"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 various
plant configurations. Simply click into each sheet and complete the cells that are: Yellow

You'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, 1998
2. "A Guide to Chemical Engineering Process Design and Economics", Ulrich, G.D., Wiley, 1984

Be sure to note the economic assumptions made on the "Summary Page". If you're looking for a true economic
value, 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, this
spreadsheet will function quite nicely, although the true Net Present Value may not be accurate.

Finally, all dollar amounts are reported in US dollars.

Fixed Capital Investment
Equipment
Name Installed Cost Name Installed Cost
C-301 A/B $993,028
R-301 (F) $7,515,317
P-301 A/B $95,624
P-302 A/B $136,988
P-303 A/B $37,576
P-304 A/B $32,120
E-301 $302,252
E-302 $277,250
E-303 $2,756,200
E-304 $9,220,222 List your equipment by na
E-305 $21,419 enter the Fixed Capital Inv
FIC's $4,800 will take into account the a
LIC's $4,000 building the plant.
V-301 $129,576
T-301 $2,819,369 There is a large difference
the installed cost of a piec
T-302 $638,051 the purchased cost, you ca
T-303 $2,581,764 factor as shown below:
X-301 $0
4.74 for Fluid Processing P
3.63 for Solid-Fluid Proces
3.10 for Solid Processing P
 Total $27,565,556
Fixed Capital Investment
Multiplier= 1.5 (Default is 1.5)
FCI $41,348,334

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 Plants

3.63 for Solid-Fluid Processing Plants
3.10 for Solid Processing Plants
Operating Labor
Scroll Down
Equipment
Name Installed Cost Name Installed Cost
C-301 A/B $993,028 0 $0
R-301 (F) $7,515,317 0 $0
P-301 A/B $95,624 0 $0
P-302 A/B $136,988 0 $0
P-303 A/B $37,576 0 $0
P-304 A/B $32,120 0 $0
E-301 $302,252 0 $0
E-302 $277,250 0 $0
E-303 $2,756,200 0 $0
E-304 $9,220,222 0 $0
E-305 $21,419 0 $0
FIC's $4,800 0 $0
LIC's $4,000 0 $0
V-301 $129,576 0 $0
T-301 $2,819,369 0 $0
T-302 $638,051 0 $0
T-303 $2,581,764 0 $0
X-301 $0 0 $0
0 $0 0 $0
0 $0 0 $0
0 $0 0 $0
0 $0 0 $0
0 $0 0 $0

Enter the expected annual salaries of operators in the plant $46,000 US

Now 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 units Operators per shift

Auxiliary Facilities
Air Plants 0.00
Boilers 0.00
Chimneys and Stacks 0.00
Cooling Towers 0.00 Total Number of Operators Need
Water Demineralizers 0.00
Electric Generation Plants 0.00 Annual Cost of Operating Labor
Portable Generation Plants 0.00
Electric Substations 0.00
Incinerators 0.00
Mechanical Refrigeration Units 0.00
Waste Water Treatment Plants 0.00
Water Treatment Plants 0.00
Process Equipment
Evaporators 0.00
Vaporizers 0.00
Furnaces 0.00
Fans 0.00
Blowers and Compressors 0.00
Heat Exchangers 0.00
Towers 0.00
Vessels 0.00
Pumps 0.00
Reactors 0.00
 Equipment Operators per Shift
Auxiliary Facilities
Air Plants 1.0
Boilers 1.0
Chimneys and Stacks 0.0
Cooling Towers 1.0
Water Demineralizers 0.5
Electric Generation Plants 0.5
Portable Generation Plants 3.0
Electric Substations 0.0
Incinerators 2.0
Mechanical Refrigeration Units 0.5
Waste Water Treatment Plants 2.0
Water Treatment Plants 2.0
Process Equipment
Evaporators 0.30
Vaporizers 0.05
Furnaces 0.50
Fans 0.05
Blowers and Compressors 0.15
Heat Exchangers 0.10
Towers 0.35
Vessels 0.00
Pumps 0.00
Reactors 0.50

ype of unit in the space below.

pieces below.
6" under "heat exchangers".
east one cooling tower as well.

Total Number of Operators Needed = 0

Annual Cost of Operating Labor (Col) = $0

Utilities Scroll Right
Utility costs vary widely from region to region, you can change these values as you see fit

