1. Crimson Consulting Cyclohexane Production Facility Analysis and Design

2. Crimson Consulting “Service Worth Waiting For” Dynamic five-person team of Chemical Engineers Dynamic five-person team of Chemical Engineers Provider of quality engineering consulting services for companies in Oklahoma and the surrounding states Provider of quality engineering consulting services for companies in Oklahoma and the surrounding states Visit our company website for information on company members and projects Visit our company website for information on company members and projects

3. Independent Refineries, Inc. Cyclohexane Production Facility Overall Design and Analysis

4. Independent Refineries, Inc. Hydrogenation of benzene to form cyclohexane for industrial use Hydrogenation of benzene to form cyclohexane for industrial use 20-year project life 20-year project life Design new facility from ground-up Design new facility from ground-up Our company was contracted for process design and economic analysis of project Our company was contracted for process design and economic analysis of project

5. Process Flow Diagram

6. Initial Economic Analysis Initial Estimation of Total Capital Investment (TCI) Initial Estimation of Total Capital Investment (TCI) Determination of Annual Product Cost Determination of Annual Product Cost Determination Annual Cash Flow Determination Annual Cash Flow Profitability Analyses Profitability Analyses

7. Estimation of Delivered Equipment Cost Analyses based on percent of delivered equipment costs (Peters, Timmerhaus, and West) Analyses based on percent of delivered equipment costs (Peters, Timmerhaus, and West) Equipment sizing determined from provided process simulation reports Equipment sizing determined from provided process simulation reports Cost estimated based on existing equipment cost estimates as functions of size Cost estimated based on existing equipment cost estimates as functions of size Assumed 10% error from reading charts Assumed 10% error from reading charts

8. Estimation of TCI Estimation based on percentage of delivered equipment as outlined in PT&W Estimation based on percentage of delivered equipment as outlined in PT&W Assumed 20% error from inherent error in equipment pricing and estimated percentages Assumed 20% error from inherent error in equipment pricing and estimated percentages Fixed Capital Investment (FCI) of $1.6 million Fixed Capital Investment (FCI) of $1.6 million Total Capital Investment of $1.8 million Total Capital Investment of $1.8 million

9. Annual Product Cost and Cash Flow Annual product cost calculated as the sum of all costs of production; raw materials, utilities, depreciation (straight-line), etc. Annual product cost calculated as the sum of all costs of production; raw materials, utilities, depreciation (straight-line), etc. Income from sales calculated based on production data and product prices Income from sales calculated based on production data and product prices Cash flow defined as sales income minus annual product cost Cash flow defined as sales income minus annual product cost

10. Profitability Analyses Process found to have a return on investment (ROI) of -256%, significantly less than the 10% ROI required by IRI Process found to have a return on investment (ROI) of -256%, significantly less than the 10% ROI required by IRI Net Present worth for 2005 is -$370 million Net Present worth for 2005 is -$370 million Strauss Plots, Monte Carlo simulations, and propagation of error methods used for further profitability analyses Strauss Plots, Monte Carlo simulations, and propagation of error methods used for further profitability analyses 10% maximum probability of profitability 10% maximum probability of profitability

11. Pipe Network Design Network specifications provided by IRI Network specifications provided by IRI Stainless steel construction Stainless steel construction 2 in. fiberglass insulation 2 in. fiberglass insulation $822,000 installed piping, $197,000 additional annual production cost $822,000 installed piping, $197,000 additional annual production cost New plant FCI: $2,182,000 New plant FCI: $2,182,000 Additional product cost had less than 1% increase from previous estimates Additional product cost had less than 1% increase from previous estimates

12. Further Pipe Network Design Pressure drop analyses indicate that no additional pumps are needed in network Pressure drop analyses indicate that no additional pumps are needed in network All pipes are within bursting limitations All pipes are within bursting limitations Further size optimization calculations performed with given process data Further size optimization calculations performed with given process data Installation cost of optimized network: $87,400 Installation cost of optimized network: $87,400 FCI with optimized network: $1,450,000 FCI with optimized network: $1,450,000

