Chapter I

CHAPTER I
INTRODUCTION AND ITS BACKGROUND
The petrochemical process industry is mainly involved in manufacturing of
wide range of products which improves the quality of life of humankind and
generates employment. Engineers nowadays are having to deal with problems and
a lot of obstacles while deciding, designing, and scheming a process especially
when chemicals that are highly reactive, highly toxic, and highly corrosive are
involved. Also, it is also a problem when engineers have to design a process where
the operating pressure and temperatures are in a high range.
Ethylbenzene is an organic chemical compound which is an an example of
aromatics or compounds with benzene rings. It is used primarily in the
petrochemical industry as an intermediate for styrene production, which is then
turned into plastic materials, which is getting high in demand nowadays.
Ethylbenzene are often present in crude oils but in only small amounts.
Usually, to produce ethylbenzene in bulk quantities, the petrochemicals benzene
and ethylene is combined in an acid-catalyzed reaction. The catalyst involved is
usually FeBr3 or AlCl3. Catalytic hydrogenation of ethylbenzene will produce
hydrogen gas and styrene. Ethylbenzene can also be used as an additional
ingredient in manufacturing paints and waxes.
Nowadays, the demand for plastic is getting higher and higher.
Ethylbenzene to be converted to styrene is imported from countries like Taiwan
and China, which is way more expensive than manufacturing ethylbenzene locally.
1
Benzene and ethylene are commercially available here in the country, and so as
aluminum chloride, which will help in the conversion of benzene and ethylene to
ethylbenzene. Thus, the proponents have thought of designing a ethylbenzene
production plant that will supply the demand of the styrene production plants in the
Philippines,
Location
The location that the proponents have decided is at Brgy. Alas Asin,
Mariveles, Bataan. This is selected since the raw materials of the proposed plant
is from Petron Corporation in Limay, Bataan. Also, it is accessible since it is located
beside the national road and is also located near the waters. The figure shows the
exact location of the proposed plant.
Fig 1.1 Proposed Location of Ethylbenzene Plant
Source: philatlas.com
2
Fig 1.2 Proposed Location of Ethylbenzene Plant
Source: philatlas.com
This site is considered a feasible zone for the construction as proven by the
factors discussed in the next sections:
1. Raw Material Availability
Petron Corporation is the largest oil refining and marketing company
in the Philippines and is a leading player in the Malaysian market. The
reformer uses a catalyst to increase the octane number of naphtha while
producing LPG, gasoline, and reformate. Meanwhile, reformate is
further converted to become petrochemical feedstocks benzene,
toluene, and mixed xylene. To be specific, Petron Corporation in Bataan
produces over 50000 MT of benzene annually which will be sufficient for
the feedstock needed for the production of ethylbenzene.
2. Water Source
Since coolers are located all around the plant which uses water
streams, a nearby water source is needed. Output of the alkylator
3
reactor mixed that of the transalkylator and the combined stream will
pass through a cooler, and also a vapor stream from the separator which
will go through a compressor to increase stream pressure to column
pressure will also need a cooler to reduce temperature which rose due
to compression.
3. Transportation Facilities
Brgy. Alas Asin is a strategic place since it is located near the
national road and is near transport facilities like Seasia Nectar Port
Services and others. It is also near Petron Corporation and will make the
transportation of the required feed benzene easier and safer.
Raw Material
Petron Corporation is the largest oil refining and marketing company in the
Philippines and is a leading player in the Malaysian market. The reformer uses a
catalyst to increase the octane number of naphtha while producing LPG, gasoline,
and reformate. Meanwhile, reformate is further converted to become
petrochemical feedstocks benzene, toluene, and mixed xylene. To be specific,
Petron Corporation in Bataan produces over 50000 MT of benzene annually which
will be sufficient for the feedstock needed for the production of ethylbenzene.
Table 1.1 Properties of Ethylene
Ethylene Properties
Formula C2H4
Molecular Weight 28.05 lb/mol
Critical Temperature 49.1F
4
Critical Pressure 742.7 psia
Boiling Point -154.8F
Melting Point -272.5
Gas Density 0.0730 lb/ft3
Specific Gravity 0.992
Source: pubchem.gov
Table 1.2 Properties of Benzene
Benzene Properties
Molar Mass 78.1118
Critical Temperature 562.02 K
Critical Pressure 4.894mpa
Critical Density 3.902
Triple Point Temperature 278.67 K
Reference Temperature 353.21635
Reference Pressure 0.101325 Mpa K
Source: pubchem.gov
Product
Ethylbenzene is an organic compound with the formula C6H5CH2CH3. It is a
highly flammable, colorless liquid with an odor similar to that of gasoline. This
monocyclic aromatic hydrocarbon is important in the petrochemical industry as an
intermediate in the production of styrene, the precursor to polystyrene, a
common plastic material. In 2012, more than 99% of ethylbenzene produced was
consumed in the production of styrene.
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The greatest use, more than 99 percent of ethylbenzene, is to make
styrene, another organic liquid used as a building block for many plastics. It is also
used as a solvent for coatings, and in the making of rubber and plastic wrap. Much
smaller amounts of ethylbenzene are used in solvents or as additives to a variety
of products. Some products that contain ethylbenzene include synthetic rubber,
gasoline and other fuels, paints and varnishes, inks, carpet glues, tobacco
products, and insecticides. Ethylbenzene finds wide application as solvent and
reagent in producing various products, such as paints & coatings, dyes, varnishes,
lacquers, adhesives, rust prevention spray, pharmaceuticals, cleaning materials,
dyes, inks, perfumes, synthetic rubber, plastics, and pesticides.
Table 1.3 Properties of Ethylbenzene
Ethylbenzene Properties
Melting Point -95 C
Boiling point 136 C
Density 0.867 g/ml at 25C
Vapor Density 3.7
Vapor Pressure 28.69psi
Refractive Index N20/D 1.495
Flash Point 72F
Storage Temperature 0-6C
Solubility 0.2g/l
Form Liquid
6
Color Colorless
Relatiive Polarity 0.117
Odor Aromatic
Explosive Limit 1.0-7.8%
Water Solubility 0.0206g/100ml
Freezing Point -95C
Source: pubchem.gov
Demand
Fig. 1.3 Global Ethylbenzene Demand
Source:https://ihsmarkit.com/products/ethylbenzene-chemical-economics.html
The increasing construction activities, particularly in Asia-Pacific, the rising
automotive production, driven by increasing demand for SUV’s and electric
vehicles, and the growth in pharmaceutical industry is driving the ethylbenzene
demand for application as a solvent and reagents in producing paints & coatings,
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varnishes, adhesives, rust prevention sprays, etc., used in these
industries.Ethylbenzene is majorly used for the production of styrene, which is a
precursor to various industrial polymers, such as polystyrene, acrylonitrile-
butadiene-styrene, styrene-acrylonitrile resins, styrene-butadiene elastomers and
latex, and unsaturated polyester. These styrene-based polymers, resins, and
elastomers find wide application in various end-user industries, such as packaging,
electronics, construction, agriculture, and petrochemicals. Thus, a strong growth
in the aforementioned end-user industries is driving the demand for styrene
products, further leading to an increase in the demand for ethylbenzene in order
to produce styrene.
Global ethylbenzene production grew to 31.6 million tons in 2018, with the
largest application being the production of styrene. Increased demand has been
driven by investment in downstream derivatives in the Middle East and China. With
new global capacity, demand growth of 0.7 percent per year is expected through
2023.
8
Projected Global Demand of Ethylbenzene
35
30
25
Million Metric Tons
20
15
10
0
20042005200620072008200920102011201220132014201520162017201820192020202120222023
Years
Fig. 1.4 Demand and Supply of Ethylbenzene
Source: https://www.icis.com/explore/commodities/chemicals/ethylbenzene/
Target Market
Automotive. Ethylbenzene has been added to motor and aviation fuels
because of its anti-knock properties.
Chemicals. It is also used to make other chemicals, including
acetophenone, cellulose acetate, diethyl-benzene, ethyl anthraquinone,
ethylbenzene sulfonic acids, propylene oxide, and alpha-methylbenzyl alcohol.
Electroplating. Ethylbenzene is one of the most commonly used solvent
during electroplating which is a uses an electric current to reduce dissolved metal
cations so that they form a thin coherent metal coating on an electrode.
Paint Manufacturers. Ethylbenzene is added to gasoline as an anti-knock
agent, meaning it reduces engine knocking and increase the octane rating.
9
Plastic Manufacturers. Styrene is produced predominately by
ethylbenzene. It is a chemical used to make latex, synthetic rubber, and
polystyrene resins. These resins are used to make plastic packaging, disposable
cups and containers.
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CHAPTER II
DESIGN OBJECTIVES AND REQUIREMENTS
The main objective of the study is to design an ethylbenzene production
plant, with a capacity of 63,198 million metric tons per year or 8,777.53 metric tons,
which makes use of ethylene and benzene as the raw materials for the
manufacturing. The proposed ethylbenzene production plant has an estimated
land area of 11,000 square meters which is bound to located at Brgy. Alas Asin,
Mariveles, Province of Bataan. For the development of the desired plant, the
following specific objectives must be met:
1. Present and analyze three design alternatives of the proposed
ethylbenzene production plant to determine the design trade-offs of the
design options:
1.1. Multiple Distillation Column Configuration
1.2. Single Distillation Column Configuration
1.3. Multiple Distillation Column Configuration with Thermal Cracking
2. Present the technical and design requirements of three design options of
ethylbenzene production plant with respect to:
2.1. Process Flow Diagram
2.2. Mass Balance
2.3. Energy Balance
3. Conform to the technical specifications of the equipment to be used in the
design from the following required standards:
3.1. ISO (International Organization of Standards)
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3.2. ASTM (American Society for Testing and Materials)
4. Perform economic analysis of the plant to determine the most economically
efficient or cost – effective choice among the design alternatives by
determining the following:
4.1. Capital Expenditure
4.2. Operating Expenditure
4.3. Total Project Cost
4.4. Rate of Return
4.5. Payback Period
4.6. Net Present Value
5. Provide an environmental management plan for each design option by
presenting the following aspects:
5.1. Environmental Impact Assessment
5.2. Socio-Economic Benefits
5.3. Health and Safety Requirements
5.4. Mitigation Measure
6. Construct a project construction execution plan after evaluating and
selecting the best design option from the alternatives.
7. Perform a project design trade-off by evaluating the three design options
using the multiple realistic constraints presented using pareto-optimum
analysis
8. Present a simulation video of the whole production plant from the best
design option highlighting the plant layout and processes
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CHAPTER III
TECHNICAL ASPECTS AND REQUIREMENTS
This chapter presents the data and information as well as the assumptions
related to the technical aspects and economical information needed for the design
of the manufacturing plant. Standards were used to come up with a technically
viable design. Technical catalogues were used to carefully identify the design
specifications of each equipment. Three designs are presented and the best
design option will be selected through the worst case design philosophy.
Process Design Layout
a. Design Option 1
There will be two streams of feed. One stream will contain ethylene
which will include an inert ethane as an impurity. Another stream will contain
ethylene. Ethylene from the feed tanks will travel and pass through a
compressor. Which is supplied with sufficient amount of electricity, to
increase pressure and convert it from gaseous phase to a liquid phase,
while benzene will pass through a pump, also, to increase its pressure. The
mixture of benzene and recycle benzene will be passing through a heater
to control its temperature before being fed to the alkylation reactor.
The resulting stream form the alkylation reactor mixed with the
resulting stream from the transalkylation reactor will pass through a cooler
and enters a flash drum. The mixture will then go to the ethane separator
