Capstone Design Project For Plant Design Steam Methane Reforming Plant

CAPSTONE DESIGN PROJECT FOR PLANT DESIGN
STEAM METHANE REFORMING PLANT
A Project Proposal
Presented to the Faculty of
College of Engineering, Architecture and Fine Arts
Batangas State University
Main Campus II
Alangilan, Batangas City
In Partial Fulfillment
Of the Requirements for the Degree of
Bachelor of Science in Petroleum Engineering
By:
Cuadrasal, Aniemhar D.
Lazarte, Arman Jade S.
Punzalan, Jessa Mae B.
PetE-5201
April 2019
CHAPTER I
DESIGN BACKGROUND
Hydrogen is a chemical element with symbol H and atomic number 1.
With a standard atomic weight of 1.008, hydrogen is the lightest element in
the periodic table. Its monatomic form (H) is the most abundant chemical
substance in the Universe, constituting roughly 75% of all baryonic mass. At
standard temperature and pressure, hydrogen is a colorless, odorless,
tasteless, non-toxic, nonmetallic, highly combustible diatomic gas with the
molecular formula H2. Since hydrogen readily forms covalent compounds with
most nonmetallic elements, most of the hydrogen on Earth exists in molecular
forms such as water or organic compounds.
Steam reforming or steam methane reforming is a chemical synthesis
for producing syngas, hydrogen, carbon monoxide from hydrocarbon fuels
such as natural gas. This is achieved in a processing device called a reformer
which reacts steam at high temperature and pressure with methane in the
presence of a nickel catalyst. Steam-methane reforming reaction
CH4 + H2O (+ heat) → CO + 3H2
The steam methane reformer is widely used in industry to make
hydrogen. There is also interest in the development of much smaller units
based on similar technology to produce hydrogen as a feedstock for fuel cells.
Small-scale steam reforming units to supply fuel cells are currently the subject
of research and development, typically involving the reforming of methanol,

but other fuels are also being considered such as propane, gasoline, autogas,
diesel fuel, and ethanol
HYDROGEN MARKET
DEMAND
According to this research report, the global hydrogen market is
anticipated to grow at a robust rate to reach a significant value by the
end of the year of assessment. The hydrogen market has been
experiencing steady growth during the 2012-2016 timeline. It is
projected to grow at a value of 6.1% throughout the period of
assessment, to reach a market value of more than US$ 200 Bn by end
of 2025 from a market valuation of about US$ 130 Bn in 2017.
In the region category, Asia Pacific is expected to be the largest
with a high market attractiveness. This region is characterized by high
demand for hydrogen based fuel vehicles in counties such as Japan. In
addition, automotive manufacturers are planning to establish auto
fuelling stations in the region. These aspects are pushing the growth of
the hydrogen market in Asia Pacific. According to the analysis from the
research report, Asia Pacific is expected to hold more than one-third of
the total market share in the coming years. In 2017, the hydrogen
market in Asia Pacific was valued at about US$ 35 Bn and is estimated
to touch a valuation of more than US$ 70 Bn by the end of the year of
assessment. Moreover, hydrogen market in this region is projected to
grow at the highest rate during the period of forecast.

Figure 1. Global Hydrogen Market Value
The hydrogen market in Europe is the second largest. The
increasing adoption of hydrogen across various industries in Europe
has presented potential opportunities for the growth of the global
market. The hydrogen market in Europe is projected to grow at a value
CAGR of 6.4% throughout the period of assessment.
SUPPLY
The hydrogen generation market size was valued at USD 108.1
billion in 2016 and is predicted to exhibit a CAGR of 5.8% by 2025.
Shifting trends such as rising focus on cleaner energy and favorable
government regulations are encouraging market expansion. Stringent
government regulations to control rampant use of fossil fuels, coupled
with introduction of gas-based fuel cell vehicles, is anticipated to boost
demand for hydrogen over the forecast period.

Figure 2. U.S. Hydrogen Generation Market Size
Based on application, the hydrogen generation market can be
segregated into coal gasification and steam methane reforming. Coal
gasification is slated to be the fastest growing segment in terms of
revenue, with a CAGR of 6.8%.
Figure 3. Global Hydrogen Generation Market Share
Steam methane reforming holds a substantial share in the
application segment. This is among the most used hydrogen production
processes in U.S. In this method, methane containing raw materials
like natural gas is heated to a temperature between 700°C to 1,000°C

The global hydrogen generation market is highly competitive
with major vendors such as Air Liquide, Air Products and Chemicals,
Hydrogenics, Messer Group, and The Linde Group competing on the
basis of price, quality, and market presence.
Air Liquide
Air Liquide is engaged in offering gas services. These gas
services are offered to large industries, healthcare, electronics,
engineering, and construction. The company also acts as an industrial
merchant and offers its services in welding, diving, and in the global
market and technologies segment.
Air Products and Chemicals
Air Products and Chemicals serves its customers on a global
scale with a unique portfolio of products, solutions, and services that
include atmospheric gases, process and specialty gases, electronics
and performance materials, equipment, and services in sectors such as
energy, chemicals, electronics, metals, and manufacturing.
Hydrogenics
Hydrogenics is involved in manufacturing, building, and installing
industrial as well as commercial hydrogen generation, MW-scale
energy storage solutions, and fuel cells. The company is expertise in
hydrogen generation, fueling stations, hydrogen fuel cell vehicles, fuel
cell power generation, and power-to-gas technologies.
Messer Group
Messer Group offers industrial, medical, and specialty gases to
various industries. The company is engaged in the production of
industrial gases such as oxygen, argon, nitrogen, hydrogen, carbon
dioxide, helium, shielding gases for welding, medical gases, specialty
gases, and a wide variety of mixed gases.
The Linde Group
The Linde Group offers gas services to various industries. These
gas services include services to sectors such as healthcare and
engineering. The company also provides logistics services to its
customers. The Linde Group is engaged in the global hydrogen
generation market through its industrial gases product segment.
CH4 0.8532
CO2 0.0221
C2H6 0.0705
C3H8 0.0273
i-Butane 0.0055
n-Butane 0.0094
i-Pentan 0.0027
n-Pentan 0.0027
n-Hexane 0.0018
n-Heptane 0.0013
n-Octane 0.0004
N2 0.0004
Table X. Composition of Natural Gas

LOCATION
Figure 4. Proposed location for the Steam-Methane Reforming Plant
The proposed Steam Methane Reforming Plant will be located at
Brgy.Tabangao, Batangas. Several factors are considered for the selection of
the location such as suitability of land and climate, ease of access to
transport, ease of access of raw materials, and environmental and safety
requirements. An area estimate of thirteen (13) hectares is proposed.
Brgy. Tabangao Batangas is a highly industrialized area which houses
some of the biggest industries in the Philippines like Pilipinas Shell Petroleum
Corporation, Malampaya Onshore Gas Plant, and JG Summit Petrochemical
Corporation. It is easily accessible by road and the depth of sea nearby is
enough for vessels such as ships to dock.
Raw materials such as steam and natural gas can be easily acquired.
Steam can be produced by pumping seawater from the sea nearby while
natural gas can be acquired from Malampaya Onshore Gas Plant. Natural gas
can also be imported from other countries by shipping.
The proposed location also has a good distance from residential areas
which decreases the likelihood for disturbance from plant processes. In turn,
the plant can open numerous job opportunities for the residents nearby.
FUEL SOURCE
The fuel of the plant will come from the plant itself. Waste gases and
some natural gas from the supply will be used. Utilization of heat from the
process will be maximized to improve the plant’s efficiency and reduce its fuel
consumption and emission. The electrical energy requirement of the plant will
be provided by the National Grid Corporation of the Philippines (NGCP).

CHAPTER II
DESIGN OBJECTIVES AND REQUIREMENTS
The principal thrust of this project proposal is to design a Steam
Methane Reforming Plant.
Specifically, this study aims to meet the following objectives for the
proposed plant in order to come up with a feasible and economical project
design
1. To be able to construct three (3) design options following some of
the engineering standards and realistic constraints.
2. To gather data and information needed in relation to technical and
economical aspects that will justify the viability of the proposed
project.
3. To assign the proper technical design specifications for the
equipment of the three design options following standard
requirements.
4. To determine the capacity and efficiency of each of the plant by the
computation of the following:
4.1 Material Balance
4.2 Energy Balance
5. To present acceptable designs having processes that are capable
of operating under conditions which will yield a profit providing an
evaluation and computations of the economical expenditures:

5.1 Capital Expenditures
5.2 Operating Expenditures
5.3 Net Present Values
5.4 Rate of Return
5.5 Payback Period
6. To provide safety and loss prevention in the process designs under
the following:
6.1 Identification and assessment of the hazards;
6.2 Control of hazards;
6.3 Control of the processes; and
6.4 Limitations of the loss
7. To provide a construction management, project scheduling of
assembling each sections of the plant’s manufacturer’s site and the
sequence and arrangement of the major items of equipment given
on the process flow sheet.

CHAPTER III
TECHNICAL DESIGN AND REQUIREMENTS
This chapter presents the data and information as well as the
assumptions related to the technical aspects and requirements needed for the
design of the steam methane reforming plant. Standards were used to come
up with a technically viable design. Technical catalogues were used to
carefully identify the design specifications of each equipment.
DESIGN OPTION 1 (SMR)
A. Process Flow Diagram
Figure 5. Process Flow Diagram for Design Option 1
Design option 1 is a traditional steam reforming (SMR) with carbon
capture from the syngas stream. The heat required in the reactor is delivered
by a furnace burning the process tail gas as well as additional natural gas if
needed.
B. Design Specification of each Equipment
Gas Heated Reformer (GHR) (Pre-Reformer)
The principle of the pre-reformer is to convert heavier hydrocarbons to
methane prior to the main reforming reactor. The pre-reforming reactor usually
contains a nickel catalyst bed and is basically a low temperature adiabatic
steam reforming unit. The temperature is normally in the range from 350– 550
°C. There are several benefits to pre-reforming, but most important is the
enabling of process optimization of methane reforming. This results in lower
feed consumption and hence a smaller reactor size. A sophisticated pre-
reformer is the gas heated reformer (GHR), also referred to as a convective
reformer. What differentiate it from the traditional steam methane reforming
(SMR) are the temperature range and the method of heat transfer. Where the
SMR reactors are heated by external combustion of natural gas in a system of
reactor tubes and burners, the GHR works as a heat exchanger, absorbing
energy by convective heat transfer with another gas.
Figure 6. Gas Heated reformer
Table 1. Design Specification of GHR

Type Gibbs Reactor
Operating Temperature 700ºC
Operating Pressure 25 bar
Efficiency 100%
S/C Ratio: 0.25 Mole-H2O/Mole-C
Steam Methane Reformer (SMR)
A widely used method to produce hydrogen from natural gas (NG) is by
the use of steam methane reforming (SMR). The reaction is endothermic and
converts steam and methane into H2 and CO. The reaction is a catalytic
reaction supported by nickel- based catalysts. Nickel-based catalysts are cost
efficient and have sufficient activity. When more activity is needed, a more
noble catalyst can be used. Nobel catalysts provide higher activities and faster
reactions but are very expensive. The reactor consists of several reactor
tubes filled with reforming catalysts and kept in a furnace that provides the
necessary heat for the reaction to happen.

Figure 7. Steam Methane Reformer
Type Gibbs Reactor
Efficiency 100%
S/C Ratio: 3 Mole-H2O/Mole-C
Water Gas Shift (WGS)
After the reforming process, the syngas undergoes a water gas shift,
where the CO is reacted with water, over a catalyst, to produce additional
hydrogen as well as CO2. The process is slightly exothermic and is
controlled by equilibrium.
The equilibrium constant is a function of temperature, meaning the
reaction is favourable at low temperatures. On the other hand, the reaction
rates diminish at low temperatures. Because of this the process is usually
done in two steps, a high temperature shift (HTS) and a low temperature shift
(LTS). In the HTS, the mole fraction of CO is reduced from typically 10-13% to
2-3%, with an inlet temperature between 350-550°C. In the LTS, the CO
concentration is further reduced to 0.2-0.4% at temperatures of 190-250. The
lower limit is set due to the water dew point of the gas. Condensation
could damage the catalysts in the WGS chamber.

Table 3. Design Specification of WGS
Type Equilibrium Reactor
High Temperature WGS
Operating Temperature 320
Efficiency 100%
Low Temperature WGS
Operating Pressure 22.5 bar
Efficiency 100%
CO2 ABSORPER
After the WGS, hydrogen and CO2 are produced and have to be
separated and purified. Concepts for CO2 separation are presented in this
section. CO2 absorption is a commercially mature technology and is
commonly used to remove CO2 from NG [8]. The liquid solvent can be
divided into two groups, chemical and physical solvents. Chemical
solvents react with CO2 and require heat to activate the reaction. Chemical
solvents offer fast reaction rates which results in smaller plant size. Physical
solvents do not react but dissolve CO2 and require less heat than chemical
solvents. Chemical solvents have relatively high capacity at low pressure
compared to physical solvents and are therefore preferred at low CO2 partial
pressures. The chemical solvents will begin to saturate with increasing CO2
partial pressures and physical solvents are therefore preferred at high CO2
partial pressures. The CO2 recovery and purity will depend on the syngas
composition and various solvents may be optimal for CO2 separation. Studies
have shown that MDEA can capture as much as 95% of the CO2 with a purity
of above 99%.
Figure 8. CO2 Absorper
Table 4. Design Specification of CO2 Absorper
Type Component Splitter
CO2 Purity 99.999%
CO2 Recovery Rate 95% mole-basis
Pressure Swing Absorber (PSA)
Over 85% of current global hydrogen production units use PSA
technology for hydrogen purification and is the most used hydrogen
purification technology today. When PSA is used to purify hydrogen, the
syngas is sent through an adsorption column at high pressures letting through
hydrogen while adsorbing CO2 and other impurities. The pressure inside the
column is then lowered near atmospheric pressure desorbing impurities

from the adsorption material. There are usually several columns
operating simultaneous making the hydrogen purification process semi-
continuous. Columns with multiple adsorbents are normally used when
purifying hydrogen. Typical adsorbents are silica gel, alumina, activated
carbon and zeolite. Operating temperature in PSA units is typically ambient
temperature receiving the feed syngas at a pressure between 20-60 bar.
Hydrogen is purified with a pressure drop between 1-2 bar. The off-gas exits
the unit with pressures between 1-2 bar. The PSA
unit produces hydrogen with a purity up to 99.9999% and with a hydrogen
recovery between 60-95%.
Figure 9. Pressure Swing Absorber
Table 5. Design Specification of Pressure Swing Absorber
Pressure Tail Gas 2 bar

H2 Purity 99.999%
H2 Recovery Rate 90% mole-basis
COMPRESSOR
Air is drawn in and compressed when passing through rows of rotating
blades and stationary vanes. At the end of the compressor, before reaching
the combustion chamber, the air is compressed to a certain pressure and
temperature by compression.
The H-Series serves the requirements of many industries, from air
separation, chemical, petrochemical, process air etc. It is widely known and
accepted as an efficient, dependable and cost-effective compressor solution
that comes as a standard package but also fully engineered to API
specifications.
Figure 10. Compressor
Table 6. Design Specification of Compressor
Type Centrifugal
Inlet pressure 1 bar
Outlet Pressure 1.2 bar

Inlet Temperature 25ºC
WATER PUMP
The pumps are installed for the circulation of water for steam
generation.
Figure 11. Water Pump
Table 7. Design Specification of Water Pump
Type Water Pump
Inlet Pressure 1 bar
Outlet Pressure 25 bar
Capacity 20000 kg/h
Fluid temperature 25ºC
Motor 60 Hz
GAS EXPANDER
It is a centrifugal or axial-flow turbine, through which a high-
pressure gas is expanded to produce work that is often used to drive
a compressor or generator. Natural Gas is expanded to decrease it feed
pressure going to the pre-reformer.
Figure 12. Gas Expander
Table 8. Design Specification of Expander
Type Gas Expander
Capacity 15000 m3/h

FURNACE
The furnace is as mentioned supplying the SMR with the
required heat by burning NG and the tail gas with air. The required air is
heated and supplied at a temperature of 335°C and a pressure of 1.2 bar
while the NG and tail gas is heated to a temperature of 500°C before entering
the furnace. Post combustion, the flue gas leaves the furnace at a
temperature of 1000°C and at atmospheric pressure. The flue gas is cooled
down to 100°C supplying heat to the reforming system.
Figure 13. Furnace
Table 9. Furnace
Type Gibbs Reactor

C. Mass Balance and Energy Balance Computations
Table 10. Mass Balance Calculations for Design Option 1
MASS BALANCE CALCULATIONS

Equipment Diagram Efficiency Computation
S + NG = M1
Steam= 2,722 kg/hr
Steam
GHR M1 100%
NG NG= 9,903 kg/hr
M1= 12,625 kg/hr
M1 + Steam = M2
M1 M1=12,625 kg/hr
SMR M2 100% Steam= 26,818 kg/hr
Steam M2=39,443 kg/hr
M2 = M3 + H20
M2=39,443 kg/hr
M2 M3
WGS 100% M3=29,908 kg/hr
H20= 9,535 kg/hr
H20
M3 M4 M3 + CO2 = M4
CO2 M3=29,908 kg/hr
100%
Absorber CO2=23,450 kg/hr
CO2 M4= 6,458 kg/hr
M4 = H2 + M5
M4 M5 M4=6,458 kg/hr
PSA 100% H2=3,848 kg/hr
M5= 2,610 kg/hr
H2
M5 + A + NG = FG + W
M5 M5= 2,610 kg/hr
Air
Flue Gas Air=60,957 kg/hr
NG
Furnace 100% NG=2,199 kg/hr
Waste
Flue Gas= 65,766 kg/hr
Waste = 0 kg/hr
Table 11. Energy Balance Calculations for Design Option 1
ENERGY BALANCE PREHEATING WATER TO GHR AND SMR

OPERATING CONDITIONS CALCULATIONS
Mwater=2,722kg/hr &26,818 kg/hr Q = mwaterCp water(t2-t1)
Cp water = 4.184 KJ/Kg K Q =( 2,722 + 26,818 Kg/hr )x 4.19 KJ/Kg K
T1 = 298.15 K  (623.15K – 298.15K)

Q = 40,226,095 KJ/hr
T2 = 623.15 K 
1ST WATER PUMP POWER OUTPUT GOING TO GHR

Mwater=2,722kg/hr Q = MD deltaP
Dwater = 1 kg/m3 Q =2,722 kg/hr x1 kg/m3 x (23.287x 100)KPa
Pump effciency = 100 % Q = 6338721.4 KJ/hr
DeltaP= 23.897 bar
2nd WATER PUMP POWER OUTPUT GOING TO GHR
Mwater=26,818 kg/hr Q = MD deltaP
DeltaP= 23.897 bar
ENERGY BALANCE PREHEATING STREAM TO GHR
Mwater=2,722kg/hr Q1 = mwaterCp water(t2-t1)
MNg=9,903kg/hr Q2 = mNGCp NG(t2-t1)
Cp water = 4.184 KJ/Kg K Q1 =( 2,722 Kg/hr)x 2.489 KJ/Kg K
Cp NG = 2.365 KJ/Kg K (673.15K – 623.15K) =338752.9 KJ/hr
T1w = 623.15 K  Q2 =( 9,903 Kg/hr)x 2.365KJ/Kg K

(673.15K –323.15K) = 8197208.25
T1NG = 323.15 K 
Qtotal= Q1 + Q2
T2 = 673.15 K  Qtotal = 8535961.15 KJ/hr
ENERGY BALANCE PREHEATING STREAM TO SMR

Mstream=12,625kg/hr Q2 = mstreamCstream(t2-t1)
Cp stream = 2.365 KJ/Kg K (973.15K – 623.15K) =23362730.51 KJ/hr
T1w = 623.15 K  Q2 =( 9,903 Kg/hr)x 2.365KJ/Kg K

(973.15K –973.15K) = 0 KJ/hr
T1stream = 973.15 K 
Qtotal= Q1 + Q2
T2 = 973.15 K  Qtotal = 23362730.51 KJ/hr
ENERGY BALANCE AT GHR

Mstream=12,625kg/hr Q = mstreamCstream(t2-t1)
Cp stream = 6.354 KJ/Kg K Q =( 12,625 Kg/hr)x 6.354 KJ/Kg K
T1stream = 623.15 K  (923.15K – 623.15K)

Q= 24067165.74 KJ/hr
T2 = 923.15 K 
ENERGY BALANCE AT SMR

Mstream=39,443 kg/hr Q = mstreamCstream(t2-t1)
Cp stream = 13.391 KJ/Kg K Q =( 39443 Kg/hr)x 13.391 KJ/Kg K
T1stream = 923.15 K  (1223.15K – 923.15K)

Q= 132046176.4KJ/hr
T2 = 1223.15 K 
ENERGY BALANCE COOLING OF SMR PRODUCT

T1stream = 1223.15 K  (593.15K – 1223.15K)

Q= - 71961379.68KJ/hr
T2 = 593.15 K 
ENERGY BALANCE AT WATER GAS SHIFTER

T1stream = 593.15 K  (298.15K – 593.15K)

Q= - 70317498.06KJ/hr
T2 = 298.15 K 
ENERGY BALANCE AT CO2 ABSORPTION

T1stream = 298.15 K  (388.15K – 298.15K)

