Hnsakfasndkfsa
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FROM METHANOL
A PROJECT REPORT
Submitted by
S. GAYATHRI (41501203005)
G. MUTHAMILARASI (41501203014)
MAY 2005
iii
BONAFIDE CERTIFICATE
iv
ACKNOWLEDGEMENT
Our heart felt thanks to the Director, Dr.T.P.Ganesan, and our Principal, Prof.
Department, Chemical engineering, who guided us in the right direction through the
Our special thanks to the members of the DTP section and library for their co-
operation
v
ABSTRACT
in polymeric resins like phenol formaldehyde, adhesives, alkali resins for paints and
methanol, mainly by metal oxide process involving Fe/Mo catalyst with 95-99mol%
vi
TABLE OF CONTENTS
LIST OF SYMBOLS ix
1 INTRODUCTION 1
2 PROPERTIES 3
2.1 PHYSICAL PROPERTIES 3
2.2 THERMAL PROPERTIES 3
2.3 CHEMICAL PROPERTIES 4
5 LITERATURE REVIEW 10
5.1 SELECTION OF PROCESS 11
6 PROCESS DESCRIPTION 12
6.1 FLOW SHEET 14
7 MATERIAL BALANCE 15
8 ENERGY BALANCE 19
9 DESIGN 23
10 PLANT LAYOUT 29
11 MATERIALS OF CONSTRUCTION 39
11.1 METALS 39
11.2 NON-METALS 40
vii
13 STORAGE AND TRANSPORTATION 46
15 COST ESTIMATION 49
16 CONCLUSION 56
REFERENCES 57
LIST OF TABLES
viii
LIST OF FIGURES
Page No
ix
LIST OF SYMBOLS
A Area (m2)
L Length (m)
m Mass (Kg)
Nu Nusselt number
n Number of tubes
P Pressure (atm)
Pr Prandtl number
Re Reynolds number
V Volume(m3)
T Temperature(K)
coefficient(W/ m2.oC)
Z Height (m)
GREEK LETTERS
µL Viscosity of liquid
ρ Density (Kg/m3)
x
1. INTRODUCTION
However, Formaldehyde does not cause any chronic damage to human health.
Formaldehyde is also formed when organic material is incompletely combusted.
Formaldehyde is an important industrial chemical and is employed in the manufacture
of many industrial products and consumer articles.
11
2. PROPERTIES
Decomposition
At 150oC formaldehyde undergoes heterogeneous decomposition to form
methanol and CO2 mainly. Above 350oC it tends to decompose in to CO and H2.
12
Polymerization
Gaseous formaldehyde polymerizes slowly at temperatures below 100 oC,
polymerization accelerated by traces of polar impurities such as acids, alkalis or
water. In water solution formaldehyde hydrates to methylene glycol
H2C=O + H2O HO C OH
2HCHO HCOOCH3
Addition reactions
The formation of sparingly water-soluble formaldehyde bisulphite is an
important addition reaction. Hydrocyanic acid reacts with formaldehyde to give
glyconitrile.
13
2 HCHO + HC CH HOCH2CCH2OH
Condensation reactions
Important condensation reactions are the reaction of formaldehyde with amino
groups to give schiff’s bases, as well as the Mannich reaction.
Resin formation
Formaldehyde condenses with urea, melamine, urethanes, cyanamide,
aromatic sulfonamides and amines, and phenols to give wide range of resins.
14
3. ANALYSIS AND SPECIFICATIONS
Qualitative Methods:
Qualitative detection of formaldehyde is primarily by colorimetric methods.
Schiff’s fuchsin-bisulfite reagent is the general reagent used for detecting aldehydes.
In the presence of strong acids, it reacts with formaldehyde to form a specific bluish
violet dye.
Quantitative Methods:
Physical Methods: Quantitative determination of pure aqueous solutions of
formaldehyde can be carried out rapidly by measuring their specific gravity. Gas
chromatography and high-pressure liquid chromatography can also be used for direct
determination.
Chemical Methods:
The most important chemical method for determining formaldehyde is the
sodium sulfite method. It is based on the quantitative liberation of sodium hydroxide
when formaldehyde reacts with excess sodium sulfite.
CH2O + Na2SO3 + H2O HOCH2SO3Na + NaOH
The stoichiometrically formed sodium hydroxide is determined by titration
with an acid.
Formaldehyde in air can be determined with the aid of gas sampling apparatus.
