PLANT DESIGN II (CAB 4023) PRODUCTION OF 396, 000 TONNE OF AMMONIA PER YEAR GROUP 11 MUHAMMAD FAIZ MOHD FUDZAILI 10821 MUHAMMAD FAUZI KHAMIS 10826 MUHAMMAD NUR AZIZI ABDUL AZIZ 10853 NUR IZZATI BOHER @ BUJANG AMRI 10935 SOFIA KEETASOPON 10564 SUPERVISOR: DR MOHANAD EL-HERBAWI

GENERAL OVERVIEW

INTRODUCTION ALTERNATIVE PROCESSES PROCESS DESIGN PROCESS FLOWSHEETING INSTRUMENTATION & CONTROL PLANT LAYOUT HEAT INTEGRATION SAFETY & LOSS PREVENTION WASTE TREATMENT PROCESS ECONOMICS & COST ESTIMATION CONCLUSION

INTRODUCTION

BACKGROUND STUDY Commercially known as anhydrous ammonia Ammonia is a colourless gas with a sharp, penetrating odour. The heart of ammonia manufacture is the Haber process One of the most essential material of the world nitrogen industry

USAGE OF AMMONIA Household cleansing agent Fertilizer products Manufacture synthetic fibers : nylon and rayon Neutralize acidic by-products of petroleum refining

MARKET STUDY 78% used for fertilizer production. 3% used in direct application 19% consumed for industrial end uses. Continuous growth in the ammonia import correspond to demand for fertilizer production. The additional ammonia availability in the market from low cost capacity will displace local production in other regions where gas costs are higher e.g. Europe and US Source : AFA 15th International Forum

Global ammonia capacity is projected to be 224.1 Mt NH3 in 2014. Global ammonia capacity is projected to increase between 2010 and 2015 at an annual growth rate of 3.5%, equating to a net expansion of 37.4 Mt NH3 over 2009. Global ammonia capacity is projected to be 224.1 Mt NH3 in 2014. Much of the growth in ammonia capacity is associated with new urea capacity. Global urea capacity will expand by a net 30% between 2009 and 2014 corresponds to a compound annual growth rate of 5.4%. International trade of urea and merchant ammonia is projected to expand by 15 and 20%, between 2009 and 2014.

PROBLEM STATEMENT Students are required to: Select the most convenience way to produce ammonia. Calculate the mass balance. Perform heat integration for selected process. Perform study on control and instrumentation. Conduct the economics evaluation. Identify the environmental and safety issues related to the plant.

To design a process plant that produce OBJECTIVE To design a process plant that produce 396, 000 tonnes ammonia per year.

ALTERNATIVE PROCESSES

Synthesis gas production Three process steps of industrial ammonia production: Synthesis gas production Gas purification Synthesis of ammonia

SYNTHESIS GAS PRODUCTION Alternative Processes Steam Reforming Process Partial Oxidation Process Electrolysis Process

Steam Reforming Process Reaction : CH4 + H2O → CO + 3 H2 CO + H2O → CO2 + H2 CH4 + 2 H2O → CO2 + 4 H2 Process Description : Natural gas consists mainly of methane and refinery gas is a mixture of hydrocarbon gases. The resulting gas mixture contains by volume about 57% hydrogen, 21% nitrogen, 10% carbon dioxide 11% carbon monoxide and some impurities. Advantages: Produced more hydrogen if compare to other processes. Less energy requirement. Economically competitive due to the low price of the feedstock. Less carbon monoxide produced.

Partial Oxidation Process Reaction : CnH(2n + 2) + ½ nO2 → nCO + (n + 1)H2 Process Description : Oxygen is used instead of air for the reaction The carbonaceous materials are burned with a limited quantity of oxygen in the presence of steam at a temperature of about 1300-1500C Disadvantages: Demands careful control of the feed rates to the combustion chamber. Heat resisting materials are needed for the construction of the reaction vessels bricks. Not economically competitive due to the high price of the oxygen. More carbon monoxide produced. 5. Less hydrogen produced.