Q= 46896802.62 KJ/hr
T2 = 388.15 K 
ENERGY BALANCE PREHEATING FURNACE INPUTS

Mtailgas=2,610kg/hr Q1 = mtailgasCp tailgas(t2-t1)
Mair=60,957kg/hr Q2 = mairCair(t2-t1)
MNG=2,199kg/hr Q3 = mNGCNG(t2-t1)
Cp tail gas = 3.41 KJ/Kg K Q1 =( 2,610 Kg/hr) x3.41 KJ/Kg K

Cp air = 1.0 KJ/Kg K (773.15K – 298.15K) =4233974.82 KJ/hr
Cp NG = 2.365 KJ/Kg K Q2 =( 60,957 Kg/hr)x 1.0 KJ/Kg K
T1tailgas = 298.15 K  (608.15K –298.15K) = 18896670 KJ/hr

Q3 =( 2,199 Kg/hr)x 2.365KJ/Kg K
T1air = 298.15 K 
(773.15K –323.15K) = 2340285 KJ/hr
T1NG = 323.15 K  Qtotal= Q1 + Q2 + Q3

Qtotal = 25470929.82KJ/hr
T2tailgas = 298.15 K
T2air = 608.15 K
T2NG = 773.15 K     
ENERGY BALANCE AT FURNACE

Mtailgas=2,610kg/hr Q= 132046176.4 KJ/hr
Mair=60,957kg/hr
MNG=2,199kg/hr
Tcombustion = 1273.15 K 
ENERGY BALANCE AT COOLING THE FLUE GAS

T1stream = 1273.15 K  (1273.15.15K – 373.15K)

Q= 76172671.92 KJ/hr
T2 = 373.15 K 
D. Plant Energy Efficiency
𝑳𝑯𝑽𝑯𝟐 ∗ 𝒎𝑯𝟐
𝜼=
(𝑳𝑯𝑽𝑵𝑮 ∗ 𝒎𝑵𝑮 ) + 𝑾𝒏𝒆𝒕
LHVH2 = 120 MJ/kg
mH2 =3848 kg/hr
LHVNG = 46.420 MJ/kg
mNG = 12,102 kg/hr
Wnet =0.37495 MW
1MJ/hr = .000277777778 MW
Solution:
𝑴𝑱 𝒌𝒈
𝟏𝟐𝟎 ∗ 𝟑𝟖𝟒𝟖
𝒌𝒈 𝒉𝒓
= 𝟎. 𝟖𝟏𝟗𝟗
𝑴𝑱 𝒌𝒈 𝟎. 𝟑𝟕𝟒𝟓𝟗𝟓 𝑴𝑱
𝟒𝟔. 𝟒𝟐𝟎 ∗ 𝟏𝟐𝟏𝟎𝟐 +
𝒉𝒓 𝒉𝒓 𝟎. 𝟎𝟎𝟎𝟐𝟕𝟕𝟕𝟕𝟕𝟕𝟕𝟖 𝒉𝒓
Figure 14. Plant Layout for Design Option 1
DESIGN OPTION 2 (SMR+)
A. Process Flow Diagram
In order to further reduce the carbon emissions, the natural gas feed to
the furnace is replaced by produced hydrogen. Thus, the CO2 emissions per
produced hydrogen is further reduced by 60 percent. The carbon captured
accounts for 90 percent of the produced CO2, making SMR+ an interesting
carbon-lean solution.
As mentioned earlier, the concept of SMR+ is to replace the furnace
NG feed with produced hydrogen in order to reduce CO2 emissions. Thus,
the optimal SMR conditions are used in SMR+ as well. It is possible to
achieve higher energy efficiencies with SMR+, but that would result in
increased emissions and the concept would be pointless.


Type Gibbs Reactor
Efficiency 100%
Steam Methane Reformer (SMR)
the use of steam methane reforming (SMR). The reaction is endothermic and
converts steam and methane into H2 and CO. The reaction is a catalytic
reaction supported by nickel- based catalysts. Nickel-based catalysts are cost
efficient and have sufficient activity. When more activity is needed, a more
noble catalyst can be used. Nobel catalysts provide higher activities and faster
reactions but are very expensive. The reactor consists of several reactor
tubes filled with reforming catalysts and kept in a furnace that provides the
necessary heat for the reaction to happen.

Figure 17. Steam Methane Reformer
Type Gibbs Reactor
Efficiency 100%
S/C Ratio: 3 Mole-H2O/Mole-C

Efficiency 100%
Low Temperature WGS
Efficiency 100%
CO2 ABSORPER
of above 99%.
CO2 Purity 99.999%
Pressure Swing Absorber (PSA)

Figure 19. Pressure Swing Absorber
Table 16. Design Specification of Pressure Swing Absorber

H2 Purity 99.999%
COMPRESSOR
specifications.
Type Centrifugal

WATER PUMP
generation.
Type Water Pump
Capacity 20000 kg/h
Motor 60 Hz
GAS EXPANDER
Type Gas Expander
Capacity 15000 m3/h

FURNACE
The furnace is as mentioned supplying the SMR with the
required heat by burning NG and the tail gas with air. The required air is
heated and supplied at a temperature of 335°C and a pressure of 1.2 bar
while the NG and tail gas is heated to a temperature of 500°C before entering
the furnace. Post combustion, the flue gas leaves the furnace at a
temperature of 1000°C and at atmospheric pressure. The flue gas is cooled
down to 100°C supplying heat to the reforming system.
Figure 23. Furnace
Table 20. Furnace
Type Gibbs Reactor


S + NG = M1
Steam
Steam= 3,498 kg/hr
GHR M1 100%
NG NG= 12,719 kg/hr
M1= 16,217 kg/hr
M1 + Steam = M2
M1 M1=16,217 kg/hr
SMR M2 100% Steam= 34,444 kg/hr
Steam M2=50,661 kg/hr
M2 = M3 + H20
M2=50,661 kg/hr
M2 M3
WGS 100% M3=37,316 kg/hr
H20= 13,345 kg/hr
H20
M3 M4 M3 + CO2 = M4
CO2 M3=37,316 kg/hr
100%
CO2 M4= 7,201 kg/hr
M4 = H2 + M5
M4=7,201kg/hr
M4 M5
PSA 100% H2=3,848 kg/hr
M5= 3,353 kg/hr
H2
M5 + A + NG = FG + W
M5 M5= 3,353kg/hr
Air
Flue Gas Air=71,231kg/hr
H2
Furnace 100% H2=1,094 kg/hr
Waste
Flue Gas= 75678 kg/hr
Waste = 0 kg/hr

Cp water = 4.184 KJ/Kg K Q =( 37942 Kg/hr )x 4.19 KJ/Kg K
T1 = 298.15 K  (623.15K – 298.15K)

Q = 51,667,518 KJ/hr
T2 = 623.15 K 

DeltaP= 23.897 bar
DeltaP= 23.897 bar
Q2 =( 9,903 Kg/hr)x 2.365KJ/Kg K
T1w = 623.15 K  (673.15K –323.15K) = 8197208.25
Qtotal= Q1 + Q2
T1NG = 323.15 K 
Qtotal = 8535961.15 KJ/hr
T2 = 673.15 K 

T1w = 623.15 K  Q2 =( 9,903 Kg/hr)x 2.365KJ/Kg K

(973.15K –973.15K) = 0 KJ/hr
Qtotal= Q1 + Q2
T2 = 973.15 K  Qtotal = 23362730.51 KJ/hr

T1stream = 623.15 K  (923.15K – 623.15K)

Q= 30901280.34 KJ/hr
T2 = 923.15 K 

T1stream = 923.15 K  (1223.15K – 923.15K)

Q= 176560274.2 KJ/hr
T2 = 1223.15 K 
ENERGY BALANCE COOLING OF SMR PRODUCT

T1stream = 1223.15 K  (593.15K – 1223.15K)
Q= - 92426782.32 KJ/hr
T2 = 593.15 K 

T1stream = 593.15 K  (298.15K – 593.15K)

Q= - 70317498.06KJ/hr
T2 = 298.15 K 

T1stream = 298.15 K  (388.15K – 298.15K)

Q= 90321136.2 KJ/hr
T2 = 388.15 K 



Q3 =( 2,199 Kg/hr)x 2.365KJ/Kg K
T1air = 298.15 K 
(773.15K –323.15K) = 2340285 KJ/hr
T1NG = 323.15 K  Qtotal= Q1 + Q2 + Q3

Qtotal = 34355278.82KJ/hr
T2air = 608.15 K
T2NG = 773.15 K     
ENERGY BALANCE AT FURNACE

Mair=60,957kg/hr
MNG=2,199kg/hr

T1stream = 1273.15 K  (1273.15.15K – 373.15K)

Q= 92703841.02 KJ/hr
T2 = 373.15 K 
𝜼=
LHVH2 = 120 MJ/kg
mH2 =3848 kg/hr
mNG = 12,719kg/hr
Wnet =0.4248 MW
1MJ/hr = .000277777778 MW
Solution:
𝑴𝑱 𝒌𝒈
𝟏𝟐𝟎 ∗ 𝟑𝟖𝟒𝟖
𝒌𝒈 𝒉𝒓
= 𝟎. 𝟕𝟖𝟎
𝑴𝑱 𝒌𝒈 𝟎. 𝟒𝟐𝟒𝟖 𝑴𝑱
𝟒𝟔. 𝟒𝟐𝟎 ∗ 𝟏𝟐𝟕𝟏𝟗 +
𝒉𝒓 𝒉𝒓 𝟎. 𝟎𝟎𝟎𝟐𝟕𝟕𝟕𝟕𝟕𝟕𝟕𝟖 𝒉𝒓

DESIGN OPTION 3
A. Process Flow Diagram (ATR)
ATR is a combination of non-catalytic POX and SMR. NG is partially
oxidised in a combustion zone, while steam is injected in a SMR zone. Hence,
both the POX and the SMR reactions are active simultaneously. This concept
also need pure oxygen input as well as a catalyst bed in the steam reforming
section of the reactor. The core benefits of this system is that the heat
generated by the POX reaction is consumed by the endothermic SMR
reaction.

Type Gibbs Reactor

Efficiency 100%
AUTOTHERMAL REFORMER (ATR)
The ATR reactors usually operate at temperatures between 900-1150 °C, with
pressure levels in the range 1 to 80 bar existing today. Figure below shows
the principles of the ATR reactor, with the different inputs and reaction zones.
No specific range was found for the typical energy efficiency of ATR, but it
should operate with lower energy efficiency than SMR.
Figure 26. ATR Reactor
Table 24. Design Specification of ATR Reactor
Type Gibbs Reactor

Efficiency 100%

Efficiency 100%
Low Temperature WGS
Efficiency 100%
CO2 ABSORPER
of above 99%.
CO2 Purity 99.999%
2 Pressure Swing Absorber (PSA)

Figure 28. 2 Pressure Swing Absorber
Table 27. Design Specification of 2 Pressure Swing Absorber
H2 Purity 99.999%
COMPRESSOR
specifications.
Type Centrifugal
WATER PUMP
generation.
Type Water Pump
Capacity 20000 kg/h
Motor 60 Hz
GAS EXPANDER
Type Gas Expander
Capacity 15000 m3/h

FURNACE
The furnace is as mentioned supplying the SMR with the required
heat by burning NG and the tail gas with air. The required air is heated and
supplied at a temperature of 335°C and a pressure of 1.2 bar while the NG and
tail gas is heated to a temperature of 500°C before entering the furnace. Post
combustion, the flue gas leaves the furnace at a temperature of 1000°C and at
atmospheric pressure. The flue gas is cooled down to 100°C supplying heat to
the reforming system.
Figure 32. Furnace
Table 31. Furnace
Type Gibbs Reactor


S + NG = M1
Steam
Steam= 3,241 kg/hr
GHR M1 100%
NG NG= 11,787 kg/hr
M1= 15,028 kg/hr
M1 + Steam + O2 = M2
M1=15,028 kg/hr
M1 O2=11,822 kg/hr
ATR O2 M2 100%
Steam Steam= 15,449 kg/hr
M2= 42,299 kg/hr
M2 + Steam = M3 + H20
Steam
Steam=1,159 kg/hr
M2 M3 M2=42,299 kg/hr
WGS 100%
M3=37,768 kg/hr
H20 H20= 5,690 kg/hr
M3 M4 M3 = M4 + CO2
CO2 M3=37,768 kg/hr
100%
CO2 M4=5,952 kg/hr
M4 = H2 + M5
M4 M5 M4=5,952 kg/hr
PSA1 100% H2=3,498 kg/hr
M5= 2,454 kg/hr
H2
M5 = H2 + M6
M5 M6 M5=2,454 kg/hr
PSA2 100% H2=350 kg/hr
M6= 2,104 kg/hr
H2
M6 + A = FG + W
M6
M6= 2,104kg/hr
Flue Gas
Air Air=4830/hr
Furnace 100%
Waste Waste = 0 kg/hr

Cp water = 4.184 KJ/Kg K Q =( 2,722 + 26,818 Kg/hr )x 4.19 KJ/Kg K
T1 = 298.15 K  (623.15K – 298.15K)

Q = 60417267.18 KJ/hr
T2 = 623.15 K 

DeltaP= 23.897 bar
DeltaP= 23.897 bar
T1w = 623.15 K  Q2 =( 9,903 Kg/hr)x 2.365KJ/Kg K

(673.15K –323.15K) = 8197208.25
T1NG = 323.15 K 
Qtotal= Q1 + Q2
T2 = 673.15 K  Qtotal = 12837053.1 KJ/hr

T1w = 623.15 K  Q2 =( 9,903 Kg/hr)x 2.365KJ/Kg K

(973.15K –973.15K) = 0 KJ/hr
Qtotal= Q1 + Q2
T2 = 973.15 K  Qtotal = 23362730.51 KJ/hr

T1stream = 623.15 K  (923.15K – 623.15K)
Q= 28721751.9 KJ/hr
T2 = 923.15 K 

T1stream = 923.15 K  (1223.15K – 923.15K)

Q= 132046176.4KJ/hr
T2 = 1223.15 K 
ENERGY BALANCE COOLING OF ATR PRODUCT

T1stream = 1223.15 K  (593.15K – 1223.15K)

Q= - 75396907.56KJ/hr
T2 = 593.15 K 

T1stream = 593.15 K  (298.15K – 593.15K)

Q= - 69892674.72KJ/hr
T2 = 298.15 K 

T1stream = 298.15 K  (388.15K – 298.15K)

Q= 587364.444 KJ/hr
T2 = 388.15 K 


Q3 =( 2,199 Kg/hr)x 2.365KJ/Kg K
T1air = 298.15 K 
(773.15K –323.15K) = 2340285 KJ/hr
T1NG = 323.15 K  Qtotal= Q1 + Q2 + Q3

Qtotal = 3269292.66 KJ/hr
T2air = 608.15 K
T2NG = 773.15 K     
ENERGY BALANCE AT TAIL GAS

Mair=60,957kg/hr
MNG=2,199kg/hr

T1stream = 1273.15 K  (1273.15.15K – 373.15K)

Q= 18119638.98 KJ/hr
T2 = 373.15 K 
𝜼=
LHVH2 = 120 MJ/kg
mH2 =3848 kg/hr
mNG = 11,787 kg/hr
Wnet = 5.0055 MW
1MJ/hr = .000277777778 MW
Solution:
𝑴𝑱 𝒌𝒈
𝟏𝟐𝟎 ∗ 𝟑𝟖𝟒𝟖
𝒌𝒈 𝒉𝒓
= 𝟎. 𝟖𝟏𝟕
𝑴𝑱 𝒌𝒈 𝟓. 𝟎𝟎𝟓 𝑴𝑱
𝟒𝟔. 𝟒𝟐𝟎 ∗ 𝟏𝟏𝟕𝟖𝟕 +
𝒉𝒓 𝒉𝒓 𝟎. 𝟎𝟎𝟎𝟐𝟕𝟕𝟕𝟕𝟕𝟕𝟕𝟖 𝒉𝒓
CHAPTER IV
ECONOMIC STUDY AND ANALYSIS
An economic study and analysis is necessary to support a potential
investment decision. The improved efficiency of the operation is often related to
increased investment cost and higher expenditure cost. The main objective of
this chapter is to establish the viability of each design option by performing
calculations such as capital expenditures (CAPEX), operating expenditures
(OPEX), and economic indicators such as net present value, payback period,
and rate of investment. A sensitivity analysis will also be done to highlight how
the individual systems are affected by variations in feedstock cost, financial
market situations, and facility design.
A. Price Target of Hydrogen Produced in the Philippines
This study aims to provide the cost of producing Hydrogen in the
Philippines. In this sub-chapter, the price at which the produced hydrogen will be
cost competitive will be determined.
According to the analysis made by V. Atland and D. Jakobsken, it was
estimated that the costs of liquefaction, storage, and transportation would be in
the range from 52.2 ₱/kgH2 of hydrogen produced to 112.4 ₱/kgH2 in 2030
(adjusted to exchange rate as of 22/02/19). The market analysis made by the
same study concluded that a marginal cost of 118.3 – 236.5 ₱/kgH2 is what to be
the expected cost in the current market. Hence, based on then conservative
liquefaction, storage, and transportation costs, a production price below 124.1
₱/kgH2 is necessary in order be competitive in a large-scale market.
B. Historical Demand for Hydrogen
The data presented below is the historical demand of Hydrogen for
Southeast Asia in tons from 2005 to 2015.
Table 34. Historical Demand of Hydrogen in Asia Pacific
(Navigant Research)
Year Net Weight (MMT)
2005 0.18
2006 0.26
2007 0.33
2008 0.51
2009 0.65
2010 0.81
2011 1.01
2012 1.13
2013 1.48
2014 1.56
Chart Title
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2008 2010 2012 2014 2016 2018 2020
Figure 34. Graphical representation of Hydrogen demand in Asia
Pacific
The demand for Hydrogen is consistently increasing annually. This is due
to the improvements in Fuel Cell Technology which paves the way to various
markets.
The supply for Hydrogen keeps on increasing annually. Technological
advancements in Steam Reforming Technology and increasing demand for
energy had contributed for the upward trend.
C. Future Demand for Hydrogen
Arithmetic straight-line method will be used to project the annual demands
for the future. Arithmetic straight-line method assumes that the annual increase
in the future will remain constant.
Formula:
𝑌𝑐 = 𝑎 + 𝑌𝑖 − 1
Where:
𝑌𝑛 − 𝑌𝑐
𝑎=
𝑁−1
Yc = initial value, Yn = final value, Yi = value for the year past, N = number
of years
5.5.6 Projected Demand for Hydrogen
1.56 − 0.18
𝑎=
10 − 1
𝑎 = 0.1533
Table 35. Projected values for Hydrogen demand
Year (Yi) a Yc: (Yi-1+a)
2015 0.1533 1.7133
2016 0.1533 1.8666
2017 0.1533 2.0199
2018 0.1533 2.1732
2019 0.1533 2.3265
2020 0.1533 2.4798
2021 0.1533 2.6331
2022 0.1533 2.7864

2023 0.1533 2.9397
2024 0.1533 3.093
Chart Title
3.5
2.5
1.5
0.5
0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Figure 35. Graphical representation of the projected Hydrogen
demand
The demand, as calculated, keeps an upward slope. Increasing
demand for Hydrogen is estimated to reach 3.093 million metric tons in
2028.
E. Historical Production of Hydrogen

The data presented below is the historical production of Hydrogen for
The data presented below is the historical demand of Hydrogen for
Table 36. Historical Production of Hydrogen in Asia Pacific
(Navigant Research)
Year Net Weight (MMT)
2009 0.17
2010 0.25
2011 0.31
2012 0.48
2013 0.63
2014 0.75
2015 0.98
2016 1.12
2017 1.25
2018 1.48
Chart Title
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
2008 2010 2012 2014 2016 2018 2020
Figure 36. Graphical representation of Hydrogen Production in Asia
Pacific
The supply for Hydrogen keeps on increasing annually. Technological
advancements in Steam Reforming Technology and increasing demand for
energy had contributed for the upward trend.
F. Future Production of Hydrogen
Arithmetic straight-line method will be used to project the annual demands
for the future. Arithmetic straight-line method assumes that the annual increase
in the future will remain constant.
Formula:
𝑌𝑐 = 𝑎 + 𝑌𝑖 − 1
Where:
𝑎=
𝑁−1
of years
Table 37. Projected values for Hydrogen production
Year (Yi) a Yc: (Yi-1+a)
2019 0.1456 1.6256
2020 0.1456 1.7712
2021 0.1456 1.9168
2022 0.1456 2.0624
2023 0.1456 2.208
2024 0.1456 2.3536
2025 0.1456 2.4992
2026 0.1456 2.6448
2027 0.1456 2.7904
2028 0.1456 2.936

Chart Title
3.5
2.5
1.5
0.5
0
2018 2020 2022 2024 2026 2028 2030
Figure 37. Graphical representation of the projected Hydrogen production
The production, as calculated, keeps an upward slope. Increasing
production for Hydrogen is estimated to reach 2.936 million metric tons in
2028.
G. Rated Plant Capacity
Rated plant capacity will be determined by using the calculated future
demand and supply for Hydrogen.
Table 38. Basis for market share projection
Unsatisfied
Year Demand, MMT Supply, MMT
Demand
2019 1.7133 1.6256 0.0877

