ISBL capital cost

C2 = ISBL capital cost of the plant with capacity S2 ... 

Experienced design engineers can often figure out costs of plant sections from historic total plant costs. For example, in many petrochemical processes, roughly 20% of ISBL capital cost is in the reactor section and 80% is in the distillation and product purification sections. 

ISBL capital cost in U.S., U.S. Gulf Coast, 2000 basis ... 

Estimate the installed ISBL capital cost of the modification if the plant is to be built from type 304 stainless steel. Estimate the cost using both Hand s method and the factors given in Table 6.4. 

A preliminary (Class 4) estimate of the ISBL capital cost of building a 200,000 ton per year ethanol plant by corn dry milling has been stated as 130 MM —30%/+50%. The plant is to be built on a green-field site, and offsite costs are estimated to be between 40 MM and 60 MM. Estimate a value for the total project cost that will give 98% confidence that the project can be carried out within the amount estimated. 

Lang (1948) proposed that the ISBL fixed capital cost of a plant is given as a function of the total purchased equipment cost by the equation... 

Calculate the ISBL installed capital cost, using the factors given in Table 6.4 and correcting for materials of construction using equation 6.13 or 6.14 with the materials factors given in Table 6.5. 

The OSBL capital cost is estimated as 40% of ISBL cost. The engineering cost and contingency are estimated as 10% and 15% of the sum (ISBL + OSBL) cost, respectively, giving a total fixed capital cost of 361.3 MM. 

The concept of a contingency charge to allow for variation in the capital cost estimate was introduced in Section 6.2.1, where it was suggested that a minimum contingency charge of 10% of ISBL plus OSBL fixed capital should be used. 

Catalytic distillation essentially eliminates catalyst fouling because the fractionation removes heavy coke precursors from the catalyst zone before coke can form and foul the catalyst bed. The estimated ISBL (inside battery limits) capital cost for 35,000bpd CDHydro/CDHDS unit with 92% desulfurization is US 25 million, and the direct operating cost including utilities, catalyst, hydrogen, and octane replace-... 

In the site wide energy optimization project, five energy improvement ideas among many others were generated and evaluated at stand-alone basis. The benefits and capital costs for these improvement ideas are given in Table 20.1. These assessment results were obtained at the process ISBL. 

The evaluation results in Table 20.1 show large benefits of these improvement ideas based on the ISBL level. If decisions for project selection were made at this ISBL level, these options could be selected for implementation due to large benefits compared with relatively low capital costs. To avoid the bad investment decisions and determine the true benefits for these ideas, the effects on incremental steam, power, BFW, and fuel balances are assessed in detail as follows. 

The common mistake observed is the capital cost estimate for a retrofit project being too low compared with reality. The main reason is that it does not include installation and the outside system battery limit (OSBL) cost, which could be as expensive as the inside system battery limit (ISBL) cost. This topic is discussed in Section 22.6. 

The economics of the site must be analysed for technical feasibility. The netback is calculated by subtracting the annualised capital and operating costs from the annualised products sales price to set the upper bound of the annualised feedstock cost. If the annualised feedstock market price is less than the netback estimated, the plant will make money. The capital cost is evaluated in terms of the direct (inside and outside battery limits, i.e. ISBL and OSBL) and indirect capital costs. The ISBL comprises the cost of equipment which can be estimated using... 

Capital investment costs can be divided into two categories (1) costs that are independent of the location (Inside Battery Limits, ISBL), and (2) costs that are dependent on the location (Outside Battery Limits, OSBL). 

Rent of land (and/or buildings)—typically estimated as 1 to 2% of ISBL plus OSBL investment. Most projects assume land is rented rather than purchased, but in some cases the land is bought and the cost is added to the fixed capital investment and recovered at the end of the plant life. 

The sum of ISBL, OSBL, engineering, and contingency costs is the fixed capital investment. 

If we also assume engineering costs are 10% of (ISBL + OSBL) capital investment and add 15% of (ISBL + OSBL) capital as contingency, then with a 10-year plant life and a 15% interest rate, the annual capital charge ratio is... 

An important reason for preparing study reports is to determine the capital expenditure (investment) of a project [Muthmann, 1984, Prinzing 1985, DAdda 1997]. This is made up of the location-independent ISBL (inside battery limits) process plant costs such as investment in the production plant and the associated control rooms, laboratories, employee facilities, tank farms, and loading and unloading stations, as well as the location-dependent OSBL (outside battery limits) costs of all the service facilities. 

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