CHENG5163 :PLANT DESIGN AND ECONOMICS

CHAPTER

1 Introduction To Plant Design

Lecture 1 :Definition and Introduction

Tesfa Nega
Faculty of Chemical and Food Engineering, Bahir Dar
Institute of Technology, Bahir Dar, Ethiopia
Email: [email protected]

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Chemical Engineering

❖ Natural Sciences (Chemistry & Physics)

❖ Life Sciences (Biology, Microbiology, Biochemistry)

❖ Mathematics & Economics

❖ Transformation of one type of chemical (or energy) to a more useful type of chemic (or energy)

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What Do Chemical Engineers DO?

❖ Combine chemistry, math, and physics to:

✓ Operate chemical plants

✓ Design chemical processes

✓ Research and Development

✓ HAVE FUN!!!!

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What Do Chemical Engineers Make?

❖ FOOD – cereals, meats, vegetables, frozen foods, canned foods, boxed foods
❖ FUEL – Gasoline, diesel, motor oil, WD40, brake fluid
❖ PLASTICS – garbage bags, Wal-Mart bags, combs, toothbrushes, hair brushes, squirt bottles,
clothes baskets, car interiors, boats,
❖ PAPER – notebook, copy, books, cardboard, toilet paper, napkins, diapers
❖ HEALTH CARE – medicines, diagnostic instruments, joint replacements, Clean water –
pumps, filters, chlorine
❖ EVERYDAY ITEMS – pens, pencils, magic markers, tv’s, Ipods, cell phones, radios, sheets,
pillows, carpets, household cleaners, tables, chairs, cars, trucks, paints and stains, clothes,
leather, sofas, recliners,

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Where Do Chemical Engineers work?

❖ Fuels
❖ Pharmaceuticals
❖ Food
❖ Petrochemicals
❖ Biotechnology

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Chem E’s work in so many fields!!

❖ High purity solvents

❖ Water Treatment
❖ Nuclear Energy
❖ Food Production
❖ Environmental Eng.
❖ Advanced Materials

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Course Objectives and Learning outcomes

❖ To introduce the basic concepts in plant design, engineering economics, and safety
features as applied to chemical engineering processes and operations.
❖ By the end of the course, the students or the participants will know the essentials of
how to conceptualize and develop a chemical engineering process and how to
perform a complete economic analysis of the chemical engineering plant.
❖ Students will also appreciate the importance of safety in design and operation.

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Reference book

❖ Peters Max S, Timmerhaus Klaus D. “Plant Design and Economics for Chemical Engineers” fourth
Ed. 1991. McGraw Hill Inc.
❖ Coulson and Richardson’s, chemical engineering, V6
❖ Gael D Ulrich: A Guide to Chemical Engineering Process Design and Economics (Wiley)
❖ Perry & Green: Perry's Chemical Engineers Handbook, Seventh Edition, (McGraw-Hill)
❖ Gavin Towler and Ray Sinnott. Chemical Engineering Design Principles, Practice and Economics of
Plant and Process Design (Elsevier)

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Definitions
❖ Design:
❖ Creation activity/ idea or as creation manufacturing process to fulfill:
❖ public need
❖ commercial opportunity
❖ Process design:
❖ Refers to the actual design of the equipment and facilities necessary for carrying
out the process.
❖ It includes group of items which could be prepared on paper before implementing it,
such as flow sheets, material balance, energy balance, and specification sheets.
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Definitions
❖ Plant design:
❖ It includes plant location, service facilities and plant layout.
❖ Economics: Study of choice under conditions of scarcity
❖ Scarcity: Situation in which the amount of something available is insufficient to satisfy
the desire for it.

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Aim of chemical engineering plant design

❖ Construction of new chemical plants.

❖ Expansion or revision of existing plants in order to increase the productivity.

❖ Modification of existing plant in order to change the product or the way of production.

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Introduction

❖The expression plant design immediately connotes industrial

applications; consequently, the dollar sign must always be kept in mind

when carrying out the design of a plant. The theoretical and practical

aspects are important, of course; but, in the final analysis, the answer

to the question “Will we realize a profit from this venture?” almost

always determines the true value of-the design.

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❖ In this modern age of industrial competition, a successful chemical engineer needs

more than a knowledge and full understanding of the fundamental sciences and the
related engineering subjects such as thermodynamics, reaction kinetics, mass transfer,
heat transfer and computer technology.
❖ The engineer must also have the ability to apply this knowledge to practical situations
for the purpose of accomplishing something that will be beneficial to society.
❖ However, in making these applications, the chemical engineer must recognize the
economic implications which are involved and proceed accordingly.