In this procedure formaldehyde is absorbed from a definite volume of air by a wash
liquid and is determined quantitatively by a suitable method like pararosanline
method.
Formaldehyde is sold in aqueous solutions with concentrations ranging from
25 – 56 wt% HCHO. Formaldehyde is sold as low methanol (uninhibited) and high
methanol (inhibited) grades. Formaldehyde solutions contain 0.5-12 wt% methanol or
other added stabilizers. They have a pH of 2.5 –3.5,the acid reaction being due to the
presence of formic acid.
4. COMMERCIAL USES OF FORMALDEHYDE
15
plywood. They are also used for compression molded plastic parts, as wet-strength
additives for paper treating, and as bonders for glass fiber roofing materials.
16
5. LITERATURE SURVEY
CH3OH HCHO + H2
HCHO + ½ O2 CO + H2O
The reactions occur over a mixed oxide catalyst containing molybdenum oxide
and iron oxide in a ratio 1.5 to 3.The reaction is carried out at 250 –350 oC and
essentially at atmospheric pressure. Methanol conversion is 95 – 98% per pass.
17
6. PROCESS DESCRIPTION
Metal oxide process: Vaporized methanol is mixed with air and optionally recycled
tail gas is passed through catalyst filled tubes in a heat exchanger reactor. The
following reactions take place in the reactor.
The absorber can be either of packed or tray type. It is necessary to remove the
heat of solution plus the residual sensible heat of the feed gases, and this is done by
circulating down flow liquid through external heat exchangers and in some cases by
the use of cooling coils. The bottom stream from the absorber represents the final
product. Formaldehyde concentration in the product is adjusted by controlling the
amount of water added to the top of the absorber. Formic acid is removed by ion
exchange. A large portion of the absorber overhead gas is recycled back to the feed
system. The methanol conversion ranges from 95-99mol% and depends on the
selectivity, activity and spot temperature of the catalyst, the later being influenced by
the heat transfer rate. The overall plant yield of formaldehyde is 88-95 mol%.
18
The final product contains up to 55wt% formaldehyde and 0.5-1.5 wt%
methanol.
PURGE GAS
RECYCLE GAS
WATER
St
2
A CW
B
BFW
S
R
O
E R
A B
BLOWER C
1 T E
` St O R
AIR R
CW
St
3
F
O
R
M
A
L
I
BFW N
METHANOL
1. METHANOL VAPORIZER
2. HEAT EXCHANGER 1
3. HEAT EXCHANGER 2
DEIONISER
19
FIG 6.1 FLOW SHEET
7. MATERIAL BALANCE
= 3104 kg
HCHO + ½ O2 CO + H2O
Assume that 57% of oxygen requirement comes from recycle stream and 43% comes
from fresh feed.
O2 - 7.78%
20
N2 - 88.3%
H2O - 3.89%
Reactor outlet:
O2= 3314.82 kg
N2 = 32925.48 kg
H20 = 932.31 kg
CH3OH = 64 kg
O2=4153.92 kg
N2=41157.20kg
H20 = 2783.4 kg
Methanol =3200kg REACTOR
HCHO=2764.5 kg
CO=135.8 kg
HCOOH=46 kg
Air
O2=2500.71kg
N2 =8231.50 kg
FIG 7.1
21
ABSORBER
M= (Lms) min
Gms
Yb = 5/95 = 0.0526
Ya = 3.14 X10–4
Xa = 0
Xb =0.7758
22
RECYCLE STREAM
H20=1165.39 kg
O2=4153.92 kg
FROM REACTOR N2=41156.64 kg
CH3OH = 64 kg PRODUCT
O2=4153.92 kg STREAM
N2=41157.20kg HCHO=2764.5 kg
H20 = 2783.4 kg H20=4593.02 kg
HCHO=2764.5 kg
ABSORBER
CH3OH=64 kg
CO =135.8 kg
HCOOH=46 kg
HCOOH=46 kg
SOLVENT
H20=2838.78 kg
DATA TABLE 1:
1) Methanol vaporizer
23
FRESH AIR
O2: 2500 Kg
N2: 8231.5Kg
(400 oC)
SUPERHEATED
STEAM
FIG 8.1
∆H = 13.8687x106 KJ
∆H (reactor) = m Cp∆T(cooling oil)
13.8687x106 = m x 1.75x 110
Oil required m = 72045.058 Kg
24
3) Heat exchanger 1:
FIG 8.3
mCp ∆T(cooling oil) = mCP ∆T(H20) + m (steam)
Reactor outlet
