ 81,951.62 81,952 2012 620.5 746.06 $ 98,534.77
E-203 $ 122,882.10 122,882 2012 620.5 746.06 $ 147,747.65
E-301 $ 122,637.40 122,637 2012 620.5 746.06 $ 147,453.44
E-302 $ 94,472.67 94,473 2012 620.5 746.06 $ 113,589.49
E-303 $ 123,876.80 123,877 2012 620.5 746.06 $ 148,943.63
E-401 $ 100,899.20 100,899 2012 620.5 746.06 $ 121,316.45
E-405 $ 101,372.80 101,373 2012 620.5 746.06 $ 121,885.88
E-406 $ 121,767.00 121,767 2012 620.5 746.06 $ 146,406.91
E-407 $ 121,012.10 121,012 2012 620.5 746.06 $ 145,499.25
E-601 $ 112,842.30 112,842 2012 620.5 746.06 $ 135,676.27
E-602 $ 105,752.90 105,753 2012 620.5 746.06 $ 127,152.31
E-603 $ 98,839.72 98,840 2012 620.5 746.06 $ 118,840.23
E-604 $ 106,748.50 106,749 2012 620.5 746.06 $ 128,349.37
E-605 $ 106,776.70 106,777 2012 620.5 746.06 $ 128,383.28
E-606 $ 115,394.50 115,395 2012 620.5 746.06 $ 138,744.92
E-701 $ 110,757.70 110,758 2012 620.5 746.06 $ 133,169.85

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 Table 1.3. Calculation FOB (continued)

Equipment Original Cost Original Cost (Marked Up) Basis Year Basis Year Index Present Year Index FOB
E-702 $ 56,788.73 56,789 2012 620.5 746.06 $ 68,280.10
E-703 $ 3,235,600.00 3,235,600 2012 620.5 746.06 $ 3,890,333.18
E-704 $ 53,378.14 53,378 2012 620.5 746.06 $ 64,179.36
E-705 $ 143,015.60 143,016 2012 620.5 746.06 $ 171,955.23
E-706 $ 62,562.19 62,562 2012 620.5 746.06 $ 75,221.83
Boiler Utility $ 160,000.00 160,000 2012 620.5 746.06 $ 192,376.47

{ JARAK 2 kali 1,5 SPASI UNTUK SETIAP GAMBAR/TABEL

GAMBAR
Table 1.4. Total Bare Module Cost
Sub-process Equipment Required Unit Number Unit Price TBM Factor Total Bare Module
Coal Storage (S-101) 1 $ 252,189.30 1.41 $ 355,586.91
Belt Conveyor (Y-101) 1 $ 49,609.09 2.4 $ 119,061.82
Belt Conveyor (Y-102) 1 $ 49,609.09 2.4 $ 119,061.82
Coal Crusher (Cone Crusher) (SR-101) 1 $ 297,747.01 1.3 $ 387,071.12
Gasification
Coal Crusher (Ball Mills) (SR-102) 1 $ 297,747.01 1.3 $ 387,071.12
Mixer (M-101) 1 $ 42,599.54 2 $ 85,199.09
Slurry Pump (P-101) 1 $ 30,529.67 2.47 $ 75,408.29
Gasifier (R-101) 1 $ 92,689,616.93 1 $ 92,689,616.93
Absorber (T-401) 1 $ 726,300.00 4.2 $ 3,050,460.00
Rich MDEA Pump (P-401) 1 $ 20,305.78 2.47 $ 50,155.28
Acid Gas
Stripper (T-402) 1 $ 963,400.00 4.2 $ 4,046,280.00
Removal
MDEA Tank (T-403) 1 $ 23,429.75 3.2 $ 74,975.20
Lean MDEA Pump (P-402) 1 $ 31,949.66 2.47 $ 78,915.65
Water Gas Shift WGS Reactor (R-501) 1 $ 20,162,791.17 2.3 $ 46,374,419.68
E-201 1 $ 128,251.50 2.7 $ 346,279.05
Heat Exchanger
E-203 1 $ 147,747.65 2.7 $ 398,918.67

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 CHAPTER 4
CONCLUSION

After the explanation of the whole chapters, it concluded as:

 The average increase of cost index in 2009-2011 is 5.9%. Using this value, cost
index in 2012-2034 can be predicted
 TBM in this plant equals US$871,248,336 with direct cost as the biggest cost.

 This plant operating life is 30 years.

 TOC in this plant equals US$158,657,954.04.
 The income is gained from electricity and CO2. The forecast of CO2 as linear as
below and use the price of CO2 for 2020 at $39, while The price given per kWh
of electricity is Rp1070.3,00. The product is being sold at Rp 1050,00 or equal
to $0.08/kWh to PLN for distribution.
 The share capital is 80% for bank loans from 10 banks, while investors by 20%.
Total loan equals US$607.350.600,00.
 Depreciation is calculated per equipment and depends on Declining Balance
Factor.
 WACC is 10.68% and with MARR 3% above WACC it is 13.68%.
 ROI is calculated 5.63%.
 Based on calculation of interpolation in Microsoft Excel, the Payback Period of
the plant’s project is 17.36 years.
 Based on the assumption in cash flow calculation, a certain percentage of
products that is sold every year will be obtained, so interpolation of the amount
of product sold between the 17th and 18th year when the payback period occurs
will be obtained too.

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REFERENCES

Branan, Carl. 2005. Rules of Thumb for Chemical Engineers 4th Edition.
Amsterdam : Elsevier Inc.
Brownwell, L. E. & Young, E. H. 1959. Process Equipment Design: Vessel Design,
New York,United States of America, John Wiley & Sons Inc.
Chemical Industries Health and Safety Council. 1977. Hazard and Operability
Studies. London: Chemical Industries Association.
G. Speigth, James. 1980. Chemical And Process Design Handbook. New York :
McGraw-Hill.
Kletz, T. A. 1986. Notes on the Identification and Assessment of Hazard. London:
The Institution of Chemical Engineers.
Lees, F. P. 1981. Some Features of and Activities in HAZOP Studies. The
Chemical Engineer.
Perry, RH, Green, DW. 1999. Perry’s Chemical Engineering Handbook. McGraw-
Hil.
Rawlings, Ekerdt. 2002. Chemical Reactor Analysis and Design Fundamentals.
Austin, Texas : Nob Hill Publishing.
Richardson’s, Coulson. 1983. Chemical Engineering Design Volume 6,
Amsterdam, Elsevier Inc.
Seider, W. D., Seader, J. D. & Lewin, D. R. 2003. Product and Process Design
Principles, John Wiley and Sons, Inc.
Tica, H Gueguen, et al. 2011. Start-Up of Combined Cycle Power Plants. IFAC
World Congress. Workshop on Hierarchical and Distributed MPC:
Algorithms and Applications Start-Up: Milano.
Wallas, Stanley M. 1988. Chemical Process Equipment Selection and Design.
Butterworth-Heinemann

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APPENDICES

APPENDIX A
PURCHASED EQUIPMENT COST CALCULATION

Table A.1 Separator Cost

Equipment Diameter Height Material Pressure Quantity Cost Year
V-601 2.5506833 5.10136661 C.S 0.5 1 $11,000 2004
V-602 2.14792426 4.29584853 C.S 0.5 1 $9,000 2004
V-603 3.2893702 6.57874041 C.S 4 1 $29,000 2004