Introduction to

Aspen Process Economic Analyzer

Sunil Patil
Sr. Principal Business Consultant

© 2014 Aspen Technology, Inc. All rights reserved

Agenda

 Introduction and Overview

 Cost Basis
 Process Equipment and Bulk Modeling
 Economic Evaluation Templates
 Integrated/Activated Economics Advantages
 Workflow Example
 Additional Modules

© 2014 Aspen Technology, Inc. All rights reserved | 2

Asset Engineering Workflow

Analyze
Safety & Process
Economic
Controllability Performance
Performance
Analysis Modeling & Analysis
Conceptual
Design / R&D

Develop Basic
Detailed
Basic Design Package
Equipment Analyze
Engineering
Design Detailed
Costs
Develop Detailed
Detailed Plant Design
Engineering

Reuse Process Reuse Process

Model for Models for
Operations/ Operations Decisions Planning Decisions
Maintenance

© 2014 Aspen Technology, Inc. All rights reserved | 3

Asset Engineering Workflow

Safety & Aspen Aspen Process

Controllability Plus / HYSYS Economic
Analysis Analyzer
Conceptual
Design / R&D

Develop Basic
Detailed
Basic Design Package
Equipment
Engineering Aspen Capital
Design
Cost Estimator
Develop Detailed
Detailed Plant Design
Engineering

Reuse Process Reuse Process

Model for Models for
Operations/ Operations Decisions Planning Decisions
Maintenance

© 2014 Aspen Technology, Inc. All rights reserved | 4

 Aspen Economic Evaluation
Family and the Project Lifecycle

Process Plant Constr- De-

Concept Design Design uction Startup Bottle- Retrofit Production
neck

Aspen Aspen
Process Capital
Economic Cost
Analyzer Estimator
Aspen In-Plant
Cost Estimator

© 2014 Aspen Technology, Inc. All rights reserved | 5

 What is Aspen Process Economic Analyzer
(APEA)?

 Tool for preliminary/relative economic analysis

 Two usage modes
– Integrated Economics: Preliminary economic analysis within
simulation environment/graphical interface
– Conventional: Simulation data exported to separate Aspen
Process Economic Analyzer interface
 Generates preliminary equipment sizes and designs using
process simulator data
 Calculates estimated capital and operating costs for a
process
 Allows rapid evaluation of processes alternatives to compare
relative profitability
 Projects created in Aspen Process Economic Analyzer can be
refined in Aspen Capital Cost Estimator
© 2014 Aspen Technology, Inc. All rights reserved | 6
 Typical Workflow

 Prepare underlying template(s)

– Default equipment mappings
– Default utility costs
– Labor and material cost adjustments

 Load simulator data

 Map simulator unit operations to equipment models
 Evaluate process economics

© 2014 Aspen Technology, Inc. All rights reserved | 7

 Capital Costs

 Costs for initial and working capital

 Direct costs
– Equipment
– Piping
– Civil
– Steel, etc.
 Indirect costs
– Construction rental equipment
– Construction management
– Engineering, etc.

© 2014 Aspen Technology, Inc. All rights reserved | 8

 Operating Costs

 Operator and supervisor costs

 Feedstock costs estimated using stream data and user
entered information
 Utility costs
– Steam
– Heating oil
– Cooling water
– Refrigerants
– Electricity, etc.

© 2014 Aspen Technology, Inc. All rights reserved | 9

 Cost Basis

 Cost basis updated with each annual release

 Five base locations
– US Gulf Coast
– EU
– UK
– Japan
– Middle East
 Material and labor specifications can be adjusted to
represent site-specific conditions

© 2014 Aspen Technology, Inc. All rights reserved | 10

 Investment Analysis

 Product sales estimated using stream data and user entered

information
 Profit = Sales - (Capital Costs + Operating Costs)
 Investment analysis module generates typical economic
metrics
– NPV
– IRR
– PO, etc.

© 2014 Aspen Technology, Inc. All rights reserved | 11

 Process Equipment

 Primary equipment items derived from simulation

– Simulator blocks mapped to one or more equipment models
– User-defined parameters govern designs
 Additional process equipment items added by user
– Pumps
– Storage tanks
– Spares
 Equipment models have attached P&ID
– Used to estimate piping and instrumentation costs
– Sizing equations used to estimate pipe quantities (length and
diameter)
 Volumetric modeling used to estimate other bulk quantities and
costs (civil, paint, insulation, etc.)

