1

CHAPTER I

PROCESS BACKGROUND AND SELECTION

1.0 Introduction

Propanol is a clear, colorless liquid with alcohol odor, it is also miscible in

water, and organic solvent such as ethyl ether and alcohols. It can forms azeotrope

with water appearance. It is consist of three carbons, eight hydrogens and one

oxygen with the molecular formula of C​3​H​7​OH. In addition, it is a primary alcohol that‘s
​
also known as 1-propanol, 1-propyl alcohol, n-propyl alcohol, n-propanol, or

simply propanol. It has an isomer called 2-propanol which also known as

isopropanol (IPA). n-propanol is not considered a hazardous air pollutant (HAP)

solvent by the U.S. Environmental Protection Agency.

Source: http://www.inchem.org/

n-propanol can occurs in nature in fuel oils and forms from fermentation and

spoilage of vegetable matter. For commercial production of n-propanol, it‘s involved

two steps of complicated process called oxo-process which consists of ethylene

hydroformylation using carbon monoxide and hydrogen at 80-120°C and 2.0 MPa in
the presence of cobalt or rhodium carbonyl followed by hydrogenation on copper-

chromium or nickel-chromium catalyst. Other than that, certain industry practice

other process such as conversion of glycerol, sasol fischer-tropsch process,

homologisation and also fermentation to produce n-propanol.

2
3

Table 1.1: ​Physical Properties of n-propanol

Property Description

Molecular Formula C​3​H​8​O

60.1 g/mol
Molar Mass ​

Propan-1-ol
IUPAC Name ​

1-propanol
Other Name ​

propyl alcohol

n-propanol

n-propyl alcohol

propanol

Form Liquid

Colour Colourless

Adour Alcoholic

pH 7

Melting Point Temperature -126.2​o​C

 Boiling Point Temperature ​97.2 °C

Flash point 15 °C; closed cup

23 °C; open cup

Vapour Pressure ​27.998 kPa; 25 °C

Density ​805 kg/m​3

Water Solubility ​completely miscible

Viscosity 2.170 MPa.s

Source: http://www.inchem.org/
4

1.1 Uses And Application

n-propanol is not sold for direct consumer use. The major use of n-propanol is

as a solvent which used as carrier and extraction solvent for natural products, such

as flavourings, vegetable oils, resins, waxes, and gums, and as a solvent for

synthetic polymers, such as polyvinyl butyral, cellulose esters, lacquers, and PVC

adhesives. Other solvent applications include the use of n-propanol in the

polymerization and spinning of acrylonitrile, in flexographic printing inks, and in the

dyeing of wool. n-propanol is used for both its solvent and antiseptic properties in

drugs and cosmetics, such as lotions, soaps, and nail polishes. It is a chemical

building block for the manufacture of chemical intermediate of esters, amines, and

halides such as in the manufacture of propanal, 1-bromopropane, ​O,O-​

dipropylphosphoro-dithioic acid, ​n-​ propyl amines, esters (propyl acetate, propyl

carbamate), alcoholates, and xanthates.

 Other than that, n-propanol is used in a broad range of applications, including

coatings, dispersing agents, pesticide formulations, metal degreasing fluids,

adhesives polishing compounds (window cleaners, floor polishes), and brake fluid,

as coupling and as a ruminant feed supplement. Because of its relative inertness

and low odor, this material is also used for packaging and food-contact applications.

In the current usage of engines, the characteristic of n-propanol from the aliphatic

alcohols group has the potential to use as a liquid fuel due to its characteristics

which improves the water tolerance of motor fuels. Pie chart in Figure 1 shows the

general uses of n-propanol as a solvent in United State.

Figure 1.1 ​U.S Uses for n-propanol

Source: http://www.inchem.org/
5% 5% Direct Solvent
15%​
Direct Solvent
41%

34% n-Propyl-amines
n-Propyl acetate
Other
5
1.2 Reaction Mechanism

There are two steps involves on the production. The first step is hydroformylation

reaction and the process is then proceeding with the second step which is

hydrogenation process after the complete reaction in the previous step.

1.2.1 Hydroformylation Reaction :

This reaction is a reaction mixtures that produce substantial amounts of aldehydes

and alcohols due to rection between olefins with syngas which were carbon

monoxide and hydrogen at elevated temperature and pressure in the presence of

catalyst. In order to produce n-propanol, the type of olefin will be ethylene. It will

react with carbon monoxide and hydrogen gas at specific order to produce

propionaldehyde at certain temperature and pressure.

General reaction :

CHO CHCH HCOHC ​presuure catalyst ​2 3 ,, 2 42 -----

​ → - + + ​∆ ​1.1

Ethylene Carbon Hydrogen Propionaldehyde

monoxide

1.2.2 Hydrogenation Reaction :

A process where aldehyde is converted into alcohol in the addition of hydrogen gas

with the presence of certain catalyst as an additive to the reaction. The reaction took

part in the desired temperature and pressure condition. The propionaldehyde

produced from hydroformylation will be then undergo second reaction with hydrogen

to produce n-propanol.

General Reaction:
 ​
HOCHCHCH H CHO CHCH presuure ​ 2 3 ,, 2 2 3 -----
catalyst 2 ​ → - + ​∆ ​1.2

Propionaldehyde Hydrogen n-propanol

6
Mechanics of ethylene hydroformylation and hydrogenation can be shown as below:
CH ​2 =
​ ​CH ​2 ←
​ -→ ​H ​HC ​52 -​
HC ​
← --→ ​CO ​COHC ​52 ​ 62​
-​
← -→ H​ CHOHC
​ ​ ←
52 ​ --→ ​2 ​H OHCHHC
​ ​52 2 ​1.2.3

. ​Source from :Journal of Molecular Catalysis A: Chemical 138 _1999. 155–176

1.3 Side Reaction and By-product
1.3.1 Hydroformylation Reaction.
Minor by-products from this process include propionaldehyde, ethane, and some
heavy ends. The composition of these by-products produced will be depending on
the condition of the process itself and the catalyst used.
1.3.2 Hydrogenation Reaction
The main product in this reaction will be n-propanol. However, certain impurities
tend to be formed from the adol condensation of the propanal such as n-propyl
propionate, dipropylether (DPE) and also 2-methylpentenal. The synthesis of C​6 aldehydes
​ from
propanal via aldol condensation reaction occur in ionic liquid media
with NaOH as a catalyst. NaOH is used as the activated agent in preparing the
dicobalt octacarbonyl catalyst. The production and composition of these by-products
also depend on the catalyst used. Different chose of catalyst resulting in different
composition of by-product produced.
Journal of Molecular Catalysis A: Chemical 278 (2007) 135–144
0 ​H

ethane adol
​
​ condensation d​ ipropylether
HC 146​
ethylene alkyl intermediates propanoyl propionaldehyde n-propanol
​
H2

OCHHC ​propoxide
52 2 ​←
​ n-propanol
-→ ​H ​OHCHHC 52 ​ ​2
7

1.4 Process Background

1.4.1 Method Selection

 There are three processes that have commercially being used in the industrial in

order to produce n-propanol. They were the oxo process, glycerol conversion and

also homologisation process. Each of this process has their own benefits due to raw

material, catalyst and equipments used. Below are the general descriptions for all

the processes.
8
Table 1.2 : ​Process Descriptions of Methods in Producing n-propanol​.
Characteristic Oxo Process Conversion of Glycerol Homologisation
Process Condition
i)Gas dehydration (endothermic)
i)Hydroformylation (exothermic)
Temperature = 200-400 o​​ C
Temperature = 90-130 o​​ C
Pressure = 0.1-3 Mpa
Pressure = 2-5 Mpa
ii)Hydrogenation of acrolein
ii)Hydrogenation (exothermic)
(exothermic)
Temperature = 120 -180 o​​ C
iii)Hydrogenation of aldehyde
Pressure = 3-5 Mpa
(exothermic)
Temperature = 200-250 o​​ C
Pressure = 5-20 Mpa
Temperature = 150-250 o​​ C
Pressure = 20-60 Mpa
Ethylene, Hydrogen, Carbon
Raw Material ​
Glycerol, Hydrogen Methanol, Hydrogen, Carbon
Monoxide ​
Monoxide
Catalyst
Group 8-10 (VIII) metal catalyst in
the liquid phase and also Group 9
like cobalt carbonyl(Co), rhodium
triphenylphosphine (Rh) and Raney
nickel(Ni).
Cobalt catalyst together with organic
and inorganic iodine compouns, and
ammonium or phosphonium
compund, as well as a rhuthenium
compound as promoters.
Conversion ​50%-70% 45%-65%
Ethane gas and heavy carbon
By Product ​
compound from adol condensation
Pt, Ru, Pd and Ni catalysts with
the support of ion-exchange
resin.
Ethylene-glycol, Ethanol,
Methane, Acetol, 1,2-
Methane, ethane and propane,
various ethers as well as methyl
9

decreasing in carbon monoxide

partial pressure.
Large amount of water increase
of the propanal such as n-propyl

propionate, dipropylether (DPE) and

also 2-methylpentenal
Con‘t propanediol, 2-propanol acetate,
ethyl acetate, propyl

acetate, acetaldehyde-dimethyl-

acetal, acetaldehyde-methyl-
Disadvantages
ethylacetal and acetaldehyde-diethyl- • Low price of raw material
acetal • Low price of raw material

at the lowest purity which is

Advantages
with increasing of hydrogen and at 40 wt% - 60 wt%.
conversion of product.
conversion of product.
• The use of glycerol solution
• The use of glycerol solution
• The use of glycerol solution
Rate of hydroformylation is increase effect product yield.

• Formation of water could

appear with a selectivity
appear with a selectivity
value of around 10%.
value of around 10%.
by product in the large amount.
by product in the large amount.
• Expensive industrial process to
• Expensive industrial process to
• Expensive industrial process to
• Expensive industrial process to
• Expensive industrial process to
isolate hydrogenation,
isolate hydrogenation,
• Carbon monoxide could cause
poison for the second reaction
which is hydrogenation that can
produce azeotrope with n-
propanol which lead to complex
• High concentrations of
ethylene-glycol, the main
side reaction product,
• Formation of water could
produce azeotrope with n-
From all the processes that already compared in the table above, oxo process is
• Numerous different individual
• Numerous different individual
• Numerous different individual
• Numerous different individual
compound occur as undesired
compound occur as undesired
compound occur as undesired
compound occur as undesired
by product in the large amount.
by product in the large amount.
isolate hydrogenation,
isolate hydrogenation,
saponification and distillation from
saponification and distillation from
saponification and distillation from
saponification and distillation from
useful product fraction and by-
useful product fraction and by-
separation
propanol which lead to
complex separation
useful product fraction and by-
useful product fraction and by-
products
products
18
 chosen as a method in producing n-propanol because this process produced fewer

impurities with low industrial process cost.

