"Chemical Plant Financial Analysis Spreadsheet"

brought to you by The Chemical Engineers' Resource Page at: http://www.cheresources.com/ To help you optimize your chemical process, use this spreadsheet to calculate the Net Present Value of your various plant configurations. Simply click into each sheet and complete the cells that are: Yellow You'll find advice along the way in that some values that you may not be sure of are already set. I've included the utility costs the algorithms that appear in the following two references: 1. "Analysis, Synthesis, and Design of Chemical Processes", Turton, Richard, et al, Prentice Hall, 1998 2. "A Guide to Chemical Engineering Process Design and Economics", Ulrich, G.D., Wiley, 1984 Be sure to note the economic assumptions made on the "Summary Page". If you're looking for a true economic value, these values (along with the utility costs) will have to be updated for your current region or situation. If you are simply evaluating different processes or optimizing, as long as the same values are used for each, this spreadsheet will function quite nicely, although the true Net Present Value may not be accurate. Finally, all dollar amounts are reported in US dollars.

Fixed Capital Investment

Equipment Name Installed Cost
C-301 A/B R-301 (F) P-301 A/B P-302 A/B P-303 A/B P-304 A/B E-301 E-302 E-303 E-304 E-305 FIC's LIC's V-301 T-301 T-302 T-303 X-301 $993,028 $7,515,317 $95,624 $136,988 $37,576 $32,120 $302,252 $277,250 $2,756,200 $9,220,222 $21,419 $4,800 $4,000 $129,576 $2,819,369 $638,051 $2,581,764 $0

Name

Installed Cost

List your equipment by nam enter the Fixed Capital Inv will take into account the a building the plant.

There is a large difference installed cost of a piece o purchased cost, you can m as shown below:

4.74 for Fluid Processing P 3.63 for Solid 3.10 for Solid Processing P

Total $27,565,556 Fixed Capital Investment Multiplier= 1.5 (Default is 1.5) FCI $41,348,334

List your equipment by name and installed cost. Then enter the Fixed Capital Investment Multiplier. This multiplier will take into account the additional cost associated with building the plant. There is a large difference between purchased cost and the cost of a piece of equipment. If you only know the purchased cost, you can multiply this cost by a "Lang" factor as shown below: 4.74 for Fluid Processing Plants 3.63 for Solid-Fluid Processing Plants 3.10 for Solid Processing Plants

Operating Labor
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Equipment Name
C-301 A/B R-301 (F) P-301 A/B P-302 A/B P-303 A/B P-304 A/B E-301 E-302 E-303 E-304 E-305 FIC's LIC's V-301 T-301 T-302 T-303 X-301 0 0 0 0 0

Installed Cost
$993,028 $7,515,317 $95,624 $136,988 $37,576 $32,120 $302,252 $277,250 $2,756,200 $9,220,222 $21,419 $4,800 $4,000 $129,576 $2,819,369 $638,051 $2,581,764 $0 $0 $0 $0 $0 $0

Name
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Installed Cost
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Enter the expected annual salaries of operators in the plant

$46,000 US

Now based on the equipment list that you have above, enter the total number of each type of unit in the space below. You may not have auxiliary equipment in your list, but you should enter the number of pieces below. For example, if you have 6 heat exchangers in your equipment list, you should enter "6" under "heat exchangers". Also, if you have heat exchangers with cooling water in them, you'll probably have at least one cooling tower as well. Equipment Auxiliary Facilities Air Plants Boilers Chimneys and Stacks Cooling Towers Water Demineralizers Electric Generation Plants Portable Generation Plants Electric Substations Incinerators Mechanical Refrigeration Units Waste Water Treatment Plants Water Treatment Plants # of units Operators per shift 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Number of Operators Need Annual Cost of Operating Labor

Process Equipment Evaporators Vaporizers Furnaces Fans Blowers and Compressors Heat Exchangers Towers Vessels Pumps Reactors

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Equipment Operators per Shift Auxiliary Facilities Air Plants 1.0 Boilers 1.0 Chimneys and Stacks 0.0 Cooling Towers 1.0 Water Demineralizers 0.5 Electric Generation Plants 0.5 Portable Generation Plants 3.0 Electric Substations 0.0 Incinerators 2.0 Mechanical Refrigeration Units 0.5 Waste Water Treatment Plants 2.0 Water Treatment Plants 2.0 Process Equipment Evaporators 0.30 Vaporizers 0.05 Furnaces 0.50 Fans 0.05 Blowers and Compressors 0.15 Heat Exchangers 0.10 Towers 0.35 Vessels 0.00 Pumps 0.00 Reactors 0.50

ype of unit in the space below. pieces below. 6" under "heat exchangers". east one cooling tower as well.

