1. Blue-OX Energy Management TJ Chancellor Paul Cole Sara Habib Mira Kim Claudio Ramos Vicente Rosas

2. Benzene Hydrogenation Process

3. Project 3: Benzene Hydrogenation Process Purpose - provide an economic analysis for the benzene hydrogenation process. Objectives - Estimate the total fixed capital investment Estimate the total fixed capital investment Estimate the annual product cost. Estimate the annual product cost. Estimate the annual cash flow for the life of the project. Estimate the annual cash flow for the life of the project. Report profitability based on ROI, discounted cash flow, (NPW), and POT. Report profitability based on ROI, discounted cash flow, (NPW), and POT. NPW if products were sold at half or three times the price of cyclohexane. NPW if products were sold at half or three times the price of cyclohexane.

4. Process Flow Diagram

5. Results Direct costs $1,820,500 Indirect costs $792,000 Fixed-capital investment $2,612,500 Working capital $2,350,807 Total capital investment $4,963,307

6. Annual Cash Flow Year Annual cash flow ($10 6 ) 20051.91 20061.98 20072.06 20082.14 20092.22 20102.30 20112.39 20122.48 20132.58 20142.68

7. Annual Total Product Cost Total variable cost $ 3,369,345 Total fixed cost $ 78,375 Total product cost $ 3,447,720 Plant overhead $ 344,772 Manufacturing $ 3,792,492 Total general expenses $0 Total product cost $ 3,792,492

8. Profitability Price of Cyclohexane (per gallon) ROI Discounted Cash Flow Rate of Return NPWPOT $1.91-8.2%N/A -$5.60 million N/A $3.8240.6%0.60 $8.50 million 1.03 years $11.46247%3.16 $64.90 million 0.19 years

9. Recommendations If market value of cyclohexane falls below $2.32/gallon the process should be discontinued. If market value of cyclohexane falls below $2.32/gallon the process should be discontinued.

10. Hydrogenation Process Fluid Flow Economics

11. Purpose Perform sensitivity analysis for the quantification of risk Perform sensitivity analysis for the quantification of risk Determine the minimum price difference between the product and raw material Determine the minimum price difference between the product and raw material Select material types for different piping section Select material types for different piping section Determine pressure drops through the pipe network in order to determine if more pumps are needed Determine pressure drops through the pipe network in order to determine if more pumps are needed Perform safety analysis for the suggested pipes Perform safety analysis for the suggested pipes Suggest insulation material and thickness Suggest insulation material and thickness Estimate the Fixed Capital Investment Estimate the Fixed Capital Investment

12. Results Optimized Pipe Network StreamNominal Diameter Hydrogen6 in. Benzene2 in. Recycle6 in. Feed3 in. Top4 in. Bottom3 in. Purge3 in. S18 in. S212 in. S312 in. S312 in. S58 in. S68 in. S76 in. S86 in.

13. Findings Optimized Pipe Network Insulation Total Cost Insulation Thickness (m) Fixed Cost Heating Cost Total Cost Glass Wool 0.038$43,571.16$1,323,251.56$1,366,822.72 0.051$57,622.44$1,064,904.02$1,122,526.46 0.076$81,488.28$799,028.52$880,516.80 85% Magnesia 0.038$20,711.16$244,682.69$265,393.85 Rock Wool 0.013$20,177.76$384,775.76$404,953.52 0.025$24,018.24$214,653.13$238,671.37 0.038$30,815.28$149,718.75$180,534.03 0.051$43,571.16$117,376.36$160,947.52

14. Findings Optimized Pipe Network Insulation Total Cost Percentage less than the Non-optimized Insulation Thickness (m) Fixed Cost Heating Cost Total Cost Glass Wool 0.03824%12%13% 0.05125%12%13% 0.07624%11%13% 85% Magnesia 0.03817%12%13% Rock Wool 0.01326%13%14% 0.02526%13%14% 0.03819%12%14% 0.05124%12%15%

15. Results For Non-optimized pipes the minimum price is $1.44 For Non-optimized pipes the minimum price is $1.44 For the Optimized pipes network the minimum price drop 4 cents to $1.40 For the Optimized pipes network the minimum price drop 4 cents to $1.40 Pressure Drop around the entire network was found negligible Pressure Drop around the entire network was found negligible

