Presentation on theme: "Manufacture of Ethylene Glycol"— Presentation transcript:
1 Manufacture of Ethylene Glycol CHE : Process Design Final Design Project Presentation Chemical & Biological Engineering Department Drexel UniversityManufacture of Ethylene GlycolDesign Team:NameTopics Covered in PresentationChong McLarenProject ScopeNicholas MitchellProcess DescriptionTimre SegearEconomic FeasibilitySuroor ManzoorSafety & EnvironmentConclusions & RecommendationsAcademic Advisor: Dr. George RowellIndustrial 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/Yr99.8% Purity (Polyester Fiber Grade)Diethylene Glycol (By-product)2.2 MM lbs/Yr99.6% PurityRaw MaterialEthylene: 484 MM lbs/YrOxygen: 370 MM lbs/Yr at 99% PurityThe 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 ReactorShell Technology vs. Chlorohydrin processSilver CatalystEfficient & Environmentally friendlyNo unwanted byproductEthylene Conversion: 12.5%Oxygen vs. AirReduce quantities of inert gases into recycleEliminate the need for a purge reactor systemHigher selectivity: 65-75% vs %Higher operating costHigher risk of handlingThe 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 TechnologyEthylene is oxidized with oxygen over a silver-based catalyst to yield ethylene oxide in the reactor. Oxygen vs. AirPure oxygen reduced the quantities of inert gases introduced into the cyclePure oxygen eliminated the need for a purge reactor systemPure oxygen gives higher selectivityPure oxygen has higher operating costsPure oxygen has higher risk of handling and storage
6 Production of EG Technology EG ReactorIon Exchange Catalyst vs. No CatalystHydrolysis of EOReduce operating temperature by 150 °FReduce amount of excess waterWater:EO - 20:1 to 4:1EO 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 → C2H4OSide Reactions:C2H4 + 3 O2 → 2 CO2 + 2 H2OC2H4O + 2 1/2 O2 → 2 CO2 + 2 H2OEO Reaction:C2H4O + H2O → C2H6O2C2H4O + C2H6O2 → C4H10O3The 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/Yr20% in USGLYDE: 896 MM lbs/Yr of EG Production3% of World market14% of US marketGrowth Rate6%-7% globally per year betweenToday 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 inkToday'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.
17 Key Process Assumptions Overall Heat Transfer Coefficients150 Btu/hr sqft oFBoiling or CondensingLiquid/Liquid50 Btu/hr sqft oF ElsewhereGas/LiquidGas/GasEO ReactorPressure Drop15 psi in Packed Bed Reactors6 psi in Heat Exchangers< 3 psi in Vacuum Heat ExchangersPressure Drop in Columns Estimated by Aspen
18 Key Process Assumptions Purity of Raw MaterialsAmbient Temperature & HumidityWet Bulb Temperature for Cooling WaterOperating Time8,100 hrs/yr (~4 wks downtime)
19 Key Process Assumptions EO Reaction KineticsShell Catalyst is ProprietaryConversion & SelectivityEG Reaction KineticsIon Exchange Resin only used in Lab ScalePilot 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.
25 Other Capital Costs Assumptions Five miles of piping uninstalled cost $1MMCost factor of 5 for a total of $5 MMOxygen Mixing Station uninstalled cost of $1 MMCost factor of 4.44 for a total of $4.4 MMSeader, Seider and Lewin600 MM lbs/yr in 1995 $80 MM896 MM lbs/yr in 2006 $123 MMReassuring our capital cost ($175 MM) is reasonableCosts 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 $MMDesign Case19%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 SensitivityEthylene Glycol MMlb/yr40%Current Market Price35%1000 MM lb/yr30%896 MM lb/yr25%Design Case 19%DCF IRR, %20%600 MM lb/yr15%10%Hurdle Rate 12%5%0%$0.30$0.35$0.40$0.45$0.50Price (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.
33 Economic Conclusions Total Capital Costs $175 MM Raw Materials is major manufacturing costAnticipated Internal Rate of Return: 19%Hurdle rate: 12%Break even period: 3 yearsPreliminary results lead us to believe this is an economically feasible process
34 Safety & Environment Conclusions & Recommendations Suroor ManzoorThe 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 HazardousOxygen mixing stationPotential Source of ExplosionLocated in BunkerEthylene OxideVery ToxicHuman Carcinogen
36 Safety Risk Management Utilities Consideration Fire Prevention Shut off Oxygen & Ethylene SupplyBack up generatorShut DownFire PreventionFire Suppression SystemShut off all gas streamsWrong Feed Ratios
37 Safety Risk Management Leaks and Spills Process Waste Plant Layout Ventilate AreaIsolate AreaSpill Collected or AbsorbedProcess WasteFlareRecycle and BlendingPlant Layout
38 South East SE PREVAILING WIND MAIN ROAD MAIN GATE C-501 C-101 E-101 WAREHOUSEMAINTENANCEBLDGPARKINGR-101V-401E-402BE-103SHIPPING &RECEIVINGMACHINESHOPT-201E-201E-501APIPE RACKE-204BT-501E-202AE-501BE-204CROADE-202BV-501E-501CE-204DOFFICELABE-202CE-502AP-501E-204EP-201E-203E-502BP-503E-204AV-201CONTROLSouth EastV-502E-503T-502T-202V-202P-202AE-504P-502P-202BE-205ROADP-504PIPE RACKP-203AE-206P-505P-203BP-506TK-101TK-102T-301V-601P-301ATK-105E-601E-301P-601P-301BTK-103TK-104P-602P-303ETHYLENE PREPOXYGENPLANTN2 TANKSLOADINGSTATIONSROADGATERAILROAD SIDINGUTILITIESWASTE WATER PLANTO2 MIXING STATION50 ftFLARE
39 Environmental All raw materials/products biodegradable DEG byproduct SoldWaste ManagementStreams recycled to optimize processNo process waste waterWWTPBottoms from EG Purification blended into MEG product streamEmissions
40 Issues Economics Technical Product Ethylene price 1c/lb is a difference of $9 million/yrTechnicalReaction kinetics of silver catalyst proprietaryGlycol resin catalyst only tested on lab-scaleProductPurity of Ethylene GlycolThe 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 EGAnticipated Internal Rate of Return: 19%Break even period: 3 yearsHurdle rate: 12%Economically Feasible ProcessOverall, 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, CoolingCO2CatalystThe 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 CairncrossDr. Elihu Grossmann