1. PLANT DESIGN II (CAB 4023) PRODUCTION OF 396, 000 TONNE OF AMMONIA PER YEAR
GROUP 11
MUHAMMAD FAIZ MOHD FUDZAILI
MUHAMMAD FAUZI KHAMIS
MUHAMMAD NUR AZIZI ABDUL AZIZ
NUR IZZATI BUJANG AMRI
SOFIA KEETASOPON
SUPERVISOR: DR MOHANAD EL-HERBAWI

2. GENERAL OVERVIEW

3. INTRODUCTION
ALTERNATIVE PROCESSES
PROCESS DESIGN
PROCESS FLOWSHEETING
INSTRUMENTATION & CONTROL
PLANT LAYOUT
HEAT INTEGRATION
SAFETY & LOSS PREVENTION
WASTE TREATMENT
PROCESS ECONOMICS & COST ESTIMATION
CONCLUSION

4. INTRODUCTION

5. BACKGROUND STUDY Commercially known as anhydrous ammonia
Ammonia is a colourless gas with a sharp, penetrating odour.
The heart of ammonia manufacture is the Haber process
One of the most essential material of the world nitrogen industry

6. USAGE OF AMMONIA Household cleansing agent Fertilizer products
Manufacture synthetic fibers : nylon and rayon
Neutralize acidic by-products of petroleum refining

7. MARKET STUDY 78% used for fertilizer production.
3% used in direct application
19% consumed for industrial end uses.
Continuous growth in the ammonia import correspond to demand for fertilizer production.
The additional ammonia availability in the market from low cost capacity will displace local production in other regions where gas costs are higher e.g. Europe and US
Source : AFA 15th International Forum

9. Global ammonia capacity is projected to be 224.1 Mt NH3 in 2014.
Global ammonia capacity is projected to increase between 2010 and 2015 at an annual growth rate of 3.5%, equating to a net expansion of 37.4 Mt NH3 over 2009.
Global ammonia capacity is projected to be Mt NH3 in 2014.
Much of the growth in ammonia capacity is associated with new urea capacity.
Global urea capacity will expand by a net 30% between 2009 and 2014 corresponds to a compound annual growth rate of 5.4%.
International trade of urea and merchant ammonia is projected to expand by 15 and 20%, between and 2014.

10. PROBLEM STATEMENT Students are required to:
Select the most convenience way to produce ammonia.
Calculate the mass balance.
Perform heat integration for selected process.
Perform study on control and instrumentation.
Conduct the economics evaluation.
Identify the environmental and safety issues related to the plant.

11. To design a process plant that produce
OBJECTIVE
To design a process plant that produce
396, 000 tonnes ammonia per year.

12. ALTERNATIVE PROCESSES

13. Synthesis gas production
Three process steps of industrial ammonia production:
Synthesis gas production
Gas purification
Synthesis of ammonia

14. SYNTHESIS GAS PRODUCTION
Alternative Processes
Steam Reforming Process
Partial Oxidation Process
Electrolysis Process

15. Steam Reforming Process
Reaction : CH4 + H2O → CO + 3 H2
CO + H2O → CO2 + H2
CH4 + 2 H2O → CO2 + 4 H2
Process Description :
Natural gas consists mainly of methane and refinery gas is a mixture of hydrocarbon gases.
The resulting gas mixture contains by volume about 57% hydrogen, 21% nitrogen, 10% carbon dioxide 11% carbon monoxide and some impurities.
Advantages:
Produced more hydrogen if compare to other processes.
Less energy requirement.
Economically competitive due to the low price of the feedstock.
Less carbon monoxide produced.

16. Partial Oxidation Process
Reaction :
CnH(2n + 2) + ½ nO2 → nCO + (n + 1)H2
Process Description :
Oxygen is used instead of air for the reaction
The carbonaceous materials are burned with a limited quantity of oxygen in the presence of steam at a temperature of about C
Disadvantages:
Demands careful control of the feed rates to the combustion chamber.
Heat resisting materials are needed for the construction of the reaction vessels bricks.
Not economically competitive due to the high price of the oxygen.
More carbon monoxide produced. 5. Less hydrogen produced.

17. Electrolysis Process Reaction : H2O ↔ H2 + O2 Process Description :
Two electrodes are placed in a vessel full of water. The cathode is an iron plate and the anode is a nickel iron plate.
A diaphragm of asbestos is placed between the electrodes.
Water decomposed at a voltage different of from 2.0 to 2.3 V between the electrodes, giving rise to hydrogen at the cathode and oxygen at the anode.
Advantages:
Yields very pure hydrogen
Disadvantage :
Has been utilized commercially where low-cost electricity is available, such as Canada but high cost of electricity in Malaysia.

