1. Production of Ammonia Plant Feedstock From Natural Gas Team Charlie Michael Gardiner - Scribe Rami Qafisheh Alexandria Rinella – Team Leader Advisor: Orest Romaniuk Group Meeting 5 – April 24, 2012 1

2. Table of Contents Page 3-4: Motivation Page 5-6: BFD / Design Basis Page 7: Process Flow Diagram Page 8-9: Energy Recovery Page 10: Environmental Considerations Page 11-16: Economics Page 17-18: Recommendations Page 19: Summary 2

3. Motivation Natural Gas cost is expected to decrease further 3

4. Motivation 4

5. Block Flow/Design Basis 5

6. Design Basis 2700 tons/day of natural gas feedstock will be supplied for process and fuel Natural gas and steam are the main sources of H 2 Air is used as the main source of N 2 Supply the back-end ammonia plant with H 2 and N 2 in a 3:1 molar ratio to make 3600 TPD of NH 3 6

7. Process Flow Diagram 7

8. 8 12345678910 Feed CH4 & recycle stream Exhaust going to ejector Air coming from air blower Heated process gas Reduction gas going to Oxy Fuel booster CH4 to combustion chamber Recycle gas to combustion chamber Heated gas from combustion Heated air to combustion chamber Recycle gas from CO2 Removal CH4, H2, CO, CO2, H20, N2 CO2, H2O, N2 N2, O2CH4, H2, CO, CO2, H20, N2 CH4, H2, CO, CO2, N2 CH4, N2CH4, H2, CO, CO2, H20, N2, O2 CO2, H2O, N2CH4, H2, CO, CO2, H20, N2 CH4, H2, CO, H20, N2 1 3 2 4 5 6 7 8 9 10

9. Energy Sinks and Loads: Heat Exchangers 1076º F 75 psi 724 ºF 14.7 psi 180º F 75 psi 1878º F 14.7 psi 724º F 14.7 psi 420º F 14.7 psi 615º F 14.7 psi 77º F 14.7 psi Q=27 mmBtu/hrQ=113 mmBtu/hr Excess energy from the flue gas is used to heat the feed of gas in

10. Environmental Considerations 10 ………

11. Equipment 11 EquipmentEquipment Cost (USD)Total Installed Cost (USD) Primary Reformer46,000,000188,000,000 Shaft Furnace39,000,000168,000,000 Oxygen fuel booster11,000,00040,000,000 Scrubber650,0002,000,000 Main Air Blower500,0002,000,000 Heat Exchanger 1120,000510,000 Heat Exchanger 2 100,000436,000 Zinc Oxide Bed3,000,00010,000,000 Compressor4,000,00015,000,000 CO2 Removal (MDEA)7,000,00029,000,000 Storage facility-12,000,000 Rail and Loading-18,000,000 Total110,000,000483,000,000

12. Catalysts 12

13. Expenses 13 1 Year (USD)5 Year (USD)10 Year (USD) Loan29,000,00024,000,00017,000,000 Depreciation3,000,000 Electrical20,000,00022,000,00024,000,000 Natural Gas Cost Transfer From Alpha No Transfer CostBetween Groups Oxygen Cost Transfer From Matt’s group No Transfer CostBetween Groups Transportation Costs 72,000,00078,000,00086,000,000 Salaries and Fringes ($100/hr.) 11,000,00012,000,00014,000,000 Maintenance15,000,00016,000,00017,000,000 Feed Ore406,000,000439,000,000485,000,000 Total Expenses556,000,000594,000,000646,000,000

14. Revenue 14 Products Sell Cost/Ton ($) TPD$/Day$/Year DRI4255,0002,000,000790,000,000 Carbon Dioxide 15 Giving to India No Transfer Costs Between Groups Total-5,0002,000,000790,000,000

15. Profit 15 1 Year (USD)10 Year (USD)17 Year (USD) Total Expenses550,000,000640,000,000720,000,000 Total Revenue790,000,000860,000,0001,000,000,000 Income Before Taxes 240,000,000270,326,000370,000,000 Taxes (40%)97,000,000110,000,000150,000,000 Income After Taxes 150,000,000160,000,000220,000,000 Total Cumulative Income 150,000,0001,665,000,0003,000,000,000

16. Payback Period 16 NPV1,030,000,000 IRR32.85% Payback Period4 Years

17. Recommendations 17

18. Recommendations (2) 18

19. Summary The process starts with 2,700 tons/day of natural gas feedstock and will give enough H 2 and N 2 to the back-end ammonia plant to produce 3,600 tons/day of NH 3 Natural gas feedstock and convection section optimization will reduce expenses and payback period Projected payback period is 6.8 years Net present value is 809 million USD (20 years) 19

20. Questions? 20

21. Flow Diagram (1) 21

22. Flow Diagram (2) 22

23. Flow Diagram (3) 23

24. Flow Diagram (4) 24

25. 25 Steam System

26. References 26

27. Questions? 27

28. 28

29. 29