where ethane will go out from the top part while the other components will
continue to the first distillation column. Ethane is separated because if
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ethane makes it through to the distillation column mistakenly, it would
significantly enhance the duty of the reboiler. The first distillation column will
have a distillate of a mixture of ethylbenzene and diethylbenzene, while
benzene will emerge at the top. The liquid stream which came out from the
first distillation column will now make its way to the second distillation
column which then separates the two components, while the benzene from
the distillate will serve as one of the feed in the transalkylation reactor. It will
be joined by diethylbenzene which is the distillate of the second distillation
column. Both will go through the transalkylation reactor where both reacts
and form ethylbenzene which will be recycled as inlet to the flash drum, to
mix with the output stream of the alkylation reactor. Ethylbenzene comes
out of the top of the second distillation column.
14
Fig 3.1 Process Flow Diagram of Design Option 1
15
b. Design Option 2
It will be almost like the first design option. The only difference is that
in there will be only one distillation column where three products are made.
There will be two streams of feed. One stream will contain ethylene which
will include an inert ethane as an impurity. Another stream will contain
and enters a flash drum. The mixture will then go to the ethane separator.
Ethane is separated because if ethane makes it through to the distillation
column mistakenly, it would significantly enhance the duty of the reboiler.
The only distillation column will separate the three components of the inlet
mixture separately. The top part will produce benzene, the middle will
produce ethylbenzene, while the bottom will produce diethylbenzene. The
top and bottom products will be mixed and be fed to the transalkylation
reactor where both reacts and form ethylbenzene which will be recycled as
inlet to the flash drum, to mix with the output stream of the alkylation reactor.
16
17
c. Design Option 3
The difference of this process is that it includes a thermal cracking
process for the ethane from the separator, for it to evolve into ethylene and
be an additional feed. Aside from that, the process is pretty much similar to
the first design option.
There will be two streams of feed. One stream will contain ethylene
which will include an inert ethane as an impurity. Another stream will contain
and enters a flash drum. The mixture will then go to the ethane separator
where ethane will go out from the top part while the other components will
continue to the first distillation column. Ethane is separated because if
ethane makes it through to the distillation column mistakenly, it would
significantly enhance the duty of the reboiler. Then, the separated ethane
will go through a furnace to pre-heat before entering the fractionating
column where it will be thermally cracked to form ethylene and serve as a
recycle to the feed.
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The first distillation column will have a distillate of a mixture of
ethylbenzene and diethylbenzene, while benzene will emerge at the top.
The liquid stream which came out from the first distillation column will now
make its way to the second distillation column which then separates the two
components, while the benzene from the distillate will serve as one of the
feed in the transalkylation reactor. It will be joined by diethylbenzene which
is the distillate of the second distillation column. Both will go through the
transalkylation reactor where both reacts and form ethylbenzene which will
be recycled as inlet to the flash drum, to mix with the output stream of the
alkylation reactor. Ethylbenzene comes out of the top of the second
distillation column.
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Major Equipment and its Functions and Specifications
a. Distillation Column
Fig 3.4 Distillation Column
Source: www.wermac.org
“ Distillation columns are usually tall structures filled with heated
flammable fluids, and are consequently inherently hazardous. The column
is divided into a number of horizontal sections by metal trays or plates, and
each is the equivalent of a still. The more trays, the more redistillation, and
hence the better is the fractionation or separation of the mixture fed into the
tower. Distillation columns are key unit operations in traditional chemical
engineering, especially in the oil and gas industry. ”
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Table 3.1 Specifications of Distillation Column
Distillation Column Specifications
No. of Trays 35 – 40
Temperature Up to 140oC
Pressure Up to 17 bars
Tray Type Sieve
Tray Material Stainless Steel 316
Column Material Carbon Steel
Source: https://www.alibaba.com/
b. Separator
Fig 3.5 Separator
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It is a device which separates a fluid into its constituent components.
Liquid removed by the inlet diverter falls to the bottom of the vessel. The
gas moves upward, usually passing through a mist extractor to remove
suspended mist, and then flows out. Liquid removed by the mist extraction
is coalesced into larger droplets that fall down to the liquid reservoir in the
bottom. Mist extractors can significantly reduce the required diameter of
vertical separators. Horizontal separators are most efficient for large
volumes of total fluids and when large amounts of dissolved gas are present
with the liquid. The greater liquid surface area provides optimum conditions
for releasing gas from liquid.
Table 3.2 Specifications of Separator
Separator Specifications
Temperature Up to 40oC
Pressure Up to 19 bars
Construction Material Carbon Steel
Source: https://www.alibaba.com/
c. Alkylation Reactor
In the alkylation reactor, the introduction of an alkykl group into an
organic compound by substitution or addition takes place. There are six
types of alkylation reaction such as substitution for hydrogen bound to
carbon, such as ethylbenzene and benzene and ethylene substitution for
hydrogen attached to nitrogen, substitution for hydrogen in a hydroxyl group
of an alchol or phenol, and addition to atertiart amine to form a quaternary
23
ammonium compound. Other major alkylation products include
ethylbenzene and linear alkylbenzene derivatives.
Fig 3.6 Alkylation Reactor
d. Transalkylation Reactor
Transalkylation reactor is used for chemical reaction involving the
transfer of an alkyl group from one compound to another. The reaction is
used for the transfer of methyl and ethyl between benzene rings. It is often
combined with alkylation in order to convert low valued by-products such as
polyalkylbenzenes into their monosubstituted homologoues, globally
improving the efficiency of the process.
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e. Furnace
Fig 3.7 Furnace
The furnace is an equipment which aids in transferring heat. It is
usually operating in high temperatures. The burner commences the heating
process. Once temperatures drop at a certain level, engagement is
observed.
f. Fractionating Column
A fractionator is a "mini" distillation tower that uses fractional
distillation to separate the components in a product stream from a
conversion unit. They are not considered separate process units but rather
components of the conversion unit they are attached to. Fractionation
makes it possible to isolate more than two components in a mixture in a
single run. This property sets it apart from other separation techniques. ”
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Fig 3.8 Fractionating Column
Components of the Plant
Together with the process that the plant operates with, listed below are
the other components of the plant necessary:
Table 3.3 Components of the Plant
Administrative Building Fire Station
Recreational Area Wastewater Treatment
Facility
Dormitory Storage Tanks
Product Warehouse Parking Area
Electric Generator Area Process Area
26
Fig 3.9 Bird’s Eye View Perspective of Proposed Design Option 1
27
Fig 3.10 Front View of Proposed Design Option 1
28
29
30
31
32
Material Balance and Calculations
Assumptions:
1. Flow rates observes steady-state flow and gas behaves ideally.
2. Arrowheads in the lefts side represent the inflows and arrowheads in the
right sides represent the outflows.
3. The capacity of the plant is 8,777.53 kg/hr of ethylbenzene.
a. Design Option 1
Diagram Calculation Efficiency
m1 + m2 +m13 = m3
m1 m1 = 13,682.954 kg/hr
m13 M-101 m3 m2 = 2943.493 kg/hr 100%
m2 m13 = 46,994.144 kg/hr
m3 = 63,620.591 kg/hr
m3 = 63,620.591 kg/hr
m3 R-101 m4 m4 = (m3)(0.97) 97%
m4 = 61,711.973 kg/hr
m4 = 61,428.306 kg/hr
m4 m14 = 283.667 kg/hr 99%
D-101 m5 m5 = 61,094.853 kg/hr
m14
m6 m5 = 61,094.853 kg/hr
m5 S-101 m6 = (m5)(0.99)(3.4545 x 10-3)
m7 m6 = 208.942 kg/hr 99%
33
m7 = (m5)(0.99)(0.997)
m7 = 60,302.453
m7 = 60,302.453 kg/hr
m8 m8 = (m7)(0.96)(0.839)
m7 C-101 m8 = 48,570.008 kg/hr 96%
m9 m9 = (m7)(0.96)(0.121)
m9 = 9,320.347 kg/hr
m9 = 9,320.347 kg/hr
m10 m10 = (m9)(0.96)(0.981)
m9 u
C-102 m10 = 8,777.530 kg/hr 96%
m11 m11 = (m9)(0.96)(0.019)
m11 = 170.003 kg/hr
m8 m8 = 48,570.008 kg/hr
u
M-102 m12 m11 = 170.003 kg/hr 100%
m11 m12 = 48,740.011 kg/hr
m12 = 48,740.011 kg/hr
m13 m13 = (m12)(0.97)(0.994)
m12 u
R-102 m13 = 46,994.144 kg/hr 97%
m14 m14 = (m12)(0.97)(0.006)
m14 = 283.667 kg/hr
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b. Design Option 2
m1 m1 = 13,143.388 kg/hr
m12 M-101 m3 m2 = 2,808.426 kg/hr 100%
m2 m12 = 45,100.925 kg/hr
m3 = 61,052.739 kg/hr
m3 = 61,052.739 kg/hr
m3 R-101 m4 m4 = (m3)(0.97) 97%
m4 = 59,221.157 kg/hr
m4 m4 = 58,945.132 kg/hr
D-101 m5 m13 = 276.239 kg/hr 99%
m13 m5 = 58,629.157 kg/hr
m5 = 58,629.157 kg/hr
m6 m6 = (m5)(0.99)(0.003)
m5 S-101 m6 = 174.129 kg/hr 99%
m7 m7 = (m5)(0.99)(0.997)
m7 = 57,868.737 kg/hr
m7 = 57,868.737 kg/hr
m8 = (m7)(0.96)(0.839)
m8 m8 = 46,609.796 kg/hr
m7 u
C-101 m9 m9 = (m7)(0.96)(0.158) 96%
m10 m9 = 8,777.530 kg/hr
m10 = (m7)(0.96)(0.003)
35
m10 = 166.662 kg/hr
m8 m8 = 46,609.796 kg/hr
u
M-102 m11 m10 = 166.662 kg/hr 100%
m10 m11 = 46,776.458 kg/hr
m11 = 46,776.458 kg/hr
m12 m12 = (m12)(0.97)(0.994)
m11 u
R-102 m12 = 45,100.925 kg/hr 97%
m13 m13 = (m12)(0.97)(0.006)
m13 = 272.239 kg/hr
c. Design Option 3
m1 m1 = 13,682.954 kg/hr
m13 M-101 m3 m2 = 2,745.342 kg/hr 100%
m2 m13 = 46,994.144 kg/hr
m16 m16 = 198.151 kg/hr
m3 = 63,620.591 kg/hr
m3 = 63,620.591 kg/hr
m3 R-101 m4 m4 = (m3)(0.97) 97%
m4 = 61,711.973 kg/hr
m4 m4 = 61,428.306 kg/hr
D-101 m5 m14 = 283.667 kg/hr 99%
m14 m5 = 61,094.853 kg/hr
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m5 = 61,094.853 kg/hr
m6 m6 = (m5)(0.99)(3.4545 x 10-3)
m5 S-101 m6 = 208.942 kg/hr 99%
m7 m7 = (m5)(0.99)(0.997)
m7 = 60,302.453
m7 = 60,302.453 kg/hr
m8 m8 = (m7)(0.96)(0.839)
m7 C-101 m8 = 48,570.008 kg/hr 96%
m9 m9 = (m7)(0.96)(0.121)
m9 = 9,320.347 kg/hr
m9 = 9,320.347 kg/hr
m10 m10 = (m9)(0.96)(0.981)
m9 u
C-102 m10 = 8,777.530 kg/hr 96%
m11 m11 = (m9)(0.96)(0.019)
m11 = 170.003 kg/hr
m8 m8 = 48,570.008 kg/hr
u
M-102 m12 m11 = 170.003 kg/hr 100%
m11 m12 = 48,740.011 kg/hr
m12 = 48,740.011 kg/hr
m13 m13 = (m12)(0.97)(0.994)
m12 u
R-102 m13 = 46,994.144 kg/hr 97%
m14 m14 = (m12)(0.97)(0.006)
m14 = 283.667 kg/hr
37
m6 = 208.492 kg/hr
m6 F-101 m15 m15 = (m6)(0.99) 99%
m15 = 206.407 kg/hr
m15 = 206.407 kg/hr
m15 u
C-103 m16 m16 = (m14)(0.97) 96%
m16 = 198.151 kg/hr
Energy Balance and Calculations
a. Design Option 1
Diagram Calculation
Q1 = (58,244.313 kg/hr)(1.066 kJ/kg.K)
(303.15 K – 298.15 K)
Q1 = 310,442.188 kJ
Q1 Q2 = (2,808.426 kg)(1.55 kJ/kg.K)
M-101 Q3 (303.15 K – 298.15 K)
Q2 Q2 = 21,765.302 kJ
Q3 = (61,052.739 kg)(1.09 kJ/kg.K)
(303.15 K – 298.15 K)
Q3 = 332,737.428 kJ
Q3 = (61,052.739 kg)(1.09 kJ/kg.K)
(403.15 K – 333.15 K)
Q3 R-101 Q4 Q3 = 4,658,323.986 kJ
Q4 = (59,221.157 kg)(1.12 kJ/kg.K)
38
(403.15 K – 333.15 K)
Q4 = 4,642,938.709 kJ
Q4 = (59,221.157 kg)(1.12 kJ/kg.K)
(328.15 K – 313.15 K)
Q4 D-101 Q5 Q4 = 994,915.438 kJ
Q5 = (58,629.157 kg)(1.12 kJ/kg.K)
(328.15 K – 313.15 K)
Q5 = 984,969.838 kJ
Q5 = (58,629.157 kg)(1.12 kJ/kg.K)
(333.15 K – 313.15 K)
Q5 = 1,313,293.117 kJ
Q6 Q6 = (174.129 kg)(1.766 kJ/kg.K)
Q5 S-101 (333.15 K – 313.15 K)
Q7 Q6 = 6,150.236 kJ
Q7 = (57,868.737 kg)(1.15 kJ/kg.K)
(333.15 K – 313.15 K)
Q7 = 1,330,980.951 kJ
Q7 = (57,888.737 kg)(1.15 kJ/kg.K)
(413.15 K – 328.15 K)
Q8 Q7 = 5,658,624.042 kJ
Q7 C-101 Q9 Q8 = (46,609.796 kg)(1.066 kJ/kg.K)
Q10 (413.15 K – 328.15 K)
Q8 = 4,223,313.616 kJ
39
Q9 = (8,777.530 kg)(1.726 kJ/kg.K)
(413.15 K – 328.15 K)
Q9 = 1,287,751.426 kJ
Q10 = (166.662 kg)(1.946 kJ/kg.K)
(413.15 K – 328.15 K)
Q10 = 27,567.561 kJ
Q8 = (46,609.796 kg)(1.066 kJ/kg.K)
(303.15 K – 298.15 K)
Q8 = 248,430.213 kJ
Q8 Q10 = (170.003 kg)(1.946 kJ/kg.K)
u
M-102 Q11 (303.15 K – 298.15 K)
Q10 Q10 = 1,654.129 kJ
Q11 = (48,740.011 kg)(1.068 kJ/kg.K)
(303.15 K – 298.15 K)
Q11b = 260,271.659 kJ
Q12 = (48,740.011 kg)(1.068 kJ/kg.K)
(453.15 K – 433.15 K)
Q12 u
R-102 Q13 Q12 = 1,041,086.63 kJ
Q13 = (47,277.811 kg/hr)(1.726 kJ/kg.K)
(453.15 K – 433.15 K)
