Economic Analysis

ChE 521 • Direct Cost, CD = Annual Cost of Power (pumping)

Optimization in Flow of Fluids • Fixed Cost, CF = Annual Cost of maintenance and
depreciation
Determination of the Optimum Pipe Diameter (Diopt) TotalCosts
CT=CF+CD
Evelyn R. Laurito Annual Cost, C
Fixed
With modifications CTmin
Costs, CF
by Lola Domnina B. Pestaňo
Variable
University of Santo Tomas Diopt Costs, CD
Pipe Diameter (Di)
ChE 521- Plant Design Course Notes 2
by Evelyn R. Laurito & Lola B. Pestano

Nomenclature Optimum Economic Pipe Diameter

f = fanning friction factor gc = conversion factor in Newton’s • Turbulent Flow (9-70/403 PTW)
V= ave linear velocity of fluid, m/s Law, kg.m/s2N 1
L = length of pipe, m E = pump and motor efficiency ( 4.84  n)
X = purchase cost of pipe per m if  6.04x10 4 ( 0.0254) n q 2.84  0.84  0.16 K ( 1  J) Hy 
Le=equivalent length of valves,  f c 
fittings,m the diameter is 0.0254 m Di opt  n  ( 1  F) X E K F 
n = cost correlation index for pipe  
Di = inside pipe diameter, m
qf = volumetric flow rate, m3/s F = cost of installation and fittings/
 = density of fluid, kg/m3 purchase cost of pipe • Viscous Flow (9-71/403 PTW)
c= viscosity of fluid, Pa.s KF = Annual fixed cost/ cost of
K = cost of power, $/kWh installed pipe 1/(4.0  n )
W = mechanical work added to the  0.1628(.0254)n q f 2 c K (1  J ) Hy 
Hy = hours of operation/yr Diopt   
J= Le/L system, J/kg  n(1  F ) XEK F 

ChE 521- Plant Design Course Notes 3 ChE 521- Plant Design Course Notes 4
by Evelyn R. Laurito & Lola B. Pestano by Evelyn R. Laurito & Lola B. Pestano

Nomenclature Derivation of Diopt

f = fanning friction factor gc = conversion factor in Newton’s • Direct Cost, CD = Annual Cost of Power (pumping)
V= ave linear velocity of fluid, m/s Law, kg.m/s2N
E = pump and motor efficiency
• Fixed Cost, CF = Annual Cost of maintenance and
L = length of pipe, m
Le=equivalent length of valves, X = purchase cost of pipe per m if depreciation
3
fittings,m the diameter is 0.0254 m Cost J  kg q f m W  s 1 kW hr
K   Ws      Hy 
Di = inside pipe diameter, m n = cost correlation index for pipe kWh kg 3 s J 1000 W yr
m
qf = volumetric flow rate, m3/s F = cost of installation and fittings/ Cpumping
E
 = density of fluid, kg/m3 purchase cost of pipe
c= viscosity of fluid, Pa.s KF = Annual fixed cost/ cost of K Ws  q f  Hy
n
Cpipe  ( 1  F)  X  
Cost Di 
installed pipe Cpumping    KF
K = cost of power, $/kWh E 1000
yr  .0254 
Hy = hours of operation/yr W = mechanical work added to the
2
v
system, J/kg
F
g
J= Le/L Determine W or Ws from MEB Equation: z   V P  Ws
gc 2 gc
𝑑𝐶𝑇
CT = Cpumping + Cpipe CT = f(Di) =0
ChE 521- Plant Design Course Notes
by Evelyn R. Laurito & Lola B. Pestano
5 ChE 521- Plant Design Course Notes
by Evelyn R. Laurito & Lola B. Pestano 𝑑𝐷𝑖 6

1
 Derivation of Diopt in Laminar Flow Derivation of Diopt in Laminar Flow
B1

MEB Equation:
g v 2 • Viscous Flow (9-71/403 PTW)
z   VP   F  Ws
gc 2gc
1/(4.0  n )
 0.1628(.0254)n q f 2 c K (1  J ) Hy 
2  f  v 2  L 1  J Diopt   
Ws   B1  n(1  F ) XEK F 
Di

