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Chapter 9 - Process Economic Evaluation

Chapter 9 discusses the economic evaluation process for chemical processes, focusing on determining profitability and comparing design options. It outlines two approaches for economic assessment: using reference books for manual calculations and utilizing the Aspen Process Economic Analyzer (APEA) software for automated evaluations. APEA streamlines calculations for investment, operating, and raw material costs, enabling quick comparisons of different design options to optimize profitability.

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Vũ Nguyễn Hùng
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8 views

Chapter 9 - Process Economic Evaluation

Chapter 9 discusses the economic evaluation process for chemical processes, focusing on determining profitability and comparing design options. It outlines two approaches for economic assessment: using reference books for manual calculations and utilizing the Aspen Process Economic Analyzer (APEA) software for automated evaluations. APEA streamlines calculations for investment, operating, and raw material costs, enabling quick comparisons of different design options to optimize profitability.

Uploaded by

Vũ Nguyễn Hùng
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter 9

PROCESS ECONOMIC
EVALUATION
Roles of economic assessment
Determine Set Design
Customer Needs Specifications
Build Performance
Models
Generate Design
R&D if Needed
Concepts
Predict Fitness
For Service

Evaluate Economics
& Select Design
Customer
Approval
Detailed Design & Procurement
Begin Operation
Equipment Selection & Construction

Economic assessment:
 Determine whether the process is profitable for the investor, and then
decide whether to proceed to the next steps? (detailed design,
construction and operation of the factory...)
 Compare design options to choose the one that gives the best profit or
lowest production cost
Two approaches to economic evaluation

1. Use information about equipment prices and calculation formulas


from the reference book:
 Be active in the calculation process, active in using assumptions
and calculation options
 It is necessary to roughly estimate the size of the equipment to be
able to calculate the investment cost of the equipment
 Time consuming
2. Use the software, specifically the Aspen Process Economic
Analyzer (APEA) tool in Aspen Hysys software:
 Saves calculation time, able to compare and evaluate different
options conveniently and quickly
Two approaches to economic evaluation
1. Use information about equipment prices and calculation
formulas from the reference book:
- Chapters 7, 8, 9, 10 in the book “Turton, Bailie, Whiting, and
Shaeiwitz. (2012). Analysis, Synthesis and Design of Chemical
Processes, Fourth Edition. Prentice Hall” present process
economic evaluation:
- Chapter 7 - Capital Cost Estimation
- Chapter 8 - Cost of Manufacturing
- Chapter 9 - Economic Analysis
- Chapter 10 - Profitability Analysis
Two approaches to economic evaluation

2. Use the software, specifically the Aspen Process Economic


Analyzer (APEA) tool in Aspen Hysys software:
- Used to calculate and evaluate the economics of the process
- Described and instructed for use in this chapter
Aspen Process Economic Analyzer (APEA)

2. This tool allows to automatically calculate values ​that represent


the economics of the process as follows:
 Investment costs
 Operating costs
 Raw material costs
 Utility (energy) usage costs in the process
 Revenue from product sales
 Pay Off period
Note: “automatic calculation” means that after the user completes the simulation in
Aspen Hysys, and activates the APEA tool, the software will automatically
calculate and display the results without any additional operations. any other
action from the user
Aspen Process Economic Analyzer (APEA)

APEA contains the following information in the software database


to make automatic calculations possible:
 Prices of chemicals (to calculate raw material costs and revenue
from product sales)
 Cost of utilities such as electricity, cooling water, steam (to
calculate utility/energy usage costs in the process)
 Prices of process equipment (to calculate equipment investment
costs)

Note: users can enter “user-defined” prices of chemicals and utility prices
instead of using the price information available in the software
Aspen Process Economic Analyzer (APEA)
APEA contains built-in calculation methods to help determine the
necessary component costs in the process of calculating plant
investment costs (capital cost) and operating costs:
 Direct costs (equipment costs, material costs for equipment
installation, labor costs...) and indirect costs (transportation
costs, taxes, insurance, project management costs and office
administration, risk provision costs,...), costs for construction &
installation contractors,...
 The way to estimate these types of component costs follow
current standards in the chemical industry, users do not need to
customize..
Aspen Process Economic Analyzer (APEA)

APEA automatically performs the following steps according to a


pre-defined scheme that the user can change as desired:
 Mapping
 Sizing
Aspen Process Economic Analyzer (APEA)

Mapping: Convert from the model in Hysys (process unit

model) to a specific device (or device system) in reality. For

example, a distillation column in Hysys will be "converted" into

a system including a trayed tower distillation column, an

equipment system at the top of the column including a cooling

condenser, and a reflux drum. and pump, kettle-type reboiler at

the bottom of the column


Aspen Process Economic Analyzer (APEA)
Mapping

Users can declare/customize the results of this "mapping" step according


to the user’s intent. The software automatically performs this step if the
user does not declare/customize it
Aspen Process Economic Analyzer (APEA)

How to declare/customize the results of the “mapping” step


according to the user’s intent (the cumene production process has
been simulated on Hysys is used as an illustrative example)
Click on button “Map” on Tab “Economics”
Aspen Process Economic Analyzer (APEA)

Windows “Map Options” appears. Click “OK”


Aspen Process Economic Analyzer (APEA)