18. SYNTHESIS GAS PRODUCTION
CHOSEN!
Steam Reforming Process
Partial Oxidation Process
Electrolysis Process
Produced more hydrogen if compare to other process.
Less energy requirement.
Economically competitive due to the low price of the
feedstock
Less carbon monoxide produced.

19. CO2 REMOVAL Process Advantages Disadvantages Water scrubbing
Simple plant
No heat load
Solvent availability at minimal cost
Excessive loss of hydrogen
Very high pumping load
Poor CO2 removal efficiency
CHOSEN!
Amine
Rapid absorption
Excellent stability
Easy regeneration
High heat consumption on reactivation
Less economical at high concentration of CO2
Hot carbonate
Inexpensive absorbent
Rapid absorption
Reactivation up to 100%
Less economical at low CO2 concentrations
Inability to assure a satisfactory degree of clean up in the scrubbed gas

20. SYNTHESIS OF AMMONIA CHOSEN! Designation Pressure, atm
Tempera-ture, °C
Catalyst
Recircu-lation
Conversion, %
Bleed to remove inert
CHOSEN!
Haber-Bosch
550
Doubly promoted iron
Yes
10-30
Claude
Promoted iron No
40-85
Casale
600
500
Promoted iron
Yes
15-18 No
Fauser
200
500
Promoted iron
Yes
12-23
*40 % conversion of the gas upon passage through a single converter and 85 % conversion
after passage through a series of converters. Gas is vented after one passes through the
converters.

21. PROCESS DESIGN

22. BATCH VS CONTINUOUS CHOSEN! Selection Criteria Batch Continuous
Production Capacity
Production capacity that less than 10×106 lb/yr.
Production capacity that more than 10×106 lb/yr.
General Market Demand
Seasonal demand and short lifetime products.
Continuous production throughout a year.
Operational Problems
Ideal when handling slow reaction since it is periodically started and stopped.
The possibility of slurry formation is also low since the equipment is periodically clean after each process.
Reaction rate of all units in our design are basically fast due to usage of catalysts.
In lieu to this, there will be low possibility of slurry formation.
CHOSEN!

23. INPUT-OUTPUT STRUCTURE
Recycle
Purge
Product(NH3)
Feed
(NG, Air, Steam)
Process
By-Product
(H2O,CO2)
Purification of feed stream is not required
Purge stream is required
Recycle is required (Product & By-Product)

24. REACTOR DESIGN Flow Pattern Models of Reactor Reactor Type
Principal Application
Advantages
Disadvantages
Continuous Stirred Tank Reactor (CSTR)
Gas-liquid reaction
Consistent product quality due to reproducible process control
Low operating costs
Wide range of throughput
Final conversion lower than in other basic reactor types
Unfavorable if the reaction must take place in high pressure
Tubular Reactor
Homogeneous gas phase reactions
Favorable conditions for temperature control by heat supply or heat removal
No moving mechanical parts
High throughput
Very high degree of specialization
Relative large pressure drop
CHOSEN!

25. Reactor Configurations Fluidized-bed Catalytic
REACTOR DESIGN
Reactor Configurations
Fixed-bed Catalytic
Reactor
Fluidized-bed Catalytic
The fixed-bed (packed-bed) reactor is a tubular reactor that is packed with solid catalyst particles.
Most designs approximate to plug-flow behavior.
In fluidized-bed reactors, solid material in the form of fine particles is held in suspension by the upward flow of the reacting fluid.
CHOSEN!

26. Fixed-bed Catalytic Reactor
REACTOR SELECTION
Packed with solid catalyst particles.
Highest conversion per weight of catalyst.
Behaves as plug flow allows efficient contacting between reactants and catalyst.
Flexible
Fixed-bed Catalytic Reactor

27. SEPARATION SYSTEM
In general, a series of separations are required after the reaction has taken place. The purposes are follows:
- To achieve desired product purity.
- To recover unconverted reactants.
- To remove the hazardous or undesired components before discharging them to environment.