(285 oC) (110 oC)
FIG 8.4
mCp ∆T(products) = m Cp∆T(H20) + m (steam)
6
9.1815x10 = m x 1.88 x 75 + m x 2255
Water required m = 3405.60 Kg
5)Absorber:
Bottom: Water (50 oC)
Products (gases) H20 (liquid)
(110 oC) (110 oC)
25
Products (gases) Products (gases)
(110 oC) (30 oC)
Water(25 oC)
FIG. 8.6
mCp∆T(cooling H20) = mCp∆T (product gases)
m x 1.88 x 25 = mCp (110-30)
Cooling water required m = 81457.60 Kg
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9. DESIGN
HEAT EXCHANGER 1
m = AV
V = m /A = (72045.05 /3600)
x (0.0157/2)2 x 864.9939
= 119.56 m/s
Nu = 0.023 x (120262.0154) (1.9989)
= 5504.1158
hi = 44.87 kW/ m2 oC
27
1
Uo =
(1/1.7021) + (1.216/44.87)
Uo = 1.6270 kW/ m2 oC
Assume L = 2.7432 m
1.6270 x 3.14 x 0.0191x111 x 2.7432 x n = 3852.409
n = 147 tubes
HEAT EXCHANGER 2
U0A0 ∆TL = (m CP∆T) PRODUCTS
m = AV
V = m / A = (51105.03/3600)
x (0.0157/2)2 x 900
= 81.517m/s
28
Nu = 0.023 x (138695.051) (0.6795)
= 21676.058
hi = 181.714 kW/ m2 oC
Assume ho = 1.7201 kW/ m2 oC
1
Uo = (1/1.7021) + (1.216/181.714)
Uo = 1.682kW/ m2 oC
Assume L = 3.048 m
1.682 x 3.14 x 0.0191x128.5842 x 3.048x n = 2550.4324
n = 65 tubes
REACTOR DESIGN
Specification: Packed multiple tubular reactor
Assumption:
Shell diameter of each reactor =39”
= 0.99 m
Tube specifications: 1 1/2" BWG (No 16)
Space velocity for 307 tubes = 1535 m3 of gas charged to the reactor
29
hr- m3 of catalyst
ABSORBER DESIGN
Hoy = Gms / Kya ; where Gms = mass flow rate of gases (Kg/s)
K ya = overall mass transfer coefficient based on
gas phase (Kmol/m3 s )
Calculation of Noy:
ya = 3.13 x 10 –4 xa = 0
yb = 0.0499 xb = 0.4368
30
Kya = 0.4 Kmol/m3s (assumption)
Gms (ya-yb) =1.32 Lms (xb-xa ) (x,y are mole fractions of HCHO in
liquid and gas phase resp)
xb = 0.5877
yb * = 0.067 xb * (equilibrium data)
yb * = 0.039
Calculation of Hoy:
Gms = 2764.50 Kg/hr = 0.7679 Kg/ s
Gas density at 110oC = 0.90 Kg/m3
Liquid density = 1000 Kg/m3
Viscosity = 0.0009 Kg/ms
K4 = 0.9; FP = 1 0.5
Mass flow rate per unit area V = K4 v (l - v )
(Kg/m2s ) 13.1 FP ( l /l )0.1
Substituting the values,
V = 1.4616 Kg/m 2s
Column area = Gms/V =0.5252 m2
Column diameter =(0.5252 x 4/∏)0.5 = 0.8179 m
Z= 3.33m
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10. PLANT LAYOUT
INTRODUCTION
The economic construction and efficient operation of a process unit will
depend upon how well the plant and equipment specified on the process flowsheet is
laid out and on the profitability of the project with its scope for future expansion.
Plant location and site selection should be made before the plant layout.
1. Marketing area
For materials that are produced in bulk quantities, such as cement, mineral
acids, and fertilizers where the cost of product per tone is relatively low and the cost
of transport a significant fraction of the sales price, the plant should be located close
to the primary product. This consideration will be less important for low volume
production, high-priced products, such as pharmaceutical.
2. Raw materials
The availability and price of suitable raw materials will often determine the
site location. Plants producing bulk chemicals are best located close to the source of
32
major raw material, where this is also close to the marketing area. For the production
of formaldehyde the site should be preferably near a methanol plant.
3. Transport
Transport of raw materials and products is an important factor to be
considered. Transport of products can be in any of the four modes of transport.