Q13 = 1,632,030.04 kJ
40
b. Design Option 2
Diagram Calculation
Q1 = (58,244.313 kg/hr)(1.066 kJ/kg.K)
(303.15 K – 298.15 K)
Q1 = 310,442.188 kJ
Q1 Q2 = (2,808.426 kg)(1.55 kJ/kg.K)
M-101 Q3 (303.15 K – 298.15 K)
Q2 Q2 = 21,765.302 kJ
Q3 = (61,052.739 kg)(1.09 kJ/kg.K)
(303.15 K – 298.15 K)
Q3 = 332,737.428 kJ
Q3 = (61,052.739 kg)(1.09 kJ/kg.K)
(403.15 K – 333.15 K)
Q3 R-101 Q4 Q3 = 4,658,323.986 kJ
Q4 = (59,221.157 kg)(1.12 kJ/kg.K)
(403.15 K – 333.15 K)
Q4 = 4,642,938.709 kJ
Q4 = (59,221.157 kg)(1.12 kJ/kg.K)
(328.15 K – 313.15 K)
Q4 D-101 Q5 Q4 = 994,915.438 kJ
Q5 = (58,629.157 kg)(1.12 kJ/kg.K)
(328.15 K – 313.15 K)
Q5 = 984,969.838 kJ
41
Q5 = (58,629.157 kg)(1.12 kJ/kg.K)
(333.15 K – 313.15 K)
Q5 = 1,313,293.117 kJ
Q6 Q6 = (174.129 kg)(1.766 kJ/kg.K)
Q5 S-101 (333.15 K – 313.15 K)
Q7 Q6 = 6,150.236 kJ
Q7 = (57,868.737 kg)(1.15 kJ/kg.K)
(333.15 K – 313.15 K)
Q7 = 1,330,980.951 kJ
Q7 = (57,888.737 kg)(1.15 kJ/kg.K)
(413.15 K – 328.15 K)
Q7 = 5,658,624.042 kJ
Q8 = (46,609.796 kg)(1.066 kJ/kg.K)
Q8 (413.15 K – 328.15 K)
Q7 C-101 Q9 Q8 = 4,223,313.616 kJ
Q10 Q9 = (8,777.530 kg)(1.726 kJ/kg.K)
(413.15 K – 328.15 K)
Q9 = 1,287,751.426 kJ
Q10 = (166.662 kg)(1.946 kJ/kg.K)
(413.15 K – 328.15 K)
Q10 = 27,567.561 kJ
Q8 = (46,609.796 kg)(1.066 kJ/kg.K)
(303.15 K – 298.15 K)
42
Q8 = 248,430.213 kJ
Q8 Q10 = (170.003 kg)(1.946 kJ/kg.K)
u
M-102 Q11 (303.15 K – 298.15 K)
Q10 Q10 = 1,654.129 kJ
Q11 = (48,740.011 kg)(1.068 kJ/kg.K)
(303.15 K – 298.15 K)
Q11b = 260,271.659 kJ
Q12 = (48,740.011 kg)(1.068 kJ/kg.K)
(453.15 K – 433.15 K)
Q12 u
R-102 Q13 Q12 = 1,041,086.63 kJ
Q13 = (47,277.811 kg/hr)(1.726 kJ/kg.K)
(453.15 K – 433.15 K)
Q13 = 1,632,030.04 kJ
c. Design Option 3
Diagram Calculation
Q1 = (60,677.098 kg/hr)(1.066 kJ/kg.K)
(303.15 K – 298.15 K)
Q1 = 323,408.9323 kJ
Q1 Q2 = (2,943.493 kg)(1.55 kJ/kg.K)
M-101 Q3 (303.15 K – 298.15 K)
Q2 Q2 = 22,812.07075 kJ
Q3 = (63,620.591 kg)(1.09 kJ/kg.K)
43
(303.15 K – 298.15 K)
Q3 = 346,732.221 kJ
Q3 = (63,620.591 kg)(1.09 kJ/kg.K)
(403.15 K – 333.15 K)
Q3 R-101 Q4 Q3 = 4,854,251.093 kJ
Q4 = (61,711.973 kg)(1.12 kJ/kg.K)
(403.15 K – 333.15 K)
Q4 = 4,838,218.683 kJ
Q4 = (61,711.973 kg)(1.12 kJ/kg.K)
(328.15 K – 313.15 K)
Q4 D-101 Q5 Q4 = 1,036,761.146 kJ
Q5 = (61,094.853 kg)(1.12 kJ/kg.K)
(328.15 K – 313.15 K)
Q5 = 1,026,393.53 kJ
Q5 = (61,094.853 kg)(1.12 kJ/kg.K)
(333.15 K – 313.15 K)
Q5 = 1,368,524.707 kJ
Q6 Q6 = (208.942 kg)(1.766 kJ/kg.K)
Q5 S-101 (333.15 K – 313.15 K)
Q7 Q6 = 7,379.831 kJ
Q7 = (60,302.453 kg)(1.15 kJ/kg.K)
(333.15 K – 313.15 K)
Q7 = 1,386,956.419 kJ
44
Q7 = (60,302.453 kg)(1.15 kJ/kg.K)
(358.15 K – 328.15 K)
Q7 = 2,080,434.629 kJ
Q8 Q8 = (48,570.008 kg)(1.066 kJ/kg.K)
Q7 C-101 (358.15 K – 328.15 K)
Q9 Q8 = 1,553,271.158 kJ
Q9 = (9,320.347 kg)(1.73 kJ/kg.K)
(358.15 K – 328.15 K)
Q9 = 483,726.009 kJ
Q9 = (9,320.347 kg)(1.73 kJ/kg.K)
(413.15 K – 358.15 K)
Q9 = 886,831.017 kJ
Q10 Q10 = (8,777.530 kg)(1.726 kJ/kg.K)
Q9 u
C-102 (413.15 K – 358.15 K)
Q11 Q10 = 833,250.923 kJ
Q11 = (170.003 kg)(1.946 kJ/kg.K)
(413.15 K – 358.15 K)
Q11 = 18,195.421 kJ
Q8 = (48,570.008 kg)(1.066 kJ/kg.K)
Q8 (303.15 K – 298.15 K)
u
M-102 Q12 Q8 = 258,878.153 kJ
Q11 Q11 = (170.003 kg)(1.946 kJ/kg.K)
(303.15 K – 298.15 K)
45
Q11 = 1,654.129 kJ
Q12 = (48,740.011 kg)(1.068 kJ/kg.K)
(303.15 K – 298.15 K)
Q12 = 260,271.659 kJ
Q12 = (48,740.011 kg)(1.068 kJ/kg.K)
(453.15 K – 433.15 K)
Q12 u
R-102 Q13 Q12 = 1,041,086.63 kJ
Q13 = (47,277.811 kg/hr)(1.726 kJ/kg.K)
(453.15 K – 433.15 K)
Q13 = 1,632,030.04 kJ
Q6 = (208.492 kg)(1.766 kJ/kg.K)
(583.15 K – 413.15 K)
Q6 F-101 Q15 Q6 = 62,593.468 kJ
Q15 = (206.407 kg)(1.766 kJ/kg.K)
(583.15 K – 413.15 K)
Q15 = 61,697.510 kJ
Q15 = (206.407 kg)(1.766 kJ/kg.K)
(1473.15 K – 583.15 K)
Q15 u
C-103 Q16 Q15 = 324,418.138 kJ
Q16 = (198.151 kg)(1.535 kJ/kg.K)
(1473.15 K – 583.15 K)
Q16 = 270,703.989 kJ
46
CHAPTER IV
ECONOMIC STUDY AND ANALYSIS
This chapter presents all the required calculations and complete data
concerning the economic analysis of the proposed Ethylbenzene Production
Plant. It comprises all the constituents of calculating the total costs of designing,
constructing, and building the plant. Furthermore, it is necessary for it will provide
as the basis for the economic viability of the proposed plant.
1. Capital Expenditures
Capital Expenditure, also known as Capex, is defined as the fund utilized
by the company to acquire, enhance, and maintain physical assets such as
properties, buildings, technology, and equipment.
A. Design Option 1
a. Equipment
Alkylation Reactor
Equipment Cost = (Cost of Equipment) (Number of
Equipment)
Equipment Cost = Php 20,600,000 x 1
Equipment Cost = Php 20,600,000
Centrifugal Pump
Equipment)
Equipment Cost = Php Php 20,250x 12
Equipment Cost = Php 243,000
47
Benzene Distillation Column
Equipment)
Equipment Cost = Php Php 15,630,000 x 1
Ethylbenzene Distillation Column
Equipment)
Equipment Cost = Php 18,795,000.00 x 1
Equipment Cost = Php 18,795,000.00
Feed Tank
Equipment)
Flash Drum
Equipment)
Equipment Cost = Php 1,300,000x 1
Mixer
Equipment)
48
Equipment Cost = Php 454,511.00x 6
Production Tank
Equipment)
Reboiler
Equipment)
Equipment Cost = Php 850,000 x 4
Transalyklation Reactor
Equipment)
Equipment Cost = Php 15, 600,000x1
Equipment Cost = Php 15, 600,000
Water Tanks
Equipment)
Equipment Cost = Php 240 000,000x5
49
Table 4.1 Cost of Equipments for Design Option 1
Equipment Unit Cost Total Cost
Alkylation Reactor 1 Php 20,400,000 Php 20,600,000
Centrifugal Pump 12 Php 20,250 Php 243,000.00
Benzene Distillation Column 1 Php 15,630,000 Php 15,630,000
Ethylbenzene Distillation 1 Php 18,795,000 Php 18,795,000
Column
Feed Tank 2 Php 2,619,000 Php 2,619,000
Flash Drum 1 Php 1,300,000 Php 1,300,000
Mixer 6 Php 504,511.00 Php 3,027,066.0
Production Tank 1 Php Php 2,619,000.00
2,619,000.00
Reboiler 4 Php 850,000 Php 3,400,000
Transalkylation Reactor 1 Php 15, 600,000 Php 15, 600,000
Water Tanks 5 Php 240,000 Php 1, 200,000.00
Total Cost Php 87,172,066.00
1. Capital Cost
The list of expenses for the purchase of land, buildings, construction and
equipment in the proposed Ethylbenzene Plant is very essential to compute for
the Capital Cost.
a. Land
50
The cost of land in Limay, Bataan is assumed to be Php 5000.00
per square meter.
Land Cost = (Price per m2) (Total land Area)
Land Cost = (Php 5000.00/ m2) (11, 000 m2)
Land Cost = Php55,000,000.00
b. Building
According to Philippine Average Construction Cost, as of April 2019
the current cost per square meter is Php 10,000.00
Admin Building
Building Cost = (Total m2 of the building) (Php10,000/ m2)
Building Cost = (650m2) (Php10,000/ m2)
Building Cost = Php 6,500,000.00 x 5
Building Cost = Php 32,500,000.00
Central Control Room
Building Cost = (270m2) (Php 10,000/ m2) x 3
Building Cost= Php 8,100,000.00
Fire Station
Building Cost = (150m2) (Php10,000 m2)
Building Cost= Php 924,900.00
51
Guard House
Leisure Area
Table 4. 2 Cost of Buildings for Design Option 1
Description Quantity Cost (Php)
Admin Building 1 Php 32,500,000.00
Guard House 1 Php 100,000.00
Central Control Room 1 Php 10,800,000.00
Fire Station 1 Php 1,500,000.00
Leisure area 1 Php 2,000,000.00
Jetty 1 Php 2,000,000.00
Wastewater Treatment 1 Php 2,400,000.00
Facility
TOTAL: Php 51,300,000.00
52
c. Vehicle
Fire truck
Cost assumption of one (1) Fire truck (Source: alibaba.com) = Php
4,400,000.00
Vehicle cost = (Number of Vehicles) (Cost of Vehicle)
Vehicle cost = (2) (Php 4,400,000.00)
Vehicle cost = Php 8,800,000.00
Tanker Truck
Cost assumption of one (1) tanker truck (Source: philkotse.com) =
Php 7,000,000.00
Vehicle cost = (10) (Php 7,000,000.00)
Delivery Ship
Cost assumption of one (1) delivery ship (Source:
madeinchina.com) = Php 27,000,000.00
Ship cost = (Number of Ship) (Cost of Ship)
Ship cost = (1) (Php 27,000,000.00)
Ship cost = Php Php 27,000,000.00
Forklift
Cost assumption of one (1) forklift (Source: philkotse.com) = Php
2,180,000
53
Vehicle cost = (10) (Php 7,000,000.00)
Table 4.3 Cost of Vehicles for Design Option 1
Description Unit Quantity Cost
Tanker Truck Pc 10 Php 70,000,000.00
Fire Truck Pc 1 Php 8,800,000.00
Delivery Ship Pc 1 Php 27,000,000.00
Forklift Pc 4 Php 8,720,000.00
TOTAL= Php 114,520,000
d. Installation
Installation is the fixed location of a complete system, along wih
the assemblies, the parts and its accessories. Installation is also
consist of connection to services required to make the installed
equipment efficient and ready for operation. Furthermore, Equipment
Installation is equivalent to 47% of purchased equipment costs. The
proponents assumed assumed that the installation for the design
option 1 is:
Installation Cost = 47% of Total Equipment Cost
Installation Cost = 0.47 x (Php 87,172,066.00)
Installation Cost = Php 41,196,471.02
54
Table 4.4 CAPEX of Design Option 1
Plant Expenses Cost (Php)
Equipment Cost Php 87,172,066.00
Land Cost Php55,000,000.00
Building Cost Php 51,300,000.00
Installation Cost Php 41,196,471.02
Vehicles Cost Php 114,520,000
TOTAL: Php 168,772,210.50
CAPEX = Php 349,668,537.02
B. Design Option 2
a. Equipment
Alkylation Reactor
Equipment)
Centrifugal Pump
Equipment)
55
Equipment)
Equipment)
Feed Tank
Equipment)
Flash Drum
Equipment)
Mixer
Equipment)
56
Production Tank
Equipment)
Reboiler
Equipment)
Equipment)
Water Tanks
Equipment)
57
Column
Feed Tank 2 Php 2,619,000 Php 5,238,000.00
Mixer 6 Php 504,511.00 Php 3,027,066.0
Production Tank 1 Php2,619,000.00 Php 2,619,000.00
Reboiler 6 Php 850,000 Php 5,100,000
Water Tanks 5 Php 240,000 Php 1,200,000.00
Total Cost Php 89,083,566
1. Capital Cost
The list of expenses for the purchase of land, buildings, construction
and equipment in the proposed Ethylbenzene Plant is very essential to
compute for the Capital Cost.
58
a. Land
per square meter.
Land Cost = (Php 5000.00/ m2) (11, 000 m2)
Land Cost = Php55,000,000.00
b. Building
According to Philippine Average Construction Cost, as of April
2019 the current cost per square meter is Php 10,000.00
Admin Building
Fire Station
59
Guard House
Leisure Area
Table 4.6 Cost of Buildings for Design Option 2
Jetty 1 Php 2,000,000.00
Facility
TOTAL: Php 51,300,000.00
60
c. Vehicle
Fire truck
4,400,000.00
Vehicle cost = (2) (Php 4,400,000.00)
Tanker Truck
Php 7,000,000.00
Vehicle cost = (10) (Php 7,000,000.00)
Delivery Ship
Ship cost = (1) (Php 27,000,000.00)
Forklift
2,180,000
61
Vehicle cost = (10) (Php 7,000,000.00)
TOTAL= Php 114,520,000
d. Installation
the assemblies, the parts and its accessories. Installation is also consist
of connection to services required to make the installed equipment
efficient and ready for operation. Furthermore, Equipment Installation is
equivalent to 47% of purchased equipment costs. The proponents
assumed assumed that the installation for the design option 1 is:
62
TOTAL: Php 168,772,210.50
CAPEX = Php 349,668,537.02
B.Design Option 3
a. Equipment
Alkylation Reactor
Equipment)
Centrifugal Pump
Equipment)
63
Equipment)
Equipment)
Feed Tank
Equipment)
Fractionator
Equipment)
Furnace
Equipment)
64
Equipment Cost = 1,000,000.00 x 1
Equipment Cost = 1,000,000.00
Flash Drum
Equipment)
Mixer
Equipment)
Production Tank
Equipment)
Reboiler
Equipment)
65
Equipment)
Water Tanks
Equipment)
Column
Feed Tank 2 Php 2,619,000 Php 5,238,000.00
Fractionator Php 1,031,500 Php 1,031,500
Furnace 1 Php 1,000,000 Php 1,000,000
Mixer 6 Php 504,511.00 Php 3,027,066.0
66
Production Tank 1 Php2,619,000.00 Php 2,619,000.00
Reboiler 6 Php 850,000 Php 5,100,000
Water Tanks 5 Php 240,000 Php 1,200,000.00
Total Cost Php 91,383,566.00
1. Capital Cost
The list of expenses for the purchase of land, buildings, construction
and equipment in the proposed Ethylbenzene Plant is very essential to
compute for the Capital Cost.
a. Land
per square meter.
Land Cost = (Php 5000.00/ m2) (11, 000 m2)
Land Cost = Php55,000,000.00
b. Building
According to Philippine Average Construction Cost, as of April
2019 the current cost per square meter is Php 10,000.00
67
Admin Building
Building Cost = (Total m2 of the building) (Php10,000/
m2)
m2)
Fire Station
m2)
Guard House
m2)
68
Leisure Area
m2)
Table 4.10 Cost of Buildings for Design Option 3
Jetty 1 Php 2,000,000.00
Facility
TOTAL: Php 51,300,000.00
c. Vehicle
Fire truck
4,400,000.00
69
Vehicle cost = (2) (Php 4,400,000.00)
Tanker Truck
Php 7,000,000.00
Vehicle cost = (10) (Php 7,000,000.00)
Delivery Ship
Ship cost = (1) (Php 27,000,000.00)
Forklift
2,180,000
Vehicle cost = (10) (Php 7,000,000.00)
70
TOTAL= Php 114,520,000
d. Installation
the assemblies, the parts and its accessories. Installation is also consist
of connection to services required to make the installed equipment
efficient and ready for operation. Furthermore, Equipment Installation is
equivalent to 47% of purchased equipment costs. The proponents
assumed assumed that the installation for the design option 1 is:
71
TOTAL: Php 168,772,210.50
CAPEX = Php 349,668,537.02
2. Operating Expenditures
A. Design Option 1
a. Raw Materials (1$=Php52.00) (assume 300 days/year)
Cost of Benzene = $0.19/kg = Php 9.88/kg
Annual Cost of Benzene = (436,875,105.60 kg)(Php 9.88/kg)
Cost of benzene= Php 4,368,751,956.00
Cost of Ethylene = $0.71/kg = Php 36.8/kg
