06
Jong Min Lee
School of Chemical and Biological Engineering Seoul National University
Estimation of Capital Costs
Estimation of Capital Costs 06
Project Cost Estimation
• Bill of Material (B/M) -
견적서• Total Investment Cost (TIC)
-
Fixed Investment Capital (FIC) + Working Capital (WC)• Fixed Capital Investment (고정투자비)
-
All the costs associated with building the plant-
Most of FIC depreciated except land• Working Capital (시운전동안 안정적으로 운전하기 위한 비용)
-
The amount of capital required to start up the plant and finance the first few months of operation before revenues from the process start-
15 ~ 25% of the fixed capital investmentTypes of Capital Cost Estimates
1. Order-of-Magnitude Estimate (Feasibility) - AACE Class 5 - +40%, -20%
- BFD, process modification (이전의 공장을 가지고 capa비교 산정)
2. Study Estimate / Major Equipment - AACE Class 4 - +30%, -20%
- PFD, cost chart, roughly sized major equipment
3. Preliminary Design (Scope) Estimate - AACE Class 3 - +25%, -15%
- PFD, vessel sketches, equip. diagrams, plot plan / Major equip. + piping + instr. + elec. + util
4. Definitive (Project Control) Estimate - AACE Class 2 - +15%, -7%
- PFD, P&ID, all vessel sketches, equip. diagrams, preliminary isometrics
3
Estimation of Capital Costs 06
Types of Capital Cost Estimates
5. Detailed (Firm or Contractors) Estimate - AACE Class 1 - +6%, -4%
- Everything included - ready to go to construction phase
- Complete engineering, vendor quote
• Estimate low so actual cost will be high (+)
• Estimate high so actual cost will be low (-)
• Why is + # > -# ?
5
Estimation of Capital Costs 06
Example-01
The estimated capital cost for a chemical plant using the study estimate method (Class 4) was calculated to be $2 million. If the plant were to be built, over what range would you expect the actual capital estimate to vary?
Solution-01
Lowest Expected Cost Range
7
Example-01
The estimated capital cost for a chemical plant using the study estimate method (Class 4) was calculated to be $2 million. If the plant were to be built, over what range would you expect the actual capital estimate to vary?
Solution-01
Highest Expected Cost Range
Estimation of Capital Costs 06
Capital Cost Estimate
• Order of Magnitude (Rule of Thumb) - Based on the plant capacity
‣ Production rate or feed processing rate
- Typical figure (example)
‣ $2,500/kW for coal fired power plant
‣ $25,000/bpsd of crude oil processing in the refinery complex plant
• Cost Curve
- Capacity of process unit as the x-axis and the cost as the y- axis in the log-log chart
- Cost calculation basis: the scope of plant
Capacity Factored Estimate (CFE)
9
The plant capital cost (by Lang): based on the variation in the plant size
Plant A Cost
Plant B Cost = Plant A Capacity Plant B Capacity
n
n
: between 0.5 and 0.85, and 0.6 in average (Accuracy: 25~50%)exponent, n Type of Chemical Plant
0.8~0.9 Gas compression plant with many machineries (Methanol plant) 0.7 Petrochemical plant
0.4~0.5 Small plant, but instrumentation is well provided 0.6 Average value for most chemical plants
Estimation of Capital Costs 06
Capacity Factored Estimate (CFE)
CFE Formula for Refinery Process Units
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Capital Cost (MM$) = ↵ ⇥ capacity
Process Unit 𝜶 β Unit
ADU 8.20 0.510 1,000 bpsd
VDU 8.34 0.493 1,000 bpsd
Delayed Coker, 10 bbl feed/ton coke 17.56 0.657 1,000 bpsd Delayed Coker, 30 bbl feed/ton coke 24.42 0.644 1,000 bpsd
FCC 24.67 0.461 1,000 bpsd
RFCC 32.98 0.510 1,000 bpsd
Hydrocracker, 1000 scf/bbl H2 15.65 0.719 1,000 bpsd
Hydrocracker, 3000 scf/bbl H2 26.18 0.714 1,000 bpsd
NHT 4.96 0.524 1,000 bpsd
DHT 8.62 0.576 1,000 bpsd
ARDS 8.61 0.834 1,000 bpsd
CCR 12.19 0.547 1,000 bpsd
Capacity Factored Estimate (CFE)
11
CFE Formula for Refinery Process Units
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Capital Cost (MM$) = ↵ ⇥ capacity
Process Unit 𝜶 β Unit
C4 Isomerization 9.57 0.514 1,000 bpsd
C5/C6 Isomerization, once through 3.11 0.565 1,000 bpsd
C5/C6 Isomerization, recycle 6.17 0.599 1,000 bpsd
Alkylation 12.19 0.606 1,000 bpsd
H2 Production, Steam methane reforming 3.35 0.599 MMscfd
Partial oxidation 5.44 0.601 MMscfd
Gas Processing, 1 gal/Mscf 1.91 0.627 MMscfd
Gas Processing, 10 gal/Mscf 4.38 0.593 MMscfd
Gas Processing, 20 gal/Mscf 5.83 0.610 MMscfd
Amine Gas Treating 0.064 0.746 MMscfd
SRU 0.064 0.746 ton/day
Estimation of Capital Costs 06
Capacity Factored Estimate (CFE)
CFE Formula for Chemical Process Unit
Plant A Cost
Plant B Cost = Plant A Capacity Plant B Capacity
n
Chemical Process Unit Exponent (n)
AN 0.6
BD 0.68
Chlorine 0.45
Ethanol 0.73
EO 0.78
HCl 0.68
Hydrogen Peroxide 0.75
Methanol 0.60