The “Map Preview” window appears. Select the device for which
you want to customize the device configuration, for example
“H1(HEATER)”. This device heats the cold stream to a
temperature of 170 oC using a hot utility stream, so the standard
equipment for this type of heat exchanger is the "TEMA shell and
tube exchanger" (automatically selected by APEA), depending on
operating conditions. Other options are another type of heat
exchanger such as a plate heat exchanger or furnace
Aspen Process Economic Analyzer (APEA)

Click on drop-down menu at Tab “Equipment Type”


Aspen Process Economic Analyzer (APEA)
Then click “Heat exchangers, heaters”
Aspen Process Economic Analyzer (APEA)
Select the device type corresponding to this “H1” heater. For
example, choose a different type of heat exchanger other than
APEA's choice “TEMA shell and
& tube exchanger”
Aspen Process Economic Analyzer (APEA)
Select the device type corresponding to this “H1” heater. For
example, choose a different type of heat exchanger other than
APEA's choice, which is
“U-tube shell and
tube exchanger”
Aspen Process Economic Analyzer (APEA)

The results are updated


Aspen Process Economic Analyzer (APEA)

After completing the "Mapping" step, users can continue to the


next step which is "Sizing": Click on the "Size" button
Aspen Process Economic Analyzer (APEA)
In the "Sizing" step, APEA will automatically calculate and
determine the equipment size (preliminary estimate, according
to current calculation standards in the chemical industry), as
well as select the types of material to make the device.
Click on the “View Equipment” button to see the results
calculated by APEA
and customize if desired
Aspen Process Economic Analyzer (APEA)
Click the “View Equipment” button to see the results
calculated by APEA and customize if desired. For example
with equipment H-1 (“U-tube HEX”)
Aspen Process Economic Analyzer (APEA)
For example, with device H-1 (“U-tube HEX”): select the
desired material for the heat transfer tube: click on “Tube
material”
Aspen Process Economic Analyzer (APEA)
For example, with equipment H-1 (“U-tube HEX”): choose
stainless steel 304L “304LS” as the tube making material
Aspen Process Economic Analyzer (APEA)
For example, with equipment H-1 (“U-tube HEX”): choose
stainless steel 304L “304LS” as the tube making material
Aspen Process Economic Analyzer (APEA)

After completing the "Mapping" and "Sizing" steps, the final


step is economic evaluation: Click on the "Evaluate" button
Aspen Process Economic Analyzer (APEA)

After completing the “Evaluate” step, the results are displayed (this
result corresponds to APEA's default choice)
Aspen Process Economic Analyzer (APEA)
Click on each corresponding tab to see detailed results for each
cost component, for example, if you want to see the cost of
using utilities (energy), click on the "Utilities" tab.
Aspen Process Economic Analyzer (APEA)

If all APEA default choices are accepted for the 2 steps


“Mapping” and “Sizing”: the user can evaluate the economics
of the process simply by “Turn ON” the APEA tool
Aspen Process Economic Analyzer (APEA)

After completing the calculations, the results are displayed,


click on the “Tick mark” to see detailed results
Aspen Process Economic Analyzer (APEA)

In addition, users can customize other information such as the price


of the chemical, for example the price (cost) of the C 3H6

(propylene) feed stream: double click on the C3H6 (propylene)


stream:
Aspen Process Economic Analyzer (APEA)

Information of input line C3H6 appears, select the item “Cost


Parameters”
Aspen Process Economic Analyzer (APEA)

Enter pricing information according to user values, for


example: 1.2 Cost/kg
Aspen Process Economic Analyzer (APEA)

Click on “Stream Price” to monitor or change chemical price


information
Aspen Process Economic Analyzer (APEA)
Click on “Stream Price” to monitor or change chemical price
information
Aspen Process Economic Analyzer (APEA)

For example, change the value of stream C3H6 from


1.2 Cost/kg to 1.4 Cost/kg
Aspen Process Economic Analyzer (APEA)

Users can monitor and customize utility usage for an energy


stream, for example double click on energy stream E-1 which
is a hot utility stream used in Heater H1
Aspen Process Economic Analyzer (APEA)

Monitor and customize utility usage for E-1 energy stream:


APEA chooses to use high pressure steam "HP steam" to heat
the cold stream to a temperature of 170 oC which is a
reasonable choice so there is no need to change this option
Aspen Process Economic Analyzer (APEA)

Click on “Process Utilities” to monitor or change information


about utility prices (energy prices):
Aspen Process Economic Analyzer (APEA)
Click on "Process Utilities" to monitor or change information
about the prices of utilities (utilities marked in the "Calc.
HTC" column are utilities used in the process)
Aspen Process Economic Analyzer (APEA)
For example, change the price of “HP Steam” from 2.5e-006
Cost/kJ to 2.1e-006 Cost/kJ
Aspen Process Economic Analyzer (APEA)
APEA allows quick calculation of the economics of the
process, thereby allowing evaluation and comparison between
different design options. For example, the cumene process
without heat recovery (using only heaters and coolers) has the
following economic performance (P.O Period = Pay Off Period
= payback period)
Aspen Process Economic Analyzer (APEA)
Add 1 heat exchanger: use the heat of the stream leaving the
reactor to heat the input stream into the reactor (using E-100);
The stream leaving the reactor is then cooled to the required
temperature (using E-101).
Aspen Process Economic Analyzer (APEA)
The option to add 1 heat exchanger has the following
economic performance:
Aspen Process Economic Analyzer (APEA)

Clearly, the design option that recovers heat is better than the
option that does not recover heat: it has lower investment costs
and utility costs, resulting in a shorter payback period.

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