CHE 481-483: Process DesignFinal Design Project Presentation

Chemical & Biological Engineering DepartmentDrexel University

Manufacture of Ethylene GlycolManufacture of Ethylene Glycol

Design Team:

Academic Advisor: Dr. George Rowell

Industrial Advisor: Mr. Steven Schon, P.E.

Name Topics Covered in Presentation

Chong McLaren Project Scope

Nicholas Mitchell Process Description

Timre Segear Economic Feasibility

Suroor Manzoor Safety & Environment

Conclusions & Recommendations

   

Project Scope

Chong McLaren

Ethylene Glycol 896 MM lbs/Yr 99.8% Purity (Polyester Fiber Grade)

Diethylene Glycol (By-product) 2.2 MM lbs/Yr 99.6% Purity

Raw Material Ethylene: 484 MM lbs/Yr Oxygen: 370 MM lbs/Yr at 99% Purity

Size of Plant

Location

Port Arthur, TX BASF/ATOFINA steam cracker Grass-Roots Site Self Sufficient Unit (Utilities & WWTP)

Production of EO Technology

EO Reactor Shell Technology vs. Chlorohydrin process

Silver Catalyst Efficient & Environmentally friendly No unwanted byproduct

Ethylene Conversion: 12.5%

Oxygen vs. Air Reduce quantities of inert gases into recycle Eliminate the need for a purge reactor system Higher selectivity: 65-75% vs. 85-90% Higher operating cost Higher risk of handling

Production of EG Technology

EG Reactor Ion Exchange Catalyst vs. No Catalyst

Hydrolysis of EO Reduce operating temperature by 150 °F Reduce amount of excess water

Water:EO - 20:1 to 4:1 EO Conversion: 98% Higher MEG selectivity: 91% vs. 98%

Chemistry

Ethylene Reaction: C2H4 +1/2 O2 → C2H4O

Side Reactions: C2H4 + 3 O2 → 2 CO2 + 2 H2O

C2H4O + 2 1/2 O2 → 2 CO2 + 2 H2O

EO Reaction: C2H4O + H2O → C2H6O2

C2H4O + C2H6O2 → C4H10O3

Market Analysis

EG Worldwide Production 31.2 Billion lbs/Yr 20% in US

GLYDE: 896 MM lbs/Yr of EG Production 3% of World market 14% of US market

Growth Rate 6%-7% globally per year between 2006 - 2010

Market Analysis

Polyester Grade EG Demand for Derivatives

Uses Demand of EG ↑, Demand in

End-Use Segments ↑ automobile coolant, antifreeze

additive, fiber, film, PET bottles, solvent in printing ink

Process Description

Nick Mitchell

Ethylene

Oxygen

Feed Prep

OMSEO

Absorber

EO Stripper

CO2 Absorber

CO2 Stripper

Flare

EO Reactor

EG Reactor

EG Dehydration

EG Purification

CO2

Purge

EG

DEG

Section 300: CO2 Removal Section

Section 400: EG Reaction Section

Section 500: EG Purification SectionBlock Flow Diagram

Section 100: EO Reaction Section

• Ethylene Oxide Absorber

• Ethylene Oxide Stripper

• Carbon Dioxide Absorber

• Carbon Dioxide Stripper

• EG Reactor• EG Dehydration

• EG Purification

• Ethylene Feed Prep

• Oxygen Mixing Station

• Ethylene Oxide Reactor

Section 200: EO Absorption Section

Feed Prep Turbine

Ethylene Pipeline

Oxygen Mixing Station

Oxygen

Recycle Compressor

Recycle

CO2 Section

55,000 lb/hr

412, 000 lb/hr

46, 000 lb/hr

Section 100: EO Reaction

Pre-Heater

Trim Cooler

EO Reactor

Hot Oil Coolant

Recycle Compressor•8,600 cfm•2,900 HP•2 Stages

Oxygen Mixing Station•Safe Mixing of Oxygen•Avoiding Flammability Range

Reactor & Cooler 150 MM Btu/hr to Oil

System

Tin (oF) 300

Tout (oF) 570

Operating Pressure (psig) 210Type Shell & TubeCatalyst Silver BasedTube Length (ft) 20Tube Diameter (in.) 1.25Number of Tubes 14,000Area (ft2) 91,000