Nitric Acid 0.60
Chemical Process Unit Exponent (n)
Phenol 0.75
PP 0.70
PVC 0.60
Sulfuric Acid 0.65
Styrene 0.60
Urea 0.65
Vinyl Acetate 0.80
Estimating Purchased Equip. Costs
• Vendor quote
- Most accurate
‣ based on specific information
‣ requires significant engineering
• Use previous cost on similar equipment and scale for time and size
- Reasonably accurate
‣ beware of large extrapolation
‣ beware of foreign currency
• Use cost estimating charts and scale for time
- Less accurate
- Convenient
13
Estimation of Capital Costs 06
Effect of Size: Equipment Factored Estimate (EFE)
C a C b =
✓ A a A b
◆ n
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Cost
Equipment Cost Attribute - Size
Cost Exponent (7.1)
C
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where K = C b A n b
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a: equipment with the required attribute b: equipment with the base attribute n: varies between 0.30 and 0.84. often around 0.6 (six-tenth rule)
Note: 본 방법이 플랜트 전체 투자 비용 산정에 쓰인다면 Capacity Factored Estimate (CFE)으로 불리운다.
Table 7.3
15
With the six-tenths rule, the % increase in purchased cost when the capacity of a piece of equipment is doubled will be
C a /C b = (2/1) 0.6 = 1.52
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Even though the equipment capacity was doubled, the purchased cost of the equipment increased by only 52%.
__________________: The larger the equipment, the lower the cost of equipment per unit of capacity
Estimation of Capital Costs 06
Example-02
A new plant ordered a set of floating head heat exchangers (area = 100 m 2 ) cost $92,000. What would cost be for a heat exchanger for similar service if area = 50 m 2 and n = 0.44?
Solution-02
K = C b
A n b = 92, 000
100 0.44 = 12, 128
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Effect of Time
• Time increases - cost increases (inflation)
• Inflation is measured by cost indexes (Fig. 7.3)
- Chemical Engineering Plant Cost Index (CEPCI); our textbook uses this
- Marshall and Swift Process Industry Index (generally accepted)
• Numbers based on basket of goods typical for construction of chemical plants (Table 7.5)
17
Estimation of Capital Costs 06
Location Factor
• Transportation cost
• Taxes
• Labor supply and local productivity
• Codes and local inspection
Country Region Location Factor
Russia 1.53
India 1.02
ME 1.07
China Imported 1.12
Indigenous 0.61
US Gulf Coast 1.00
Equation for Time Effect
19
C 2 = C 1
✓ I 2 I 1
◆
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C = Cost
I = Value of cost index
1, 2 = Represents points in time at which costs required or known and index values known
Example-03
Cost of vessel in 1996 was $25,000, what is estimated cost in 2010?
Solution-03
$25, 000 ⇥
✓ 551 382
◆
= $36, 000
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Estimation of Capital Costs 06
Example-04
2 heat exchangers, 1 bought in 1990 and the other in 1995 for the same service
A B
Area 70 m 2 130 m 2
Time 1990 1995
Cost 17,000 24,000
I 358 381
What is the cost of a 80m 2 heat exchanger today? (I = 582)
21
Solution-04
Cost today (A) = (Cost in 1990) ⇥ (Capacity Correction) ⇥ (Inflation Correction)
= 17, 000 ⇥ (80/70) 0.59 ⇥ (582/358)
= 29, 900
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Cost today (B) = (Cost in 1995) ⇥ (Capacity Correction) ⇥ (Inflation Correction)
= 24, 000 ⇥ (80/130) 0.59 ⇥ (582/381)
= 27, 500
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Estimation of Capital Costs 06
Total Cost of Plant
• Purchased cost - equipment f.o.b. (free on board)
• Installed cost - often 3 to 8 times larger than purchased cost
• Installed cost of equipment (Table 7.6) - 1. Direct Project Expenses
‣ Equipment
‣ Material for installation
‣ Labor for installation
- 2. Indirect Project Expenses
‣ Freight, insurance, and taxes
‣ Construction overhead
‣ Contractor engineering expenses
Total Cost of Plant
• Installed cost of equipment (Table 7.6) - 3. Contingency and Fee
‣ Contingency
‣ Contractor fee
- 4. Auxiliary Facilities
‣ Site development
‣ Auxiliary buildings
‣ Off-sites and utilities
23
Estimation of Capital Costs 06
Lang Factors (Table 7.7)
• The cost to build a major expansion to an existing chemical plant
• Use multiplier depending on type of plant to escalate equipment costs to installed costs
• F lang = 4.74 Fluid processing plant
= 3.63 Solid-fluid processing plant = 3.10 Solid processing plant
C T M = F lang X n
i=1
C pi
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Capital (total module) cost
Purchased cost of major equipment from preliminary PFD
(pumps, compressors, vessels, etc.) Note: Equipment Factored Estimate (EFE) 의 한 방법이다.