1.4.2 Catalyst Selection

In order to fasten the reaction, a number of transition- metal carbonyls like cobalt

carbonyl, Raney nickel, rhodium triphenylphosphine, rutherium, and iron is used to

catalyze the oxo reaction. The most commercialized catalysts in the industries

nowadays are cobalt carbonyl and rhodium triphenylphosphine due to their

advantages compared to other catalysts. Catalyst selection also is based on the

types of reactor use in the process because reactor and catalysts using is

interrelated. Besides that, cost of catalyst is also considered in order to choose the

best catalyst for the oxo process. The advantages and disadvantages of each

catalyst and price ratio between them are shown below.

Table 1.3: ​Comparisons of Catalysts​.

Catalyst Advantages Disadvantages

Cobalt Carbonyl • Longest life time.

(Co) • Produce predominantly

onomic practical choice. linear alkanes.
ry cheap/inexpensive. • Reduce impurities.
• Highest yield • Energy required is low.
• Thermally unstable.
• Thermally unstable. • Most reactive in reaction

• Easily decompose to synthesis gas.

• Easily decompose to monoxide.

cobalt and carbon

 Raney Nickel (Ni) ​• Large amount of

impurities in no or

presence of water. (di-

n-propylether,DPE and

n-propyl
19
propionate,prpr).
• Makes separation and
purification of n-
propanol difficult
because of binary
azeotrope between
water and n-propanol.
• High energy
consumption.
• Need larger purification
column.
Rhodium
Triphenylphosphine
(Rh)
Con‘t
• Economic practical choice.
• High reaction rate.
• Greater stability.
• Low operation pressure.
• Lower by product
production.
• More active than cobalt.
• Result in less high boiling
point of by product.
• Very expensive
catalyst.
Table 1.4: ​Price Ratio Between the Catalysts.
Metal Price Ratio
Iron 1
Cobalt 230
Nickel 250
Rutherium 31 000
20

Rhodium 570 000

​ hodium-Catalyzed Hydroformylation.(2000)
Source from : R

Based on the tables above, cobalt carbonyl has been choosing to be use in the oxo

process. This is because the catalyst is commercialized enough in the chemical

industries and has it own benefits like low cost compared to others. Cobalt carbonyl

will be used in the first reactor at the hydroformylation process and also second

reactor at the hydrogenation process.

1.4.3 Equipment Selection

Besides catalyst selection, reactor selection also plays an important role in the oxo

process to increase the process efficiency. There are different types of reactor that

can be considered for oxo process such as fixed bed reactor, fluidized bed reactor,

slurry reactor, and batch reactor. Catalyst form also affects the selection of reactor.

For the fixed bed, the raw material or reactant of the process must be between liquid

and gas and the catalyst in the form of pellet. This kind of reactor also can react any

two gas phase. Meanwhile for the slurry bed, the reactant is between gas and gas.

Catalyst form is in liquid form. This shown that selection of reactor and catalyst is

very important consideration. Table below shows advantages and disadvantages of

each reactor.
 Table 1.5: ​Reactor Selection

Types of Reactor Advantages Disadvantages

reactor at high pressu

Fixed Bed Reactor ​• Simple analysis.
• Efficient-long residence
• High efficiency.
and achieve near com
• Low cost.
reaction.
• Low maintenance. is difficult and need
• Little loss or attrition. shutdown.
• High ratio of catalyst to • High pressure drop for
reactants. small beads or pellets.
• Little wear of catalyst and
• Poor heat transfer in
Fluid Bed And
fixed bed reactor. Con‘t
Con‘t
• Non uniform flow

pattern.

• Swelling of the catalyst

and deformation of eneration of the

• Complicated.
reactor.
• Complicated.
• Regeneration or Slurry Reactor
21

• Rapid mixing of solids in

• Extensive investment
• Extensive investment

and high maintenance.

equipment. means uniform gas

replacement of catalyst composition.
• Only practical and economical • Efficient temperature co
 • Small diameter particles in • Attrition and loss of

fluid minimize pore diffusional catalyst.

resistance.

• High heat transfer rates.

• Low residence time and

conversion maybe 1.5 Process Description

limited.

Worldwide production of n-propanol has been carried out in two complex reactions

which were hydroformylation of ethylene followed by hydrogenation of

propionaldehyde or propanol, the product of the first reaction

. ​By referring to the process PFD at the APPENDIX A, the main equipment processes

were elaborate.

H​2 ​CO
C​2​H​4

H​2 ​CO

Hydroformylation Of Ethylene (Slurry Bed Reactor) C​2​H​6

C​3​H​6​O
Figure 1.2 ​First reac

C​2​H​4

The oxo process or hydroformylation reaction is a reaction where the synthesis gas,

carbon monoxide and hydrogen react with ethylene to produce propionaldehyde.

Propionalehyde is an aldehyde group that also known as propanal. Besides that,

hydroformylation reaction also produced by product known as ethane. The formation

of propionaldehyde and ethane are shown in below equation.

 CH 2​ =
​ ​CH ​2 + ​ ​2 -​ ​catalyst -----
​ ​HCO + ​ ​,, ∆ ​presuure →
​ ​CHCH ​3 2 CHO
​

1.3
Ethylene Carbon Hydrogen Propionaldehyde
monoxide

HCHHC 4​ 2 ​+ ​2 ​→ ​62 ​Ethylene Hydrogen Ethane ​1.4

Hydroformylation, was carried out initially with a dicobalt octacarbonyl, CO​2​CO​8​,

catalyst at temperatures of about 90-130°C and 2-5 Mpa. A breakthrough was the

discovery that rhodium chloride with ligands such as triphenylphosphine allowed the
22
23

reaction to take place at temperatures of around 100°C and 1–2.5 Mpa. Chemo

selectivity to aldehydes is high for all Rh catalysts.

Slurry bed reactor is for a gas-liquid contacting accompanied by chemical reaction.

The most attractive technical process is with a slurry reactor due to its heat removal

capability, low investment, and high one-pass conversion. With the raw material of

ethylene, carbon monoxide and hydrogen in gas phase, the use of slurry bed in

contacting the liquid cobalt carbonyl is the ideal reactor where gas solubility is low

and a large liquid holdup is required.

The reacting feed gas (mixed with recycle) is introduced through sparger. It bubbles

through the column, keeping the catalyst in suspension, aerating the liquid and
supplying the agitation necessary for mass transfer as it reacts. Because of the

reaction is highly exothermic, cooling coils are provided in the reaction zone.

Condenser

The highly exothermic hydroformylation reaction (28-35 kcal/mol) requires sufficient

cooling area. The condenser also needed in order to condensate the vapor propanal

into liquid phase.

Stripper

CO

C​3​H​6​O

C​2​H​4 H​
​ 2

CO C​2​H​6
24
 Figure 1.3 ​Stripper

After condensation, the propanal is sent to a carbon monoxide-stripping column to

remove traces of carbon monoxide prior to hydrogenation. Carbon monoxide is then

recycle back to the reactor to reduce the feedstock. Carbon monoxide need to be

drawn out because it could cause poison for the second reaction.

HydrogenationOf Aldehyde (Fixed Bed Reactor)

C​2​H​6

C​3​H​6​O

H​2 ​CO Figure 1.4: ​Second re

C​2​H​4
 C​6​H​C​14​2​O
H​4H​
​ H​ O C​
​ 2​2 ​ 2​H​6 H​
​ 2

C​2​H​6

C​3​H​8​O H​
​ 2 ​CO C​2​H​4 C​
​ 3​H​6​O

25

Hydrogenation of the aldehyde to the alcohol takes place with a dicobalt

octacarbonyl at 0.2-0.3 Mpa at about 120 – 180°C and hydrogen pressure of about

3-5 Mpa, a catalyst loading of about 2 to about 20 wt% preferably about 8 to about

10 wt% based on the weight of the feed in the liquid feed. The equation is as follow
 CHCH 3​ 2 CHO
​ ​ H
+ ​ ​2 -​ catalyst
​ ​----- ​,, ∆ ​presuure →
​ ​HOCHCHCH 3​ 2 2 ​1.5

Propionaldehyde Hydrogen n-propanol

In addition the liquid feed should contain for example, either substantially no water,

or an amount of water, for example up to about 3 wt% preferably about 0.0 to about

1.0 wt% based on the weight of crude hydrogenation reaction product. Substantially

no water, means that no water is added to the hydrogenation reactor or in the

fractionating column and the only water present in the reactor and optionally in

column is that form during the hydrogenation itself and in the hydroformylation

reactions.

The reactor used in this reaction was fixed bed reactor. The liquid propanal is fed

from the top of the column counter current with the hydrogen gas from the bottom of

the reactor. With the pellet physical of the dicobalt octacarbonyl make the liquid and

gas interphase in the fixed bed. Undesirable certain impuritiy tend to be form in the

little or no water as a result of side reaction of the hydrogenation form adol

condensation which is dipropylether

Two Tower Purification System

C​3​H​8​O H​
​ 2

C​2​H​4
C​3​H​6​O
 C​6​H​14​O

H​2​O C​
​ 2​H​6
C​3​H​8​O H​
​ 2

C​2​H​4
C​6​H​14​O

C​2​H​6
26

C​3​H​6​O

H​2​O

Figure 1.5 :​First distillation column

The crude n-propanol (after hydrogenation) is purified in a standard two-tower

purification system. By using a dicobalt octacarbonyl in the hydrogenation process,

the components that have higher boiling point are drawn out at the bottom of the

distillation column. Hydrogen and ethane will be then separated by other compound

by using the gas separator into different storage tank. At certain time both gases will

be recycle back into stream process to avoid waste.