Di  v   qf
For Laminar flow: f
16
NRe  v
NRe   2
D
4 i
0.04
For Turbulent flow: f 
NRe0.16
ChE 521- Plant Design Course Notes 7 ChE 521- Plant Design Course Notes 8
by Evelyn R. Laurito & Lola B. Pestano by Evelyn R. Laurito & Lola B. Pestano

Constants Under Ordinary

Optimum Economic Pipe Diameter
Industrial Conditions
• n = 1.5 for steel if Di ≥ 0.0254 m EQN. 9-72 • Turbulent Flow (9-70/403 PTW)
• n = 1 for steel if Di < 0.0254 m To 9-75 1
( 4.84  n)
• K = $ 0.05/kWh  6.04x10 4 ( 0.0254) n q 2.84  0.84  0.16 K ( 1  J) Hy 
 f c 
• J = 0.35 or 35% Di opt  n  ( 1  F) X E K F 
 
• Hy = 8760 h/yr EQN. 9-76
• E = 0.5 or 50% To 9-79 • Viscous Flow (9-71/403 PTW)
• F = 1.4
1/(4.0  n )
• KF = 0.20 or 20%  0.1628(.0254)n q f 2 c K (1  J ) Hy 
• X = $ 2.43 per m for a 0.0254 m Di Steel Diopt   
 n(1  F ) XEK F 
pipe
ChE 521- Plant Design Course Notes 9 ChE 521- Plant Design Course Notes 10
by Evelyn R. Laurito & Lola B. Pestano by Evelyn R. Laurito & Lola B. Pestano

Additional Equations Example 1

A flotation plant requires water amounting to 25 m3/h
at 276 kPa. The water must be pumped from a lake
600 m from the plant and the total pump lift is 10 m;
neglect entrance and exit losses, friction due to the
meter. Calculate the optimum pipe diameter (Std steel
pipe) if the initial cost is $ 2.5/m-in diameter; power
cost is $ 0.01/kWh. Pump efficiency is 60%; money
is worth 8% with life of installation equal to 20 years.

ChE 521- Plant Design Course Notes 11 ChE 521- Plant Design Course Notes 12
by Evelyn R. Laurito & Lola B. Pestano by Evelyn R. Laurito & Lola B. Pestano

2
 Constants Under Ordinary
Optimum Economic Pipe Diameter
Industrial Conditions
• Turbulent Flow (9-70/403 PTW) • n = 1.5 for steel if Di ≥ 0.0254 m EQN. 9-72
1
• n = 1 for steel if Di < 0.0254 m To 9-75
( 4.84  n)
 6.04x10 4 ( 0.0254) n q 2.84  0.84  0.16 K ( 1  J) Hy 
 f c  • K = $ 0.05/kWh
Di opt  n  ( 1  F) X E K F  • J = 0.35 or 35%
 
• Hy = 8760 h/yr EQN. 9-76
• Viscous Flow (9-71/403 PTW) • E = 0.5 or 50% To 9-79
• F = 1.4
1/(4.0  n )
 0.1628(.0254)n q f 2 c K (1  J ) Hy  • KF = 0.20 or 20%
Diopt    • X = $ 2.43 per m for a 0.0254 m Di Steel
 n(1  F ) XEK F 
pipe
ChE 521- Plant Design Course Notes 13 ChE 521- Plant Design Course Notes 14
by Evelyn R. Laurito & Lola B. Pestano by Evelyn R. Laurito & Lola B. Pestano

Solution: Assume Turbulent & Di > 0.0254 m Solution: Assume Turbulent & Di > 0.0254 m
1
• Turbulent Flow (9-70/403 PTW)  6.04x10 4 ( 0.0254) n q 2.84  0.84  0.16 K ( 1  J) Hy 
( 4.84  n)
1  f c 
( 4.84  n)
Di opt  n  ( 1  F) X E K F 
 6.04x10 4 ( 0.0254) n q 2.84  0.84  0.16 K ( 1  J) Hy   
 f c 
Di opt  n  ( 1  F) X E K F 
  Diopt = 0.0874 m > 0.0254 m
𝐾𝑔
𝜌 = 996.4 3 𝜇𝑐 =
0.897
𝑃𝑎 ∙ 𝑠
Diopt  v   v
qf
𝑤𝑎𝑡𝑒𝑟 𝑎𝑡 25𝑜𝐶: 𝐶ℎ𝑒𝑐𝑘 𝑁𝑅𝑒: NRe 
𝑚 1000 
 D 2
Constants Under Ordinary Industrial Conditions 4 iopt
• n = 1.5 for steel if Di ≥ 0.0254 m NRe = 112726.045 > 2100
• J = 0.35 or 35%
Therefore, Turbulent Flow
• Hy = 8760 h/yr
• F = 1.4 ChE 521- Plant Design Course Notes
by Evelyn R. Laurito & Lola B. Pestano
15 ChE 521- Plant Design Course Notes
by Evelyn R. Laurito & Lola B. Pestano
16