Annual Cost of Ethylene = (19, 610,719.20 kg)( Php 36.8/kg)
Cost of Ethylene = Php 721,674,466.56
Cost of Ethane = $0.95/kg = Php 49.53/kg
Annual Cost of Ethane = (1,582,430.40 kg)( Php 49.53/kg)
Cost of Ethane = Php 78,377,777.71
Cost of Raw Materials = Php (4,368,751,956.00 + 721,674,466.56 +
78,377,777.71
Cost of Raw Materials = Php 5,168,803,300.27 per year
72
b. Operating Labor
Table 4.13 Employee Breakdown of Design Option 1
TECHNICAL DEPARTMENT
Position No. of Salary per Total Salary Reference
Staff Month per per Month
person (Php) (Php)
President 1 300,000.00 300,000
Vice President 1 120,000 120,000
Operations Manager 1 150,000 150,000
Plant Manager 2 75,000 150,000
Lab Manager 1 30,000 30,000
Lab Technician 4 15,000 60,000
Shift Operators 8 30,000 240,000
Maintenance 1 45,000 45,000
Supervisor/
Technician
Quality Assurance 3 25,000 250,000
Engineer
Plant Engineer 10 40,000 400,000
Field Engineer 7 25,000 175,000
Safety Engineer 4 25,000 75,000
Process Engineer 5 40,000 200,000
Total Personnel 61
73
Total Salary per month Php 2,285,000
Total Salary per year Php 274,200,000
MARKETING DEPARTMENT
Vice President 1 120,000 120000
Marketing Manager 1 75,000 75000
Marketing 3 15,000 45,000
Researchers
Marketing Sales 3 20,000 60,000
Agent
Total Personnel 9
Total Salary per month Php 300,000.00
HUMAN RESOURCE DEPARTMENT
Human Resource 1 45,000 45,000
Manager
Officers
Development Officers 5 25,000 125,000
Training Coordinator 5 20,000 100,000
Staff Accountant 3 20,000 60,000
74
Total Personnel 17
Total Salary per year Php 5,040,000.00
ACCOUNTING DEPARTMENT
Accounting Manager 3 70,000 210,000
Financial Officers 3 40,000 120,000
Internal Auditors 2 35,000 70,000
Financial Accountant 2 20,000 40,000
Credit Controller 2 20,000 40,000
Total Personnel 10
TOTAL LABOR COST PER YEAR = Php 41,940,000.00
c. Tax
According to Philippine taxes, city government impose taxes as
stated by the provincial governments and municipality.
Tax = 30% of (1% of gross receipt)
Tax = 0.30 x (Php 41,940,000.00x 0.01)
Tax = Php 125,820.00
OPEX =Php 5,210,869,120.27
75
B. Design Option 2
a. Raw Materials (1$=Php52.00) (assume 300 days/year)
Annual Cost of Ethylene = (18,901,220..50)( Php 36.8/kg)
Cost of Ethylene = 695,564,914.40
Cost of Ethane = 69,958,485.25
Cost of Raw Materials = Php (695,564,914.40 + Php
3,193,590,536.00 +69,958,485.25
a. Operating Labor
person (Php) (Php)
President 1 300,000.00 300,000
76
Lab Manager 1 30,000 30,000
Supervisor/
Technician
Engineer
Total Personnel 61
Marketing 3 15,000 45,000
Researchers
77
Agent
Total Personnel 9
Manager
Officers
Total Personnel 17
78
Total Personnel 10
b. Tax
Tax = 0.30 x (Php 41,940,000.00x 0.01)
Tax = Php 125,820.00
OPEX =Php 5,210,869,120.27
C. Design Option 3
a.Raw Materials (1$=Php52.00) (assume 300 days/year)
Annual Cost of Ethylene = (19, 610,719.20 kg)( Php 36.8/kg)
Cost of Ethylene = Php 721,674,466.56
79
Cost of Ethane = Php 78,377,777.71
Cost of Raw Materials = Php (4,368,751,956.00 + 721,674,466.56 +
78,377,777.71
b.Operating Labor
person (Php) (Php)
President 1 300,000.00 300,000
Lab Manager 1 30,000 30,000
Supervisor/
Technician
Engineer
80
Total Personnel 61
Marketing 3 15,000 45,000
Researchers
Agent
Total Personnel 9
Manager
81
Officers
Total Personnel 17
Total Personnel 10
c. Tax
82
Tax = 0.30 x (Php 41,940,000.00x 0.01)
Tax = Php 125,820.00
OPEX =Php 5,210,869,120.27
3. Total Cost
A. Design Option 1
Total Cost = Capital Expenditures + Operating Expenditures
Total Cost = Php (349,668,537.02 + Php 5,210,869,120.27)
Total Cost = Php 5,560,537,657
B. Design Option 2
Total Cost = Php (418,859,752.02 + 3,997,869,855.65)
C. Design Option 3
Total Cost = Php (421,846,057.02 + 5,084,670,580.27)
83
4. Net Present Value
A. Design Option 1
Table 4.16 Net Present Value of Design Option 1
Net Present
Year Cash Inflow
Value
-
0
₱59,154,274.11 ₱290,514,262.91
-
1
₱56,337,403.91 ₱234,176,859.00
-
2
₱53,654,670.39 ₱180,522,188.60
-
3
₱51,099,686.09 ₱129,422,502.51
4 ₱48,666,367.70 -₱80,756,134.81
5 ₱46,348,921.62 -₱34,407,213.18
6 ₱44,141,830.12 ₱9,734,616.94
7 ₱42,039,838.21 ₱51,774,455.14
8 ₱40,037,941.15 ₱91,812,396.29
9 ₱38,131,372.52 ₱129,943,768.82
10 ₱36,315,592.88 ₱166,259,361.70
84
B. Design Option 2
Net Present
Year Cash Inflow
Value
0 ₱59,154,274.11 ₱359,705,477.91
1 ₱56,337,403.91 ₱303,368,074.00
2 ₱53,654,670.39 ₱249,713,403.60
3 ₱51,099,686.09 ₱198,613,717.51
4 ₱48,666,367.70 ₱149,947,349.81
5 ₱46,348,921.62 ₱103,598,428.18
6 ₱44,141,830.12 ₱59,456,598.06
7 ₱42,039,838.21 ₱17,416,759.86
8 ₱40,037,941.15 ₱22,621,181.29
9 ₱38,131,372.52 ₱60,752,553.82
10 ₱36,315,592.88 ₱97,068,146.70
85
C. Design Option 3
Net Present
Year Cash Inflow
Value
0 ₱51,322,037.62 ₱370,524,019.40
1 ₱51,322,037.62 ₱321,645,888.34
2 ₱48,878,131.06 ₱275,095,287.33
3 ₱46,550,601.01 ₱230,761,381.60
4 ₱44,333,905.73 ₱188,538,614.24
5 ₱42,222,767.36 ₱148,326,454.86
6 ₱40,212,159.39 ₱110,029,160.20
7 ₱38,297,294.66 ₱73,555,546.24
8 ₱36,473,613.96 -₱38,818,771.04
9 ₱34,736,775.20 -₱5,736,128.00
10 ₱33,082,643.05 ₱25,771,151.09
5. Payback Period
A. Design Option 1
Payback Period = CAPEX / Net Annual Income
Payback Period = Php 349,668,537.02 / 59,154,274.11
Payback Period = 5.911128862
Payback Period = Approximately 6 years
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B. Design option 2
Payback Period = Php 418,859,752.02 / 59,154,274.11
C. Design option 3
Payback Period= Php 421,846,057.02 / 59,154,274.11
6. Rate of return
A. Design Option 1
𝑁𝐸𝑇 𝐴𝑁𝑁𝑈𝐴𝐿 𝐼𝑁𝐶𝑂𝑀𝐸
ROI = 𝐶𝐴𝑃𝐸𝑋+𝑂𝑃𝐸𝑋
𝑃ℎ𝑝 1,138,122,762.24
ROI = 𝐏𝐡𝐩 𝟓,𝟓𝟔𝟎,𝟓𝟑𝟕,𝟔𝟓𝟕
ROI = 20.47%
B. Design Option 2
𝑁𝐸𝑇 𝐴𝑁𝑁𝑈𝐴𝐿 𝐼𝑁𝐶𝑂𝑀𝐸
ROI = 𝐶𝐴𝑃𝐸𝑋+𝑂𝑃𝐸𝑋
𝑃ℎ𝑝 1,138,122,762.24
ROI =
4,416,729,608
ROI = 25.76%
C. Design Option 3
𝐏𝐡𝐩 𝟏,𝟏𝟑𝟖,𝟏𝟐𝟐,𝟕𝟔𝟐.𝟐𝟒
ROI = 𝟓,𝟓𝟎𝟔,𝟓𝟏𝟔,𝟔𝟑𝟕
ROI = 20.66%
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CHAPTER V
ENVIRONMENTAL MANAGEMENT OF THE PROJECT
This chapter includes the environmental and health impacts, and safety
precautions of Ethylbenzene Production Plant as well as the possible mitigation
accomplish to complete the plant design.
The three design options’ variances of the Ethylbenzene Production Plant
are negligible. Therefore, the following attentions will apply to all three design
options. Moreover, the considerable variances among these designs are
emphasized and summarized in the final part of this chapter for the purpose of
selecting the best design option considering the numerous environmental factors.
I. Environmental Impact Assessment
The Environmental Impact Assessment (EIA) is known to clearly rate
and assess the possible effects of the development of Ethylbenzene
Production Plant on land, water, atmospheric environment, human
environment and the ecology. More so, the EIA also checks the effects on
the environment of the construction, operational phases and utilities of the
plant.
Ethylbenzene is widely distributed in the environment principally due
to its use as a solvent alone and as a component of mixed xylenes, and as
a fuel additive, generally at very low levels in both ambient and indoor air,
water, sediment soil and biota. Large quantities have been emitted during
its production, use and disposal. The highest levels of ethylbenzene found
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in the environment are often associated with industrial operations, and it is
one of the most commonly found substances at hazardous waste sites.
I. EIA Related Rules and Regulation
a. REPUBLIC ACT 9275 PHILIPPINE CLEAN WATER ACT OF 2004
The law aims to protect the country's water bodies from
pollution from land-based sources (industries and commercial
establishments, agriculture and community/household activities). It
provides for comprehensive and integrated strategy to prevent and
minimize pollution through a multi-sectoral and participatory
approach involving all the stakeholders.
b. REPUBLIC ACT 8749 PHILIPPINE CLEAN AIR ACT OF 1999
The law aims to achieve and maintain clean air that meets the
National Air Quality guideline values for criteria pollutants,
throughout the Philippines, while minimizing the possible associated
impacts to the economy.
c. REPUBLIC ACT 6969 TOXIC SUBSTANCES, HAZARDOUS AND
NUCLEAR WASTE CONTROL ACT OF 1990
The law aims to regulate restrict or prohibit the importation,
manufacture, processing, sale, distribution, use and disposal of
chemical substances and mixtures the present unreasonable risk to
human health. It likewise prohibits the entry, even in transit, of
hazardous and nuclear wastes and their disposal into the Philippine
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territorial limits for whatever purpose; and to provide advancement
and facilitate research and studies on toxic chemicals.
d. PRESIDENTIAL DECREE 1586 ENVIRONMENTAL IMPACT
STATEMENT (EIS) STATEMENT OF 1978
The Environment Impact Assessment System was formally
established in 1978 with the enactment of Presidential Decree no.
1586 to facilitate the attainment and maintenance of rational and
orderly balance between socio-economic development and
environmental protection. EIA is a planning and management tool
that will help government, decision makers, the proponents and the
affected community address the negative consequences or risks on
the environment. The process assures implementation of
environment-friendly projects.
II. Description of the Environment
a. Physical Environment
Air Quality
Ethylbenzene is ubiquitous in urban and rural atmospheres,
resulting primarily from vehicle, petroleum and industrial emissions.
Because of its high vapour pressure and low solubility, released
ethylbenzene will disperse into the atmosphere.
The common problem that occurs during the construction and
operational activities of the proposed plant are quarrying and filling
and the transportation of production equipment. These particulates
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can affect the workers through inhaling the dust particles diectly to
the lungs that causes heart and lung diseases.However, from the
equipment, the risk it may impose is the various gas emissions and
exhaust that may be unsafe to the environment and especially the
workers.
Water Quality
Ethylbenzene, usually at < 1 μg/L, is found only infrequently
in drinking water from ground or surface sources. The levels of
ethylbenzene in surface water are generally less than 0.1 μg/L in
non-industrial areas. In industrial and urban areas, concentrations of
up to 15 μg/L ethylbenzene have been reported.
The proposed plant can contribute in the contamination of
water quality due to the untreated waste water that are used in some
equipment. It is mixed with some chemicals used in the process.
Untreated waste water that is consumed during the production of the
proposed plant are considered as the water quality impact to the
environment and commonly to the workers. Untreated water that are
released from plant unit equipment contains pollutants and toxic
chemicals. The water used must be treated before using it again for
production. Without proper treatment of toxic chemicals, it may give
harmful effects to the workers when inhaled. It should not be
disposed in bodies of water because of its unsafe effects.
Soil and sediments
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Ethylbenzene can be released to soils from a variety of
sources, including spillage of gasoline and other fuels, leaching from
landfill sites and disposal of solvents and household products such
as paint, cleaning and degreasing solvents, varnishes and
pesticides.
Geology
The Ethylbenzene Production Plant is located in Brgy. Alas
Asin, Mariveles, Bataan. The area is surrounded with great
biodiversity and also near to bodies of water. Also, some of the
projects in the vicinity is related to the industry like Petron
Corporation in Limay, Bataan. With that, the location of the plant is
clearly allocated for industrial development and thus does not have
negative effect to the geology. The geology of the site and its
immediate environment is composed primarily of the Alas-asin
pyroclastic flow deposits. The project site has a flat to moderate
slope of 2-5°. (Summary of EIA, 2014)
Noise
The impact of the major noise sources on the work
environment at a production plant is minimal. Furnaces, gas turbines
and steam turbo generators, switching stations, and transformers are
operated remotely. During periodic inspections, personnel are
required to wear ear protection devices in high noise areas. These
devices take the form of ear plugs, ear muffs and hard hat-ear muffs
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which do not hamper employee’s work in any manner. A modernized
noise prediction model will be performed to enable to know and
anticipate the noise that comes from the facilities used in the plant.
III. Health and Safety
In humans, eye irritation was observed after exposure to 10,000
ppm ethylbenzene for a few seconds. Irritation and chest constriction
after acute-duration exposures to 2,000 ppm ethylbenzene. These
symptoms worsened as the concentration was increased to 5,000 ppm.
Human exposures in the range of 2,000–5,000 ppm ethylbenzene were
associated with dizziness and vertigo. Complete recovery occurs if