Recovery Column

C​3​H​8​O

C​6​H​14​O

C​2​H​6

C​6​H​14​O

C​2​H​6
27

Figure 1.6 : ​Second distillation column

Purification of the n-propanol from the hydrogenation zone is carried out by

fractional distillation is the presence of small quantity of water. No addition of water

into the system is needed because water presence will formed azeotrope with the

product. The amount of water that produce in both hydroformylation and

hydrogenation is up to 3 wt% preferably about 0.1 to about 1 wt%, based on the

weight feed to the fractionating column is already enough. The amount of water

entering the column is generally the same as in the hydrogenation effluent, desired

to the column for its cooling effect. Most of the water are drawn out at the bottom. n-

propanol is collected at the bottom of the column while the impurities are drawn out.

Liquid recycle is necessary to avoid waste. The amount of heat entering the column

from the reboiler and with the feed must equal the amount heat removed by the

overhead condenser and with the products.

CHINESE JOURNAL OF CATALYSIS .Volume 30, Issue 8, August 2009

U.S. Pat. 5,8667,725 (Feb. 2, 1999), J.D. Unruh and D.A. Ryan (to Celanese

International Corporation)

CHAPTER II

MARKET ANALYSIS

C​3​H​8​O
28
2.0 INTRODUCTION

The Malaysian petrochemicals sector has been growing at an impressive pace. The

government‘s investor-friendly policies and easy availability of feedstock have been

chiefly responsible for this growth. The country is also strategically located and

boasts strong physical infrastructure. About 39 companies are in operation in the

nation‘s petrochemicals industry. Major players in the industry include state-owned

Petronas and local Titan Chemicals, Germany-based BASF, UK-based BP,

Netherlands-based Royal Dutch Shell, Japan-based Mitsui, Toray Industries and

Kaneka, as well as US-based Exxon Mobil, DOW Chemical and Eastman Chemical

and China-based Dairen Chemicals.

Malaysian rank seventh place in Business Monitor International Ltd (BMI‘s)

Petrochemicals Business Environment Rankings for Asia with 63.4 points. While it

has significant petrochemicals production base, it lags in terms of infrastructure.

Nevertheless, oil and gas reserves should sustain some expansion of the

company‘s petrochemicals sector over the next decade.

Malaysia is home to well-developed, integrated petrochemicals zones that

offer world-facilities. The Malaysian government is working towards developing

Bintulu (Sarawak), Gurun (Kedah), Tanjung Pelepas (Johor) and Labuan into new

petrochemicals zones. Existing petrochemicals zones including Kertih and Telok

Kalong (Terengganu), Gebeng (Pahang) and Pasir Gudang-Tanjung Langsat

(Johor) will also be leveraged futher. The country also possesses a well developed

financial infrastructure and a world class power infrastructure.

Malaysian Petrochemicals Annual Report 2010, ( Source: Business Monitor

International (BMI) ).
29

2.1 SUPPLY AND DEMAND OF N-PROPANOL

2.1.1 Production Of n-Propanol Worldwide

Based on the most recent publicly available information, in 2005, global n-propanol

production was about 140,000 metric tonnes (308.6 million pounds). In 1993, there

are six n-propanol producers in the world, ie, Hoechst Celanese, Texas Eastman,

and Union Carbide in the United States; BASF AG and Hoechst AG in Western

Europe; and Sasol in South Africa.

In addition, n-Propanol economics pricing are sensitive to the raw material

costs of ethylene and the feedstock for synthesis gas, ie, natural gas or liquid

petroleum feedstocks. Natural gas-based technology is slightly more economical.

Consequently, the demand for n-propanol has declined by during the recent

recession.

Source: Kirk-Othmer Encyclopedia of Chemical Technology.Copyrightc, John Wiley

& Sons, Inc. All rights reserved.

 Source: http://www.sriconsulting.com/CEH/Public/Reports

Figure 2.1: ​World Consumption of n-Propanol in 2008

World Consumption of n-Propanol (
2008 )
30
2.1.2 The Global Demand Of n-Propanol
In chemical industries, n-propanol is used commercially to produce glycol ethers.
The n-propanol is dictated by their solvent properties, its high water miscibility and
by its potential for introducing the propyl group into chemical intermediates. In 1988,
over 75% if the n-propanol in the United States was employed in solvent
applications, either directly or in the form of acetate ester or glycol ether derivatives.
As a solvent, n-propanol is used principally in many types of industries such as inks,
paints, cosmetics, pesticides and insecticides. The Eastman Company used about
100000 tonnes of n-propanol in 1988. In Germany, BASF coverts most of its
propanal into n-propanol for printing inks, cosmetics, solvents and intermediates for
propylamines used in pharmaceuticals and pesticides. In Japan, 1000-2000 tonnes
of n-propanol was consumed in 1988 for printing inks and paints, all of which was
imported.
Source:ANTHONY J. PAPA, Union Carbide Chemicas and Plastic Company. Inc.,
South Charleston, WV 25303, United States​.
Figure 2.2 shows the global demand of n-Propanol in the world. The demand
of n-Propanol was decreased from 2008 until 2010 for United States but increased
in United Kingdom, Japan and Malaysia.
Global Demand of n-Propanol
)
30000 25000 ​
y/​ t( y ​
20000 ​ 15000
ti​ ca​
2008 ​ 10000
p​ a​
2009 ​ c​5000 0
2010
US UK Japan Mas
Country
Source: Malaysian External Trade Development Corporation (MATRADE)
Figure 2.2: ​The Global demand of n-Propanol
31

2.1.3 n-propanol In Malaysia

There are no chemical plants that produce n-propanol in Malaysia, but n-propanol is

exported as a by-product from chemical companies. Malaysia has already exported

around 8.25 tonnes per year in 2008, 5.68 tonnes in 2009 and 7.86 tonnes in 2010.

The demands of n-propanol have increased from year to year, so this plant will help

to cover the demand of n-propanol for future. Table 2.1 shows the Malaysia‘s

exports of n-propanol by country.

Table 2.1: ​Table of Malaysia‘s Exports of n-Propanol by Country.

Country Capacity (kg/year)

Singapore 773070

Sri Lanka 4374

China 2950

Thailand 2510

Vietnam 1630

Hong Kong 1630

Source: Malaysian External Trade Development Corporation (MATRADE)

 Malaysia not only export but also import n-propanol from other countries to

fulfil to demand of industry. As in 2008, 3835.56 tonnes n-propanol has imported,

the value for 2009 decreases to 3612.87 tonnes however and it increased back to

4784.72 tonnes in 2010. Malaysia imports most of n-propanol from Japan as shown

in Figure 2.1.3. Although United States is the most country that produced n-

propanol,, Japan was selected because it is much nearer to Malaysia thus reducing

the cost of transport.

32
Malaysia's Demand for n-Propanol
capacity (tonnes/year)
3835.56 ​3612.869
4784.72
2008 2009 2010
Source: Malaysian External Trade Development Corporation (MATRADE)
Figure 2.3: ​Table of Malaysia‘s Demand of n-Propanol By Year.
Malaysia - Imports n-Propanol
2% 2%

12%​
japan ​ 31%
singapore
south afric
26%taiwan
27%
united state
others
Source: Malaysian External Trade Development Corporation (MATRADE)
Figure 2.4: ​Shows the Malaysia‘s Imports of 1-Propanol by Country
33

2.2 SUPPLY AND DEMAND OF RAW MATERIAL

2.2.1 Ethylene

BMI estimates that total global ethylene capacity amounted to around 132.7 millions
tonnes per annum ( tpa ) in 2008, with Asia Pacific representing 32.7% of installed

capacity (China contributed 29% of Asian capacity ) and North America 25.6%

Although the Middle East and Africa are the largest source of oil and gas,

the region contributed just 17.2% of total capacity. This is set to change over the

medium to long terms as new capacity comes online, with global capacity set to

reach 174.8 million tpa in 2014. Gulf countries are expected to account for around

20% of the world‘s ethylene production by 2010 compared to the current 8%. Some

50% of all new ethylene projects being developed in the world are located in the

region. Saudi Arabia represent around 63% of total investment in the region , while

Qatar comes second, with a 14% share. The gulf Petrochemicals and Chemicals

Association ( GPCA ) has forecast that the region will account for 40% of total global

petrochemical production within 10 years.

Malaysian Petrochemicals Annual Report 2010, ( Source: Business Monitor

International (BMI) ).

Table 2.2 : ​World Ethylene Production By Country, 2009 and 2014 (1000 tonnes

capacity)

Country 2009 2014

US 27,387 25,500

China 12,610 20,910

Saudi Arabia 9,370 18,300

Japan 8,760 8,760

South Korea 7,360 7,580

Germany 5,745 5,745

Iran 5,606 9.006

Canada 4,951 4,951

 Taiwan 4,045 4,765

Netherlands 3,980 3,980

India 3,025 4,460

UK 2,885 2,885
34

Qatar 2,600 6,000

Thailand 2,570 4,470

Belgium 2,540 2,540

Singapore 1,990 3,790

Malaysia 1,770 1,770

e/f = estimate/forecast. Source: (Business Monitor International Ltd)BMI

20%

20%
5%
Eastern Europe

4%

China

23%
Source: (Business Monitor International Ltd) BMI

Figure 2.5 ​: Ethylene Capacities By Region ( 2009 Estimate )

Ethylene Capacities By
Region ​2009 Estimates

NAFTA

13%

15%
Western Europe

Middle East and Africa

South America
35

5%
 Asia Pacific ( excl. China )

19%
25% NAFTA
NAFTA

11%

Source: (Business Monitor International) BMI

Figure 2.6 ​: Ethylene Capacities By Region ( 2014 Forecast )

2.2.2 Production and demand of Ethylene in Malaysia

There are three companies that produce ethylene in Malaysia which are Titan

Petchem (M) Sdn Bhd that situated in Tanjung Langsat, Johore, Ethylene Malaysia

Sdn Bhd and Optimal Olefins (M) Sdn Bhd, both of them situated in Kertih,

Terengganu. The productions of ethylene from these three companies are

1,630,000 metric tonnes per annum.