Electrolysis Process Reaction : H2O ↔ H2 + O2 Process Description : Two electrodes are placed in a vessel full of water. The cathode is an iron plate and the anode is a nickel iron plate. A diaphragm of asbestos is placed between the electrodes. Water decomposed at a voltage different of from 2.0 to 2.3 V between the electrodes, giving rise to hydrogen at the cathode and oxygen at the anode. Advantages: Yields very pure hydrogen Disadvantage : Has been utilized commercially where low-cost electricity is available, such as Canada but high cost of electricity in Malaysia.

SYNTHESIS GAS PRODUCTION CHOSEN! Steam Reforming Process Partial Oxidation Process Electrolysis Process Produced more hydrogen if compare to other process. Less energy requirement. Economically competitive due to the low price of the feedstock Less carbon monoxide produced.

CO2 REMOVAL Process Advantages Disadvantages Water scrubbing Simple plant No heat load Solvent availability at minimal cost Excessive loss of hydrogen Very high pumping load Poor CO2 removal efficiency CHOSEN! Amine Rapid absorption Excellent stability Easy regeneration High heat consumption on reactivation Less economical at high concentration of CO2 Hot carbonate Inexpensive absorbent Rapid absorption Reactivation up to 100% Less economical at low CO2 concentrations Inability to assure a satisfactory degree of clean up in the scrubbed gas

SYNTHESIS OF AMMONIA CHOSEN! Designation Pressure, atm Tempera-ture, °C Catalyst Recircu-lation Conversion, % Bleed to remove inert CHOSEN! Haber-Bosch 200-350 550 Doubly promoted iron Yes 10-30 Claude 900-1000 500-650 Promoted iron No 40-85 Casale 600 500 Promoted iron Yes 15-18 No Fauser 200 500 Promoted iron Yes 12-23 *40 % conversion of the gas upon passage through a single converter and 85 % conversion after passage through a series of converters. Gas is vented after one passes through the converters.

PROCESS DESIGN

BATCH VS CONTINUOUS CHOSEN! Selection Criteria Batch Continuous Production Capacity Production capacity that less than 10×106 lb/yr. Production capacity that more than 10×106 lb/yr. General Market Demand Seasonal demand and short lifetime products. Continuous production throughout a year. Operational Problems Ideal when handling slow reaction since it is periodically started and stopped. The possibility of slurry formation is also low since the equipment is periodically clean after each process. Reaction rate of all units in our design are basically fast due to usage of catalysts. In lieu to this, there will be low possibility of slurry formation. CHOSEN!

INPUT-OUTPUT STRUCTURE Recycle Purge Product(NH3) Feed (NG, Air, Steam) Process By-Product (H2O,CO2) Purification of feed stream is not required Purge stream is required Recycle is required (Product & By-Product)

REACTOR DESIGN Flow Pattern Models of Reactor Reactor Type Principal Application Advantages Disadvantages Continuous Stirred Tank Reactor (CSTR) Gas-liquid reaction Consistent product quality due to reproducible process control Low operating costs Wide range of throughput Final conversion lower than in other basic reactor types Unfavorable if the reaction must take place in high pressure Tubular Reactor Homogeneous gas phase reactions Favorable conditions for temperature control by heat supply or heat removal No moving mechanical parts High throughput Very high degree of specialization Relative large pressure drop CHOSEN!

Reactor Configurations Fluidized-bed Catalytic REACTOR DESIGN Reactor Configurations Fixed-bed Catalytic Reactor Fluidized-bed Catalytic The fixed-bed (packed-bed) reactor is a tubular reactor that is packed with solid catalyst particles. Most designs approximate to plug-flow behavior. In fluidized-bed reactors, solid material in the form of fine particles is held in suspension by the upward flow of the reacting fluid. CHOSEN!

