4. Costs in Ulrich: Scaled to CE Plant Cost Index = 315 (mid 1982)

5. Woods: Recommend M&S for costs in Canada

6. Location Cost Factors Garrett, 1989
Cost increases by 10% for every 1000 miles from a major
manufacturing centre

7. Correcting Plant Costs
Cost escalation with time
CE Index
M&S Index
Currency exchange rates
Location cost
Design changes?

9. Costing Terminology FOB Cost = equipment purchase cost (Cp)
Bare Module cost = Cost of equipment plus installation
expenses (CBM)
Total module cost = Bare module cost + contingency +
contractors fees
BM cost of process unit = Sum of bare module costs
- recommend adding contingency to sum of modules
Battery Limit Costs = Cost of process equipment
Offsite Costs = Cost of supporting facilities

10. Example: Typical process equipment
Guthrie, 1969

12. Guthrie Storage Tank Factors
Storage tanks to 40,000 US gal.
Storage Tank Cost, $ = [Base cost x Fm]Index
Adjustment Factors Installation (Prime contractor
Material Fm work only)
Carbon steel Field installation (M&L)
Aluminum Bare module factor
Rubber lined L/M ratio
Lead lined 1.55
Stainless 3.20
Glass lined 4.25
Note: Consider glass lining limited to 10,000 gal (max)