Chemical engineering plant cost index

[Mohamed]

Please if any one can shareChemical Engineering Plant Cost Index or cost estimation standard of any world well re-known company
example of i want

[link Point to another website Only the registered members can access]

[link Point to another website Only the registered members can access]

[Mohamed]

Cost Indices Cost data are given as of a specific date and can be
converted to more recent costs through the use of cost indices. In general,
the indices are based upon constant dollars in a base year and
actual dollars in a specific year. In this way, with the proper application
of the index, the effect of inflation (or deflation) and price increases by
multiplying the historical cost by the ratio of the present cost index
divided by the index applicable in the historical year. Labor, material,
construction costs, energy prices, and product prices all change at different
rates. Most cost indices represent national averages, and local
averages may vary considerably.

The chemical engineering (CE) index and the Marshall and Swift
index are found in each issue of the magazine Chemical Engineering.
The Oil and Gas Journal reports the Nelson-Farrar Refinery indices
in the first issue of each quarter. The base years selected for each
index are generally periods of low inflation so that the index is stable.
The derivation of base values is referred to in the respective publications.

Use of Cost Index : A centrifuge cost $95,000 in 1999.
What is the cost of the same centrifuge in third quarter of 2004? Use the CE
index.
Solution:
CE index in 1999 = 390.6
CE index in 3d quarter 2004 = 457.4
Cost in 2004 = cost in 1999 (CE index in 3d quarter 2004/ CE
index in 1999)
= $95,000 (457.4/390.6)=$111,200

[Mohamed]

Cost estimating for chemical engineering plant design

[link Point to another website Only the registered members can access] ·

[link Point to another website Only the registered members can access] or

[link Point to another website Only the registered members can access] Chapter 9. Includes capital costs for several plants, equations for some equipment, etc.
·

[link Point to another website Only the registered members can access] (search plant costs, chemical prices, Nelson-Farrar refinery construction index, refinery operating costs)
·

[link Point to another website Only the registered members can access]
· “Handbook of Petrochemicals Production Processes,” Robert A. Meyers, editor, McGraw-Hill (2005), 665.538 H236. Requirements for capital investment, raw materials and utilities for many common petrochemicals.

Chemicals, raw materials and products: CAUTION: Prices for laboratory quantities are much higher than for the commercial quantities that you would use for plant design economic calculations. Don't use the costs of raw materials and products given in the text. If you search the internet, use “price” rather than “cost.”

• Wilson Web:

  [link Point to another website Only the registered members can access] ; (Search price OR cost AND chemical’s name). Includes the following three:

• [link Point to another website Only the registered members can access] (Search to find articles about particular chemicals, such as manufacturers, production rates, prices)

• [link Point to another website Only the registered members can access] (Click on one issue, and then Find to search for news about particular chemicals from many sources).

• [link Point to another website Only the registered members can access] (formerly Chemical Market Reporter);

  [link Point to another website Only the registered members can access]

  [link Point to another website Only the registered members can access]

  [link Point to another website Only the registered members can access] ;

  [link Point to another website Only the registered members can access] (Click on one issue, and then Find to search for news about particular chemicals from many sources.)

  [link Point to another website Only the registered members can access] Magazine: TP1.c37.

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access] Magazine: TP1 .C35

• Noble metals (silver, platinum, rhodium, iridium) as used in small percentages in catalysts: use google or similar search engine to find price on line for quantity needed.

  [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access] The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output.”

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• Search “chemical name price” at

  [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

Utilities costs
Lower costs than those found below may be negotiated with local suppliers when large quantities are to be used. To obtain the costs per GJ required by

[link Point to another website Only the registered members can access]

[link Point to another website Only the registered members can access]

[link Point to another website Only the registered members can access]

[link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access] ;

  [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• Credits for steam or electricity produced should be deducted from the Cost of Manufacturing and not included in sales of product(s).

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

Waste treatment costs

• [link Point to another website Only the registered members can access] of treating waste water and gas.

• Waste gas: Take a credit for a combustible (fuel) waste gas that is at a concentration above the

  [link Point to another website Only the registered members can access]

  [link Point to another website Only the registered members can access] a cost of $0.005/kg. Any products not permitted to be exhausted (such as SO2 in many places) must be removed before the gas is released. Charge $0.20 per kg of materials that must be removed. Assume these are 2001 prices; update the burning cost using the price of natural gas and the waste treatment cost by the price of electricity.

• Waste water: Charge $0.25 per kg of components that must be removed before discharge of the water. This cost is for 2001, so update using the cost of electricity.

Wages and benefits

• Bureau of Labor Statistics:

  [link Point to another website Only the registered members can access]

  [link Point to another website Only the registered members can access]

  [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access] : Magazine:TA1 .E6

• [link Point to another website Only the registered members can access] :TN860 .O4

• [link Point to another website Only the registered members can access]

Equipment sizing:Before the cost of equipment can be estimated its size must be determined. Similarly, the utilities requirements must be calculated. Note that HYSYS/UniSim uses inappropriate default values when the units are first entered, e.g. tower diameter and heat exchanger area. Do not use these default values for cost estimation.

• [link Point to another website Only the registered members can access] Warning: The part of HYSYS/UniSim installed at Clarkson University does not calculate heat transfer coefficients correctly. It only calculates q/DTavg and gives this as UA (i.e., it sets F=1) . The shell area sometimes shown under the Sizing tab is calculated from the default dimensions of the heat exchanger, and the U given by HYSYS/UniSim is calculated by dividing UA by this meaningless A. (Make certain you know how HYSYS/UniSim calculates UA.)