The demands of ethylene have increased from year to year, but the

production of ethylene from these three plants still cannot fullfill the industry‘s

demand in Malaysia. To overcome this problem, Malaysia has import the bulk of

ethylene from other countries. Table 2.3.2 shows the Malaysia‘s exports of

ethylene by country from 2008 until 2010. Malaysia has import 3115482 kg of
ethylene in 2008, 1758982 kg of ethylene in 2009 and 3096795 kg of ethylene in

2010.

Source : Department of Statistic Malaysia (MATRADE)

Ethylene Capacities By
12%​

Region ​
2014 Forecast

5%

23%
Western Europe

Eastern Europe

Middle East and Africa

South America

China
36

Table 2.3 : ​Malaysia‘s exports of ethylene by country from 2008 until 2010

2008 2009 2010

Country kg kg Kg

Thailand 1,320,408 1,758,982 1,046,596

Hong Kong 0 0 523,684

 China 1,157,708 144,440 484,199

Singapore 2,324 3,596 413,031

South Korea 428,153 774,103 327,290

UK 18,640 84,400 154,800

US 157434 75080 73501

Italy 0 0 28800

Japan 15,090 8,280 15,720

Belgium 0 37,352 15,600

Taiwan 0 16,000 8,313

India 0 0 4,504

Canada 0 25 737

Spain 0 0 20

Australia 380 0 0

Pakistan 15,200 0 0

Netherland 145 9,360 0

Qatar 0 410,436 0

Source : Department of Statistic Malaysia (MATRADE)

2.2.3 Production and demand of carbon monoxide

Generally, production of carbon monoxide comes from the partial oxidation

of carbon-containing compounds; it forms when there is not enough oxygen to

produce carbon dioxide (CO​2​). This happen when operating a stove or an internal
combustion engine in an enclosed space. A major industrial source of CO is gas

producer, which involves a mixture containing mostly carbon monoxide and

nitrogen, formed by combustion of carbon in air at high temperature when there is

an excess of carbon. In modern technology, there are few processes produce

carbon monoxide as a byproduct such as, iron smelting and production of ammonia.
37

For the worldwide production, about 5 x 10​12 ​kilograms per year carbon

monoxide was produce due to photochemical reactions in the troposphere which

generate. In the Saudi Arabia, the production capacity is about 335,000 tonnes per

year​. ​Other natural sources of carbon monoxide include volcanoes, forest fires, and

other forms of combustion. In Malaysia, the Petronas Ammonia Sdn Berhad produce

carbon monoxide as a byproduct with 300USD/tonne.

Carbon monoxide is a very important industrial compound. The worldwide

carbon monoxide demand is estimated to be growing at about +4% per year. In the

petrochemical industry, carbon monoxide is mainly used in the production of acetic

acid, polyurethane intermediates and propanol production through oxo-process.

Other than that, in the form of producer gas or water gas, it is widely used as a fuel

in industrial operations. Besides, this gases also an effective reducing agent.

2.2.4 Production and demand of hydrogen

Hydrogen production can be defined as a large and growing industry in oil and gas

production industry. In 2004, about 50 million metric tons of hydrogen that is also

equal to about 170 million tons of oil equivalent was produced globally. The growth

rate is around 10% per year. In the United States production, for year 2004 the

production was about 11 million metric tons. At year 2005, the economic value of all

hydrogen produced worldwide is about $135 billion per year.

Source : Arno A. Evers FAIR-PR". Fair-pr.de. Retrieved 2009-09-19

Nowadays, the global hydrogen production is 48% from natural gas, 30%

from oil, and 18% from coal; water electrolysis accounts for only 4%. From an
ecological perspective, hydrogen should be generated through electrolysis of water,

using energy from renewable resources, preferably solar or wind energy.

38

Global Hydrogen
Production
natural gas oil coal water electrolysis

4%

18%

48%

30%

Source : Global Hydrogen Production". Hydrogenassociation.org.

Figure 2.7: ​Global hydrogen production

For the worldwide production of n-propanol, global investments in building the

hydrogen economy cost over $1.3 billion in 2006 and are rise to nearly $1.7 billion in

2007 and are expected to increased to $5.5 billion in 2012. This figure below

represents a ​Compound Annual Growth Rate (​ CAGR) of 27.0% over the next 5

years.

Production of
Hydrogen
900
 800
700
l
600 ​

l​
500
im​
400
$ ​300
200
100 0
2006 2007 2012

Year

Figure 2.8 : ​Global hydrogen production

39

For the past ten years, the hydrogen (H​2​) consumption has increased quite substantially.
​
Opportunities in hydrogen look strong during the forecast period

(2009–2014). Most of this hydrogen usually is produced by the consumer at the site

where it will be used. Nowadays, there are two primary uses for hydrogen today

which is to produce ammonia (NH​3​) via the Haber process, which is then used directly
​
or indirectly as fertilizer. It is because the world population and the intensive

agriculture used to support it are growing, ammonia demand is growing. The other

half of current hydrogen production is used to convert heavy petroleum sources into

lighter fractions suitable for use as fuels and also in methanol production.

Worldwide Demand of
Hydrogen
r
500 ​

e​
400
 tem​
30
0

ibuc​
20
0

oilli​
10
0

b​0

2003 2008 2013

year

Figures 2.8: ​Worldwide demand of hydrogen

2.3 SUPPLY AND DEMAND OF CATALYST

2.3.1 Production Cobalt Carbonyl Worldwide

Dicobalt octacarbonyl or Cobalt Carbonyl is the inorganic compound Co​2​(CO)​8​. This

metal carbonyl is a reagent and catalyst in organometallic chemistry and organic

synthesis. It is used as a catalyst for hydroformylation, the conversion of alkenes to

aldehydes. World cobalt carbonyl production capacity is estimated at 46900 metric

tonnes per year. The pie chart below shows the global production of Cobalt

Carbonyl​.

Source: Cobalt Facts 2006

40
Global Production of Cobalt Carbonyl
3% 3%

Republic of Congo 3%5%

 24%​ 7%
Zambia ​ Australia ​
Canada
10%Russian Federation
19% 11%
Cuba
New Caledonia
15%
brazil
Morocco
Source: Cobalt Facts 2006
Figure 2.9: ​The global Production of Cobalt Carbonyl
The total global production of cobalt in 2003 is 46 900 tonnes, with the principal nine
producing countries as follows (production in tonnes) which is Democratic Republic
of Congo, 11000; Zambia, 9000; Australia, 7000; Canada, 5200; Russian
Federation, 4800; Cuba, 3400; New Caledonia, 1500; Brazil, 1300; Morocco, 1300;
and other countries, 2400.
2.4 ECONOMIC DATA
An estimation of the operating cost, the cost of the producing the product, is needed
to judge the viability of a project, and to make choices between possible alternative
processing schemes. These cost of producing a chemical product will include the
items listed below They are divided into two group which are :
(a) Fixed Capital Cost : cost that do not vary with the production rate.
These are the bills that have to be paid whatever the quantity produced.
(b) Variable Fixed Cost : costs that are dependent on the amount of
product produced.
2.4.1 Fixed Capital Cost/ Investment
41

Apart from focusing only on the price of the raw materials, a large sum of investment

to establish a fully operational plant must be made. Fixed capital investment is

simply the sum of money required to be invested at the early stage of the

construction of a fully operating plant. Purchasing of necessary equipments plus the

installation is crucial as it will be the core investment that will determine the

compatibility of the plant as well as piping installation, land, instrumentation,

services and the land where the plant is going to be established. Table 2.4 listed the

equipments necessary for the n-propanol plant operation.

Equipment Cost

The cost of the purchased equipment is used as the basis of the factorial method of

cost estimation and must be determined as accurately as possible. It should

preferably be based on recent prices paid for similar equipment. Several assumption

have been made which are :

(a) The cost of equipment is select based on their size unit ( power, length,

area and capacity ) of the equipment.

(b) The cost equipment is selected based on the material that build up the

equipment.

(c) All the cost of each equipment is just the estimation because the details

calculation on size of equipment is done in Design Project 2.

(d) equipment cost estimation calculated using CEPCI 2008 and 2009.

Sample of calculation using CEPCI index 2008 and 2009 :

(a) For reactor, distillation column and gas separator, the cost index in

2008 is 642.4 and cost index in 2009 is 645.8. Hence :

Using equation : C​1​I​1 ​= C​2I​​ 2 Known

​ C​1 ​= cost of equipment

in base time.

C​2 ​= cost of equipment in the desire time.

I​1 and
​ I​2 =
​ index of cost at that time.

To calculate the cost of equipment ( reactor ) :

C​2 ​= C​1​(I​2/I​
​ 1)​ ​C​2 =
​ RM 765,611.00

(645.8/642.4)
= RM 769,663.00
 (b) For cooler, heater and storage tank, using the cost index in 2008 is

618.4 and the cost index in 2009 is 603.4

42

(c) For compressor, the cost index in 2008 is 850.5 and the cost index in

2009 is 902.1

(d) The calculation of each equipment are same as shown in sample of

calculation.

Table 2.4​: Equipment Costs for n-propanol Plant

Equipment Unit Cost/unit (RM) Total Cost (RM)

Reactor 2 769,663.00 ​1,539,326.00 Distillation

​ Column 1 1,171,304.00 ​1,171,304.00

Heater 4 11,192.00 ​44,768.00 Storage

​ Tank 1 184,513.00 ​184,513.00 Cooler
​ 1

58,681.00 ​58,681.00 Gas

​ Seperator 1 343,986.00 ​343,986.00 Compressor
​ 2

136,445.00 ​272,890.00 Total

​ Equipment Cost, C​e ​RM ​3,615,468.00

Source : http://matche.com and Plant Cost Index 2009

The land needed for the construction of n-propanol plant have been estimated about 20
acres which is approximately to 80,937.1284 m​2​. This value of

land is including the future expansion of the plant. Based on the site and location

selection in Chapter 3, Telok Kalong Industrial Area in Terengganu has been

chosen to construct this plant. According to Ministry of Industrial Development

Authority (MIDA), the land value in Telok Kalong Industrial Area is RM 60.00 for each 1
m​2​. The total cost needed for this land show in Table 2.5.