EO Reactor

G

as

Co

ole

r

Liq

uid

Co

ole

r

Tri

m C

oo

ler

Pre

-He

ate

r

Heat Duty (MM Btu/hr)

10 37 51 108

Number of Shells

1 3 1 5

Area (ft2) *1000

13 32.7 4.3 52

Area Per Shell (ft2) (*1000)

13 10.9 4.3 10.4

GasCooler

LiquidCooler

TrimCooler

Stripper Pre-Heater

EOAbsorber

To Purge, Recycle, & CO2 Removal

GasCooler

LiquidCooler

TrimCooler

Stripper Pre-Heater

EOAbsorber EO

Stripper

To Purge, Recycle, & CO2 Removal

Pre-Heater

Trim Cooler

EO Reactor

Hot Oil Coolant

EO Absorber D = 10 ft Structured Packing HETP = 24 in. Packing H = 40 ft

Section 200: EO Absorption

EOStripper

Water Recycle

EO Rich Feed

EO Stripper D = 10 ft 20 Trays Feed @ 10 Required EO/Water

Concentration

GasCooler

LiquidCooler

TrimCooler

Stripper Pre-Heater

EOAbsorber EO

Stripper

To Purge, Recycle, & CO2 Removal

Ethylene

Purge toFlare

Recycle to EOReactor Section

CO2Absorber

CO2Stripper

CO2 toFlare

Make UpWater

CO2Stripper

CO2 toFlare

Section 300: CO2 Removal

CO2Absorber

Make UpWater

CO2 Absorber D = 4 ft Structured Packing HETP = 24 in. Packing H = 40 ft

CO2 Stripper D = 4 ft 15 Trays Feed @ 1

Absorber Vapor

GasCooler

LiquidCooler

TrimCooler

Stripper Pre-Heater

EOAbsorber EO

Stripper

To Purge, Recycle, & CO2 Removal

Section 400: EG Reaction

EGReactor

Flash

Pre-Cooler

TrimCooler

EO/WaterSolution

Lights toCompressor

EG Solution

Tin (oF) 195Tout (oF) 195Operating Pressure (psig) 120Type Shell & TubeCatalyst Ion ExchangeTube Length (ft) 20Tube Diameter (in.) 1.25Number of Tubes 1,200Area (ft2) 7,900

EG Reactor

Stripper Distillate

Section 500: EG Purification

EGReactor

Flash

Pre-Cooler

TrimCooler

EO/WaterSolution

Lights toCompressor

EG Solution

EGDehydrator

EGPurification

Lights toCompressor

Water to EOAbsorber

DEG/TEG

25 lb/hr

EG Product110,000 lb/hr99.9 wt%

DEG Product265 lb/hr99.9 wt%

EGDehydrator

Lights toCompressor

Water to EOAbsorber

EG Dehydrator

– D = 10.5 ft

– 38 Trays

– Feed @ 15

– Max Water of .1 wt%

EGPurification

DEG/TEG

25 lb/hr

EG Product110,000 lb/hr99.9 wt%

DEG Product265 lb/hr99.9 wt%

EG Purification

– D = 14 ft

– 35 Trays

– Feed @ 14

– Side Stream @ 26

Key Process Assumptions

Overall Heat Transfer Coefficients 150 Btu/hr sqft oF

Boiling or Condensing Liquid/Liquid

50 Btu/hr sqft oF Elsewhere Gas/Liquid Gas/Gas EO Reactor

Pressure Drop 15 psi in Packed Bed Reactors 6 psi in Heat Exchangers < 3 psi in Vacuum Heat Exchangers Pressure Drop in Columns Estimated by Aspen

Purity of Raw Materials

Ambient Temperature & Humidity Wet Bulb Temperature for Cooling Water

Operating Time 8,100 hrs/yr (~4 wks downtime)

Key Process Assumptions

Key Process Assumptions

EO Reaction Kinetics Shell Catalyst is Proprietary Conversion & Selectivity

EG Reaction Kinetics Ion Exchange Resin only used in Lab Scale

Pilot Plant Required to test BOTH Catalysts

Economic Feasibility

Timre Segear

Economic Assumptions

Sales: 2008 224 MM lbs

2009 672 MM lbs

2010 & on 896 MM lbs

Ethylene Glycol Selling Price: 2008 38 c/lb (2 years contract)