28. Heterogeneous mixture To separate water and gas (N2 and H2)
SEPARATION SYSTEM
Heterogeneous mixture
(liquid and gas)
Two-phase separator
To separate water and gas (N2 and H2)
To separate fully converted ammonia product (liquid) and partially converted ammonia product (gas)

29. MATERIAL BALANCE

30. MASS BALANCE CALCULATION
Recycle
90%
Purge
10%
Purge
From Methanator
CH4
69.99
kmol/hr
H2O
6.44 H2 N2
Total
recycle
3.50% NH3
Ammonia Converter
96.50% NH3
Liquid Ammonia
Reactions in Ammonia Converter
N2+3H2 = 2NH3
30%
based on H2
n1 N2 = feed + recycle - ξ1
n2 H2 = feed + recycle -3ξ1
n3 NH3 = 2ξ1

31. Total amount of ammonia product (kg/h)
MASS BALANCE CALCULATION
first iteration:
ξ1:
730.95 1 2 3 4 5 6
Feed
Product
Ammonia product
Recycle bfr split
Recycle
Purge
CH4
69.99
1.12
68.87
61.98
6.89
H2O
6.44
0.00 H2
4.62
511.21 N2
0.86
167.8
NH3
51.15
46.04
5.1
total
686
second iteration:
Feed + 1st recycle
131.98
2.12
129.86
116.87
12.99
7.53
832.98
1.39
272.78
84.96
76.47
8.50
n1 N2 = feed + recycle - ξ1
n2 H2 = feed + recycle -3ξ1
n3 NH3 = 2ξ1
Total amount of ammonia product (kg/h)
Error %
Calculated
Icon
50000

32. PROCESS FLOWSHEETING

34. INSTRUMENTATION & CONTROL

35. Production Rate and Quality
Plant instrumentation and control is crucial because it provides a proper control of the process variables so that the whole plant operation is within the specification limit for safety purposes. Besides, it has direct impacts on the plant economics, environment and the product specifications
Safe Plant Operation
Production Rate and Quality
Cost Operation

36. Primary Reformer Control Strategy
Control Strategy Selected
Ratio control (fuel-air)
Cascade (for fuel gas flowrate)
Control Objective
To maximize the conversion of methane in the primary reformer section.
Controlled Variables
Temperature of the primary reformer.
Fuel gas flowrate.
Fuel-air ratio for the combustion heating process.
Measured Variables
Process gas temperature outlet of primary reformer.
Fuel gas inlet flow rate.
Air inlet flow rate.
Manipulated Variable
Disturbances
Fuel gas supply pressure.
Set Points
Outlet temperature = 815 oC

37. Ammonia Converter Control Strategy
Control Strategy Selected
Feedback control.
Control Objective
To control the reactor bed temperatures for optimum production.
Controlled Variable
Bed temperatures.
Measured Variable
Manipulated Variable
Cooler by-pass line flow rate.
Disturbance
Rapid reactions of synthesis gas that may lead to more heat released.
Set Point
Each bed has its set point temperature.
H/N ratio control
We have covered H/N ratio control in previous stages.

38. Heat Exchanger Control Strategy
Control Strategy Selected
Feedback control.
Control Objective
To control the temperature of shell from over heating.
Controlled Variable
Bypass shell flow rate.
Measured Variable
Shell outlet temperature.
Manipulated Variable
Flow rate of cold stream (shell).
Disturbance
Temperature fluctuations from the hot stream (tube).
Set Point
146 oC.

39. Control Strategy Selected
Feedback control.
Feedforward control.
Cascade control.
Control Objective
To maintain CO2 values in the process gas below a minimum level.
Controlled Variables
Absorber top CO2 composition.
Regenerated amine solution CO2 composition.
Absorber column pressure.
Desorber column pressure.
Absorber bottom level.
Measured Variables
Amine solution inlet flow rate.
Steam flow rate.
CO2 composition in process gas inlet.
CO2 composition in regenerated amine solution.
Manipulate d Variables
Absorber top flow rate.
Desorber top flow rate.
Absorber bottom flow rate.
Disturbanc e
Process gas inlet CO2 composition .
Set Point
Desired outlet CO2 composition = <0.15%

40. PLANT LAYOUT

41. PLANT SITE SELECTION Location Gebeng Industrial Area
25km from Kuantan town and 250km
from Kuala Lumpur city
Type of industry
Chemical and petrochemical
Price & Land Area
RM10.00 per ft2
168 million ft2 (3800 acres) area available
Raw Material Sources
Natural Gas – CUF Gebeng
Steam – CUF Gebeng
Transportation
5km from Kuantan Port
9km Gebeng-Kuantan pipe-rack network
Kerteh-Gebeng-Kuantan railway
Utilities
Power Supply- Tenaga Nasional Berhad,
Tanjung Gelang
Water supply- Loji air Semambu
Waste treatment
Kualiti Alam Sdn Bhd