© 2014 Aspen Technology, Inc. All rights reserved | 12

 Equipment Design and Cost Procedure
PROJECT SPECS:
• Mechanical design specs
• Project components specs

Equipment
MECHANICAL DESIGN:
design generated
Develop physical dimensions using:
• design code procedures
• industry standard methods

FABRICATION LABOR:
• Shop [+ Field]
• Labor
• Man-hours

Equipment FOB cost

VESSEL COST:
estimated 1. Mat’l cost of parts
2. Shop [+ field] fab labor
3. Labor overheads
4. G and A
5. Profit

© 2014 Aspen Technology, Inc. All rights reserved | 13

Equipment Design Data and Estimated FOB
Cost from Vendor

© 2014 Aspen Technology, Inc. All rights reserved | 14

 Volumetric Models:
Calculation of Installation Bulks

 Total installed cost estimated

x
 Quantities and costs for bulk materials
based upon equipment specifications
 Volumetric models for process
equipment:
x

– Conceptual P&IDs

x
– Civil
– Steel
– Electrical x
– Insulation

x
– Paint

© 2014 Aspen Technology, Inc. All rights reserved | 15

 Economic Evaluation Templates - Overview

 Templates are Project Configuration files

 Templates can be shared between APEA and ACCE
 Templates can contain configuration information from both
APEA and ACCE
 Templates can be created for use by Integrated Economics
in Aspen Plus and Aspen HYSYS

© 2014 Aspen Technology, Inc. All rights reserved | 16

 Economic Evaluation Templates

Templates stored in a Template Library

One template library for all products
Templates created can be used for Integrated Economics
Any Project Level selection can be stored in Template

© 2014 Aspen Technology, Inc. All rights reserved | 17

APEA Templates set Economic Parameters

Location,
Process type,
Design Codes…

Wage rates,
Material pricing,
Investment

© 2014 Aspen Technology, Inc. All rights reserved | 18

APEA Templates set Operating Costs

Electric utility in
simulation case will take
precedence.

© 2014 Aspen Technology, Inc. All rights reserved | 19

APEA Templates set Design Parameters

Location,
Process type,
Design Codes…

Default sizes,
factors, and
rules of thumb…

© 2014 Aspen Technology, Inc. All rights reserved | 20

APEA Templates set Default Process Utility
Specifications

Process utilities
defined in the
simulation case
are added…

© 2014 Aspen Technology, Inc. All rights reserved | 21

APEA Templates set Default Unit Operation
to Equipment Mappings

Map Unit Operation 1-to-1

1 or 1-to-many
Standard configurations exist for towers

© 2014 Aspen Technology, Inc. All rights reserved | 22

APEA Templates set Sizing Methods for Each
Equipment Type

Custom models
are created for
customer sizing

© 2014 Aspen Technology, Inc. All rights reserved | 23

P&ID Library:
Double Diameter Tower

© 2014 Aspen Technology, Inc. All rights reserved | 24

 Non-Equipment Costs

 System estimates costs for additional bulk quantities

– Project bulks
 Process control
 Power distribution
– Area bulks
 Grounding
 Lighting
 Steel structures
 Users can account for additional costs using system models
– Plant bulks
 Pipe rack
 Rack piping
– Buildings
– Site development

© 2014 Aspen Technology, Inc. All rights reserved | 25

 Integrated Workflow Advantages

 One environment = faster learning curve

 Interactive sizing from inside the simulator
 Enables concurrent design & costing
 Rigorous cost modeling allows rapid evaluation of
process scenarios
 Resulting project file can be opened directly in Aspen
Capital Cost Estimator

© 2014 Aspen Technology, Inc. All rights reserved | 26

 Activate Economic Analysis in Aspen Plus
Setting up the analysis

1. Select Economics Ribbon within

Aspen Plus (V8 and above)

2. Click Cost Options to access

Economic Evaluation settings
3. Browse to Economic
Evaluation template (created in
conjunction with Aspen Capital
Cost Estimator users)

Template contains system

defaults, including:
 Mapping information
(equipment models derived
4. Scenario name defines name 5. Investment options can from unit operations)
for folder and Economic be entered here  Equipment sizing
Evaluation file – created under parameters
directory in which Aspen Plus  Utility costs
file is stored