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❖ The chemical engineer, therefore, should consider plant design and applied economics as
one combined subject.
❖ Special emphasis is placed on the economic and engineering principles involved in the
design of chemical plants and equipment.
❖ Chemical engineering design of new chemical plants and the expansion or revision of
existing ones require the use of engineering principles and theories combined with a
practical realization of the limits imposed by industrial conditions.
❖ Development of a new plant or process from concept evaluation to profitable reality is
often an enormously complex problem.

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Introduction

❖ A plant-design project moves to completion through a series of stages such as

❖Inception
❖Preliminary evaluation of economics and market
❖Development of data necessary for final design
❖Final economic evaluation
❖Detailed engineering design
❖Procurement
❖Erection/ installation
❖Startup and trial runs
❖Production
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❖ This brief outline suggests that the plant-design project involves a wide variety
of skills among these are research, market analysis, design of individual pieces
of equipment, cost estimation, computer programming, and plant-location
surveys.
❖ In fact, the services of a chemical engineer are needed in each step of the
outline, either in a central creative role, or as a key advisor

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❖ A. Chemical Engineering Plant Design

❖ The general term plant design includes all engineering aspects involved in the
development of either a new, modified, or expanded industrial plant.
❖ In this development, the chemical engineer will be making economic
evaluations of new processes, designing individual pieces of equipment for the
proposed new venture, or developing a plant layout for coordination of the
overall operation
❖ Because of these many design duties, the chemical engineer is many times
referred to here as a design engineer.

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Introduction

❖ On the other hand, a chemical engineer specializing in the economic aspects of the
design is often referred to as a cost engineer.
❖ In many instances, the term process engineering is used in connection with
economic evaluation and general economic analyses of industrial processes, while
process design refers to the actual design of the equipment and facilities necessary
for carrying out the process.
❖ Similarly, the meaning of plant design is limited by some engineers to items related
directly to the complete plant, such as plant layout, general service facilities, and
plant location
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INTRODUCTION
❖ Therefore, although one person cannot be an expert in all the phases involved in
plant, it is necessary to be acquainted with the general problems and approach
in each of the phases.
❖ If the overall design project is to be successful, close teamwork is necessary among
the various groups of engineers working on the different phases of the project.
❖ The most effective teamwork and coordination of efforts are obtained when each of
the engineers in the specialized groups is aware of the many functions in the overall
design project.

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Introduction
❖ Plant design is the conversion of ideas or data in the form of needs to data in the form
of designed plant (process & technical systems) by sciences, and engineering
knowledge in the most suitable manner and the target is achieved
❖ Process design is the application of stock of various knowledge that converts ideas or
needs into useful, marketable and profitable products and service.
❖ Plant/ process design is a multidisciplinary subject .

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Introduction

❖ B. Process Design Development (Chapter 2)

❖ i) The first, of course, must be the inception of the basic idea. For example, the
engineering department of the company may originate a new process or modify
an existing process to create new products.
❖ ii) In all these possibilities, if the initial analysis indicates that the idea may have
possibilities of developing into a worthwhile project, a preliminary research or
investigation program is initiated.
✓ General survey of the possibilities for a successful process is made considering the
physical and chemical operations involved as well as the economic aspects.

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Introduction

❖ iii) Process-research phase

✓ Preliminary market surveys, laboratory-scale experiments and production of research
samples of the final product
❖ iv) Development phase (after when potentialities of the process are fairly well
established)
✓ Pilot plant or a commercial development plant may be constructed
✓ Pilot plant: small replica of the full-scale final plant
✓ Commercial development plant made from odd (pieces of equipment which are
already available not meant to duplicate the exact setup to be used in the full-scale plant

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✓ Design data and other process information are obtained during the
development stage.
✓ This information is used as the basis for carrying out the additional phases of
the design project.
✓ A complete market analysis is made, and samples of the final product are sent
to prospective customers to determine if the product is satisfactory and if
there is a reasonable sales potential.
✓ Capital-cost estimates for the proposed plant are made.

