Mini Project (1)

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MINI PROJECT PLANT DESIGN & ECONOMICS (CPE 604) (PRODUCTION OF FORMALIN) NAME ID NO IZZAT SYAZWAN BIN ABDUL RAHMAN 2013873332 MOHD SYAMIL HIDAYAT BIN HASSIM 2013280436 MOHAMED HIZAM BIN MOHAMED NOOR 2013805264 HAMDAN BIN AZMAN 2013659008 ADZHAM EZZAQ BIN ROSLAN 2013210046 MUHAMMAD ASRAF BIN MAT PAUZI 2013895434 AMERUL NAIM BIN ABDULAH 2013837186 MUHAMMAD REZZA BIIN JAYADI 2013467628 MUHAMMAD FAWWAZ BIN RAIDI 2013801798 SUBMITTED TO: DATE SUBMITTED: DR JAGANNATHAN !RISHNAN "# TH DECEMBER $O"4

Transcript of Mini Project (1)

MINI PROJECTPLANT DESIGN & ECONOMICS (CPE 604) (PRODUCTION OF FORMALIN)NAMEID NO

IZZAT SYAZWAN BIN ABDUL RAHMAN2013873332

MOHD SYAMIL HIDAYAT BIN HASSIM2013280436

MOHAMED HIZAM BIN MOHAMED NOOR2013805264

HAMDAN BIN AZMAN2013659008

ADZHAM EZZAQ BIN ROSLAN2013210046

MUHAMMAD ASRAF BIN MAT PAUZI2013895434

AMERUL NAIM BIN ABDULAH2013837186

MUHAMMAD REZZA BIIN JAYADI2013467628

MUHAMMAD FAWWAZ BIN RAIDI2013801798

SUBMITTED TO:DATE SUBMITTED:DR. JAGANNATHAN KRISHNAN18TH DECEMBER 2O14

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CONTENT1.0 INTRODUCTION......................................................................................................... 11.1 Background Literature.................................................................................. 11.2 History........................................................................................................... 21.3 Property of Formaldehyde......................................................................... 3-51.4 Applications............................................................................................... 6-71.5 Selection of the production of Formaldehyde.......................................... 8-91.6 Health and Safety.................................................................................. 10-11

2.0 PROCESS DESCRIPTION.......................................................................................... 122.1 Process Flow Diagram(PFD).......................................................................12-142.2 Process Description................................................................................... 152.3 Stream Summary.................................................................................. 16-19

3.0 EQUIPMENT SIZING............................................................................................... 203.1 Pump......................................................................................................... 20-213.2 Absorber................................................................................................... 21-223.3 Compressor.............................................................................................. 22-233.4 Distillation Column............................................................................. 23-243.5 Reactor................................................................................................ 25-263.6 Heater E-1................................................................................................ 26-273.7 Heater E-2................................................................................................ 27-283.8 Cooler E-4................................................................................................ 283.9 Cooler E-3........................................................................................... 28-30

4.0 ECONOMIC ANALYSIS.......................................................................................... 314.1 Estimation of Capital......................................................................... 32-354.2 Estimation of Cost of Manufacturing................................................. 36-414.3 Engineering Economic Analysis.......................................................... 42-474.4 Profitability Analysis........................................................................... 48-50

5.0 PINCH ANALYSIS............................................................................................ 51-59

6.0 ENVIRONMENTAL CONSIDERATION................................................................. 606.1 Methanol................................................................................................ 616.2 Formalin.............................................................................................. 61-64

7.0 PLANT LAYOUT................................................................................................ 657.1 Plant Site Suggested................................................................................ 67-707.2 Map of Site Location............................................................................... 71-727.3 Site Layout........................................................................................... 73-757.4 Plant Layout......................................................................................... 76-788.0 SUMMARY& CONCLUSION.............................................................................. 79-80

1.0INTRODUCTION1.1Background LiteratureMethanol, or in another name alcohol or calbinol, is one of the most important chemical raw materials. 85% of the methanol produced is used in the chemical industry as a starting material or solvent for synthesis. The by-product is used in the fuel and energy sector and increasing throughout the years. Worldwide production capacity in 1989 was around tonne per annum. But in 1993, worldwide production capacity was increased to tonne per annum and keeps mounting in 2011, which was the consumption of pure methanol reached almost tonne per annum (Wiley-VCH, 2012). Methanol can be either used as a solvent and fuel by itself or conveniently converted into useful products such as formaldehyde, amines, acetic acid, esters, and olefins. The major part is used in the formaldehyde industry. Formaldehyde (CH2O), the target product of the projects plant, is an organic compound representing the simplest form of the aldehydes. It acts as a synthesis baseline for many other chemical compounds including phenol formaldehyde, urea formaldehyde and melamine resin. The most widely produced grade is formalin (37 wt. % formaldehyde in water) aqueous solution. Different catalysts have been widely tested for the methanol oxidation reactions. Especially different vanadium-based catalysts have been under intensive investigation. For example V2O5/TiO2, VMgO and silica supported SbV mixed oxide catalysts have been studied.Formaldehyde can be produced also by using mercaptans as reactants. This is attractive, since the process will, at the same time, reduce the emissions of these very malodorous compounds. For example, methanol and mercaptans are formed during the pulping process of wood in pulp mills. In kraft pulp mills 7080% of total volatile organic compound (VOC) emissions are methanol emissions. These compounds can be collected from the condensate streams of the mill. Nowadays the treatment process of these streams includes enrichment by steam stripping and then incineration or in some cases the condensate stream is fed to an aerobic wastewater treatment system where it is converted to carbon dioxide and water (Burgess, Gibson, 2012). The main emitted gas in the process of formaldehyde synthesis includes hydrogen, methanol gas, formaldehyde gas, vapour, carbon monoxide, carbon dioxide and methane. In general, the emitted gases would be inhaled into the boiler in which they can be burned to carbon dioxide and vapour, without causing any harm (Kruse, 2012).

1.2HistoryAncient Egyptians used a mixture of substances that included methanol in their embalming process. They obtained the methanol from pyrolysis of wood. Pyrolysis is the chemical decomposition of condensed organic substances by heating. However, pure methanol wasnt isolated until 1661 by Robert Boyle, who produced the chemical through the distillation of boxwood. The chemical later became known as pyroxylic spirit. The French chemists Jean-Baptiste Dumas and Eugene Peligot determined its elemental composition in 1834.The term methyl was derived from the word methylene, which was coined by Dumas and Peligot in 1840. It was then applied to describe methyl alcohol. The International Conference on Chemical Nomenclature shortened this to methanol in 1892. When German chemists Alwin Mittasch and Mathias Pier developed a means to convert synthesis gas into methanol, a patent was filed on Jan. 12, 1926. In 2006 astronomers at Jodrell Bank Observatory using the Merlin array of radio telescopes, discovered a large cloud of methanol in space, 300 billion miles across.Formaldehyde is the simplest aldehyde with the chemical formula HCHO. Since its accidental production by Alexander Mikhailovich Butlerov in 1859 and subsequent discovery by A. W. Hofmann in 1868, formaldehyde has become a major industrial product. Hofmann passed a mixture of methanol and air over a heated platinum spiral and then identified formaldehyde as the product. This method lead to the major way in which formaldehyde is manufactured today, the oxidation of methanol with air using a metal catalyst.Formaldehyde is normally found in pressed wood products such as particle board, plywood, panelling and fibreboard, glues and adhesives, durable press fabrics like drapes, furniture, cabinets and building materials made from particleboard, medium density fibreboard and certain moulded plastics. Products containing formaldehyde also "off-gas" which means the formaldehyde will evaporate into the air slowly at a low rate. Products that pose this risk including some latex paints, wallpapers, cardboard and paper products, dishwashing liquids, fabric softeners, shoe-care agents, carpet cleaners, lacquers and some cosmetics, such as nail polish and nail hardener. Formaldehyde is widely produced around the world for use as a disinfectant and preservative. It is also used in textile finishing and in the production of resins that act as adhesives and binders for wood products.

1.3Properties of Formaldehyde 1.3.1Chemical Properties

Figure 1: Atomic Structure of FormaldehydeFormaldehyde is an organic compound with the formula CH2O or HCHO. It is the simplest aldehyde and is also known by its systematic name methanal. The common name of this substance comes from its similarity and relation to formic acid. A gas at room temperature, formaldehyde is colourless and has a characteristic pungent, irritating odour. It is an important precursor to many other materials and chemical compounds. In 1996, the installed capacity for the production of formaldehyde was estimated to be 8.7 million tonnes per year. Commercial solutions of formaldehyde in water, commonly called formol, were formerly used as disinfectants and for preservation of biological specimens. It is commonly used in nail hardeners and/or nail varnish.

Figure 2: Chemical Identity of Formaldehyde

1.3.2Physical PropertiesThe chemical formula for formaldehyde is CH2O and the molecular weight is 30.03 g/mol. The vapour pressure for formaldehyde is 10 mm Hg at -88 EC, and its log octanol/water partition coefficient (Log Kow) is -0.65. Formaldehyde is a colourless gas with a pungent, suffocating odour at room temperature; the odour threshold for formaldehyde is 0.83 ppm. Formaldehyde is readily soluble in water at room temperature. Commercial formaldehyde is produced and sold as an aqueous solution containing 37 to 50 percent formaldehyde by weight.