© 2014 Aspen Technology, Inc. All rights reserved | 27

Project Template Utilization
Developing the Project Template

Process Engineer
Process Engineer, Cost Estimator (Aspen Capital Cost Estimator user)
Cost Estimator (Aspen Capital Cost Estimator user)
Process Engineer, Cost Estimator (Aspen Capital Cost Estimator user)
Cost Estimator (Aspen Capital Cost Estimator user)

Process Engineer

© 2014 Aspen Technology, Inc. All rights reserved | 28

Setting up Stream Pricing
Setting up the analysis

Select Stream Price to define

unit costs for feed stream and
unit values for product streams

Drop-down list allows user to

select available simulation streams
Add feed and product streams
and define unit costs/values

© 2014 Aspen Technology, Inc. All rights reserved | 29

Setting up Utility Pricing
Setting up the analysis

Select Process Utilities to define

unit costs for utility streams

Add, edit, and delete utility streams

© 2014 Aspen Technology, Inc. All rights reserved | 30

Utility Specification set up
Example - Cooling Water

Process Utilities example

Cooling Tower Water

© 2014 Aspen Technology, Inc. All rights reserved | 31

Activate Economic Analysis

Select Economics Active and

Auto-Evaluate options to
initialize Activated Economics

Click Activated Economics

button to generate estimated
capital and operating costs for
the process based upon system
defaults (defined in Economic
Evaluation template)

© 2014 Aspen Technology, Inc. All rights reserved | 32

Base Case – Economics Analysis
Looking at Capital and Utility Costs

Estimated process costs (Inside

Battery Limits) generated by
Activated Economics

© 2014 Aspen Technology, Inc. All rights reserved | 33

Base Case – Economics Analysis
Viewing Equipment Summary

Equipment tab displays details

on equipment items derived
from simulation unit operations

Equipment cost represents the

bare equipment (FOB) vendor
costs

Installed cost represents total

direct installation costs,
including:
 Piping
 Instrumentation
 Foundations
 Electrical
 Steel
 Insulation and paint

© 2014 Aspen Technology, Inc. All rights reserved | 34

Base Case – Economics Analysis
Reviewing for Errors

Errors displayed in Equipment

Summary

Sizing errors column indicates

unit operation stream data
problems that prevent the
mapped equipment from being
sized by Activated Economics

Evaluation errors are generated

during Activated Economics
design and costing procedure

© 2014 Aspen Technology, Inc. All rights reserved | 35

Base Case – Economics Analysis
Equipment Mapping

Equipment tab displays details

on equipment items derived
from simulation unit operations

Default basis uses underlying

Economic Evaluation template
to dictate default equipment
item(s) generated for each unit
operation model

Last mapping option basis will

preserve any user-defined
equipment mapping changes for
the simulation

© 2014 Aspen Technology, Inc. All rights reserved | 36

 Base Case – Economics Analysis
Equipment Mapping Cont’d

Multiple configurations
available for some unit
operation models (e.g.,
RADFRAC)

Configuration defines set of

equipment items derived from a
single unite operation

Drop-down list allows user to

select alternate equipment
model
Equipment models can be
Select individual unit operations mapped or deleted for unit
to review and change mapped operations
equipment model(s)

© 2014 Aspen Technology, Inc. All rights reserved | 37

Files Generated by Activated Economics

Economic data stored in a folder

in the same directory in which
the Aspen Plus file resides

Name of Sub-folder defined as

part of Costing Options

.IZP file within economics sub-

folder contains project definition
(preliminary sized equipment
list). File can be shared with
Aspen Capital Cost Estimator
users for additional project
definition and refinement

© 2014 Aspen Technology, Inc. All rights reserved | 38

 Streamlining Collaboration with Estimating

 Economics Analysis work process creates an “izp” file

 The “izp” file can be opened directly in ACCE by Estimator
 Automates transfer of sized equipment list and other
costing information that is generated during the screening
work done by process engineers
 Common templates are used by engineering and estimating
 Estimators can apply estimating expertise to the candidate
project much sooner, instead of re-entering project data
 Work processes increase optionality – enabling more
options to be considered in same amount of time

© 2014 Aspen Technology, Inc. All rights reserved | 39

 Additional Modules:
Aspen Process Economic Analyzer Interface

 Decision Analyzer
– Analyzer Scale-Up Module (ASM)
– Analyzer Relocation Module (ARM)
– Analyzer Economic Module (AEM)

 Utility Models
– Air (instrument and plant)
– Cooling water

© 2014 Aspen Technology, Inc. All rights reserved | 40