Solution: Other Formulas Solution: Other Formulas

1
( 4.84  n)
Under Ordinary Industrial Conditions
 6.04x10 4 ( 0.0254) n q 2.84  0.84  0.16 K ( 1  J) Hy 
 f c 
Di opt  n  ( 1  F) X E K F 
 
Don’t use!
Diopt = 0.0874 m
Diopt = 0.079861 m Wrong!

Diopt = 0.0871 m

ChE 521- Plant Design Course Notes 17 ChE 521- Plant Design Course Notes 18
by Evelyn R. Laurito & Lola B. Pestano by Evelyn R. Laurito & Lola B. Pestano

3
 Check for min. total cost or CTmin based on Std
Steel pipes
𝐷𝑖𝑜𝑝𝑡 = 3.43 𝑖𝑛.

Diopt = 0.0871 m / 0.0254

= 3.43 in.

Check on min. total cost or CTmin based on Std Steel pipes

3-inch Sch. 40 Steel Pipe has a Di = 3.068 in. or 0.077927 m
4-inch Sch. 40 Steel Pipe has a Di = 4.026 in. or 0.10226 m
ChE 521- Plant Design Course Notes 19 ChE 521- Plant Design Course Notes 20
by Evelyn R. Laurito & Lola B. Pestano by Evelyn R. Laurito & Lola B. Pestano

Check for min. total cost or CTmin based on Std

Compute B1
Steel pipes
B1
  16 Hy   Di 
n
 1 1
CT     K  qf 2    L  1  J  4   1  F   X     K F  L  L  B1 L MEB Equation:
 125 Di   E   0.0254   g v 2
z   VP   F  Ws
gc 2gc
3-inch Sch. 40 Steel Pipe has a Di = 3.068 in. or 0.077927 m
 g
B1   z 2  z1  

v 2 2  v12   1
 V P2  P1   
CT = 0.714 + B1  gc 2gc  L

P1 = 101325 Pa P2 = 276000 Pa L = 610 m

4-inch Sch. 40 Steel Pipe has a Di = 4.026 in. or 0.10226 m 1
z1 = 0 z2 = 10 m V g = 9.8
qf 
CT = 1.062 + B1 v2 
v1 = 0  gc = 1
D 2
ChE 521- Plant Design Course Notes 21
4 iopt
ChE 521- Plant Design Course Notes 22
by Evelyn R. Laurito & Lola B. Pestano by Evelyn R. Laurito & Lola B. Pestano

Check for min. total cost or CTmin based on Std

Steel pipes
ANSWER

 16 Hy  n
 Di 
CT    K  qf 2    L  1  J  4   1  F   X     K F  L  B1
125 Di   E   0.0254 
a) Use: 3-inch Sch. 40 Steel Pipe
3-inch Sch. 40 Steel Pipe has a Di = 3.068 in. or 0.077927 m
CT = 0.714 + B1 B1= 0.44978 b) Min CT= $1.16/m-yr
CT = $ 1.16/m-yr

4-inch Sch. 40 Steel Pipe has a Di = 4.026 in. or 0.10226 m

CT = 1.062 + B1 B1= 0.44863

CT = $1.51/m-yr
ChE 521- Plant Design Course Notes 23 ChE 521- Plant Design Course Notes 24
by Evelyn R. Laurito & Lola B. Pestano by Evelyn R. Laurito & Lola B. Pestano

4
 End

ChE 521- Plant Design Course Notes 25

by Evelyn R. Laurito & Lola B. Pestano