Figure 3: Physical and Chemical Properties of Formaldehyde

1.4ApplicationsFormaldehyde is a major industrial chemical, ranked 24th in production volume in the United States. In 1985, 5.7 billion pounds of 37 percent formaldehyde (by weight) was produced. Formaldehyde has four basic uses: as an intermediate in the production of resins; as an intermediate in the production of industrial chemicals; as a bactericide or fungicide; and as a component in the formulation of end-use consumer items. The manufacture of three types of resins: urea-formaldehyde, phenol-formaldehyde, and melamine formaldehyde, accounts for about 59 percent of total consumption. An additional seven percent is consumed in the production of thermoplastic acetal resins. About one-third is used in the synthesis of high volume chemical derivatives, including pentaerythritol, hexamethylenetetramine, and butanediol. Two percent is used in textile treating and small amounts of formaldehyde are present as preservatives or bactericides in consumer and industrial products, such as cosmetics, shampoos and glues. Some products prepared from formaldehyde contain unreacted formaldehyde residues which may be released from the product over its useful life. One example is urea-formaldehyde resin. Urea-formaldehyde resin is a generic name that actually represents an entire class of related formulations. Over 60 percent of urea-formaldehyde resin production in 1977 was consumed by particleboard and plywood manufacturing, where the resin is used as a glue. Urea-formaldehyde resins are also used in decorative laminates, textiles, paper, and foundry sand moulds.Formaldehyde resins are used to treat textiles to impart wrinkle-resistance to clothing. About 60-85 percent of all apparel fabric is finished with formaldehyde-containing resins. As apparel manufacture is the sixth largest industry sector in the United States, this use is the major source of widespread exposure to formaldehyde because of the large number of workers potentially exposed. In addition, the natural gas and petroleum industries use formaldehyde-based resins in drilling operations, to increase oil and gas well yield and to improve service life. Formaldehyde-based glues help paint to adhere to surfaces, and veneer and paper overlays to adhere to particleboard.Formaldehyde destroys bacteria, fungi, moulds, and yeast. Its commercial importance as a fungicide is probably its greatest use as a disinfectant. Because of its bactericidal properties, formaldehyde is used in numerous cosmetic preparations.Formaldehyde's uses can lead to widespread exposure in downstream industries. For example, when formaldehyde is present in disinfectants, preservatives, and embalming fluid, worker exposure can occur. Although formaldehyde changes into other chemicals when urea-formaldehyde resins and concentrates are produced, decay may occur, causing workers in numerous industries including wood products and apparel manufacture to be exposed to airborne formaldehyde when it off gasses from products manufactured with these resins.From the front to the rear bumpers, formaldehyde-based materials are key to the manufacture of automobiles and are used to make components for the transmission, electrical system, engine block, door panels, axles and brake shoes, just to name a few. It's even used in the paint. Formaldehyde-based materials are used to produce the money bills we spend every day, the documents we print from our computers and the ink used in books, magazines and newspapers. Formaldehyde solutions are used as a fixative for microscopy and histology because of formaldehyde's ability to perform the Mannich reaction, although the percentage formaldehyde used may vary based on the method of analysis. Additionally, the methanol used to stabilize formaldehyde may interfere with the ability to properly fix tissue or cells, and therefore commercial formaldehyde preparations are available that are packaged in glass ampules under an inert gas to prevent the use of contaminating methanol for stabilization. Formaldehyde-based solutions are also used in embalming to disinfect and temporarily preserve human and animal remains. It is the ability of formaldehyde to fix the tissue that produces the tell-tale firmness of flesh in an embalmed body. In post mortem examinations a procedure known as the "sink test" involves placing the lungs of an animal in an aqueous solution of formaldehyde; if the lungs float it suggests the animal was probably breathing or able to breathe at the time of death.

1.5Selection of the production of formaldehydeFormaldehyde is mainly produced by the metal oxide catalyst process. This process is usually carried in very low temperature due to the activeness of the high catalyst selectivity. Qualitative and quantitative processes were used to identify which process might be used so far in the industry to obtain the objective of production.In process selection of a production of formaldehyde, there are various criterions that should be taking in consideration as it plays important parts in producing better formaldehyde. The process of selection covered all other aspects such as inner aspects and outer aspects. For the selection process, concept screening was used to list up every criteria that might affect the production of formaldehyde. The selection process tabulated data in screening table 1 as below:

1

2

3

4

CriterionsOld traditional methodOxidation of hydrocarbon gasesFormalin production unit 800Tail gas Circulation Method

Quality of product (formaldehyde)--+0

Consumption of energy0+00

Catalyst used and effectiveness00+-

Low inhibitor in bottom column of distillation-++0

Total score -213-1

Rank 4 2 1 3

Table 1: Selection process tabulated data in screening

As the process of screening done, further evaluation needs to be done. The critical analysis was needed to be performed to ensure the best method can be selected. Here is the process of scoring after the best ranks were picked.Criterions(2). Oxidation of hydrocarbon gases.

(3). Formalin production unit 800

Quality of product (formaldehyde) 2 4

Consumption of energy 4 3

Catalyst used and effectiveness 3 4

Low inhibitor in bottom column of distillation 4 4

Total score 13 15

Rank of scoring 2 1

Table 2: Selection process tabulated data in scoringReferring from the scoring table 2, the production through the method in Formalin production unit 800 has a greater possibilities in terms of high quality formaldehyde production, the moderate consumption of energy, the effective of catalyst is slightly better than method 2 which is oxidation of hydrocarbon gases, and contains low inhibitor in bottom column of distillation. Clearly this process is far the best among the others method available in industries.

1.6Health and Safety

According to a 1997 report by the U.S. Consumer Product Safety Commission, formaldehyde is normally present in both indoor and outdoor air at low levels, usually less than 0.03 parts of formaldehyde per million parts of air (ppm). Materials containing formaldehyde can release formaldehyde gas or vapour into the air. One source of formaldehyde exposure in the air is automobile tailpipe emissions.During the 1970s, urea-formaldehyde foam insulation (UFFI) was used in many homes. However, few homes are now insulated with UFFI. Homes in which UFFI was installed many years ago are not likely to have high formaldehyde levels now. Pressed-wood products containing formaldehyde resins are often a significant source of formaldehyde in homes. Other potential indoor sources of formaldehyde include cigarette smoke and the use of unvented fuel-burning appliances, such as gas stoves, wood-burning stoves, and kerosene heaters.Industrial workers who produce formaldehyde or formaldehyde-containing products, laboratory technicians, certain health care professionals, and mortuary employees may be exposed to higher levels of formaldehyde than the general public. Exposure occurs primarily by inhaling formaldehyde gas or vapour from the air or by absorbing liquids containing formaldehyde through the skin.Formaldehyde enters the environment through natural sources such as forest fires and certain human activities such as smoking tobacco, burning automotive and other fuels, and wood burning. Sources of formaldehyde in indoor air include tobacco smoke and smoke that may leak from wood-burning appliances, such as wood stoves and fireplaces. Many processed and finished products found inside our homes contain and release very small amounts of formaldehyde into the air.In recent years, the health effects associated with elevated levels of exposure have brought to light the dangers from prolonged and repeated contact with chemical. The major exposure risks associated with formaldehyde come from occupants inhaling contaminated air.

Exposure to elevated levels of this substance should be avoided whenever possible as exposures to high levels of formaldehyde can trigger: Asthma attacks Nausea Watery and/or burning eyes Difficulty breathing Headaches Respiratory irritation SensitizationFormaldehyde has been shown to cause cancer in animals and according to the Department of Health and Human Services (DHHS), formaldehyde may reasonably be anticipated to be a carcinogen. Formaldehyde must be stored in a moderately warm place. It is classified as C1 (Combustible Liquid) for the purpose of storage and handling. This substance must be kept away from sources of heat or ignition, strong alkalis, acids, combustibles and oxidizing agents. Figure 4: Safety Information of Formaldehyde

2.0Process DescriptionUnit 800 produces formalin (37wt% formaldehyde in water) from methanol using the silver catalyst process. Air is compressed and preheated, fresh and recycled methanol is pumped and preheated, and these two streams are mixed to provide reactor feed. The feed mixture is about 39 mol% methanol in air, which is higher than the upper flammability limit for methanol. In the reactor, the following two reactions occur:

CH3OH + 1/2O2 HCHO + H2O

CH3OH HCHO + H2

The reactor is a unique configuration, in which the silver catalyst is in the form of wire gauze, suspended above a heat exchanger tube bank. Because the net reaction is very exothermic, the heat generated in the adiabatic reactor section must be removed quickly, hence the close proximity of the heat-exchanger tubes. The heat exchanger resembles a pool boiler, with a pool of water on the shell side. If the temperature of the effluent is too high, the set point on the steam pressure line is lowered to increase the vaporization of boiler feed water (bfw). In general, the liquid-level controller on the bfw is adjusted to keep the tube bundle fully immersed. The reactor effluent enters an absorber in which most of the methanol and formaldehyde are absorbed into water, with most of the remaining light gases purged into the off-gas stream. The methanol, formaldehyde, and water enter a distillation column, in which the methanol overhead is recycled; the bottoms product is a formaldehyde/water mixture that contains 1 wt% methanol as an inhibitor. This mixture is cooled and sent to a storage tank, which is sized at four days capacity. This storage tank is essential, because some of the downstream processes are batch. The composition in the storage tank exceeds 37wt% formaldehyde, so the appropriate amount of water is added when the downstream process draws from the storage tank. This is not shown in the PFD (Figure 5a). Storage of formaldehyde/water mixtures is tricky. At high temperatures, undesirable polymerization of formaldehyde is inhibited, but formic acid formation is favored. At low temperatures, acid formation is inhibited, but polymerization is favored. There are stabilizers that inhibit polymerization, but they are incompatible with resin formation. Methanol, at concentrations between 5 wt% and 15 wt%, can also inhibit polymerizaton, but no separation equipment for methanol currently exists on site, and methanol greater than 1 wt% also causes defective resin production. With 1 wt% methanol, the storage tank contents must be maintained between 35C and 45C..

