Chapter Five Cost Estimation

Chapter Five

Cost Estimation

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Chapter Five Cost Estimation

5.1. Equipment Cost:

5.1.1 Storage Tanks for water Cost

type = vertical tank

Capacity (s) = 50 𝑚3
from Table (5.3): Cost equipment . cost basis mid 2004
C= Constant =2400 $
index = 0.6
𝐶𝑒= c * 𝑠𝑛 = 2400 * 500.6= 25095.34$

Cost index in year 2000=100 from Appendix (B)

Cost index in year 2004=111 from Appendix (B)
111−100
The average increase in cost= =2.75
4

The cost index in 2025= 20 * 2.75 +111=168.75

𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2025

Cost in 2025 = cost in 2004 *
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2004

168.75
Cost in year 2025 = 25095.34* =38151.71$
111

For 3 storage tank = 3 * 38151.71

= 114455$

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Chapter Five Cost Estimation

5.1.2 Storage Tanks for MEA Cost

type = Cone roof

Capacity (s) = 50 𝑚3
from Table (3.3 Appendix(B)): Cost equipment . cost basis mid 2004
C= Constant =2300 $
index = 0.55
𝐶𝑒= c * 𝑠𝑛 = 2300 * 500.55= 19777.04$

Cost index in year 2000=100 from Appendix (B)

Cost index in year 2004=111 from Appendix (B)
111−100
The average increase in cost= =2.75
4

The cost index in 2025= 20 * 2.75 +111=168.75

𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2025

Cost in 2025 = cost in 2004 *
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2004

168.75
Cost in year 2025 = 19777.04* =30066.45$
111

For 3 storage tank = 3 * 30066.45

= 90199.34$

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Chapter Five Cost Estimation

5.1.3 Mixer Cost

Capacity (s) = 8 m3
from Table (3.3 Appendix(B)): Cost equipment . cost basis mid 2004
C= Constant =31000 $
index = 0.35
𝐶𝑒= c * 𝑠𝑛 = 31000 * 80.35 = 64186.42$

Cost index in year 2000=100 from Appendix (B)

Cost index in year 2004=111 from Appendix (B)
111−100
The average increase in cost= =2.75
4

The cost index in 2025= 20 * 2.75 +111=168.75

𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2025

Cost in 2025 = cost in 2004 *
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2004

168.75
Cost in year 2025 = 164186.42* =97580.7 $
111

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Chapter Five Cost Estimation

5.1.4 Cost of Regenration column :

Vessel cost
Material of construction =stainless steel
Height of column=7.5 m
Diameter of column =4.823 m
Operation pressure =1.0875 atm

From figure (3.5 Appendix (B))

Bare cost of the vessel =50000$
Material factor=2 pressure factor=1
Purchase cost =bare cost × type factor × 𝑝𝑒𝑠𝑠𝑢𝑟𝑒 𝑓𝑎𝑐𝑡𝑜𝑟
Purchase cost=1×2×50000=100000$

Cost index in year 2000=100 from Appendix (B)

Cost index in year 2004=111 from Appendix (B)
111−100
The average increase in cost= =2.75
4

The cost index in 2025= 20 * 2.75 +111=168.75

𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2025

Cost in 2025 = cost in 2004 *
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2004

168.75
Cost in year 2025 = 100000* =152027 $
111

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Chapter Five Cost Estimation

Plate cost
Plate diameter =4.823
Number of plates =10
Material construction=stainless steel
Plate type =sieve stage
From figure (3.7 Appendix B)
Bare cost=800$
Total cost of stage=800×10=8000$

Cost index in year 2000=100 from Appendix (B)

Cost index in year 2004=111 from Appendix (B)
111−100
The average increase in cost= =2.75
4

The cost index in 2025= 20 * 2.75 +111=168.75

𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2025

Cost in 2025 = cost in 2004 *
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2004

168.75
Cost in year 2025 = 8000* =12162.16 $
111

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Chapter Five Cost Estimation

5.1.5 Cost Of Absorption Column :

Material of construction = carbon steel
Column height = 6 m
Column diameter = 1.5 m
From appendix B figure (3.5)
Vessel cost in 2004 = 10000 $ pressure factor 1-5 bar =1
Material factor( c.s) = 1
Equipment cost in 2004= 10500
Packing height =5.01 m
Packing material = pall rings
From appendix B table (B-4)
Cost of packing material =1360 $/𝑚3
𝜋∗𝐷2
Volume of packing = ∗ 𝑃𝑎𝑐𝑐𝑘𝑖𝑛𝑔 ℎ𝑒𝑖𝑔ℎ𝑡 = 2.178 𝑚3
4

