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Manufacture of Ethylene Glycol

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1 Manufacture of Ethylene Glycol
CHE : Process Design Final Design Project Presentation Chemical & Biological Engineering Department Drexel University Manufacture of Ethylene Glycol Design Team: Name Topics Covered in Presentation Chong McLaren Project Scope Nicholas Mitchell Process Description Timre Segear Economic Feasibility Suroor Manzoor Safety & Environment Conclusions & Recommendations Academic Advisor: Dr. George Rowell Industrial Advisor: Mr. Steven Schon, P.E.

2 Project Scope Chong McLaren
The proposed ethylene oxide plant is coupled with the production of ethylene glycol to maximize profits, minimize inherently dangerous inventories and increase safety in handling and transporting products.

3 Size of Plant Ethylene Glycol Diethylene Glycol (By-product)
896 MM lbs/Yr 99.8% Purity (Polyester Fiber Grade) Diethylene Glycol (By-product) 2.2 MM lbs/Yr 99.6% Purity Raw Material Ethylene: 484 MM lbs/Yr Oxygen: 370 MM lbs/Yr at 99% Purity The proposed ethylene oxide plant is coupled with the production of ethylene glycol. The plant is designed to produce approximately 896 million lbs per year of ethylene glycol at 99.8% purity and 2.2 million lbs per year of diethylene glycol at 99.6% purity based on 8100 hours of operation per year. Approximately 484 million lbs per year of ethylene at 98% purity and 370 million lbs per year of oxygen at 99% purity are required to produce the expected quantity of products. The design operating rate is 108,000 lbs per hour, which is 10% higher than the hourly average annual rate to compensate any unexpected downtime or maintenance. The anticipated downtimes include one annual site-wide shutdown of up to 3 weeks for maintenance and an extra shutdown every 3 years for ethylene oxide and ethylene glycol catalyst recharging.

4 Location Port Arthur, TX BASF/ATOFINA steam cracker Grass-Roots Site
Self Sufficient Unit (Utilities & WWTP) The proposed site of the ethylene oxide plant in conjunction with ethylene glycol plant is Port Arthur, Texas. It is adjacent to the BASF/ATOFINA steam cracker which produces 1.72 million lbs of ethylene per year (2). Ethylene will be directly transported by existing underground pipeline systems under high pressures from BASF/ATOFINA to the ethylene oxide process. It is also a grass-roots site, and will be a self sufficient unit including all utilities and a waste water treatment plant.

5 Production of EO Technology
EO Reactor Shell Technology vs. Chlorohydrin process Silver Catalyst Efficient & Environmentally friendly No unwanted byproduct Ethylene Conversion: 12.5% Oxygen vs. Air Reduce quantities of inert gases into recycle Eliminate the need for a purge reactor system Higher selectivity: 65-75% vs % Higher operating cost Higher risk of handling The chlorohydrin process was the first technology to produce ethylene oxide commercially. (The process involves the reaction of ethylene with hypochlorous acid followed by dehydrochlorination of the resulting chlorohydrin with lime to produce ethylene oxide and calcium chloride.) Although the selectivity of this process was approximately 80%, the process itself was very inefficient and caused pollution problem by generating large quantity of unwanted chlorinated hydrocarbon byproducts. The standard practice in the industry is to employ packed-bed multi-tubular reactors. Technology: Shell Technology Ethylene is oxidized with oxygen over a silver-based catalyst to yield ethylene oxide in the reactor. Oxygen vs. Air Pure oxygen reduced the quantities of inert gases introduced into the cycle Pure oxygen eliminated the need for a purge reactor system Pure oxygen gives higher selectivity Pure oxygen has higher operating costs Pure oxygen has higher risk of handling and storage

6 Production of EG Technology
EG Reactor Ion Exchange Catalyst vs. No Catalyst Hydrolysis of EO Reduce operating temperature by 150 °F Reduce amount of excess water Water:EO - 20:1 to 4:1 EO Conversion: 98% Higher MEG selectivity: 91% vs. 98% maximize profits by providing higher selectivity, minimizing production of higher glycols, and reducing operating temperature and amount of excess water needed. The ethylene oxide conversion is 98% and its catalyst selectivities are 98% monoethylene glycol and 2% diethylene and tri ethylene glycol.