The fixed capital investment will be consisting of two category, direct cost

and indirect cost. The components of the direct costs and indirect costs are justified

based on the percentage from the total equipment cost, obtained from Table 2.5.
 Table 2.5 ​:Fixed Capital Investment of the n-propanol Plant

Component Estimation Cost (RM)

43

Direct Cost

Total Equipments Costs From Table 2.4 ​3,615,468.00 Equipment

​ Installation

(includes 40% of total equipment cost

insulation and painting) ​1,446,187.20 Piping

​ System Installation 50% of total

equipment cost ​1,807,734.00 Instrumentation

​ and Control 20% of total equipment

cost ​723,093.60 Electrical

​ System Installation 15% of total equipment cost

542,320.20 Service
​ facilities 50% of total equipment cost ​1,807,734.00 Building,
​
1,446,187.20
process and auxiliary 40% of total equipment cost ​

Land (1m​2 ​= RM60), ​4,856,227.70 Yard

​ Improvement 12% of total equipment cost

433,856.16 Total
​ ​16,678,808.06 Indirect
​ Costs

Engineering and supervision 10% of total direct cost ​1,667,880.80 Construction

​
expenses ​1,667,880.80 Legal
​ expenses 10% of total direct cost ​1,667,880.80

Contractors fee 5% of total direct cost ​833,940.40 Contingencies

​ 12% of total direct

cost ​2,001,456.97 Total

​ ​7,839,039.77 Fixed
​ Capital Investment ​Direct Costs +
Indirect Costs ​24,517,847.83

2.4.2 Operating Capital Cost

 Operating capital represents costs (variable cost plus fixed capital cost) necessary

to operate the plant. Listed below are the components of the working capital that

need to be taken account.

1. Raw materials.

2. Labour Cost.

3. Catalyst.

4. Utilities

5. Waste Treatment

2.4.3 Annual cost of raw materials

44
The production of n-Propanol is to be expected reach 100000 metric tonne per year.
The cost of raw material needed for this production rate are :
Assumption:
(a) To get 100000 metric tonne of n-propanol per year, the plant must
produce 11574.00 kg/hr of n-propanol.
(b) Using 6419.30 mol/hr as a basis of production of n-propanol.
(c) Ratio of raw material needed is 0.1 of ethylene, 0.45 of carbon monoxide
and 0.45 of hydrogen.
(d) Assume that ethylene is recycle back for every 4 hour after it is enough
store in the storage tank.
(e) Assume that hydrogen is recycle back for every 2 hour after it is enough
store in the storage tank.
(f) Assume that carbon monoxide is recycle back for every 2 hour after it is
enough store in the storage tank.
Table 2.5​: Annual cost for raw material
Amount
Raw Material ​
(kg/hr)
Cost (RM/yr) Supplier
Cost / kg (RM/kg) ​
Ethylene (M) Sdn. Bhd.
Ethylene 18009 3.00 116,698,320.00 ​
Kertih, Terengganu.
MOX-LINDE Sdn. Bhd.
Hydrogen 5824 1.20 30,191,616.00 ​
Kertih, Terengganu.
 80912 2.80 489,355,776.00
Carbon Monoxide ​
Petronas Ammonia
Sdn.Bhd. Kertih,
Terengganu.
Total 636,245,712
Source : Department of Statistic Malaysia (MATRADE)
2.4.4 Estimation of operating labor cost
Using Alkahayat and Gerrard Method :

​ ​= (​ 6.29 + 31.7​P2​ +
NOL ​ ​ L : Number of operator shifts
​ ​NO
0.23​N​NP )​ 0.5
P : Number of processing steps involving particulate solids
45

NNP : Number of non – particulate processing steps

2.4.5 Equipment that needs an operator to operate

Table 2.6​: Equipment that needs an operator to operate

Equipment Quantity Total

Reactor 2 2

Distillation Column 1 1

Heater 4 4

Storage Tank 1 0

Cooler 1 1

Gas Seperator 1 1

Compressor 2 2

Total = N​NP ​11

p=0

NOL = 2.9 operator per shift

3 operator per shift

2.4.6 Number of operator needed for one equipment

Assumption:

(a) A chemical plant normally operates 24 hours per day. This requires:

3 shifts x 330 days = 990 shift

day year year

(b) A single operator works on average 49 weeks a year. This is due to 3

weeks time off for vacation and sick leave. Hence,

1 shift x 5 days x 49 week = 245 shift .

day.operator week year operator.year

(c) Number of operator needed are :

990 shifts x year.operator = 4.00 operators

46

year 245 shifts

From the assumption, total number of operator needed for all equipments are:

Number of operator needed x ​NOL​ 4.00

​
operators x 3.00 = 12 operators

Table 2.7​: Total operating labor cost

Salary
Position Quantity Salary

(RM/month) Department
Engineering
Annual
i. Senior Engineer
 ii. Appliance Service Technician

Engineer 1 ​1

iii. Engineer
21
iv. Operator 3000.00
3000.00
1 ​1 2
2000.00
12 2000.00
5000.00
3000.00
5000.00
3000.00
2500.00
1200.00
2500.00
1200.00
5600.00 36,000.00
5600.00 36,000.00
36,000.00
10800.00
10800.00 24,000.00
60,000.00 24,000.00
60,000.00 24,000.00
60,000.00
36,000.00
30,000.00 36,000.00
30,000.00 36,000.00
30,000.00
14,400.00
67,200.00 14,400.00
67,200.00 14,400.00
67,200.00

129,600.00 Sales
129,600.00
129,600.00 i. Sales Supervisor

ii. Sales Assistant

Technical Department iii. Sales Clerk

i. Senior Technician 1 ​1

ii. Service Supervisor 2

iii. Technician 3000.00
3000.00
iv. Appliance Service
2000.00
 2000.00 24,000.00
24,000.00
2400.00
2400.00 28,800.00
36,000.00 28,800.00
36,000.00 28,800.00
36,000.00

24,000.00

Total 40,500.00 486,000.00

47

2.4.7 Catalyst Annual Cost

The catalyst used in the production of n-Propanol is cobalt carbonyl. These catalyst

was used for both hydroformylation and hydrogenation process. The uses of cobalt

carbonyl have been estimated by 3% of total feed/ hour.

0.3 x 104,745.2 kg /hr of feed = 31,423.56 kg/hr of cobalt carbonyl

Table 2.7​: Annual cost for catalyst

Cost / kg (RM) Total Cost (RM)
Catalyst Amount

(kg)

Cobalt Carbonyl 3,142.36 145.70 457,841.85

Source: ICIS.com 2010

2.4.8 Estimation of Utilities Cost

This term includes power, steam, cooling and process water and the effluent

treatment, unless costed separately. The quantities required can be obtained from

the energy balance. The price should be taken from the primary sources and the
plant location. The sample calculation in Table 2.8 shows the preliminary estimation.

The current cost of utilities supplied by the utility companies such as electricity and

water can be obtained from their local area offices.

According to the Ministry of Industrial Development Authority (MIDA), the

water rate from Centralized Utilities Facilities, Kertih is RM 1.15 per meter cube and

the electrical power rate from Tenaga Nasional Berhad (TNB) is RM 0.266 for 1

kW/h. The total rate for cooling water and electrical power are shown in Table 2.8.

For electricity cost, the electricity price must be multiply by 1.5 for industrial rate.
48

Table 2.8 ​: Estimation of Utilities Cost and Cost of Land

Water Cost ( RM ) Unit

Water price :-

a) Industrial 1.15 /m​3

Amount of water needed for the first startup 103 m​3​/day

Total 39,088.00 /year

Electricity

electricity price :-
0.266 x 1.5 /kWh
Tariff E1 Medium Voltage General 6.6kV –

66kV supply

total power required 50000 kW

Total electricity cost per day 19,950 /day

Total electricity cost per year 7,182,000.00 /year

Total utilities 7,221,088.00

 Total of Variable Cost = Raw Material + Labor Cost + Catalyst + Utilities

+ Waste Treatment Cost

The waste treatment cost is not considered in this plant and it is assume as external

waste treatment plant. Hence :

= RM636,245,712.00 + RM486,000.00 + RM457,841.85 +

RM 7,221,088.00 + 0.00 ( not included )

= RM 644,410,641.90

Operating Cost = Fixed Capital + Variable Cost

= RM 24,517,847.83+ RM 644,410,641.90

= RM 668,928,489.70

2.4.9 Start Up-Cost

Costs allocated for starting up the plant operation are start-up costs. Some of the

examples of start-up costs are process modifications, start-up labor and loss in
49
production. Douglas also estimated the total start-up cost of the plant operation is to
be 10% of the fixed capital investment.
Start-up Costs = 0.10 x fixed capital investment
= 0.10 x RM 24,517,847.83
= RM2,451,784.80
2.4.10 Total Investment
As stated earlier, total capital investment is the sum of the fixed capital investment
and the working capital plus the start-up costs.
Total capital investment = Fixed capital investment + Operating capital investment
+ Start-up costs
= RM 24,517,847.83 + RM 668,928,489.70+
RM 2,451,784.80
= RM 695,898,122.30
2.4.11 Product credit
Table 2.9​: Total annual sales
Selling Item Selling Price
(RM/ kg)
Production Rate
(kg/ yr)
Income
(RM /yr)
Product
i. n-propanol (99%
7.70 100,000,000.00 770,000,000.00
purity) ​
Source: ICIS.com 2010
The price of n-propanol is the 10% addition from the total price of raw material :
(a) Ethylene = RM 3.00
(b) Hydrogen = RM 1.20
(c) Carbon Monoxide = RM 2.80
(d) Addition 10% = RM 0.70
Hence the price of n-propanol is RM 7.70.
50

2.4.12 Break Even Analysis

Breakeven analysis is performed to determine the value of variable or parameter of

a project that makes two elements equal, for example the sales volumes that

equates revenue and costs.

