Equipment Costing

CAPEX
Sieder-Chapter 16 Review
CH EN 5253
Terry A. Ring
 Design I Coverage
• Time Value of Money
• Capital Costs
• Operating Costs
• Profitability Analysis

• Reading Materials
 Cost Estimate Methods
• Order of Magnitude Estimate
– Method of Hill
• Marshall Swift for I/Ibase
• Six Tenths Rule for Production Capacity
– CTCI-2 (I)=CTCI-1 (Ibase)*(I/Ibase)* (Capacity2/Capacity1)0.6
• Study Estimate (±35%)
– Method of Lang
• CTCI=1.05*fL-TCI ∑ (Ii/Ibase-i) Cp-i
• Lang factors for different types of Plants
– Solids -3.10, Solids&Fluids 3.62, Fluids 4.73
• Sum over all major equipment
• Preliminary Estimate (±20%) – use this method in CHEN 5253
– Method of Guthrie
– Bare module cost, CBM=Cp-base(I/Ibase)[FBM+(FdFpFm-1)]
• d= design factor, p = pressure factor, m =materials factor
• Quote Estimate
 6/10th scale up/down Factor
• Used for scaling the total capital cost for a
chemical plant of a different size

• Cost2/Cost1 = (Capacity2/Capacity1)0.6

• 0.6 - Accounts for economy-of-scale

 Accounting for Inflation
• Cost to purchase = Base Cost*(I/Ibase)
– Base Cost, CB, = Historical price at Ibase
– I is a Cost Index at present time
• Chemical Engineering, CE, Plant Cost Index
– Ibase=567 (<2013>) for your equations in Sieder’s 4th Ed.
• Marshall and Swift (MS) Equipment Cost Index
• Nelson-Farrar (NF) Refinery Construction Cost
Index
• Engineering News-Record (ENR) Construction
Cost Index
– Cp(I) = Cp(Ibase)*(I/Ibase)
FT= Type factor
– Cp(Ibase)=FT*Fm*Cbase(Ibase) (Hill Method) Fm= Materials factor
We will use 615.9 for 12/31/2018, the most recent value I have
 Cost Estimate Methods
• Order of Magnitude Estimate
– Method of Hill
• Marshall Swift for I/Ibase
• Six Tenths Rule for Production Capacity
– CTCI-2 (I)=CTCI-1 (Ibase)*(I/Ibase)* (Capacity2/Capacity1)0.6
• Study Estimate (±35%)
– Method of Lang
• CTCI=1.05*fL-TCI ∑ (Ii/Ibase-i) Cp-i
• Lang factors for different types of Plants
– Solids -3.10, Solids&Fluids 3.62, Fluids 4.73
• Sum over all major equipment
• Preliminary Estimate (±20%) – use this method in CHEN 5253
– Method of Guthrie
– CTCI= (Ii/Ibase-i) ∑ Cp-i
– Bare module cost, Cp-BM=Cp-base[FBM+(FdFpFm-1)]
• d= design factor, p = pressure factor, m =materials factor
• Quote Estimate
 Purchase Costs for Equipment
• Size Factor, S, depends on type of
equipment
• Cp(Ibase)= A + b* (S)n
– Ibase= 567 (2013 average)
• Cp(Ibase)=exp(Ao+A1[lnS]+A2[lnS]2+…)
– Ibase = 567 (2013 average)
Construction in Carbon Steel
Installation Factors
 Materials Costs

The materials factor is different for different pieces of equipment!

 Help On Costing Pumps
Centrifugal, gear, etc.
• Sizing Factor, S = Q*H0.5
• Q is the flow rate in Gal/min
• H is the pump head
– H=ΔP/ρg (pump change in P/liquid density)
• CB=exp(A0+ A1(ln(S))+ A1(ln(S))2+ …)
• Cp=FTypeFMat CB
• There is no Fpressure term but if you had one it would use
the outlet pressure ΔP

• Motor Power, PMotor=Pp/(ηpumpηMotor) =QHρg/(ηpumpηMotor)