Total cost of packing = 𝑣𝑜𝑙𝑢𝑚𝑒 * 1360 $/𝑚3

=2.178 𝑚3 * 1360 $/𝑚3 =2962.0 $
Total cost in 2004 = cost of packing + cost of vessel
=10000 + 2962.0 =12962 $
Cost index in 2004 = 111
Cost index in 2025 = 168.75
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2025
Cost in 2025 = cost in 2004 *
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2004
168.75
Cost in 2025 = 12962* = 19705 $
111

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Chapter Five Cost Estimation

5.1.6 Cost Of Heat exchangers :

A = 15 m2
type =floating head
from fig(B-2 heat exchanger) time base mid 2004:
Bare cost of heat exchanger = 16000 $
purchased cost= (bare cost from figure ) * Type factor * pressure factor
purchased cost=16000 * 1* 1.1 = 17600 $

Cost index in 2004 = 111

Cost index in 2025 = 168.75
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2025
Cost in 2025 = cost in 2004 *
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2004
168.75
Cost in 2025 = 17600* = 26756 $
111

-For two heat exchangers with similar heat transfer areas :

Total exchangers cost = 2*26756 $ = 53513 $

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Chapter Five Cost Estimation

5.1.7 Flash Distillation Column Cost:

Material of construction=stainless steel
Height of column=6m
diameter of column=0.5m
Pressure factor=1
material factor=2
From figure (B.2)
cost of vessel=9000$
Purchased cost 2004=9000×2×1=18000$
Cost index in 2004 = 111
Cost index in 2025 = 168.75
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2025
Cost in 2025 = cost in 2004 *
𝑐𝑜𝑠𝑡 𝑖𝑛𝑑𝑒𝑥 𝑖𝑛 2004
168.75
Cost in 2025 = 18000* = 27364 $
111

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Chapter Five Cost Estimation

Table (5.1) Cost Of Equipments

Equipment No Of Equipment Total Cost($)

Storage tank 6 204654

Heat exchanger 2 53513

Mixer 1 97580

Flash Column 1 27364

Absorption Column 1 19705

Distillation Column 1 12162

Total 414978 $

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Chapter Five Cost Estimation

5.2 Direct Cost:

from table (5.4 ): Cost of direct and indirect
Direct cost = 3.6 * Equipment's cost
=3.6 + 414978
= 1493920 $

5.3 Indirect Cost :

from table(5.4) :
Cost of direct and indirect = 1.44 * Equipment's a cost
=1.44 *414978
= 597568 $

5.4 fixed Capital Investment (FCI):

FCl = Direct cost + indirect cast
= 1493920+ 597568= =2091488 $

5.5 work Capital Investment (WCI):

WCI =15 % FCI
= 0.15 *2091488$
=313723 $

5.6 total Capital investment:

total Capital investment = FCI + WCI
=2091488+313723 =2405211 $

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Chapter Five Cost Estimation

5.7 Raw Material Cost

MEA
Flow rate = 58168 Kg/h
= 50257800 Kg/ Year
From table () Cost = 1.54 $/ Kg
Total Cost =88363213 * 1 = 77397012 $ / year
Water
flow rate =68664 kg / h
=50325696 Kg /Year
from table ()
Cost =0.01 $/ Kg
Total Cost =50325696* 0.01 =593256 $ /Year

5.8 Utilities
water (for heat transfer equipment) Flow rate = 109.643 kg /h
=8683.72 ton / year
From table () cost = 0. 01 $ / ton
total cost =8683.72 * 0.01
= 86.8372 $ / year

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Chapter Five Cost Estimation

5.9 operating Labor

Assume Process Plant requires approximately 100 employees
Assume the one employee monthly wage is =1500$
operating Cost of Labor = 100 *1500 *12 =1800000 $ / year
5.10 Direct production cost
Variable Cost
From table ()
Variable Cost = Raw material + Utilities + Miscellanceous Material
=77990268 +86.8372 +183044
=78173398.84 $
Fixed Cost
Table (5.2) Summary of Fixed Cost
Function Cost in $

Maintenance=5% fixed Capital 104574.4

operating Labor 1800000
Laboratory cost = 20% operating Labor 360000
Supervision =20% operating Labor 360000
Plant overheads = 50% operating Labor 900000
Capital Charges =10% fixed capital 209148.8
Insurance =l% fixed Capital 20914.88
local Taxes =2% fixed Capital 41829.76
Royalties =1 % fixed capital 20914.88
total 3817382.72

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Chapter Five Cost Estimation

5.11 Direct Production cost:

Direct Production cost = Variable cost+ fixed Cost
=78173398.84 +3817382.72
=81990781.56 $ / Year

5.12 Research and development cost:

Research and development cost = 20% Direct production cost
=0.2 * 81990781.56= 16398156.31 $ /year

5.13 Annual production cost:

Annual production cost = Direct production Cost + Research and
development cost
= 81990781.56 + 16398156.31
= 98388937.87 $ / Year

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