Introduction"Chemical Plant Financial Analysis Spreadsheet"brought to you by The Chemical Engineers' Resource Page at:http://www.cheresources.com/To help you optimize your chemical process, use this spreadsheet to calculate the Net Present Value of your variousplant configurations. Simply click into each sheet and complete the cells that are:YellowYou'll find advice along the way in that some values that you may not be sure of are already set.I've included the utility costs the algorithms that appear in the following two references:1. "Analysis, Synthesis, and Design of Chemical Processes", Turton, Richard, et al, Prentice Hall, 19982. "A Guide to Chemical Engineering Process Design and Economics", Ulrich, G.D., Wiley, 1984Be sure to note the economic assumptions made on the "Summary Page". If you're looking for a true economicvalue, these values (along with the utility costs) will have to be updated for your current region or situation.If you are simply evaluating different processes or optimizing, as long as the same values are used for each, thisspreadsheet will function quite nicely, although the true Net Present Value may not be accurate.Finally, all dollar amounts are reported in US dollars.

http://www.cheresources.com/

Fixed Capital InvestmentFixed Capital InvestmentEquipmentNameInstalled CostNameInstalled CostC-301 A/B$993,028R-301 (F)$7,515,317Total$27,565,556P-301 A/B$95,624Fixed Capital InvestmentP-302 A/B$136,988Multiplier=1.5(Default is 1.5)P-303 A/B$37,576FCI$41,348,334P-304 A/B$32,120E-301$302,252E-302$277,250E-303$2,756,200E-304$9,220,222E-305$21,419FIC's$4,800LIC's$4,000V-301$129,576T-301$2,819,369T-302$638,051T-303$2,581,764X-301$0

List your equipment by name and installed cost. Then enter the Fixed Capital Investment Multiplier. This multiplier will take into account the additional cost associated with building the plant.

There is a large difference between purchased cost and the installed cost of a piece of equipment. If you only know the purchased cost, you can multiply this cost by a "Lang" factor as shown below:

4.74 for Fluid Processing Plants3.63 for Solid-Fluid Processing Plants3.10 for Solid Processing Plants

Operating LaborOperating LaborScroll DownEquipmentNameInstalled CostNameInstalled CostEquipmentOperators per ShiftC-301 A/B$993,0280$0Auxiliary FacilitiesR-301 (F)$7,515,3170$0Air Plants1.0P-301 A/B$95,6240$0Boilers1.0P-302 A/B$136,9880$0Chimneys and Stacks0.0P-303 A/B$37,5760$0Cooling Towers1.0P-304 A/B$32,1200$0Water Demineralizers0.5E-301$302,2520$0Electric Generation Plants0.5E-302$277,2500$0Portable Generation Plants3.0E-303$2,756,2000$0Electric Substations0.0E-304$9,220,2220$0Incinerators2.0E-305$21,4190$0Mechanical Refrigeration Units0.5FIC's$4,8000$0Waste Water Treatment Plants2.0LIC's$4,0000$0Water Treatment Plants2.0V-301$129,5760$0Process EquipmentT-301$2,819,3690$0Evaporators0.30T-302$638,0510$0Vaporizers0.05T-303$2,581,7640$0Furnaces0.50X-301$00$0Fans0.050$00$0Blowers and Compressors0.150$00$0Heat Exchangers0.100$00$0Towers0.350$00$0Vessels0.000$00$0Pumps0.00Reactors0.50Enter the expected annual salaries of operators in the plant$46,000USNow based on the equipment list that you have above, enter the total number of each type of unit in the space below.You may not have auxiliary equipment in your list, but you should enter the number of pieces below.For example, if you have 6 heat exchangers in your equipment list, you should enter "6" under "heat exchangers".Also, if you have heat exchangers with cooling water in them, you'll probably have at least one cooling tower as well.Equipment# of unitsOperators per shiftAuxiliary FacilitiesAir Plants0.00Boilers0.00Chimneys and Stacks0.00Cooling Towers0.00Total Number of Operators Needed =0Water Demineralizers0.00Electric Generation Plants0.00Annual Cost of Operating Labor (Col) =$0Portable Generation Plants0.00Electric Substations0.00Incinerators0.00Mechanical Refrigeration Units0.00Waste Water Treatment Plants0.00Water Treatment Plants0.00Process EquipmentEvaporators0.00Vaporizers0.00Furnaces0.00Fans0.00Blowers and Compressors0.00Heat Exchangers0.00Towers0.00Vessels0.00Pumps0.00Reactors0.00

