QUESTION

$1(55)$

$2\mathrm{.}1$ Estimate ISBL capital cost of producing $35000$ barrels per day $($bpd$)$ Hydrocracking by Axens process $($N$.$B$,$ note the units conversion$).$ Use the Step$-$Count Method $($Bridgetwater$\text{'}$s water method$)$ assuming $3$ units and the Rapid Cost Estimate method. $(8)$

$2\mathrm{.}2$ Using the Annualized Cost Method, estimate the annual capital

charge ratio $($ACCR$)$ and the annual cost of the heat exchanger using Hastelloy C material that costs $R400000$ with a service life of $7$ years before replacement with $20\%$ cost of capital $($study example $1\mathrm{.}10,$ page $347).(4)$

$2\mathrm{.}3$ If Monel material was to be used for the exchanger above, would it be economical to use Hastelloy or continue with Monel material assuming Monel service life of $20?(6)$

$2\mathrm{.}4$ Your production company is considering expanding its production capacity for a new special product. The initial investment for the project is R$2$ million and the project is expected to generate cash flows of R$600,000$ per year for the next seven years. The company's cost of capital is $10\%.$

a$.$ What will be the NPV of the project? $(9)$

b$.$ Is the project financially viable or not, explain your answer in detail based on the assumptions made. $(3)$

$2\mathrm{.}5$ You have decided to buy an additional distillation column for R$250000,$ that will give you additional income of R$50000$ per year for the next $10$ years.

a$.$ You require that the $2250000$ must be paid within $5$ years, what will be the pay$-$back period of the project? $(4)$

b$.$ Is it worth investing in the additional distillation column or not, and why? $(3)$

$2\mathrm{.}6$ Estimate the cost of the Product purification column: $304$ stainless steel plate column $($vertical vessel$),$ diameter $1m^2,$ height $20m,15$ sieve plates, design pressure $2$ bar. Four centrifugal pumps with $67$ litres per second and an explosion$-$proof motor of $1000kW$ will be used. $(18)$

CHEMICAL PROCESS DE:

QUESTION $1(55)$

$1\mathrm{.}1$ Cumene is manufactured from the distillation of coal tar and petroleum fractions or is produced by the alkylation of benzene with propene using an acidic catalyst $($European Commission, $2001).$ It is mainly used in the production of acetone and phenol. Benzene and propylene are the primary feedstocks for cumene production. The reaction of benzene and propylene reaction is catalysed by an acid catalyst, often either aluminum chloride or solid phosphoric acid. As a Project Manager, you have decided by force to build a $150000$ tons$/$year plant by demolishing the historical Sharpville Apartheid Memorial Site $($Sharpville Massacre Memorial Site$).$ The project will start from the $1^{tt}$ of July $2024,$ although the global need for cumene is $40000$ tons$/$year$,$ you are convinced in your heart that this will improve in a few years. Temperatures $($around $250-350C)$ and pressures $(5-\frac{30}{b}ar)$ are typically used to achieve high conversion rates while minimising undesirable side reactions. However, your design engineer said the reactor will be at $+-180$ C without valid justification and Vaal River will be used to dispose of any waste chemicals. Most of the Municipal water and electricity will be diverted into your plant to ensure smooth operations. You will provide coal and erect few boreholes for the community; besides, the community can use tree wood and water from the nearby river to supplement the shortage.

Sharpville Apartheid Memorial Site

$$ NOTE : THIS IS A CHEMICAL ENGINEERING PROBLEM IN CHEMICAL PROCESS DESIGN

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