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Introduction

❑ C. General Overall Design Considerations (chapter 3)

✓ Failure to include these considerations in the overall design project may, in
many cases, alter the entire economic situation so drastically as to make the
venture “unprofitable”.
✓ Plant location, plant layout, materials of construction, structural design, utilities,
buildings, storage, materials handling, safety, waste disposal, federal, state and local
laws or codes (regulations), and patents.
❖ * COMPUTER-`AIDED DESIGN (Chapter 4) –will not be not covered

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Introduction

❑ D. Cost And Asset Accounting (Chapter 5)

❖ Record keeping and accounting procedures are important
❖ Be familiar with general terminology and approach used by accountants
❑ E. Cost Estimation (Chapter 6)
❖ As soon as the final process-design stage is completed accurate cost
estimations become possible: detailed equipment specification and definite plant-
facility information based.
❖ However, cost estimates should be made throughout all the early stages of the design
even when complete specifications are NOT available.
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introduction

❖ Predesign cost estimation (guesstimation): evaluation of costs in the preliminary

design phases.
❖ Provide a basis for company management to decide if further capital should be
invested in the project.
❖ Chemical engineer (cost engineer) should consider all possible factors: fixed
costs, direct production costs for raw materials, labor, maintenance, power, and
utilities, costs for plant and administrative overhead, distribution of the final
products plus other miscellaneous items.
❖ Chapter 6 covers many techniques for making predesign cost estimations

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Introduction

❖ The final test as to the validity of any cost estimation can come only when the
completed plant has been put into operation. However, it is still possible to make
remarkably close cost estimations before the final process design.
❑ F. Factor Affecting Profitability Of Investments (Chapter 7 & 10)
❖ A ultimate goal is to maximize the long-term profit.
❖ A decision to invest in fixed facilities carries with it the burden of “continuing
interests”, “insurance”, “taxes”, “depreciation”, “manufacturing costs”, etc. and also
reduces the fluidity of the company’s future action.

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❖ Money has a time value and expected to receive a return “during ”the time
money is being used.
❖ The amount of return demanded usually depends on the degree of risk that is
assumed.
❖ The risk depends on;
✓ Process used: well established or a complete innovation
✓ Product to be made: staple (steady in demand) or a completely new product
✓ Sales forecasts: whether sales will be outside the company or a significant fraction
internally
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❑ G. Taxes And Insurance (Chapter 8)

❖ Expenses for various taxes and insurance can materially (substantially,
significant degree) affect the economic situation for any industrial process.
❖ Modern taxes may amount to a major portion of a manufacturing firm’s net
earnings: Chemical engineers must be conversant (familiar) with the
fundamentals of taxation.
❖ Profitability should be based on income after taxes.
❖ However, insurance costs, normally only a small part of the total operational
expenditure of an industrial enterprise.
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❖ Before any operation can be carried at on a sound economic basis, necessary to

determine the insurance requirement to provide adequate coverage against
“unpredictable ”emergencies or development.
❑ H. Depreciation (loss in value) (Chapter 9)
❖ Physical assets of an industrial facility decreases in value with age, therefore, it is
normal practice to make periodic charges against earnings so as to distribute the first
cost of the facility over its expected service life.

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Introduction
❖ No current outlay of cash (unlike other expense), engineering firm needs available,
additional funds (additional to net profit) corresponding to the depreciation expense
in a given accounting periods.
❖ Called “capital recovery”: a partial regeneration of the first cost of the physical assets.
❑ I. Optimum Design (Chapter 11-will not be not covered)
❖In almost every case encountered by a chemical engineer, there are several alternative
methods which can be used for any given process or operation.
❖For example, formaldehyde can be produced by catalytic dehydrogenation of methanol, by
controlled oxidation of natural gas, or by direct reaction between CO and H, under special
conditions of catalyst, temperature, and pressure.
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❖ In almost every case encountered by a chemical engineer, there are several alternative
methods which can be used for any given process or operation.
❖ For example, formaldehyde can be produced by catalytic dehydrogenation of
methanol, by controlled oxidation of natural gas, or by direct reaction between CO and
H, under special conditions of catalyst, temperature, and pressure.
❖ Each of these processes contains many possible alternatives involving variables such
as gas-mixture composition, temperature, pressure, and choice of catalyst.
❖ Role of the chemical engineer, in this case, to choose the best process and to
incorporate into the design the equipment and methods which will give the best results.

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Introduction
➢ i. Optimum Economic Design

➢ If there are two or more methods for obtaining exactly equivalent final results, the

preferred method would be the one involving the least total cost.

✓ This is the basis of an optimum economic design.

✓ One typical example of an optimum economic design is determining the pipe diameter

to use when pumping a given amount of fluid from one point to another.

o Here the same final result (i.e., a set amount of fluid pumped between two given

points) can be accomplished by using an infinite number of different pipe diameters.

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▪ However, an economic balance will show that one

particular pipe diameter gives the least total cost.

▪ The total cost includes the cost for pumping the

liquid and the cost (i.e., fixed charges) for the

installed piping system.

o A graphical representation showing the meaning of

an optimum economic pipe diameter is presented in

the following Figure below.