cf) CFE
Module Factor Approach (Table 7.8)
• A common technique to estimate the cost of a new chemical plant introduced by Guthrie
• Also referred to as “Module Costing Technique”
• Relates all costs back to the purchased cost of equipment of base conditions
• Multiplying factors depend on -
Equipment type, Pressure, MOC• Direct, indirect, contingency, and fees are expressed as functions (multipliers) of purchased equipment cost ( ) at base conditions (1 bar and CS)
• Details given in Appendix A
• Bare module cost = direct and indirect costs for each unit
25
C p 0
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Estimation of Capital Costs 06
Module Factor Approach (Table 7.8)
C BM = C p 0 F BM
<latexit sha1_base64="fQ2kgJnWnyOhQfeNptBo9G1tTFY=">AAAB/nicbVDLSsNAFL3xWesrKq7cDBbBVUlU0I1QLIgboYJ9QBvDZDpph04mYWYilFDwV9y4UMSt3+HOv3GadqGtBy6cOede5t4TJJwp7Tjf1sLi0vLKamGtuL6xubVt7+w2VJxKQusk5rFsBVhRzgSta6Y5bSWS4ijgtBkMqmO/+UilYrG418OEehHuCRYygrWRfHu/6mdXtyN0iap+8uCg6/zp2yWn7ORA88SdkhJMUfPtr043JmlEhSYcK9V2nUR7GZaaEU5HxU6qaILJAPdo21CBI6q8LF9/hI6M0kVhLE0JjXL190SGI6WGUWA6I6z7atYbi/957VSHF17GRJJqKsjkozDlSMdonAXqMkmJ5kNDMJHM7IpIH0tMtEmsaEJwZ0+eJ42Tsntadu/OSpXKNI4CHMAhHIML51CBG6hBHQhk8Ayv8GY9WS/Wu/UxaV2wpjN78AfW5w/C8ZQQ</latexit>
Bare Module Cost Purchased equipment cost for CS and 1 atm pressure (Appendix A)
Bare module factor (sum of all multipliers)
F BM = B 1 + B 2 F p F M
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F 0 BM = B 1 + B 2
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F
<latexit sha1_base64="yRstABLHGU0qtra44zNlFsKpJDs=">AAAB7HicbVBNS8NAEJ3Ur1q/qh69LBbBU0lU0GNBEI8VTFtoQ9lsN+3SzSbsToQS+hu8eFDEqz/Im//GbZuDtj4YeLw3w8y8MJXCoOt+O6W19Y3NrfJ2ZWd3b/+genjUMkmmGfdZIhPdCanhUijuo0DJO6nmNA4lb4fj25nffuLaiEQ94iTlQUyHSkSCUbSSf9fPm9N+tebW3TnIKvEKUoMCzX71qzdIWBZzhUxSY7qem2KQU42CST6t9DLDU8rGdMi7lioacxPk82On5MwqAxIl2pZCMld/T+Q0NmYSh7Yzpjgyy95M/M/rZhjdBLlQaYZcscWiKJMEEzL7nAyE5gzlxBLKtLC3EjaimjK0+VRsCN7yy6ukdVH3Luvew1Wt0SjiKMMJnMI5eHANDbiHJvjAQMAzvMKbo5wX5935WLSWnGLmGP7A+fwBszOOmg==</latexit>P = pressure factor
F M
<latexit sha1_base64="vfiB8IJwJ+mHkXao7WoD6OeFVqk=">AAAB7HicbVBNS8NAEJ3Ur1q/qh69LBbBU0lU0GNBEC9CBWMLbSib7aRdutmE3Y1QQn+DFw+KePUHefPfuG1z0NYHA4/3ZpiZF6aCa+O6305pZXVtfaO8Wdna3tndq+4fPOokUwx9lohEtUOqUXCJvuFGYDtVSONQYCscXU/91hMqzRP5YMYpBjEdSB5xRo2V/JtefjfpVWtu3Z2BLBOvIDUo0OxVv7r9hGUxSsME1brjuakJcqoMZwInlW6mMaVsRAfYsVTSGHWQz46dkBOr9EmUKFvSkJn6eyKnsdbjOLSdMTVDvehNxf+8TmaiqyDnMs0MSjZfFGWCmIRMPyd9rpAZMbaEMsXtrYQNqaLM2HwqNgRv8eVl8nhW987r3v1FrdEo4ijDERzDKXhwCQ24hSb4wIDDM7zCmyOdF+fd+Zi3lpxi5hD+wPn8Aa6kjpc=</latexit>
= material of construction factor (= 1 for CS)
C p = C p 0 F p F M
<latexit sha1_base64="CGjSHk7vAsVi4sXTgucLGHW29jc=">AAAB/HicbZDLSgMxFIbP1Futt9Eu3QSL4KrMqKAboVAoboQK9gLtOGTSTBuayQxJRhiG+ipuXCji1gdx59uYXhZaPZDw8f/nkJM/SDhT2nG+rMLK6tr6RnGztLW9s7tn7x+0VZxKQlsk5rHsBlhRzgRtaaY57SaS4ijgtBOM61O/80ClYrG401lCvQgPBQsZwdpIvl2u+wm6Qua+d1DDcMO/8e2KU3Vmhf6Cu4AKLKrp25/9QUzSiApNOFaq5zqJ9nIsNSOcTkr9VNEEkzEe0p5BgSOqvHy2/AQdG2WAwliaIzSaqT8nchwplUWB6YywHqllbyr+5/VSHV56ORNJqqkg84fClCMdo2kSaMAkJZpnBjCRzOyKyAhLTLTJq2RCcJe//Bfap1X3rOrenldqtUUcRTiEIzgBFy6gBtfQhBYQyOAJXuDVerSerTfrfd5asBYzZfhV1sc3uk+S4A==</latexit>
27
Example-04
The purchased cost for a carbon steel heat exchanger operating at ambient pressure is $10,000. For a heat-exchanger module, Guthrie provides the following cost information:
Item % of Purchased Equip. Cost
Equipment 100.0
Materials 71.4
Labor 63.0
Freight 8.0
Overhead 63.4
Engineering 23.3
Using the information given above, determine the equivalent cost
multipliers given in Table 7.8, bare module cost factor, and bare module cost.