4. Availability of labour
Labour will be needed for construction of the plant and its operation. Skilled
construction workers will usually be brought in from outside the site area, but there
should be an adequate pool of unskilled labours available locally; and labour suitable
for training to operate the plant. Skilled tradesman will be needed for plant
maintenance. Local trade union customs and restrictive practices will have to be
considered when assessing the availability and suitability of the local labour for
recruitment and training.
7. Land
Sufficient suitable land must be available for the proposed plant and for future
expansion. The land should ideally be flat, well drained and have suitable load-
bearing characteristics full site evaluation should be made to determine the need for
piling or other special foundations.
8. Climate
33
Adverse climatic conditions, at a site will increase costs. Abnormally low
temperatures will require the provision of additional insulation and special heating for
equipment and pipe runs.
After considering the location of the site the plant layout is completed. It
involves placing of equipment so that the following are minimized:
1. Damage to persons and property in case of fire explosion or toxic release
2. Maintenance costs
3. Number of people required to operate the plant.
4. Construction costs
5. Cost of planned expansion.
In plant layout first thing that should be done is to determine the direction of the
prevailing wind. Wind direction will decide the location of the plant.
List of items that should be placed upwind and downwind of the plant is given down.
34
Items that should be located downwind of the plant
Blowdown tanks
Settling tanks
Burning flares
1. Processing area
Processing area also known as plant area is the main part of the plant where
the actual production takes place. There are two ways of laying out the processing
area
1.) Grouped layout
2.) Flowline layout
Grouped layout
Grouped layout places all similar pieces of equipment adjacent. This provides
for ease of operation and switching from one unit to another. This is suitable for all
plants.
35
Flowline layout
Flowline layout uses the line system, which locates all the equipment in the
order in which it occurs on the flowsheet. This minimizes the length of transfer lines
and therefore reduces the energy needed to transport materials. This is used mainly for
small volume products.
2. Storage house
The main stage areas should be placed between the loading and unloading
facilities and the process they serve. The amount of space required for storage is
determined from how much is to be stored in what containers. In raw material storage,
liquids are stored in small containers or in a pile on the ground. Automatic storage and
retrieving equipment can be substantially cut down storage
3. Laboratories
Quality control laboratories are a necessary part of any plant and must be
included in all cost estimates. Adequate space must be provided in them for
performing all tests, and for clearing and storing laboratory sampling and testing
containers.
4. Transport
The transport of materials and products to and from the plant will be an
overriding consideration in site selection. If practicable, a site should be selected that
is close to at least two major forms of transport: road, rail, waterway or a seaport.
Rail transport will be cheaper for long distance transport of bulk chemicals.
Road transport is being increasingly used and is suitable for local distribution. Road
area also used for fire fighting equipment and other emergency vehicles and for
maintenance equipment. This means that there should be a road around the perimeter
of the site. No roads should be a dead end. All major traffic should be kept away form
the processing areas. It is wise to locate all loading and unloading facilities ,as well as
plant offices, personnel facilities near the main road to minimize traffic congestion
within the plant and to reduce danger.
5. Utilities
36
The word “Utilities” is now generally used for ancillary services needed in the
operation of any production process. These services will normally be supplied from a
central site facility and will include:
Electricity
Steam for process heating
Cooling water
Water for general use
Inert gas supplies
Electricity
Electrical power will be needed at all the sites. Electrochemical processes that
require large quantities of power need to be located close to a cheap source of power.
Transformers will be used to step down the supply voltage to the voltages used on the
purpose.
Cooling water
Chemical processes invariably require large quantities of water for cooling. The
cooling water required can be taken from a river or lake or from the sea.
Offices
The location of this building should be arranged so as to minimize the time
spent by personnel in travelling between buildings. Administration offices in which a
37
relatively large number of people working should be located well from potentially
hazardous process.
Canteen
Canteen should be spacious and large enough for the workers with good and hygienic
food.
Fire station
Fire station should be located adjacent to the plant area, so that in case of fire or
emergency, the service can be put into action
Medical facilities
Medical facilities should be provided with at least basic facilities giving first aid
to the injured workers. Provision must be made for the environmentally acceptable
disposal of effluent.