UtilitiesUtilitiesScroll RightScroll DownUtility costs vary widely from region to region, you can change these values as you see fitEquipment(enter a description)(Calc from Table at Left)NameUtility TypeAnnual Utility CostUtilityDescriptionCost $/GJCost $/common unitC-301 A/BAir SupplyPressurized and DriedR-301 (F)a. Process$2.30per 100 m3P-301 A/Bb. Instrument$4.70per 100 m3P-302 A/BSteam from BoilersProcess Steam: Latent HeatP-303 A/Ba. Low Pressure (5 barg, 160 0C)$3.17$6.62per 1000 kgP-304 A/Bb. Medium Pressure (10 barg, 184 0C)$3.66$7.31per 1000 kgE-301c. High Pressure (41 barg, 254 0C)$5.09$8.65per 1000 kgE-302Cooling Tower WaterProcess Cooling WaterE-30330 0C to 40-45 0C$6.70per 1000 m3E-304Other WaterHigh purity water forE-305a. Process Use$0.04per 1000 kgFIC'sb. Boiler Feed Water$2.54per 1000 kg**This can also be used as condensateLIC'sc. Potable (drinking)$0.26per 1000 kgreturn credit amountV-301Total Utility Cost per Year (Cut) =$0.00d. Deionized Water$1.00per 1000 kgT-301Electrical SubstationElectric DistributionT-302110V, 220V, 440V$16.80$0.06per kWhT-303Fuelsa. Fuel Oil (no. 2)$4.00$170.00per m3X-301b. Natural Gas$2.50$0.09per std m3**Based on lower heating value0c. Coal (FOB mine mouth)$1.20$31.00per metric tonne0Refrigerationa. Moderately Low Temp: 5 0C$20.00Process cooling duty0b. Low Temp: -20 0C$32.00Process cooling duty0c. Very Low Temp: -50 0C$60.00Process cooling duty0Thermal Oil Systemsa. Moderately High Temp: to 330 0C$4.90Process heating duty0b. High Temp: to 400 0C$5.20Process heating duty0c. Very High Temp: to 600 0C$5.90Process heating duty0Waste Disposala. Non-Hazardous$36.00per metric tonne0b. Hazardous$145.00per metric tonne0Waste Water Treatmenta. Primary$39.00per 1000 m30(filtration)0b. Secondary$41.00per 1000 m30(filtration + activated sludge)0c. Tertiary$53.00per 1000 m30(filtration, activated sludge, chem proc)0000000000000Utility Cost Not Associated with EquipmentDescriptionUtility Cost

As an example, let's say that your reactor needs to be mainted at 350 0C by a Therminol or Dowtherm loop within the plant. The heating duty turns out to be about 75,000 GJ per year. Your utility calculation for the reactor would be:

(75,000 GJ/year) x ($5.2/GJ) = $390,000 per year

The $5.2/GJ is from the utility table under thermal systems

Raw Materials and ProfitsRaw Materials and ProfitsEnter any raw material costs. Remember that sometimes, utilities can be used as raw materials.Some processes may utilize low pressure steam as a reactor feed for example.Raw MaterialAnnual CostLPS$945,000.00Propylene$18,344,000.00De. Water$20,304.00Total Annual Raw Material Cost (Crm) =$19,309,304.00Enter any profits. These should consists of your main, salable reaction products as well as any generated utilitiesthat can be sold. Low pressure steam, for example, can be generated in heat exchangers and sold to other facilities.Or condensed steam can be credited as boiler feed water at timesProfit MaterialAnnual ProfitAcrylic Acid$96,053,000.00Acetic Acid$24,345,000.00Boiler Feed Water$6,235,000.00Total Annual Profits =$126,633,000.00

SummaryTotal Installed Cost:Operating Labor$27,565,556Col =$0FCI$41,348,334UtilitiesRaw MaterialsCut=$0Crm=$19,309,304Profit from ProductsAnnual Revenue=$126,633,000Financial OutlookCOM=$31,193,144.04(without depreciation)**assume 15% of FCI as salvage value**CumulativeYearDepreciationFCI-deprec.RevenueCOMCash FlowDiscount CashDiscounted0-$41,348,334--($20,674,167)($20,674,167)($20,674,167)1-$41,348,334--($20,674,167)($19,142,747)($39,816,914)2$8,269,667$33,078,667$126,633,000$31,193,144$60,571,780$51,930,539$12,113,6243$10,585,174$22,493,494$126,633,000$31,193,144$61,497,983$48,819,082$60,932,7064$4,318,751$18,174,743$126,633,000$31,193,144$58,991,414$43,360,450$104,293,1565$3,489,551$14,685,192$126,633,000$31,193,144$58,659,734$39,922,829$144,215,9866$1,409,778$13,275,414$126,633,000$31,193,144$57,827,825$36,441,339$180,657,3247-$13,275,414$126,633,000$31,193,144$57,263,914$33,412,944$214,070,2688-$13,275,414$126,633,000$31,193,144$57,263,914$30,937,911$245,008,1799-$13,275,414$126,633,000$31,193,144$57,263,914$28,646,214$273,654,39210-$13,275,414$126,633,000$31,193,144$57,263,914$26,524,272$300,178,66411-$13,275,414$126,633,000$31,193,144$63,466,164$27,219,550$327,398,214Taxation rate=0.4Discount rate=0.08NPV=$327,398,214(Net Present Value)

&CTable A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop includedThe following assumptions are made in the cash sheet shown below:1. Two years for construction of plant2. Five year depreciation schedule3. 10 year plant operating life4. Cost of constructing the plant is spread over two years5. Taxation rate is defaulted to 40%, but can be changed below6. The discounted cash flow rate is set at 8%, but can be changed below7. Optimization function used is "Net Present Value"