Estimates of program life-cycle cost are to capture all costs of the program, regardless of funding source or management control; the estimates are not limited to certain budget accounts or to categories controlled by certain lines of authority. Life-cycle cost isdefined as the sum of four major cost categories: (1) research. Caprock Health Plans offers self-funded plan sponsors competitive alternatives to traditional group health insurance plans. Their CapCost program reimburses providers on a fair and reasonable basis using Medicare pricing benchmarks. “Most providers accept Medicare reimbursements as the single most common reimbursement they receive.

Jan 20, 2018 CAPCOST selects values at random from the ranges you selected and recalculates all of the economic results. It does this 1000 times. If you select 900 points, for example, on the NPV plot this tells you that there’s a 90% chance of the true NPV being below this and a 10% chance of NPV being greater. The purpose of this appendix is to present the equations and figures that describe the relationships used in the capital equipment-costing program CAPCOST introduced in Chapter 7 and used throughout the text. The program is based on the module factor approach to costing that was originally introduced by Guthrie 1, 2 and modified by Ulrich. CAPCOST software to accompany: Analysis, synthesis, and design of chemical processes.

Production of Acetone Using Catalytic

Dehydrogenation of Isopropyl Alcohol

Project Leader: Mike Tremoulet

Team Members: Mike Unton and Ed Feng

Ceng 403 - Equipment Design

Capcost Program Application

October 11, 1998

Table of Contents:

Preliminary Design
1. Preliminary Reaction Side PFD
2. Qualitative Explanation of Process
3. Detailed Cost Data
Discussion of Development of Enhancements
1. Methods and Intent
2. Role of Engineering Judgment
3. Optimization and Trial Simulations
4. Costing Methods
Augmented Design
1. Reaction Side PFD
2. Changes from Base-Case Process
3. Detailed Cost Data

1. Abstract

This design project employs Aspen to simulate the optimization of the reaction side of a catalytic dehydrogenation plant which produces acetone and hydrogen from isopropanol. Optimization was carried out on a preliminary base case design. The Net P resent Value of the expenditures required in this section of the plant to process 34.82 Kmol/h of isopropanol with an approximately 90% single-pass conversion was reduced by $973,000 or 15.2% of its original value, as estimated by CAPCOST. While the capit al cost of the project remained essentially constant, an 18.6% savings in yearly operating costs was realized. Salient features of this augmented design include the addition of an adiabatic reactor to the system, replacement of high pressure steam with mo lten salt and increased pressure in the process stream. These modifications allowed reduction in the size and heat duty of the heated reactor, elimination of costly high pressure steam and the removal of a refrigerated-water heat exchanger.

2. Introduction

Acetone is often produced as a by-product in the production of phenol. The cumene hydroperoxide generated in that process is cleaved to form phenol and acetone. Catalytic dehydrogenation of isopropanol can be chosen as an alternative synthetic rout e when high-purity acetone is required, such as in biomedical applications. Turton et.al. mentions that a single pass conversion of 85-92% with respect to isopropanol, with reactor conditions of 2 bar and 350° C, is generally ac hieved. A molten salt stream will be used a heat source for the endothermic reaction:

(CH₃)₂CHOH ® (CH₃)₃CO + H₂

The acetone produced in the reactor passes into a phase separator and then into a separation system that includes one stripping and two distillation columns. A recycle stream takes a mixture of unreacted isopropyl alcohol and water, with a trace amount of acetone, back into a mixer that feeds the reaction system. Using the catalyst which will be employed throughout this analysis, the reaction is first order with respect to the concentration of isopropanol and has an Arrhenius dependence on temperature with E=72.38 MJ/kmol and k=351,000 cubic m gas/cubic m reactor sec.

3. Preliminary Design

3.1 Preliminary Reaction Side PFD

The authors of Turton et.al. present the Process Flow Diagram (PFD) in Figure 1 as a preliminary design. The production of acetone is 34.82 kmol/h from a process feed of 34.82 kmol/h of isopropanol, representing an overall conversion of approximate ly 100%. The reactor feed consists of this process feed plus a recycle stream with approximately 3.8 kmol/h of isopropanol. Table 1 lists information pertinent to the design of the individual units. Table 2 gives details about the compositions and states of the individual streams.

3.2 Qualitative Explanation of Process

The process may be qualitatively explained as follows. Fresh, azeotropic (88% by weight in water) isopropanol is mixed with the recycle stream from the separation side of the plant. The recycled isopropanol contains a trace amount of acetone. The c ontents of the mixer are fed to a pump that satisfies the pressure requirements of the reactor. The pump feeds a heat exchanger, E-401, which vaporizes the process stream using high pressure steam. The process stream then enters a multitube reactor heated by a molten salt stream. The heat transferred to the reacting gas stream is supplied by a fired heater to molten salt which is circulated by means of a centrifugal pump. The conversion of isopropanol to acetone and hydrogen takes place over a solid catal yst in the reaction tubes. The temperature in the reactor ramps up from 234° C to 350° C in the first quarter of the reactor which thereafter operates isothermally. The reacted stream must then be cool ed so the hydrogen can easily be removed. This is accomplished by means of two successive heat exchangers, the first taking away the heat from the stream with cooling tower water, the second with refrigerated water. The result is a stream at 20° C and 1.63 bar.

3.3 Detailed Cost Data

Capital cost details for this design are as follows.

Total Grass Roots Cost of Reaction Side: $1,006,000

Reactor Bare Module: $204,300

R-401 $204,300

Heat Exchanger Bare Module: $96,500

E-401 $39,700

E-402 $40,800

E-403 $16,000

Fired Heater Bare Module: $234,200

H-401 $234,200

Pump Bare Module: $73,100

P-401AB $26,400

P-402AB $46,700

Vessel Bare Module: $9,600

V-401 $9,600

Bare Module Cost of Reaction Side: $617,700

Catalyst $68,200

HiTec S