Specialty chemicals production case study: Economic analysis of modular chemical process intensification versus conventional stick‐built approaches
- C.T. Wells Professor of Project Management and Professor of Civil, Architectural, and Environmental Engineering University of Texas at Austin Austin Texas USA
- Chemical and Petroleum Engineering University of Pittsburgh Pittsburgh Pennsylvania USA
- School of Mechanical, Industrial, and Manufacturing Engineering Oregon State University Corvallis Oregon USA
- Department of Civil, Architectural, and Environmental Engineering University of Texas at Austin Austin Texas USA
- School of Mechanical, Industrial &, Manufacturing Engineering Oregon State University Corvallis Oregon USA
The beneficial synergies of chemical process intensification and plant modularization present a unique step‐wise advancement opportunity for many chemical manufacturers, but economic case studies are needed to raise awareness of such opportunities. The primary objective of this case study is to better understand the business case economics of a specialty chemical plant using modular chemical process intensification (MCPI), by comparing it with that of a conventional stick‐built (CSB) plant that produces the same product at the same production capacity. When comparing MCPI against CSB approaches for a plant project strategy decision, analysts should thoroughly understand and model the differences and similarities in scope bases. The MCPI approach for this case study benefitted from dramatic reductions in capital expenditures (CAPEX). A sizeable reduction in plant spatial volume likely explains some of these reductions. Sizeable operational expenditure (OPEX) reductions with the MCPI plant appear to be associated with the reduced operator staffing required from converting a labor‐intensive batch process into an automated, continuous flow process. Traditional project investment economic measures strongly favored the MCPI case for the design, construction, and operation of the specialty chemical plant. The net present value for the MCPI case was nearly twice that for the CSB case over a ten‐year period, and the payback period for the CSB case was nearly five times longer than that of the MCPI case. The opinion‐based perspective of the study participant identified significant contributors to superior MCPI economic performance for this case study. With the two conditions of low MCPI CAPEX and high product profit margin, economic analysis indicates that incorporation of a backup MCPI train, for operational redundancy when downtime occurs, is a very beneficial strategy.
- Sponsoring Organization:
- USDOE
- Grant/Contract Number:
- EE0007888
- OSTI ID:
- 1997276
- Journal Information:
- Journal of Advanced Manufacturing and Processing, Journal Name: Journal of Advanced Manufacturing and Processing Journal Issue: 4 Vol. 3; ISSN 2637-403X
- Publisher:
- Wiley Blackwell (John Wiley & Sons)Copyright Statement
- Country of Publication:
- United States
- Language:
- English
Similar Records
Conceptual range estimation for total cost of ownership of modular