Therefore,

Selling Price = Product

= RM 770,000,000.00

= RM 770,000,000.00 kg/year

Contribution = selling price - variable cost

 = RM770,000,000.00 - RM 695,898,122.30

= RM 74,101,877.69

Break Even point = Fixed Capital Cost

Revenue-variable cost

= RM 24,517,847.83

(RM 700,000,000.00- RM 695,898,122.30)

= 0.331 RM/year x 100000 tonne/yr

= 33,100 metric tonne/year

51
Break Even Graf
1E+09
900000000
800000000
700000000
C
600000000 ​
V​
500000000
+C​
FC + VC ​F​400000000
300000000
TC
200000000
100000000
0
0 40000 80000 120000
Capacity
The intersection shows the break point value of this plant. The break point value
shows the minimum value of production of n-propanol that must be produced within
the payback period. The value of production of n-propanol is 33,100 metric
tonne/year.
Payback period
)
700,000,000.00 ​
600,000,000.00
MR(​
500,000,000.00
w olf​
400,000,000.00
h s​
300,000,000.00
ace ​
200,000,000.00
vita​ l​
payback ​ period ​ 100,000,000.00
umu​
-
c​(100,000,000.00)
0 2 4 6 8 10
time (year)
Payback period = 2.26 ≈ 3 year
52 Cost of Manufacturing
Cost of Manufacturing
(R-COMd-dk)*(1-
(R-COMd-dk)*(1-
(R-COMd-dk)*(1-
t)+dk Cash Flow Cumulative Cash Flow
End of year (k) Investment Depreciation t)+dk Cash Flow Cumulative Cash Flow
Fixed Capital Investment - Depreciation t)+dk Cash Flow Cumulative Cash Flow
Revenue

0 4,856,227.70 24,517,847.83 (404,685.64) (404,685.64)

1 12,258,923.92 24,517,847.83 (12,258,923.92) (12,663,609.56)

2 12,258,923.92 24,517,847.83 (12,258,923.92) (24,922,533.47)

3 4,903,569.57 19,614,278.26 770,000,000.00 695,898,122.30 74,101,877.70 74,101,877.70

49,179,344.23

4 7,845,711.31 11,768,566.96 770,000,000.00 695,898,122.30 74,101,877.70 74,101,877.70

123,281,221.93

5 4,707,426.78 7,061,140.18 770,000,000.00 695,898,122.30 74,101,877.70 74,101,877.70

197,383,099.63

6 2,824,456.07 4,236,684.11 770,000,000.00 695,898,122.30 52,718,651.21 52,718,651.21

250,101,750.84

7 2,824,456.07 1,412,228.04 770,000,000.00 695,898,122.30 52,718,651.21 52,718,651.21

302,820,402.05
8 1,412,228.04 0.00 770,000,000.00 695,898,122.30 52,294,982.80 52,294,982.80
355,115,384.85

9 770,000,000.00 695,898,122.30 51,871,314.39 51,871,314.39 406,986,699.24

10 770,000,000.00 695,898,122.30 51,871,314.39 51,871,314.39 458,858,013.63

11 770,000,000.00 695,898,122.30 51,871,314.39 51,871,314.39 510,729,328.02

12 8,533,904.87 774,856,227.70 695,898,122.30 55,270,673.78 63,804,578.65 574,533,906.68

CHAPTER III

PLANT LOCATION AND SITE SELECTION

3.0 Introduction

In developing an industrial plant, the geographical location of the plant can give a

big influence and success of the industrial venture. Plant location study must be

done in selecting the suitable plant site since it can gives crucial effect on the

profitability of the project. Many factors must be considered before the plant location

been selected. For example, the plant must be located where the minimum cost of

production and distribution can be obtained but, other factors such as room for

expansion and utility suppliers for plant operation as well as the surrounding

community are also important.

Malaysia has allocated designated areas that are mainly located in over 200

industrial estates or parks and 13 Free Industrial Zones (FIZs) developed throughout
the country for constructing a plant. The choice of the final site should first be based

on a complete survey of the advantages and disadvantages of various geographical

areas and ultimately, on the advantages and disadvantages of the available real

estate. The various principal factors that must be considered while selecting a

suitable plant site are.

The factors to be considered are:

a) Raw material availability.

b) Location (marketing area).

c) Availability of suitable land.

d) Transport facilities.

e) Availability of labours.

f) Availability of utilities ( water and electricity )

g) Environmental impact and effluent disposal.

h) Local community considerations.

i) Political considerations

3.0.1 Raw material availability

One of the most important factors that influencing the selection of a plant site is the

source of raw materials because large volumes of ethylene, hydrogen gas and

carbon monoxide gas are consumed in the production of propanol. The purchased

price of the raw materials, availability and reliability of supply, purity of raw materials

and storage requirements should be given attention. Thus, the plant is supposed to

be located near the raw material supplier to reduce of the transportation and storage

charges.

3.0.2 Location ( marketing area )

The location of the selected site location should also be nearest to the port for
distribution and shipping matters. The location of markets or distribution centres is

important since it will affects the cost of product distribution and the time required for

shipping. The markets for the final product and the by-product are important

consideration in the selection of a plant site, because the buyer usually finds it

advantageous to purchase from near by sources.

3.0.3 Prices and geographical structure of the land.

The characteristics of the land at a proposed plant site should be examined

carefully. The topography of land and the soil structure must be considered, since

either or both may have a pronounced effect on construction costs. The price cost of

the land is the most important, as well as local building costs and living conditions.

Future changes may make it desirable or necessary to expand the plant facilities.

Therefore, even though no immediate expansion is planned, a new plant should be

constructed at a location where additional space is available.

3.0.4 Transport facilities

The final product will be exported to other countries such as Europe, Saudi Arabic,

East Asia, and also South Africa due to the worldwide demand that are currently

increasing. For shipping and product distribution, a site should be selected nearby

the port. The kind and quantity of products and raw materials determine the most

suitable type of transportation facilities. Motor trucking facilities are widely used and

can serve as a useful supplement to water facilities. If possible, the plant site should
have access to other types of transportation such as railway and airport. There is

usually a need for convenient air and road transportation facilities between the plant

and the company head quarters, and effective transportation facilities for the plant

personnel are necessary.

3.0.5 Availability of labours.

Labors will be needed for plant‘s construction and operation. Skilled construction

workers will usually be brought in from outside the site, but there should be

supervised by the trained operators to do maintenance work at the plant. Local trade

union customs and restrictive practices will have to be considered when assessing

the availability and suitability of the labors for recruitment and training. Consideration

should be given to prevailing pay scales, restrictions on number of hours worked per

week, competing industries.

3.0.6 Availability of utilities

The process industries use large quantities of water for cooling, washing, steam

generation, and as a raw material in process. Hence, the plant must be located

where a dependable supply of water and are available. Besides water, electricity

supply is also important to maintain the operating plant thus ensure the plant

operate continuously.

Water: -

Deminerialized water, from which all the minerals have been removed is used where

pure water is needed for the process use, in boiler feed. Natural and forced draft

cooling towers are generally used to provide the cooling water required on site.

Electricity: -

Power and steam requirements are high in most industrial plants and fuel is

ordinarily required to supply these utilities. Power, fuel and steam are required for

running the various equipments like generators, motors, turbines, boiler, plant‘s

lighting and for general use.

3.0.7 Environmental impact and effluent disposal.

Before selecting a plant site, the regional history of the natural event of the process

should be examined and the consequences of such occurrences from the process

effluent must be considered. Facilities must be provided for the effective disposal of

the effluent without any public nuisance. As all industrial processes produce waste

products, full consideration must be given to the difficulties and coat of their

disposal. The disposal of toxic and harmful effluents will be managed according to

local regulations, and the appropriate authorities must be consulted during the initial

site survey to determine the standards that must be met. In Malaysia, chemical

waste must be send to Kualiti Alam for waste disposal.

3.0.8 Local community considerations.

The proposed plant must fit in with and be acceptable to the local community. Full

consideration must be given to the safe location of the plant so that it does not

impose a significant additional risk to the community. Facilities such as religious

centres, libraries, schools, civic theatres, concert associations, and other similar

groups do much to make a community progressive. The tradition, character, and

tradition of the location should be considered.

3.0.9 Political and strategic consideration.

The political and strategic consideration from the government such as capital grants,

tax concessions, and other inducements is used to direct new investment to

preferred locations; such as areas of high unemployment. The availability of such

grants can be the overriding consideration in site selection.

Source: http://www.goarticles.com
3.1 Site Location Selection

There are three places in Malaysia, which are suitable for the location of the

propanol plant. The suggested industrial areas are:

a) Tanjung Langsat Industrial Area in Johor.

b) Gebeng Phase III Industrial Park in Pahang.

c) Telok Kalong Industrial Park in Terengganu.

3.1.1Tanjung Langsat Industrial Area in Johor

Figure 3.1 Tanjung Langsat,Johor Bahru

Tanjung Langsat industrial area is one of the petrochemical industrial areas that

located in Pasir Gudang next to the Johor Port. To cope with the needs of the

growing petrochemical industry, the adjacent Tanjung Langsat site has been
developed to enhance manufacturing capacity. There are some world class facilities

and infrastructures that provided in Pasir Gudang Industrial Area, which are:

• Peninsular Gas Utilisation (PGU) project.

• Tank farms are being developed for bulk storage of petrochemical liquid.

• Johor Port - With a 1,000-metre berth and a hazardous cargo jetty.

- Three hazardous liquid bulk terminals to handle LPG,

chemicals and petrochemicals.

• Tanjong Pelepas Port - a world class container port.

• Tanjung Langsat Port - Located adjacent to the 4,000 acres of industrial

land.
(Source:google map)
- Equipped with a tein-berth jetty consisting of outer

(30,000 DWT) and inner (7,000 DWT) berths.

List of Petrochemical plants that located in Pasir Gudang – Tanjung Langsat

industrial area are as below.

Table 3.1 List of Petrochemical Plant located in Pasir Gudang

Petrochemical Plant Product

Titan Petchem (M) Sdn Bhd Ethylene, Propylene, BTX ,

Polyethylene, Propylene
Petrochemicals (M) Sdn Bhd Polystyrene

Idemitsu SM (M) Sdn Bhd Ethylbenzene, Styrene Monomer

BASF (M) Sdn Bhd Expandable Polystyrene

Dairen Chemical (M) Sdn Bhd Ethylene Vinyl Acetate

Source: Ministry of industrial Development Authority (MIDA)

3.1.2 Gebeng Phase III Industrial Park in Pahang
 Figure 3.2 Gebeng,Kuantan,Pahang.

Gebeng is the petrochemical hub for multinational players like BASF, Amoco,

Kaneka and Eastman. The petrochemical zone provides an integrated environment

that meets the specific needs of a petrochemical industry Peninsular Gas utilities

(PGU) project. Facilities and infrastructure that provided here are:

• Centralised utility facilities such as power, industrial gas, water and steam.