7 Chemistry Ethylene Reaction: Side Reactions: EO Reaction:
C2H4 +1/2 O2 → C2H4O Side Reactions: C2H4 + 3 O2 → 2 CO2 + 2 H2O C2H4O + 2 1/2 O2 → 2 CO2 + 2 H2O EO Reaction: C2H4O + H2O → C2H6O2 C2H4O + C2H6O2 → C4H10O3 The main reaction, formation of ethylene oxide from ethylene, is as follow: Molecular oxygen is adsorbed to the silver surface of catalyst and reacts with ethylene to form ethylene oxide. With only 12.5% of ethylene conversion per pass, majority of unreacted ethylene and oxygen will be recycled back into the feed. The byproducts, carbon dioxide and water, are either formed by complete combustion of ethylene: or by further oxidation of ethylene oxide: The main reaction, formation of ethylene glycol from ethylene oxide, is as follow: This formation is a nucleophilic substitution reaction involving the opening of the ethylene oxide ring by a nucleophile, in this case water (19). Because monoethylene glycol also acts as a nucleophile, it reacts with the ethylene oxide in the same way as water to form diethylene glycol as shown below:

8 Market Analysis EG Worldwide Production
31.2 Billion lbs/Yr 20% in US GLYDE: 896 MM lbs/Yr of EG Production 3% of World market 14% of US market Growth Rate 6%-7% globally per year between Today approximately 15.6 million tons of ethylene glycol is produced worldwide per year and 20% of this market is produced in United States. Worldwide Ethylene Oxide-Ethylene Glycol (EO-EG) market has tightened significantly. World wide demand growth has outpaced capacity increments. Prices are the highest level in 15 years. World wide the demand for EG is expected to increase by 6.5%-7% or approximately 1 million m.t., far exceeding capacity additions. EG demand is expected to increase by 6%-7% through 2010.(20) GLYDE will be capturing 13% of the US market and 2.5% of the world market.

9 Market Analysis Polyester Grade EG Demand for Derivatives Uses
Demand of EG ↑, Demand in End-Use Segments ↑ automobile coolant, antifreeze additive, fiber, film, PET bottles, solvent in printing ink Today's EO and EG marketplace is driven by… demand for Ethylene glycol is increasing with the increase of demand in end use segments, like as automobile coolant and antifreeze additive, for manufacture of polyester group of polymer in different forms like fiber, film, PET bottles, as solvent in printing ink. More Profitable

10 Process Description Nick Mitchell
The proposed ethylene oxide plant is coupled with the production of ethylene glycol to maximize profits, minimize inherently dangerous inventories and increase safety in handling and transporting products.

11 Block Flow Diagram Section 200: EO Absorption Section
Section 500: EG Purification Section Section 100: EO Reaction Section Section 400: EG Reaction Section Section 300: CO2 Removal Section Ethylene Oxygen Feed Prep OMS EO Absorber EO Stripper CO2 Absorber CO2 Stripper Flare EO Reactor EG Reactor EG Dehydration EG Purification CO2 Purge EG DEG Ethylene Feed Prep Oxygen Mixing Station Ethylene Oxide Reactor EG Dehydration EG Purification Carbon Dioxide Absorber Carbon Dioxide Stripper Ethylene Oxide Absorber Ethylene Oxide Stripper EG Reactor

12 Section 100: EO Reaction Recycle Compressor 8,600 cfm 2,900 HP
2 Stages Oxygen Mixing Station Safe Mixing of Oxygen Avoiding Flammability Range Reactor & Cooler 150 MM Btu/hr to Oil System

13 Section 200: EO Absorption
EO Stripper D = 10 ft 20 Trays 10 Required EO/Water Concentration EO Absorber D = 10 ft Structured Packing HETP = 24 in. Packing H = 40 ft

14 Section 300: CO2 Removal CO2 Stripper D = 4 ft 15 Trays Feed @ 1
Absorber Vapor CO2 Stripper D = 4 ft 15 Trays 1 CO2 Absorber D = 4 ft Structured Packing HETP = 24 in. Packing H = 40 ft

15 Section 400: EG Reaction Stripper Distillate

16 Section 500: EG Purification

17 Key Process Assumptions
Overall Heat Transfer Coefficients 150 Btu/hr sqft oF Boiling or Condensing Liquid/Liquid 50 Btu/hr sqft oF Elsewhere Gas/Liquid Gas/Gas EO Reactor Pressure Drop 15 psi in Packed Bed Reactors 6 psi in Heat Exchangers < 3 psi in Vacuum Heat Exchangers Pressure Drop in Columns Estimated by Aspen