42. PLANT SITE SELECTION – GEBENG MAP

43. PLANT LAYOUT

44. HEAT INTEGRATION

45. What is pinch technology? Objective of pinch analysis
Methodology for minimizing energy consumption by optimizing heat recovery systems
Objective of pinch analysis
To achieve financial saving by constructing the best process heat integration
To optimize the process heat recovery and reducing external utility loads

46. METHODOLOGY
Identification of hot, cold and utility streams in the process
Thermal data extraction for process and utility streams
Selection of initial ∆Tmin value
Construction of problem table algorithm
Identification Tpinch, QH,min and QC,min via heat cascade table
Construction of heat exchanger network
Calculation of energy saving

47. Cold Stream
Hot Stream
Back

48. Supply temperature TS(°C) Target temperature TT(°C)
STREAM TABLE
Stream
Supply temperature TS(°C)
Target temperature TT(°C)
Utility
∆H (kW)
No.
Name (Refer to iCON)
Name
Type 1
E105 H1
Hot
427.22
204.44 2
E103 H2
220.00
40.00 3
E115 H8
460.00
300.00 4
E116 H9
150.00 5
E107 C1
Cold
50.00
290.00 6
E113 C2
30.00
189.61 7
E114 C3
350.00
Back

49. EXPANDED STREAM TABLE Ts/t*= Ts/t - ∆T/2 Ts/t*= Ts/t + ∆T/2
Supply temperature TS(°C)
Target temperature TT(°C)
CP(kW/°C)
Shifted temperature (°C)
Utility
∆H (kW)
∆Tmin/2
No.
Name (Refer to iCON)
Name
Type
TS*
TT* 1
E105 H1
Hot
427.22
204.44
422.22
199.44 5 2
E103 H2
220.00
40.00
215.00
35.00 3
E115 H8
460.00
300.00
455.00
295.00 4
E116 H9
150.00
145.00
E107 C1
Cold
50.00
290.00
55.00 6
E113 C2
30.00
189.61
194.61 7
E114 C3
350.00
355.00
Ts/t*= Ts/t - ∆T/2
Ts/t*= Ts/t + ∆T/2
NOTE THAT:: 1
CP = ∆H/∆T, ∆H is obtained from iCON 2
Back
∆Tmin = 10˚C

50. Interval Temperature (˚C)
PROBLEM TABLE ALGORITHM
Interval Temperature (˚C)
Stream Population
∆Tinterval (°C)
∑CPC -∑CPH (kW/°C)
∆Hinterval(kW)
Surplus/Deficit
455.00
32.78
Surplus
422.22
67.22
355.00
60.00
295.00
80.00
215.00
15.56
199.44
4.83
194.61
49.61
145.00
90.00
55.00
20.00
35.00
109
102
110
103
106
104
105
Back

51. Interval temperature (˚C) Adjusted heat cascade (kW)
HEAT CASCADE TABLE
Interval temperature (˚C)
∆Hinterval (kW)
Heat flow (kW)
Adjusted heat cascade (kW)
455.00
0.0000
422.22
355.00
295.00
215.00
199.44
194.61
145.00
55.00
35.00
QH,min
Tpinch (˚C): /2
= 460˚C
QC,min

52. Combine Composite Curve
Grand Composite Curve
Back

53. GRID DIAGRAM

54. Above pinch region: Cpc > Cph Below pinch region: Cph > Cpc
RULES OF THUMB
Above pinch region: Cpc > Cph 1
Cp rules:
Below pinch region: Cph > Cpc
No temperature crossover of hot and cold stream through the heat exchanger 2

55. GRID DIAGRAM WITH HEAT EXCHANGER DESIGN
1) kW/2 = kW/˚C x (460˚C - T)
2) T = ˚C
Back

56. COMPARISON ON TOTAL UTILITY CONSUMPTION
Total Utility Consumption Before HI
Name (Refer to iCON)
∆H (kW)
Remaining Heat For Cooling Requirement (kW)
C102
C103
C109
C110
H104
0.0000
H105
H106
Total
Total Utility Consumption After HI

57. Total Utility Consumption
ENERGY SAVING AFTER HEAT INTEGRATION
Total Utility Consumption
Base Case Design
Before HI
(kW)
After HI
Energy Saved
% Reduction
70.05%
= (222, kW – 65, kW) / kW
= 70.05%

58. SAFETY & LOSS PREVENTION

59. HAZARD AND OPERABILITY STUDY (HAZOP)
Objective of HAZOP
To indentify potential hazards and potential operability problems that may arise from the deviations of design intent.