Estimation of Capital Costs 06
↵
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C M = ↵ M C p 0
<latexit sha1_base64="2wrM5Wj9KjndGx2EOqev8j0eTcw=">AAAB/nicbZDLSgMxFIYzXmu9jYorN8EiuCozKuhGKHTjRqhgL9COw5k004ZmMiHJCGUo+CpuXCji1udw59uYXhba+kPg4z/ncE7+SHKmjed9O0vLK6tr64WN4ubW9s6uu7ff0GmmCK2TlKeqFYGmnAlaN8xw2pKKQhJx2owG1XG9+UiVZqm4N0NJgwR6gsWMgLFW6B5Ww1t8jTvAZR8sVkP54OHQLXllbyK8CP4MSmimWuh+dbopyRIqDOGgddv3pAlyUIYRTkfFTqapBDKAHm1bFJBQHeST80f4xDpdHKfKPmHwxP09kUOi9TCJbGcCpq/na2Pzv1o7M/FVkDMhM0MFmS6KM45NisdZ4C5TlBg+tABEMXsrJn1QQIxNrGhD8Oe/vAiNs7J/XvbvLkqVyiyOAjpCx+gU+egSVdANqqE6IihHz+gVvTlPzovz7nxMW5ec2cwB+iPn8wdtTJPY</latexit>
71.4 = ↵ M 100
<latexit sha1_base64="zm7DZnBYGvYRqxefZte2tf6UJQA=">AAAB/XicbVDLSsNAFL2pr1pf8bFzM1gEVyHRQt0IBTduhAr2AW0Ik+mkHTqZhJmJUEvxV9y4UMSt/+HOv3HaZqGtBy4czrmXe+8JU86Udt1vq7Cyura+UdwsbW3v7O7Z+wdNlWSS0AZJeCLbIVaUM0EbmmlO26mkOA45bYXD66nfeqBSsUTc61FK/Rj3BYsYwdpIgX1U9ZwKukKoi3k6wMEt8lw3sMuu486AlomXkzLkqAf2V7eXkCymQhOOlep4bqr9MZaaEU4npW6maIrJEPdpx1CBY6r88ez6CTo1Sg9FiTQlNJqpvyfGOFZqFIemM8Z6oBa9qfif18l0dOmPmUgzTQWZL4oyjnSCplGgHpOUaD4yBBPJzK2IDLDERJvASiYEb/HlZdI8d7wLx7urlGu1PI4iHMMJnIEHVajBDdShAQQe4Rle4c16sl6sd+tj3lqw8plD+APr8wdj3pKa</latexit>
Direct Cost: Labor
C L = ↵ L (C p 0 + C M ) = ↵ L (1 + ↵ M )C p 0
<latexit sha1_base64="wcie0VLRPAOpImVQuzxLfoJ+h48=">AAACJnicbVDNS8MwHE39nPOr6tFLcAgTYbQq6GUw6MWDwgT3AVstaZZuYWkbklQYZX+NF/8VLx4mIt78U8y6grr5IPDy3vuR/J7PGZXKsj6NpeWV1bX1wkZxc2t7Z9fc22/KOBGYNHDMYtH2kSSMRqShqGKkzQVBoc9Iyx86U7/1SISkcXSvRpy4IepHNKAYKS15ZtXxbmAVwi5ifIA0Lzsef7DgKXS82xPt/Bi2FvObdrKYZ5asipUBLhI7JyWQo+6Zk24vxklIIoUZkrJjW1y5KRKKYkbGxW4iCUd4iPqko2mEQiLdNFtzDI+10oNBLPSJFMzU3xMpCqUchb5OhkgN5Lw3Ff/zOokKrtyURjxRJMKzh4KEQRXDaWewRwXBio00QVhQ/VeIB0ggrHSzRV2CPb/yImmeVezzin13UarV8joK4BAcgTKwwSWogWtQBw2AwRN4ARPwZjwbr8a78TGLLhn5zAH4A+PrG8ePoHY=</latexit>
63.0 = ↵ L (1 + 0.714)100
<latexit sha1_base64="dJi6LFY6MgbzwxXAN46ya9dEq0o=">AAACCXicbVC7SgNBFJ2Nrxhfq5Y2g0GICMuMCcZGCNhYWEQwD0iWZXYySYbMPpiZFcKS1sZfsbFQxNY/sPNvnCRbaOKBC4dz7uXee/xYcKUR+rZyK6tr6xv5zcLW9s7unr1/0FRRIilr0EhEsu0TxQQPWUNzLVg7lowEvmAtf3Q99VsPTCoehfd6HDM3IIOQ9zkl2kieDS/KDoJXEHaJiIfEu4UlDM8gcqq4cgoxQp5dRA6aAS4TnJEiyFD37K9uL6JJwEJNBVGqg1Gs3ZRIzalgk0I3USwmdEQGrGNoSAKm3HT2yQSeGKUH+5E0FWo4U39PpCRQahz4pjMgeqgWvan4n9dJdP/STXkYJ5qFdL6onwioIziNBfa4ZFSLsSGESm5uhXRIJKHahFcwIeDFl5dJ89zBZQffVYq1WhZHHhyBY1ACGFRBDdyAOmgACh7BM3gFb9aT9WK9Wx/z1pyVzRyCP7A+fwB205UV</latexit>