Fixed-bed Catalytic Reactor REACTOR SELECTION Packed with solid catalyst particles. Highest conversion per weight of catalyst. Behaves as plug flow allows efficient contacting between reactants and catalyst. Flexible Fixed-bed Catalytic Reactor

SEPARATION SYSTEM In general, a series of separations are required after the reaction has taken place. The purposes are follows: - To achieve desired product purity. - To recover unconverted reactants. - To remove the hazardous or undesired components before discharging them to environment.

Heterogeneous mixture To separate water and gas (N2 and H2) SEPARATION SYSTEM Heterogeneous mixture (liquid and gas) Two-phase separator To separate water and gas (N2 and H2) To separate fully converted ammonia product (liquid) and partially converted ammonia product (gas)

MATERIAL BALANCE

MASS BALANCE CALCULATION Recycle 90% Purge 10% Purge From Methanator CH4 69.99 kmol/hr H2O 6.44 H2 7309.55 N2 2409.92 Total 9795..90 recycle 3.50% NH3 Ammonia Converter 96.50% NH3 Liquid Ammonia Reactions in Ammonia Converter N2+3H2 = 2NH3 30% based on H2 n1 N2 = feed + recycle - ξ1 n2 H2 = feed + recycle -3ξ1 n3 NH3 = 2ξ1

Total amount of ammonia product (kg/h) MASS BALANCE CALCULATION first iteration: ξ1: 730.95 1 2 3 4 5 6 Feed   Product Ammonia product Recycle bfr split Recycle Purge CH4 69.99 1.12 68.87 61.98 6.89 H2O 6.44083 6.44 0.00 H2 7309.548 5116.68 4.62 5112.06 4600.86 511.21 N2 2409.921 1678.97 0.86 1678.11 1510.30 167.8 NH3 1461.91 1410.76 51.15 46.04 5.1 total 9795.90 8333.99 1423.80 6910.19 6173.14 686 second iteration: 1191.04 Feed + 1st recycle 131.98 2.12 129.86 116.87 12.99 11910.40 8337.28 7.53 8329.75 7496.78 832.98 3920.22 2729.18 1.39 2727.78 2455.01 272.78 2428.12 2343.16 84.96 76.47 8.50 16015.08 13633.00 2360.64 11272.35 10145.12 1127.24 n1 N2 = feed + recycle - ξ1 n2 H2 = feed + recycle -3ξ1 n3 NH3 = 2ξ1 Total amount of ammonia product (kg/h) Error % Calculated Icon 0.05904 50000 49970.48

PROCESS FLOWSHEETING

INSTRUMENTATION & CONTROL

Production Rate and Quality Plant instrumentation and control is crucial because it provides a proper control of the process variables so that the whole plant operation is within the specification limit for safety purposes. Besides, it has direct impacts on the plant economics, environment and the product specifications Safe Plant Operation Production Rate and Quality Cost Operation

Primary Reformer Control Strategy Control Strategy Selected Ratio control (fuel-air) Cascade (for fuel gas flowrate) Control Objective To maximize the conversion of methane in the primary reformer section. Controlled Variables Temperature of the primary reformer. Fuel gas flowrate. Fuel-air ratio for the combustion heating process. Measured Variables Process gas temperature outlet of primary reformer. Fuel gas inlet flow rate. Air inlet flow rate. Manipulated Variable Disturbances Fuel gas supply pressure. Set Points Outlet temperature = 815 oC

Ammonia Converter Control Strategy Control Strategy Selected Feedback control. Control Objective To control the reactor bed temperatures for optimum production. Controlled Variable Bed temperatures. Measured Variable Manipulated Variable Cooler by-pass line flow rate. Disturbance Rapid reactions of synthesis gas that may lead to more heat released. Set Point Each bed has its set point temperature. H/N ratio control We have covered H/N ratio control in previous stages.

