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Economics: Capex

The document discusses calculating the capital expenditure (CAPEX) for a carbon dioxide gas capturing process. It outlines the major equipment required, including an absorber, stripping column, two heat exchangers, and two pumps. Cost equations are provided to calculate the purchase cost for each piece of equipment based on parameters like size. The costs are then adjusted from 2004 prices to 2021 using a cost index. The total CAPEX is calculated to be approximately $6.38 million, which includes additional costs for piping, instrumentation, and installation.

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Eldeniz Axund
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50 views4 pages

Economics: Capex

The document discusses calculating the capital expenditure (CAPEX) for a carbon dioxide gas capturing process. It outlines the major equipment required, including an absorber, stripping column, two heat exchangers, and two pumps. Cost equations are provided to calculate the purchase cost for each piece of equipment based on parameters like size. The costs are then adjusted from 2004 prices to 2021 using a cost index. The total CAPEX is calculated to be approximately $6.38 million, which includes additional costs for piping, instrumentation, and installation.

Uploaded by

Eldeniz Axund
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Economics

CAPEX
As a primary objective of all the design procedures of the entire equipment, their cost
contributed by capital expenditure has to be properly calculated.

Referring back to the process itself, it can be seen that process of carbon dioxide gas
capturing requires as a crucial unit the absorber C-401, the stripping column C-402, two
heat exchangers, denoted as HE-401 and HE-402, as well as two pumps, specified as P-
401 and P-402.

The expression used to evaluate the cost of the equipment listed is taken from Chemical
Engineering Design Book and expressed as follows:

C=a+ b∗S n
Where from this equation

C stands for purchase cost of the equipment

a∧bstands for cost constants of the equipment

S stands for size of the equipment

n stands for type of the unit utilized.

Nevertheless, in a mentioned Design book, the cost of equipment were defined for year
2004, the values for 2021 year were calculated by taking reference from 2004 year.

Cost calculation of Absorber C-401

In order to compute the capital expenditure for the absorber unit, certain parameters from
its sizing and mechanical design were implemented.

Tthe purchase cost of the absorber is calculated as:

Purchase cost=cost of absorber∗pressure factor∗material factor=53100∗1∗2=106200 $

The cost of absorber internals is computed in similar manner:

cost of trays=cost of trays∗tray number=700∗20=14000 $


Therefore the total CAPEX of absorber:

Total cost of absorber=106200 $ +14000 $=120200 $

As already pointed out, the cost computed is for year 2004. However, to compute it for
2021 year, following expression should be applied:

2004∗CEPCI index∈2021 $∗295


Cost ∈ year 2021=Cost ∈ =120200 =325311 $
CEPCI index∈2004 109
CEPCI index implies the meaning of Cost Index for certain year in Chemical Engineering Plant
For year 2004, CEPCI is 109, whereas CEPCI for year 2021 is 295.
Cost calculation of Stripping column C-402

The entire cost of stripping column is consistent of separate costs supplied by column
itself, its trays, as well as cost of condenser and reboiler. Stripper is regarded as pressure
vessel:

Purchase cost=cost of stripper∗pressure factor∗material factor=7600∗1∗1=7600 $

Apart from this, there is purchase cost for condenser and reboiler which are estimated by
expression:

Cost of condenser: C=a+ b∗S n=500+1000∗22.51=23000 $

Cost of reboiler: C=a+ b∗S n=11000+ 83∗721=16976 $

Furthermore, the cost trays inside the stripping column can be feasibly computed.
Recalling the number of trays being 19:

cost of trays=cost of trays∗tray number=650∗19=12350 $

Moreover, the reflux drum is also present in tandem with stripping column, the cost of
which is computed below:

Cost of reflux drum=5000 $

Ultimately, the cost of entire stripper column equals:


Stripping column cost=7600 $+23000 $+16976 $+12350 $ +5000 $=64926 $

2004∗CEPCI index∈2021 $∗295


Cost ∈ year 2021=Cost ∈ =64926 =175717 $
CEPCI index∈2004 109
Cost calculation of Heat Exchangers HE-401 and HE-402

Cost estimation of heat exchangers demands predominantly the surface areas, and cost is
computed according to them. Recalling back, the surface area of HE-401 equals to 31.82
m2, whilst the value for HE-402 is 37.5 m2. Moreover, constants a=11000, b=115, whereas
n=1. Taking all these data into equation below:

Cost for HE-401 C=11000+115∗31.821 =14659 $


Cost for HE-402 C=11000+115∗37.5 1=15312 $
2004∗CEPCI index∈2021 $∗295
Cost ∈ year 2021(HE−401)=Cost ∈ =14659 =39673.4 $
CEPCI index∈2004 109
2004∗CEPCI index∈2021 $∗295
Cost ∈ year 2021(HE−402)=Cost ∈ =15312 =41440.7 $
CEPCI index∈2004 109
Therefore, the overall cost for heat exchangers is equal to
overall heat exchangers cost=39673.4 $+ 41440.7 $=81114.1$

Cost calculation of pumps P-401 and P-402

The crucial parameters for pumps are their capacity flowrates, which for pump P-401
equals to 73 L/s, whilst P-402 capacity was previously computed as 54.2 L/s. For pumps,
constants a and b are assigned as 3300 and 48, correspondingly, whereas the n parameter
is 1.2.

Cost for P-401 C=3300+ 48∗731.2 =11564.7 $


Cost for P-402 C=3300+ 48∗54.21.2=9081.5 $

Consequently,
2004∗CEPCI index ∈2021 $∗295
Cost ∈ year 2021(P−401)=Cost ∈ =11564.7 =31299 $
CEPCI index∈2004 109
2004∗CEPCI index ∈2021 $∗295
Cost ∈ year 2021(P−402)=Cost ∈ =9081.5 =24578 $
CEPCI index∈2004 109
overall pumps cost=31299 $+24578 $=55877 $

CAPEX for all equipment= 325311 $+175717 $+81114.1 $+55877 $=638019.1$

Also, encompassing costs relevant to piping, instrumentation, installation:


cost for piping=0.7∗638019.1 $=446613 $
cost for instrumentation=0.2∗638019.1 $=127603 $
cost for installation=0.4∗638019.1 $=255207 $
By taking all the computed values into consideration, the entire capital expenditure for CO2
absorbing unit can be accomplished:
Overall CAPEX for the CO 2 capture system :325311 $ +175717 $ +81114.1 $+55877 $+ 446613 $+ 127603 $+2

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