38
EXTENSION AREA
RAW
MATERIAL PROCESSING
STORAGE AREA C W
A
C O
W
N
A O
R
N
T R
K
T K
E S
S
SAFETY HEALTH E
E H
H
DEPT CENTER E
N O
O
P
ADMINISTRATIVE
OFFICE
FINISHED
PRODUCT
STORAGE SECURITY
OFFICE
MAIN ROAD
39
11. MATERIALS OF CONSTRUCTION
11.1 Metals
Pure metals and metallic alloys are included under this classification. Some
commonly used metals are discussed in the following section.
Although many materials have greater corrosion resistance than iron and steel,
cost aspects favor the use of iron and steel. As a result, they are often used as
materials of construction when it is known that some corrosion will occur.
In general, cast iron and carbon steel exhibit about the same corrosion
resistance. They are not suitable with dilute acids, but can be used with strong acids,
since a protective coating composed of corrosion products forms on the metal surface.
Carbon steel plates for reactor vessels are a good example. This application
generally requires a minimum level of mechanical properties, weldability, formability,
and toughness as well as some assurance that these properties will be uniform
throughout.
Stainless steel
There are more than 100 different types of stainless steels. These materials are
high chromium or high nickel-chromium alloys of iron containing small amounts of
other essential constituents. They have excellent corrosion-resistance and heat
resistance properties.
Aluminum
40
The lightness and relative ease of fabrication of aluminum and its alloys are
factors favoring the use of these materials. Aluminum resists attack by acids because a
surface film of inert hydrated by aluminum oxide is formed. This film adheres to the
surface and offers good protection unless materials, which can remove the oxide, such
as halogen acids or alkalis, are present.
11.2 Non-metals
Plastics
Epoxies reinforced with fiberglass have very high strengths and resistance to
heat. Chemical resistance of the epoxy resin is excellent in non-oxidizing and weak
acids not good against strong acids.
Objectives
41
To keep the process variables within known safe operating limits.
To detect dangerous situations as they develop and to provide alarms and automatic
shut down systems.
2) Production rate:
3) Product quality:
4) Cost:
To operate at the lowest production cost, commensurate with the other objectives.
Guide rules:
The following procedure can be used when drawing up preliminary piping and
instrumentation diagrams.
1. Identify and draw in those control loops that are obviously needed for steady
plant operation, such as:
Level controls
Flow controls
Pressure controls
Temperature controls
2. Identify the key process variables that need to be controlled to achieve the
specified product quality. Include control loops using direct measurement of
the controlled variable, where possible, if not practicable, select a suitable
dependent variable.
3. Identify and include those additional control loops required for safe operation,
not already covered in steps 1 & 2
42
4. Decide & show those ancillary instruments needed for monitoring of the plant
operation by the operators; and for trouble-shooting and plant development. it
is well worthwhile including additional connections for instruments, which
may be needed for future troubleshooting and development ,even if the
instruments are not installed permanently. This would include extra thermo
wells, pressure tapings, orifice flanges, and extra sample points.
6. Decide on the need for recorders and the location of the readout points, local
or control room. This step would be done in conjunction with step 1 to 4
7. Decide on the alarms and interlocks need, this would be done in conjunction
with step 3.
Level control
In any equipment where an interface exists between two phases some means
of maintaining the interface at the required level must be provided. This may be
incorporated in the design of the equipment. The control valve should be placed on
the discharge line from the pump.
Pressure control
Pressure control will be necessary for most systems handling vapor or gas.
The method of control will depend on the nature of process.
Flow control
Heat Exchangers
Here, the temperature can be controlled by varying the flow of the cooling or
heating medium. If the exchange is between two process streams whose flows are
fixed, by-pass control will have to be used.
43
Cascade control
With this arrangement, the output of one controller is used to adjust the set
point of another. Cascade control a give smoother control in situations where direct
control of variable would lead to unstable operation. The “slave” controller can be
used to compensate for any short-term variations in, say, a service stream flow, which
would upset the controlled variable, the primary controller and long term variations.
Reactor control
The schemes used for reactor control depend on the process and type of
reactor. If a reliable on-line analyzer is available and the reactor dynamics are
suitable, the product composition can be monitored continuously and the reactor
conditions and feed flows controlled automatically to maintain the desired product
composition and yield. More often, the operation is the final link in the control loop,
adjusting the controller set points to maintain the product within specification, based
on periodic laboratory analyzer.
44
13. STORAGE AND TRANSPORTATION
Formaldehyde causes eye, upper respiratory tract, and skin irritation and is
skin sensitizer. Although sensory irritation, e.g., eye irritation, has been reported at
concentrations as low as 0.1 ppm in uncontrolled studies, significant eye/nose/throat
45
irritation does not generally occur until concentrations of 1 ppm, based on controlled
human chamber studies.