Heat Exchanger Control Strategy Control Strategy Selected Feedback control. Control Objective To control the temperature of shell from over heating. Controlled Variable Bypass shell flow rate. Measured Variable Shell outlet temperature. Manipulated Variable Flow rate of cold stream (shell). Disturbance Temperature fluctuations from the hot stream (tube). Set Point 146 oC.

Control Strategy Selected Feedback control. Feedforward control. Cascade control. Control Objective To maintain CO2 values in the process gas below a minimum level. Controlled Variables Absorber top CO2 composition. Regenerated amine solution CO2 composition. Absorber column pressure. Desorber column pressure. Absorber bottom level. Measured Variables Amine solution inlet flow rate. Steam flow rate. CO2 composition in process gas inlet. CO2 composition in regenerated amine solution. Manipulate d Variables Absorber top flow rate. Desorber top flow rate. Absorber bottom flow rate. Disturbanc e Process gas inlet CO2 composition . Set Point Desired outlet CO2 composition = <0.15%

PLANT LAYOUT

PLANT SITE SELECTION Location Gebeng Industrial Area 25km from Kuantan town and 250km from Kuala Lumpur city Type of industry Chemical and petrochemical Price & Land Area RM10.00 per ft2 168 million ft2 (3800 acres) area available Raw Material Sources Natural Gas – CUF Gebeng Steam – CUF Gebeng Transportation 5km from Kuantan Port 9km Gebeng-Kuantan pipe-rack network Kerteh-Gebeng-Kuantan railway Utilities Power Supply- Tenaga Nasional Berhad, Tanjung Gelang Water supply- Loji air Semambu Waste treatment Kualiti Alam Sdn Bhd

PLANT SITE SELECTION – GEBENG MAP

PLANT LAYOUT

HEAT INTEGRATION

What is pinch technology? Objective of pinch analysis Methodology for minimizing energy consumption by optimizing heat recovery systems Objective of pinch analysis To achieve financial saving by constructing the best process heat integration To optimize the process heat recovery and reducing external utility loads

METHODOLOGY Identification of hot, cold and utility streams in the process Thermal data extraction for process and utility streams Selection of initial ∆Tmin value Construction of problem table algorithm Identification Tpinch, QH,min and QC,min via heat cascade table Construction of heat exchanger network Calculation of energy saving

Cold Stream Hot Stream Back

Supply temperature TS(°C) Target temperature TT(°C) STREAM TABLE Stream Supply temperature TS(°C) Target temperature TT(°C) Utility ∆H (kW) No. Name (Refer to iCON) Name Type 1 E105 H1 Hot 427.22 204.44 32328.6998 2 E103 H2 220.00 40.00 59263.3538 3 E115 H8 460.00 300.00 27361.2603 4 E116 H9 150.00 25379.6722 5 E107 C1 Cold 50.00 290.00 20253.3355 6 E113 C2 30.00 189.61 28841.6240 7 E114 C3 350.00 28715.1726 Back

EXPANDED STREAM TABLE Ts/t*= Ts/t - ∆T/2 Ts/t*= Ts/t + ∆T/2 Supply temperature TS(°C) Target temperature TT(°C) CP(kW/°C) Shifted temperature (°C) Utility ∆H (kW) ∆Tmin/2 No. Name (Refer to iCON) Name Type TS* TT* 1 E105 H1 Hot 427.22 204.44 145.1149 422.22 199.44 32328.6998 5 2 E103 H2 220.00 40.00 329.2409 215.00 35.00 59263.3538 3 E115 H8 460.00 300.00 171.0079 455.00 295.00 27361.2603 4 E116 H9 150.00 169.1978 145.00 25379.6722 E107 C1 Cold 50.00 290.00 84.3889 55.00 20253.3355 6 E113 C2 30.00 189.61 180.6983 194.61 28841.6240 7 E114 C3 350.00 179.0357 355.00 28715.1726 Ts/t*= Ts/t - ∆T/2 Ts/t*= Ts/t + ∆T/2 NOTE THAT:: 1 CP = ∆H/∆T, ∆H is obtained from iCON 2 Back ∆Tmin = 10˚C