exposure is not prolonged. Momentary ocular irritation, a burning
sensation, and profuse lacrimation are observe in humans exposed to
1,000 ppm ethylbenzene. Workers exposed occupationally to solvent
mixtures that included ethylbenzene shows an increased incidence of
hearing loss compared to unexposed individuals. Respiratory effects are
not observed in exposed to 55.3 ppm ethylbenzene for 15 minutes. An
increase in the mean number of lymphocytes and a decrease in
hemoglobin levels are observed during a 1-year exposed chronically to
solvents including ethylbenzene. However, no adverse hematological
effects are observed in workers exposed to ethylbenzene for 20 years.
Ethylbenzene is harmful, a flammable liquid and is a severe eye
irritant. It is the reactant used in the main process of the plant. It
dehydrogenates to form styrene as the main reaction, but other side
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reactions form toluene and benzene. This chemical would cause problems
with fires on site. ethylbenzene should be kept away from the other
flammable materials in process, to avoid the risk of fire.
Mitigation Measures
In order to sustain the effectiveness and cleanliness of the proposed plant,
the management should keep their environment clean and uncontaminated. They
should be prepared for rules and mitigation for safe production.
A. Hazard Prevention and Control
The management of the plant ensures that the worksite and all
machinery is cared for properly so that the environment remains safe
and healthy. If maintenance needs exceed the capability of the worksite
employees, contract employees are hired to do the work and are
screened and supervised to ensure they work according to the site‘s
safety and health procedures. All employees, including all levels of
management, are held accountable for obeying site safety and health
rules.
During Construction
1. Possible hazards will be made more secure as could reasonable be
expected.
2. To reduce noise production, effective sound barrier walls partictularly
advance absorptive materials will be used. Soundproofing plant
facilities will help reduce occupational exposure to high sound levels
creating a productive and safe working environment.
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3. Planting trees will be conducted to compensate well with the
environment and as part of giving back to nature.
4. By providing new area for the native species, it will prevent habitat
loss.
During Operation
1. The plans and strategies will be further discussed with the local
government to avoid misunderstanding and to ensure the welfare of
the residents as well as the environment.
2. Proper and regular monitoring of air and water quality will be done to
ensure the health of the workers and the nearby areas.
3. Efficient, Transparent, and Strict implementation of the proper use of
personal protective equipments will be observed and practiced.
4. Waste will be treated and disposed suitably.
B. Medical Services
The company provides medical care, travel medicines,
immunizations and medical equipment for the employees and to its near
residences.
C. Personal Protective Equipment
Accidents happen where the consequences for those involved
become unnecessarily extensive, for example as a result of the injured
person wearing the incorrect personal protective equipment – or no
protective equipment at all. More often than not, these are burn injuries.
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Basic personal protective equipment (PPE) were provided to
each of the employees of the plant to minimize exposure to serious
workplace injuries and illnesses. PPE program is also implemented to
address the hazards present; the selection, maintenance, and use of
PPE; the training of employees; and monitoring of the program to ensure
its ongoing effectiveness.
Table 5.1
Summary of Recommended PPE According To Hazard
OBJECTIVE WORKPLACE HAZARD SUGGESTED PPE
Eye and Flying particles, molten Safety Glasses with side-shields,
face metal, liquid chemicals, protective shades.
protection gases or vapors, light
radiation.
Head Falling objects, inadequate Plastic Helmets with top and side
protection height clearance, and impact protection.
overhead power cords
Hearing Noise, ultra-sound. Hearing protectors (ear plugs or ear
protection muffs).
Foot Falling or rolling objects, Safety shoes and boots for protection
protection pointed objects. Corrosive against moving &falling objects,
or hot liquids liquids and chemicals.
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Hand Hazardous materials, cuts Gloves made of rubber or synthetic
protection or lacerations, vibrations, materials (Neoprene), leather, steel,
extreme temperatures. insulating materials, etc.
Respiratory Dust, fogs, fumes, mists, Facemasks with appropriate filters for
protection gases, smokes, vapors dust removal and air purification
(chemicals, mists)
D. Security
Security Personnel (security guards) are available in the plant, and
for extensive security purposes, Closed Circuit Television Cameras
(CCTV) surrounds every corner of the plant, from the entry point, control
room, processing area, and up to the exit point. These would make sure
the plant and every worker are secure and safe from work enabling them
to work with no worries in their mind.
E. Workplace Inspection
The company conducts monitoring and inspections to prevent
injuries and illnesses and equipment failure in the power plant. A
thorough examination of the workplace and equipment can identify
hazards present and to set a corrective action to minimize or remove the
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hazard present in the workplace. This improves the safety of the
employees.
F. Fire Drill
The company conducts an emergency fire procedure once a
month. This emergency procedure trains the employees what to be done
in case of fire, practicing the evacuation of a building if there is ever a
fire, smoke, carbon monoxide or other emergency in the plant. The
company gives emergency plan procedures for handling sudden or
unexpected situations that improves the safety of employees.
Waste
Wastes with potential impacts on the environment will be treated with most
recent technology available in accordance with the relevant national and
international legal framework. Given the design options, the wastes that the
ethylbenzene production plant produce are waste cooling water, steam used for
heating, ethane (approximately 209 kg/hr in design option 3), carbon dioxide (in
the furnace of design option 3), and used catalysts (FeBr3 and AlCl3). The positive
impacts that will be benefited from the project are basically the additional material
availability and reliability in the region which is currently experiencing frequent
shortages. The impact of reliability will improve infrastructural conditions for further
investments, basically related to the chemical sector, in the area. Accordingly, this
will enable increased employment opportunities to the businesses in the area and
hence help to improve the social wellbeing also with improved life standards due
to satisfactory electricity supply.
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Process and Waste Water Treatment:
A waste treatment facility for treating wastewater from sewer is extremely
important for both environmental and safety reasons. Process water used for
heating and cooling must be treated before release into the environment. This
includes temperatures and concentrations. One hazard associated with oily water
sewers is H2S release. Hot process water containing dissolved H2S enters the
system, and as the temperature drops, H2S gas is released as a result of a
decrease in solubility. This can poison plant employees and release into the
environment. Design must take this into consideration.
Waste Treatment Facility
The waste treatment facility of Ethylbenzene Production Plant is using activated
carbon treatment facility. Carbon filtering is a method of filtering that uses a bed
of activated carbon to remove contaminants and impurities, using chemical
adsorption. Active charcoal carbon filters are most effective at removing chlorine,
particles such as sediment, volatile organic compounds, taste and odor from water.
Effluents were release safe into the Mariveles Bay.
Socio- Economic Benefits
This section presents the socio- economic benefits of the project for each
design option including the social, political and ethical considerations.
a. Design Option I
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Design option I is a production plant of ethylbenzene from raw
material ethylene and benzene. The plant will have the alkylation process
throughout the production. The socio-economic benefits of the proposed
plant will be the good quality ethylbenzene which will be purchased by
Filipino consumers especially plastic manufacturing companies. It will give
off various jobs to the target place residence.
b. Design Option II
Design Option II is an Ethylbenzene Production Plant with only one
distillation column which has three end product. It gives more efficient
process in a low cost management. Having a single distillation column
eliminates the risk of leakage and lower the toxic air emissions.
c. Design Option III
Design Option III is an Ethylbenzene Production Plant with
Fractionator for thermal cracking process. This plant model involves
alkylation process with cracking which upgrade very heavy fractions or to
produce light fractions or distillates. It will be efficient to use since there is
addition to the process of production.
Social, Political, and Ethical Considerations
Strategic decisions have the potential to impact the society and the people
around it. Decisions based on discretionary choices such volunteerism and charity
works are great contributors to social responsibility.
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Decisions are always supported with legal confirmations. The operation
should always comply with the prosduction process. Compliance from the national
government laws up to the local government will be considered during the projects’
construction and operation.
Ethical decisions and codes will be considered based on commonly shared
values in society and the proposed location. Strong ethical codes will be
implemented as a pSSreventive action against ethical violations that may arise
when workers show unethical behavior. Engaging employees with community
volunteer work and trainings will greatly contribute to social responsibility.
Process Safety Documentation
The process safety information should include chemical hazard
documentation and information on each of the critical pieces of equipment with
safe flammability, pressure, temperature, and material flow ranges. Workers in this
process should be instructed in the methods of safely handling each of the
chemicals involved. They should also have access to documentation on initial
startup, normal startup, and emergency operations. A hazard analysis should be
conducted to determine the extent to which a process hazard could spread, the
number of workers who would potentially be affected, and the control and detection
methods that could be implemented to prevent the hazard.
Following this, appropriate safework practices must be implemented to
ensure the safety of workers on the process, including employee training and
safety and protection systems in the event of exposure to hazardous chemicals
and controls to prevent exposure. The process layout must include access for
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emergency and maintenance vehicles in the event of an emergency. Furthermore,
space must be available around each individual unit for repair and accessibility. A
central control room must be implemented to control the process units in each
section. The room should have positive pressure to prevent toxins from entering,
and should be located in a region that minimizes the risk of hazard to employees.
Storage tanks should be classified as above-ground storage tankage, separated
from the process units, and located downwind to minimize the likelihood of ignition
in the event of a leak. Tank inspection and 52 cleaning protocols should be
implemented to prevent worker exposure to toxic chemicals.
Managing Environmental Impacts
To sustain the most efficient ecological and environmental balance, the
company supports and executes programs that would profit the relative
communities and the company itself. The plant design should be environment
friendly and will not cause any harm. Furthermore, Recovering and Recycling
process materials should be maximized while energy consumption should be
minimized to reach the economic extent. The plant design must also be
controllable and safe to operate. The emission of the pollutants produced by the
construction of the plant should be within the standards set by the National
Ambient Air Quality Standards for Source Specific Air Pollutants. On the other
hand, the noise produced by the Ethylbenzene Production plant shall conform the