18 Key Process Assumptions
Purity of Raw Materials Ambient Temperature & Humidity Wet Bulb Temperature for Cooling Water Operating Time 8,100 hrs/yr (~4 wks downtime)

19 Key Process Assumptions
EO Reaction Kinetics Shell Catalyst is Proprietary Conversion & Selectivity EG Reaction Kinetics Ion Exchange Resin only used in Lab Scale Pilot Plant Required to test BOTH Catalysts

20 Economic Feasibility Timre Segear
The proposed ethylene oxide plant is coupled with the production of ethylene glycol to maximize profits, minimize inherently dangerous inventories and increase safety in handling and transporting products.

21 Economic Assumptions

22 Economic Assumptions

23 Fixed Costs

24 Fixed Costs

25 Other Capital Costs Assumptions
Five miles of piping uninstalled cost $1MM Cost factor of 5 for a total of $5 MM Oxygen Mixing Station uninstalled cost of $1 MM Cost factor of 4.44 for a total of $4.4 MM Seader, Seider and Lewin 600 MM lbs/yr in 1995  $80 MM 896 MM lbs/yr in 2006  $123 MM Reassuring our capital cost ($175 MM) is reasonable Costs for capital equipment were calculated using the equipment cost spreadsheet provided to us by Arkema Chemicals Inc. These results were also compared to those given by Icaris to be sure we were using the spreadsheet correctly. The specialty equipment was priced based on the following assumptions: Literature data found in Product and Process Design Principles by Seader, Seider and Lewin estimated capital cost for a 600 MMlb/yr ethylene oxide plant in 1995 to be $80MM. Considering increase in capacity and inflation the estimated capital costs would increase to $123MM in This reassured that our calculated capital cost is $124 MM is reasonable.

26 Total = 38 c/lb Total = 23.3 c/lb
This graph represents the different contributions of each type of manufacturing cost to the overall cost. As you can see the major contribution to the manufacturing cost is the raw materials. In this case ethylene and oxygen. For this reason It would be in our best interest to try to get contract prices for both our raw materials so they do not change every year with inflation. This will allow us to increase our overall profits. However as you can see from the graph the total manufacturing cost is $.15 c/lb product cheaper than the selling price of the MEG product, which shows that this process can be profitable.

27 Hurdle Rate 12% Design Case 19%
The above graph represents the sensitivity of the cost of ethylene. For our base case the cost of ethylene is 35 cents/lb which yields a 30% IRR. It is apparent that the IRR follows a negative trend with increase in price of ethylene. Hence the price of ethylene should not go above 53 cents/lb in order to stay above the hurdle rate of 12%. This ____ our need to have gain a contract with a locked in ethyelen price for a few years at a time.

28 Capital Cost Sensitivity
Capital Cost – 175 $MM Design Case 19% Hurdle Rate 12% Capital Cost

29 Design Case 88% EO 98% EG Increasing EO Selectivity
Increasing EG Selectivity

30 Design Case 19% Current Market Price Hurdle Rate 12%
Price/Capacity Sensitivity Ethylene Glycol MMlb/yr 40% Current Market Price 35% 1000 MM lb/yr 30% 896 MM lb/yr 25% Design Case 19% DCF IRR, % 20% 600 MM lb/yr 15% 10% Hurdle Rate 12% 5% 0% $0.30 $0.35 $0.40 $0.45 $0.50 Price (2006) $0.38, $/lb

31 As you can see from the cash flow diagram all of our capital costs are spent in year 1. Capital costs include ISBL and OSBL equipment costs along with start-up and R&D costs. This graph reflects the spread-out investment and ramp-up of sales, along with the revised base case IRR.

32

33 Economic Conclusions Total Capital Costs  $175 MM
Raw Materials is major manufacturing cost Anticipated Internal Rate of Return: 19% Hurdle rate: 12% Break even period: 3 years Preliminary results lead us to believe this is an economically feasible process

34 Safety & Environment Conclusions & Recommendations
Suroor Manzoor The proposed ethylene oxide plant is coupled with the production of ethylene glycol to maximize profits, minimize inherently dangerous inventories and increase safety in handling and transporting products.