Interval Temperature (˚C) PROBLEM TABLE ALGORITHM Interval Temperature (˚C) Stream Population ∆Tinterval (°C) ∑CPC -∑CPH (kW/°C) ∆Hinterval(kW) Surplus/Deficit 455.00   32.78 -171.0079 -5605.6382 Surplus 422.22 67.22 -316.1228 -21249.7738 355.00 60.00 -137.0871 -8225.2272 295.00 80.00 -50.8882 -4071.0528 215.00 15.56 -380.1290 -5914.8075 199.44 4.83 -235.0141 -1135.1181 194.61 49.61 -378.4663 -18775.7150 145.00 90.00 30.4932 2744.3841 55.00 20.00 -148.5425 -2970.8502 35.00 109 102 110 103 106 104 105 Back

Interval temperature (˚C) Adjusted heat cascade (kW) HEAT CASCADE TABLE Interval temperature (˚C) ∆Hinterval (kW) Heat flow (kW) Adjusted heat cascade (kW) 455.00 0.0000   -5605.6382 422.22 5605.6382 -21249.7738 355.00 26855.4120 -8225.2272 295.00 35080.6392 -4071.0528 215.00 39151.6920 -5914.8075 199.44 45066.4995 -1135.1181 194.61 46201.6176 -18775.7150 145.00 64977.3326 2744.3841 55.00 62232.9485 -2970.8502 35.00 65203.7987 QH,min Tpinch (˚C): 455 + 10/2 = 460˚C QC,min

Combine Composite Curve Grand Composite Curve Back

GRID DIAGRAM

Above pinch region: Cpc > Cph Below pinch region: Cph > Cpc RULES OF THUMB Above pinch region: Cpc > Cph 1 Cp rules: Below pinch region: Cph > Cpc No temperature crossover of hot and cold stream through the heat exchanger 2

GRID DIAGRAM WITH HEAT EXCHANGER DESIGN 1) 28715 kW/2 = 171.0079 kW/˚C x (460˚C - T) 2) T = 376.04˚C Back

COMPARISON ON TOTAL UTILITY CONSUMPTION Total Utility Consumption Before HI Name (Refer to iCON) ∆H (kW) Remaining Heat For Cooling Requirement (kW)   C102 32328.6998 17971.1135 C103 59263.3538 30421.7298 C109 27361.2603 13003.6740 C110 25379.6722 5126.3367 H104 20253.3355 0.0000 H105 28841.6240 H106 28715.1726 Total 222143.1182 66522.8540 Total Utility Consumption After HI

Total Utility Consumption ENERGY SAVING AFTER HEAT INTEGRATION Total Utility Consumption Base Case Design Before HI (kW) 222143.1182 After HI 66522.8540 Energy Saved 155620.2642 % Reduction 70.05% = (222,143.1182 kW – 65,522.8540 kW) / 155620.2642 kW = 70.05%

SAFETY & LOSS PREVENTION

HAZARD AND OPERABILITY STUDY (HAZOP) Objective of HAZOP To indentify potential hazards and potential operability problems that may arise from the deviations of design intent.

LIST OF HAZOP GUIDE WORDS NO None of design intent is achieved. MORE Quantitative increase LESS Quantitative decrease REVERSE The logical opposite of the intention AS WELL AS An additional activity occur PART OF Only some of design intent is achieved OTHER THAN Complete substitution

HAZOP ANALYSIS HAZOP Study Nodes Node 1 Methanator (R105) including incoming line discharge from heat exchanger (E117) Node 2 Ammonia Converter (R106) including incoming line discharge from heat exchanger (E105) Node 3 Ammonia Separator (V106) including incoming line discharge from cooler (E120)