• Kuantan Port - Centralised tankage facilities.

- Pipeline and piperack system connecting Gebeng to Kuantan

Port.

- Container and bulk liquid port.

- Railway linking Kertih, Gebeng, and Kuantan Port.

• Environment Technology Park - Incorporating a training centre, a waste

collection and processing centre as well a

raw material management and storage

facilities, maintenance and servicing

facilities.

• Transportation - East Coast Highway.

(Source:google map)
List of the Petrochemical plants that situated in Gebeng industrial area are shown as

below.

Table 3.2 List of Petrochemical Plant and Their Product

Petrochemical Plant Product

BASF Petronas Chemical (M) Sdn Bhd Butyl Acrylate, Oxo-alcohols, Acrylic Acid

and Esters, Syngas, Phthalic Anhydride and

Plasticizers, Butanediol, Tetrahydrofurane

and Gamma-butyrolactone

Eastman Chemicals (M) Sdn Bhd Polyester Copolymers

Amoco Chemicals (M) Sdn Bhd Purified Terephthalic Acid

Kaneka Paste Polymers Sdn Bhd Dispersion Polyvinyl Chloride

Kaneka Malaysia Sdn Bhd Methyl Methacrylates Copolymers

MTBE (Malaysia) Sdn Bhd MTBE, Propylene

Polyplastics Asia Pacific Sdn Bhd Polyacetals

Polypropylene (M) Sdn Bhd Polypropylene

Toray BASF PBT Resin Sdn. Bhd. Polybutylene Terephthalate (PBT)

Source: Ministry of industrial Development Authority (MIDA)

3.1.3 Teluk Kalong Industrial Park in Terengganu
 Figure 3.3 Teluk Kalong,Kemaman,Terengganu

Teluk Kalong is a newly developed industrial area situated 9.6 km from Kemaman

City, which is near to Petrochemical Hub area (Gebeng). Facilities and infrastructure

that provided here are:

• Gas processing plant.

• Centralized Utilities Facilities (CUF) project.

• Centralised utility facilities such as power, industrial gas, water and

steam.

• Institut Teknologi Petroliam - Training center.

• Kuantan Port - Centralised tankage facilities.

- Pipeline and piperack system connecting Gebeng to

Kuantan Port.

- Container and bulk liquid port.

- Railway linking Kertih, Gebeng, and Kuantan Port.

• Transportation - East Coast Highway.

 Table 3.3 List of Petrochemical Plant and Their Product
(Source:google map)
Petrochemical Plant Product

BASF See Sen Sdn Bhd Ultra pure Sulfuric Acid (PPT Grade)

Huntsman Tioxide Sdn Bhd Titanium dioxide pigment Petronas

Penapisan (T) Sdn Bhd Paraxylene, Benzene

Petronas Ammonia Sdn Bhd Ammonia

BP Petronas Acetyls Sdn Bhd Acetic Acid

Ethylene (M) Sdn Bhd Ethylene

Polyethylene (M) Sdn Bhd Polyethylene

Optimal Olefins (Malaysia) Sdn Bhd Ethylene and Polyethlene

Optimal Chemical (Malaysia) Sdn Bhd Ethanolamines,Ethoxylates,Glycol

Ethers,Butanol and Butyl Acetate

Optimal Glycol (Malaysia) Sdn Bhd Ethylene Oxide,Ethylene Glycol

MOX-LINDE Gases Sdn Bhd Hydrogen, Nitrogen, Oxygen, Carbon

Monoxide.

Source: Ministry of industrial Development Authority (MIDA)

3.2 Factors That Effect Site Location Selection ​Table 3.4 Factors That Effect Site Location

Selection
Con’t
Source: Ministry of industrial Development Authority (MIDA)
LOCATIONS FACTORS
Teluk Kalong Industrial Area Gebeng Industrial Area Pasir Gudang Industrial Area
Distance from
 9.6 km from Kemaman 31 km from Kuantan 48 km from Johor Bharu
town ​
Petrochemical Heavy and Petrochemical Medium and Petrochemical
Types of industry ​
Marketing Area Gasoline industry Gasoline industry Gasoline industry
Raw material
source
i) Ethylene from Ethylene (M) Sdn
Bhd,Kerteh,Terengganu
i) Hydrogen gas from MOX-LINDE
Gases Sdn Bhd, Kerteh,
Terengganu.
ii) Carbon Monoxide Gas from
Petronas Ammonia Sdn Bhd,
Kerteh, Terengganu.
ii) Ethylene from Ethylene (M) Sdn Bhd,
Kerteh,Terengganu.
iii) Hydrogen gas from MOX Sdn Bhd,
Kerteh, Terengganu.
iv) Carbon Monoxide Gas from Petronas
Ammonia Sdn Bhd, Kerteh,
Terengganu.
i) Ethylene from Titan Petrochemical
(M) Sdn. Bhd,Pasir Gudang,Johor.
ii) Hydrogen gas from MOX Sdn Bhd,
Pasir gudang,Johore.
Port i) Kertih Port,Terengganu i) Kertih Port, Terengganu i) Johor Port,Johor.
ii) Kuantan Port,Kuantan ii) Kuantan Port,Kuantan ii) Pasir Gudang,Johor.
iii) Tanjung Pelepas Port,Johor.
Port Facilities
i) Kertih Port,Terengganu i) - Centralized tank facilities and mainly
bulk liquid port
1000 meter berth and hazardous
cargo jetty
ii) hazardous liquid terminal
ii) Kuantan Port,Kuantan
- Centralized tankage facilities and
container bulk and liquid port
i) Sultan Ahmad Shah,Kuantan
Air Port ​
ii) Kerteh airport,Terengganu
i) Kertih Port,Terengganu
- Centralized tank facilities and mainly
bulk liquid port
ii) Kuantan Port,Kuantan
- Centralized tankage facilities and
container bulk and liquid port
Senai Aiport,Johor Bahru
i) Sultan Ahmad Shah,Kuantan ii) Kerteh airport,Terengganu ​
Road Facilities
i) Jerangau-Johor Highway i) ii) Karak-Kuantan Highway
iii) Kuala Terangganu-Kerteh-Telok
Kalong-Gebeng-Kuantan-Kuala
Lumpur Highway
Jerangau-Johor Highway
ii) Karak-Kuantan Highway
iii) Kuala Terangganu-Kerteh-Telok
Kalong-Gebeng-Kuantan-Kuala Lumpur
Highway
i) North – South Highway (Bukit Kayu
Hitam to Singapore)
ii) Pasir Gudang – Tanjung Kupang
Disposal
Kualiti Alam Sdn. Bhd. Kualiti Alam Sdn. Bhd. Kualiti Alam Sdn. Bhd.
Facility ​
Water Supply Centralized Utilities Facilities
(CUF),Kerteh,Terengganu
Con’t ​
Lembaga ​ Air Johor ​Source: Ministry of industrial Development Authority (MIDA)
Centralized Utilities Facilities
(CUF),Gebeng,Kuantan.
Source: Ministry of industrial Development Authority (MIDA)
Water Rate Per
RM 1.87 RM 1.87 RM 2.22
1M​3 ​
Electricity
Tenaga National Berhad (TNB) Tenaga National Berhad (TNB) Tenaga National Berhad
Supply ​
(TNB)

RM 0.266 RM 0.266 RM 0.266

Electricity RatePer kWh ​
Availability of
150 hectares 209.51 hectares 1,115.55 hectares
Land ​
Land Prices
RM 60 RM 96.88 ​
Per m​2 ​ RM 172.22
Other Facility
Fire Station, Chukai
Fire Station, Gebeng
Police Station, Kemaman.
Police Station, Gebeng.
Hospital, Kemaman.
Hospital Tengku Ampuan Afzan, Kuantan
Fire Station, Pasir Gudang
Police Station, Pasir Gudang
Hospital Penawar Sdn Bhd, Pasir
Gudang
Petrochemical
Plant
Petronas Aromatics Sdn Bhd
Arnoco Chemical (M) Sdn, Bhd Petronas Ammonia Sdn Bhd
Kaneka Paste Polymers Sdn. Bhd BP Petronas Acetyls Sdn Bhd
Eastman Chemical Sdn. Bhd Ethylene (M) Sdn Bhd
BASF Petronas Chemical (M) Sdn. Bhd Polyethylene (M) Sdn Bhd
Polyplastics Asia Pacific Sdn. Bhd Optimal Olefins (Malaysia) Sdn Bhd
Polypropylene (M) Sdn. Bhd. Optimal Chemical (Malaysia) Sdn Bhd
Petrochemical (M) Sdn. Bhd.
Idemitsu SM (M) Sdn. Bhd.
Dairen Chemical (M) Sdn. Bhd.
Titan Petrochemical (M) Sdn. Bhd.
Titan Polyethylene (M) Sdn. Bhd.
Titan PP Polymer (M) Sdn. Bhd.
Natural Oleo (M) Sdn. Bhd.
Source: Ministry of industrial Development Authority (MIDA)
Source: Ministry of industrial Development Authority (MIDA),http://www.yellowpages.com.my
Table 3.5 Industrial Land Information
Name of Industrial Estates
Distance
Type of Industry From
Prefered Nearest
Total Town
Hectares Developed
Industrial land Selling
Price Sq.M (RM)
Quit Rent Total
per Hectares
Sq.M still
per Available
annum (RM) ​Telok Kalong
Total
Total Hectares
Hectares Saleable
Allocated
7% - 9% 60 i. medium
ii. heavy
Gebeng Industrial Area
9.6 KM
1,429 1,200 1,032 150 60.00 0.08- from
0.20 Kemaman
566.57 491.24 281.73 209.51 96.88 0.15 7.5% 66 i.heavy
Pasir Gudang Industrial Area
31 KM from Kuantan 48 KM
1,736.89 1,246.24 130.69 1,115.55 172.22 - 0.85% 60 i. light from
ii. medium Johor
iii. heavy Bahru
Source: Ministry of industrial Development Authority (MIDA)
Con’t
Optimal Glycol (Malaysia) Sdn Bhd
Petlin Sdn Bhd
Vinyl Chloride (M) Sdn Bhd
Incentive for
investment
15% tax of statutory income for 5 years 30% tax of statutory income for 5 years 30% tax of
statutory income for 5 years
Annual Assesment Rate ( % of property Value )
Lease Period (Years)
3.3 Plant Site Location Selected
The selection on a few proposed plant sites were narrowed down based on the
factors in table 3.2 which include distance from town, types of industry, marketing
area, raw material source, facilities, utility source, land avaibility and sources. After a
detailed study, each site was given a weighage and estimated as tabulated in Table
3.6, Teluk Kalong Industrial Park was found to be the most suitable place to build
the plant, based on highest score of 26 as compared to other Industrial Parks.
Table 3.6 Weighage study for the proposed plant
Definition Excellent Very Good Moderate Good Not
Good
Rate 5 4 3 2 1
Telok
Weightage Pasir Gudang Gebeng III ​
Kalong
5543
Total land available ​
Price of land 5 3 4 5
Raw material sources
5245
Labor Cost 5 3 4 5
Utilities (water and electric rate)
5344
Transportation Cost
5444
Total 30 20 24 26