• [link Point to another website Only the registered members can access] For heat exchangers that condense steam or boil water fed at saturation, the temperature of the water-steam is fixed by the pressure and would be constant if its pressure drop in the heat exchanger were 0. The flow rate of the water-steam is calculated by dividing the Q by the latent heat of evaporation at that pressure. If the boiler feed water (bfw) is below saturation, calculation of the heat exchanger should be broken into two parts -- one to heat the bfw up to the saturation temperature and a second to evaporate all of it. Similarly, if superheated steam is fed, for calculation purposes break the heat exchanger into one that cools the steam to saturation and a second that condenses it to saturated water.

• Fired heaters: Everything you need to cost fired heaters is in most design texts, CPC texts, and Perry’s. The cost depends on the duty and the process stream heated. The utility (fuel) cost is determined by dividing the duty by the lower heating value of the fuel and the efficiency.

• [link Point to another website Only the registered members can access]

• When a reactor is either heated or cooled, cost it as the sum of the cost of a heat exchanger plus that of a vessel. For a plug flow reactor, you calculate the area from the tube diameter, length and numbers. For a fluidized bed reactor use the Q and Ts to calculate the area as for other heat exchangers.
• Do not forget to have spare pumps, as they tend to require maintenance more often than other units.
• Make certain to select the type of compressor required for your conditions, e.g. do not use a blower or fan unless the pressure increase is very small. Spare compressors are not advised.

Equipment and capital investment

• Chapter 9 in

  [link Point to another website Only the registered members can access]

• Chapter 20 in

  [link Point to another website Only the registered members can access] (pre 1990)(copied into Appendix C of

  [link Point to another website Only the registered members can access] )

• [link Point to another website Only the registered members can access] (many graphs of cost versus size as of January 1, 1996)

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• [link Point to another website Only the registered members can access]

• All costs should be for the present time, or estimated for the proposed construction time. Use the Chemical Engineering Plant Cost Index (CE index, or CEPCI) or another cost index to update equipment costs: last page of each issue of Chemical Engineering:TP1 .C3. For recent data on line,

  [link Point to another website Only the registered members can access] (get ID & PW from your instructor). Alternatives are the

  [link Point to another website Only the registered members can access] (AD login, Economics, Current Costs; old issues TA1.e6), the Marshall & Swift Equipment Cost Index (at the Chemical Engineering link above), and the Nelson-Farrar Refinery Cost Index (search Nelson-Farrar or Economics at the

  [link Point to another website Only the registered members can access] Chemical Engineering magazine and the Oil & Gas Journal also include cost indices for individual types of equipment.

• [link Point to another website Only the registered members can access]

· “Richardson Process Plant Construction Cost Estimating Standards: The Richardson Rapid System,” Cost Data On Line, Inc. (CD &

[link Point to another website Only the registered members can access] Excellent source of cost estimating methods. 1999 edition in the Clarkson Library at Ref 692.5 R522p

• [link Point to another website Only the registered members can access]

·

[link Point to another website Only the registered members can access]

• Use pie charts to show graphically what the major cost items are to help you decide where to work on improving the economics of the plant. It is recommended to have one pie chart for equipment and another for manufacturing costs. Rather than include the entire raw material cost as a manufacturing expense, include only the portion that is not converted to sellable product. If you are having difficulty showing a profit, it is probably because you are converting an insufficient fraction of the raw material to sellable product because of poor selectivity in your reactor and/or because of poor separations. Take a particular look at compressors, as they are expensive to purchase and to operate. Could a pump be used instead, e.g. by first condensing the stream? Should two compressors be used with a heat exchanger in between?
• Optimization: Before adjusting the operating parameters of individual units to cut costs, first consider rearranging, adding or subtracting units in your pfd. Consider using more than one reactor in series and more than one heat exchanger in series. For example, if you want to cool a stream to below 0oC, you can cool it part way by boiling water in one exchanger, some more with cooling water in a second exchanger, and finally with refrigerant in a third.

• [link Point to another website Only the registered members can access]

Calculation of NPV, DCFRR and payback period.

• [link Point to another website Only the registered members can access]

  [link Point to another website Only the registered members can access]

• Make certain you do your MACRS depreciation, cash flow, and discounted cash flow calculations correctly. Note that a 5-year MACRS takes place over a 6-year period, because the first and last years are considered half years. At the end of 6 years of production, the book value should be 0.

• [link Point to another website Only the registered members can access]

  [link Point to another website Only the registered members can access]

  [link Point to another website Only the registered members can access]

• Do not show depreciation as a cost or expense, except for calculation of income tax.

• [link Point to another website Only the registered members can access] 18,333,333) If a state is not shown, that state does not tax corporate income, in an effort to attract industry.

• Do not forget to estimate reasonable values for land and working capital, and indicate how you arrived at these numbers. Remember to recover these costs in the last year of operation.
• It is a serious mistake to calculate the sum of the discounted cash flows by dividing the sum of the cash flows by (1+i)n.
• Instructions on use of

  [link Point to another website Only the registered members can access]

  [link Point to another website Only the registered members can access]

[Mohamed]

[link Point to another website Only the registered members can access]

[link Point to another website Only the registered members can access]

[josefreitas]

Very useful for Cost Estimation. Thanks

[swei90]

Dear Mohamed,
Currently i am doing final year project.I need the M& S cost index2012...
Can you kindly send me the chemical engineering plant cost index for 2012 d?
Please...i really need it...
Thanks in advance

[josefreitas]

please share. thanks

[josefreitas]

here a link h-t-t-p://www.4shared.com/office/sw0y6lo0/Perrys_Chemical_Engineers_Hand.html
and

h-t-t-p://www.4shared.com/office/Xa_nxPcv/plant_design_and_economics_for.html

[os12]

Dear josefreitas,
Thanks a lot!