46
15. COST ESTIMATION
47
DIRECT COST FACTOR (Table 5)
S.No Items Direct Cost Factor
1 Delivered cost of major equipments 100
2 Equipment installations 15
3 Insulation 15
4 Instrumentation 15
5 Piping 75
6 Land and building 30
7 Foundation 10
8 Electrical 15
9 Clean up 5
Total direct cost factor 280
Indirect plant cost = (Direct plant cost) x (Total indirect cost factor)/100
= (1400 x 56)/100
= 784 lakhs
48
B.THE CAPITAL INVESTMENT IN THE AUXILLARY SERVICES,IA
Such items like steam generators, fuel stations and fire protection facilities are
commonly stationed outside the process area and serve the system under
consideration.
Table 7:
S.No Items Auxillary Service Cost Factor
1 Auxiliary buildings 5
2 Water supply 2
3 Electric main substation 1.5
4 Process waste system 1
5 Raw material storage 1
6 Fire protection system 0.7
7 Roads 0.5
8 Sanitary and waste disposal 0.2
9 Communication 0.2
10 Yard and fence lighting 0.2
Total 12.3
49
C.T HE CAPITAL INVESTMENT AS WORKING CAPITAL, IW
This is the capital invested in the form of cash to meet day-to-day operational
expenses, inventories of raw materials and products. The working capital may be
assumed as 15% of the total capital investment made in the plant (I)
Capital investment as working capital, IW = ((2184 + 268.632) X 15) /85
= 432.817 lakhs
Total capital investment, I = IF+ IA + IW
= 2184 + 268.632 + 432.817
= 2885.449 lakhs
ESTIMATION OF MANUFACTURING COST
The manufacturing cost may be divided into three items, as follows
A. Cost proportional to total investment
B. Cost proportional to production rate
C. Cost proportional to labour requirement
A. COST PROPORTIONAL TO TOTAL INVESTMENT
This includes the factors, which are independent of production rate and
proportional to the fixed investment such as
- Maintenance- labour and material
- Property taxes
- Insurance
- Safety expenses
- Protection, security and first aid
- General services, laboratory, roads, etc.
- Administrative services
For all this purpose we shall charge 15% of the installed cost of the plant
=( Installed cost x 0.15)
= 2452.632 x 0.15
= 367.894 lakhs
B. COST PROPORTIONAL TO PRODUCTION RATE
The factors proportional to production rate are
- Raw material costs
- Utilities cost-power, fuel, water, steam, etc.
- Maintenance cost
- Chemical,warehouse,shipping expenses
50
Assuming that the cost proportional to production rate is nearly 60% of total capital
investment,
Cost proportional to production rate = (Total capital investment x 0.6)
= 2885.449 x 0.6
= 1732.269 lakhs
C. COST PROPORTIONAL TO LABOUR REQUIREMENT
The cost proportional to labour requirement might amount 10% of total
manufacturing cost.
Cost proportional to labour requirement = (367.894 + 1731.269) x
(0.1)/(0.9)
= 233.240 lakhs
Therefore, manufacturing cost = (364.894 + 1731.269 + 233.240)
= 2332.403 lakhs
PROFITABILITY ANALYSIS
A.DEPRICIATION
According to sinking fund method: R= (V- VS) I/ (1+I)n
R = Uniform annual payments made at the end of each year
V = Installed cost of the plant
VS = Salvage value
N = Life period (assumed to be 15 years)
I = Annual interest rate (taken as 15%)
R = (2452.632 x 0.15) / ((1+ 0.15)15 -1)
= 51.547 lakhs
B.GROSS PROFIT
Gross profit = Total sales income – Manufacturing cost
= 3179.52 – 2332.40
= 847.117 lakhs
51
C.NET PROFIT
It is defined as the annual return on the investment made after deducting
depreciation and taxes. Tax rate is assumed to be 40%
Net profit = Gross profit – Depreciation – (Gross profit x Tax rate)
= 847.117- 51.547-(847.117x 0.4)
= 456.723 lakhs
16. CONCLUSION
The metal oxide process was selected for the manufacture of formaldehyde.
From mass balance and energy balance, the various equipments were designed
and cost estimation was made. The payout period was found to be 5 years. Hence the
project is feasible .
52
REFERENCES
53
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