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➢ As shown in this figure, the pumping cost increases with decreased size of pipe

diameter because of frictional effects, while the fixed charges for the pipeline
become lower when smaller pipe diameters are used because of the reduced
capital investment.

➢ The optimum economic diameter is located where the sum of the pumping costs

and fixed costs for the pipeline becomes a minimum, since this represents the
point of least total cost. In the Figure, this point is represented by E.

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➢ The chemical engineer often selects a final design on the basis of conditions giving

the least total cost.

➢ In many cases, however, alternative designs do not give final products or results

that are exactly equivalent.

➢ It then becomes necessary to consider the quality of the product or the operation as

well as the total cost.

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➢ ii. Optimum Operation Design

➢ Many processes require definite operating conditions to obtained the best results.

o It is often possible to make a partial separation of these optimum conditions from

direct economic considerations.

o In cases of this type, the best design is designated as the optimum operation design.

➢ The chemical engineer should remember, however, that economic considerations

ultimately determine most quantitative decisions.

✓ Thus, the optimum operation design is usually merely a tool or step in the

development of an optimum economic design.

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❖ An excellent example of an optimum operation design is the determination of

operating conditions for the catalytic oxidation of sulfur dioxide to sulfur trioxide.

❖ Suppose that all the variables, such as converter size, gas rate, catalyst activity, and
entering-gas concentration, are tied and the only possible variable is the temperature at
which the oxidation occurs.

❖ If the temperature is too high, the yield of SO3, will be low because the equilibrium
between SO2, SO3, and 02, is shifted in the direction of SO, and 02. On the other hand, if
the temperature is too low, the yield will be poor because the reaction rate between SO2,
and 02 will be low.
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❖ Thus, there must be one temperature where the amount of sulfur trioxide formed will be
a maximum. This particular temperature would give the optimum operation design.

➢The following Figure presents a graphical method for determining the optimum

operation temperature for the sulfur dioxide converter in this example.

➢ Line AB represents the maximum yields obtainable when the reaction rate is

controlling, while line CD indicates the maximum yields on the basis of equilibrium
conditions controlling.

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➢ Point 0 represents the optimum operation temperature where the maximum yield is

obtained. The preceding example is a simplified case of what an engineer might

encounter in a design. In reality, it would usually be necessary to consider various
converter sizes and operation with a series of different temperatures in order to arrive
at the optimum operation design.

➢ Under these conditions, several equivalent designs would apply, and the final

decision would be based on the optimum economic conditions for the equivalent
designs.

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❑ J. Practical Considerations In Design

❖ The chemical engineer must never lose sight of the practical limitations involved in a
design.
❖ For example, exact diameter of the pipe calculated from optimum economic
design not necessarily “must ”be used in final design
❖ If optimum I.D. = 3.43 in (8.71 cm) not practical to fabricate this. Instead, purchase
readily available standard 3 and 1/2 in diameter pipe (I.D. = 3.55 in = 9.02 cm)
❖ Physical problems involved in final operation and maintenance of the designed
equipment
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❖ Crucial (extremely important) control valves at easily accessible to the operators

❖ Sufficient space must be available for maintenance personnel to check, take apart, repair
equipment
❖ For example, theoretical designing of a distillation unit may indicate (suggest) that the
feed should be introduced on one particular tray in the tower.
❖ Instead of specifying a tower with only one feed inlet on the calculated tray, the practical
engineer will include inlets on several trays above and below the calculated feed
point: actual operating conditions for the tower will vary and the assumptions
included in the calculations make it “impossible” to guarantee absolute accuracy.

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❑ K. The Design Approach

❖ Computers can solve problems in process development and design rapidly with a
higher degree of completeness, which generally, can reduce overdesign and
safety factors: consequently a substantial savings in capital investment.
❖ However, at no time, should the engineer be led to believe that plants are
designed around computers.
❖ The general approach in any plant design involves a carefully balanced
combination of theory, practice, originality and plain common sense.

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❖ In many cases, however, exact values for necessary physical properties are not
available, and the engineer is forced to make approximate estimates of these values.
❖ In the engineer’s approach to any design problem, it is necessary to be prepared to
make many assumptions; these assumptions are made because no absolutely accurate
values or methods of calculation are available.
❖ At other times, methods involving close approximations are used because exact
treatments would require long and laborious calculations giving little gain in
accuracy.
❖ Economic conditions and limitations: always better to sell many units at a low
profit per unit then a few units at a high profit per unit.
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THANK YOU..☺

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