2020 1.8666 1.7712 0.0954
2021 2.0199 1.9168 0.1031
2022 2.1732 2.0624 0.1092
2023 2.3265 2.208 0.1185
2024 2.4798 2.3536 0.1262
2025 2.6331 2.4992 0.1339
2026 2.7864 2.6448 0.1416
2027 2.9397 2.7904 0.1493
2028 3.093 2.936 0.157
Projected Supply and Demand

3.5
3
2.5
2
1.5
1
0.5
0
2018 2020 2022 2024 2026 2028 2030
Supply Demand
Figure 38. Graphical representation of the projected Hydrogen Supply and
Demand
Based on the projected annual unsatisfied demand, the proposed plant
will assume a 20% market share in year 2028 where the biggest unsatisfied
demand exists.
Plant Capacity = 0.2*0.157
Plant Capacity = 31400 MT per year or 92.3529 tons per day
Table 39. Production plan schedule for Hydrogen
Unsatisfied Daily Annual
Year Demand, Production, Production,
MMT Tons per day Tons per year
2019 0.0877 - -
2020 0.0954 - -
2021 0.1031 - -
2022 0.1092 - -
2023 0.1185 92.3529 31400
2024 0.1262 92.3529 31400
2025 0.1339 92.3529 31400
2026 0.1416 92.3529 31400
2027 0.1493 92.3529 31400

2028 0.157 92.3529 31400
The proposed plant will be constructed in 2020 until 2022. The plant will
be operational by the year 2023 and thus start the production. The plant will be
operating 345 days a year. The 20-day allotment is for plant shutdown for regular
maintenance to ensure the efficiency and the overall safety of the plant.
H. Fixed Capital Investment
Manufacturing fixed-capital investment represents the capital necessary
for the installed process equipment with all auxiliaries that are needed for
complete process operation. Expenses for piping, instruments, insulation,
foundations, and site preparation are typical examples of costs included in the
manufacturing fixed-capital investment.
Fixed capital required for construction overhead and for all plant
components that are not directly related to the process operation is designated
as the nonmanufacturing fixed-capital investment. These plant components
include the land, processing buildings, administrative, and other offices,
warehouses, laboratories transportation, shipping, and receiving facilities, utility
and waste-disposal facilities, shops, and other permanent parts of the plant. The
construction cost consists of field-office and supervision expenses, home-office
expenses, engineering expenses, miscellaneous construction costs, contractor’s
fees, and contingencies. In some cases, construction overhead is proportioned
between manufacturing and nonmanufacturing fixed-capital investment.
𝐹𝑖𝑥𝑒𝑑 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 = 𝐷𝑖𝑟𝑒𝑐𝑡 𝐶𝑜𝑠𝑡 + 𝐼𝑛𝑑𝑖𝑟𝑒𝑐𝑡 𝐶𝑜𝑠𝑡
I. Direct Costs
1. Purchased Equipment
The listed equipment can be divided into processing equipment,
raw-materials handling and storage equipment, and finished-products
handling and storage equipment.
Table 40. Estimation of Purchased Equipment Cost for SMR and SMR
Plus
Equipment No. of Unit Price Cost (Php) Tax (12%) Price (Php)
Units (Php)
Expander 1 249,600 249,600 29,952 279,552
Compressor 1 249,600 249,600 29,952 279,552
Pump 2 208,000 416,000 49,920 465,920
Heat
12 1,040,000 12,480,000 1,497,600 13,977,600
Exchanger
Steam
Methane 1 52,000,000 52,000,000 6,240,000 58,240,000
Reformer
Prereformer 1 52,000,000 52,000,000 6,240,000 58,240,000
Furnace 1 780,000 780,000 93,600 873,600
Separator 2 1,560,000 3,120,000 374,400 3,494,400
Absorber 1 208,000 208,000 24,960 232,960
Pressure 1 260,000,000 260,000,000 31,200,000 291,200,000

Swing
Absorber
Water Gas
Shift 2 182,000,000 364,000,000 43,680,000 407,680,000
Reactor
Spherical
5 23,400,000 117,000,000 14,040,000 131,040,000
Tank
Total 966,003,584
Table 41. Estimation of Purchased Equipment Cost for ATR
Equipment No. of Unit Price Cost (Php) Tax (12%) Price (Php)
Units (Php)
Expander 2 249,600 249,600 29,952 279,552
Compressor 4 249,600 249,600 29,952 279,552
Pump 3 208,000 416,000 49,920 465,920
Heat
15 1,040,000 12,480,000 1,497,600 13,977,600
Exchanger
Separator 4 1,560,000 3,120,000 374,400 3,494,400
Pressure
Swing 2 260,000,000 260,000,000 31,200,000 291,200,000
Absorber
Water Gas 2 182,000,000 364,000,000 43,680,000 407,680,000

Shift
Reactor
Gas Heated
2 52,000,000 104,000,000 12,480,000 116,480,000
Reformer
Autothermal
1 52,000,000 52,000,000 6,240,000 58,240,000
Reformer
Spherical
5 23,400,000 117,000,000 14,040,000 131,040,000
Tank
Total 1,023,137,024
The dollar to peso conversion is based on the exchange rate as of
March 3, 2019 (1 usd = 52 php) and the current tax rate of 12% has been
used. Using the said conditions, a total purchased equipment cost of
966,003,584 Php has been calculated.
2. Equipment Installation
The installation of equipment involves costs for labor, foundations,
supports, platforms, construction expenses, and other factors directly
related to the erection of purchased equipment
Equipment installation cost accounts for 39 percent of purchased
equipment costs.
3. Insulation Costs
When very high or low temperatures are involved, insulation factors
can become important, and it may be necessary to estimate insulation
costs with a great deal of care.
The total cost for the labor and materials required for insulating
equipment and piping in ordinary chemical plants is approximately 9
percent of the purchased-equipment cost.
4. Instrumentation and Controls
Instrument costs, installation-labor costs, and expenses for auxiliary
equipment and materials constitute the major portion of the capital
investment requires for instrumentation.
For the normal chemical processing plant, a value of 13 percent of
the purchased equipment is normally used to estimate the total
instrumentation cost.
5. Piping Costs
The cost for piping covers labor, valves, fittings, pipe, supports, and
other items involved in the complete erection of all piping used directly in
the process. This includes raw-material, intermediate-product, finished
product, finished product, steam, water, air, sewer, and other process
piping.
Piping costs for fluid processing plants accounts for 66 percent of
the purchased equipment costs.
6. Electrical Installation Costs

The cost for electrical installations consists primarily of installation
labor and materials for power and lighting, with building-service lighting
usually included under the heading of building-and-services costs. In
ordinary chemical plants, electrical-installations cost amounts to 15
percent of the value of all purchased equipment.
7. Building Including Services
The cost for buildings including services consists of expenses for
labor, materials, and supplies involved in the erection of all buildings
connected with the plant. Costs for plumbing, heating, lighting, ventilation,
and similar building services are included.
The cost of buildings including services for fluid processing plant is
45 percent of the total purchased cost.
8. Yard Improvements
Costs for fencing, grading, roads, sidewalks, railroad sidings,
landscaping, and similar items constitute the portion of the capital
investment included in yard improvements. Yard improvements cost for
chemical plants approximates 10 percent of the purchased equipment
cost.
9. Service Facilities
Utilities for supplying steam, water, power, compressed air, and fuel
are part of the service facilities of an industrial plant. Waste disposal, fire
protection, and miscellaneous service items, such as shop, first aid, and
cafeteria equipment and facilities, require capital investments which are
included under the general heading of service facilities cost.
For a small, continuous-process plant, the cost of service facilities,
in terms of capital investment, generally ranges from 8 to 20 percent with
13 percent considered as an average value.
10. Land
The total cost of land is influenced by the value of land where plant
is located and other fees which include title fees, legal fees, survey costs,
zoning fees, site preparation costs and etc. The value of land in
Tabangao, Batangas Industrial Park is Php 5000.00/square meter based
on municipal inquiry.
𝑇𝑜𝑡𝑎𝑙 𝑙𝑎𝑛𝑑 𝑐𝑜𝑠𝑡 = 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑠𝑞𝑢𝑎𝑟𝑒 𝑚𝑒𝑡𝑒𝑟 ∗ 𝑡𝑜𝑡𝑎𝑙 𝑎𝑟𝑒𝑎
𝑇𝑜𝑡𝑎𝑙 𝑙𝑎𝑛𝑑 𝑐𝑜𝑠𝑡 = (5000 𝑃ℎ𝑝)(130000 𝑚2)
𝑇𝑜𝑡𝑎𝑙 𝑙𝑎𝑛𝑑 𝑐𝑜𝑠𝑡 = 𝑃ℎ𝑝 650,000,000.00
J. Indirect Costs
1. Engineering and Supervision Cost
The costs for construction design and engineering, drafting,
purchasing, accounting, construction, and cost engineering, travel,
reproductions, communications, and home office expense including
overhead constitute the capital investment for engineering and

supervision. This cost is approximately 30 percent of the purchased cost
or 8 percent of the total direct costs of the process plant.
2. Contractor’s Fee
The contractor’s fee varies for different situations, but it can be
estimated to be about 8 percent of the direct plant cost or 1.5 percent of
the fixed-capital investment.
3. Construction Expense
Another expense which is included under indirect plant cost is the
item of construction or field expense and includes temporary construction
and operation, construction tools and rentals, home office personnel
located at the construction site, construction payroll, travel and living,
taxes and insurance, and other construction overhead. This expense item
is occasionally included under equipment installation, or more often under
engineering, supervision, and construction. For ordinary chemical-process

plants, the construction expenses average roughly 10 percent of the total
direct costs for the plant.
4. Contingencies
A contingency factor is usually included in an estimate of capital
investment to compensate for unpredictable events, such as storms,
floods, strikes, price changes, small design changes, errors in estimation,
and other unforeseen expenses, which previous estimates have
statistically shown to be of a recurring nature. Contingency factors ranging
from 5 to 15 percent of the direct costs are commonly used, with 8 percent
being considered a fair average value.
K. Working Capital
The working capital for an industrial plant comprises of the total
amount of money invested in (1) raw materials and supplies carried in
stock, (2) finished products in stock and semi-finished products in the
process of being manufactured, (3) accounts receivable, (4) cash kept on

hand for monthly payment of operating expenses, such as salaries,
wages, and raw-material purchases, (5) accounts payable, and (6) taxes
payable.
The raw-materials inventory included in working capital usually
amounts to a 1-month supply of the raw materials valued at delivered
prices. Finished products in stock and semi-finished products have a value
approximately equal to the total manufacturing cost for 1 month’s
production. Because credit terms extended to customers are usually
based on an allowable 30-day payment period, the working capital
required for accounts receivable ordinarily amounts to the production cost
for 1 month of operation.
The ratio of working capital to total capital investment varies with
different companies, but most fluid chemical plants use an initial working
capital amounting to 86 percent of the total purchased equipment cost.

L. Estimation of Capital Investment
The proposed SMR Plant has an annual capacity of 31400 metric
tons of hydrogen gas and operates 345 days per year. The table shows
various costs constituting the total capital investment for the proposed
plant.
Table 42. Estimation of Total Capital Investment for SMR and SMR
Plus
DIRECT COST Cost Factor, PE Cost
Purchased Equipment 1 966,003,584.00
Equipment Installation 0.39 376,741,397.80
Insulation Costs 0.09 86,940,322.56
Instrumentation and Controls 0.13 125,580,465.90
Piping Costs 0.66 637,562,365.40
Electrical Installation Costs 0.15 144,900,537.60
Building Including Services 0.45 434,701,612.80
Yard Improvements 0.1 96,600,358.40
Service Facilities 0.13 125,580,465.90
Land 650,000,000.00
Total Direct Cost 3,644,611,110.00
Cost Factor,
INDIRECT COST
TDC
Engineering and Supervision 0.08 291,568,888.80
Contractor’s Fee 0.015 54,669,166.65
Construction Expenses 0.1 364,461,111.00
Contingency 0.08 291,568,888.80
Total Indirect Cost 1,002,268,055.00
Fixed Capital Investment 4,646,879,166.00

Working Capital 0.86 PE 830,763,082.20
Total Capital Investment 5,477,642,247.85
Table 43. Estimation of Total Capital Investment for ATR
DIRECT COST Cost Factor, PE Cost
Purchased Equipment 1 1,023,137,024
Equipment Installation 0.39 399,023,439.4
Insulation Costs 0.09 92,082,332.16
Instrumentation and Controls 0.13 133,007,813.1
Piping Costs 0.66 675,270,435.8
Electrical Installation Costs 0.15 153,470,553.6
Building Including Services 0.45 460,411,660.8
Yard Improvements 0.1 102,313,702.4
Service Facilities 0.13 133,007,813.1
Land 650,000,000.00
Total Direct Cost 3,821,724,774
Cost Factor,
INDIRECT COST
TDC
Engineering and Supervision 0.08 335,618,652.30
Contractor’s Fee 0.015 62,928,497.30
Construction Expenses 0.1 419,523,315.30
Contingency 0.08 335,618,652.30

Total Indirect Cost 1,153,689,117.20
Fixed Capital Investment 4,975,413,891.00
Working Capital 0.86 PE 830,763,082.20
Total Capital Investment 5,806,176,973.00
Total capital investment is the amount required for a company to
build a manufacturing plant which includes the procurement necessary
facilities, and the cost to sustain its operation. It is the sum of the fixed
capital investment and working capital investment. The fixed capital
investment is the amount expended for physical equipment and facilities
while working capital investment serves as the fund to purchase raw
materials, products on hand, and for salaries of employees.
5.8 Operational Expenditures (OPEX)
Operating expenditures or OPEX is an ongoing cost for running a
production plant or system. An operating expense is an expense a business
incurs through its normal business operations.
A. Direct Production Costs
Direct production cost is traceable to a specific item, such as a product. It
is the cost of the materials used to create a product.
1. Raw Materials
The cost of the raw material for hydrogen production are calculated using the
current natural gas price as of March 20, 2019.

Table 44. Annual Raw Material Cost for SMR, SMR Plus, and ATR
(markets.businessinsider.com)
Annual
Cost per Unit
Consumption
Design Option (Php per metric Total Cost (Php)
(metric tons per
ton)
year)
SMR 94,681.98 777,770,817.50
SMR Plus 8,214.56 99,506.30 817,400,471.70
ATR 92,214.53 757,501,789.60
Table shows the annual cost of natural gas based on the annual consumption
of the plant.
2. Operating Labor
The cost of labor is the sum of all wages paid to employees, as well as
the cost of employee benefits and payroll taxes paid by an employer. The
salary calculations are based on Philippine Statistics Authority’s “Average
Daily Basic Pay of Wage and Salary Workers by Major Occupation Group,
Philippines (2016-2018)”.
The proposed plant will have a total of seven (7) major departments
namely: (1) Human Resource Department, (2) Finance Department, (3)
Marketing and Sales Department, (4) Research and Development
Department, (5) Operations Department, (6) Quality Assurance and
Quality Control Department.
2.1 Human Resource Department
The Human Resources Department (HRD) is responsible for the
recruitment of qualified employees during the pre-operating period. The HRD
evaluates the applicants’ skills and competency by means of interviews and
giving physical and written examinations in order to determine which among
them are the best fit for a designated position. Potential employees will
undergo initial trainings and career orientation seminars to acquire
preliminary experience before going into the actual field of work.
The HRD serves to maintain a conducive work environment and
harmonious relationships among all the company employees. Compensation,
performance appraisal measures and promotion, and benefits such as life
and health care insurance, tuition assistance plan, and retirement are
covered by the HRD as well.
Table 45. Estimation of the Total Labor Cost for Human Resource
Department
Quantity Daily Salary Annual Salary Total
HR Manager 1 978.35 306,223.55 306,223.55
Secretary 1 862.53 269,971.89 269,971.89

Recruitment 1 582.71 182,388.23 182,388.23
Officer
Training Staff 1 582.71 182,388.23 182,388.23
General Service 1 582.71 182,388.23 182,388.23
Officer
Security 5 462.55 144,778.15 573,890.75
Maintenance 3 358.06 112,072.78 336,218.34
Health Officer 2 582.71 182,388.23 364,776.46
Nurse 2 462.55 144,778.15 289,556.30
Total 17 2,687,801.98
Table 45 shows the estimated total labor costs of Human Resource
Department based on the average salary grades provided by Philippine
Statistics Office assuming 313 work days.
2.2 Finance Department
The Finance Department manages the incoming and outgoing cash
flows. To track all of the financial transactions in the company, the
department conducts bookkeeping which includes both sales and
expenses. The department controls the expenditures and obligations such
as payroll, debts, and taxes. To secure that there are sufficient funds
available, the department provides financial planning and analysis, capital
budgeting, work capital (receivables, payables, and inventory)
management, investment reports, and risk management.

Table 46. Estimation of the Total Labor Cost for Finance
Department
Quantity Daily Annual Total
Salary Salary
Finance 1 978.35 306,223.55 306,223.55
Manager
Secretary 1 862.53 269,971.89 269,971.89
Chief 1 862.53 269,971.89 269,971.89
Accountant
Officer
Book Keeper 1 862.53 269,971.89 269,971.89
Purchasing 1 862.53 269,971.89 269,971.89
Manager
Payroll 1 862.53 269,971.89 269,971.89
Master
Accounting 3 532.06 166,534.78 499,604.34
Clerk
Purchasing 3 532.06 166,534.78 499,604.34
Staff
Payroll Staff 2 532.06 166,534.78 333,069.56
Total 14 2,988,361.24
Table 46 shows the estimated total labor costs of Finance
Department based on the average salary grades provided by Philippine
Statistics Office assuming 313 work days.
2.3 Marketing and Sales Department
The Marketing and Sales Department is the overall responsible for
establishing the name of the company. Creating a good image of the
brand, more importantly on starting business, relies on good marketing to
increase market share and to generate revenue. First and foremost, the
department conducts market research to determine and to set which
marketing strategy will work and will appeal to the consumers. By
understanding customer needs and learning the weaknesses and
strengths of existing competitors, market research can help save money
from doing irrelevant advertisements that won’t contribute to profitability of
the company.
The company can utilize tried and tested methods of marketing
strategy such as studying industry reports, market data on websites, or by
contacting customers and prospects to survey their needs and attitudes.
But since the market can be unpredictable, finding new and creative ways
of product campaigns will always be the main challenge nowadays.
Table 47. Estimation of the Total Labor Cost for Marketing and Sales
Department

Salary Salary
Marketing 1 978.35 306,223.55 306,223.55
Manager
Secretary 1 862.53 269,971.89 269,971.89
Marketing 1 862.53 269,971.89 269,971.89
Officer
Advertising 1 862.53 269,971.89 269,971.89
and
Promotion
Officer
Marketing 5 532.06 166,534.78 832,673.90
Staff
Advertising 5 532.06 166,534.78 832,673.90
and
Promotion
Staff
Total 14 2,781,487.02
Table 47 shows the estimated total labor costs of Marketing and
Sales Department based on the average salary grades provided by
Philippine Statistics Office assuming 313 work days.
2.4 Research and Development Department

The Research and Development Department holds a vital part in
formulating a new product. The activities of the department are divided into two
phases namely, research phase and development phase. In the research phase,
comprehensive study and analysis are conducted to understand and to discover
methods prior to developing products that will satisfy the needs of consumers.
Meanwhile, the development phase focuses more on transpiring ideas and
theories presented during the research phase into actual work. The department
takes into account product specifications, production costs, and a production time
line.
The department has the rights to make necessary changes or
prospective upgrades in the events of: innovation and improvement of
product quality; increased market competition due to new trends within the
industry; proven faulty manufacturing process; or if the product
effectiveness is of questionable status.
Table 48. Estimation of the Total Labor Cost for Research and
Development Department
Salary Salary
Research 1 978.35 306,223.55 306,223.55
and
Development
Manager
Secretary 1 862.53 269,971.89 269,971.89

Process 3 862.53 269,971.89 809,915.67
Developer
Product 3 862.53 269,971.89 809,915.67
Developer
Process 5 532.06 166,534.78 832,673.90
Researcher
Product 5 532.06 166,534.78 832,673.90
Researcher
Total 18 2,781,487.02
Table 48 shows the estimated total labor costs of Research and
Development Department based on the average salary grades provided
by Philippine Statistics Office assuming 313 work days.
2.5 Operations Department
The Operations Department is at the core of the company. The
department is in charge of manufacturing the required quantities of finish
product from the available raw materials. It oversees that finished goods
are distributed on-time and on upright condition to market consumers. The
department also runs the day-to-day business of the company such as
operating plant equipment and machineries, purchasing required raw
materials, and delivering finished and tested products to locations
specified by the company.