Figure 5: Unit 800: Formalin Process Flow Diagram

2.2Process DescriptionThe PFD shows a process to produce formaldehyde and water. Fresh methanol, at 30C and 120kPa mixes with recycled methanol, Stream 14, at 30C and 120kPa. Stream 1 (recycled and fresh methanol) is at 30C and 120kPa. Pump raises the pressure up to 300kPa. Stream 2 enters the heater which increases the temperature and pressure at 150C and 265kPa respectively. Fresh air at 25C and 101.3kPa enter the compressor. The compressor raises the pressure to 300kPa in Stream 4. This stream was then passed through a heater which raised the temperature to 200C in Stream 5. Stream 5 and Stream 3 were then entering the mixer. The combined mixture is at 171.9C and 255kPa in Stream 6.

The reactor converts 85% of the methanol. The exit reactor temperature is 200C and 185 kPa. Heat is removed by Stream 7 passing through E-3 cooler which cools the temperature into 100C at Stream 8 with a drop of pressure which is at 150 kPa. A valve drops the pressure of this stream to 5 psia before it enters the absorber, T-101. Fresh water is sent through the absorber at 30C and 150 kPa. Absorber is set to absorb 99% of the formaldehyde that enters. Stream 9 then enters the formalin distillation column.

Most of the methanol is recovered in the distillate. Stream 10, the distillate, is recycled back to the inlet of fresh methanol at 30C and 120 kPa. The bottoms, Stream 12 is at temperature of 106.4C with the pressure of 150 kPa. Storage of formalin is tricky. At high temperatures, undesirable polymerization of formaldehyde is inhibited, but formic acid formation is favoured. At low temperatures, acid formation is inhibited, but polymerization is favoured. With 2 wt% methanol, the storage tank contents must be maintained between 35C and 45C.

2.3Stream Summary

Name1234

Description

Upstream Opmixer3.Outpump.OutE-2.Outcompressor.Out

Downstream Oppump.InE-2.InMixer1.In1E-1.In

VapFrac0.000.001.001.00

T [C]30.040.8150.0183.0

P [kPa]120.00300.00265.00300.00

MoleFlow/CompositionFractionkgmole/hFractionkgmole/hFractionkgmole/hFractionkgmole/h

METHANOL1.000080.001.000080.001.000080.000.00000.00

OXYGEN0.00000.000.00000.000.00000.000.2100930.66

FORMALDEHYDE0.00000.000.00000.000.00000.000.00000.00

WATER0.00000.000.00000.000.00000.000.00000.00

HYDROGEN0.00000.000.00000.000.00000.000.00000.00

NITROGEN0.00000.000.00000.000.00000.000.78991115.28

Total1.0080.001.0080.001.0080.001.00145.94

Mass Flow [kg/h]2563.352563.352563.354210.48

Volume Flow [m3/hr]3.2753.3181062.1081844.978

Std Liq Volume Flow [m3/hr]3.2213.2213.22112.348

Std Gas Volume Flow [SCMD]4.5485E+44.5485E+44.5485E+48.2977E+4

Energy [W]-6.209E+5-5.914E+53.901E+55.405E+5

H [kJ/kmol]-27939.0-26614.017552.913332.8

S [kJ/kmol-K]67.34476.002206.302174.598

MW32.0432.0432.0428.85

Mass Density [kg/m3]782.6941772.66702.41352.2821

Cp [kJ/kmol-K]121.168124.24053.53829.787

Thermal Conductivity [W/m-K]0.20070.19700.02880.0360

Viscosity [Pa-s]5.0500E-44.4242E-41.3999E-52.4694E-5

Molar Volume [m3/kmol]0.0410.04113.27612.642

Z Factor0.00190.00481.00001.0000

Name5678

Description

Upstream OpE-1.OutMixer1.Outreactor.OutE-3.Out

Downstream OpMixer1.In0reactor.InE-3.Inabsorber.Feed_19_bottomFeed

VapFrac1.001.001.001.00

T [C]200.0171.9200.0100.0

P [kPa]265.00255.00185.00150.00

MoleFlow/CompositionFractionkgmole/hFractionkgmole/hFractionkgmole/hFractionkgmole/h

METHANOL0.00000.000.3540880.000.0451212.000.0451212.00

OXYGEN0.2100930.660.135730.660.01002.660.01002.66

FORMALDEHYDE0.00000.000.00000.000.255768.000.255768.00

WATER0.00000.000.00000.000.2105756.000.2105756.00

HYDROGEN0.00000.000.00000.000.0451212.000.0451212.00

NITROGEN0.78991115.280.51022115.280.43348115.280.43348115.28

Total1.00145.941.00225.941.00265.941.00265.94

Mass Flow [kg/h]4210.486773.836773.836773.83

Volume Flow [m3/hr]2166.4953301.4535655.1125500.552

Std Liq Volume Flow [m3/hr]12.34815.57015.27915.279

Std Gas Volume Flow [SCMD]8.2977E+41.2846E+51.512E+51.512E+5

Energy [W]5.611E+59.511E+51.131E+68.768E+5

H [kJ/kmol]13839.915154.615306.411868.9

S [kJ/kmol-K]176.721192.978201.114194.704

MW28.8529.9825.4725.47

Mass Density [kg/m3]1.94352.05181.19781.2315

Cp [kJ/kmol-K]29.87138.77335.23133.560

Thermal Conductivity [W/m-K]0.03710.03290.03820.0295

Viscosity [Pa-s]2.5371E-52.0114E-51.9595E-51.5795E-5

Molar Volume [m3/kmol]14.84514.61221.26520.683

Z Factor1.00001.00001.00001.0000

Name9101112

Description

Upstream Opabsorber.LiquidDraw_19_bottomLDistillation_column.VapourDraw_0_condenserVDistillation_column.LiquidDraw_0_condenserLDistillation_column.LiquidDraw_30_reboilerL

Downstream OpDistillation_column.Feed_17_feedmixer2.In1mixer2.In0

VapFrac0.001.000.000.00

T [C]89.996.096.0106.4

P [kPa]150.00130.00130.00150.00

MoleFlow/CompositionFractionkgmole/hFractionkgmole/hFractionkgmole/hFractionkgmole/h

METHANOL0.048099.510.084291.460.085542.580.036415.47

OXYGEN0.00000.000.000010.000.00000.000.00000.00

FORMALDEHYDE0.340267.280.6524611.260.4557313.760.2811242.25

WATER0.61167120.970.262844.540.4587313.850.68247102.58

HYDROGEN0.000010.000.000110.000.00000.000.00000.00

NITROGEN0.000020.000.000280.000.00000.000.00000.00

Total1.00197.771.0017.271.0030.201.00150.30

Mass Flow [kg/h]4504.31466.77745.563291.98

Volume Flow [m3/hr]6.063407.6041.1084.586

Std Liq Volume Flow [m3/hr]5.2430.5890.9023.752

Std Gas Volume Flow [SCMD]1.1244E+59.8163E+31.717E+48.5457E+4

Energy [W]-1.102E+66.119E+4-1.292E+5-8.119E+5

H [kJ/kmol]-20057.512759.8-15404.5-19445.8

S [kJ/kmol-K]115.225205.561131.624121.017

MW22.7827.0424.6921.90

Mass Density [kg/m3]742.86991.1451673.0442717.7774

Cp [kJ/kmol-K]107.93138.135129.112119.090

Thermal Conductivity [W/m-K]0.28270.02260.20960.3100

Viscosity [Pa-s]2.1966E-41.2334E-51.7283E-41.8574E-4

Molar Volume [m3/kmol]0.03123.6090.0370.031

Z Factor0.00151.00000.00160.0015

Name1314Off-gasair

Description

Upstream Opmixer2.OutE-4.Outabsorber.VapourDraw_0_overheadV

Downstream OpE-4.Inmixer3.In1compressor.In

VapFrac0.363740.000011.001.00

T [C]96.030.084.625.0

P [kPa]130.00120.00140.00101.30

MoleFlow/CompositionFractionkgmole/hFractionkgmole/hFractionkgmole/hFractionkgmole/h