35 Safety Safety Concerns Ethylene Oxygen mixing station Ethylene Oxide
Highly Explosive and Hazardous Oxygen mixing station Potential Source of Explosion Located in Bunker Ethylene Oxide Very Toxic Human Carcinogen

36 Safety Risk Management Utilities Consideration Fire Prevention
Shut off Oxygen & Ethylene Supply Back up generator Shut Down Fire Prevention Fire Suppression System Shut off all gas streams Wrong Feed Ratios

37 Safety Risk Management Leaks and Spills Process Waste Plant Layout
Ventilate Area Isolate Area Spill Collected or Absorbed Process Waste Flare Recycle and Blending Plant Layout

38 South East SE PREVAILING WIND MAIN ROAD MAIN GATE C-501 C-101 E-101
WAREHOUSE MAINTENANCE BLDG PARKING R-101 V-401 E-402B E-103 SHIPPING & RECEIVING MACHINE SHOP T-201 E-201 E-501A PIPE RACK E-204B T-501 E-202A E-501B E-204C ROAD E-202B V-501 E-501C E-204D OFFICE LAB E-202C E-502A P-501 E-204E P-201 E-203 E-502B P-503 E-204A V-201 CONTROL South East V-502 E-503 T-502 T-202 V-202 P-202A E-504 P-502 P-202B E-205 ROAD P-504 PIPE RACK P-203A E-206 P-505 P-203B P-506 TK-101 TK-102 T-301 V-601 P-301A TK-105 E-601 E-301 P-601 P-301B TK-103 TK-104 P-602 P-303 ETHYLENE PREP OXYGENPLANT N2 TANKS LOADING STATIONS ROAD GATE RAILROAD SIDING UTILITIES WASTE WATER PLANT O2 MIXING STATION 50 ft FLARE

39 Environmental All raw materials/products biodegradable
DEG byproduct Sold Waste Management Streams recycled to optimize process No process waste water WWTP Bottoms from EG Purification blended into MEG product stream Emissions

40 Issues Economics Technical Product Ethylene price
1c/lb is a difference of $9 million/yr Technical Reaction kinetics of silver catalyst proprietary Glycol resin catalyst only tested on lab-scale Product Purity of Ethylene Glycol The final price drops by 25% if purity is in the range % One of the most important recommendations would be to lock in the price of ethylene by entering into a long term contract with the providers. A difference of 1 c/lb in the cost of ethylene would save almost $9 million per year. At this stage, our recommendation is to proceed with this project to the next stage of development

41 Conclusions Capital investment: $175 million
Production rate: 896 million lb/year EG Anticipated Internal Rate of Return: 19% Break even period: 3 years Hurdle rate: 12% Economically Feasible Process Overall, the capital investment for this project is estimated at $124 million. At an estimated production rate of 890 million pounds per year of ethylene glycol at full capacity, the plant will use 450 million pounds per year of ethylene provided by direct pipeline, and 380 million pounds per year of oxygen which will be generated by an oxygen generation plant. The anticipated Internal Rate of Return after the 16 year lifespan is expected to be 30%, with a break even period of 2 years, and this exceeds the hurdle rate of 13%. This process seams very feasible according to this preliminary economic analysis, but a few further studies can be done to improve the profitability further.

42 Recommendations Lock Ethylene price Process Optimization
Heating, Cooling CO2 Catalyst The ethylene oxidation process produces a considerable amount of carbon dioxide (CO2). The waste CO2 is sent to the carbonate scrubber (T-301) and the resulting CO2 gas can be further purified and sold. Since the purification and sale of carbon dioxide is out of our scope, we have listed it as a future improvement to the overall plant, which can bring added profit to the company. This process can be optimized to reduce the overall amount of heating and cooling used in the process, which could potentially save a few million dollars per year, but would probably require a small increase in the capital investment. but a few further studies can be done to improve the profitability further. This process can be optimized to reduce the overall amount of heating and cooling used in the process, which could potentially save a few million dollars per year, but would probably require a small increase in the capital investment. Also, the carbon dioxide stream exiting the CO2 stripper could be purified and sold to offset the cost of production for another few million dollars savings per year. One of the most important recommendations would be to lock in the price of ethylene by entering into a long term contract with the providers. A difference of 1 c/lb in the cost of ethylene would save almost $9 million per year. At this stage, our recommendation is to proceed with this project to the next stage of development.

43 Acknowledgements Dr. George Rowell Mr. Steve Schon, P.E.
Dr. Richard Cairncross Dr. Elihu Grossmann

44 Questions Nick vs Chong Suroor Timre


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