Table 49. Estimation of the Total Labor Cost for Operations
Department
Salary Salary
Operations 1 978.35 306,223.55 306,223.55
Manager
Secretary 1 862.53 269,971.89 269,971.89
Engineering 1 862.53 269,971.89 269,971.89
Head
Pollution 1 862.53 269,971.89 269,971.89
Control Head
Process Area 1 862.53 269,971.89 269,971.89
Head
Warehouse 1 862.53 269,971.89 269,971.89
Head
Logistics 1 862.53 269,971.89 269,971.89
Head
Engineering 24 582.71 182,388.23 4,377,317.52
Staff
Pollution 3 582.71 182,388.23 547,164.69
Control Staff
Process Area 45 582.71 182,388.23 8,207,470.35

Staff
Warehouse 6 333.71 104,451.23 626,707.38
Staff
Logistics 6 333.71 104,451.23 626,707.38
Staff
Driver 10 462.55 144,778.15 1,447,781.50
Total 101 17,759,203.71
2.6 Quality Assurance and Quality Control Department
The Quality Assurance and Quality Control Department conducts strict
measures in assuring that finished goods passed necessary quality tests and
standards before ultimately reaching the market. The department targets zero
defect and a hundred percent quality products that will bring long-term revenue
and profitability, maintain customer satisfaction and loyalty, and lessen the risk
and cost of replacing defective goods. The department is also responsible in
keeping the business on the cutting edge through constant drive for development
in the industry.
Table 50. Estimation of the Total Labor Cost for Quality
Assurance and Quality Control Department
Salary Salary
Quality 1 978.35 306,223.55 306,223.55

Assurance
and Control
Manager
Quality 5 862.53 269,971.89 1,349,859.45
Assurance
and Control
Staff
Total 6 1,656,083.00
Table 50 shows the estimated total labor costs of Quality
Assurance and Quality Control Department based on the average salary
grades provided by Philippine Statistics Office assuming 313 work days.
2.7 Others
a. Plant Manager
The Plant Manager supervises day-to-day operational
activities to ensure optimum plant performance and product quality.
The Plant Manager ensures safety of plant personnel and efficiency
of equipment and processes through implementing strategic goals,
policies, and safety procedures, providing collaborative training
programs, and conducting corrective and preventive maintenance
regularly. It is the task of Plant Manager to allocate resources cost-
effectively, to comply with organizational standards and regulations,

and to order corresponding sanctions for misconduct and violation
of employees.
Table 51. Estimation of the Total Labor Cost for a Plant
Manager
Quantity Daily Salary Annual Total
Salary
Plant 1 2260.37 707,497.00 707,497.00
Manager
Total 1 707,497.00
Table 51 shows the estimated total labor cost of a Plant
Manager based on payscale.com.ph assuming 313 work days.
b. Legal Counsel
The Legal Counsel is responsible for handling the legal matters
associated with the company such as official contracts, deals, and
agreements. The Legal Counsel ensures that the involvement of the
company in any third-party arrangements are in legal terms and
conditions. It is mandatory for the Legal Counsel to study and to advice
identified risks that affects the profit line of the company within the
relative legal frameworks.
Table 52. Estimation of the Total Labor Cost for a Legal
Counsel
Salary Salary
Legal 1 4193.29 1,312,500.00 1,312,500.00
Counsel
Total 1 1,312,500.00
Table 52 shows the estimated total labor cost of a Legal
Counsel based on payscale.com.ph assuming 313 work days.
Table 53. Estimation of the Total Labor Cost
Department Labor Cost
Human Resource 2,687,801.98
Finance 2,988,361.24
Marketing and Sales 2,781,487.02
Department
Research and 2,781,487.02
Development
Operations 17,759,203.71
Quality Assurance 1,656,083.00
Others 2,019,997
Total 32,674,420.97
Table 53 shows the total labor cost for the proposed SMR plant.
3. Direct Supervisory and Clerical Labor
In a manufacturing operation, direct supervisory and clerical labor is
always necessary. The estimate of the cost of this type of labor is linked
with the total amount of operating labor, product quality standards, and
operation difficulty. Direct supervisory and clerical labor cost averages
around 15% of operating labor cost.
4. Utilities
The costs of the utilities required in the process for steam-methane
reforming such as electricity, process and cooling water, fuel (diesel and
coal) vary widely depending on the amount of consumption, plant location
and source.
4.1 Fuel
Natural gas will be used for heating requirements within the
process. A price of Php 8,214.56 per metric ton was based on
Global Natural Gas Price as of March 20, 2019.
Table 54. Heat Demand and Heat Available in SMR
Heat Demand
Process Value, GJ/hr
Preheating (350 C) 90.01
Preheating Gas input in GHR and SMR (400 31.90
and 700°C):
GHR (700°C): 24.07

SMR (950°C): 132.05
CO2 Absorption (115°C) 46.90
Preheating Furnace inputs (335 and 500°C): 25.47
Total 350.39
Heat Utilized
Cooling the reforming product (950 - 320°C): 71.96
WGS (320 - 25°C): 70.31
Cooling the Flue Gas (1000 - 100°C): 76.17
Total 217.44
Overall Heat Requirement 132.95
A total heat demand of 350.29 GJ/hr for SMR and SMR plus
will be provided by a total of 132.95 GJ/hr. This is made possible
through heat utilization and optimization within the system
Annual Fuel Cost Calculation for SMR:
Table 55. Variables for Total Fuel Cost Estimation
Price, Density, Energy Overall Heat
Php/MT kg/m3 Density, Requirement,
MJ/m3 GJ/hr
Natural 8214 0.8 82.7 132.95

Gas
𝐴𝑛𝑛𝑢𝑎𝑙 𝐹𝑢𝑒𝑙 𝐶𝑜𝑠𝑡 =
8214.56 𝑃ℎ𝑝 0.8 𝑘𝑔 𝑚3 132950 𝑀𝐽 24 ℎ𝑟 345 𝑑𝑎𝑦

( )( ) (82.7 𝑀𝐽) ( ) ( 𝑑𝑎𝑦 ) ( )
1000 𝑘𝑔 𝑚3 ℎ𝑟 𝑦𝑒𝑎𝑟
𝐴𝑛𝑛𝑢𝑎𝑙 𝐹𝑢𝑒𝑙 𝐶𝑜𝑠𝑡 = 87,475,707.15𝑃ℎ𝑝/𝑦𝑒𝑎𝑟
A total fuel cost of 87,475,707.15 Php/year is required for
heating requirements of SMR plant.
Table 56. Heat Demand and Heat Available in SMR Plus:
Heat Demand
Preheating (350 C) 115.61
Preheating Gas input in GHR and SMR (400 34.00
and 700°C):
GHR (700°C): 30.90
SMR (950°C): 176.56
Preheating Furnace inputs (335 and 500°C): 34.36
Total 451.66
Heat Utilized
Cooling the reforming product (950 - 320°C): 92.43
WGS (320 - 25°C): 90.32

Cooling the Flue Gas (1000 - 100°C): 92.70
Total 275.45
. A total heat demand of 451.66 GJ/hr for SMR and SMR
plus will be provided by a total of 176.21 GJ/hr. This is made
possible through heat utilization and optimization within the system
Since SMR Plus offers a hydrogen recycle stream as fuel for
the equipment, there will be no fuel cost.
Table 57. Heat Demand and Heat Available in ATR
Heat Demand
Preheating Water (320-350 C): 60.41
Preheating Gas input in GHR (400): 12.84
Preheating oxygen (250°C): 0.33
GHR (700°C): 28.72
Preheating Air and Tail inputs (350 and 2.93
500°C):
Total 163.96
Heat Utilized
Intercooling in two-stage oxygen 2.86
compression (277-25°C):
Cooling the reforming product (1000-320°C): 75.40
WGS (325-25°C): 69.89
Cooling Tail gas before PSA-2 (340-25°C) 2.64
Burning Tail gas and cooling the flue gas 18.12
(1000-100°C)
Total 168.89
A total heat demand of 168.89 GJ/hr for ATR will be
provided by a total of 4.92 GJ/hr. This is made possible through
heat utilization and optimization within the system.
Annual Fuel Cost Calculation for ATR:
Table 58. Variables for Total Fuel Cost Estimation
MJ/m3 GJ/hr
Natural
8214 0.8 82.7 4.92
Gas
8214.56 𝑃ℎ𝑝 0.8 𝑘𝑔 𝑚3 4920 𝑀𝐽 24 ℎ𝑟 345 𝑑𝑎𝑦

( )( ) (82.7 𝑀𝐽) ( ) ( 𝑑𝑎𝑦 ) ( )
𝐴𝑛𝑛𝑢𝑎𝑙 𝐹𝑢𝑒𝑙 𝐶𝑜𝑠𝑡 = 3,237,160.43 𝑃ℎ𝑝/𝑦𝑒𝑎𝑟
A total fuel cost of 3,237,160.43 Php/year is required for
heating requirements of ATR plant.
4.2 Electricity
Electricity demand will be calculated from the power
necessities of the major electrical equipment of the process plant
(pumps, compressors, and expanders). Electricity price of 10.4961
per kWh is based on Meralco’s electricity rate in Tabangao,
Batangas.
Power requirement will be calculated using the formula:
𝑞𝜌𝑔ℎ
𝑃=
3.6𝑥10^6
P = hydraulic power (kW)
q = flow rate (m3/h)
ρ = density of fluid (kg/m3)
g = acceleration of gravity (9.81 m/s2)
h = differential head (m)

p = differential pressure (Pa)
The differential head can be estimated using the pump curve
and the compressor curve:
Figure 39. Pump Curve

Figure 40. Compressor Curve
Table 59. Computation for Total Electricity Consumption for
SMR and SMR Plus
Fluid Volumetric
Wattage, Annual Cost,
Equipment Head Density, Flow Rate,
kW Php
kg per m3/hr
m3
Expander – 1 18000 0.8 11003.33 431.77 108,765.7949
Pump -1 13 1000 2.722 0.10 8,258.78382
Pump -2 13 1000 26.818 0.95 81,368.13537
Compressor
18000 1.225 74762.325 4492.19 1,131,610.844
-1
Total 1,330,003.558
Table 60. Computation for Total Electricity Consumption for
ATR
Fluid Volumetri
Density c Flow Wattage, Annual Cost,

Equipment Head
, kg per Rate, kW Php
m3 m3/hr
1800 122,311.37
Expander – 1 0.8 13096.67 485.36259
0
Pump -1 13 1000 360.11 22.569894 1,933,788.54
Pump - 2 13 1000 1716.55 818.57978 70,135,915.66
1800 45,100,244.83
Pump -3 1000 1287.78 526.38007
0
Compressor -1 1.429 13135.56 869.55338 219,127.45
Compressor -2 1.205 79,145.56 4677.9181 1,178,835.36

Compressor -3 0.09 2726.67 5.0153686 429,716.78
Total 119,119,940.00
Table 60 shows the total electrical consumption presented in
monetary value. The computation above is based on the premise
that the plant is running 24 hours a day and 340 days a year.
4.3 Water
Water that will be used for the process will be provided by West
Philippine Sea to utilize its near-shore location. Water will then be
treated before and after it is used.
4.4 Total Utility Cost
Total utility cost will be calculated by getting the sum of the
calculated utility costs.
Table 61. Total Utility Cost
Fuel Cost, Electricity Total, Php
Php Cost, Php
SMR 87,475,707.15 1,330,003.558 88,805,710.71
SMR Plus 0 1,330,003.558 1,330,003.558
ATR 3,237,160.43 119,119,940.00 122,357,100.40

Table 61 shows that the SMR is the most economical choice in
terms of utilities due to its hydrogen recycle feature.
5. Maintenance and Repairs
Maintenance and repairs will be done in order to ensure efficient
operating condition of the complex. Regular 15-day annual shutdown will
be done to give way for the maintenance and repairs of the plant along
with its equipment and facilities. The total plant cost per year for
maintenance and repairs is roughly 6% of the fixed-capital investment.
6. Operating Supplies
Miscellaneous supplies necessary for effective operation like
charts, test chemicals, custodial supplies and similar supplies comprise
the operating supplies costs. The costs for these materials cannot be
reflected as raw materials cost nor under maintenance and repair
expenses. The annual expenses for these supplies are 15 percent of the
total cost for maintenance and repairs.
7. Laboratory Charges
Laboratory charges are the costs allocated by the company for
control of operations and conducting quality control and assurance of
products through laboratory tests. This cost is estimated as 10-20% of
operating labor cost.
B. Fixed Charges
Certain expenses are always present in the industrial plan whether or
not the manufacturing process is in operation. Costs that are invariant with
the amount of production are designated as fixed costs or fixed charges.
These include costs for depreciation, local property taxes, and insurance.
Expenses of this type are a direct function of the capital investment.
1. Depreciation
Equipment, buildings, and other material objects comprising a
manufacturing plant require an initial investment which must be written off as a
manufacturing expense. In order to write off this cost, a decrease in value is
assumed to occur throughout the usual life of the material possessions. This
decrease in value is designated as depreciation.
In determining the depreciation cost, the straight-line method will be used:
𝑉 − 𝑆𝑉
𝑑=
𝑛
d = annual depreciation, Php per year
V = original value, Php
SV = salvage value, Php
n = service life, years
Table 62. Estimation of the Total Depreciation Cost for SMR and
SMR Plus
Cost (Php) Salvage Value, Life Depreciation
10% (Php) (Years) (Php per year)
Purchased 966,003,584.00 96,600,358.40 30 28,980,107.52
Equipment
Instrumentation and 125,580,465.90 12,558,046.59 8 14,127,802.41
Controls
Piping 637,562,365.40 63,756,236.54 20 28,690,306.44
Electrical 144,900,537.60 14,490,053.76 12 10,867,540.32
Equipment and
Materials
Buildings 434,701,612.80 43,470,161.28 50 7,824,629.03
Yard Improvements 96,600,358.40 9,660,035.84 20 4,347,016.128
Service Facilities 125,580,465.90 12,558,046.59 20 5,651,120.966
Total 100,488,522.8
Table 63. Estimation of the Total Depreciation Cost for ATR
Cost (Php) Salvage Value, Life Depreciation
10% (Php) (Years) (Php per year)
Purchased 1,023,137,024 96,600,358.40 30 30,694,110.72

Equipment
Instrumentation and 133,007,813.10 12,558,046.59 8 14,963,378.97
Controls
Piping 675,270,435.80 63,756,236.54 20 30,387,169.61
Electrical 153,470,553.60 14,490,053.76 12 11,510,291.52
Equipment and
Materials
Buildings 460,411,660.80 43,470,161.28 50 8,287,409.894
Yard Improvements 102,313,702.40 9,660,035.84 20 4,604,116.608
Service Facilities 133,007,813.10 12,558,046.59 20 5,985,351.59

Total 106,431,828.9
Table 63 shows the total annual depreciation cost using straight line
method. Estimated life years and salvage value was courtesy of M. S. Peters &
K. D. Timmerhaus (1991). Plant Design and Economics for Chemical Engineers.
McGraw-Hill Inc. Singapore.
The asset value (or book value) of the equipment at any time during the
service life may be determined from the following equation:
𝐴𝑉 = 𝑉 − 𝑎𝐷
AV = asset or book value, Php
a = number of years in actual use.

Annual 2023 2024 2025 2026 2028
Depreciation
Purchased
28,980,107.52 80,913,140.31 937,023,476.5 908,043,369 879,063,261.4 850,083,153.9
Equipment
Instrumentation
42,383,407.25 10,518,708.24 334,357,990.6 291,974,583.3 249,591,176.1 207,207,768.8
and Controls
Piping 5,651,120.966 25,083,073.50 119,929,344.9 114,278,224 108,627,103 102,975,982
Electrical
Equipment and 47,817,177.41 8,091,314.03 589,745,188 541,928,010.6 494,110,833.2 446,293,655.8
Materials
Buildings 2,608,209.677 23,464,810.69 142,292,327.9 139,684,118.2 137,075,908.6 134,467,698.9
Yard
19,561,572.58 8,091,314.03 415,140,040.2 395,578,467.6 376,016,895.1 356,455,322.5
Improvements
Service Facilities 4,347,016.128 44,502,227.17 92,253,342.27 87,906,326.14 83,559,310.02 79,212,293.89
Table 64. Estimation of the Asset Value for 10 years of operation
Annual 2029 2030 2031 2032 2033

Depreciation
Purchased
28,980,107.52 821,103,046.4 792,122,938.9 763,142,831.4 734,162,723.8 705,182,616.3
Equipment
Instrumentation
42,383,407.25 164,824,361.6 122,440,954.3 80,057,547.05 37,674,139.8 -
and Controls
Piping 5,651,120.966 97,324,861.07 91,673,740.1 86,022,619.14 80,371,498.17 74,720,377.21
Electrical
Equipment and 47,817,177.41 398,476,478.4 350,659,300.9 302,842,123.5 255,024,946.1 207,207,768.7
Materials
Buildings 2,608,209.677 131,859,489.2 129,251,279.5 126,643,069.9 124,034,860.2 121,426,650.5
Yard
19,561,572.58 336,893,749.9 317,332,177.3 297,770,604.7 278,209,032.2 258,647,459.6
Improvements
Service Facilities 4,347,016.128 74,865,277.76 70,518,261.63 66,171,245.5 61,824,229.38 57,477,213.25

Table 64 shows the total asset value from 2023 to 2033. Estimated life
years and salvage value was courtesy of M. S. Peters & K. D. Timmerhaus
(1991). Plant Design and Economics for Chemical Engineers. McGraw-Hill Inc.
Singapore.
2. Property Taxes
Local governments usually have jurisdiction over property taxes,
which are commonly charges on a country basis. In addition to these,
individual cities and towns may have special property taxes for industrial
concerns located within the city limits.
The legal basis for real property tax is in Title II of the Local
Government Code of 1991 or Republic Act 7160. RA 7160 vested local
government units the power to create local and external revenue sources
such as the property tax, business tax, professional tax, amusement tax
and other fees and charges. RA 7160 also established limitations such as
ceiling limits and base rates.
Real property tax will be computed using:
𝑅𝑒𝑎𝑙 𝑃𝑟𝑜𝑝𝑒𝑟𝑡𝑦 𝑇𝑎𝑥 = 𝑅𝑒𝑎𝑙 𝑃𝑟𝑜𝑝𝑒𝑟𝑡𝑦 𝑇𝑎𝑥 𝑅𝑎𝑡𝑒 ∗ 𝐴𝑠𝑠𝑒𝑠𝑠𝑒𝑑 𝑉𝑎𝑙𝑢𝑒
Real property tax rate for most cities and municipalities in Metro
Manila is 2% and 1% for the provinces. The assessed property value, or
the taxable value of the property, is the fair market value multiplied by the
assessment level.
Assessment level is the amount applied to the fair market value to
determine the taxable value of the property. It shall be fixed through
ordinances imposed by the city or provincial government.
Assessment levels used in the calculation are based on “Real
Property Tax Code of the Province of Batangas”.
Table 65. Estimation of Total Property Taxes
Property Assessme Fair Market RPT Assessed Real
nt Level Value (Php) Rat Value (Php) Property Tax
e (Php)
Land 45% 650,000,000.0 1% 292,500,000.0 2,925,000.00
0 0
Buildings 60% 96,600,358.40 1% 57,960,215.04 579,602.15
Machinerie 80% 966,003,584.0 1% 772,802,867.2 7,728,028.67
s 0 0
Total 11,232,630.8
Table 65 shows the total property tax considering the local tax code
of the province of Batangas.
3. Insurance
The annual insurance cost for ordinary industrial concerns is
approximately 1 percent of the capital investment. Despite the fact that

insurance costs may represent only a small fraction of total costs, it is
necessary to consider insurance requirements carefully to make certain
the economic operation of a plant is protected against emergencies or
unforeseen developments.
C. Plant Overhead Costs
The expenditures required for routine plant services are included in
plant overhead costs. Nonmanufacturing machinery, equipment, and
buildings are necessary for many of the general plant services, and the fixed
charges and direct costs for these items are part of the plant-overhead costs.
Plant overhead cost for chemical plants is about 50% of the total expense for
operating labor.
D. General Expenses
In addition to the manufacturing costs, other general expenses are
involved in any company’s operations. These general expenses may be
classified as (1) administrative expenses, (2) distribution and marketing
expenses, and (3) research and development expenses.
D.1 Administrative
Administrative expenses include costs for executive and clerical
wages, office supplies, engineering and legal expenses, upkeep on
office buildings, and general communications. Administrative cost is
about 20% of the total operating labor.
D.2 Distribution and Marketing

Distribution and marketing expenses are costs incurred in the
process of selling and distributing the various products. These costs
include expenditures for materials handling, containers, shipping, sales
offices, salesmen, technical sales service, and advertising. Distribution
and marketing cost is about 2% of the direct production cost.
D.3 Research and Development
Research and development expenses are incurred by any
progressive concern which wishes to remain in a competitive industrial
position. These costs are for salaries, wages, special equipment,
research facilities, and consultant fees related to developing new ideas
or improved processes. Research and development cost is about 2%
of the direct production cost.
E. Total Production Cost / OPEX
Product costs are the costs required for the manufacturing of the
product. Total product cost is estimated by summing the direct production
cost, fixed charges, plant overhead cost, and general expenses.
Table 66. Estimation of Total Production Cost for SMR
Cost Factor Cost
A. Direct Production Cost
Raw Material 777,770,817.50
Operating Labor 32,674,420.97

Direct Supervisory and Clerical 4,901,163.146
Labor 0.15 OL
Utilities 88,805,710.71
Maintenance and Repairs 0.06 FCI 278,812,750.00
Operating Supplies 0.15 MR 48,140,300.43
Laboratory Charges 0.1 OL 3,267,442.10
Total Direct Production Cost 1,234,372,604.86
B. Fixed Charges
100,488,522.8
Depreciation
Local Taxes 11,232,630.82
Insurance 0.01 FCI 46,468,791.66
C. Plant Overhead Cost 0.5 OL 16,337,210.49
Total Manufacturing Cost 174,527,155.77
D. General Expenses
Administrative Expenses 0.2 OL 6,534,884.19
Distribution Cost 0.02 DPC 24,687,452.1
Research and Development 0.02 DPC 24,687,452.1
Total General Expense 55,909,788.39
Total Production Cost 1,464,809,549.02
Table 67. Estimation of Total Production Cost for SMR Plus

