12 June 2021
Department of Chemical Engineering
Faculty of Engineering & Petroleum
Hadhramout University
Costs of chemical process
Total Capital cost estimation
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Grassroots and Total Module Costs
• The term grassroots (Green field) refers to a completely new facility
(plant) in which we start the construction on essentially undeveloped
land (other means; grassroots cost is used for construction of a new
plant which includes site development costs).
• The term total module cost refers to the cost of making small-to-
moderate expansions or alterations to an existing facility (existing
plant).
• To estimate these costs, it is necessary to account for other costs in
addition to the direct and indirect costs.
• These additional costs were presented in Table 7.6 and can be divided
into two groups.
• Group 1: Contingency and Fee Costs: The contingency cost varies depending on
the reliability of the cost data and completeness of the process flowsheet
available. This factor is included in the evaluation of the cost as a protection
against oversights and faulty information.
o Values of 15% and 3% of the bare module cost are assumed for contingency
costs and fees, respectively.
o Adding these costs to the bare module cost provides the total module cost.
• Group 2: Auxiliary Facilities Costs: These include costs for site development,
auxiliary buildings, and off-sites and utilities.
o A review of costs for these auxiliary facilities by Miller gives a range of
approximately 20% to more than 100% of the bare module cost.
o These costs are assumed to be equal to 50% of the bare module costs for the
base case conditions.
o Adding these costs to the total module cost provides the grassroots cost.
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• The total module cost can be evaluated from:
• The grassroots cost can be evaluated from:
where n represents the total number of pieces of equipment.
Example 1
A small expansion to an existing chemical facility is being investigated, and a
preliminary process flow diagram (PFD) of the process is shown in Figure E7.14.
Figure E7.14 PFD
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The expansion involves the installation of a new distillation column
with a reboiler, condenser, pumps, and other associated
equipment. A list of the equipment, sizes, materials of construction,
and operating pressures is given in Table E7.14(a). Using the
information in Appendix A, calculate :
a) The total module cost (CTM) for this expansion in 2016.
b) Grassroots cost (CGR), if it is considered as new plant in 2016.
Table E7.14(a) Information on Equipment Required for the Plant Expansion
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Solution:
For heat exchanger (overhead condenser), E-101 :
At P = 5 barg, pressure factor (Fp) equation:
From Table A.2 , we got constants C1, C2 & C3 :
C1 = 0 , C 2 = 0 & C 3 = 0
Log Fp = 0 thus, Fp =1
Using data in Table A.3 .
for shell-and-tube heat exchangers with both shell and tubes made
of carbon steel (Identification Number = 1)
Then, using Figure A.18., we got: FM = 1
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From Equation (A.1),
From Table A.1, we get K1 , K2 & K3
K1 = 4.8306 , K2 = − 0.8509 and K3 = 0.3187
log = 4.8306 +(− 0.8509) log (170) + 0.3187 (log(170)) 2
= $33000
from Table A.4
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1.63 + 1.66 (1)(1) = 3.29
3.29
Bare module cost of shell-and-tube heat exchanger in 2001:
(33000) (3.29) = $108,570
o
$108,570
For non base conditions, the module cost :
$108,570
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For heat exchanger (reboiler), E-102 :
At P = 18 barg, pressure factor (Fp) equation:
From Table A.2 , we got constants C1, C2 & C3 :
C1 = 0.03881 , C2 = - 0.11272 & C3 = 0.08183
By substituting in eq.A.3 , it will become: log Fp = 0.02626 thus, Fp =1.062
Using data in Table A.3 for shell-and-tube heat exchangers with CS shell
and SS tubes
(Identification Number = 4).
Then, using Figure A.18., we got: FM = 1.81
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From Figure 7.4, at area =205 m2, we get :
/A =180 = 205 * 180 = 36900
= $36900
Table A.4
180
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1.63 + 1.66 (1.062)(1.81) = 4.82
4.82
Bare module cost of shell-and-tube heat exchanger in 2001:
(36900) (4.82) = $177,858
$177,858
For base conditions, the Bare module cost of shell-and-tube heat exchanger
in 2001: o
(36900) (3.29) = $121,401
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For heat exchanger (product cooler), E-103 :
At P = 5 barg, pressure factor (Fp) equation:
From Table A.2 , we got constants C1, C2 & C3 :
C1 = 0 , C 2 = 0 & C 3 = 0
Log Fp = 0 thus, Fp =1
Using data in Table A.3 for shell-and-tube heat exchangers with both shell
and tubes made of carbon steel (Identification Number = 1) .
Then, using Figure A.18., we got:
FM = 1
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From Equation (A.1),
From Table A.1, we get K1 , K2 & K3
K1 = 3.3444 , K2 = 0.2745 and K3 = - 0.0472
log = 3.3444 +(0.2745) log (10) - 0.0472 (log(10)) 2
= $3730
From Table A.4, the values for double pipe are B1 = 1.74 & B2 = 1.55
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1.74 + 1.55 (1)(1) = 3.29
3.29
Bare module cost of double pipe heat exchanger in 2001:
(3730) (3.29) = $12,272
o
$12,272
For nonbase conditions, the Bare module cost in 2001 :
$12,272
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For Reflux Pumps, P-101A/B:
At P = 5 barg, pressure factor (Fp) equation:
From Table A.2 , we got constants C1, C2 & C3 :
C1 = 0 , C 2 = 0 & C 3 = 0
log Fp = 0 thus, Fp =1
Using data in Table A.3 for pump, centrifugal with made of carbon steel
(Identification Number = 38) .