Total Number of Operators Needed Annual Cost of Operating Labor (Col)

= = $0

Utilities
Utility Air Supply Description Pressurized and Dried a. Process b. Instrument Process Steam: Latent Heat Steam from Boilers a. Low Pressure (5 barg, 160 0C) b. Medium Pressure (10 barg, 184 0C) c. High Pressure (41 barg, 254 0C) Process Cooling Water Cooling Tower Water 30 0C to 40-45 0C High purity water for Other Water a. Process Use b. Boiler Feed Water c. Potable (drinking) d. Deionized Water Electric Distribution Electrical Substation 110V, 220V, 440V a. Fuel Oil (no. 2) Fuels b. Natural Gas c. Coal (FOB mine mouth) a. Moderately Low Temp: 5 0C Refrigeration b. Low Temp: -20 0C c. Very Low Temp: -50 0C a. Moderately High Temp: to 330 0C Thermal Oil Systems b. High Temp: to 400 0C c. Very High Temp: to 600 0C a. Non-Hazardous Waste Disposal b. Hazardous Waste Water Treatment a. Primary (filtration) b. Secondary (filtration + activated sludge) c. Tertiary (filtration, activated sludge, chem proc) Cost $/GJ

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Utility costs vary widely from region to region, you can change these values as you see fit Cost $/common unit $2.30 $4.70 $3.17 $3.66 $5.09 $6.62 $7.31 $8.65 $6.70 $0.04 $2.54 $0.26 $1.00 $16.80 $4.00 $2.50 $1.20 $20.00 $32.00 $60.00 $4.90 $5.20 $5.90 $0.06 $170.00 $0.09 $31.00 Process cooling duty Process cooling duty Process cooling duty Process heating duty Process heating duty Process heating duty $36.00 $145.00 $39.00 $41.00 $53.00

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Equipment (enter a description) Name Utility Type

per 100 m3 per 100 m3 per 1000 kg per 1000 kg per 1000 kg per 1000 m3 per 1000 kg per 1000 kg per 1000 kg per 1000 kg C-301 A/B R-301 (F) P-301 A/B P-302 A/B P-303 A/B P-304 A/B E-301 E-302 E-303 E-304 E-305 FIC's LIC's V-301 T-301 T-302 T-303 X-301 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

**This can also be used as condensate return credit amount

per kWh per m3 per std m3 **Based on lower heating value per metric tonne

per metric tonne per metric tonne per 1000 m3 per 1000 m3 per 1000 m3

Utility Cost Not Associated with Equipme

Description

(Calc from Table at Left)

Annual Utility Cost

As an example, let's say that your reactor needs to be mainted at 350 0C by a Therminol or Dowtherm loop within the plant. The heating duty turns out to be about 75,000 GJ per year. Your utility calculation for the reactor would be: (75,000 GJ/year) x ($5.2/GJ) = $390,000 per year The $5.2/GJ is from the utility table under thermal systems

Total Utility Cost per Year (Cut)

$0.00

ciated with Equipment

Utility Cost

Raw Materials and Profits

Enter any raw material costs. Remember that sometimes, utilities can be used as raw materials. Some processes may utilize low pressure steam as a reactor feed for example.

Raw Material
LPS Propylene De. Water

Annual Cost $945,000.00 $18,344,000.00 $20,304.00

Total Annual Raw Material Cost (Crm) =

Enter any profits. These should consists of your main, salable reaction products as well as any generated utilities that can be sold. Low pressure steam, for example, can be generated in heat exchangers and sold to other facilities. Or condensed steam can be credited as boiler feed water at times

Profit Material
Acrylic Acid Acetic Acid Boiler Feed Water

Annual Profit $96,053,000.00 $24,345,000.00 $6,235,000.00

Total Annual Profits =

w materials.

$19,309,304.00

well as any generated utilities ngers and sold to other facilities.

nual Profits =

$126,633,000.00

Table A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop included

Total Installed Cost:

$27,565,556

Operating Labor
Col = $0

FCI Raw Materials

Crm=

$41,348,334

Utilities
Cut= $19,309,304 $0

Profit from Products

Annual Revenue= $126,633,000

The following assumptions are made in the cash sheet shown below: 1. Two years for construction of plant 2. Five year depreciation schedule 3. 10 year plant operating life 4. Cost of constructing the plant is spread over two years 5. Taxation rate is defaulted to 40%, but can be changed below 6. The discounted cash flow rate is set at 8%, but can be changed below 7. Optimization function used is "Net Present Value"

Financial Outlook
COM= Year 0 1 2 3 4 5 6 7 8 9 10 11 $31,193,144.04 (without depreciation) **assume 15% of FCI as salvage value** Depreciation FCI-deprec. Revenue COM Cash Flow Discount Cash $41,348,334 ($20,674,167) ($20,674,167) $41,348,334 ($20,674,167) ($19,142,747) $8,269,667 $33,078,667 $126,633,000 $31,193,144 $60,571,780 $51,930,539 $10,585,174 $22,493,494 $126,633,000 $31,193,144 $61,497,983 $48,819,082 $4,318,751 $18,174,743 $126,633,000 $31,193,144 $58,991,414 $43,360,450 $3,489,551 $14,685,192 $126,633,000 $31,193,144 $58,659,734 $39,922,829 $1,409,778 $13,275,414 $126,633,000 $31,193,144 $57,827,825 $36,441,339 $13,275,414 $126,633,000 $31,193,144 $57,263,914 $33,412,944 $13,275,414 $126,633,000 $31,193,144 $57,263,914 $30,937,911 $13,275,414 $126,633,000 $31,193,144 $57,263,914 $28,646,214 $13,275,414 $126,633,000 $31,193,144 $57,263,914 $26,524,272 $13,275,414 $126,633,000 $31,193,144 $63,466,164 $27,219,550 Cumulative Discounted ($20,674,167) ($39,816,914) $12,113,624 $60,932,706 $104,293,156 $144,215,986 $180,657,324 $214,070,268 $245,008,179 $273,654,392 $300,178,664 $327,398,214

Taxation rate= 0.4

Discount rate=

0.08

NPV= $327,398,214

Table A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop included

(Net Present Value)

Table A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop included

sheet

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