1. ePOH Inc. Consultants: Hope Baumgarner Tyler Gibson Wes Hudkins Joseph Nick Josh Stephens

2. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc. Overview: Based on our findings for project 3, the addition of the cyclohexane unit is not profitable Large price increase in cyclohexane would be required to make process profitable Current market value Cyclohexane: $4.10/gal For process to be profitable price would have to be 5 times the current market value Project 3

3. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc Economic Analysis: Total Capital Investment: TCI = FCI + WC =$4,690,000 Fixed Capital Investment: FCI = DC + IC = $3,640,000 Annual Product Cost: $243 MM to $357 MM when a 4% inflation rate is taken into account Process considered profitable when ROR > 8% Annual Cash Flow: CF = (S-C) x (1-Φ)+dΦ Project 3

4. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc Economic Analysis: Annual Cash Flow: Price of CyclohexaneAnnual Cash Flow $2.05($ 1.29 Billion) $4.10($608 MM) $20.50$4.82 Billion Project 3

5. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc Economic Analysis: Net Present Worth: Criterion used to determine profitability Payout Time: Time required to recover investment Positive values indicate that investment will be recovered Negative values indicate investment will not be recovered Return on Investment: Describes how much money is earned per dollar invested When ROI>ROR the process is profitable Project 3

6. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc Economic Analysis: Selling Price Cyclohexane POT ($/yr)ROI (%)NPW $2.05($0.02)(22.4)($846 MM) $4.10($0.05)(10.7)($402 MM) $20.50$0.0183.4($3.15 Billion) Project 3

7. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc Equipment Cost & Specifications Mixer & Splitter: Diameter = 4.9 ft Height = 19.6 ft Volume = 185 ft 3 Material: Carbon Steel Cost included in the piping cost Heat Exchangers: Shell & Tube Carbon Steel tubes and shell Project 3

8. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc Equipment Cost & Specifications: Heat Exchanger 1Heat Exchanger 2Heat Exchanger 3 FluidsLight organics/light organics Steam/ light organics Steam/medium organics UA (BTU/hr-m 2 -°F)88,90019,55061,300 Design Value, U (BTU/hr-°F) 6601040850 Surface Area (m 2 )1341972 Cost$18,000$2,200$8,000 Project 3

9. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc Equipment Cost & Specifications: Flash Tank: Vertical liquid gas gravity settling separator Cross sectional area: 57 ft 2 Tank Diameter: 9 ft Cost: $81,000 Project 3

10. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc Equipment Cost & Specifications: Reactor: Tubular reactor 30 tubes L= 20 ft OD = 3 inches 40% of the cross sectional area dedicated to tubes Cost: $9,000 Compressor: Power Requirement: 53 kW Adiabatic Efficiency: 80% Type: Centrifugal Cost: $80,000 Project 3

11. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc Equipment Cost & Specifications: Distillation Column, Condenser & Reboiler: Size based on estimated superficial velocity for flooding to occur Operation 80% of vapor speed Based on Perry’s Chemical Engineer’s Handbook it suggest that about 15% of total cross sectional area be devoted to downcomer envelope Number of Trays: 28 Reboiler: Specified as a kettle Project 3

12. ePOH Inc. Addition of a Cylcohexane Production Process to Independent Refineries Inc Equipment Cost & Specifications: Distillation Column, Condenser & Reboiler: Column Cost: $140,000 Condenser Cost: $40,300 Reboiler Cost: $515,600 Total Cost: $781,400 Project 3

13. ePOH Inc. Fluid Transport and Economic Analysis Design of the pipe network Stainless Steel Currently operating at unsafe pressures Pipes need to be increased to schedule 80 Piping dimensions proposed by IRI found to be less than optimal ePOH’s recommendations could save $500,000 Adding fiberglass insulation will decrease NPW by $1 million Optimal piping costs for cyclohexane production plant Piping w/ Insulation$764,120 Valves$65,000 Elbows$4,000 Installation$366,350 Total$1,200,000 Project 4

14. ePOH Inc. Fluid Transport and Economic Analysis Two-phase flow Pro II was used to determine what flow regimes are inside the two-phase flow pipes in the process The Reynolds number was calculated for single phase flow from the thermodynamic parameters given by Pro II, and then the flow regimes for the two-phase streams were taken from the simulation report All the single-phase streams are in the turbulent flow regime, and all the two-phase flow streams are in the stratified wavy flow regime StreamReFlow Regime Hydrogen 317000single-phase turbulent Benzene95300 single-phase turbulent Recycle605000 single-phase turbulent Feed59800 single-phase turbulent Top215000 stratified wavy Bottom72500 single-phase turbulent Purge202000 stratified wavy S12800000 stratified wavy S22480000 stratified wavy S32350000 single-phase turbulent S42140000 single-phase turbulent S583200 stratified wavy S646900 stratified wavy S711800 stratified wavy S89450stratified wavy Project 4