Cost Factor Cost
Labor 0.15 OL
Utilities 1,330,003.56
Laboratory Charges 0.1 OLs 4,814,030.04
B. Fixed Charges
100,488,522.8
Depreciation
Insurance 0.01 FCI 46,468,791.66
174,527,155.77
Total Manufacturing Cost
D. General Expenses

Table 68. Estimation of Total Production Cost for ATR
Cost Factor Cost
Labor 0.15 OL
Utilities 122,357,100.40
Laboratory Charges 0.1 OLs 4,814,030.04
B. Fixed Charges
100,488,522.8
Depreciation
Insurance 0.01 FCI 53,489,222.70
Total Manufacturing Cost 232,407,675.51

D. General Expenses
As a result of the evaluation of the total production cost or OPEX,
SMR Plus is by far the most economical option. The evaluation of the
computation of the total operating expenditure is done in an annual
basis.
F. Sensitivity Analysis
A sensitivity analysis determines how different values of an independent
variable affect a particular dependent variable under a given set of
assumptions. This technique is used within specific boundaries that depend
on one or more input variables, such as the effect that changes in interest
rates (independent variable) has on bond prices (dependent variable).
1. Primary Investment
As per “The Corporation Code of the Philippines”, Section 14, at least
twenty-five (25%) percent of the authorized capital stock of the corporation
must be subscribed, and at least twenty-five (25%) of the total subscription

has been fully paid in actual cash. Conforming to this, the considered initial
capital from investors are as follows:
Table 69. Capital from Investors
Invested Capital, Php
SMR 1,370,000,000.00
SMR Plus 1,370,000,000.00
ATR 1,500,000,000.00
Table 69 shows the primary capital to be invested by the investors as per
“The Corporation Code of the Philippines”, Section 14.
2. Loan
The remaining capital investment of 4,500,000,000.00 Php for all design
options will be loaned from Banco de Oro. The company's land, buildings,
equipment purchased and other assets will be used as collateral.
Ordinary Annuity
𝐴[(1 + 𝑖)𝑛 − 1]
𝑃1 =
𝑖(1 + 𝑖)
i = interest
n = ordinary annuity period

𝐴[(1 + 0.0684)8 − 1
𝑃1 =
0.0684(1 + 0.0684)
P1 = 6.0009A
Deferred Annuity
𝑃1 = 𝑃2(1 + 𝑖)𝑚
m = deferred period
6.0009 𝐴 = 4,500,000,000 (1 + 0.0684)2
A = 855,980,522.90
A total amount of 855,980,522.90 Php will be paid yearly for 8 years as
part of the contract.
3. Annual Sales
 Hydrogen
Table 70. Annual Sales of Hydrogen for SMR and ATR
H2 Annual Price per unit, Php Annual Sales, Php
Production, kg per kg
31400000 119.6 3,755,440,000.00

Since some of the H2 from SMR Plus are recycled back to the
process as fuel, the amount of H2 used as fuel will be deducted to its
annual H2 production.
Table 71. Variables for Total Fuel Cost Estimation for SMR
Plus
MJ/m3 GJ/hr
Natural Gas 8214 0.8 82.7 132.95
8214.56 𝑃ℎ𝑝 0.8 𝑘𝑔 𝑚3 176210 𝑀𝐽 24 ℎ𝑟 345 𝑑𝑎𝑦

( )( ) (82.7 𝑀𝐽) ( ) ( 𝑑𝑎𝑦 ) ( )
Equivalent Annual Sales = Annual Sales – Annual Fuel Cost
= 3,755,440,000 – 115,939,032.39
Equivalent Annual Sales = 3,639,500,968 Php
The equivalent annual sales of H2 for SMR Plus is
3,639,500,968.00 Php
 Carbon Dioxide
Table 72. Annual Sales of CO2
CO2 Annual Price per unit, Annual Sales,
Production, kg Php per kg Php
SMR 191,352,000.00 1.35 258,325,200.00
SMR Plus 245,000,000.00 1.35 330,750,000.00
ATR 285,436,800.00 1.35 385,339,680.00
 Total Annual Sales
Table 73. Total Annual Sales
Total Annual Sales, Php
SMR 4,013,765,200.00
SMR Plus 3,970,250,968.00
ATR 3,793,973,968.00
Table 73 shows that SMR produces the most amount of sales per
year.
4. Cash Flow Sensitivity Analysis for SMR

2023
Pessimistic Expected Optimistic
Beginning Cash 1301500000 1,370,000,000 1438500000
Balance
Cash Inflow 3813076940 4,013,765,200 4214453460
Loan Proceeds 4275000000 4,500,000,000 4725000000
Total Cash 8088076940 8,513,765,200 8939453460
Inflow
Cash Outflows
Raw Material 738882276.6 777,770,817.50 816659358.4
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 84365425.17 88,805,710.71 93245996.25
Maintenance 264872112.5 278,812,750.00 292753387.5
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 3104069.995 3,267,442.10 3430814.205

Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Distribution Cost 23453079.5 24,687,452.10 25921824.71
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2204750568 2,320,790,071.92 2436829576
Outflows
Ending Cash 7184826372 7562975128 7941123884
Balance
2024
Beginning Cash 7184826372 7,562,975,128 7941123884
Balance
Cash Inflow 3822576940 4,023,765,200 4224953460
Loan Proceeds
Total Cash 3822576940 4,023,765,200 4224953460
Inflow
Cash Outflows
Raw Material 738882276.6 777,770,817.50 816659358.4
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.993 4,901,163.15 5146221.308
Supervisory and
Clerical Labor
Utilities 84365425.17 88,805,710.71 93245996.25
Maintenance 264872112.5 278,812,750.00 292753387.5
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 3104069.995 3,267,442.10 3430814.205
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24

Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2204750568 2,320,790,071.92 2436829576
Outflows
Ending Cash 8802652743 9265950256 9729247769
Balance
2025
Beginning Cash 8802652743 9,265,950,256 9729247769
Balance
Cash Inflow 3822576940 4,023,765,200 4224953460
Loan Proceeds
Total Cash 3822576940 4,023,765,200 4224953460
Inflow
Cash Outflows
Raw Material 738882276.6 777,770,817.50 816659358.4
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.993 4,901,163.15 5146221.308
Supervisory and
Clerical Labor
Utilities 84365425.17 88,805,710.71 93245996.25
Maintenance 264872112.5 278,812,750.00 292753387.5
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 3104069.995 3,267,442.10 3430814.205
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2204750568 2,320,790,071.92 2436829576
Outflows
Ending Cash 10420479115 10968925384 11517371653
Balance
2026
Beginning Cash 10420479115 10,968,925,384 11517371653
Balance
Cash Inflow 3822576940 4,023,765,200 4224953460
Loan Proceeds
Total Cash 3822576940 4,023,765,200 4224953460
Inflow
Cash Outflows
Raw Material 738882276.6 777,770,817.50 816659358.4
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.993 4,901,163.15 5146221.308

Supervisory and
Clerical Labor
Utilities 84365425.17 88,805,710.71 93245996.25
Maintenance 264872112.5 278,812,750.00 292753387.5
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 3104069.995 3,267,442.10 3430814.205
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2204750568 2,320,790,071.92 2436829576

Outflows
Ending Cash 12038305487 12671900512 13305495538
Balance
2027
Beginning Cash 12038305487 12,671,900,512 13305495538
Balance
Cash Inflow 3822576940 4,023,765,200 4224953460
Loan Proceeds
Total Cash 3822576940 4,023,765,200 4224953460
Inflow
Cash Outflows
Raw Material 738882276.6 777,770,817.50 816659358.4
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.993 4,901,163.15 5146221.308
Supervisory and
Clerical Labor
Utilities 84365425.17 88,805,710.71 93245996.25
Maintenance 264872112.5 278,812,750.00 292753387.5

and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 3104069.995 3,267,442.10 3430814.205
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2204750568 2,320,790,071.92 2436829576
Outflows
Ending Cash 13656131858 14374875640 15093619422
Balance
2028
Beginning Cash 13656131858 14,374,875,640 15093619422
Balance
Cash Inflow 3822576940 4,023,765,200 4224953460
Loan Proceeds
Total Cash 3822576940 4,023,765,200 4224953460
Inflow
Cash Outflows
Raw Material 738882276.6 777,770,817.50 816659358.4
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.993 4,901,163.15 5146221.308
Supervisory and
Clerical Labor
Utilities 84365425.17 88,805,710.71 93245996.25
Maintenance 264872112.5 278,812,750.00 292753387.5
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 3104069.995 3,267,442.10 3430814.205

Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2204750568 2,320,790,071.92 2436829576
Outflows
Ending Cash 15273958230 16077850768 16881743307
Balance
2029
Beginning Cash 15273958230 16,077,850,768 16881743307
Balance
Cash Inflow 3822576940 4,023,765,200 4224953460
Loan Proceeds
Total Cash 3822576940 4,023,765,200 4224953460
Inflow
Cash Outflows
Raw Material 738882276.6 777,770,817.50 816659358.4
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.993 4,901,163.15 5146221.308
Supervisory and
Clerical Labor
Utilities 84365425.17 88,805,710.71 93245996.25
Maintenance 264872112.5 278,812,750.00 292753387.5
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 3104069.995 3,267,442.10 3430814.205
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24

Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2204750568 2,320,790,071.92 2436829576
Outflows
Ending Cash 16891784602 17780825897 18669867191
Balance
2030
Beginning Cash 16891784602 17,780,825,897 18669867191
Balance
Cash Inflow 3822576940 4,023,765,200 4224953460
Loan Proceeds
Total Cash 3822576940 4,023,765,200 4224953460
Inflow
Cash Outflows
Raw Material 738882276.6 777,770,817.50 816659358.4
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.993 4,901,163.15 5146221.308
Supervisory and
Clerical Labor
Utilities 84365425.17 88,805,710.71 93245996.25
Maintenance 264872112.5 278,812,750.00 292753387.5
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 3104069.995 3,267,442.10 3430814.205
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses

Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2204750568 2,320,790,071.92 2436829576
Outflows
Ending Cash 18509610973 19483801025 20457991076
Balance
5. Table 74. Cash Flow Sensitivity Analysis for SMR Plus
2023
Beginning Cash 1301500000 1,370,000,000 1438500000
Balance
Cash Inflow 3771738420 3,970,250,968 4168763516
Loan Proceeds 4275000000 4,500,000,000 4725000000
Total Cash 8046738420 8,470,250,968 8893763516
Inflow
Cash Outflows
Raw Material 776530448.1 817,400,471.70 858270495.3
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303

Supervisory and
Clerical Labor
Utilities 1263503.382 1,330,003.56 1396503.738
Maintenance 304888569.4 320,935,336.20 336982103
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2200782533 2,316,613,193.11 2432443853

Outflows
Ending Cash 7147455886 7523637775 7899819664
Balance
2024
Beginning Cash 7147455886 7,523,637,775 7899819664
Balance
Cash Inflow 3771738420 3,970,250,968 4168763516
Loan Proceeds
Total Cash 3771738420 3,970,250,968 4168763516
Inflow
Cash Outflows
Raw Material 776530448.1 817,400,471.70 858270495.3
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 1263503.382 1,330,003.56 1396503.738
Maintenance 304888569.4 320,935,336.20 336982103

and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2200782533 2,316,613,193.11 2432443853
Outflows
Ending Cash 8718411772 9177275550 9636139327
Balance
2025
Beginning Cash 8718411772 9,177,275,550 9636139327
Balance
Cash Inflow 3771738420 3,970,250,968 4168763516
Loan Proceeds
Total Cash 3771738420 3,970,250,968 4168763516
Inflow
Cash Outflows
Raw Material 776530448.1 817,400,471.70 858270495.3
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 1263503.382 1,330,003.56 1396503.738
Maintenance 304888569.4 320,935,336.20 336982103
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542

Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2200782533 2,316,613,193.11 2432443853
Outflows
Ending Cash 10289367658 10830913325 11372458991
Balance
2026
Beginning Cash 10289367658 10,830,913,325 11372458991
Balance
Cash Inflow 3771738420 3,970,250,968 4168763516
Loan Proceeds
Total Cash 3771738420 3,970,250,968 4168763516
Inflow
Cash Outflows
Raw Material 776530448.1 817,400,471.70 858270495.3
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 1263503.382 1,330,003.56 1396503.738
Maintenance 304888569.4 320,935,336.20 336982103
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24

Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2200782533 2,316,613,193.11 2432443853
Outflows
Ending Cash 11860323545 12484551100 13108778655
Balance
2027
Beginning Cash 11860323545 12,484,551,100 13108778655
Balance
Cash Inflow 3771738420 3,970,250,968 4168763516
Loan Proceeds
Total Cash 3771738420 3,970,250,968 4168763516
Inflow
Cash Outflows
Raw Material 776530448.1 817,400,471.70 858270495.3
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 1263503.382 1,330,003.56 1396503.738
Maintenance 304888569.4 320,935,336.20 336982103
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2200782533 2,316,613,193.11 2432443853
Outflows
Ending Cash 13431279431 14138188874 14845098318
Balance
2028
Beginning Cash 13431279431 14,138,188,874 14845098318
Balance
Cash Inflow 3771738420 3,970,250,968 4168763516
Loan Proceeds
Total Cash 3771738420 3,970,250,968 4168763516
Inflow
Cash Outflows
Raw Material 776530448.1 817,400,471.70 858270495.3
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303

Supervisory and
Clerical Labor
Utilities 1263503.382 1,330,003.56 1396503.738
Maintenance 304888569.4 320,935,336.20 336982103
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2200782533 2,316,613,193.11 2432443853

Outflows
Ending Cash 15002235317 15791826649 16581417982
Balance
2029
Beginning Cash 15002235317 15,791,826,649 16581417982
Balance
Cash Inflow 3771738420 3,970,250,968 4168763516
Loan Proceeds
Total Cash 3771738420 3,970,250,968 4168763516
Inflow
Cash Outflows
Raw Material 776530448.1 817,400,471.70 858270495.3
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 1263503.382 1,330,003.56 1396503.738
Maintenance 304888569.4 320,935,336.20 336982103

and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2200782533 2,316,613,193.11 2432443853
Outflows
Ending Cash 16573191203 17445464424 18317737645
Balance
2030
Beginning Cash 16573191203 17,445,464,424 18317737645
Balance
Cash Inflow 3771738420 3,970,250,968 4168763516
Loan Proceeds
Total Cash 3771738420 3,970,250,968 4168763516
Inflow
Cash Outflows
Raw Material 776530448.1 817,400,471.70 858270495.3
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 1263503.382 1,330,003.56 1396503.738
Maintenance 304888569.4 320,935,336.20 336982103
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542

Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 44145352.08 46,468,791.66 48792231.24
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 23453079.5 24,687,452.10 25921824.71
Development
Total Cash 2200782533 2,316,613,193.11 2432443853
Outflows
Ending Cash 18144147089 19099102199 20054057309
Balance
6. Table 75. Cash Flow Sensitivity Analysis for ATR
2023
Beginning Cash 1425000000 1,500,000,000 1575000000

Balance
Cash Inflow 3604275270 3,793,973,968 3983672666
Loan Proceeds 4275000000 4,500,000,000 4725000000
Total Cash 7879275270 8,293,973,968 8708672666
Inflow
Cash Outflows
Raw Material 719626700.1 757,501,789.60 795376879.1
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 116239245.4 122,357,100.40 128474955.4
Maintenance 283598591.8 298,524,833.50 313451075.2
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36

Insurance 50814761.57 53,489,222.70 56163683.84
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 22620755.37 23,811,321.44 25001887.51
Development
Total Cash 2242569311 2,360,599,274.87 2478629239
Outflows
Ending Cash 7061705958 7433374693 7805043428
Balance
2024
Beginning Cash 7061705958 7,433,374,693 7805043428
Balance
Cash Inflow 3604275270 3,793,973,968 3983672666
Loan Proceeds
Total Cash 3604275270 3,793,973,968 3983672666

Inflow
Cash Outflows
Raw Material 719626700.1 757,501,789.60 795376879.1
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 116239245.4 122,357,100.40 128474955.4
Maintenance 283598591.8 298,524,833.50 313451075.2
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 50814761.57 53,489,222.70 56163683.84
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4

Expenses
Research and 22620755.37 23,811,321.44 25001887.51
Development
Total Cash 2242569311 2,360,599,274.87 2478629239
Outflows
Ending Cash 8423411917 8866749386 9310086856
Balance
2025
Beginning Cash 8423411917 8,866,749,386 9310086856
Balance
Cash Inflow 3604275270 3,793,973,968 3983672666
Loan Proceeds
Total Cash 3604275270 3,793,973,968 3983672666
Inflow
Cash Outflows
Raw Material 719626700.1 757,501,789.60 795376879.1
Operating Labor 31040699.92 32,674,420.97 34308142.02

Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 116239245.4 122,357,100.40 128474955.4
Maintenance 283598591.8 298,524,833.50 313451075.2
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 50814761.57 53,489,222.70 56163683.84
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 22620755.37 23,811,321.44 25001887.51
Development
Total Cash 2242569311 2,360,599,274.87 2478629239
Outflows
Ending Cash 9785117875 10300124079 10815130283
Balance
2026
Beginning Cash 9785117875 10,300,124,079 10815130283
Balance
Cash Inflow 3604275270 3,793,973,968 3983672666
Loan Proceeds
Total Cash 3604275270 3,793,973,968 3983672666
Inflow
Cash Outflows
Raw Material 719626700.1 757,501,789.60 795376879.1
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 116239245.4 122,357,100.40 128474955.4

Maintenance 283598591.8 298,524,833.50 313451075.2
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 50814761.57 53,489,222.70 56163683.84
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 22620755.37 23,811,321.44 25001887.51
Development
Total Cash 2242569311 2,360,599,274.87 2478629239
Outflows
Ending Cash 11146823834 11733498773 12320173711
Balance
2027
Beginning Cash 11146823834 11,733,498,773 12320173711
Balance
Cash Inflow 3604275270 3,793,973,968 3983672666
Loan Proceeds
Total Cash 3604275270 3,793,973,968 3983672666
Inflow
Cash Outflows
Raw Material 719626700.1 757,501,789.60 795376879.1
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 116239245.4 122,357,100.40 128474955.4
Maintenance 283598591.8 298,524,833.50 313451075.2
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542

Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 50814761.57 53,489,222.70 56163683.84
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 22620755.37 23,811,321.44 25001887.51
Development
Total Cash 2242569311 2,360,599,274.87 2478629239
Outflows
Ending Cash 12508529792 13166873466 13825217139
Balance
2028
Beginning Cash 12508529792 13,166,873,466 13825217139
Balance
Cash Inflow 3604275270 3,793,973,968 3983672666
Loan Proceeds
Total Cash 3604275270 3,793,973,968 3983672666
Inflow
Cash Outflows
Raw Material 719626700.1 757,501,789.60 795376879.1
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 116239245.4 122,357,100.40 128474955.4
Maintenance 283598591.8 298,524,833.50 313451075.2
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 50814761.57 53,489,222.70 56163683.84

Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 22620755.37 23,811,321.44 25001887.51
Development
Total Cash 2242569311 2,360,599,274.87 2478629239
Outflows
Ending Cash 13870235751 14600248159 15330260567
Balance
2029
Beginning Cash 13870235751 14,600,248,159 15330260567
Balance
Cash Inflow 3604275270 3,793,973,968 3983672666
Loan Proceeds
Total Cash 3604275270 3,793,973,968 3983672666
Inflow
Cash Outflows
Raw Material 719626700.1 757,501,789.60 795376879.1
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303
Supervisory and
Clerical Labor
Utilities 116239245.4 122,357,100.40 128474955.4
Maintenance 283598591.8 298,524,833.50 313451075.2
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 50814761.57 53,489,222.70 56163683.84
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 22620755.37 23,811,321.44 25001887.51
Development
Total Cash 2242569311 2,360,599,274.87 2478629239
Outflows
Ending Cash 15231941709 16033622852 16835303995
Balance
2030
Beginning Cash 15231941709 16,033,622,852 16835303995
Balance
Cash Inflow 3604275270 3,793,973,968 3983672666
Loan Proceeds
Total Cash 3604275270 3,793,973,968 3983672666
Inflow
Cash Outflows
Raw Material 719626700.1 757,501,789.60 795376879.1
Operating Labor 31040699.92 32,674,420.97 34308142.02
Direct 4656104.989 4,901,163.15 5146221.303

Supervisory and
Clerical Labor
Utilities 116239245.4 122,357,100.40 128474955.4
Maintenance 283598591.8 298,524,833.50 313451075.2
and Repairs
Operating 45733285.41 48,140,300.43 50547315.45
Supplies
Laboratory 4573328.538 4,814,030.04 5054731.542
Charges
Depreciation 95464096.66 100,488,522.80 105512948.9
Local Taxes 10670999.28 11,232,630.82 11794262.36
Insurance 50814761.57 53,489,222.70 56163683.84
Loan Payment 813181496.8 855,980,522.90 898779549
Overhead Cost 15520349.97 16,337,210.49 17154071.01
Administrative 6208139.981 6,534,884.19 6861628.4
Expenses
Research and 22620755.37 23,811,321.44 25001887.51
Development
Total Cash 2242569311 2,360,599,274.87 2478629239