↵ L = 0.368
<latexit sha1_base64="AISzbjnOKAw8yP7Htescf9hiNVY=">AAAB+XicbVBNS8NAEN3Ur1q/oh69LBbBU0hUtBeh4MWDhwr2A9oQJttNu3SzCbubQgn9J148KOLVf+LNf+O2zUFbHww83pthZl6Ycqa0635bpbX1jc2t8nZlZ3dv/8A+PGqpJJOENknCE9kJQVHOBG1qpjntpJJCHHLaDkd3M789plKxRDzpSUr9GAaCRYyANlJg2z3g6RCCB3yLXefyuhbYVddx58CrxCtIFRVoBPZXr5+QLKZCEw5KdT031X4OUjPC6bTSyxRNgYxgQLuGCoip8vP55VN8ZpQ+jhJpSmg8V39P5BArNYlD0xmDHqplbyb+53UzHdX8nIk001SQxaIo41gneBYD7jNJieYTQ4BIZm7FZAgSiDZhVUwI3vLLq6R14XiXjvd4Va3XizjK6ASdonPkoRtUR/eogZqIoDF6Rq/ozcqtF+vd+li0lqxi5hj9gfX5A9sjkdU=</latexit>
Similarly, multiplying factors for indirect costs (freight, overhead, and engineering) can be obtained.
F BM 0 = (1 + 0.368 + 0.047 + (1.005)(0.368) + 0.136)(1 + 0.714) = 3.291
<latexit sha1_base64="IAZQrNS1/pcDFnUogbyCYLV7YII=">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</latexit>
C
<latexit sha1_base64="s0r/zHFcso7F0upiPOstj4DhQA4=">AAACEHicbVBLS0JBFJ5rL7PXrZZthjRSEJnRoFwEkps2gUE+QE3mjqMOzn0wMzeQiz+hTX+lTYsi2rZs179pfCxK++DAx/edwznncwLBlUbo24qtrK6tb8Q3E1vbO7t79v5BTfmhpKxKfeHLhkMUE9xjVc21YI1AMuI6gtWdYXni1x+YVNz37vQoYG2X9D3e45RoI3Xs03InuroZ3yN4CdOFXL6IM+lWCqMsQihjtFaqkM8WMerYSZRDU8BlguckCeaodOyvVtenocs8TQVRqolRoNsRkZpTwcaJVqhYQOiQ9FnTUI+4TLWj6UNjeGKULuz50pSn4VT9PRERV6mR65hOl+iBWvQm4n9eM9S9i3bEvSDUzKOzRb1QQO3DSTqwyyWjWowMIVRycyukAyIJ1SbDhAkBL768TGr5HC7k8O1ZslSaxxEHR+AYpAEG56AErkEFVAEFj+AZvII368l6sd6tj1lrzJrPHII/sD5/AOaTlso=</latexit>BM 0 = (3.291)($10, 000) = $32, 910 Solution-04
Good News!
Appendix A
29
Example-05
Find the bare module cost of a floating-head, shell-and-tube heat exchanger with a heat transfer area of 100m 2 at the end of 2011. The operating pressure of the equipment is 1.0 bar, with both shell-and-tube sides constructed of CS. From the cost curve given in Appendix A, we find that
The bare module cost for shell-and-tube heat exchangers is given by Eq. (A.4).
The values of B 1 and B 2 for the heat exchangers from Table A.4 are 1.63 and 1.66, respectively.
The pressure factor is obtained from Eq. (A.3). From Table A.2, for pressures < 5 bars, C 1 = C 2 = C 3 = 0, and thus F p = 1
From Table A.3, we also find that F M = 1 for CS.