METHANOL0.085094.040.085094.040.011792.490.00000.00

OXYGEN0.00000.000.00000.000.01262.660.2100930.66

FORMALDEHYDE0.5272925.030.5272925.030.003410.720.00000.00

WATER0.3874818.390.3874818.390.3695278.030.00000.00

HYDROGEN0.000040.000.000040.000.0568212.000.00000.00

NITROGEN0.00010.000.00010.000.54588115.280.78991115.28

Total1.0047.461.0047.461.00211.171.00145.94

Mass Flow [kg/h]1212.331212.334845.704210.48

Volume Flow [m3/hr]408.7011.5454481.6013571.331

Std Liq Volume Flow [m3/hr]1.4911.49112.61512.348

Std Gas Volume Flow [SCMD]2.6986E+42.6986E+41.2007E+58.2977E+4

Energy [W]-6.803E+4-2.742E+56.450E+53.519E+5

H [kJ/kmol]-5159.7-20797.010996.48679.3

S [kJ/kmol-K]158.51998.072186.396171.110

MW25.5425.5422.9528.85

Mass Density [kg/m3]2.9663784.91301.08121.1790

Cp [kJ/kmol-K]96.02195.84931.24729.178

Thermal Conductivity [W/m-K]0.13760.23510.03230.0250

Viscosity [Pa-s]7.9774E-52.6044E-41.6451E-51.8110E-5

Molar Volume [m3/kmol]8.6110.03321.22224.471

Z Factor0.36470.00151.00001.0000

Table 3: Stream Summary

3.0EQUIPMENT SIZINGThis chapter covers the equipment design and sizing of the formaldehyde production plant. The main units to be design are the reactor, absorber, distillation column, cooler and heater(E-1,E-2,E-3,E-4), pump and the compressor. The reactor design cover mainly the volume of the reactor. The absorber design is concerned with determining the height and diameter of the packed tower. The design of the distillation column covered the minimum and actual number of stages, the diameter and the height of the column. The coolers and heaters design covered the determination of area of the equipment with respect to process conditions. Lastly, the compressor and the pump were designed by determining the work of the shaft according to the pressure drop across the unit.

PUMPFrom Heuristic for Pump (Table 11.9) R.Turton, 2014, pg.330

Rule 1: Power (kW) = Rule 4-7 : Type of pump based on headFrom Summary Table and Equipment Summary (Appendix B)

Flowrate (stream 2) = 2563.35 Efficiency, = 0.8P1= 120 kPaP2= 300 kPa

Density of fluid = = = 772.5588 kg/m3P = (3- 1.2) bar = 1.8 bar

head = = = 23.7505 mm

Volumetric flowrate= 2563.35 = 0.0553 m3/minFluid pumping= 1.67 0.0553 m3/min 1.8 bar= 0.166 kW

Power shaft = = = 0.2 kW = 0.3 kW (actual value)

ABSORBERFrom Summary Table,Liquid mass flow,L(Stream 9) = 4504.31 kg/hVapor mass flow,V (off gas stream)= 4845.70 kg/hL= 742.8699 kg/m3v= 1.0812 kg/m3

= 0.0355From equipment summary(Appendix B),2 in Ceramic Berl SaddlePacking factor 45, 1.00 kPa/m pressure dropParameter at flooding = 0.275% flooding = 0.1125G = 0.555 lb/ft2.s

Area = = 5.3356 ft2

A = 5.3356 ft2 = D = 2.6064 ft = 0.7944 m(Actual value: 0.86m)Volume= Area Length= 10m= 4.96 m3

COMPRESSORFrom Heuristic for Pump (Table 11.10) R.Turton, 2014, pg.331

Rule 2 : From Summary Table,Mass flow(stream 4) = 4210.48 kg/hMW = 28.85T = 25C (298K)P1= 1.01 barP2 = 3 bar

Cp = 29.787Cv = 20.7865

k = = = 1.433

a = (k-1)/k= = 0.3024

Mass flow = = 40.54

Wrev ad = = 129.494 kWGiven that = 0.7

Wact = (Actual value: 183 kW)

DISTILLATION COLUMNFrom Summary table,L = 695.77 kg/m3L = 27 000 kg/hG = 1.2315 kg/m3G = 23 000 kg/h

= = 0.0447For 18 inch tray spacing (P.Wankat, Equilibrium Staged Separations, Prentice Hall,1988, pg 387)Csb = 0.28Uact = 1.68 (assume 75% flooding)Ufl = 7.35 ft/s

A = =

5.07 m2 = d = 2.54m(Actual value: 2.5m)Volume = Area x Length ; Length = 19m = 5.07m2 x 19m = 96.33m3

In order to determine the number of stages, Fenske equation are used as shown below:

xoverhead = 0.65426 top = 2.203 xbottom = 0.28112 bottom = 0.5335

avg = = 1.17528

Nmin =

= = 9.7134878Ntheo = 2Nmin = 2(9.7134878) = 19.426976

tray = 0.7

Nact = (x1.1)= 30.5281 trays (Actual value: 31 trays)

REACTORComponent Molecular WeightDensity (kg/m3)

Methanol32.04791.80

Formaldehyde30.03815.30

Water18.02999.97

Hydrogen2.0080.089

O2 (air)N2 (air)500.69402

From Appendix BComponentMolar FlowCompositionMass flow(kg/h)Volume flow (m3/h)

CH3OH31.450.11312829.26011.047310

CH2O62.670.22541652.36232.026692

H2O66.820.240331761.81121.761864

H21.660.005970643.76927491.78955

Oxygen0.150.00053953.9549727.13638

N2115.280.414633039.56965543.8697

278.0317330.86067.6315

Volume = 140.44m3

= = 9.2583x10-3 h-1From stream summary

9.2583x10-3 = V = 130.8919 m3given H = 2D

130.8919 = D = 4.3678 mH = 8.7356mAssume 10% efficiency D = 1.1 x 4.368 = 4.804597 m H = 1.1 x 8.7356 = 9.60916 m

Vmax = = = 174.21648 m2

E-1 HEATER

Q = 20556.7896 WAssume F = 0.9 U = 30W/m2.oCTh,in = 336oC Th,out = 383oC

Tlm =

= = 165.9482 oCQ = UAFTlm

20556.7896 = ()(0.9)(165.9542 oC)A = 4.58795m2(Actual value: 4.62m2)

A = D = 2.43mV= Area LengthAssume L = 2D= 4.62m2 2(2.43m)= 22.54m2For 10% efficiencyD= 1.1 2.43m= 2.673mH = 1.1 4.86m= 5.346m

Vmax = = 29.99m3

E-2 HEATER

Q = 981487.8304 WAssume F = 0.9 U = 30W/m2.oCTh,in = 296oC Th,out = 90oC

Tlm = = 88.994 oC981487.8304 = (30)(A)(0.9)(88.994 oC)A = 408.4702m2(Actual value: 405m2)D= 22.71mV=18398.02m3Vmax = 9919122.39m3

E-4 COOLERQ = 206.16826 kWU = 280 W/m2 oCF = 0.9Tw,in = 30 oC Tw,out = 45 oCTin = 96 oC Tout = 30.1 oC

Tlm = = 8.1644 oCQ = FUATlmQ = (280) A (0.9)(8.1644)A = 100.2 m2D= 11.30mV=2266.5m3Vmax=302538.43m3 E-3 COOLER

Q = 253939.854 WU = 30 W/m2 oCF = 0.9Tw,in = 30 oC Tw,out = 400oCTin = 200 oC Tout = 100 oC

Tlm = = 108.8694 oCQ = FUATlm253939.854= (0.9)(30)A(108.8694) A= 86.3896 m2(Actual value: 28.16m2)D= 10.49mV= 1813.203m3Vmax= 208612.29m2

Comparison between Calculated Value based on Heuristic and Actual DataEquipmentFrom HeuristicAppendixError(%)

Pump0.2 kW0.3 kW33.3

Absorber0.7944 m0.86 m7.7

Compressor184.99 kW183 kW1.09

Cooler E-4100.2 m2--

Cooler E-386.3896 m228.16 m267.4

Heater E-14.58795 m24.62 m20.694

Heater E-2408.4702 m2405 m20.8568

Distillation ColumnD= 2.54 mNumber of tray= 31D= 2.5 mNumber of tray= 311.60

Reactor130.8919 m3140.44 m36.8

Table 6: Comparison between heuristic and actual data

4.0ECONOMIC ANALYSISThis economic terms is refer to the evaluation of capital costs and others operating costs that associated with the construction and operation of chemical process. The economic evaluation for build a new plant can be divided into four sections which are:4.1) Estimation of Capital Costs4.2) Estimation of Manufacturing Costs4.3) Engineering Economic Analysis (non-discounted cash flow and discounted cash flow)4.4) Profitability Analysis

4.1: Estimation of CapitalEquipmentCp ($)FpFMFBMFBMCBM($)CBM ($)

Reactors96,284.46--4.004.00385,137.84385,137.84

Absorber:- Tower- Packing7,258.0517,262.9870.61-1-4.074.103.364.1029,540.2729,778.2524,540.2729,778.25

Distillation Column:- Tower- Tray64,501.5113,208.630.61-1-4.071.836.451.83262,521.15182,025.50416,031.70182,025.50

Compressor70,154.33--2.702.70189,416.69189,416.69

Pump2,672.2411.574.004.0010,714.3510,714.35

Heaters:- E-1- E-2- Reboiler25,535.1060,492.2941,895.06111112.783.293.293.293.293.296.2484,010.48199,019.62137,834.7584,010.48199,019.62261,626.21

Coolers:- E-3- E-4- Condenser23,877.4425,351.6644,033.22111112.783.293.293.293.293.296.2478,556.7883,406.96144,869.3078,556.7883,406.96274,978.62

TOTAL472,526.988.2213.1344.5152.081,816,831.942,219,109.71

Table 7: Estimation of Capital Cost

Table above gives the value in USD of the equipment that is used in the project of the plant. The sample calculation is shown below.