Outflows
Ending Cash 16593647668 17466997545 18340347422
Balance
G. Payback Period
Payback period is defined as the minimum length of time theoretically
necessary to recover the original capital investment in the form of cash flow to
the project based on total income minus all costs.
1. Payback Period for SMR
Table 76. Estimation of the Net Income per year for SMR
Cash Inflow Cash Outflow Net Income
2023 4,023,765,200 2,320,790,071.92 1,702,975,128
2024 4,023,765,200 2,320,790,071.92 1,702,975,128
2025 4,023,765,200 2,320,790,071.92 1,702,975,128
2026 4,023,765,200 2,320,790,071.92 1,702,975,128
2027 4,023,765,200 2,320,790,071.92 1,702,975,128
2028 4,023,765,200 2,320,790,071.92 1,702,975,128
2029 4,023,765,200 2,320,790,071.92 1,702,975,128

2030 4,023,765,200 2,320,790,071.92 1,702,975,128
Table 76 shows the estimation of the net income for SMR. Cash
inflow and outflow are from the sensibility study performed. Payback
period will then be calculated using:
𝑇𝑜𝑡𝑎𝑙 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡

𝑃𝑎𝑦𝑏𝑎𝑐𝑘 𝑃𝑒𝑟𝑖𝑜𝑑 =
𝑁𝑒𝑡 𝐼𝑛𝑐𝑜𝑚𝑒 𝑝𝑒𝑟 𝑌𝑒𝑎𝑟
5,477,642,247.85
=
1,702,975,128.00
𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅 = 𝟑. 𝟐𝟐 𝒚𝒆𝒂𝒓𝒔
2. Payback Period for SMR Plus
Table 77. Estimation of the Net Income per year for SMR Plus
2023 3,970,250,968 2,316,613,193.11 1,653,637,775
2024 3,970,250,968 2,316,613,193.11 1,653,637,775
2025 3,970,250,968 2,316,613,193.11 1,653,637,775
2026 3,970,250,968 2,316,613,193.11 1,653,637,775
2027 3,970,250,968 2,316,613,193.11 1,653,637,775

2028 3,970,250,968 2,316,613,193.11 1,653,637,775
2029 3,970,250,968 2,316,613,193.11 1,653,637,775
2030 3,970,250,968 2,316,613,193.11 1,653,637,775
Table 77 shows the estimation of the net income for SMR Plus.
Cash inflow and outflow are from the sensibility study performed. Payback

5,477,642,247.85
=
1,653,637,775
𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅 = 𝟑. 𝟑𝟏 𝒚𝒆𝒂𝒓𝒔
3. Payback Period for ATR
Table 78. Estimation of the Net Income per year for ATR
2023 3,793,973,968 2,360,599,274.87 1,433,374,693
2024 3,793,973,968 2,360,599,274.87 1,433,374,693
2025 3,793,973,968 2,360,599,274.87 1,433,374,693
2026 3,793,973,968 2,360,599,274.87 1,433,374,693

2027 3,793,973,968 2,360,599,274.87 1,433,374,693
2028 3,793,973,968 2,360,599,274.87 1,433,374,693
2029 3,793,973,968 2,360,599,274.87 1,433,374,693
2030 3,793,973,968 2,360,599,274.87 1,433,374,693
Table 78 shows the estimation of the net income for ATR. Cash
inflow and outflow are from the sensibility study performed. Payback

5,477,642,247.85
=
1,433,374,693
𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅 = 𝟒. 𝟎𝟓 𝒚𝒆𝒂𝒓𝒔
H. Net Present Value
Net present value applies to a series of cash flows occurring at different
times. The present value of the cash flow depends on the interval of time
between now and the cash flow. It also depends on the discount rate. NPV
accounts for the time value of money. NPV is given by the equation:
𝑡
𝐶𝑡
∑ − 𝐶𝑜
(1 + 𝑟)8
𝑡=1
Ct = Net Cash Inflow
Co = Total Capital Investment
r = Discount rate
t = Number of Periods
Table 79. Estimation of the Net Present Value
Ct Co r t NPV
1,702,975,12 5,477,642,247.85 877,961

SMR 10% 8
8 ,476.4
-
SMR 1,433,374,69 5,477,642,247.85
10% 8 128,203
Plus 3
,264.7
365,296
ATR 1,653,637,775 5,806,176,973.00 10% 8
,836.8
A positive NPV indicates that the projected earnings generated by
the project or investment exceeds the anticipated cost while the one with
negative value will result in a net loss. Therefore, SMR Plus will not be
pursued.
I. Return on Investment For SMR
ROI (Return on Investment) measures the gain or loss generated on an
investment relative to the amount of money invested. ROI is usually expressed
as a percentage and is typically used for personal financial decisions, to compare
a company's profitability or to compare the efficiency of different investments.
ROI = (Net Profit / Total Investment) * 100
= 1,702,975,128.00/5,477,642,247.85 ∗ 100
= 31.09%
The proposed SMR plant will have a rate of investment of 31.09% per year.
CHAPTER V
ENVIRONMENTAL MANAGEMENT OF THE PROJECT
This chapter includes different impacts of Hydrogen production to humans
and all of the community, and the proper mitigation to it, complying with
environmental impact assessment (EIA) procedure.
Socio-Economic Benefits for each Design Option
This section presents the socio-economic benefits of the project.
A. Design option 1
The construction and development of steam methane reforming plant will
create job opportunities to the people within the area. This will greatly improve
the employment rate and thus decreasing the number of unemployed people
in the country. During the operation stage there would be approximately of
170 permanent staff members (managing operation and maintenance).
B. Design option 2
The Steam methane reforming plant provides socio-economic benefits to
Barangay Tabangao and its municipality. This project will provide more
knowledge and experience about steam reforming plant. Because of their
negative impact on the environment, public opinion should be taken into
consideration. The greater the information given, the greater the acceptance.
C. Design option 3
There are several benefits that can be acquired during the construction of
steam methane reforming plant. It would create an average around 500 new
jobs during the construction and operation stage. These data are general for
a regular plant but there are many more site-related workers that are difficult
to quantify: staff in charge of equipment suppliers, manufacturers and nuclear
fuel suppliers, staff from the regulatory institution or from engineering
companies, research groups, and etcetera. Ongoing training plans make it
possible to have highly qualified staff on the site, which improves safety,
availability and economic efficiency while guaranteeing quality execution of
safety-related tasks. So this power plant would leave a positive socio-
economic benefit.
Environmental Impact Assessment (EIA)
The main objective of the Environmental Impact Assessment is to
evaluate the project likely impacts on the environment. One of its key objectives
is to assist in ensuring environmentally and socially sound management of the
project during its lifecycle.
LAWS
A. Presidential Decree (PD) 1586: Philippine Environmental Impact
Statement
The law requires private corporations, firms or entities including
agencies and instrumentalities of the government to prepare an
environmental impact statement (EIS) for every proposed project and
undertaking which significantly affect the quality of the environment. The
EIS is a document that provides a comprehensive study of the significant
impact on the environment.
D. NATIONAL PLUMBING CODE 1993-1994 REVISION
ARTICLE I - DISPOSAL OF LIQUID WASTE P-1. It shall be
unlawful for any person to cause, suffer or permit the disposal of sewage,
human excrement or other liquid wastes, in any place or manner except
through and by means of an approved plumbing and drainage system,
installed and maintained in accordance with the provisions of this Code.
E. Republic Act No. 9275: The Philippine Clean Water Act of 2004
The law applies to water quality management in all water bodies. It
primarily applies to the abatement and control of pollution from land-based
sources. The water quality standards and regulations and the civil liability
and penal provisions under the law shall be enforced irrespective of
sources of pollution (Section 3).
In addition to regulating pollution of water bodies, DENR shall
formulate and apply standards for the transport and disposal of effluent,
sewage and septage offsite, whether offshore or on land as well as
disposal of individual wastewater on land. The Department of Agriculture

(DA) shall develop guidelines for re-use of wastewater for irrigation
purposes or as soil conditioner or fertilizer (Rule 3.1).
F. Republic Act (RA) 9003: Philippine Ecological Solid Waste
Management Act
This Act makes provision for the efficient solid waste management,
for the volume reduction of the waste, its environment friendly disposal,
composting, recycling, re-use, recovery, green charcoal process; for the
collection, treatment and disposal in environmentally sound solid waste
management facilities whereas it shall be possible to correctly dispose the
proper segregation, collection, transport, storage, treatment and disposal
of solid waste
LGUs Role under the Clean Water Act
LGUs shall share the responsibility in the management and improvement of
water quality within their territorial jurisdictions. (Sec. 20) Local Government Units
are the key players in the Water Quality Management Areas designated by
DENR in accordance with Sec. 5 of the Clean Water Act and its IRR
Waste Management
The proposed plant is set to follow the Presidential Decree No. 856
(Sanitation Code of the Philippines) and Republic Act no. 9003 (Ecological Solid
Waste Management Act) that covers the handling of solid waste disposal.
Social and Environmental Impacts
Hydrogen could have the potential to reshape the entire energy industry.
Environmental benefits are obvious. Whether hydrogen is combusted or
consumed in a fuel cell, it directly produces almost no local air pollutants or
greenhouse gas emissions. If vehicles were all run on hydrogen fuel cells, it
would be a huge step towards solving air pollution problems in cities. Emissions
of volatile organic compounds (VOCs, the precursors of ozone), SOx, NOx,
carbon monoxide, and particulate matter could be dramatically reduced if all
vehicles were fueled by hydrogen. According to the EPA, vehicles in the U.S.
account for 78% of carbon monoxide emissions, 45% of NOx, and 37% of
VOCs.These pollutants lead to human health and visibility problems.
Although no greenhouse gasses are released to the atmosphere when hydrogen
is consumed, some production methods do release greenhouse gasses into the
atmosphere. However, when carbon-based fuels are reformed or gasified to
produce hydrogen, a stream of nearly pure carbon dioxide is easily produced as
a byproduct. These technologies effectively decarbonize the fossil fuels.
Technologies are emerging to isolate this carbon dioxide from the atmosphere by
sequestering it in the ocean or in geological formations; however, the long-term
effects of carbon sequestration and storage security are not entirely known.
Material Safety Data Sheet

1. Chemical Products and Compositions
PRODUCT IDENTIFIER: Hydrogen
PRODUCT SYNONYMS: Dihydrogen, parahydrogen, refrigerant gas R702,
water gas
GENERAL USE: Some see hydrogen gas as the clean fuel of the future –
generated from water and returning to water when it is oxidised. Hydrogen-
powered fuel cells are increasingly being seen as ‘pollution-free’ sources of
energy and are now being used in some buses and cars. In the chemical industry
it is used to make ammonia for agricultural fertiliser (the Haber process) and
cyclohexane and methanol, which are intermediates in the production of plastics
and pharmaceuticals. It is also used to remove sulfur from fuels during the oil-
refining process. Large quantities of hydrogen are used to hydrogenate oils to
form fats, for example to make margarine. In the glass industry hydrogen is used
as a protective atmosphere for making flat glass sheets. In the electronics
industry it is used as a flushing gas during the manufacture of silicon chips. The
low density of hydrogen made it a natural choice for one of its first practical uses
– filling balloons and airships.
PRODUCT DESCRIPTION: hydrogen is a colorless, odorless, tasteless, non-
toxic, nonmetallic, highly combustible diatomic gas with the molecular formula
H2.
2. Hazards Identification/Emergency Overview
Hydrogen is a colorless, odorless, flammable gas or a colorless, odorless,

cryogenic liquid. The main health hazard associated with releases of this gas is
asphyxiation, by displacement of oxygen. The liquefied gas can cause frostbite to
any contaminated tissue. Hydrogen poses a serious fire hazard when it is
accidentally released. Flame or high temperature impinging on a localized area
of the cylinder of Hydrogen can cause the cylinder to rupture without activating
the cylinder’s relief devices. Provide adequate fire protection during emergency
response situations.
Figure 41. HYDROGEN GAS

OSHA REGULATORY STATUS: This material is considered hazardous by the
OSHA Hazard Communications Standard (29 CFR 1910.1200).
POTENTIAL HEALTH EFFECTS
Effects of a Single (Acute) Overexposure
Inhalation: Asphyxiant. Effects are due to lack of oxygen. Moderate
concentrations may cause headache, drowsiness, dizziness, excitation, excess
salivation, vomiting, and unconsciousness. Lack of oxygen can kill.
Skin Contact: No harm expected
Swallowing: An unlikely route of exposure; this product is a gas at normal
temperature and pressure.
Eye Contact: No harm expected.
Effects of Repeated (Chronic) Overexposure: No harm expected.
Medical Conditions Aggravated by Overexposure: The toxicology and the
physical and chemical properties of hydrogen suggest that overexposure is
unlikely to aggravate existing medical conditions.
SYMPTOMS OF OVEREXPOSURE BY ROUTE OF EXPOSURE: The most
significant route of overexposure for this gas is by inhalation. The following
paragraphs describe symptoms of exposure by route of exposure.
CONCENTRATION SYMPTOMS OF EXPOSURE

12-16% Oxygen: Breathing and pulse rate increased,
muscular coordination slightly
disturbed.
10-14% Oxygen: Emotional upset, abnormal fatigue,
disturbed respiration.
6-10% Oxygen: Nausea and vomiting, collapse or loss
of consciousness.
Below 6%: Convulsive movements, possible
respiratory collapse, and death.
3. First Aid Measures
Remove victim(s) to a safe location. Trained personnel should administer
supplemental oxygen and/or cardiopulmonary resuscitation, if necessary.
Victim(s) must be taken for medical attention. Rescuers should be taken for
medical attention, if necessary. Take copy of label and MSDS to physician or
other health professional with victim(s). In case of frostbite, place the frostbitten
part in warm water. DO NOT USE HOT WATER. If warm water is not available,
or is impractical to use, wrap the affected parts gently in blankets. Alternatively, if
the fingers or hands are frostbitten, place the affected area of the body in the
armpit. Encourage victim to gently exercise the affected part while being warmed.
Seek immediate medical attention.

INHALATION: Remove to fresh air. If not breathing, give artificial respiration. If
breathing is difficult, qualified personnel may give oxygen. Call a physician.
SKIN: An unlikely route of exposure. This product is a gas at normal temperature
and pressure.
SWALLOWING: An unlikely route of exposure. This product is a gas at normal
EYE CONTACT: An unlikely route of exposure. This product is a gas at normal
4. FIRE-FIGHTING MEASURES
FLASH POINT: Not applicable.
AUTOIGNITION TEMPERATURE: 571°C (1060°F)
FLAMMABLE LIMITS (in air by volume, %): Lower (LEL): 4.0% Upper (UEL):
75.0% FIRE EXTINGUISHING MATERIALS: Extinguish fires of this gas by
shutting-off the source of the gas. Use water spray to cool fire-exposed
structures and equipment. UNUSUAL FIRE AND EXPLOSION HAZARDS: An
extreme explosion hazard exists in areas in which the gas has been released,
but the material has not yet ignited. Hydrogen burns with an almost invisible blue
flame.
FLAMMABLE PROPERTIES: Flammable gas. Flame is nearly invisible.
Escaping gas may ignite spontaneously. Hydrogen has a low ignition energy.
Fireball forms if gas cloud ignites immediately after release. Forms explosive
mixtures with air and oxidizing agents.
SUITABLE EXTINGUISHING MEDIA: CO2, dry chemical, water spray, or fog
PRODUCTS OF COMBUSTION: Water (H2O)
PROTECTION OF FIREFIGHTERS: Flammable high-pressure gas. Evacuate all
personnel from danger area. Immediately deluge cylinders with water from
maximum distance until cool; then move them away from fire area if without risk.
Continue cooling water spray while moving cylinders. Do not extinguish flames
emitted from cylinders; allow them to burn out. Self-contained breathing
apparatus may be required by rescue workers. On-site fire brigades must comply
with OSHA 29 CFR 1910.156.
Specific Physical and Chemical Hazards: Heat of fire can build pressure in
cylinder and cause it to rupture. Hydrogen cylinders are equipped with a pressure
relief device. (Exceptions may exist where authorized by DOT.) No part of a
cylinder should be subjected to a temperature higher than 125°F (52°C). If
venting or leaking hydrogen catches fire, do not extinguish flames. Flammable
gas may spread from leak, creating an explosive re-ignition hazard. Vapors can
be ignited by pilot lights, other flames, smoking, sparks, heaters, electrical
equipment, static discharge, or other ignition sources at locations distant from
product handling point. Explosive atmospheres may linger. Before entering area,
especially confined areas, check atmosphere with approved explosion meter.

Protective Equipment and Precautions for Firefighters: Firefighters should
wear self-contained breathing apparatus and full fire-fighting turnout gear.
5. ACCIDENTAL MEASURES
SPILL AND LEAK RESPONSE: Uncontrolled releases should be responded to
by trained personnel using preplanned procedures. Proper protective equipment
should be used. In case of a release, clear the affected area and protect people.
Adequate fire protection must be provided. Minimum Personal Protective
Equipment should be Level B: fire-retardant protective clothing, mechanically-
resistant gloves and Self-Contained Breathing Apparatus. Use only non-sparking
tools and equipment. Locate and seal the source of the leaking gas. Protect
personnel attempting the shut-off with water-spray. Allow the gas, which is lighter
than air, to dissipate. Monitor the surrounding area for combustible gas levels
and oxygen. Combustible gas concentration must be below 10% of the LEL (LEL
= 4.0%) prior to entry of response personnel. The atmosphere must have at least
19.5 percent oxygen before personnel can be allowed in the area without Self-
Contained Breathing Apparatus. Attempt to close the main source valve prior to
entering the area. If this does not stop the release (or if it is not possible to reach
the valve), allow the gas to release in-place or remove it to a safe area and allow
the gas to be released there.
RESPONSE TO CRYOGENIC RELEASE: Clear the affected area and allow the
liquid to evaporate and the gas to dissipate. After the gas is formed, follow the
instructions provided in the previous paragraph. If the area must be entered by
emergency personnel, SCBA, Kevlar gloves, and appropriate foot and leg
protection must be worn. This is an extremely flammable gas. Protection of all
personnel and the area must be maintained.
Personal Precautions: Forms explosive mixtures with air. Immediately evacuate
all personnel from danger area. Use self-contained breathing apparatus where
needed. Approach suspected leak area with caution. Remove all sources of
ignition if without risk. Reduce gas with fog or fine water spray. Shut off flow if
without risk. Ventilate area or move cylinder to a well-ventilated area. Flammable
gas may spread from leak. Before entering area, especially confined areas,
check atmosphere with an appropriate device.
Environmental Precautions: Prevent waste from contaminating the surrounding
environment. Keep personnel away. Discard any product, residue, disposable
container, or liner in an environmentally acceptable manner, in full compliance
with federal, state, and local regulations. If necessary, call your local supplier for
assistance.
6. HANDLING AND STORAGE
WORK PRACTICES AND HYGIENE PRACTICES: As with all chemicals, avoid
getting Hydrogen IN YOU. Do not eat or drink while handling chemicals. Be
aware of any signs of dizziness or fatigue; exposures to fatal concentrations of
Hydrogen could occur without any significant warning symptoms.

STORAGE AND HANDLING PRACTICES: Cylinders should be stored in dry,
well-ventilated areas away from sources of heat. Compressed gases can present
significant safety hazards. Store containers away from heavily trafficked areas
and emergency exits. Post “No Smoking or Open Flames” signs in storage or use
areas. Note: Liquid Hydrogen must always be handled in air-tight systems
specifically designed and installed for liquid Hydrogen, according to the
appropriate standards, NFPA-50B, CGA G-5, G-5.3, G-5.4, and the supplier’s
internal specifications. Liquid Hydrogen must never be filled into or handled in
open top or loosely capped Dewars. An atmospheric concentration of Hydrogen
greater than the LEL will immediately be generated near the vicinity of the
Dewar, creating an extreme fire and explosion hazard. This gas is lighter than air
and must not be allowed to accumulate in elevated locations.
SPECIAL PRECAUTIONS FOR HANDLING GAS CYLINDERS: Protect
cylinders against physical damage. Store in cool, dry, well-ventilated area, away
from sources of heat, ignition and direct sunlight. Do not allow area where
cylinders are stored to exceed 52°C (125°F). Isolate from oxidizers such as
oxygen, chlorine, or fluorine. Use a check valve or trap in the discharge line to
prevent hazardous backflow. Post “No Smoking or Open Flame” signs in storage
and use areas. Cylinders should be stored upright and be firmly secured to
prevent falling or being knocked over. Cylinders can be stored in the open, but in
such cases, should be protected against extremes of weather and from the
dampness of the ground to prevent rusting. Never tamper with pressure relief
devices in valves and cylinders. Electrical equipment should be non-sparking or

explosion proof. The following rules are applicable to situations in which cylinders
are being used: Before Use: Move cylinders with a suitable hand-truck. Do not
drag, slide or roll cylinders. Do not drop cylinders or permit them to strike each
other. Secure cylinders firmly. Leave the valve protection cap, if provided, in-
place until cylinder is ready for use. During Use: Use designated CGA fittings and
other support equipment. Do not use adapters. Do not heat cylinder by any
means to increase the discharge rate of the product from the cylinder. Use check
valve or trap in discharge line to prevent hazardous backflow into the cylinder. Do
not use oils or grease on gas-handling fittings or equipment. After Use: Close
main cylinder valve. Replace valve protection cap, if provided. Mark empty
cylinders “EMPTY”.
7. Exposure Controls/Personal Protection
PERSONAL PROTECTIVE EQUIPMENT:
Skin Protection: Wear work gloves for cylinder handling and metatarsal shoes
for cylinder handling. Regardless of protective equipment, never touch live
electrical parts.
Eye/Face Protection: Splash goggles or safety glasses, for protection from
rapidly expanding gases and splashes of liquid Hydrogen.
Respiratory Protection: None required under normal use. An air-supplied
respirator must be used in confined spaces.