13. Cyclohexane Production Facility Further Design and Analysis of Process Segments

14. Segment #1

15. Segment #1 Analysis Stainless steel construction Stainless steel construction 60 horsepower gear pump required to provide necessary pump work 60 horsepower gear pump required to provide necessary pump work Piping cost for segment of interest (includes stainless steel piping and valves): $4,250 Piping cost for segment of interest (includes stainless steel piping and valves): $4,250 FCI estimated from cost of installed equipment: $54,000 FCI estimated from cost of installed equipment: $54,000

16. Segment #1 Analysis As designed, system cannot provide required Available Net Positive Suction Head (NPSHA) greater than 2 m As designed, system cannot provide required Available Net Positive Suction Head (NPSHA) greater than 2 m Compressor must be installed before pump to provide necessary NPSHA Compressor must be installed before pump to provide necessary NPSHA Compressor must provide approximately 4 lb f /s Compressor must provide approximately 4 lb f /s

17. Segment #2

18. Segment #2 Analysis Heat exchanger design optimized in Pro/II simulations Heat exchanger design optimized in Pro/II simulations Stainless steel construction Stainless steel construction Tube diameter: 0.7 in. Tube diameter: 0.7 in. Shell diameter: 8 in. Exchanger Heat Transfer Areas: Exchanger Heat Transfer Areas: E1: 272 ft 2 E2: 240 ft 2 E3: 360 ft 2

19. Network Installation Cost Exchangers priced based on material and heat transfer area Exchangers priced based on material and heat transfer area Delivered equipment cost: $26,000 Delivered equipment cost: $26,000 FCI determined as percentage of delivered equipment cost FCI determined as percentage of delivered equipment cost FCI: $105,000 FCI: $105,000

20. Distillation Column Design Column designed in Pro/II simulation based on provided process data Column designed in Pro/II simulation based on provided process data Stainless steel construction Stainless steel construction Height determined from number of trays Height determined from number of trays Diameter determined by calculation of vapor velocity and assumed downcomer area Diameter determined by calculation of vapor velocity and assumed downcomer area Column specifications: Column specifications: height: 66 ft. diameter: 8 ft.

21. Conclusions and Recommendations At this time, current economic conditions are not favorable for this process At this time, current economic conditions are not favorable for this process At current benzene prices, cyclohexane price must increase to $3.04/gal for process to be profitable At current benzene prices, cyclohexane price must increase to $3.04/gal for process to be profitable Crimson Consulting does not recommend construction of this facility at this time Crimson Consulting does not recommend construction of this facility at this time

22. Questions? ? ? ? ? ? ? ?

23. References and Credits Peters, Max S., Klaus D Timmerhaus, and Ronald E. West. Plant Design and Economics for Chemical Engineers, 5th ed. New York: McGraw-Hill Companies, Inc., 2003. Peters, Max S., Klaus D Timmerhaus, and Ronald E. West. Plant Design and Economics for Chemical Engineers, 5th ed. New York: McGraw-Hill Companies, Inc., 2003. Welty, James R., Charles E. Wicks, Robert E. Wilson, and Gregory Rorrer. Fundamentals of Momentum, Mass, and Heat Transfer, 4th ed. New York: John Wiley & Sons, Inc., 2001. Welty, James R., Charles E. Wicks, Robert E. Wilson, and Gregory Rorrer. Fundamentals of Momentum, Mass, and Heat Transfer, 4th ed. New York: John Wiley & Sons, Inc., 2001. Crimson Consulting Staff: Crimson Consulting Staff: Sarah Katen, Group Manager Josef Dalaeli Nell Keith Kien Nguyen James Mansingh Special thanks to: Special thanks to: Inita Goodwin Helen Bedd Nosmo King John Bush George Kerry Perry O’Dontal Your mom Dr. PapaV