standards set by the NPCC memorandum. And lastly, the DENR regulations shall
be met in terms of the waste disposal. With all the concerns discussed, It is
conventional that the Ethylbenzene Plant will be environmentally viable and the
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construction should undergo all the legal requirements under the supervision of
the local government and with all the agencies concern. The quality of work and
the production of the company will also be observed and maximized the efficiency
of every process needs to be done.
CHAPTER VI
PROJECT DESIGN TRADE-OFFS
I. Multiple Realistic Constraints
Design Option 1
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Process Description
will include an inert ethane as an impurity. Another stream will contain ethylene.
Ethylene from the feed tanks will travel and pass through a compressor. Which is
supplied with sufficient amount of electricity, to increase pressure and convert it
from gaseous phase to a liquid phase, while benzene will pass through a pump,
also, to increase its pressure. The mixture of benzene and recycle benzene will be
passing through a heater to control its temperature before being fed to the
alkylation reactor.
The resulting stream form the alkylation reactor mixed with the resulting
stream from the transalkylation reactor will pass through a cooler and enters a
flash drum. The mixture will then go to the ethane separator where ethane will go
out from the top part while the other components will continue to the first distillation
column. Ethane is separated because if ethane makes it through to the distillation
column mistakenly, it would significantly enhance the duty of the reboiler. The first
distillation column will have a distillate of a mixture of ethylbenzene and
diethylbenzene, while benzene will emerge at the top. The liquid stream which
came out from the first distillation column will now make its way to the second
distillation column which then separates the two components, while the benzene
from the distillate will serve as one of the feed in the transalkylation reactor. It will
be joined by diethylbenzene which is the distillate of the second distillation column.
Both will go through the transalkylation reactor where both reacts and form
ethylbenzene which will be recycled as inlet to the flash drum, to mix with the
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output stream of the alkylation reactor. Ethylbenzene comes out of the top of the
second distillation column.
Design Option 2
Process Description
It will be almost like the first design option. The only difference is that in
there will be only one distillation column where three products are made. There will
be two streams of feed. One stream will contain ethylene which will include an inert
ethane as an impurity. Another stream will contain ethylene. Ethylene from the
feed tanks will travel and pass through a compressor. Which is supplied with
sufficient amount of electricity, to increase pressure and convert it from gaseous
phase to a liquid phase, while benzene will pass through a pump, also, to increase
its pressure. The mixture of benzene and recycle benzene will be passing through
a heater to control its temperature before being fed to the alkylation reactor.
column mistakenly, it would significantly enhance the duty of the reboiler. The only
distillation column will separate the three components of the inlet mixture
separately. The top part will produce benzene, the middle will produce
ethylbenzene, while the bottom will produce diethylbenzene. The top and bottom
products will be mixed and be fed to the transalkylation reactor where both reacts
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and form ethylbenzene which will be recycled as inlet to the flash drum, to mix
with the output stream of the alkylation reactor.
Design Option 3
Process Description
The difference of this process is that it includes a thermal cracking process
for the ethane from the separator, for it to evolve into ethylene and be an additional
feed. Aside from that, the process is pretty much similar to the first design option.
will include an inert ethane as an impurity. Another stream will contain ethylene.
Ethylene from the feed tanks will travel and pass through a compressor. Which is
supplied with sufficient amount of electricity, to increase pressure and convert it
from gaseous phase to a liquid phase, while benzene will pass through a pump,
also, to increase its pressure. The mixture of benzene and recycle benzene will be
passing through a heater to control its temperature before being fed to the
alkylation reactor.
column mistakenly, it would significantly enhance the duty of the reboiler. Then,
the separated ethane will go through a furnace to pre-heat before entering the
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fractionating column where it will be thermally cracked to form ethylene and serve
as a recycle to the feed.
The first distillation column will have a distillate of a mixture of ethylbenzene
and diethylbenzene, while benzene will emerge at the top. The liquid stream which
came out from the first distillation column will now make its way to the second
distillation column which then separates the two components, while the benzene
from the distillate will serve as one of the feed in the transalkylation reactor. It will
be joined by diethylbenzene which is the distillate of the second distillation column.
Both will go through the transalkylation reactor where both reacts and form
ethylbenzene which will be recycled as inlet to the flash drum, to mix with the
output stream of the alkylation reactor. Ethylbenzene comes out of the top of the
second distillation column.
Table 6.1 Multiple Realistic Constraints
Multiple
Realistic Design Option 1 Design Option 2 Design Option 3
Constraints
Technical 54.05 55.03 53.43
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Economical ₱166,259,361.70 ₱97,068,146.70 ₱25,771,151.09
Environmental high medium low
Scaling:
Technical Aspect:
5.503– The highest plant overall efficiency
5.405 – The good plant overall efficiency
5.343 – The lowest plant overall efficiency
Economic Aspect:
1.79 – The Best Net Present Value
1.05 - The Good Net Present Value
0.28 – The Poor Net Present Value
Environmental Aspect:
7 – Low Impact
7.5 – Medium Impact
10 – Highest Impact
Table 6.2 Normalizing of the Values
Multiple
Design Design Design Degree of
Realistic
Option 1 Option 2 Option 3 Importance
Constrain
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Plant Overall
5.403 5.503 5.434 1
Efficiency
Net Present
1.79 1.05 0.28 4
Value
Environmental
7 10 7.5 5
Impact
Pareto Optimum
𝐷𝑂1 = (5.403𝑥1) + (1.79𝑥4) + (7𝑥5) = 47.563
𝐷𝑂2 = (5.503𝑥1) + (1.05𝑥4) + (10𝑥5) = 59.703
𝐷𝑂3 = (5.434𝑥1) + (0.28𝑥4) + (7.5𝑥5) = 44.054
The best design option is the design option 1 having 62.563 and it is to be
used for the project implementation since it is the design which has best efficiency,
net present value and medium impact to the environment.
CHAPTER VII
PROJECT CONSTRUCTION EXECUTION PLAN
This chapter contains the construction strategy of Ethylbenzene Plant,
project scheduling as well as the quality assurance and risk assessment
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Construction Strategy
Building the best construction strategy provides the company to do better
job by having the right way in planning, scheduling, undertaking the control of the
project from the beginning to its completion. An effective construction strategy
supports the company to have better decisions, better solution, bigger capacity,
competitiveness, customer satisfaction that often leads to market satisfaction.
The design will undergo a progression from the proposed design through
the development phases. The concerns about the conceptual design and
engineering design should be set out and safe guarded during the installation of
equipment to be used. Furthermore, the execution of any activities or plans should
be aligned and transparent with the environment and technical issues. Laws and
codes shall be observed.
Site specific conditions should be given of importance because it covers
wide range for the safety and welfare of the people in the plant. The detailed
design of the plant is presented agreeing to its specifications and conditions must
be meet properly, Hazards should not occur and must be avoided at all times.
Working as a team is important to execute the construction strategies and
management properly. Personnel, Employees, including the Owner, Investors,
Construction Manager, Engineers, and Architects will be involved and their efforts
will be combined. The owner, engineers, architect, and construction manager
establish a team who will work in a well-balanced manner from the start of the
project through its completion with an objective to forecast important plans and
schedules, build stability and the cost consequences of the designed plant.
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However, the construction manager is responsible for the estimation and in
establishing the cost, the construction method, and to supervise the actual work
construction to provide public safety, convenience, and for a safe working place of
the site and security personnel. In terms of space planning, concepts, and design
excellence, engineers and architects take charge.
To strengthen the company and the public safety of the plant site,
discussions should be done to review the impacts and effects of any proposed
works. The site should have barrirers and signages. The construction site will be
accessible to any kind of transportation. It is adjacent to the main road and nearby
the sea. The site is also secured with surveillance cameras to ensure safety and
security. To prevent animals from staying on the site, the working area will be
fenced. The company will find ways to ensure the management and to provide
proper storage, handling, and disposal of hazardous materials. Facilities like water
supply, power supply and waste disposal will be handled. The storage area for the
raw materials and products will be instructed and fence within the area is a must.
Equipment
The equipment that will be used in the plant will undergo proper inspection
to be done by engineers and under the supervision of the respective managers.
Proper connection and specification should be met before and after the installation
to ensure the continuity and stability of the process. Pipes should be checked to
avoid leaks and to eliminate any risk during the operation.
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Safety
Personal Protective Equipment should be provided for the workers and
should be noticeable. First aid kit and self breathing apparatus is provided and
always available. Proper signs and symbols of hazardous materials must be
observed and posted to avoid accidents. In case of fire accident fire extinguisher,
smoke detector, and water sprinkler must be accessible. Effective trainings and
seminars should be done regularly to enhance and inculcate more the knowledge
of the workers about their working place.
Market Timeliness
Time is an important factor in the business. Any contract should be made
and accomplished in the given span of time. All portions of the project must be
completed and ready for full use in the time stated and every conditions should be
adjacent with the contractor.
Value of Money
The time value of money is a major financial consideration for companies.
It is important to compare the value of money in hand or the capital cost versus the
relative value of money received or pay out in the future. Inflation, risk factors,
potential investment returns and loan interest impact business decisions. There
are some important factors that need to consider in having a production plant such
as:
Plant Cost
 Labor costs
 Raw material costs
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 Environmental costs
 Shipping costs
 Fuel costs
 Site impacts on performance
 Connection costs
 Site Preparation costs
Relation to Human Resouces
The Human Rsource Management plays a strategic role in managing
people and the workplace environment. It deals with different issues related to
performance management, compensation, safety, wellness, trainings and
seminars of the employees. An effective strategy can contribute greatly to the
overall performance of the company and the accomplishment of its goals and
objectives. Implementation of policies and practices are designed to avoid work
stoppages, slow production, and strike. For the contractots, the owner of the plant
enforced the contractor to remove any person employed on the site or work as well
as the contractor’s representative as long as the opinion of the owner is reasonable
and proven true like misconduct, negligible, and ineffective performance of his
duties. However, the management of the company is responsible to provide all
employees and workers benefits and safety insurance under the provision of
Occupational Health and Safety Regulations. This will undergo a legal agreement