HAND PROTECTION: Wear mechanically-resistant gloves when handling
cylinders of Hydrogen. Use low temperature protective gloves (e.g., Kevlar) when
working with containers of Liquid Hydrogen.
BODY PROTECTION: Use body protection appropriate for task. Transfer of
large quantities under pressure may require protective equipment appropriate to
protect employees from splashes of liquefied product, as well as fire retardant
items. If a hazard of injury to the feet exists due to falling objects, rolling objects,
where objects may pierce the soles of the feet or where employee’s feet may be
exposed to electrical hazards, use foot protection.
8. PHYSICAL AND CHEMICAL PROPERTIES
APPEARANCE: Colorless gas
ODOR: Odorless
ODOR THRESHOLD: Not applicable.
PHYSICAL STATE: Gas at normal temperature and pressure
pH: Not applicable.
MELTING POINT at 1 atm: -434.56°F (-259.2°C)
BOILING POINT at 1 atm: -422.97°F (-252.76°C)
FLASH POINT (test method): Not available.
EVAPORATION RATE (Butyl Acetate = 1): Not applicable.

FLAMMABILITY: Flammable
FLAMMABLE LIMITS IN AIR, % by volume: LOWER: 4.0% UPPER: 75.0%
LIQUID DENSITY at boiling point and 1 atm: 4.43 lb/ft3 (70.96 kg/m3)
VAPOR PRESSURE at 68°F (20°C): Not applicable.
VAPOR DENSITY at 70°F (21.1°C) and 1 atm: 0.0052 lb/ft3 (0.083 kg/m3)
SPECIFIC GRAVITY (H2O = 1) at 19.4°F (-7°C): Not available.
SPECIFIC GRAVITY (Air = 1) at 32°F (0°C) and 1atm: 0.07
SOLUBILITY IN WATER vol/vol at 60°F (15.6°C) and 1 atm: 0.019
PARTITION COEFFICIENT: n-octanol/water: Not available.
AUTOIGNITION TEMPERATURE: 932°F (500°C)
DECOMPOSITION TEMPERATURE: Not available.
PERCENT VOLATILES BY VOLUME: 100
MOLECULAR WEIGHT: 2.016
MOLECULAR FORMULA: H2
9. TOXICOLOGICAL INFORMATION
TOXICITY DATA: There are no specific toxicology data for Hydrogen. Hydrogen
is a simple asphyxiant, which acts to displace oxygen in the environment.

SUSPECTED CANCER AGENT: Hydrogen is not found on the following lists:
FEDERAL OSHA Z LIST, NTP, CAL/OSHA, IARC, and therefore is not
considered to be, nor suspected to be a cancer-causing agent by these
agencies.
IRRITANCY OF PRODUCT: Contact with rapidly expanding gases can be
irritating to exposed skin and eyes.
SENSITIZATION OF PRODUCT: Hydrogen is not a sensitizer after prolonged or
repeated exposure.
REPRODUCTIVE TOXICITY INFORMATION: Listed below is information
concerning the effects of Hydrogen on the human reproductive system.
Mutagenicity: Hydrogen is not expected to cause mutagenic effects in humans.
Embryotoxcity: No embryotoxic effects have been described for Hydrogen.
Teratogenicity: Hydrogen is not expected to cause teratogenic effects in
humans. Reproductive Toxicity: Hydrogen is not expected to cause adverse
reproductive effects in humans.
BIOLOGICAL EXPOSURE INDICES (BEIs): Currently, Biological Exposure
Indices (BEIs) are not applicable for Hydrogen.
10. ECOLOGICAL INFORMATION
ENVIRONMENTAL STABILITY: Hydrogen occurs naturally in the atmosphere.
The gas will be dissipated rapidly in well-ventilated areas.

EFFECT OF MATERIAL ON PLANTS or ANIMALS: Any adverse effect on
animals would be related to oxygen deficient environments. No adverse effect is
anticipated to occur to plant-life, except for frost produced in the presence of
rapidly expanding gases.
EFFECT OF CHEMICAL ON AQUATIC LIFE: No evidence is currently available
on the effects of Hydrogen on aquatic life.
11. DISPOSAL CONSIDERATIONS
PREPARING WASTES FOR DISPOSAL: Product removed from the cylinder
must be disposed. Return cylinders with residual product. Do not dispose of
locally.
12. TRANSPORTATION INFORMATION
PROPER SHIPPING NAME: Hydrogen, compressed
HAZARD CLASS NUMBER and DESCRIPTION: 2.1 (Flammable Gas)
UN IDENTIFICATION NUMBER: UN 1049 UN 1966
PACKING GROUP: Not Applicable
DOT LABEL(S) REQUIRED: Class 2.1 (Flammable Gas)
SPECIAL PROVISIONS: None None
EXPLOSIVE LIMIT & LIMITED QUANTITY INDEX: 0.12
ERAP INDEX: 3000

PASSENGER CARRYING SHIP INDEX: Forbidden
PASSENGER CARRYING ROAD OR RAIL VEHICLE INDEX: Forbidden
13. REGULATORY INFORMATION
The following selected regulatory requirements may apply to this product. Not all
such requirements are identified. Users of this product are solely responsible for
compliance with all applicable federal, state, and local regulations.
EPA (ENVIRONMENTAL PROTECTION AGENCY) CERCLA:
COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION, AND
LIABILITY ACT OF 1980 (40 CFR Parts 117 and 302):
Reportable Quantity (RQ): None
SARA: SUPERFUND AMENDMENT AND REAUTHORIZATION ACT:
SECTIONS 302/304: Require emergency planning based on Threshold Planning
Quantity (TPQ) and release reporting based on Reportable Quantities (RQ) of
Extremely Hazardous Substances (EHS) (40 CFR Part 355):
TPQ: None
EHS RQ (40 CFR 355): None
SECTIONS 311/312: Require submission of MSDSs and reporting of chemical
inventories with identification of EPA hazard categories. The hazard categories
for this product are as follows:
IMMEDIATE: No PRESSURE: Yes

DELAYED: No REACTIVITY: Nos
FIRE: Yes
Material Safety Data Sheet
14. Chemical Products and Compositions
PRODUCT IDENTIFIER: Carbon Dioxide
PRODUCT SYNONYMS: Carbonic Acid Gas
GENERAL USE: Carbon dioxide is widely used commercially. It is used in the
chemicals processing industries to control reactor temperatures, to neutralise
alkaline effluents and used under supercritical conditions for purifying or dying
polymer, animal or vegetal fibres. ndustrially, carbon dioxide is typically used for
process control, examples of which include the use of carbon dioxide for red
fume suppression during scrap and carbon charging, for nitrogen pick-up
reduction during electric arc furnace tapping and for bottom stirring. In non-
ferrous metallurgy, carbon dioxide is used for fume suppression during ladle
transfer of matte (Cu/Ni production) or bullion (Zn/Pb production). Carbon dioxide
is used to enhance the recovery of oil from wells where primary and secondary
methods are no longer cost-effective on their own.
PRODUCT DESCRIPTION: Carbon Dioxide is a colorless gas with a density
about 60% higher than that of dry air.
15. Hazards Identification/Emergency Overview
Main Hazards: Carbon dioxide does not support life. It can act as a simple
asphyxiant by diluting the concentration of oxygen in air below the levels
necessary to support life. As it is heavier than air it will tend to concentrate at
lower levels.
Adverse Health Effects: Carbon dioxide acts as a stimulant and depressant on
the central nervous system. Increases in heart rate and blood pressure have
been noted at a concentration of 7.6 percent, and dyspnea (laboured breathing),
headache, dizziness and sweating occur if exposure at that level is prolonged.
Chemical Hazards: Carbon dioxide is relatively non-reactive and non-toxic. In
the presence of moisture it can aggressively bring about corrosion in a variety of
steel materials.
Biological Hazards: The greatest physiological effect of carbon dioxide is to
stimulate the respiratory centre, thereby controlling the volume and rate of
respiration. It is able to cause dilation and constriction of blood vessels and is a
vital constituent of the acid-base mechanism that controls the pH of the blood.
Vapour Inhalation: At concentrations of 10% and above, unconsciousness can
result in one minute or less. Impairment in performance has been noted during
prolonged exposure to concentrations of 3% carbon dioxide even when the
oxygen concentration was 21%.
16. First Aid Measures
Ingestion: Prompt medical attention is mandatory in all cases of overexposure to
carbon dioxide. Rescue personnel should be equipped with selfcontained
breathing apparatus. Gaseous carbon dioxide is an asphyxiant. Concentrations
of 10% or more can produce death or unconsciousness. Lower concentrations

may cause sweating, headache, rapid breathing, increase heartbeat, shortness
of breath, dizziness, mental depression, visual disturbance, shaking. Conscious
persons should be assisted to an uncontaminated area and inhale fresh air.
Quick removal from contaminated area is most important. Unconscious persons
should be removed to an uncontaminated area, given mouth-to-mouth
resuscitation and supplemental oxygen.
17. FIRE-FIGHTING MEASURES
Extinguishing Media: Carbon dioxide is an extinguishing medium.
Specific Hazards: Carbon dioxide does not support life. It can act as a simple
asphyxiant by diluting the concentration of oxygen in the air below the levels to
support life.
Emergency Actions: If possible, shut off the source of excess carbon dioxide.
Evacuate area. All cylinders should be removed from the vicinity of the fire.
Cylinders that cannot be removed should be cooled with water from a safe
distance. Cylinders that have been exposed to excessive heat should be clearly
identified and returned to the supplier.
Protective Clothing: Self-contained breathing apparatus. Safety gloves and
shoes, or boots, should be worn when handling cylinders.
Environmental Precautions: Carbon dioxide is heavier than air and could
accumulate in low-lying areas. Care should be taken when entering a potentially
oxygen deficient environment. If possible, ventilate the affected area.

18. ACCIDENTAL MEASURES
Personal Precautions: Do not enter any area where carbon dioxide has been
spilled unless tests have shown that it is safe to do so.
Environmental Precautions: As carbon dioxide is classified as a “greenhouse”
gas, any spillage should be avoided at all times.
Small Spills: Shut off the source of escaping carbon dioxide. Ventilate the area.
Large Spills: Evacuate the area. Shut off the source of the spill if this can be
done without risk. Restrict access to the area until completion of the cleanup
procedure. Ventilate the area using forced-draught if necessary.
19. HANDLING AND STORAGE
Do not allow cylinders to slide or come into contact with sharp edges. Carbon
dioxide cylinders should be stacked vertically at all times, should be firmly
secured in order to prevent them from being knocked over. Use a “first-in first-
out” inventory system to prevent full cylinders from being stored for excessive
periods of time. Keep out of reach of children.
20. Exposure Controls/Personal Protection
Occupational Exposure Hazards: As carbon dioxide is a simple asphyxiant,
avoid any areas where spillage has taken place. Only enter once testing has
proved the atmosphere to be safe, and remember that gas is heavier than air.
Engineering Control Measures: Engineering control measures are preferred to
reduce exposure to oxygen-depleted atmospheres. General methods include
forceddraught ventilation, separate from other exhaust ventilation systems.
Ensure that sufficient fresh air enters at, or near, floor level.
Personal Protection: Self-contained breathing apparatus should always be
worn when entering area where oxygen depletion may have occurred. Safety
goggles, gloves and shoes, or boots, should be worn when handling cylinders.
21. PHYSICAL AND CHEMICAL PROPERTIES
Chemical Symbol: CO2
Molecular Weight: 44.01
Specific volume @ 20°C & 101,325 kPa: 547 ml/g
Density gas @ 101,325 kPa & 20°C: 1522
Relative density (Air=1) @ 101,325 kPa: None
Colour: Acidic
Odour: None
22. TOXICOLOGICAL INFORMATION
Acute Toxicity: TLV 5000 VPM
23. ECOLOGICAL INFORMATION

Carbon dioxide is heavier than air and can cause pockets of oxygendepleted
atmosphere in low-lying areas. It does not pose a hazard to the ecology.
24. DISPOSAL CONSIDERATIONS
Disposal Methods: Small amounts may be blown to the atmosphere under
controlled conditions. The gas supplier should only handle large amounts.
Disposal of Packaging: The gas supplier must only handle the disposal of
cylinders.
25. TRANSPORTATION INFORMATION
ROAD TRANSPORTATION
UN No: 1013
Erg No: 120
Hazchem warning: 2C Non-flammable Gas
SEA TRANSPORTATION
IMDG: 101
26. REGULATORY INFORMATION

SOLID WASTE MANAGEMENT
Methods
The solid wastes of the company are generated from the offices, cafeteria,
clinic, dormitory and laboratory. This includes food wastes, plastics, bottles,
papers, laboratory containers, medical wastes and other solid wastes not
aforementioned.
Laboratory Hazardous Solid Wastes

The personnel of the Laboratory are responsible for taking the hazardous
wastes in the laboratory to the bins. The solid chemical waste containers in the
laboratory should have labels and must be kept sealed and closed at all times.
The waste chemicals containers should not be allowed to accumulate in
the laboratories and other work areas. The filled waste containers is then
transferred to the Material Recovery Facility (MRF) at a regular collection or as
needed prior to disposal.
Segregation
The segregation of the wastes will be mandated and highly practiced by
providing separate waste bins for papers, recyclable plastic bottles, plastics, food
wastes, compost, and laboratory wastes placed on different areas of the plant.
The residual wastes coming from the air filter and dirt from each facility also have
separate bins. The 5S and 3R’s methodology/system is strictly implemented in
the company in order to provide a cleaner and friendlier environment for the
entire plant.
Figure 42. Material Recovery Facility (MFR) Segregation Flow
The waste materials collected within the entire plant are unloaded and
placed on the Materials Recovery Facility of the plant where the recyclable
materials generated are sorted using manual and automatic labor and are
recovered prior to disposal. In the MRF, the materials collected have separate
storage where it placed and recovered.
 Papers from the offices
 Plastic containers from the cafeteria
 Glass bottles and shards waste from the laboratory
 Metal wastes from the workshop
 Hazardous wastes from the laboratory
 Medical wastes from the clinic
 Food wastes from the cafeteria

 Residual and composts wastes
Figure 43. Waste Bins Types for Effective Segregation
The Material Recovery Facility (MRF), the wastes will be sorted into their
respective types. The company will sell the recyclable materials such as papers
and plastic containers to junk shops or other manufacturers wherein they
reprocess the wastes to create new products. For the food wastes, compost,
residual wastes, and other non-recyclable materials, they will be collected and
thrown away into landfill or composts pits through their appropriate collections.
The proposed plant will be under the SGS Philippines via SGS
environmental waste management services that can help us to recycle, treat and
dispose of our waste to meet the ethical standards as well as governing
regulatory requirements.
Their waste management services include:

 Repack of dangerous waste and products
 Waste reconditioning
 Waste care
Processing is carried out in their licensed treatment plants by their accredited
technicians. In cases of urgent reconditioning of dangerous products –
transferring products from drums to other containers, for example – their
environmental waste teams have the expertise to overcome challenges quickly
and efficiently. This ensures that the products are back in the supply chain as
soon as possible and the waste management processes are enhancing the
business by meeting environmental standards.
WASTEWATER MANAGEMENT
Diffused Pond Aeration
Wastewater pond aeration systems provide reliable, low cost, and relatively low
maintenance treatment for municipal and industrial discharges (US-EPA, August
2011). The most common types of pond aeration systems are surface aerators
and diffused aerators. For the treatment of wastewater generated by the plant,
diffused aeration was selected and used.
In diffused aeration system, infused air or oxygen is utilized into the pond. A tube
diffuser is used which consists of a perforated tube suspended in the wastewater
near the bottom and can be taken out while cleaning. The air comes out through
the holes with great force and agitates the sewage. The set up involves air
compressor that pushes air through tubing down to diffuses located and the
bottom of the pond where bubbles are released into the pond. This provides
oxygen to bacteria for treating and stabilizing the wastewater to allow
biodegrading to occur which breaks down the organic matter containing carbon
to form carbon dioxide and water. In diffused aeration process, larger/ deeper
ponds of more than 8 feet deep is typically used.
Diffused aeration process allows the treated wastewater to be safely used for
gardening or lawn watering and can even be recycled for toilet flushing within the
plant.
CHAPTER VI
PROJECT DESIGN TRADE-OFFS
This chapter covers the evaluation of the three design options presented
in the previous chapter using multiple realistic constraints which includes
technical, economic and environmental constraints in selecting the best design
option. The best design option is been selected using design philosophies such
as Worst Case Design and Pareto Optimum.
A. Multiple Realistic Constraints
The following are the realistic constraints that have taken into account in
order to come up with a conclusion which design option is the best.
1. Technical
For the technical area, plant energy efficiency was used as
parameter in determining the best design option. Based on chapter 3, the
values below are computed:
Table 80. Plant Energy Efficiency
MRC DO1(SMR) DO2(SMR+) DO3(ATR)
PEE 82 % 78 % 82%
2. Economics
For the economics area, Net Present value was used as parameter
in determining the best design option. Based on chapter 4, the values
below are computed:
Table 81. Net Present Value
NPV P 877,961,476.4 -P 1287,203,264.4 P 365,296,836.8
3. Environmental
For the environmental area, Level of emission was used as
parameter in determining the best design option. Based on chapter 5, the
values below are computed:
Table 82. Level of Emissions
LOE Medium Medium- Low Low
B. Worst Case Design
In this design philosophy, the designers summarize the multiple realistic
constraints above in order to come up with the best design option by determining
the lowest possible value for the three design option in each parameter. The
table shows the summarize values following a scale from 10 -1 as 10 as the
highest.
Table 83. Summary of Multiple Realistic Constraints
PEE 8.2 7.8 8.2
NPV 7 3 5
LOE 7 8 9
Results
The table below shows the lowest value for each design option.
Table 84. Summary of Results
Design Option Lowest Value
DO1(SMR) 7
DO2(SMR+) 3
DO3(ATR) 5
Based on the Worst Case Design Philosophy, the designers found out that
Design Option 1(SMR) is the best design option to be used in the selection of
Steam Methane Reforming Plant among the three design options.

B. Pareto Optimum Design
In this design philosophy, the designers summarize the multiple realistic
constraints above in order to come up with the best design option by determining
the degree of importance of each parameter and multiplying it to each value. The
table shows the summarize values following a scale from 10 -1 as 10 as the
highest. Degree of importance uses a scale from 1-5 as 5 as the highest.
Table 85. Summary of Multiple Realistic Constraints
MRC DO1(SMR) DO2(SMR+) DO3(ATR) Degree of
Importance
PEE 8.2 7.8 8.2 3
NPV 7 3 5 5
LOE 7 8 9 4
Results
The table below shows the lowest value for each design option.
Table 86. Summary of Results
Design Option Summation
DO1(SMR) 8.2 (3) + 7 (5) + 7 (4) = 87.6

DO2(SMR+) 7.8 (3) + 3 (5) + 8 (4) = 70.4
DO3(ATR) 8.2 (3) + 5 (5) + 9 (4) = 85.6
Based on the Pareto Optimum Design Philosophy, the designers found
out that Design Option 1(SMR) is still the best design option to be used in the
selection of Steam Methane Reforming Plant among the three design options.
CHAPTER VII
PROJECT CONSTRUCTION AND EXECUTION PLAN
Pre-operation and operation phase planning and management are
covered in this chapter. Proper management of the plant is essential to
ensure its profitability and efficiency. Different aspects are considered for the
execution of the proposed plant.
A. Pre-Operation Period
Construction period spans from December of 2019 to January 2023.
Market feasibility study, geographical study, environmental management
study, financial study, and technical study
1. Market Feasibility Study
A market feasibility study determines the depth and condition of a
particular real estate market and its ability to support a particular
development. The key concern of a market feasibility study for multifamily
development is a project's ultimate marketability.
2. Geographical Study
Selecting the best plant location is crucial as it will be the site where all
major manufacturing operations will take place. There are salient factors
which must be considered, analyzed, and graded first accordingly to
determine the optimal plant location. The usual aim is to select a location
that will result in the lowest average cost of the products, delivered to retail
outlets. There may be other social or political objectives such as
increasing employment in a depressed region. Moreover, on a national
basis plant location within a country are likely to be preferred for reasons
of national security, foreign exchange saving, and increasing employment.
2.1 Raw Materials Availability
Raw materials availability is the foremost deciding factor in
choosing a plant location. Without raw materials, production of a
product from a certain company will cease to survive. Preferably, a
plant must be erected near the source of raw materials. The rationale
is to minimize total transportation costs and to reduce consumption of
time. Other Important points to consider are the supply of raw
materials, price of raw materials, storage requirements and lastly
quality of raw materials.
2.2 Accessibility
Accessibility of the target market is vital in increasing the
profitability of the company. Ease of access to the intermediate
distribution centers or location of the target markets significantly affects
the cost of product distribution and the required time for shipping.
Likewise, potential buyers will be more inclined into buying finished
goods from manufacturers that are within their reach. It is also ideal
that marketing and sales of the product should be down in markets in
which it is widely known and consumed.