2009 38 c/lb (2 years contract)

2010 & on 39 c/lb (then inc. 2%/yr)

Variable Cost : 18 c/lb (2010 $, inflate @ 2% /yr)

Fixed Cost: 3.6 c/lb (2010 $, inflate @ 2% /yr)

Administration & Sales: 3 % of sales

R&D: 3 % of sales

Economic AssumptionsTotal Fixed Capital: 175 $MM ISBL + OSBL (50% of ISBL)

131 $MM in 2007 75 % of Fixed Capital in 2007

43 $MM in 2008 25 % of Fixed Capital in 2008

Start - Up:

15 $MM in 2007 12 % of Fixed Capital in 2007

7 $MM in 2008 6 % of Fixed Capital in 2008

5 $MM in 2009 4 % of Fixed Capital in 2009

Federal and State Taxes: 39%

Working Capital: 18 % of sales

Depreciation: 16 $MM/yr (Straight Line Depreciation over 11)

Fixed CostsLabor (w/ Overhead) Basis $M/Shift # Shifts

Total Cost ($M/yr)

Total Cost (c/lb)

Operating - Board 2 Operators/shift 300 3 900 0.10 - Field 1 Operators/shift 125 3 375 0.04Supervisor 2 Operators/shift 400 3 1200 0.13

Basis $/hr Total Hrs/yrTotal Cost

($M/yr)Total Cost

(c/lb)Maintenance

2 Mechanical 40 3840 1200 0.131 Instrumentational 40 1920 600 0.07

Quality Control2 Technicians 50 8100 800 0.09

BasisTotal Cost

($M/yr)Total Cost

(c/lb)Engineer 1 per major unit(s)

1 EO System 460 0.051 CO2 System 460 0.051 EG System 460 0.05

1 OSBL 460 0.05

Total Labor Cost 6915 0.77

Fixed Costs

Supplies BasisTotal Cost

($M/yr)Total Cost

(c/lb)

Operating Supplies 10% Operating Labor 127.5 0.01Maintenance Supplies 60% Maintenance Labor 1080 0.12

Total Supplies 1207.5 0.13

Indirect Costs BasisTotal Cost

($M/yr)Total Cost

(c/lb)

Depreciation 11 yr. straight line 15907 1.78Taxes & Insurance 2% of Fixed Capital 2 0.00

Total Indirect Costs 15909 1.78

Total Fixed Costs ($M/yr)

Total Cost (c/lb)

24032 2.68

Other Capital Costs Assumptions Five miles of piping uninstalled cost $1MM Cost factor of 5 for a total of $5 MM Oxygen Mixing Station uninstalled cost of

$1 MM Cost factor of 4.44 for a total of $4.4 MM Seader, Seider and Lewin

600 MM lbs/yr in 1995 $80 MM 896 MM lbs/yr in 2006 $123 MM Reassuring our capital cost ($175 MM) is reasonable

Cost vs Revenue

Product

Raw Material

IndirectCapital Cost Labor

Utilities

Supplies

0

5

10

15

20

25

30

35

40

Cost Revenue

Cen

ts/lb

Pro

duct

Total = 23.3 c/lb

Total = 38 c/lb

Ethylene Price SensitivityEthylene Glycol - 896 MMlb/yr

0%

5%

10%

15%

20%

25%

0.28 0.33 0.38 0.43 0.48

Ethylene Price (c/lb)

IRR

%

Design Case = 19%Design Case 19%

Hurdle Rate 12%

Capital Cost SensitivityEthylene Glycol - 896 MMlb/yr

0%

5%

10%

15%

20%

25%

30%

35%

50% 60% 70% 80% 90% 100% 110% 120% 130% 140% 150%

+/- 50%

IRR

%

Design Case = 19%

Design Case

19%

Hurdle Rate 12%

Capital Cost

Capital Cost Sensitivity

Capital Cost – 175 $MM

Reaction Selectivity

0

10

20

30

40

50

60

70

80

90

100

84% 86% 88% 90% 92% 94% 96% 98% 100%

EO Reaction Selectivity

Aft

er T

ax C

ash

Flo

w (

MM

$ /

yr)