60. LIST OF HAZOP GUIDE WORDSNO
None of design intent is achieved.
MORE
Quantitative increase
LESS
Quantitative decrease
REVERSE
The logical opposite of the intention
AS WELL AS
An additional activity occur
PART OF
Only some of design intent is achieved
OTHER THAN
Complete substitution

61. HAZOP ANALYSIS HAZOP Study Nodes Node 1
Methanator (R105) including incoming line discharge from heat exchanger (E117)
Node 2
Ammonia Converter (R106) including incoming line discharge from heat exchanger (E105)
Node 3
Ammonia Separator (V106) including incoming line discharge from cooler (E120)

62. Node 1

63. HAZOP ANALYSIS: NODE 1 Parameter : Flow Guide Word Deviation
Possible Causes
Consequences
Safeguards
Recommendations NO
No Flow
1. Line (S22) leakage.
2. Loss of feed supply.
3. Blockage inside pipeline (S22).
1. No process gas into the reactor
2. Release of toxic material.
1. Flow indicator is provided.
2. Perform regular schedule inspection on process line.
1. Install gas detection system is provided.
2. Install No Flow alarm

64. Parameter : Flow Guide Word Deviation Possible Causes Consequences
Safeguards
Recommendations
LESS
Less Flow
1. Partially plug line.
2. Control valve failure.
3. Line (S22) leakage.
1. Pressure drop inside the reactor (R105)
2. Less process gas into reactor.
1. Flow indicator is provided.
2. Perform regular schedule inspection on process line.
1. Install gas detection system is provided.

65. Parameter : Flow Guide Word Deviation Possible Causes Consequences
Safeguards
Recommendations
MORE
More Flow
1. Control valve failure.
1. Over pressure inside the reactor.
2. May lead to reactor explosion
3. Undesired product quality
1. Flow indicator is provided.
2. Perform regular schedule inspection on process line.
1. Install gas detection system is provided.
2. Install high flow alarm.

66. Parameter : Temperature
Guide Word
Deviation
Possible Causes
Consequences
Safeguards
Recommendations
LOW
Low Temperature
1. Malfunction of heat exchanger (E117)
1. Rate of reaction is reduced.
1. Temperature indicator is provided to notify the operator.
1. Install low temperature alarm.
HIGH
High Temperature
1. Failure of cooler.
2. Poor heat transfer in the heat exchanger (E117)
1. Temperature build up the reactor
2. May lead to reactor explosion
1. Temperature indicator is provided to notify the operator.
1. Install high temperature alarm.

67. Parameter : Pressure Guide Word Deviation Possible Causes Consequences
Safeguards
Recommendations
LOW
Low Pressure
1. Compressor failure.
2. Pipe leakage.
1. May lead to reverse flow.
1. Pressure indicator is provided to notify operator.
1. Install high temperature alarm.
2. Install Low pressure alarm.
HIGH
High Pressure
1. Failure of pressure relief valve.
2. More process gas into the reactor.
3. Pipe blockage.
1. Pipe vibration.
2. May lead to reactor explosion.
1. Pressure indicator is provided to notify operator.
1. Install high pressure alarm.
2. Install emergency shutdown system.

68. WASTE TREATMENT

69. Generally, the effluent discharge from Ammonia Plant needs to comply with Environmental Quality (Sewage and Industrial Effluents) Regulations, (Regulation 8(1) Third Schedule, Standard A, EQA 1979).
The main consideration in wastewater treatment system is the COD and BOD value.
Parameter
Unit
Standard A B
Temperature °C 40
pH Value -
6.0 – 9.0
5.5 – 9.0
BOD at 20°C
mg/L 20 50
COD
100
Oil and Grease
Not detectable
10.0

70. WASTE STREAM Stream No. Component Composition Flow rate (kg/hour)
Phase W6
Hydrogen %
0.04
Liquid
Nitrogen %
2.89
Carbon dioxide %
173.78
Water %
S 54 %
Gas %
Methane %
294.57
Ammonia %
176.38

71. WASTEWATER STREAM

72. WASTEWATER STREAM

73. WASTEWATER TREATMENT SYSTEM

74. PROCESS ECONOMICS & COST ESTIMATION

75. SOURCES OF RAW MATERIALS AND TRANSPORTATION
Ammonia plant has been identified to be located at Gebeng, Kuantan.
Raw material
Location
Condition
(At ambient)
Unit Price (RM/kg)
Transportation
Storage
Natural Gas
CUF Gebeng
Gas
Piperack network
Central Storage Facility (CTF)
Steam
63.42