Sample Calculation for Estimation of Capital CostEquipment used in this sample calculation is Pump.

From heuristic, sizing of the pump, the value of the shaft power of the pump is calculated in Equipment design. From there, Power Shaft = 0.2kW. The constant value of k1, k2, and k3 are collected in Appendix A, Table A.1.k1 = 3.3892, k2 = 0.0536, k3 = 0.15838So,

Next, the pressure factors is calculated using following equation that are taken from Turton text book, Analysis, Synthesis, and Design of Chemical Process. The constant value of C1, C2, and C3 are collected in Appendix A, Table A.2.

With a difference pressure of 1.8 bar = 0.8 barg which is less than 10 barg,C1 = C2 = C3 = 0So, Fp = 1

From the Table A.3, the identification number of the material is needed to be identified first before proceeding to the graph of material factors, FM.For this pump, centrifugal type and made of carbon steel. So, refer to the graph of material factors in the text book, Figure A.18,For this pump used carbon steel material. So, FM= 1.57The constant for bare module factor is to be determined in Table A.4 in the text book. The condition is centrifugal type of pump. The values are, B1 = 1.89, B2 = 1.35FBM=B1 +B2FMFP=1.89 + 1.35(1.57)(1)=4.0095FBM= B1 + B2 FBM=1.89 + 1.35 =3.24The bare module cost in base conditions is then calculated by using this following formula.CBM=Cp FBM0=($2,672.2408) (3.24)=$8,658.060CBM=Cp FBM=($2,672.2408) (4.0095)= $10,714.35Sample Calculation of Equipment Based on CEPCI Index 2014I2001=394 I2014=580.2 (last Nov 2014) Find total bare module cost with non-base conditionC2 (2014)= C1 (2001)C2 (2014)=2,219,109.71[ Total CBM ($)=3,243,142.201Find total bare module cost with base conditionC2 (2014)= C1 (2001)C2 (2014)=1,814,775.65[Total CBM ($) =2,672,418.356

Grass Roots and Total Module CostsCTM=1.18 =1.18 ($3,243,142.201) =$ 3,826,907.572CGR=CTM + 0.50=($3,826,907.572) + 0.50 ($2,672,418.356)=$5,163,116.75CGR=$5,163,116.75=RM17,657,859.294.2:Estimation of Cost of Manufacturing (COM)The costs that associated with day-to-day operation of plant are needs to be estimated before the economic feasibility of a proposed process can be assessed. The manufacturing costs are expressed in units of dollars per unit time. The factors that effecting of cost manufacturing are Fixed capital investment, FCI, Cost of raw material, CRM, Cost of utility, CUT, Cost of waste treatment, CWTand Cost of Operating Labor COL. The total for each cost and further calculation can be refers at each tablethat summarize below.

Cost of ManufacturingCost (RM/yr)

Fixed capital investment, FCI17,657,859.29

Cost of raw material, CRM17,894,936.27

Cost of utility, CUT1,570,791.195

Cost of waste treatment, CWT 0

Cost of Operating Labor COL 252,000

Table 8 : The Cost for Factor Affect in Cost of Manufacturing4.2.1: Cost of Raw Material (CRW)RAW MATERIALSAMOUNT (tonne/yr, m3/yr)CURRENT PRICECOSTS (RM/yr)

Methanol21,556.75RM 0.81/kg17,460,966.01

Deionised water15,571.52RM 3.42/1000kg74,093.37

Air Supply (Oxygen and Nitrogen30,033.46RM 1.20/100 std m3359,876.894

TOTAL17,894936.27

Table 9 : Cost of Raw Material4.2.2: Cost of Utility (CUT)UTILITYAMOUNT (kW)COST / COMMON UNITCOST (RM)

Pump0.2RM 0.2025/kWh431.41

Compressor184.99RM 0.2025/kWh456,039.97

Heater:E-1E-2Reboiler20.556789698.14878304608.484209RM 60.534/GJRM 50.719/GJRM 50.719/GJ11,015.56150,705.82934,317.408

Cooler:E-3E-4Condenser253.93985206.168262338.65419867RM 1.211/GJRM 1.211/GJRM 1.211/GJ9,307.6037,556.641,416.784

TOTAL1,570,791.195

Table 10 : Cost of Utility

4.2.3: Cost of Waste Treatment (CWT)In our process flow diagram, there is an off-gas stream that contain all of the product and the reactant that are not needed further in the reaction. The stream contains of methanol, formaldehyde, water, hydrogen, nitrogen and oxygen in vapour form. The water, hydrogen, nitrogen and oxygen are not harmful to the ecosystem if the gaseous mixture was released to the atmosphere, but the formaldehyde and methanol are not. The only solution is to use the flare system to burn off the methanol and formaldehyde. The cost of this flare system is count as a unit.4.2.4: Cost of Operating Labor (COL)Nnp= Equipment =10

NOL=[6.29 + 31.7 P2 + 0.23 Nnp] 0.5 P=0 (no solid)

=[6.29 + 31.7 (0)2 + 0.23 (10)] 0.5

=2.931

So, the number of operators required per shift = 2.931(49 weeks / year) x (5 shift / weeks) = 245 shifts per operator per year(365 days/year x 3 shift/day) = 1095 operating shift per year(1095 operators shift/year) / (245 shifts/year) = 4.5 operators

Operating labour = (4.5) (2.931) = 13.1895 14 operatorsCOL=NOL x 4.5 x Salary=(2.931) (4.5) ($ 18,000)= 252,000 RM/yrCOMd=0.180 FCI + 2.73 COL +1.23 (CUT + CWT + CRM) =(0.18x17,657,859.195)+b(2.73x252,000)+1.23(1,570,791.195+0+17,894,936.27=27,809,219.45 RM/yrCOM=0.280 FCI + 2.73 COL +1.23 (CUT +CWT +CRM) =(0.28 x17,657,859.195) + (2.73x252,000)+1.23(1,570,791.195+0+17,894,936.27=29,575,005.36 RM/yr4.2.5: Manufacturing Factors to Determine Manufacturing CostsFCI= RM 17,657,859.29COM = RM 29,575,005.36/yr Direct Manufacturing CostsTypical Range of Multiplying FactorsValue usedCost (RM/yr)

Raw MaterialCRM17,894,936.27

Waste TreatmentCWT0

UtilitiesCUT1,570,791.195

Operating LabourCOL252,000

Direct Supervisory and Clerical Labour(0.1-0.25)COL0.18COL45,360

Maintenance and Repair(0.02-0.1)FCI0.06FCI1,059,471.557

Operating Supplies(0.1-0.2)(0.06FCI)0.009FCI158,920.734

Laboratory Charges(0.1-0.2)COL0.15COL37,800

Patents and Royalties(0-0.06)COM0.03COM887,250.16

Total Direct Manufacturing CostsCRM+CWT+CUT+1.33COL+0.03COM+0.069FCI21,906,529.92

Table 11: Direct Manufacturing Cost

Fixed Manufacturing CostsTypical Range of Multiplying FactorsValue usedCost (RM)

Depreciation0.1FCI0.1FCI1,657,785.929

Local Taxes and Insurance(0.014-0.05)FCI0.032FCI565,051.497

Plant Overhead Cost(0.50-0.7)(COL+0.18COL+0.06FCI)0.708COL+0.036FCI814,098.934

Total Indirect Costs0.708COL+0.068FCI+Depreciation3,036,936.361

Table 12: Indirect Manufacturing Costs

General Manufacturing CostsTypical Range of Multiplying FactorsValue usedCost (RM)