C p 0 (2001) = ($250)(100) = $25, 000
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C BM = C p 0 [B 1 + B 2 F p F M ]
<latexit sha1_base64="3Gmw+FQeMf24c2xIvUEB5C0Ispg=">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</latexit>
C BM (2001) = C p 0 (2001)[1.63 + 1.66 · 1 · 1] = 3.29C p 0 = (3.29)($25, 000) = $82, 300
<latexit sha1_base64="o1VpQ3euxoxnZyXjXpvTVd7+rrY=">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</latexit>
C BM (2011) = C BM 0 (2001)(582/397) = $82, 300(582/397) = $120, 650
<latexit sha1_base64="7a/Jjm5V1t8Vq7OC1yyAMl1PKho=">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</latexit>
Estimation of Capital Costs 06
log 10 C p 0 = K 1 + K 2 log 10 A + K 3 (log 10 A) 2
<latexit sha1_base64="PtuYl8sIQ9lam2E5LT5WIE6o6RU=">AAACJXicbZDLSgMxFIYz9VbrbdSlm2ARKkKZaQVdKFS7EdxUsBdop0MmzbShmQtJRihDX8aNr+LGhUUEV76K6XSQ2nog4ef7zyE5vxMyKqRhfGmZldW19Y3sZm5re2d3T98/aIgg4pjUccAC3nKQIIz6pC6pZKQVcoI8h5GmM6xO/eYT4YIG/qMchcTyUN+nLsVIKmTrVx0W9O3YNMZVO+wa8Bre2yY8U3cJ/lrwJiFlWJhDp92SreeNopEUXBZmKvIgrZqtTzq9AEce8SVmSIi2aYTSihGXFDMyznUiQUKEh6hP2kr6yCPCipMtx/BEkR50A66OL2FC5ydi5Akx8hzV6SE5EIveFP7ntSPpXlox9cNIEh/PHnIjBmUAp5HBHuUESzZSAmFO1V8hHiCOsFTB5lQI5uLKy6JRKprlovlwnq/cpnFkwRE4BgVgggtQAXegBuoAg2fwCt7BRHvR3rQP7XPWmtHSmUPwp7TvH7mLoHI=</latexit>
Equipment cost vs.
capacity (area)
Equipment Factored Estimate
의 한 방법 (Cost Curve를 이용한 Cp0
구하기) log-log 차트에서 2차함수:꽤 정확함
Equipment Cost: a useful software tool in a book by Peters, Timmerhaus, … CAPCOST: more accurate estimating software by Turton et al.
Figure 7.4
Calculation Algorithm of BMC
• Obtain C p0 (Appendix A)
• Obtain F p and F m (Appendix A)
• Obtain F BM (Appendix A)
• Calculate C BM
• Update cost from Sept. 2001 (CEPCI = _______)
31
Estimation of Capital Costs 06
Module Factor Approach - Pressure Factors
• Basis: ASME code
• Pressure parameter F p,vessel for a vessel having diameter D and operating pressure P (barg)
• Assuming allowable stress of carbon steel as 944 bar and welding efficiency as 90%, minimum allowable vessel thickness as 1/4” (0.0063m) and an additional thickness for allowable corrosion as 1/8” (0.00315)
F p,vessel = 1.0
<latexit sha1_base64="3dBcb0JhyqDC8qcA+/36bZwErVI=">AAACAnicbVDLSgNBEJz1GeMr6km8DAbBg4RdFfQiBATxGME8IFmW2UknGTL7YKY3GJbgxV/x4kERr36FN//GSbIHTSxoKKq6Z7rLj6XQaNvf1sLi0vLKam4tv76xubVd2Nmt6ShRHKo8kpFq+EyDFCFUUaCERqyABb6Eut+/Hvv1ASgtovAehzG4AeuGoiM4QyN5hf0bL20hPGAanwxAm4dGI3pFnZLtFYp2yZ6AzhMnI0WSoeIVvlrtiCcBhMgl07rp2DG6KVMouIRRvpVoiBnvsy40DQ1ZANpNJyeM6JFR2rQTKVMh0on6eyJlgdbDwDedAcOenvXG4n9eM8HOpZuKME4QQj79qJNIihEd50HbQgFHOTSEcSXMrpT3mGIcTWp5E4Ize/I8qZ2WnLOSc3deLJezOHLkgBySY+KQC1Imt6RCqoSTR/JMXsmb9WS9WO/Wx7R1wcpm9sgfWJ8/JIGWlg==</latexit>
when, t < t min (0.0063 m)
