Costs, raw material operating

The total capital investment for a generalized 500 MW limestone dual alkali system is estimated at 51.7 million (1980 ), which is equivalent to 103.4/kW (3). This generalized system is assumed to be designed for a 95% SO2 removal efficiency when burning coal containing 3.5% sulfur. The estimated annual operating costs (raw materials, utilities, labor and maintenance, overhead and waste disposal) are estimated at 10.7 million (1980 ) or 3.1 mills/kWh. 

Other techniques for the preparation of butadiene have also been used commercially, including the aldol condensation of acetaldehyde and the reaction of acetylene and formaldehyde. However, these processes are no longer employed commercially. Both India and the former USSR have developed ethanol-based production of butadiene (60-64). While these routes have a major advantage in terms of low capital and operational costs, raw material costs are prohibitive in most areas (47). Such plants are only viable in areas where there is little domestic petroleum but abimdant ethanol supply. 

The gross profit is given by the total revenue less fixed and variable operating costs, raw material costs, transportation costs, and cross-sourcing costs (Equations 3.1-3.13). 

The costs associated with this supply chain include plant construction costs, plant and warehouse fixed operating costs, raw material costs, variable production costs, production quantity change costs, shipping costs, and holding costs. The total cost for a given planning horizon can then be expressed as the sum of these respective costs ... 

First of all, one should note that refining a low cost raw material into low or medium added value products requires extremely delicate optimization. It is out of the question to give them much more than the specifications require thus highlighting the importance of being able to predict the various product yields and qualities that a given crude oil can supply. A profound understanding of crude oils appears therefore indispensable. That is the role of crude oil analysis, an operation traced in part to refining, with the... 

Low pressure methanol carbonylation transformed the market because of lower cost raw materials, gender, lower cost operating conditions, and higher yields. Reaction temperatures are 150—200°C and the reaction is conducted at 3.3—6.6 MPa (33—65 atm). The chief efficiency loss is conversion of carbon monoxide to CO2 and H2 through a water-gas shift as shown. 

Economic evaluations of waste-reduction options should involve a comparison of operating costs to illustrate where cost savings would accrue. For example, a waste-reduction measure that reduces the amount of raw material lost down the drain during the process will reduce raw-material costs. Raw-material substitution or process changes may reduce the amount of solid waste that must be transported offsite, reducing the transport costs for waste disposal. 

There are significant opportunities for industry to reduce or prevent pollution at tlie source tlirough cost-effective changes in production, operation and raw materials use.. . . The opportmiities for source reduction are often not realized because existing regulations, and tlie industrial resources tliey require for compliance, focus upon treatment and disposal, rather tliaii source reduction.. . . Source reduction is fundamentally different and more desirable tlian waste management and pollution control. 

Significant opportunities exist for industry to reduce or prevent pollution through cost-effective changes in production, operation, and raw materials use. In addition, such changes may offer industry substantial savings in reduced raw materials, pollution control, and liability costs, as well as protect the environment and reduce health and safety risks to workers. Where pollution prevention practices can be both environmentally beneficial and economically feasible, one would consider their implementation to be prudent. 

Sensitivity analysis. Uncertainties in the costs of equipment, labor, operation, and raw materials—as well as in future prices received for products—can have a major effect on the evaluation of investments. It is important in appraising the risks involved to know how the outcome... 

When a single-product scheme cannot be sustained, the cost of capital investment may be split among several products. A multiproduct or a multipurpose plant may be designed at a minimum capital cost for the yearly production rates needed. This procedure may lead to a lower product cost. Raw material and operating costs can be minimized simultaneously. Also the operation of the multiplant may be scheduled to attain the minimum operating costs of the various products handled. 

Adhesive compounding also occurs at the end-user level. This is generally done when the end user cannot find a product to meet his or her individual needs, to reduce cost associated with a middleman, or to make use of other materials (e.g., scrap resin, fillers, etc.) that are generated during the course of business. Epoxy adhesives are more conducive to the end user or in-house processor than other polymeric adhesives because of the ease with which the liquid resins can be mixed with other ingredients. Many of these operators buy raw materials from various suppliers and do their own blending and formulating. 

The initial installed cost of the proposed plant is 500,000. It can be assumed that the yearly cost of the new operation minus raw-materials costs will be 40 percent of the initial installed cost. This 40 percent includes fixed charges, overhead, utilities, and all other expenses except raw materials. 

Many operating costs are the same as those for any conventional chemical production process, such as operating labor, raw materials, and equipment maintenance. However, some expenses, such as cleaning optical surfaces or preventing biofilm growth on the photobioreactor surfaces, are unique to photobiological processes. 

Some facilities use electrostatic precipitation for lime kiln dust control, which avoids generation of a wastewater stream. The captured dust can be recycled to the slaker to avoid dust disposal costs and assess the material balance of the operation, reducing raw material costs. 

Sensitivity analysis for costs, raw materials, demand for products, operating conditions. 

Benefits of superior technology in Organic Chemistry are multiple lower cost raw materials, shorter synthesis routes, improved yields, selectivity and kinetics, resulting in better productivity. Higher transformation rates of less hazardous materials leads to healthier, cleaner operations with reduced waste disposal issues. Last but not least, process safety is continually upgraded as more intimate knowledge of chemical reactions and other unit operations is achieved. 

Modern processes emphasize low costs (raw materials, operation, maintenance, etc.), improved efficiency, high quality, safety, and environmental friendliness. These emphases often require that chemical reactions take place at elevated temperatures and pressures in the presence of a catalyst. Therefore, as the CPI modernizes its technologies, process environment may become more corrosive and require more corrosion-resistant equipment to cope with corrosion problems. 

Now suppose we compare this ideal chemical process to a more complex process that is currently in operation by a company to obtain product C, as shown in Figure 10.1. Instead of the ideal case above, there are now four high-cost raw materials (D, E, G, H), two nonvaluable waste products (F, I), three organic solvents, three reaction steps, three separation steps, and a need for supplied heat to make the desired product C. The individual reaction steps themselves are inefficient with conversions much less than 100%. The microscale costs associated with such a process can be substantial. Based on the conversions listed, only 24% of the initial reactants actually end up as viable product. Thus, a large quantity of raw materials (reactants and solvents) would be required to produce a significant quantity of... 

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