1. Equipment Costing CAPEX
Sieder-Chapter 16 Review
CH EN 5253
Terry A. Ring

2. Design I Coverage Time Value of Money Capital Costs Operating Costs
Profitability Analysis
Reading Materials

3. 6/10th scale up/down Factor
Used for scaling the total capital cost for a chemical plant of a different size
Cost2/Cost1 = (Capacity2/Capacity1)0.6
0.6 - Accounts for economy-of-scale

4. Cost Estimate Methods Order of Magnitude Estimate
Method of Hill
Marshall Swift for I/Ibase
Six Tenths Rule for Production Capacity
CTCI-2 (I)=CTCI-1 (Ibase)*(I/Ibase)* (Capacity2/Capacity1)0.6
Study Estimate (±35%)
Method of Lang
CTCI=1.05*fL-TCI ∑ (Ii/Ibase-i) Cp-i
Lang factors for different types of Plants
Solids -3.10, Solids&Fluids 3.62, Fluids 4.73
Sum over all major equipment
Preliminary Estimate (±20%) – use this method in CHEN 5253
Method of Guthrie
Bare module cost, CBM=Cp-base(I/Ibase)[FBM+(FdFpFm-1)]
d= design factor, p = pressure factor, m =materials factor
Quote Estimate

5. Accounting for Inflation
Cost to purchase = Base Cost*(I/Ibase)
Base Cost, CB, = Historical price at Io
I is a Cost Index at present time
Chemical Engineering, CE, Plant Cost Index
Ibase=567 (<2013>) for your equations in Sieder’s 4th Ed.
Marshall and Swift (MS) Equipment Cost Index
Nelson-Farrar (NF) Refinery Construction Cost Index
Engineering News-Record (ENR) Construction Cost Index
Cp(I) = Cp(Ibase)*(I/Ibase)
Cp(Ibase)=FT*Fm*Cbase(Ibase) (Hill Method)
FT= Type factor
Fm= Materials factor

7. Purchase Costs for Equipment
Size Factor, S, depends on type of equipment
Cp(Ibase)= A + b* (S)n
Ibase= 567 (2013 average)
Cp(Ibase)=exp(Ao+A1[lnS]+A2[lnS]2+…)
Ibase = 567 (2013 average)

13. Installation Factors

14. Materials Factor
The materials factor is different for different pieces of equipment

15. Compressors Compressor types (Ibase=394)
Centrifugal, CB=exp{ [ln(PC)]}
Reciprocating, CB=exp{ [ln(PC)]}
Screw, CB=exp{ [ln(PC)]}
Size factor is the power consumed, PC=PB/ηC
CP=FDriveFMatCB
FDrive =1 (electric motor), 1.15 (steam), 1.25 (gas turbine)
FMat = 1.0 Carbon steel, 2.5 SS, 5.0 Nickel Alloy
CBM=FBM*∑CP
FBM = 2.15

16. Heat Exchangers Types of Heat exchangers (Ibase=394)
Floating, CB=exp{ [ln(A)] [ln(A)]2}
Fixed Head, CB=exp{ [ln(A)] [ln(A)]2}
U-tube, CB=exp{ [ln(A)] [ln(A)]2}
Kettle, CB=exp{ [ln(A)] [ln(A)]2}
Thermosiphon, CB=
Double pipe, CB=exp{ [ln(A)]}
Size Factor is HX area, A
CP=FpFMatFLCB
Pressure Factor, Fp= (P(psig)/100) (P(psig)/100)2
Not for double pipe
Materials Factor, Fmat=a+(A/100)b, a & b from Table 22.25
a≥1.0 note error in Table
Tube Length Factor FL= 1.25 for 8 ft, 1.0 for 20 ft. on a sliding scale
CBM = FBM*CP, FBM=3.17 (S&T), 1.80 (DP), 2.17 (Fin/Fan)

17. Fired Heaters Size Factor is the heat duty, Q
CB=exp{ [ln(Q)]} (Ibase=394)
CP=FPFMatCB
FP= (P(psig)\500) (P/500)2
Fmat=1.4 Cr-Mo alloy steel, 1.7 for stainless steel
CBM = FBM*CP, FBM=2.19

18. Pressure Vessels Storage Tanks Distillation Towers Absorber Towers
Tray
Packed
Absorber Towers
Stripping Towers

19. Pressure Vessels Storage Tanks Distillation Towers Absorber Towers
Tray
Packed
Absorber Towers
Stripping Towers

20. Pressure Vessels Sizing Factor is the weight of steel, W
Horizontal Vessels, 1,000<W<920,00 lb
CB=exp{ [ln(W)] [ln(W)]2} (Ibase=394)
Vertical Vessels, 4,200<W<1,000,00 lb
CB=exp{ [ln(W)] [ln(W)]2} (Ibase=394)
Add Platform Costs,
Horizontal, 3<Di<12 ft
CPL=1580(Di) (Ibase=394)
Vertical, 3<Di<21 ft
CPL=258.1(Di)0.7396(L) (Ibase=394)
Weight, W=π(Di+ts)(L+0.8Di)tsρs
C=FMCB+CPL
FM= materials factor
Installation, etc, FBM=4.16 (V), 3.05 (H)
CBM=FBM*∑CP

21. Hoop Stress Calc for thickness, ts
Design Pressure is function of operating pressure, Po
For Po> 1,000psig use Pd=1.1Po
For Po< 1,000psig but not for vacuum
Pd=exp{ [ln(Po)] [ln(Po)]2}
Thickness (Hoop Stress Calculation)
ts= PdDi/(2SE-1.2 Pd)
S = max allowable stress for steel is f(T)
E = weld efficiency (fraction)
Minimum wall thickness for given diameters
May add extra thickness for wind stresses, corrosion
Different calculation for vacuum vessels
Also account for leakage when vacuum vessel is used

22. Distillation Towers
Pressure vessel with plates or packing and additional nozzels and manholes
Tray Cost
CT=NTFNTFTTFTMCBT
NT= no. trays
FNT= 1 for NT>20 otherwise FNT=2.25/(1.0414NT)
FTT = tray type, 1.0 sieve, 1.87 bubble cap
FTM= Materials, f(D)
Carbon Steel FTM=1.0
316 SS FTM= Di
Installation, etc, FBM=4.16
CBM=FBM*∑CP

23. Packed Distillation Column
Pressure vessel with platforms plus packing
Packing Cost basis is volume of packing, VP
C=VpCPK+CDR
CPK= is installed cost per unit volume
Distributors cost, CDR

24. Absorbers/Strippers Pressure Vessel Separate costs for blowers
plus platforms
plus packing
Separate costs for blowers
Separate costs for motors
On blowers
On mixers
On pumps

25. Plant Location Factor
FISF
From T&S Book

26. Do Not Forget Utility Plants

27. Total Capital Investment

28. Conclusions 0.6th rule Factored Estimate of Major Equipment
Installation Factor
Peripheral equipment, foundations, piping, etc
Biggest Mistakes
Forget Utility Plants
No Off Sites
No Electrical Substation
No Natural Gas Connection
Neglecting Major Equipment