Node 1

HAZOP ANALYSIS: NODE 1 Parameter : Flow Guide Word Deviation Possible Causes Consequences Safeguards Recommendations NO No Flow 1. Line (S22) leakage. 2. Loss of feed supply. 3. Blockage inside pipeline (S22). 1. No process gas into the reactor 2. Release of toxic material. 1. Flow indicator is provided. 2. Perform regular schedule inspection on process line. 1. Install gas detection system is provided. 2. Install No Flow alarm

Parameter : Flow Guide Word Deviation Possible Causes Consequences Safeguards Recommendations LESS Less Flow 1. Partially plug line. 2. Control valve failure. 3. Line (S22) leakage. 1. Pressure drop inside the reactor (R105) 2. Less process gas into reactor. 1. Flow indicator is provided. 2. Perform regular schedule inspection on process line. 1. Install gas detection system is provided.

Parameter : Flow Guide Word Deviation Possible Causes Consequences Safeguards Recommendations MORE More Flow 1. Control valve failure. 1. Over pressure inside the reactor. 2. May lead to reactor explosion 3. Undesired product quality 1. Flow indicator is provided. 2. Perform regular schedule inspection on process line. 1. Install gas detection system is provided. 2. Install high flow alarm.

Parameter : Temperature Guide Word Deviation Possible Causes Consequences Safeguards Recommendations LOW Low Temperature 1. Malfunction of heat exchanger (E117) 1. Rate of reaction is reduced. 1. Temperature indicator is provided to notify the operator. 1. Install low temperature alarm. HIGH High Temperature 1. Failure of cooler. 2. Poor heat transfer in the heat exchanger (E117) 1. Temperature build up the reactor 2. May lead to reactor explosion 1. Temperature indicator is provided to notify the operator. 1. Install high temperature alarm.

Parameter : Pressure Guide Word Deviation Possible Causes Consequences Safeguards Recommendations LOW Low Pressure 1. Compressor failure. 2. Pipe leakage. 1. May lead to reverse flow. 1. Pressure indicator is provided to notify operator. 1. Install high temperature alarm. 2. Install Low pressure alarm. HIGH High Pressure 1. Failure of pressure relief valve. 2. More process gas into the reactor. 3. Pipe blockage. 1. Pipe vibration. 2. May lead to reactor explosion. 1. Pressure indicator is provided to notify operator. 1. Install high pressure alarm. 2. Install emergency shutdown system.

WASTE TREATMENT

Generally, the effluent discharge from Ammonia Plant needs to comply with Environmental Quality (Sewage and Industrial Effluents) Regulations, (Regulation 8(1) Third Schedule, Standard A, EQA 1979). The main consideration in wastewater treatment system is the COD and BOD value. Parameter Unit Standard A B Temperature °C 40 pH Value - 6.0 – 9.0 5.5 – 9.0 BOD at 20°C mg/L 20 50 COD 100 Oil and Grease Not detectable 10.0

WASTE STREAM Stream No. Component Composition Flow rate (kg/hour) Phase W6 Hydrogen 0.00008% 0.04 Liquid Nitrogen 0.00558% 2.89 Carbon dioxide 0.33557% 173.78 Water 99.65878% 51610.48 S 54 17.34567% 2087.35 Gas 78.74078% 9475.54 Methane 2.44785% 294.57 Ammonia 1.46570% 176.38

WASTEWATER STREAM

WASTEWATER STREAM

WASTEWATER TREATMENT SYSTEM

PROCESS ECONOMICS & COST ESTIMATION

SOURCES OF RAW MATERIALS AND TRANSPORTATION Ammonia plant has been identified to be located at Gebeng, Kuantan. Raw material Location Condition (At ambient) Unit Price (RM/kg) Transportation Storage Natural Gas CUF Gebeng Gas 0.00939 Piperack network Central Storage Facility (CTF) Steam 63.42