to ensure the welfare of the workers, and to create transparency between the
company and its people. Based from the plant capacity, the company will employ
up to employees, a break down is summarized below:
113
WORK SCHEDULING AND OVERALL MANAGEMENT COMMISSIONING GANTT CHART
Table 7.1
Project Schedule
YEAR
2019 2020 2021
Working Activities J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J
A E A P A U U U E C O E A E A P A U U U E C O E A E A P A U U
N B R R Y N L G P T V C N B R R Y N L G P T V C N B R R Y N L
Conceptualization
phase
Feasibility Study
Phase
Basis Design
Phase
Basic Design
Phase
(FEL 3)
Detailed Design
Phase
114
Table 7.1
Project Schedule
YEAR
Working 2022 2023 2024
Activities J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D
A E A P A U U U E C O E A E A P A U U U E C O E A E A P A U U U E C O E
N B R R Y N L G P T V C N B R R Y N L G P T V C N B R R Y N L G P T V C
Procurement
and
Construction
Phase
Commissioning
and Start-up
Phase
Operation
Phase
Table 7.1
115
Project Schedule
YEAR
2025 2025 - 2047
Working
J F M A M J J A S O N D J F M A M J J A S O N D
Activities
A E A P A U U U E C O E A E A P A U U U E C O E
N B R R Y N L G P T V C N B R R Y N L G P T V C
Commissioning
and Start-up
Phase
Operation
Phase
116
C. Quality Assurance and Control
It is the contractor’s quality policy to provide equipment, materials and
services that meet the target contractual requirements and specifications in
relation to the assurance of safety, performance, and reliable operations of a plant.
Quality assurance is systematically executed according to the following
procedures: Quality Assurance System in compliance with ISO 9001 and Project
Quality Plan.
All engineering, procurement and construction services have to be
executed in accordance with quality manual and supporting procedure to quality
manual.
Quality Manual includes the following contents:
 Management responsibility
 Requirements for documentation
 Resource management
 Measurement, analysis and improvement
Project quality assurance program activities include:
 Preparing and planning of project quality
 Selection for contractor and supplier
 Monitoring of program
 General and technical testing and inspection for the materials,
equipment, and safety of the workers
Consultation to different kinds of specialists is in need for the aspects such
as electrical features of a production plant, material testing and other
117
equipment. It will be useful for a rapid resolution for any problems that may be
experienced during the operation with regards to the equipment.
The ethyl benzene production plant aims to give the consumer the highest
quality of the product that will meet the consumers’ standards and specifications
with proper monitoring and improvement of technology. The product will be sold at
a reasonable cost for maximum range of customers.
The consumers (also the residents that live near the plant), are assured that
no environmental problems will be caused during the ethyl benzene production
plant operation by following the Philippine Environmental Impact Statement
System Law (PD1686), Clean Air Act (Ra 8749), Clean Water Act (RA 9275),
Ecological Solid Waste Management Act (RA 9003) and Toxic, Hazardous and
Nuclear Waste Act (RA 6969).
118
CHAPTER VIII
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION
This chapter presents the summary of findings, conclusions and
recommendation for the development of Ethylbenzene Production Plant.
Summary of Findings
The following results related to Ethylbenzene production plant were
summarized as follows:
1. The proposed ethylbenzene production plant will be located at Brgy. Alis
Asin, Mariveles, Bataan. The plant is expected to supply 63,198 million MT
per year.
2. After evaluating the three design options concerning technicalities, the
design option, the option with the thermal cracking process gave the lowest
percent resulting 44.05%, while the first design yields 47.563%, and lastly,
the second option giving 59.703%.
3. The environmental impact assessment is accomplished by rating the waste
generated by each design. Design option 2 has the lowest environmental
impact while design option 3 has average environmental impact and lastly,
design option 1 has high environmental impact after evaluating each design.
Conclusions
119
The following conclusions are based from the summary of findings
mentioned above.
1. The basis for the development process and execution is the demand
requirement, demand projection, target customers, and target location.
2. The technical aspects including mass balance and energy balance,
equipment cost and specifications are needed to evaluate the plant overall
efficiency. These aspects will serve as a basis in slecting and utilizing the
best design option.
3. To determine the economic potential of the proposed production plant, the
Economic analysis which includes the computation of investment capital,
operating expenditures, payback period and return rate is necessary.
4. The waste generated generated during the construction and operation of
the plant and the mitigation measures will be evaluated with respect to
environmental impact assessment plan with an objective to minimize the
impact of the waste generated by the proposed production plant.
5. Each designs are evaluated in the pareto-optimum according to their
respective multiple constraints in order to determine the best option. Out of
the three, the second option gave the highest percentage, making it the best
design to move forward with.
6. Other factors that contribute on why the proponents chose the second
design option are as follows:
a. It has the a high net present value which states that the cash inflow are
way higher than the cash outflows, which makes it more profitable.
120
b. It only takes 7 years to gain the cash invested in the proposed
ethylbenzene production plant.
c. The only waste it emits are the cooling water and heating steam needed
in every heat exchanger, and few amounts of catalysts.
d. To produce the same amount of ethylbenzene the first and third one
produces, the second design option only needs fewer raw materials.
e. The product efficiency of the second design option which is based from
the mass balance and energy balance are higher than the other two
design options.
Recommendations
Based on the prior findings and conclusions presented, the following
recommendations are suggested:
1. The production plant always observe consistency when it comes to the
feeds and also the inspections of various process equipment to avoid
mishaps in the production and accident and damage to the plant itself.
2. Health and safety should always be the top priority in considering every
actions to be taken during the production.
3. The proposed schedule of activities in a form of a Gantt chart should be
observed and activities in the plant must be done within the given span of
time.
121
APPENDICES
APPENDIX A: LAND AND BUILDING COST
122
A-1. LAND COST IN BATAAN
https://www.olx.ph/item/lot-for-sale-inbatangas-price-3k-per-sqm-available-
434sqm-and-31k-sqm-ID8gbhx.html
A-2. CONSTRUCTION COST http://www.buildersphilippines.com/how-much-
does-ahouse-construction-cost-in-the-philippines.html
APPENDIX B: VEHICLE COST
123
B-1. FIRE TRUCK https://www.olx.ph/item/mitsubishi-canter-fire-truck-with-
tanker-4x4truck-for-sale-ID8mMVq.html?h=8abf322e0c
B-2. FORKLIFT https://www.olx.ph/item/electric-and-diesel-
forkliftID88qla.html?h=09ef9ffff2
124
B-3. TRUCK https://www.olx.ph/item/isuzu-forward-aluminum-wing-van-24-feet-
truckfor-sale-ID8nrLg.html?h=dc83ab2bf8
125
APPENDIX C: EQUIPMENT/PROCESS UNIT COST
C-1. STORAGE TANK http://www.turnkeyprojectindia.com/storage-tanks-
tankfarm.html
C-2. WATER TANK https://www.olx.ph/item/bestank-water-tank-stainless-steel-
304ID7Mb2q.html?h=41cedb536f (60,000 L)
126
C-3. POLYMERIZATION REACTOR
https://www.alibaba.com/productdetail/polymerizationreactor_60573938371.html
?spm=a2700.7735675.2017115.10.cFWqQy&s=p
C-5. PUMP
https://www.alibaba.com/product-detail/Wenzhou-Industrial-StainlessSteel-Latex-
127
C-6. DISTILLATION COLUMN
https://www.alibaba.com/productdetail/Reasonable-price-vacuum-distillation-
equipmentcolumn_60679264356.html?spm=a2700.7724838.2017115.10.60ee14
16Wv12o4&s=p
128
APPENDIX D: RAW MATERIALS/CHEMICALS
D-1. BENZENE & ETHYLENE
https://www.scribd.com/doc/258083088/Ethyl-Benzene-Plant-Design
APPENDIX E: SALARY/LABOUR COST
E-1. VICE PRESIDENT
https://www.payscale.com/research/PH/Job=Vice_President_(VP)%2C_Operatio
ns/Sal ary
129
E-2. MANAGERIAL
https://www.payscale.com/research/PH/Job=Operations_Manager/Salary
E-3. PLANT ENGINEER
https://www.payscale.com/research/PH/Job=Plant_Engineer/Salary
130
E-4. SUPERVISOR
https://www.payscale.com/research/PH/Job=Maintenance_Supervisor/Salary
E-5. TECHNICIAN
https://www.payscale.com/research/PH/Job=Maintenance_Technician/Salary
131
E-6. LABORATORY MANAGER
https://www.payscale.com/research/PH/Job=Laboratory_Manager/Salary
E-7. LABORATORY TECHNICIAN
https://www.payscale.com/research/PH/Job=Chemical_Laboratory_Technician/S
alary
132
E-8. PRODUCTION SUPERVISOR
https://www.payscale.com/research/PH/Job=Production_Supervisor/Salary
E-9. OPERATOR
https://www.payscale.com/research/PH/Job=Production_Operator/Salary
133
E-10. FIELD ENGINEER
https://www.payscale.com/research/PH/Job=Field_Engineer/Salary
E-11. QUALITY ASSURANCE/CONTROL ENGINEER
https://www.payscale.com/research/PH/Job=Quality_Assurance_(QA)_%2F_Qua
lity_C ontrol_(QC)_Engineer/Salary
134
E-12. SAFETY ENGINEER
https://www.payscale.com/research/PH/Job=Safety_Engineer/Salary
E-13. MARKETING MANAGER
https://www.payscale.com/research/PH/Job=Marketing_Manager/Salary
135
E-14. MARKET RESEARCHER
https://www.payscale.com/research/PH/Job=Market_Research_Analyst/Salary
E-15. PUBLIC RELATIONS OFFICER
https://www.payscale.com/research/PH/Job=Public_Relations_(PR)_Officer/Sala
ry
136
E-16. MANAGEMENT ACCOUNTANT
https://www.payscale.com/research/PH/Job=Management_Accountant/Salary
E-17. ACCOUNTANT
https://www.payscale.com/research/PH/Job=Accountant/Salary
137
E-18. INTERNAL AUDITOR
https://www.payscale.com/research/PH/Job=Internal_Auditor/Salary
E-19. CREDIT CONTROLLER
https://www.payscale.com/research/PH/Job=Credit_Controller/Salary
138
E-20. ACCOUNTING CLERK
https://www.payscale.com/research/PH/Job=Accounting_Clerk/Salary
E-21. HUMAN RESOURCE OFFICER
https://www.payscale.com/research/PH/Job=Human_Resources_(HR)_Officer/S
alary
139
E-22. STAFF ACCOUNTANT
https://www.payscale.com/research/PH/Job=Staff_Accountant/Salary
E-23. SECRETARY
https://www.payscale.com/research/PH/Job=Secretary/Salary
140
E-24. TRAINING COORDINATOR
https://www.payscale.com/research/PH/Job=Training_Coordinator/Salary
E-25. TRUCK DRIVER
https://www.payscale.com/research/PH/Job=Truck_Driver%2C_Heavy_%2F_Tra
ctorTrailer/Salary
141
E-26. JANITOR
https://www.payscale.com/research/PH/Job=Janitor/Salary
E-27. SECURITY GUARD
https://www.payscale.com/research/PH/Job=Security_Guard/Salary
142
E-28. UTILITY WORKER
https://www.indeed.com.ph/salaries/Utility-Worker-Salaries
E-29. NURSE
https://www.payscale.com/research/PH/Job=Registered_Nurse_(RN)/Salary
143
E-30. FIRE FIGHTER
https://www.payscale.com/research/PH/Job=Fire_Fighter/Salary
144
BIBLIOGRAPHY
www.wermac.org
https://www.alibaba.com/
http://www.turnkeyprojectindia.com/storage-tanks-tankfarm.html
https://www.olx.ph/item/bestank-water-tank-stainless-steel-
304ID7Mb2q.html?h=41cedb536f
http://www.airproducts.com/Products/Gases/gas-facts/physical-
properties/physical-properties-ethylene.aspx
https://pubchem.ncbi.nlm.nih.gov/compound/Ethene
https://byjus.com/chemistry/benzene-physical-chemical-properties/
https://www.tutorvista.com/chemistry/physical-properties-of-benzene
https://pubchem.ncbi.nlm.nih.gov/compound/ethylbenzene
https://www.donau-carbon-us.com/Downloads/Waste-Water-E.aspx
https://www.atsdr.cdc.gov/toxprofiles/tp110-c4.pdf
https://www.researchgate.net/publication/309621638_Design_and_Analysis_of_a
n_Ethyl_Benzene_Production_Process_using_Conventional_Distillation_Column
s_and_Dividing-Wall_Column_for_Multiple_Objectives
https://slideplayer.com/slide/9032752/
https://www.dotproperty.com.ph/land-for-sale/bataan/mariveles#_=_
https://www.payscale.com/research/PH/Job=Janitor/Salary
145
https://www.scribd.com/doc/258083088/Ethyl-Benzene-Plant-Design
http://accu-tab.com/Applications/Municipal-Potable-Water-
Wastewater?gclid=CjwKCAjwqqrmBRAAEiwAdpDXtCGm_4avQHOsa9Xg5HCiw
p5ynf3MosbvAwvUN5Mz4R2StVvBTGOXphoCGMUQAvD_BwE
https://wiki.openstreetmap.org/wiki/Philippines/Mapping_Fire_Hazard_Zones
https://wiki.openstreetmap.org/wiki/Philippines/Mapping_Fire_Hazard_Zones
https://powerlifttraining.com/programs/?gclid=CjwKCAjwqqrmBRAAEiwAdpDXtNl
c22ICBg4ixgoFR-lZcXPEUoHaRXA-LEosCgOAJjsJ-
ULBuMnXjBoCU50QAvD_BwE
https://www.industrysafe.com/blog/safety-management/top-5-safety-hazards-in-
the-manufacturing-industry
https://www.chemicalsafetyfacts.org/chemistry-context/understanding-
risk/?gclid=CjwKCAjwqqrmBRAAEiwAdpDXtHVTDU8LgOHr7DDpVICGUj0Jm3b
sSXmr936draUio6tngAryXFffwBoCir8QAvD_BwE
https://www.cdc.gov/niosh/npg/npgd0264.html
146

