C capital cost

Notes Selection index = C + 0 + P + 0.2W + 0.5E + 0.4A Where C = Capital cost 0 = Operating cost P = Process reliability IV = Winterization constraints E = Ease of Operation and A = Operator acceptance Data from Schaack and Chan (1989) ... 

In general, the final network design should be achieved in the minimum number of units to keep down the capital cost (although this is not the only consideration to keep down the capital cost). To minimize the number of imits in Eq. (7.1), L should be zero and C should be a maximum. Assuming L to be zero in the final design is a reasonable assumption. However, what should be assumed about C Consider the network in Fig. 7.16, which has two components. For there to be two components, the heat duties for streams A and B must exactly balance the duties for streams E and F. Also, the heat duties for streams C and D must exactly balance the duties for streams G and H. Such balemces are likely to be unusual and not easy to predict. The safest assumption for C thus appears to be that there will be one component only, i.e., C = 1. This leads to an important special case when the network has a single component and is loop-free. In this case, ... 

A low temperature of approach for the network reduces utihties but raises heat-transfer area requirements. Research has shown that for most of the pubhshed problems, utility costs are normally more important than annualized capital costs. For this reason, AI is chosen eady in the network design as part of the first tier of the solution. The temperature of approach, AI, for the network is not necessarily the same as the minimum temperature of approach, AT that should be used for individual exchangers. This difference is significant for industrial problems in which multiple shells may be necessary to exchange the heat requited for a given match (5). The economic choice for AT depends on whether the process environment is heater- or refrigeration-dependent and on the shape of the composite curves, ie, whether approximately parallel or severely pinched. In cmde-oil units, the range of AI is usually 10—20°C. By definition, AT A AT. The best relative value of these temperature differences depends on the particular problem under study. 

Some processes use only one reactor (57) or a combination of liquid- and vapor-phase reactors (58). The goal of these schemes is to reduce energy consumption and capital cost. Hydrogenation normally is carried out at 2—3 MPa (20—30 atm). Temperature is maintained at 300—350°C to meet a typical specification of less than 500 ppm benzene in the product at higher temperatures, thermodynamic equiUbrium shifts to favor benzene and the benzene specification is impossible to attain. Also, at higher temperatures, isomerization of cyclohexane to methylcyclopentane occurs typically there is a 200 ppm specification limit on methylcyclopentane content. 

As an example, the battery-limits capital cost can be estimated for the production of 10,000 t/yr of ethylene (qv) from ethanol (11). Seven processing blocks, ie, vaporizer, reactor, water quench, compressor, dryer, distillation, and energy recovery, can be identified. The highest temperature is 350°C (reactor), and the highest pressure is about 1.7 MPa (17 atm) (compressor, two towers). If a materials-pressure factor, + of 1.03 is assumed, then for N = 7 0 = 0.87 1/0 = 1 64 and f =0 K = 6.3. This gives the 1981 cost as 4.4 X 10 . The 1991 battery-Hmits investment can be obtained, by updating with the CE Plant Cost Index, as 5.3 x 10 . ... 

Capital Costs The total capital cost Cfc of a project consists of the fixed-capital cost Cpc phis the working-capital cost Cn c, phis the cost of laud and other nondepreciable costs Cp ... 

FIG. 9-6 Effect of straight-line depreciation on rate of return for a project. Abd — annual depreciation allowance A c/ = annual net cash income after tax Awwp = annual net profit after payment of tax Cj = total capital cost. 

Evaporative Cooling of the Turbine. Traditional evaporative coolers that use media for evaporation of the water have been widely used in the gas turbine industry over the years, especially in hot climates with low humidity areas. The low capital cost, installation, and operating costs make it attractive for many turbine-operating scenarios. Evaporation coolers consist of water being sprayed over the media blocks, which are made of fibrous corrugated material. The airflow through these media blocks, evaporates the water, as water evaporates, it consumes about 1059 BTU (1117kJ) (latent heat of vaporization) at 60 °F (15 °C). This results in the reduction... 

Economic factors include (a) the capital cost of the control technology (b) the operating and maintenance costs of the technology and (c) the expected lifetime and salvage value of the equipment. 

Battery types are either lead-acid or nickel-cadmium cells. Lead-acid types have been used for a long time and, when correctly maintained, have a working life of 25 years. Nickel-cadmium batteries offer the same working life as lead-acid but are smaller in weight and volume, generally with a higher initial capital cost. Loads applied to D.C. systems can be categorized into three types ... 

Condensing boilers are now available for both gas- and oil-fired plant, the advantage of these being that the flue gases are further cooled down to below 100°C so that the latent heat available in the flue gas water vapor is recovered. The condensate has to be removed and the boiler capital cost is higher than for conventional plant. However, the boiler plant efficiency is increased to the order of 90 per cent, based upon the fuel gross calorific value. Where the flue gas exit temperatures are in excess of 200° C a further economy can be obtained by the provision of a spray recuperator in the case of gas and flue gas economizers for oil and coal. 

Repeat Problem 4.19 for C = 0.6 and 1.0. Note that more reactors will affect more than just the capital costs. Additional equipment will lower system reliability and increase operating costs. Which value of C is the more conservative Is this value of C also the more conservative when estimating the installed cost of an entire plant based on the cost of a smaller plant ... 

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