Other sources such as: Utilities Source Price Raw Water Loji Air Semambu RM 0.99/m3 Electricity Tenaga Nasional Berhad, Tanjung Gelang RM 0.27/kWh (peak) ; RM 0.16/kWh (off peak)

CAPITAL ESTIMATION Equipment Cost Estimation Equipment cost estimation using formula given in Douglas. Example : For pressure vessels, columns, reactors (Douglas, pg 574) Installed Cost = [(M&S)/280] x 101.9D1.066 x H0.802 x (2.18+Fc) Where : M&S : Marshall and Swift Index D : Diameter H :Height Fc : Pressure factor + Material factor From the equipment cost estimation, we will get Total Bare Cost Model (TBCM). TBCM for this plant is RM 76,890,675.08

CAPITAL ESTIMATION Grass Roof Capital Cost (GRC) GRC is summation of total module cost (Contingency, fee, TBCM) and Auxiliary facilities Contingency and fee is estimated as 18% from TBCM. Auxiliary facilities is estimated as 30% from TBCM. Grass Roof Capital Cost is RM 113,798,199.12

CAPITAL ESTIMATION Fixed Capital Investment (FCI) Total cost of the plant to be ready for start-up which are direct cost and indirect cost. To calculate direct cost and indirect cost, estimation was made using factor method. FCI for this plant is RM 197,811,443.27 Direct cost Factor Purchased equipment cost 12% GRC Instrumentation and control 6% GRC Piping (installed) 15% GRC Electrical and material (installed) 3% GRC Building 8% GRC Yard improvements 1% GRC Service facilities 5% GRC Land 2% GRC Indirect cost Factor Engineering and supervision 3% GRC Construction expenses 6% GRC Contractor’s fee 1% GRC Contingency 8% GRC

CAPITAL ESTIMATION Total Capital Investment (TCI) Summation of FCI, Working capital, and start up cost. Working capital is estimated at 12% of FCI Start up cost is estimated at 8% of FCI TCI for this plan is RM 237,373,731.92

OPERATING COST

OPERATING COST Variable Operating Cost Raw materials cost for Ammonia plant (Natural gas + Steam). Catalyst is estimated as 40% of raw material. Utilities consist of cooling, heating and electricity . VOC is RM 128,627,681.36

Working period (months) OPERATING COST Fixed Operating Cost Maintenance is estimated as 2% of FCI Operating labour is as table below : Plant Overhead is estimated as 50% of Maintenance + Operating Labour FOC is RM 137,940,807.81 Item Person Group Salary (RM/month) Working period (months) Subtotal Technician 3 4 1,800.00 12 259,200.00 Supervisors 1 2,000.00 96,000.00 Operation Engineers 2,500.00 360,000.00 Total Labor Cost (RM/year) 715,200.00

OPERATING COST General Expenses Administrative 15% of operating labor, Supervision and maintenance Distribution and Marketing 10% of Total Expenses Research and Development 5% of Total Expenses General expenses is RM 20,871,399.03

OPERATING COST Total Operating Cost: Variable Operating Cost + Fixed Operating Cost + General Expenses =

PROFITABILITY ANALYSIS From the discounted cash flow diagram above: At minimum discount rate of 10%, the net present value is RM550 million with payback time of 5 years

From the economic analysis done, the plant is estimated to have a capital investment of RM 404 million. At discount rate of 10%, the net present value of 550 million is attainable for a project life of 20 years and payback time of 5 years. With DCFRR of 26.51% and rate of return of 54.00% which is larger than the minimum attractive rate of return of 10%, the project is economically attractive and feasible.

CONCLUSION

Process of producing 396, 000 tonnes/year of Ammonia has been designed. Raw material & energy requirements have been calculated. Process has been designed with heat integration. Gebeng Industrial Estate Phase IV was selected as a suitable plant location. Based on economic evaluation, the plant is economically viable and attractive. Improvement that can be done is the implementation of Hydrogen Recovery Unit (HRU) and Ammonia Recovery Unit (ARU).