<latexit sha1_base64="DalhFJSViJ3p5NN+TXHI3cpI9kw=">AAACCXicbVA9SwNBEN2LXzF+RS1tFoMQm3BnRC0sAjaWEcwHJCHsbTbJkt29Y3dODEcsbfwrNhaK2PoP7Pw37iVXaOKDgcd7M8zM80PBDbjut5NZWl5ZXcuu5zY2t7Z38rt7dRNEmrIaDUSgmz4xTHDFasBBsGaoGZG+YA1/dJX4jTumDQ/ULYxD1pFkoHifUwJW6uYx4EsM3bgtuZrgolty3bMyfmgDu4dYTo5xN19IxAR4kXgpKaAU1W7+q90LaCSZAiqIMS3PDaETEw2cCjbJtSPDQkJHZMBalioimenE008m+MgqPdwPtC0FeKr+noiJNGYsfdspCQzNvJeI/3mtCPoXnZirMAKm6GxRPxIYApzEgntcMwpibAmhmttbMR0STSjY8HI2BG/+5UVSPyl55ZJ3c1qoVNI4sugAHaIi8tA5qqBrVEU1RNEjekav6M15cl6cd+dj1ppx0pl99AfO5w89s5gj</latexit>
and P >
<latexit sha1_base64="fZkuEAWlu1Y57ks2pWpdxfEwE84=">AAAB/nicbVDLSsNAFJ3UV62vqLhyM1gEN4bEB7qSghuXFewD2lAm00k7dDIJMzdiCRV/xY0LRdz6He78G6dtFtp64MLhnHu5954gEVyD635bhYXFpeWV4mppbX1jc8ve3qnrOFWU1WgsYtUMiGaCS1YDDoI1E8VIFAjWCAbXY79xz5TmsbyDYcL8iPQkDzklYKSOvVfFV/jYdc7xYxvYA2QBUb1Rxy67jjsBnideTsooR7Vjf7W7MU0jJoEKonXLcxPwM6KAU8FGpXaqWULogPRYy1BJIqb9bHL+CB8apYvDWJmSgCfq74mMRFoPo8B0RgT6etYbi/95rRTCSz/jMkmBSTpdFKYCQ4zHWeAuV4yCGBpCqOLmVkz7RBEKJrGSCcGbfXme1E8c79Txbs/KlUoeRxHtowN0hDx0gSroBlVRDVGUoWf0it6sJ+vFerc+pq0FK5/ZRX9gff4AMliUXw==</latexit>0.5 barg
Module Factor Approach - Pressure Factors
33
when, t > t
<latexit sha1_base64="O1gunfHUeVOzhXEDNyNke87sj2Y=">AAAB83icbVBNS8NAEJ3Ur1q/qh69LBbBU0lU0JMUvHisYD+gCWWz3bRLN5uwOxFK6N/w4kERr/4Zb/4bt20O2vpg4PHeDDPzwlQKg6777ZTW1jc2t8rblZ3dvf2D6uFR2ySZZrzFEpnobkgNl0LxFgqUvJtqTuNQ8k44vpv5nSeujUjUI05SHsR0qEQkGEUr+UhuCfZzPxZq2q/W3Lo7B1klXkFqUKDZr375g4RlMVfIJDWm57kpBjnVKJjk04qfGZ5SNqZD3rNU0ZibIJ/fPCVnVhmQKNG2FJK5+nsip7Exkzi0nTHFkVn2ZuJ/Xi/D6CbIhUoz5IotFkWZJJiQWQBkIDRnKCeWUKaFvZWwEdWUoY2pYkPwll9eJe2LundZ9x6uao1GEUcZTuAUzsGDa2jAPTShBQxSeIZXeHMy58V5dz4WrSWnmDmGP3A+fwB5j5FQ</latexit>min and P >
<latexit sha1_base64="fZkuEAWlu1Y57ks2pWpdxfEwE84=">AAAB/nicbVDLSsNAFJ3UV62vqLhyM1gEN4bEB7qSghuXFewD2lAm00k7dDIJMzdiCRV/xY0LRdz6He78G6dtFtp64MLhnHu5954gEVyD635bhYXFpeWV4mppbX1jc8ve3qnrOFWU1WgsYtUMiGaCS1YDDoI1E8VIFAjWCAbXY79xz5TmsbyDYcL8iPQkDzklYKSOvVfFV/jYdc7xYxvYA2QBUb1Rxy67jjsBnideTsooR7Vjf7W7MU0jJoEKonXLcxPwM6KAU8FGpXaqWULogPRYy1BJIqb9bHL+CB8apYvDWJmSgCfq74mMRFoPo8B0RgT6etYbi/95rRTCSz/jMkmBSTpdFKYCQ4zHWeAuV4yCGBpCqOLmVkz7RBEKJrGSCcGbfXme1E8c79Txbs/KlUoeRxHtowN0hDx0gSroBlVRDVGUoWf0it6sJ+vFerc+pq0FK5/ZRX9gff4AMliUXw==</latexit>0.5 barg
F p = (P + 1)D/(2 · 944 · 0.9 1.2(P + 1)) + CA t min
= (P + 1)D/(2 · 850 1.2(P + 1)) + 0.00315 0.0063
<latexit sha1_base64="MWGqf9jjHpfxf06gPRSVKLb6eyo=">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</latexit>
F p,vessel = 1.25