Then, using Figure A.18., we got:
FM = 1.55
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From Figure A.3, at power = 5 kW, we get :
/kW =650 = 650 * 5 = $3250
= $ 3250
, From Table A.4
B1 =1.89 & B2 =1.35
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1.89 + 1.35 (1)(1.55) = 3.98
3.98
Bare module cost of pump in 2001:
(3250) (3.98) = $12,935
$12,935 , For P-101A/B: = (2)* $12,935 = $ 25,870
For base condition, the bare module cost of pump in 2001:
o
(3250) (3.24) = $10,530
o
, For two pumps P-101A/B: = (2)* $10,530 = $ 21,060
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For the Tower and Trays, Aromatics column (T-101):
For the tower, Volume = πD2 L/4
= (3.14159)(2.1) 2 (23)/4 = 80 m3
From Equation (A.1),
From Table (A.1) , we get K1, K2 & K3
K1 = 3.4974 , K2 = 0.4485 & K3 = 0.1074
42
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80 80
= 4.74
$54,954
From Equation A.4 and Table A.4; we get :
Then; B1 = 2.25 & B2 = 1.82
Where; P = 5 barg , D=2.1 m , CA is the corrosion allowance (assumed to
be 0.00315 m), tmin is the minimum allowable vessel thickness (assumed
to be 0.0063 m). A value of S = 944 bar has been assumed for carbon steel.
A value of E = 0.9 is a weld efficiency (Typical values are from 1.0 to 0.6.)
( )∗ .
.
. . ∗( )
= = 1.68
.
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From Table A.3 , for carbon steel, identification number = 18
From Figure A.18, we get ; FM =1
= 2.25 + 1.82 (1.68)(1) = 5.30
For Bare module cost (in 2001) of a tower
= $54,954 * 5.30 = $291,256
For base conditions, bare module cost (in 2001) of a tower
o
= 2.25 + 1.82 (1)(1) = 4.07
o
= $54,954 * 4.07 = $223,663
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For bare module cost trays:
For the trays,
Tray (tower) area = πD2 /4 = (3.14159)(2.1)2/4 = 3.46 m2
From Equation (A.1),
From Table A.1 , we get K1, K2 & K3
K1 = 2.9949 , K2 = 0.4465 & K3 = 0.3961
3.46 3.46
3.35
2,238
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From Table A.5
32
From Table A.6
From Figure A.19, we get ;
01) 2,238 *(32) $131,057
For base conditions, bare module cost of trays:
o
01) = 2,238 *(32) (1) (1) = $71,616
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01) = $291, 256 + 131,057 = $422,313
For base conditions, bare module cost of tower with trays:
o
01) = $223,663 + $71,616 = $295,279
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For the vessel (Horizontal), Reflux drum (V-101):
For the vessel, Volume = πD2 L/4
= (3.14159)(1.8) 2 (6)/4 = 15.27 m3
From Equation (A.1),
From Table (A.1) , we get K1, K2 & K3
K1 = 3.5565 , K2 = 0.3776 & K3 = 0.0905
= 3.5565 + 0.3776 log (15.27 ) + 0.0905 (log(15.27 ))2
= 4.13
$13,490
58
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From Equation A.4 and Table A.4; we get :
Then; B1 = 1.49 & B2 = 1.52
Where; P = 5 barg , D=1.8 m , CA is the corrosion allowance (assumed to
be 0.00315 m), tmin is the minimum allowable vessel thickness (assumed
to be 0.0063 m). A value of S = 944 bar has been assumed for carbon steel.
A value of E = 0.9 is a weld efficiency (Typical values are from 1.0 to 0.6.)
( )∗ .
.
. . ∗( )
= = 1.51
.
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From Table A.3 , for carbon steel horizontal, identification number = 18
From Figure A.18, we get ; FM =1
= 1.49 + 1.52 (1.51)(1) = 3.785
For Bare module cost (in 2001) of a vessel horizontal
= $13,490* 3.785 = $51,060
For base condition, the bare module cost (in 2001) of a vessel horizontal
o
= $13,490* 3.01 = $40,605
62
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Table : Results of Capital Cost Estimate for Example 1
33,000 108,570 108,570
36,900 177,858
177,858 121,401
3,730 12,272 12,272
3,250 25,870 21,060
1.68 5.30 54,954 291, 256 223,663
2,238 131,057 71,616
1.51 3.785 13,490 51,060 40,605
216,940 797,943 599,187
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For 2016, we convert this bare module cost using this equation :
, From Table 7.4 at CEPCI, we get values:
I1 = 397 & I2 = 542
(2016) = $ 797,943 (542/397) = $1,089,383
o
(2016) = $ 599,187 (542/397) = $818,479
Update : Table 7.4 Values for the Chemical Engineering Plant Cost Index and the Marshall and Swift Equipment Cost Index from 1996
to 2021 (April)
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The substitutions from Table, we determine the total module cost and
the grassroots cost.
1)
= 1.18 * $1,089,383 = $1,285,472
2)
= $1,285,472 + 0.5 *$818,479 = $1,694,711
WS#5
A small expansion to an existing chemical
facility is being investigated, and a preliminary
process flow diagram (PFD) of the process is
shown in Figure 1.
A list of the equipment, sizes, materials of
.
construction, and operating pressures is given
in Table 1.
Using the information in Appendix A,
calculate the total module cost (CTM) for this
expansion in 2019
Figure 1: PFD
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Table 1 : Information on Equipment Required for the Plant Expansion
HW#5
New chemical facility is being investigated,
and a preliminary process flow diagram (PFD)
of the process is shown in Figure 1.
A list of the equipment, sizes, materials of
construction, and operating pressures is given
in Table 1.
Using the information in Appendix A,
calculate the grassroots cost (CGR) for this
process in 2021
Figure 1
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Table 1 : Information on Equipment Required for the Plant
36