Chapter I - Introduction to the Proposed Ethylbenzene Production Plant

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Chapter I - Introduction to the Proposed Ethylbenzene Production Plant

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INTRODUCTION AND ITS BACKGROUND

The petrochemical process industry is mainly involved in manufacturing of

a lot of obstacles while deciding, designing, and scheming a process especially

the operating pressure and temperatures are in a high range.

Ethylbenzene is an organic chemical compound which is an an example of

aromatics or compounds with benzene rings. It is used primarily in the

petrochemical industry as an intermediate for styrene production, which is then

turned into plastic materials, which is getting high in demand nowadays.

Usually, to produce ethylbenzene in bulk quantities, the petrochemicals benzene

and ethylene is combined in an acid-catalyzed reaction. The catalyst involved is

usually FeBr3 or AlCl3. Catalytic hydrogenation of ethylbenzene will produce

hydrogen gas and styrene. Ethylbenzene can also be used as an additional

ingredient in manufacturing paints and waxes.

Nowadays, the demand for plastic is getting higher and higher.

Ethylbenzene to be converted to styrene is imported from countries like Taiwan

ethylbenzene. Thus, the proponents have thought of designing a ethylbenzene

is from Petron Corporation in Limay, Bataan. Also, it is accessible since it is located

exact location of the proposed plant.

Fig 1.1 Proposed Location of Ethylbenzene Plant

factors discussed in the next sections:

1. Raw Material Availability

Petron Corporation is the largest oil refining and marketing company

in the Philippines and is a leading player in the Malaysian market. The

reformer uses a catalyst to increase the octane number of naphtha while

producing LPG, gasoline, and reformate. Meanwhile, reformate is

further converted to become petrochemical feedstocks benzene,

toluene, and mixed xylene. To be specific, Petron Corporation in Bataan

produces over 50000 MT of benzene annually which will be sufficient for

the feedstock needed for the production of ethylbenzene.

streams, a nearby water source is needed. Output of the alkylator

will go through a compressor to increase stream pressure to column

Brgy. Alas Asin is a strategic place since it is located near the

transportation of the required feed benzene easier and safer.

and reformate. Meanwhile, reformate is further converted to become

petrochemical feedstocks benzene, toluene, and mixed xylene. To be specific,

Petron Corporation in Bataan produces over 50000 MT of benzene annually which

Table 1.1 Properties of Ethylene

Molecular Weight 28.05 lb/mol

Critical Temperature 49.1F

Boiling Point -154.8F

Melting Point -272.5

Gas Density 0.0730 lb/ft3

Specific Gravity 0.992

Table 1.2 Properties of Benzene

Molar Mass 78.1118

Critical Temperature 562.02 K

Critical Pressure 4.894mpa

Critical Density 3.902

Triple Point Temperature 278.67 K

Reference Temperature 353.21635

Reference Pressure 0.101325 Mpa K

Ethylbenzene is an organic compound with the formula C6H5CH2CH3. It is a

monocyclic aromatic hydrocarbon is important in the petrochemical industry as an

intermediate in the production of styrene, the precursor to polystyrene, a

consumed in the production of styrene.

smaller amounts of ethylbenzene are used in solvents or as additives to a variety

of products. Some products that contain ethylbenzene include synthetic rubber,

products, and insecticides. Ethylbenzene finds wide application as solvent and

lacquers, adhesives, rust prevention spray, pharmaceuticals, cleaning materials,

dyes, inks, perfumes, synthetic rubber, plastics, and pesticides.

Table 1.3 Properties of Ethylbenzene

Melting Point -95 C