<latexit sha1_base64="/Vl+2AvFrfkFOhTWlI9qLgsex3A=">AAACA3icbVDJSgNBEO2JW4zbqDe9NAbBg4SZqOhBISCIxwhmgSSEnk4ladKz0F0TDEPAi7/ixYMiXv0Jb/6NneWgiQ8KHu9VdVc9L5JCo+N8W6mFxaXllfRqZm19Y3PL3t4p6zBWHEo8lKGqekyDFAGUUKCEaqSA+Z6Eite7HvmVPigtwuAeBxE0fNYJRFtwhkZq2ns3zSQ6riM8YNIHbR4aDukVdXP5s6addXLOGHSeuFOSJVMUm/ZXvRXy2IcAuWRa11wnwkbCFAouYZipxxoixnusAzVDA+aDbiTjG4b00Cgt2g6VqQDpWP09kTBf64HvmU6fYVfPeiPxP68WY/uikYggihECPvmoHUuKIR0FQltCAUc5MIRxJcyulHeZYhxNbBkTgjt78jwp53PuSc69O80WLqdxpMk+OSBHxCXnpEBuSZGUCCeP5Jm8kjfryXqx3q2PSWvKms7skj+wPn8Aoz6W0w==</latexit>
when, pressure < -0.5 barg
* For equipment other than pressure vessel,
log 10 F p = C 1 + C 2 log 10 P + C 3 (log 10 P ) 2
<latexit sha1_base64="3lwGbvzpnOvAeQpiW9pSeZd217s=">AAACI3icbZDLSgMxFIYz9VbrbdSlm2ARKkKZaQVFFAoFcVnBXqAdh0yatqGZzJBkhDL0Xdz4Km5cKMWNC9/FdDpIbT2Q8PP955Cc3wsZlcqyvozMyura+kZ2M7e1vbO7Z+4fNGQQCUzqOGCBaHlIEkY5qSuqGGmFgiDfY6TpDatTv/lEhKQBf1CjkDg+6nPaoxgpjVzzqsOCvhvb1vjWDeENrLo2PNN3Cf4asJaQMizModPHkmvmraKVFFwWdiryIK2aa0463QBHPuEKMyRl27ZC5cRIKIoZGec6kSQhwkPUJ20tOfKJdOJkxzE80aQLe4HQhyuY0PmJGPlSjnxPd/pIDeSiN4X/ee1I9S6dmPIwUoTj2UO9iEEVwGlgsEsFwYqNtEBYUP1XiAdIIKx0rDkdgr248rJolIp2uWjfn+cr12kcWXAEjkEB2OACVMAdqIE6wOAZvIJ38GG8GG/GxPictWaMdOYQ/Cnj+wd/g5/T</latexit>
Estimation of Capital Costs 06
Module Factor Approach - Material Factors
Material Factor, F M
Material F M
Carbon Steel 1.0
Stainless Steel Clad 1.7
Stainless Steel 3.1
Nickel Clad 3.6
Nickel 7.1
Titanium Clad 4.7
Titanium 9.4
35
Example-06
Compare costs for shell-and-tube heat exchanger in 2011 with an area = 100m 2 for
Carbon Steel at 1 bar Carbon Steel at 100 bar Stainless Steel at 1 bar Stainless Steel at 100 bar
Estimation of Capital Costs 06
Solution-06
P MOC C p0 C p
(=C p0 F p F m ) C BM0 C BM
1 bar CS 36.6 36.6 120.7 120.7
1 bar SS 36.6 99.9 120.7 225.8
100 bar CS 36.6 50.6 120.7 143.8
100 bar SS 36.6 138.2 120.7 289.3
F m = 2.73, F p = 1.383
<latexit sha1_base64="WMgf2eLjGFtrlr50z0Z2GNVP8pM=">AAACAnicdVDLSsNAFJ3UV62vqCtxM1gEFxKSRmi6EApCcVnBPqANYTKdtEMnD2YmQgmtG3/FjQtF3PoV7vwbpw/B54ELZ865l7n3+AmjQprmu5ZbWl5ZXcuvFzY2t7Z39N29pohTjkkDxyzmbR8JwmhEGpJKRtoJJyj0GWn5w4up37ohXNA4upajhLgh6kc0oBhJJXn6Qc0L4TksGWX7dDKBNS9RL8uwHdvTi6ZhVhzTrsDfxDLMGYpggbqnv3V7MU5DEknMkBAdy0ykmyEuKWZkXOimgiQID1GfdBSNUEiEm81OGMNjpfRgEHNVkYQz9etEhkIhRqGvOkMkB+KnNxX/8jqpDBw3o1GSShLh+UdByqCM4TQP2KOcYMlGiiDMqdoV4gHiCEuVWkGF8Hkp/J80S4ZlG9bVWbHqLOLIg0NwBE6ABcqgCi5BHTQABrfgHjyCJ+1Oe9CetZd5a05bzOyDb9BePwBL4pQl</latexit>
Total-Module Costs & Grass-Roots Costs
37
C T M = 1.18 X
all equip.
C BM
<latexit sha1_base64="4olfp0rLfe6vXDhFpF8xs2qHzEQ=">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</latexit>
TM – Includes Contingency and Fees at 15% and 3% of BM
GR – grass-roots cost includes costs for auxiliary facilities Auxiliary facilities = 50% of C BM
C GR = 0.50 X
all equip.
C BM 0 + C T M
<latexit sha1_base64="Heo+wwtmmWw4rWXNQSGGZAejMDg=">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</latexit>