16. Pressure Drops for Each Stream Sch 40 LengthElbowsValves press drop Streaminches(feet) 90 deg (globe) Dr (lb/ft^2) Hydrogen8700330.00015 Benzene4500530.0181 Recycle8350410.00398 Feed6150620.06851 Top8500220.00008 Bottom6500220.05471 Purge6300210.00098 S110150210.0764 S210100210.05847 S310150420.01356 S410150420.0113 S510100210.08596 S610150420.06799 S710150400.00249 S810100210.00169

17. Recommendations By using the nominal diameter suggested the company will save about $200,000 in the capital investment for the pipes By using the nominal diameter suggested the company will save about $200,000 in the capital investment for the pipes Blue Ox determine that 2 inches thick rock wool insulation is the economical optimum Blue Ox determine that 2 inches thick rock wool insulation is the economical optimum Based on the simulation and calculation the pressure drop is negligible throughout the pipe network thus no new pump or compressor is necessary at this time Based on the simulation and calculation the pressure drop is negligible throughout the pipe network thus no new pump or compressor is necessary at this time

18. Heat and Material Balances and Pump Analysis

19. Objectives: solve heat and material balances for the process from Project 3 solve heat and material balances for the process from Project 3 select an appropriate material for the reactor select an appropriate material for the reactor determine the work needed at the pump for the pumping section of the process determine the work needed at the pump for the pumping section of the process suggest a pump type suggest a pump type create NPSHA vs. flow rate diagram create NPSHA vs. flow rate diagram system head vs. flow rate diagram system head vs. flow rate diagram estimate the Fixed Capital Investment for the pumping section. estimate the Fixed Capital Investment for the pumping section.

20. Results: Material Balance Heat Balance

21. Material Stainless Steel Stainless Steel Reactor contains Hydrogen at high T and P Reactor contains Hydrogen at high T and P Resistant to corrosion Resistant to corrosion Ensures reactor safety & longevity Ensures reactor safety & longevityPump Work Needed: 5.06 kW Work Needed: 5.06 kW Pressure Drop: 38 psia Pressure Drop: 38 psia Discharge Pressure: 593 psia Discharge Pressure: 593 psia Type: regenerative pump (turbine pump ) Type: regenerative pump (turbine pump )

22. NPSHA and System Head vs. Flow Rate

23. Fixed Capital Investment for the pumping section

24. Heat Transport Equipment

25. Objectives Design heat exchanger E1 by hand (using Excel) and by simulation (using Pro/II). Design heat exchanger E1 by hand (using Excel) and by simulation (using Pro/II). Choose materials for construction of the heat exchangers. Choose materials for construction of the heat exchangers. Generate T-Q diagrams for each of the heat exchangers. Generate T-Q diagrams for each of the heat exchangers. Design a distillation column for the process. Design a distillation column for the process.

26. Hand Design Double pass heat exchanger. Double pass heat exchanger. Nominal Tube Size: ½ inch Nominal Tube Size: ½ inch Tube Length: 16 feet Tube Length: 16 feet Total Area: 2117 ft 2 Total Area: 2117 ft 2 Fluid Flow Rate: 4.73 m 3 /s Fluid Flow Rate: 4.73 m 3 /s Tube Side Pressure Drop: 1.71 psi Tube Side Pressure Drop: 1.71 psi

27. Simulator Design Front End Stationary Head: Channel and Removable Cover Front End Stationary Head: Channel and Removable Cover Shell Type: Double Pass with Longitudinal Baffle Shell Type: Double Pass with Longitudinal Baffle Rear End Head: U-Tube Bundle Rear End Head: U-Tube Bundle Shell Inside Diameter: 8 inches Shell Inside Diameter: 8 inches Tubes per Shell: 24 Tubes per Shell: 24 Area: 588ft 2 Area: 588ft 2

31. Heat Exchanger Materials 304 Stainless Steel was chosen as the material for construction. 304 Stainless Steel was chosen as the material for construction. Stainless steel was chosen because of the corrosive properties of methane and benzene. Stainless steel was chosen because of the corrosive properties of methane and benzene.

32. Economics Price of a single heat exchanger: $12,155 Price of a single heat exchanger: $12,155 Purchased Equipment (3 heat exchangers): $36,465 Purchased Equipment (3 heat exchangers): $36,465 Fixed Capital Investment: $190,530 Fixed Capital Investment: $190,530

33. Distillation Column 28 Trays. 2 feet between trays. 5 feet for the top and bottom trays. 28 Trays. 2 feet between trays. 5 feet for the top and bottom trays. Column Height: 66 feet Column Height: 66 feet Tray Diameter: 93 inches Tray Diameter: 93 inches Condenser Condenser Reboiler Reboiler Reflux Ratio: 24 Reflux Ratio: 24