Chemical Engineering Economics & Plant Design

(CEEPD)
 Introduction

Choose one Product to manufacture on commercial scale:

- Mini/Minor Project based
- New Product in mind
- Existing
- Have some info available/not available

Listing points shared by Students & Summarize

- Analysis of How much Students know/have vision
 Global Chemical Industry
6.5 Trillion US$

178 billion US$ Indian Chemical Industry,

2018-19

with GDP rate 12.1%

(Avg GDP 8.5%)

India ranks 6th in the world in Chemicals sales

Contributes 3% to global chemical industry

https://www.investindia.gov.in/sector/chemicals
Market Price of Product – Price of Raw Materials = ?

Minimum Production Cost

Maximization of Profit
Optimization of Resources
Chemical Plant Design Examples:
- Granulated Wood Fuel
- Product with Physical Operations
- Gasifiers
- Single Product - Soya Products
- Multiple Products - Acenofelac/Dyes
- Biodiesel
- By Products - Crude Oil Industries
- Forward Integration
- Backward Integration
- Future Plans
Granulated Wood Fuel for Boilers
Gasifiers
Soya Milk Production
Biodiesel
Typical Layout of Dyes Industry
Typical large scale Chemical plant
 Feasibility Survey

1. Raw materials (availability, quantity, quality, cost)

2. Thermodynamics and kinetics of chemical reactions involved

(equilibrium, yields, rates, optimum conditions)

Form & Purification of Raw Materials & Products (Chemical Engineering

Operations)
 Feasibility Survey

3. Facilities and equipment available at present

4. Facilities and equipment which must be purchased

5. Estimation of production costs and total investment

6. Profits

(probable & optimum, per kg of product & per year, return on investment)
 2017-18 2016-17

16588+14433
= 31,021 carore
to Govt.
Profit after Tax: 34,993, Tax is approx. 29% on PBT
 From RIL Annual Report 2019-20

E is EBITDA (Earnings before interest, taxes, depreciation and amortization)

 Feasibility Survey
7. Materials of construction
8. Safety considerations
9. Markets
(Present & future supply and demand, present uses, new uses, present
buying habits, price range for products and by-products, location and
number of possible customers)
10. Competition
(Overall production statistics, comparison of various manufacturing
processes, product specifications of competitors)

For 9 & 10; Example of Coal to Methanol of China

 Feasibility Survey
11. Properties of products
(chemical and physical properties, specifications, impurities, effects of storage)
12. Sales and sales service
(method of selling and distributing, advertising required, technical services
required)
13. Shipping restrictions and containers
14. Plant location
15. Patent situation and legal restrictions
16. Consultants
 Stages of Plant Design Project

1. Inception
2. Preliminary evaluation of economics and market
3. Development of data necessary for final design
4. Final economic evaluation
5. Detailed engineering design
6. Procurement
7. Erection
8. Start-up and trial runs
9. Production
Air to Close

Air to Open
https://www.youtube.com/watch?v=h0W9eQp2OqQ
Erection of CF Pump 5 min

https://www.youtube.com/watch?v=zFB1-84Olfw
Erection of vessel 7 min

https://www.youtube.com/watch?v=8IVbelGBbyQ
World’s largest Crude Oil Distillation Column 1 min

https://www.youtube.com/watch?v=7wjucKnF8p0
Tall vessel 3 min

https://www.youtube.com/watch?v=3fbg_ZOXBBE
Piping Erection 5 min

https://www.youtube.com/watch?v=2yddac048w4
Erection of Ammonia Plant 26 min https://www.youtube.com/watch?v=gSVAzvcmHEk
Piping Erection 2
Role of Chemical Engineers
Manufacturing
Process Design
Product Development
Scale-up
Erection & Commissioning
License-Technology Supply
Equipments
Software
Maintenance
Utility
Analytical
Marketing
Waste Treatment
Safety
Consultants::
Market Research
Project Consultant
Technology Developer
Environmental Auditor
Process Designer Energy Auditor
Piping Engineer Teaching & Research Energy Integration
Erection Engineer Plant Optimization
Policy makers
Maintenance Admin & Documentation
Government Approvals
Plant set up
Problem Solution
Collaboration with
other companies
Process Design
N2 + 3H2 ↔ 2NH3 ∆H = -45.7 kJ/mol

Equilibrium Conversion of Ammonia

Reaction Engineering & Reactor Design

Mass
Transfer
Heat Fluid
Transfer Mechanics

REACTANT(S) PRODUCT
REACTOR

Thermodynamics Reaction
Kinetics
Early in 1909, Haber discovered in finely distributed osmium, a catalyst which yielded 8% ammonia at 175 bar and
about 600°C. He also established that uranium could be used as a catalyst.
80 g of ammonia/hr in July 1909

Haber and Bosch made the commercial highpressure synthesis of ammonia possible by 1913. The first commercial
plant with a capacity of 30 tons/day was set up by the German chemical giant BASF
T = 400-450 oC
P= 300-400 atm
X= 15-17 %
Xe= 35%

Catalyst
Ammonia Converter
No pure H2 & N2
are available

Block diagram of Ammonia Plant

Next, Process Design Development