Administration Costs0.15(COL+0.18COL+0.06FCI)0.177COL+0.009FCI203,524.734

Distribution and Selling Costs(0.02-0.2)COM0.11COM3,253,250.59

Research and Development0.05COM0.05COM1,478,750.27

Total General Manufacturing Costs0.177COL+0.009FCI+0.16COM4,935,525.291

Total CostsCRM+CWT+CUT+2.215COL+0.190COM+0.146FCI+Depreciation29,878,991.87

Table 13: General Manufacturing Costs

4.2.6:Total Direct Manufacturing Cost (DCM)DCM= CRM+ CWT+CUT+1.33COL+0.03COM+0.069FCI =17,894,936.27 + 0 + 1,570,791.195 + (1.33 x 252,000)+ (0.03 x 29,575,005.36) + (0.069 x 17,657,859.29)= 21,906,529.92 RM/yr4.2.7: Total Fixed Manufacturing Costs (FMC)FMC=0.708 COL + 0.068 FCI + Depreciation (0.1FCI)=(0.708 x252,000)+ (0.068 x 17,657,859.29) + (0.1 x 17,657,859.29)=3,144,936.36 RM/yr4.2.8: Total General Manufacturing Costs (GMC)GMC=0.177 COL + 0.009 FCI + 0.16 COM=(0.177 x 252,000) + (0.009 x 17,657,859.29) + (0.16 x 29,575,005.36)=4,935,525.60

Total Cost=CRM + CWT + CUT + 2.215 COL + 0.19 COM + 0.146 FCI + depreciation =17,894,936.27 + 0 + 1,570,791.195 + (2.215 x 252,000) + (0.19 x 29,575,005.36) + (0.146 x 17,657,859.29) + (0.1 x 17,657,859.29)=29,878,991.87 RM/yr

4.3 Engineering Economic AnalysisIn this engineering economic analysis, the subjects included in this chapter are the non-discounted cash flow and discounted cash flow.4.3.1 Non-discounted Cash FlowCash Flow and Cumulative Cash Flow (Non Discounted)YearCash FlowCash Flow Cumulative

00.00.0

0-0.39-0.39

1-10.59-10.65

2-7.06-17.28

2-3.58-20.64

33.03-17.98

43.56-14.75

52.99-12.20

62.65-10.01

72.65-7.89

82.40-6.23

92.15-4.42

102.15-2.86

112.15-1.35

123.471.01

123.973.72

Table 14: Non-Discounted Cash Flow

Payback PeriodFigure 6 : Graph of Non-discounted Cash Flow Diagram vs TimeAbove are the graphs that represent our discrete (non-discounted) cash flows during this project life. From the beginning, the construction phase of this plant takes only two years period. This is shown in the graph that in two years of the project life, there is major capital outlay that represents the fixed capital expenditures for purchasing and installing the equipment and auxiliary facilities required to run the plant. After two years of construction, the plant will start its production and has to recover the fixed capital investment (FCIL) in 6.2 years after plant start-up. It can be shown on the graph that 6.2 years later the fixed capital investment has been paid. The cumulative cash ratio of this project is calculated using this equation:

After calculation, the value of cumulative cash ratio is about 1.44. This indicates that the project has the potential to be profitable where project with CCR greater than one are potentially profitable but if not, the project is said not profitable.

The rate of return on investment (ROROI) represents the non-discounted rate at which money is made from a fixed capital investment. It can be calculated by the following equation:

The use of FCIL, whether in payback period and ROROI given above seems reasonable, due this is the capital that must be recovered by project revenue. Other alternatives also can be used. For example, the total capital investment (FCIL + WC + Land) and the fixed capital investment minus the salvage value (FCIL S) could be used replacing the FCIL in the above equation. Thus the value of rate of return on investment is equal to 5.393%

4.3.2. Discounted Cash FlowsYearCash Flow (discrete)Cash Flow Cumulative

00.00.0

0-0.39-0.39

1-10.26-10.65

2-6.63-17.28

2-3.36-20.64

32.75-17.89

43.13-14.75

52.55-12.20

62.19-10.01

72.12-7.89

81.86-6.03

91.61-4.42

101.56-2.86

111.51-1.35

122.361.01

122.713.75

Table 15: Discounted Cash Flows

NPVDiscounted Payback Period

Figure 7 : Graph of Discounted Cash Flow Diagram vs TimeThe above graph shows the discounted cash flow diagram versus life of the project. The difference between the discounted and the non-discounted cash flow is the non-discounted profitability does not consider the time value of money whereas the discounted profitability does consider it. The criterion is that latter each of yearly cash flows is discounted back to time zero.The discounted payback period (DPBP) is defined as the time required, after start up, to recover the FCIL required for the project with all cash flows discounted back to zero. After calculation, the DPBP of our project is 7.44 years.The discounted cumulative cash position, also known as net present value or net present worth can be calculated by using the following equation:

So, at the end of the project, after 12 years of project life, the cumulative cash position or the NPV is the Ringgit Malaysia 4.09 million

Same as the cumulative cash ratio (CCR), the present value ratio (PVR) calculated must be greater than unity to indicate the profitable project and vice versa. The PVR can be calculated by:

The ratio is then calculated to give the value of 1.18 which is greater than unity. This value shows that the project that we built will deem profitable.The discounted cash flow rate of return or DFCROR is defined as the interest rate at which all the cash flow must be discounted in order for the NPV of the project to be equal to 0. The equation is as follows:

The DCFROR represent the highest after tax interest of discount rate at which the project can just break even.Take the NPV is equal to RM 4.09 million, the NPV for several discount rates were calculated and the results are shown below:Interest of Discount Rate (%)NPV (RM million)

09.54

34.09

60.18

7-0.87

9-2.65

Table 16: Evaluating DFCRORThe value of the DFCROR is found at NPV is equal to 0. So, interpolating the value of the NPV and the interest rate gives the value of DFCROR of 6.17%

4.4Profitability AnalysisYearInvestmentdkFCIL-SdkRCOMd(R-COMd-dk)*(1-t)+dkCash Flow (Non-discounted)Cash Flow (discounted)Cumulative Cash Flow (discounted)Cumulative Cash Flow (Non-discounted)

00.00 17.66 0.00 0.00 0.00 0.00

00.39 17.66 (0.39)(0.39)(0.39)(0.39)

110.59 17.66 (10.59)(10.29)(10.68)(10.99)

27.06 17.66 (7.06)(6.66)(17.34)(18.05)

23.58 17.66 (3.58)(3.37)(20.71)(21.63)

33.53 14.13 30.68 27.82 3.03 3.03 2.77 (17.94)(18.60)

45.65 8.48 30.68 27.82 3.56 3.56 3.16 (14.78)(15.04)

53.39 5.09 30.68 27.82 2.99 2.99 2.58 (12.19)(12.05)

62.03 3.05 30.68 27.82 2.65 2.65 2.22 (9.97)(9.40)

72.03 1.02 30.68 27.82 2.65 2.65 2.16 (7.81)(6.74)

81.02 30.68 27.82 2.40 2.40 1.90 (5.92)(4.34)

930.68 27.82 2.15 2.15 1.64 (4.27)(2.19)

1030.68 27.82 2.15 2.15 1.60 (2.68)(0.05)

1130.68 27.82 2.15 2.15 1.55 (1.13)2.10

1230.68 27.82 3.47 3.47 2.43 1.31 5.57

123.97 2.79 4.09 9.54

Table 17 : Profitability Analysis (Values in RM million)The project is to be built in industrial land at Tanjung Malim, Perak. It is situated near the state border of Selangor and Perak. It is chosen because the strategic location that is away from residential area and due to its reasonable price. With the area of 43,562 square feet or 14 acres, the location is desirable with vast area and closer to other industrial chemical plant, given the project will be built in the industrial area. Also the transportation cost for product selling or material buying is low.Location Range Selling PricePer ftAnnualAssessment Rate(% of Property Value)

PerlisRM10.00 - 15.00,US$3.20 - 4.800.15

KedahRM23.00,US$7.368 - 12

Penang:IslandMainlandRM60 - 65,US$19.20 - 20.80RM18,US$5.6310 - 13.5

PerakRM5.00 - 17.00,US$1.56 - 5.3110

SelangorRM8.50 70,US$2.72 - 228 - 13

Negeri SembilanRM6.00 - 25.00,US$1.92 - 8.008 - 13

MelakaRM6.00 - 18.00,US$1.88 - 5.6312 - 13.2

JohorRM8.00 - 38.00,US$2.50 - 12.160.33 - 1.0

PahangRM3.00 - 11.00,US$0.94 - 3.447 - 9

TerengganuRM2.00 - 60.00 US$0.64 - 19.205 - 10

KelantanRM9.00,US$2.885 - 12

Sabah:- KKIP- POICRM28.00 - 30.00,US$8.96 - 9.60RM12.00,US$3.759 - 15

Table 18: Location of Land and Selling Price*Source: State economic development corporations (SEDCs)** Source: MIDF Property Berhad -www.midf.com.my& State Economic DevelopmentCorporation (SEDCs)*** Cost of land in the Kota Kinabalu Industrial Park (KKIP) & Palm Oil Industrial Cluster (POIC)

Plant Location: Taman Bahtera,Tanjung Malim, Perak.Area: 43562 m2 or 40 acresCost of Land: RM 392,058Taxation Rate: 25% (Source taken from http://www.tradingeconomics.com/malaysia/)Interest Rate 3.25% (Source taken from http://www.tradingeconomics.com/malaysia/)Salvage Value: RM 1,765,786Working Capital: RM 3,580,000FCIL: RM 17,657,859.29Revenue from Sales: RM 30,677,938.24Raw Material Costs (CRW): RM 17,894,936.27Utilities Costs (CUT): RM 1,570,791.195Waste Treatment Costs (CWT): RM 0 Operating Labor Costs (COL): RM 252,000

5.0PINCH ANALYSISPinch analysis is a technique for designing a process to minimize the energy consumption and to maximize the heat recovery. It also reduces the cost of the production in terms of utility consumption. To do the pinch analysis, the minimum approach temperature is assumed to be 10C. Thus the pinch analysis could be done using the Heat Exchanger Network software included in the Analysis, Synthesis, and Design of Chemical Processes text book, forth edition published by Pearson in its CD-ROM appendix. Below are listed the stream data table and a few figures in designing the heat exchanger network.