 Compressors
• Compressor types (Ibase=394, equations from 2nd
Edition of book)
– Centrifugal, CB=exp{7.2223+0.80[ln(PC)]}
– Reciprocating, CB=exp{7.6084+0.80[ln(PC)]}
– Screw, CB=exp{7.7661+0.7243[ln(PC)]}
• Size factor is the power consumed, PC=PB/ηC
• CP=FDriveFMatCB
• FDrive =1 (electric motor), 1.15 (steam), 1.25 (gas turbine)
• FMat = 1.0 Carbon steel, 2.5 SS, 5.0 Nickel Alloy
• CBM=FBM*∑CP Fully Installed Cost
• FBM = 2.15
 Heat Exchangers
• Types of Heat exchangers (Ibase=394, 2nd Edition of
book)
– Floating Head, CB=exp{11.667-0.8709[ln(A)]+0.09005[ln(A)]2}
– Fixed Head, CB=exp{11.0545-0.9228[ln(A)]+0.09861[ln(A)]2}
– U-tube, CB=exp{11.147-0.9186[ln(A)]+0.09790[ln(A)]2}
– Kettle, CB=exp{11.967-0.8709[ln(A)]+0.09005[ln(A)]2}
– Thermosiphon, CB=
– Double pipe, CB=exp{7.1248-0.16[ln(A)]}
• Size Factor is HX area, A, for heat transfer
• CP=FpFMatFLCB
• Pressure Factor, Fp= 0.9803+0.018(P/100psig)+0.0017(P/100psig)2
– Not for double pipe
• Materials Factor, Fmat=a+(A/100)b, a & b from Table 16.25
– a≥1.0
• Tube Length Factor FL= 1.25 for 8 ft, 1.0 for ≥20 ft. on a sliding scale
between 8 and 20 ft
• CBM = FBM*CP, FBM=3.17 (S&T), 1.80 (DP), 2.17 (Fin/Fan)
 Fired Heaters
• Size Factor is the heat duty, Q
• CB=exp{0.08505+0.766[ln(Q)]} (Ibase=394)
• CP=FPFMatCB
• FP=0.986-0.0035(P\500psig)+0.0175(P/500psig)2
• Fmat=1.4 Cr-Mo alloy steel,
• 1.7 for stainless steel
• CBM = FBM*CP, FBM=2.19
 Pressure Vessels
• Storage Tanks
• Distillation Towers
– Tray
– Packed
• Absorber Towers
• Stripping Towers
 Pressure Vessels
• Sizing Factor is the weight of steel, W
• Horizontal Vessels, 1,000<W<920,00 lb
CB=exp{8.717-0.2330[ln(W)]+0.4333[ln(W)]2} (Ibase=394, 2nd Edition of
Book)
• Vertical Vessels, 4,200<W<1,000,000 lb
CB=exp{6.775-0.18255[ln(W)]+0.02297[ln(W)]2} (Ibase=394)
• Add Platform Costs,
– Horizontal, 3<Di<12 ft
• CPL=1580(Di)0.20294 (Ibase=394)
– Vertical, 3<Di<21 ft
• CPL=258.1(Di)0.7396(L)0.70684 (Ibase=394)
• Weight, W=π(Di+ts)(L+0.8Di)tsρs
• C=FMCB+CPL
• FM= materials factor see Table 16.26
– Installation, etc, FBM=4.16 (V), 3.05 (H)
– CBM=FBM*∑CP
 Hoop Stress Calc for thickness, ts
• Design Pressure is function of operating pressure, Po
– For Po> 1,000psig use Pd=1.1Po
– For Po< 1,000psig but not for vacuum
Pd=exp{0.60608+0.91615[ln(Po)]+0.0015655[ln(Po)]2}
• Thickness (Hoop Stress Calculation)
• ts= PdDi/(2SE-1.2 Pd)
• S = max allowable stress for steel is f(T) see Book p.466.
• E = weld efficiency (fraction), 0.85 weld, 1.0 seamless
tube
• Ts is Minimum wall thickness for given diameters
• May add extra thickness for wind stresses, corrosion
allowance
• Different calculation for vacuum vessels!
– Also account for leakage when vacuum vessel is used
 Distillation Towers
• Pressure vessel with plates or packing and
additional nozzels and manholes
• Tray Cost
CT=NTFNTFTTFTMCBT
• NT= no. trays
• FNT= 1 for NT>20, otherwise FNT=2.25/(1.0414NT)
• FTT = tray type, 1.0 sieve, valve 1.18,
• 1.87 bubble cap
• FTM= Materials, f(D)
– Carbon Steel FTM=1.0
– 316 SS FTM=1.401+0.0788 Di
• Installation, etc, FBM=4.16
– CT_BM=FBM*∑CT
 Packed Distillation Column
• Pressure vessel with platforms plus
packing
• Platforms see Eq. (16.58)
– CPL=341 (Di)0.63316(L)0.80161
• Packing Cost basis is volume of packing, VP
– C=VpCPK+CDR
• CPK= is installed cost per unit volume
• Distributors cost, CDR=$100/ft2 A,
– A=cross sectional area
 Absorbers/Strippers
• Pressure Vessel
– plus platforms
– plus packing and distributors
• Separate costs for blowers
• Separate cost for pumps
• Separate costs for motors
– On blowers
– On mixers
– On pumps
Plant Location Factor

From T&S Book

Do Not Forget Utility Plants
Total Capital Investment
 Conclusions
• 0.6th rule
• Factored Estimate of Major Equipment
• Installation Factor
– Peripheral equipment, foundations, piping, etc
• Biggest Mistakes
– Forget Capital Cost of Utility Plants
– No Off Sites
• No Electrical Substation
• No Natural Gas Connection
– Neglecting Major Equipment