90% EG

95% EG

100% EG

Design Case

88% EO

98% EG

Increasing EG

Selectivity

Increasing EO

Selectivity

Design Case 19%

Hurdle Rate 12%

Current Market Price

Price/Capacity SensitivityEthylene Glycol - 896 MMlb/yr

0%

5%

10%

15%

20%

25%

30%

35%

40%

$0.30 $0.35 $0.40 $0.45 $0.50

Price (2006) $0.38, $/lb

DC

F IR

R, %

1000 MM lb/yr

896 MM lb/yr

600 MM lb/yr

After Tax Cash Flow Diagram

-200

-150

-100

-50

0

50

100

150

200

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Year

$MM

Cumulative Cash Flow Diagram

-200

0

200

400

600

800

1000

1200

1400

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Year

$MM

Economic Conclusions

Total Capital Costs $175 MM Raw Materials is major manufacturing cost Anticipated Internal Rate of Return: 19%

Hurdle rate: 12% Break even period: 3 years

Preliminary results lead us to believe this is an economically feasible process

Safety & EnvironmentConclusions & Recommendations

Suroor Manzoor

Safety

Safety Concerns Ethylene

Highly Explosive and Hazardous Oxygen mixing station

Potential Source of Explosion Located in Bunker

Ethylene Oxide Very Toxic Human Carcinogen

Safety

Risk Management Utilities Consideration

Shut off Oxygen & Ethylene Supply Back up generator Shut Down

Fire Prevention Fire Suppression System Shut off all gas streams

Wrong Feed Ratios

Risk Management Leaks and Spills

Ventilate Area Isolate Area Spill Collected or Absorbed

Process Waste Flare Recycle and Blending

Plant Layout

Safety

WASTE WATER PLANT

MAIN ROADR

OA

D

RAILROAD SIDING

UTILITIES

50 ft

OXYGENPLANT

O2 MIXING STATION

ETHYLENE PREP

C-501 C-101

E-206

E-205

T-202

E-203

E-202A

E-201T-201

E-103

E-102

E-101

R-101R-401

E-502A

T-501

E-502BP-503

V-202

P-202B

V-201

P-201

E-301

T-301

V-501

P-202A

P-301A

P-301B

TK-101 TK-102

TK-103 TK-104

LOADING STATIONS

ROAD

WAREHOUSE

SHIPPING & RECEIVING

MAINTENANCE BLDG

MACHINE SHOP

N2 TANKS

T-502V-502

P-505

P-504

V-601

P-601

PIP

E R

AC

K

E-503

E-504P

IPE

RA

CKRO

AD

PA

RK

ING

MAIN GATE

CONTROL

LAB

FLARE

SE

PREVAILING WIND

GA

TE

OFFICE

P-501

P-303

P-502

P-506

E-202B

E-202C

E-204A

E-204B

E-204C

E-204E

E-204D

P-203B

P-203A

E-401

E-402A

E-402BV-401

E-501A

E-501B

E-501C

E-601

P-602

TK-105

South East

Environmental

All raw materials/products biodegradable DEG byproduct Sold Waste Management

Streams recycled to optimize process No process waste water WWTP Bottoms from EG Purification blended into MEG

product stream Emissions

Issues

Economics Ethylene price

1c/lb is a difference of $9 million/yr

Technical Reaction kinetics of silver catalyst proprietary Glycol resin catalyst only tested on lab-scale

Product Purity of Ethylene Glycol

The final price drops by 25% if purity is in the range 98-99.8%

Conclusions

Capital investment: $175 million Production rate: 896 million lb/year EG Anticipated Internal Rate of Return: 19%

Break even period: 3 years Hurdle rate: 12%

Economically Feasible Process

Recommendations

Lock Ethylene price

Process Optimization Heating, Cooling CO2

Catalyst

Acknowledgements

Dr. George Rowell Mr. Steve Schon, P.E. Dr. Richard Cairncross Dr. Elihu Grossmann

Questions

Timre

ChongvsNick

Suroor