76. Other sources such as: Utilities Source Price Raw Water
Loji Air Semambu
RM 0.99/m3
Electricity
Tenaga Nasional Berhad, Tanjung Gelang
RM 0.27/kWh (peak) ;
RM 0.16/kWh (off peak)

77. CAPITAL ESTIMATION Equipment Cost Estimation
Equipment cost estimation using formula given in Douglas.
Example : For pressure vessels, columns, reactors (Douglas, pg 574)
Installed Cost = [(M&S)/280] x 101.9D1.066 x H0.802 x (2.18+Fc)
Where :
M&S : Marshall and Swift Index
D : Diameter
H :Height
Fc : Pressure factor + Material factor
From the equipment cost estimation, we will get Total Bare Cost Model (TBCM).
TBCM for this plant is RM 76,890,675.08

78. CAPITAL ESTIMATION Grass Roof Capital Cost (GRC)
GRC is summation of total module cost (Contingency, fee, TBCM) and Auxiliary facilities
Contingency and fee is estimated as 18% from TBCM.
Auxiliary facilities is estimated as 30% from TBCM.
Grass Roof Capital Cost is RM 113,798,199.12

79. CAPITAL ESTIMATION Fixed Capital Investment (FCI)
Total cost of the plant to be ready for start-up which are direct cost and indirect cost.
To calculate direct cost and indirect cost, estimation was made using factor method.
FCI for this plant is RM 197,811,443.27
Direct cost
Factor
Purchased equipment cost
12% GRC
Instrumentation and control
6% GRC
Piping (installed)
15% GRC
Electrical and material (installed)
3% GRC
Building
8% GRC
Yard improvements
1% GRC
Service facilities
5% GRC
Land
2% GRC
Indirect cost
Factor
Engineering and supervision
3% GRC
Construction expenses
6% GRC
Contractor’s fee
1% GRC
Contingency
8% GRC

80. CAPITAL ESTIMATION Total Capital Investment (TCI)
Summation of FCI, Working capital, and start up cost.
Working capital is estimated at 12% of FCI
Start up cost is estimated at 8% of FCI
TCI for this plan is RM 237,373,731.92

81. OPERATING COST

82. OPERATING COST Variable Operating Cost
Raw materials cost for Ammonia plant (Natural gas + Steam).
Catalyst is estimated as 40% of raw material.
Utilities consist of cooling, heating and electricity .
VOC is RM 128,627,681.36

83. Working period (months)
OPERATING COST
Fixed Operating Cost
Maintenance is estimated as 2% of FCI
Operating labour is as table below :
Plant Overhead is estimated as 50% of Maintenance + Operating Labour
FOC is RM 137,940,807.81
Item
Person
Group
Salary (RM/month)
Working period (months)
Subtotal
Technician 3 4
1,800.00 12
259,200.00
Supervisors 1
2,000.00
96,000.00
Operation Engineers
2,500.00
360,000.00
Total Labor Cost (RM/year)
715,200.00

84. OPERATING COST General Expenses
Administrative 15% of operating labor, Supervision and maintenance
Distribution and Marketing 10% of Total Expenses
Research and Development 5% of Total Expenses
General expenses is RM 20,871,399.03

85. OPERATING COST Total Operating Cost:
Variable Operating Cost + Fixed Operating Cost + General Expenses =

86. PROFITABILITY ANALYSIS
From the discounted cash flow diagram above:
At minimum discount rate of 10%, the net present value is RM550 million with payback time of 5 years

87. From the economic analysis done, the plant is estimated to have a capital investment of RM 404 million.
At discount rate of 10%, the net present value of 550 million is attainable for a project life of 20 years and payback time of 5 years.
With DCFRR of 26.51% and rate of return of 54.00% which is larger than the minimum attractive rate of return of 10%, the project is economically attractive and feasible.

88. CONCLUSION

89. Process of producing 396, 000 tonnes/year of Ammonia has been designed.
Raw material & energy requirements have been calculated.
Process has been designed with heat integration.
Gebeng Industrial Estate Phase IV was selected as a suitable plant location.
Based on economic evaluation, the plant is economically viable and attractive.
Improvement that can be done is the implementation of Hydrogen Recovery Unit (HRU) and Ammonia Recovery Unit (ARU).