StreammCp(kJ/s.K)Tin(C)Tout(C)Q(kW)

12.4793200100247.93

21.2638963083.41

31.189840.8150-129.93

41.2109183200-20.59

Table 19: Stream DataUsing the stream data collected from the stream summary table, temperature interval diagram is performed in Figure 14.Figure 8 : Temperature Interval Diagram

The cascade diagram was performed.

Figure 9 : Cascade DiagramPinch Temperature:Hot= 200CCold= 190C

From the cascade diagram, it was determined that the pinch temperature is at 190C below and 200C above. The minimum number of heat exchanger is then determined in Figure 15 and 16 below.

Figure 10: Minimum Number of Heat Exchanger above PinchMinimum number of heat exchanger = 1

Figure 11: Minimum Number of Heat Exchanger below PinchMinimum number of heat exchanger = 4

The Temperature versus Enthalpy diagram in Figure 17 is plotted to depict the pinch location.

Figure 12: Pinch in Temperature-Enthalpy DiagramIt is then performed the Heat Exchanger Network for above and below pinch to allocate the energy distribution as in Figure 18 and 19 below.

Figure 13: Above Pinch Heat Exchanger Network

Figure 14: Below Pinch Heat Exchanger Network

Minimum utilities, minimum number of exchanger (MUMNE) diagram is plotted based on the data obtained in the heat exchanger network and is given in Figure 20 below.

Figure 15: MUMNE Diagram

From the MUMNE diagram, the calculation of energy consumption is able to be calculated and is compared to the energy consumption before the heat integration was performed. The calculation is given below and the PFD after heat integration is as in Figure 21 below.

Before heat integration,Total heat consume, Q= (206.1683 + 253.9399 + 20.5568 + 981.4878)kW = 1462.1528 kWAfter performing heat integration,

Total heat consume, Q= (8.48 + 129.93 + 109.52 + 83.41 + 12.1)kW

= 343.44 kW

Percentage energy recover =

= = 76.51%

Figure 16 : PFD after Heat Integration

6.0ENVIRONMENTAL CONSIDERATIONThe impact of the production of formalin in a plant to the environment is one of the most important considerations in the design of chemical processes. As the process engineer that designing the plant, the environment consideration should be on the highest priority because it is included in considerations of safety and economic issue on plant design. A good environment consideration or waste treatment will reduce a cost on plant design and also reduce the injuries or any hazardous incident on the plant that also match on the one of the Engineering Codes Of Ethics engineers shall hold paramount the safety, health and welfare of the public in the performance of their duties. The effect of a process can have on the environment is usually through the materials that come out of the process. There are three types of waste categories which is waste by gas, waste by liquid and waste by solids. To overcome these wastes, there are many solutions with different ways of treatment according to the phase of the waste existed. As the existed waste is in gas phase, it has the potential to pollute the air by its concentration to the air. As the existed waste is in liquid form, it may pollute the water and for solid form of waste, it will pollute the landscape.The production of formalin in a plant will generate waste that caused pollution to the environment or more worst to the surrounding including indoor plant environment.Formalin is a 37% aqueous (water) solution of formaldehyde, a pungent gas, with the chemical formula HCHO, used as anantiseptic, disinfectant and others. The waste produces by formalin production in this plant design was observed by process flow diagram to be in vapour phase with mixture of oxygen, nitrogen, hydrogen, methanol, water and formaldehyde.These substances then are subjected to off-gas stream after it is separated by absorber unit in a plant. These substances then are treated as a waste. These wastes are existed as a vapor, thus it has the potential to pollute the air if it is not treated well. Since it contains methanol and formaldehyde that are categories as the toxic substance (formaldehyde) and reactive substance (methanol) under hazardous material under Schedule 2, it must be channeled to the right way of treatment.

6.1Methanol

Its a light, volatile, colorless, clear and flammable liquid. It has a distinctive sweetish smell and close to alcohol in odor and colorlessness. Methanol is very toxic to humans if ingested. Permanent blindness is caused if as little as 10 mL of methanol is received and 30 mL could cause death. Even slight contact with the skin causes irritation. Methanol has an explosive nature in its vapor form when in contact with heat of fires.

Flash point11-12 oC

Auto ignition temperature385 oC

Explosive limits36%

Lower Explosion Limit6%

Upper Explosion Limit36%

Table 20 : Methanol properties6.2Formalin (Formaldehyde 37 wt% solution)

This material is a highly toxic material that the ingestion of 30 ml is reported to cause fatal accidents to adult victims. Formaldehyde ranges from being toxic, allergenic, and carcinogenic. The occupational exposure to formaldehyde has side effects that are dependent upon the composition and the phase of the material. These side effects range from headaches, watery eyes, sore throat, difficulty in breathing, poisoning and in some extreme cases cancerous. Formaldehyde is flammable in the presence of sparks or open flames.

Flash point64 oC

Auto ignition temperature430 oC

Explosive limits36%

Lower Explosion Limit6%

Upper Explosion Limit36%

Table 21 : Formaldehyde properties

However, in this plant design the off-gas stream that contains methanol and formaldehyde that seems to be the most dangerous waste is less. The highest percentage by waste in this formalin production was nitrogen with 54.6%.WasteFractionMole flow

Methanol0.011792.49

Oxygen0.01262.66

Formaldehyde0.003410.72

Water0.3695278.03

Hydrogen0.0568212.00

Nitrogen0.54588115.28

Table 22 : Waste fractionThere so many ways to treat vapor waste such as flare system and relief system. In this design plant, the waste is treated with flare and relief systems before it is discharge to the atmosphere. Furthermore, Malaysian Government has introduced Environmental Quality Act 1947 in order to save the environment. Under this regulation, the entire factory that produced waste must treated the waste before discharge in order to reduce the pollution and environment quality. Other than waste treatment, flare system provided a good part of plants safety system. Governmental laws & regulations require the flare to be located a safe distance from the operating units and populated areas.A typical flare system includes a flare (a long, narrow pipemounted vertically), a steam ring mounted at the top of the flare (used to dispense hydrocarbon vapors), an ignition source at the top of the flare, a fan mounted at the base of the flare (used for forced-draft operation), a knockout drum with water seal, and a flare header.The flare stack range height from 200 to 350 feet and far enough from surrounding and other equipments.

Discharge to air airairFlare StackKnockout drumWarm FlareFlare headerWaste

Steam off

Figure 17 : Block flow diagram for gas waste treatmentThe discharge waste from the absorber are collected in a closed piping system and sent to the flare header and flare drum. Since this production is operated at above 0 oC, the warm flare drum is used. The flare header branches throughout the plant and terminates in a sloped line leading to the flare knockout drum. The knockout drum is a carbon steel vessel that contains a steam coil to vaporize light materials and to warm up heavy materials so they can be pumped to recovery. The pump can be automated to control level but will automatically shut down on low level in the drum. Low and high alarms in the control room are normally provided. Then the steam, air and nitrogen vapour is discharge to the atmosphere meanwhile the waste gas is burn with minimum amount of smoke and must be high enough so that the surrounding area and its equipment are not endangered by flame.