15. ePOH Inc. Fluid Transport and Economic Analysis Pressure Drop in Streams Pressure drops in the pipes are much smaller than the overall pressure gradient in the system Current compressor pushes the stream up to 500 psia while they exit the system at atmospheric pressure There is no need to add additional pumps and compressors to overcome the pressure drop in the pipes StreamTypeLength (ft)ΔP (psi) Hydrogen8’’ Sch 407000.0059 Benzene4’’ Sch 405000.89 Recycle8’’ Sch 403500.0062 Feed6’’ Sch 401500.102 Top8’’ Sch 405000.00018 Bottom6’’ Sch 405000.129 Purge6’’ Sch 403000.00139 S110’’ Sch 401500.0165 S210’’ Sch 401000.0148 S310’’ Sch 401500.0278 S410’’ Sch 401500.0229 S510’’ Sch 401000.0195 S610’’ Sch 401500.0413 S710’’ Sch 401500.0027 S810’’ Sch 401000.00291 Project 4

16. ePOH Inc. Fluid Transport and Economic Analysis Performed risk analysis on the cyclohexane unit High risk, very low return Less than 20% chance of breaking even The difference between cyclohexane (product) and benzene (raw material) would need to increase to $1.51/gallon ePOH does NOT recommend constructing the cylcohexane unit Could use Diels Alder reaction as an alternative way to produce cylcohexane Project 4

17. ePOH Inc. NPSHA vs. Flow Rate Project 5

18. ePOH Inc. System Head vs. Flow Rate Project 5

19. ePOH Inc. Pumping section PFD Project 5

20. ePOH Inc. Reactor Specifications Reactor Material Chosen: Type 304 Stainless Steel Advantages of material: resist to corrosion high alloy metal very high tensile strength Project 5

21. ePOH Inc. Piping and Insulation Specifications PipingInsulation Material selected Type 304 stainless steelFiberglass (chosen to resist corrosion) (low thermal conductivity) Thicknessn/a1-2.5 in. Bursting Strength 62,000 kPan/a Cost$1,800--- Project 5

22. ePOH Inc. Pump Specifications Pump Centrifugal pump -chosen due to its low cost and ease of maintenance Work needed5.98 Hp Pressure gain117.7 psi Head360.5 ft Cost~ $3,000 Project 5

23. ePOH Inc. Pumping Section: Fixed Capital Investment Centrifugal Pump Cost$3,000 Piping Cost$1,800 Total Material Cost$4,800 Installation Cost$2,250 Total Cost (2002)$7,050 Total Cost (2009)$7,500 Project 5

24. CH-Plant: Heat Exchanger Study ePOH Inc. E2 E1 E3 Project 6

25. ePOH Inc. Heat Exchanger: Hand Design Exchanger E1 designed for two cases:  Single-Pass Tubes  Double-Pass Tubes Equipment cost determined for each design T-Q Diagram compared Project 6

26. ePOH Inc. Outer Diameter of Tubes (ft)0.75 Length of Tubes (ft)12 Pitch (Square) (ft)0.08 Number of Tubes500 Area (ft 2 )1,165 Shell Diameter (ft)2.12 Heat Transfer Coefficient (Shell Side) (Btu/hr-ft 2 -F) 15.2 Heat Transfer Coefficient (Tube Side) (Btu/hr-ft 2 -F) 1.40 Outer Diameter of Tubes (ft)0.75 Length of Tubes (ft)12 Pitch (Square) (ft)0.08 Number of Tubes920 Area (ft 2 )2,160 Shell Diameter (ft)2.80 Heat Transfer Coefficient (Shell Side) (Btu/hr-ft 2 -F) 55.3 Heat Transfer Coefficient (Tube Side) (Btu/hr-ft 2 -F) 1.38  Single-Pass Tubes  Double-Pass Tubes Project 6

27. ePOH Inc. T-Q Diagrams: E1  Single-Pass Tubes  Double-Pass Tubes Project 6

28. ePOH Inc. Heat Exchanger: Rigorous Model Rigorous heat exchanger model used for exchanger E1 Tube length and diameter and shell diameter were varied to produce the smallest heat transfer area Designed using Pro II Process Simulator * Minimize heat transfer area to Minimize cost! Project 6

29. ePOH Inc. Heat Exchanger: Rigorous Model Square Pitch 236 tubes, each 16 feet long 1275 ft 2 heat transfer area 11,600,000 Btu/hr heat duty Project 6

30. ePOH Inc. Heat Exchanger 2 and 3 Designed using the simple heat exchanger models with Pro II Project 6

31. ePOH Inc. Cost of Heat Exchangers Number Exchangers Purchased Cost / Exchanger Total Purchased Cost (2002) Total Purchased Cost (2008) 3$30,830$92,490$133,160 Purchased Cost of all exchangers $133,160 Total FCI of all exchangers$388,830 Project 6

32. ePOH Inc. Cyclohexane Tower Dimensions 7 feet in diameter, 56 feet tall 28 trays inside column 2 foot spacing between column Condenser duty: -3,300 Btu/sec Reboiler duty: 3,700 Btu/sec Column sized assuming vapor velocity is 80% of that required for flooding from the following correlation: Project 6