Utility Description Cost $/GJ Cost $/common unit

Air Supply Pressurized and Dried
a. Process $2.30
b. Instrument $4.70
Steam from Boilers Process Steam: Latent Heat
a. Low Pressure (5 barg, 160 0C) $3.17 $6.62
b. Medium Pressure (10 barg, 184 0C) $3.66 $7.31
c. High Pressure (41 barg, 254 0C) $5.09 $8.65
Cooling Tower Water Process Cooling Water
30 0C to 40-45 0C $6.70
Other Water High purity water for
a. Process Use $0.04
b. Boiler Feed Water $2.54
c. Potable (drinking) $0.26
d. Deionized Water $1.00
Electrical Substation Electric Distribution
110V, 220V, 440V $16.80 $0.06
Fuels a. Fuel Oil (no. 2) $4.00 $170.00
b. Natural Gas $2.50 $0.09
c. Coal (FOB mine mouth) $1.20 $31.00
Refrigeration a. Moderately Low Temp: 5 0C $20.00 Process cooling duty
b. Low Temp: -20 0C $32.00 Process cooling duty
c. Very Low Temp: -50 0C $60.00 Process cooling duty
Thermal Oil Systems a. Moderately High Temp: to 330 0C $4.90 Process heating duty
b. High Temp: to 400 0C $5.20 Process heating duty
c. Very High Temp: to 600 0C $5.90 Process heating duty
Waste Disposal a. Non-Hazardous $36.00
b. Hazardous $145.00
Waste Water Treatment a. Primary $39.00
(filtration)
b. Secondary $41.00
(filtration + activated sludge)
c. Tertiary $53.00
(filtration, activated sludge, chem proc)
 Scroll Down
Equipment (enter a description)
Name Utility Type
C-301 A/B
R-301 (F)
per 100 m3 P-301 A/B
per 100 m3 P-302 A/B
P-303 A/B
per 1000 kg P-304 A/B
per 1000 kg E-301
per 1000 kg E-302
E-303
per 1000 m3 E-304
E-305
per 1000 kg FIC's
per 1000 kg **This can also be used as condensate LIC's
per 1000 kg return credit amount V-301
per 1000 kg T-301
T-302
per kWh T-303
per m3 X-301
per std m3 **Based on lower heating value 0
per metric tonne 0
0
0
0
0
0
0
per metric tonne 0
per metric tonne 0
per 1000 m3 0
0
per 1000 m3 0
0
per 1000 m3 0
0
0
0
0
0
0
0
0
0
0
0
0
0
Utility Cost Not Associated with Equipmen
Description
(Calc from Table at Left)
Annual Utility 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

Total Utility Cost per Year (Cut) = $0.00

iated with Equipment
Utility Cost
Raw Materials and Profits
Enter 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 Material Annual Cost

LPS $945,000.00
Propylene $18,344,000.00
De. Water $20,304.00 Total Annual Raw Material Cost (Crm) =

Enter any profits. These should consists of your main, salable reaction products as well as any generated utilities
that 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 times
Profit Material Annual Profit
Acrylic Acid $96,053,000.00
Acetic Acid $24,345,000.00
Boiler Feed Water $6,235,000.00 Total Annual Profits =
aw materials.

$19,309,304.00

s well as any generated utilities

ngers and sold to other facilities.

nual Profits = $126,633,000.00

 Table A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop included

The following assumptions are made in the cash sheet

Total Installed Cost: Operating Labor shown below:
1. Two years for construction of plant
$27,565,556 Col = $0
2. Five year depreciation schedule
FCI $41,348,334 3. 10 year plant operating life
4. Cost of constructing the plant is spread over two years
Utilities 5. Taxation rate is defaulted to 40%, but can be changed
Raw Materials below
Cut= $0
6. The discounted cash flow rate is set at 8%, but can be
Crm= $19,309,304 changed below
7. Optimization function used is "Net Present Value"
Profit from Products
Annual Revenue= $126,633,000

Financial Outlook
COM= $31,193,144.04 (without depreciation) **assume 15% of FCI as salvage value** Cumulative
Year Depreciation FCI-deprec. Revenue COM Cash Flow Discount Cash Discounted
0 - $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 $12,113,624
3 $10,585,174 $22,493,494 $126,633,000 $31,193,144 $61,497,983 $48,819,082 $60,932,706
4 $4,318,751 $18,174,743 $126,633,000 $31,193,144 $58,991,414 $43,360,450 $104,293,156
5 $3,489,551 $14,685,192 $126,633,000 $31,193,144 $58,659,734 $39,922,829 $144,215,986
6 $1,409,778 $13,275,414 $126,633,000 $31,193,144 $57,827,825 $36,441,339 $180,657,324
7 - $13,275,414 $126,633,000 $31,193,144 $57,263,914 $33,412,944 $214,070,268
8 - $13,275,414 $126,633,000 $31,193,144 $57,263,914 $30,937,911 $245,008,179
9 - $13,275,414 $126,633,000 $31,193,144 $57,263,914 $28,646,214 $273,654,392
10 - $13,275,414 $126,633,000 $31,193,144 $57,263,914 $26,524,272 $300,178,664
11 - $13,275,414 $126,633,000 $31,193,144 $63,466,164 $27,219,550 $327,398,214

Taxation rate= 0.4 Discount rate= 0.08

Table A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop included

NPV= $327,398,214
(Net Present Value)
 Table A.3 (cont): Economic Analysis of a Topological Optimization with X-301 exluded and the Cooling Loop included

sheet

wo years
hanged

can be

ue"