2.3 Transportation Facilities
Transportation facilities are of great importance to help purchase
raw materials and to deliver finished products faster and cheaper to
designated locations. Ideally, a plant should have proximity to different
types of transport: road, rail, waterway, or airport. Road transport is
used for local distribution from warehouse. Rail transport is more
economical for longer distance travels. Air transport is convenient and
efficient for the movement of personnel and supplies. Good condition
of national roads, bridges, airports and other industrial transportation
facilities should be ensured.
2.4 Labor
The type and supply of labor available in the vicinity of a proposed
plant site must be examined. Consideration should be given to
prevailing pay scales, restrictions on number of hours worked per
week, competing industries that can cause dissatisfaction or high
turnover rates among the workers, and variations in the skill and
productivity of the workers. Skilled operators will usually be brought in
from the outside the site, but there should be an adequate pool of
unskilled labors available locally; and labors suitable for training to
operate the plant. Skilled engineers will be needed for plant
maintenance.
2.5 Utilities Availability

One major factor in the choice of plant location is the availability of
utilities to maintain smooth and continuous plant operation. The plant
relies to sufficient supply of electricity and water hence selecting a site
which has minimal risks of power interruptions and water shortage is
imperative.
2.6 Climatic Condition
If the plant is located in a cold climate, costs may be increased by
the necessity for construction of protective shelters around the process
equipment, and special cooling towers or air conditioning equipment
may be required if the prevailing temperatures are high. Excessive
humidity or extremes of hot or cold weather can have a serious effect
on the economic operation of a plant, and these factors should be
examined when a plant site is selected.
3. Environmental Management Study
As stated in the local and international environmental laws, a proper
waste treatment and disposal must be administered effectively and
efficiently in accordance with the standards set by the local and
international government and agencies. This is to ensure the entire plant
facilities are compliant with the enacted laws such as the Republic Act No.
9275 (Philippine Clean Water Act of 2004), Republic Act No. 8749
(Philippine Clean Air Act of 1999), Republic Act No. 9003 (Ecological Solid
Waste Management Act of 2000) and DAO No. 2016-08 (Water Quality
Guidelines and General Effluent Standards of 2016).
Environmental constraints that must be managed are as follows:
3.1 Airborne Emission Management
The air quality in the manufacturing area of the SMR plant can affect
the health of the company’s workforce. A polluted environment can
undermine the competitiveness and destroy the company’s quality.
3.2 Solid Waste Management
The goal in solid waste management is to reduce and eliminate the
adverse effects of waste materials on human health and environment to
support economic development and productivity.
The proposed SMR plant is set to follow the Presidential Decree No.
856 (Sanitation Code of the Philippines) and Republic Act no. 9003
(Ecological Solid Waste Management Act) that covers the handling of
solid waste disposal.
3.3 Wastewater Management
A wastewater treatment facility treatment facility treating industrial
effluent that complies with the environmental regulation of the
Philippine Economic Zone Authority (PEZA) which monitors the quality
of the water from the Clark Freeport Zone in compliance with the
Republic Act No. 9275 or the Philippine Clean Water Act of 2004 and
the DAO 2016-08 or the Water Quality Guidelines and General Effluent
Standards of 2016.
4. Financial Study
Financial analysis is the process of evaluating businesses, projects,
budgets and other finance-related entities to determine their performance
and suitability. Typically, financial analysis is used to analyze whether an
entity is stable, solvent, liquid or profitable enough to warrant a monetary
investment.
5. Technical Study
Technical study involves thedata and information as well as the
assumptions related to the technical aspects and requirements needed for
the design of the steam methane reforming plant. Standards were used to
come up with a technically viable design. Technical catalogues were used
to carefully identify the design specifications of each equipment.
The allotted construction period must be utilized and maximized
accordingly to ensure maximum productivity. Time must be considered as a
non-physical resource that must be used appropriately.
B. Operation Period
The proposed SMR plant is planned to operate three hundred forty (340)
days a year, seven (7) days a week, and twenty-four (24) hours a day.
Twenty-five (25) day shutdown will be conducted annually for necessary

maintenance and repairs, and to evaluate problems within the plant. Annual
shutdown will be conducted every start of May every year to avoid extreme
weather that is critical to the following operation. Extensive planning is to be
conducted prior to shutdown to ensure that resources will be utilized properly
and efficiently.
C. Employee Work Schedule
The proposed SMR plant will have a total of 170 workers from seven (7)
departments namely: Human Resources, Research and Development,
Operations, Quality Assurance and Quality Control, Finance, and Marketing.
Table 87. Administration Employees’ Work Schedule
Administration Employees' Work Schedule

7:00
7:15
7:30
7:45
8:00
8:15
8:30
8:45
9:00
Morning Break
9:15
9:30
9:45
10:00
10:15
10:30
10:45
11:00
11:15
11:30
11:45
12:00 Lunch Break
12:15
12:30
12:45
1:00
1:15
1:30
1:45
2:00
2:15
2:30
2:45
Afternoon Break
3:00
3:15
3:30
3:45
4:00
Administration employees have a weekday work schedule, from Monday
to Friday, 7:00 A.M. to 4:00 P.M. Two fifteen (15) minute breaks are allotted
one in the morning and one in the afternoon. There will be allotted lunch
break of one (1) hour from 11:30 A.M. to 12:30 P.M.

Shift A Shift B Shift C
6:00 2:00 10:00
6:15 2:15 10:15
6:30 2:30 10:30
6:45 2:45 10:45
7:00 3:00 11:00
7:15 3:15 11:15
7:30 3:30 11:30
7:45 3:45 11:45
8:00 4:00 12:00
8:15 4:15 12:15
8:30 4:30 12:30
8:45 4:45 12:45
9:00 5:00 1:00
9:15 5:15 1:15
Team 1's Break Team 1's Break Team 1's Break
9:30 5:30 1:30
9:45 5:45 1:45
10:00 6:00 2:00
10:15 6:15 2:15
10:30 6:30 2:30
Team 2's Break Team 2's Break Team 2's Break
10:45 6:45 2:45
11:00 7:00 3:00
11:15 7:15 3:15
11:30 7:30 3:30
11:45 7:45 3:45
12:00 8:00 4:00
12:15 8:15 4:15
12:30 8:30 4:30
12:45 8:45 4:45
1:00 9:00 5:00
1:15 9:15 5:15
1:30 9:30 5:30
1:45 9:45 5:45
2:00 10:00 6:00
Table 88. Field Worker’s Work Schedule
On-site production workers are required to report on duty from Monday to
Sunday. Three shifts are available: 1.) from 6:00 A.M. to 2:00 P.M. 2.) from
2:00 P.M. to 10:00 P.M. and, 3.) from 10:00 P.M. to 6:00 A.M. Quarterly
rotational shiftwork will be observed. The first team in the first shift will have a
break from 9:00 A.M. until 10:00 A.M. while the second team will have a
break from 10:00 A.M. until 11:00 A.M. On the other hand, the first team of
the second shift will have a break from 5:00 P.M. until 6:00 P.M. while the
second team will have a break from 6:00 P.M. until 7:00 P.M. Finally, the first
team in the third shift will have a break from 1:00 A.M. until 2:00 A.M. while
the second team will have a break from 2:00 A.M. to 3:00 A.M.
Employees are expected to manifest punctuality and are obliged to follow
company work ethics and regulations stated by the provision of the
Presidential Decree No. 442 or The Labor Code of the Philippines. Failure to
do so will result to corresponding sanction as prescribed by the management.
D. Quality Assurance and Control
The proposed SMR plant will have a dedicated for quality assurance and
control. The Quality Assurance and Quality Control Department conducts
strict measures in assuring that finished goods passed necessary quality tests
and standards before ultimately reaching the market. The department targets
zero defect and a hundred percent quality products that will bring long-term
revenue and profitability, maintain customer satisfaction and loyalty, and
lessen the risk and cost of replacing defective goods. The department is also
responsible in keeping the business on the cutting edge through constant
drive for development in the industry.
Furthermore, the proposed SMR plant will strive to attain certifications
such as ISO 9001:2008. ISO 9001:2008 is defined as the international
standard that specifies requirements for a quality management system. It
is used to demonstrate the ability to consistently provide products and
services that meet customer and regulatory requirements.
E. Time Table
Gantt chart will be used and done to evaluate and plan the activities prior
to the operation period. This is to help the project to be in track in all of its
plans. A properly scheduled project will be more efficient in terms of time,
labor, and cost.

Table 89. Gantt Chart for the Pre-Operation Phase of SMR Plant
CHAPTER VIII
SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
This chapter summarizes the overall rundown of the results and details
regarding the chosen design option, and includes the summary of findings,
conclusion and recommendations for the development of a Steam Methane
Reforming Plant.
Summary of Findings
The following are the findings relative to the design options chosen for the
Steam Methane Reforming Plant were summarized as follows:
1. SMR(DO1) and ATR(DO3) are the most energy efficient design options for
carbon-lean hydrogen production, both with a plant energy efficiency of
82%. ATR(DO3) has the most potential of further emission reduction but
SMR is the most economical design option of the 3 design options.
2. SMR(DO1) is the most cost-efficient design option for large-scale
operation in the Philippines, producing carbon lean hydrogen at a price of
Php 119.6/kg in a 92.352 tons/ day facility.
3. The SMR(DO1) will be the chosen design option for the development of a
Steam Methane Reforming Plant base on the design trade-offs in the
previous chapter.
4. The designed Steam Methane Reforming plant will use 9,903 kg/hr
desulphurized Natural Gas and 29,540 kg/hr demineralized water as its
raw material to produce a 31400 tons/ year of H2. The steam methane
reforming process is divided into five main sections: pre-reforming, steam
reforming, water gas shifting, CO2 absorbtion and pressure swing
adsorption. Gas-heated Reformer, Steam Methane Reformer, Water gas
Shifter, CO2 Absorber, Pressure swing Absorber and Furnace will be the
main equipment’s of the plant.
5. Total Capital Investments will be Php 1,370,000,000.00 with yearly
operating expenditures of Php, 464,809,549.02. The payback period is
3.22 years. The Net present value of the power plant after 8 years of
operation will be Php 877,961,476.4 at 31.09% rate of return.
Conclusion
Based on the data gathered, the proponents have come up with the
following conclusions:
1. Hydrogen is a promising energy carrier with the potential to reduce CO2
emissions from fossil resources, integrate renewables with the society and
replace fossil fuels in the transportation sector. The Idea of a hydrogen-
based energy chain is not new, but with recent developments in
renewable industries and political support, the conditions are improving
significantly.
2. This production plant will be the first hydrogen producing plant in the
Philippines if construction is pursued and the equipments that would be
used will be similar to the standard steam methane reforming plants in

other countries which will make it easier to purchase and acquire spare
parts in the future.
3. The Steam Methane Reforming Plant’s HSE policy shall focus in
operation, maintenance and facilities. The employees will be oriented of
health and safety regarding proper wearing of PPE, hazard present in the
plant and emergency plan procedures for handling sudden or unexpected
scenarios. The management of the plant will have a mitigation plan in the
problem that may affect the environment. The most important
environmental benefit of steam methane reforming is the capability to
capture 72 % CO2 emissions while producing lean and 99.99% hydrogen
at a high volume rate.
Recommendation
For further development of the Steam Methane Reforming Plant,
recommendations are suggested below according to the assumptions,
calculations and conclusions obtained.
1. Additional information and data are required to develop cost-effective,
reliable, emission-compliant systems for steam methane reforming plant
because Philippines is new to this kind of production plant.
2. Periodical check-ups, regular maintenance and inspection of equipment
must be exercised to avoid faulty equipment for the continuous operation
of the plant.
3. Future researchers must conduct a study for the improvement of the
efficiency of the reforming systems suitable for clean fuels production.
4. Future researchers must have a more comprehensive and better plant
layout that will utilize the space considering its economic aspects.
5. Future researchers must look for significant ideas that could reduce the
CO2 emissions.by the plant.

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Appendices
A. Detailed Calculations
Mass Balance Calculations for Design Option 1
GHR
S + NG = M1
Steam= 3,498 kg/hr
NG= 12,719 kg/hr
M1= 16,217 kg/hr
SMR
M1 + Steam = M2
M1=16,217 kg/hr
Steam= 34,444 kg/hr
M2=50,661 kg/hr
WGS
M2 = M3 + H20
M2=50,661 kg/hr
M3=37,316 kg/hr
H20= 13,345 kg/hr
CO2 Absorber
M3 + CO2 = M4
M3=37,316 kg/hr
CO2=30,115 kg/hr
M4= 7,201 kg/hr
PSA
M4 = H2 + M5
M4=7,201kg/hr
H2=3,848 kg/hr
M5= 3,353 kg/hr
Furnace
M5 + A + NG = FG + W
M5= 3,353kg/hr
Air=71,231kg/hr
H2=1,094 kg/hr
Waste = 0 kg/hr
Future Demand for Hydrogen
𝑌𝑐 = 𝑎 + 𝑌𝑖 − 1
Where:
𝑎=
𝑁−1
of years
Projected Demand for Hydrogen
1.56 − 0.18
𝑎=
10 − 1
𝑎 = 0.1533
Total Land Cost
𝑇𝑜𝑡𝑎𝑙 𝑙𝑎𝑛𝑑 𝑐𝑜𝑠𝑡 = 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑠𝑞𝑢𝑎𝑟𝑒 𝑚𝑒𝑡𝑒𝑟 ∗ 𝑡𝑜𝑡𝑎𝑙 𝑎𝑟𝑒𝑎
𝑇𝑜𝑡𝑎𝑙 𝑙𝑎𝑛𝑑 𝑐𝑜𝑠𝑡 = (5000 𝑃ℎ𝑝)(130000 𝑚2)
𝑇𝑜𝑡𝑎𝑙 𝑙𝑎𝑛𝑑 𝑐𝑜𝑠𝑡 = 𝑃ℎ𝑝 650,000,000.00
Annual Fuel Cost Calculation for SMR:
𝐴𝑛𝑛𝑢𝑎𝑙 𝐹𝑢𝑒𝑙 𝐶𝑜𝑠𝑡
8214.56 𝑃ℎ𝑝 0.8 𝑘𝑔 𝑚3 132950 𝑀𝐽 24 ℎ𝑟 345 𝑑𝑎𝑦

=( )( )( )( )( )( )
1000 𝑘𝑔 𝑚3 82.7 𝑀𝐽 ℎ𝑟 𝑑𝑎𝑦 𝑦𝑒𝑎𝑟
Annual Fuel Cost Calculation for ATR:
8214.56 𝑃ℎ𝑝 0.8 𝑘𝑔 𝑚3 4920 𝑀𝐽 24 ℎ𝑟 345 𝑑𝑎𝑦

=( )( )( )( )( )( )
𝐴𝑛𝑛𝑢𝑎𝑙 𝐹𝑢𝑒𝑙 𝐶𝑜𝑠𝑡 = 3,237,160.43 𝑃ℎ𝑝/𝑦𝑒𝑎𝑟
Loan
Ordinary Annuity
𝐴[(1 + 𝑖)𝑛 − 1]
𝑃1 =
𝑖(1 + 𝑖)
i = interest
n = ordinary annuity period
𝐴[(1 + 0.0684)8 − 1
𝑃1 =
0.0684(1 + 0.0684)
P1 = 6.0009A
Deferred Annuity
𝑃1 = 𝑃2(1 + 𝑖)𝑚
m = deferred period
6.0009 𝐴 = 4,500,000,000 (1 + 0.0684)2
A = 855,980,522.90
Total Fuel Cost Estimation for SMR Plus
8214.56 𝑃ℎ𝑝 0.8 𝑘𝑔 𝑚3 176210 𝑀𝐽 24 ℎ𝑟 345 𝑑𝑎𝑦

=( )( )( )( )( )( )
Equivalent Annual Sales = Annual Sales – Annual Fuel Cost
= 3,755,440,000 – 115,939,032.39
Equivalent Annual Sales = 3,639,500,968 Php
The equivalent annual sales of H2 for SMR Plus is 3,639,500,968.00 Php
Payback Period for SMR

5,477,642,247.85
=
1,702,975,128.00
𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅 = 𝟑. 𝟐𝟐 𝒚𝒆𝒂𝒓𝒔
Payback Period for SMR Plus

5,477,642,247.85
=
1,653,637,775
𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅 = 𝟑. 𝟑𝟏 𝒚𝒆𝒂𝒓𝒔
Payback Period for ATR

5,477,642,247.85
=
1,433,374,693
𝑷𝒂𝒚𝒃𝒂𝒄𝒌 𝑷𝒆𝒓𝒊𝒐𝒅 = 𝟒. 𝟎𝟓 𝒚𝒆𝒂𝒓𝒔
Return on Investment
ROI = (Net Profit / Total Investment) * 100
= 1,702,975,128.00/5,477,642,247.85 ∗ 100
= 31.09%
The proposed SMR plant will have a rate of investment of 31.09% per year.
B. Demand Survey Graphs

We conducted a survey for our proposed plant, which is the steam methane
reforming plant, to Councilor Armando C. Lazarte regarding the environmental
constraints, geographical location and viability of Tabangao Batangas, waste
management, land pricing, and social issues.
C. Demand Projections
Chart Title
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2008 2010 2012 2014 2016 2018 2020
Figure 34. Graphical representation of Hydrogen demand in Asia
Pacific
Chart Title
3.5
2.5
1.5
0.5
0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Figure 35. Graphical representation of the projected Hydrogen
demand
Projected Supply and Demand

3.5
3
2.5
2
1.5
1
0.5
0
2018 2020 2022 2024 2026 2028 2030
Supply Demand
Figure 38. Graphical representation of the projected Hydrogen Supply and
Demand
D. Technical Catalogs
Compressor / Expander
Pump
Heat Exchanger
Reformers
Furnace
Separator
Absorber
Pressure Swing Absorber

Water Gas Shift Reactor
Spherical Tank
E. Communication Letters
February 15, 2019
Councilor Armando Lazarte
Batangas City
Dear Councilor Lazarte,
I, Arman Jade Lazarte, a 5th year Petroleum engineering student of Batangas State University,
together with my groupmates Jessa Mae Punzalan and Aniemhar Cuadrasal wants to have a short
interview with you in compliance with our ongoing plant design project.
The interview will be about our proposed location, which is Tabangao Batangas, regarding its
geographical location and viability, environmental constraints, waste management, land pricing,
and social issues.
In this regard, we would like to ask permission to go to your good office to conduct our interview.
Your favorable response regarding this request will be highly appreciated.
Thank you.
Respectfully yours,
ARMAN JADE LAZARTE

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CAPSTONE DESIGN PROJECT FOR PLANT DESIGN

STEAM METHANE REFORMING PLANT

Of the Requirements for the Degree of

Bachelor of Science in Petroleum Engineering

Lazarte, Arman Jade S.

Punzalan, Jessa Mae B.

Hydrogen is a chemical element with symbol H and atomic number 1.

With a standard atomic weight of 1.008, hydrogen is the lightest element in

substance in the Universe, constituting roughly 75% of all baryonic mass. At

standard temperature and pressure, hydrogen is a colorless, odorless,

tasteless, non-toxic, nonmetallic, highly combustible diatomic gas with the

most nonmetallic elements, most of the hydrogen on Earth exists in molecular

forms such as water or organic compounds.

Steam reforming or steam methane reforming is a chemical synthesis

for producing syngas, hydrogen, carbon monoxide from hydrocarbon fuels

such as natural gas. This is achieved in a processing device called a reformer

presence of a nickel catalyst. Steam-methane reforming reaction

CH4 + H2O (+ heat) → CO + 3H2

The steam methane reformer is widely used in industry to make

hydrogen. There is also interest in the development of much smaller units

based on similar technology to produce hydrogen as a feedstock for fuel cells.

of research and development, typically involving the reforming of methanol,

diesel fuel, and ethanol

According to this research report, the global hydrogen market is

anticipated to grow at a robust rate to reach a significant value by the

end of the year of assessment. The hydrogen market has been

experiencing steady growth during the 2012-2016 timeline. It is

projected to grow at a value of 6.1% throughout the period of

assessment, to reach a market value of more than US$ 200 Bn by end

of 2025 from a market valuation of about US$ 130 Bn in 2017.

In the region category, Asia Pacific is expected to be the largest

with a high market attractiveness. This region is characterized by high

demand for hydrogen based fuel vehicles in counties such as Japan. In

addition, automotive manufacturers are planning to establish auto

research report, Asia Pacific is expected to hold more than one-third of

market in Asia Pacific was valued at about US$ 35 Bn and is estimated

to touch a valuation of more than US$ 70 Bn by the end of the year of

assessment. Moreover, hydrogen market in this region is projected to

grow at the highest rate during the period of forecast.

The hydrogen market in Europe is the second largest. The

increasing adoption of hydrogen across various industries in Europe

has presented potential opportunities for the growth of the global

market. The hydrogen market in Europe is projected to grow at a value

CAGR of 6.4% throughout the period of assessment.

The hydrogen generation market size was valued at USD 108.1

billion in 2016 and is predicted to exhibit a CAGR of 5.8% by 2025.

Shifting trends such as rising focus on cleaner energy and favorable

government regulations are encouraging market expansion. Stringent

government regulations to control rampant use of fossil fuels, coupled

with introduction of gas-based fuel cell vehicles, is anticipated to boost

demand for hydrogen over the forecast period.

Based on application, the hydrogen generation market can be

segregated into coal gasification and steam methane reforming. Coal

gasification is slated to be the fastest growing segment in terms of

revenue, with a CAGR of 6.8%.

Figure 3. Global Hydrogen Generation Market Share

Steam methane reforming holds a substantial share in the