7.0 PLANT LAYOUTSite LocationProposed Site Location (Taman Bahtera)The most important steps in building a chemical plant is to decide and verify whether a certain location is suitable location to build a chemical plant. In this project, we need to produce formalin in a large scale which is about 10 k tone per year. Based on the calculations done in economic analysis, the production of formalin cost about RM 3677938.24. A strategic plant is needed as it is the main contribution to either success or the failure of a chemical plant. The site selection is very important because it will ensure that the cost of the final product will be a suitable value. Final site selection choice should be based on the important criteria and factors listed below:

a. Reasonable Land Price

Reasonable means that we are having an affordable land price. In Taman Bahtera,Selangor the price and is RM9.00 per square feet. Compare from other land, Taman Bahtera, Selangor have among the cheapest price in Selangor. This proposed area is about 14 acres, even though the chemical plant did not need such great area at the beginning, the price RM 9.00 psf is cheap for 14 acres compared to other industrial area in Selangor which the remaining unused area can be used for future expand of the chemical plant. The geographical factor should also be examined such as the land condition is almost flat and have a good drainage system so that the cost of building the plant does not strike up.

b. Strategic Location

Strategic location means that the purposed chemical plant is near to road system where the raw material can be easily be transported. This will decrease the cost of transportation for delivering the raw material. In Taman Bahtera, Selangor, it is near to the PLUS North-South Express, which made the transportations of raw materials or product will be easier. Other that than, the nearest town to Taman Bahtera is Tangjong Malim where it is a well-known industrial area. The nearest residential area located at Taman Bahtera is Kampung Bilal where future employers can live there and the distance between the location and the residential area is in a safe distance where any plant faulty will not affect the residential area.

c. Transport FacilitiesThe transport facilities means that the facilities that are needed in getting the material or to sell the product. In Taman Bahtera, the PLUS North-South Express is the nearest express way for delivering raw materials or products. This land property is about 3 KM from the Tanjong Malim North-South Express exit. The North-South Express is the main express way in Malaysia where it connects Perlis to Johor. Thus, where ever the destination of the product to or the raw materials from, the facilities to transports them is gratify. The Taman Bahtera are also place only about 60 KM from the capital city of Malaysia which is Kuala Lumpur.

d. UtilitiesUtilities means that the proposed chemical plant side have services such as electricity, gas or water in that proposed area. In Taman Bahtera, the location have such utilites since Tangjong Malim is an industrial area. Company such as Proton BHD are located in Tangjong Malim. The proposed site is near to the power plant for electricity support due to high demand of power to run a chemical plant. Other utilities such as water are easily obtained at the location.

7.1Plant Site SuggestedThe plant location is being compared with other suitable location. The location was selected based on several criterions. For example the criterions are utilities, transportation and cost of land. Once again the screening and scoring method was used to narrow down the choices of locations. To evaluate the location, first the screening process was done. The selection of the process is tabulated in screening table as below:

1

2

3

CriterionsGambang, PahangBangi, SelangorTaman Bahtera, Selangor

Price (per square feet)--+

Location (from Kuala Lumpur)-++

Transport Facilities+++

Utilities+++

Total score 024

Rank321

Table 23 : Screening data

As the process of screening done, further investigation was done by the process of scoring. This critical analysis was performed to ensure that the best location was been selected. The scoring data was tabulated in a table as shown below:

Criterions(2). Bangi, Selangor

(3). Taman Bahtera, Selangor

Price (per square feet)35

Location (from Kuala Lumpur)54

Transport facilities44

Utilities 44

Total score1617

Rank of scoring21

Table 24 : Scoring data

By referring to the scoring data above, the location chosen was Taman Bahtera, Selangor. This is because Taman Bahtera have a cheaper price compared to Bangi which is RM 9 psf for Taman Bahtera while RM 35 psf for Bangi. For the other criterions such as location, transport facilities and utilities both location share the same score but in the end, we noticed that Taman Bahtera, Selangor have a higher total score than Bangi, Selangor.

Taman Bahtera, SelangorSelection CriteriaTaman Bahtera, Selangor

Location60 KM from Kuala Lumpur

TransportPLUS North-South Express

Energy SourcesSyarikat Bekalan Air Selangor Sdn Bhd (SYABAS)Tenaga Nasional Berhad (TNB)

Raw Material SupplyKLH Chemical Sdn BhdGlobal Trading GroupCS Methyl Sdn BhdGoogad Gat Sdn Bhd

Nearest Residential AreaKampung Bilal

Nearest TownTangjong Malim

Land PriceRM 9.00 (p.s.f)

Table 25 : Suggested Plant Site

7.2 Map of Site Location

Taman Bahtera, Selangor

Figure 18 : Google Map image of Site location

Location of Plant

Figure 19: Location of Plant

7.3Site LayoutThis site layout is constructed based on few factors including cost and the layout can be seen as above. The process units and ancillary building should be laid out to give the most economical flow of materials and personnel around the site. (Ray Sinnot, 2009)

CanteenFigure 20 : Site Layout

Safe Zone Intermediate Zone Danger Zone

From the layout above, upon entering the plant from the front, we can see the loading and unloading bay at the right side. The waste water treatment plant located at the left side of the plant. The road designed to be big as to have space for transportation. Heading straight from the loading and unloading bay will be the space for unloading the raw material. Raw material will be pumped into the tank farm for process inside the plant.The canteen is located in the same building as the administration office as the workers need to come to the office to register at the office. The parking lot of the plant is located outside the plant as it the safety precaution to avoid any unwanted incidents. The administrations office, unloading bay, waste water treatment plant and canteen is considered as a safe zone.As we go along the main road, we can see the processing plant room on the right side and opposite it is the preparation plant room. The distance between these two rooms are remain close as it will ease the works to go back and forth to do their routine job. This will save the time and increase the efficiencies of working hours to maintain the production of formalin. The preparation plant room and the processing plant room is a considered as a danger zoom because most the plants equipment are located here. In the danger zone, employers need to wear their PPE (personal protective equipment) before entering the danger zone.Behind the preparation plant room is located the tank farm. Tank farm is a place where the facility keep or storage for the product that have been produce by the plant which is formalin. The area of the tank farm is large enough as it able to store greater amount of formalin. The tank farm is considered as an intermediate zone as employers still need to gear up their PPE.The plant layout is the simplest plant layout which can help in improving the efficiencies to produce the formalin. All the utilities of the plant is located around the chemical plant. This to ensure that the plant is supplied with sufficient energy sources to maintain the plant operation to produce formalin.

7.4Plant Layout

Figure 21: Plant LayoutIn the production of formaldehyde there are many types of equipment involved. Based on process flow diagram PFD the equipment is already arranged followed the every steps involving in the production. From the main plant layout based on grade mounted of plant layout, the equipment that have in the process are 1 pump P-101, 4 heat exchangers, 1 compressor house ,1 absorption tower, 1 conversion reactor and 1 distillation column.The pump rack is located between block A and block B which is the middle of the main plant design layout. All the piping is located on the middle as well. Several factor is might taking into consideration which are cost of equipment, cost construction, process requirement, operational and maintenance, future expansion and modular construction.At plant layout of the actual site, the 3D layout is established. As refer to the figure below, the 3D block diagram of plant layout is shown. The plant layout consists of processing plant room which is located on the bottom left, preparation plant room on the bottom-middle and on very left, the tank farm is located. For a green building, it is mainly the green zone which consists of administration office, loading and unloading bay, and lastly waste water treatment.

Figure 22 : 3D Plant Layout

8.0SUMMARY & CONCLUSION

The introduction gives a brief history of formalin whish is an accidental production by Alexander Mikhailovich Butlerov in 1859 and subsequent discovery by A. W. Hofmann in 1868, formaldehyde has become a major industrial product. Hofmann passed a mixture of methanol and air over a heated platinum spiral and then identified formaldehyde as the product. This method lead to the major way in which formaldehyde is manufactured today, the oxidation of methanol with air using a metal catalyst.In the process description it is describing the formalin production process as the oxidation of methanol with air using a silver catalyst in the reactor which includes a recycle stream after the distillation column to further reduce the cost of reactant purchase. It also gives the step by step walkthrough the process involved in the entire processing plant and how the equipments are used in the process.The design of the equipments which is the application of engineering heuristics had been calculated and compared to the actual result to acknowledge the percentage error of the process equipments based on the experience of professionals. This design of equipment needs to be measured first before building a plant to check either two of the criteria pass for building of plant to prevent error or accident from occurring after plant had start operating. The equipment design had a low percentage error and is concluded to be operational.Economical analysis is conducted to evaluate the estimation of capital cost and manufacturing cost, engineering economic analysis (cash flow and break-even point) and profitability analysis. Through this evaluation, the results will show either this plant will give profit or loss and is the key in deciding whether to continue the project or not.The fifth analysis is pinch analysis that had been done to do heat integration in order to minimize power used for cooling or heating inside the plant. It also reduces the cost of the production in terms of utility consumption. To do the pinch analysis, the minimum approach temperature is assumed to be 10C. Thus the pinch analysis could be done using the Heat Exchanger Network software included in the Analysis, Synthesis, and Design of Chemical Processes text book, forth edition published by Pearson in its CD-ROM appendix.The environmental consideration part should be on the highest priority because it is included in considerations of safety and economic issue on plant design. A good environment consideration or waste treatment will reduce a cost on plant design and also reduce the injuries or any hazardous incident on the plant that also match on the one of the Engineering Codes Of Ethics engineers shall hold paramount the safety, health and welfare of the public in the performance of their dutiesFinally the plant layout part, site location for plant is specified and the cost of land area is estimated. In Taman Bahtera,Selangor the price and is RM9.00 per square feet. This location had been specified by considering the land price, strategic, transport facility and utility. Site layout had been constructed so that it can give most economical flow of material and personnel around the site. Finally, plant layout had been constructed and is based on several factors that are economic considerations, process requirements, convenience of the operation and maintenance, safety, future expansion and modular construction.In conclusion, this report shows that many tasks needs to be done in planning to build a plant and is different based on the process involve. Our report on formalin production plant shows that huge revenue of RM 30,677,938.24 can be made and thus it is considered that the plant should be constructed.