Based on our evaluation and weighage study, it can be conclude that the best

site for our plant is in Telok Kalong Industrial Park, which is located in Terengganu

Darul Iman. Telok Kalong is a newly developed industrial area situated 9.6 km from

Kemaman City and is near to the Petrochemical Hub area (Gebeng). Telok Kalong

Industrial Park fulfils most of the criteria‘s mentioned earlier with total avalbility of the

land is about 150hectares which is enough for plant construction. It is closely

located to the three integrated Petrochemical Complexes (IPC) available in

Malaysia. An added advantage to this particular industrial park is that it has the

Centralized Utilities Facility (CUF), which is owned and operated by Petronas. CUF

supplies utilities including electricity, steam, demineralized water and gases such as

nitrogen, oxygen and argon to meet the requirement of petrochemical complexes.

The utility costs are lower as compared to the normal rate. Moreover, emergency

facility such as fire-fighters, police station and hospital also near with the area and is

available for any emergency purposes.

The availability of raw materials is important to the industry. The nearest

supplier the raw material is the Hydrogen gas from MOX-LINDE Gases Sdn Bhd,

Kerteh, Terengganu for hydrogen supply, Petronas Ammonia Sdn Bhd for cabon

monoxide gas supply and Ethylene Malaysia Sdn Bhd for ethylene supply which all

located in Kerteh. This factor can reduce transportation cost since the raw material
is near since the raw materials are pipe directly to the plant from the source.

Besides, Telok Kalong is situated closely to the Kuantan Port and has complete

facilities to transport the product to the customers for shipping activity.

Since Teluk Kalong is situated in the East Coast, skilled labors will not be a

problem. Graduates are available from KUKTEM (Kolej Kejuruteraan Teknologi

Malaysia) situated in Pahang Darul Makmur, Institut Teknologi Petroliam Training

Center, located in Terengganu Darul Iman and also Universiti Teknologi Mara in

Selangor Darul Ehsan. These institutes are known for their highly skilled and

knowledgeable graduates in Chemical Engineering. Therefore, jobs can be offered

to these graduates, thus the labour cost can be reduce.

In addition, Telok Kalong is the most suitable plant area since there is

sufficient land to build our plant. Besides that, the price of land is also cheaper as

compared to other Industrial Parks based on the Table 3.5. Other than that, the

Incentive for investment tax for 5 years is much lower compared to other Industrial

Parks based on the Table 3.2.

CHAPTER IV

ENVIRONMENTAL AND SAFETY CONSIDERATION

4.0 PROPERTIES OF RAW MATERIALS AND N-PROPANOL

For the safety precautions of the plant, there are certain properties of raw material,

product, by products and also catalyst that need to be considered. Properties that

need to be considered are molecular weight, boiling point, melting point, density,

relative vapor density, vapor pressure, flash point, ignition temperature and

explosion limits.

Raw Materials

Table 4.1​: Properties of Ethylene Gas

Physical State Gas

Molecular weight 28.05 g/mole

Boiling point −103.7 °C

Melting point −169.2 °C

Density 1.178 kg/m​3 ​at 15 °C

Relative vapor density 0.96

Vapor pressure 8273.7 kPa

Flash point -136​o​C

Explosive limits (vol%):

3.1% - 32%
Upper Lower ​

Ignition temperature 450​o​C

Table 4.2 ​: Properties of Carbon Monoxide Gas
 Physical State Gas

Molecular weight 28.010 g/mole

Boiling point −191.5 °

Melting point −205 °C

Density 1.145 g/cm​3 ​at 25 °C, 1 atm

Relative vapour density 0.97

Vapor pressure >220.4 kPa

Flash point −191 °C

Explosive limits (vol%):

12%-75%
Upper Lower ​

Ignition temperature 610°C

Table 4.3​: Properties of Hydrogen Gas

Physical State Gas

Molecular weight 102.18 g/mole

Boiling point -252.8​o​C

Melting point -86​o​C

Density 0.72 g/cm​3 ​at 20​o​C

Relative vapor density 3.52

Vapor pressure 15.87 kPa

Flash point 25​o​C

Explosive limits (vol%):

1.4% - 7.9%
Upper Lower ​

Ignition temperature 570​o​C

Product
 Table 4.4 ​: Properties of n-propanol

By product

Table 4.5 ​: Properties of propanal

Physical State Liquid ​Molecular weight

58.08 g/mole Boiling point 49°C

Melting point -81°C Density 0.81 g/cm​3

Relative vapor density 2.0 Vapor pressure 31.33

kPa at 20°C Flash point -30 °C
2.6%-17.0%
Explosion limits (vol%)
Lower Upper
Physical State Liquid

Molecular weight 60.5 g/mole Boiling point 97.2

o​
C Melting point -125.2 o​​ C Density 0.806 g/cm​3
Relative vapor density 2.1 Vapor pressure
 27.998 kPa at 25 o​​ C Flash point 23 o​​ C

Explosion limits (vol%): Lower Upper

2.1%-13.7%

Ignition temperature 371 o​​ C

Ignition temperature 207 °C

Table 4.6 ​: Properties of dipropyl ether
 Table 4.7 ​: Properties of ethane

Physical State Gas ​Molecular weight

30.07 g/mole Boiling point -88.6 °C

Melting point -181.76 °C Density 1.282

kg/m​3

Relative vapor density 1.05 Vapor

pressure 3847.27 kPa Flash point -135 °C
3 %-12.4 %
Explosion limits (vol%)
Lower Upper
Physical State Liquid

Molecular weight 102.18 g/mole Boiling point

87-91 o​​ C Melting point -122 o​​ C Density 0.7
g/cm​3 ​Relative vapor density 1.2 Vapor
pressure 8.33 kPa at 25 o​​ C Flash point 21 o​​ C
 Explosion limits (vol%): Lower Upper
1.3 %-7 %

Ignition temperature 188 o​​ C

Ignition temperature 472 °C

Table 4.8 ​: Properties of water

Physical State Liquid ​Molecular weight

18.02 g/mole Boiling point 100 °C

Melting point Not available Density 1000

g/cm​3

Relative vapor density Vapor pressure 2.3 kPa

at 20 °C Flash point Not applicable
Not applicable
Explosion limits (vol%)
Lower Upper
 Ignition temperature Not applicable

Table 4.9 ​: Properties of cobalt carbonyl catalyst.

Physical State Solid ​Molecular weight

341.94 g/mole Boiling point 52 °C

Melting point 51 °C Density 1.7 g/cm​3

Relative vapor density Not available Vapor

pressure 0.2 kPa at 20 °C Flash point Not
available
Not available
Explosion limits (vol%)
Lower Upper

Ignition temperature Not available

4.1 ENVIRONMENT CONSIDERATION

The most complex problems faced by the industry in running a plant will be the

proper control and use of the natural environment. Establishment of plans for

environmental planning and management requires that a number of natural and

societal factors must be taken into consideration. Insights into the inherent dynamics

of nature as well as the role that past human activities have played for establishing

the current condition of the landscape and the natural environment in general are

essential.
 Many natural and man-made changes occur over time scales of decades or

centuries, and these are difficult to comprehend without a historical perspective.

One of the dominant impacts of environmental regulations is that the lead time

required for the planning and construction of the new plants is substantially

increased. When the new plants generate major environmental complexities, the

implications can be profound. Of course, the exact extent of addition to lead time will

vary widely from one case to another depending on which permit requirements apply

and on what difficulties are encountered.

In the plant level, there were numbers of ways and things could be done in

order to minimize the impact of the environmental quality requirements such as:

a) Maintaining an accurate source-emission inventory

b) Continuously evaluate process operation in order to identify potential

modifications that might be reduced the impact of environment.

c) Ensuring the good housekeeping and strong preventive-maintenance

programs are exist and followed.

d) Investigating available and emerging pollution-control technologies

e) Closely working with the regulatory agencies

f) Implementing the environmental management system (EMS)

EMS is a continual cycle of planning, implementing, reviewing, and

improving the process and actions that an organization undertakes to meet its

business and environmental goals. EMSs are built on the ―Plan, Do, Check, Act

leads to continual improvement. Planning includes identifying environmental aspect

and establishing goals (plan); implementing includes training and operational

controls to do (do); checking includes monitoring and corrective action (check); and
reviewing includes progress review and acting to make needed changes to EMS
(act).
4.1.1 Air Quality
The Clean Air Act is the law that defines EPA's responsibilities for protecting and
improving the nation's air quality and the stratospheric ozone layer. The last major
change in the law, the Clean Air Act Amendments of 1990, was enacted by
Congress in 1990. Legislation passed since then has made several minor changes.
U.S EPA (Environmental Protection Agency) under clean Air Act 1970 has identified
eight major air pollutants that are potentially hazardous to public health and welfare
as shown in Table 4.5.
Table 4.10​: Eight major air pollutants
Health And
Pollutant ​
Environmental Sources ​ Respiratory and visual
Environmental Concern ​ Particulates ​
irritant
Respiratory irritant, ​
Dust, combustion and minerals processes Sulfur dioxide ​ vegetation
damage
Combustion and minerals processes
Cardiovascular, nervous
Carbon monoxide ​
and pulmonary system
Respiratory
Automobiles, combustion, minerals processes, natural sources Nitrogen dioxide ​
illness and

lung damage
Respiratory irritant;
High temperature combustion and natural sources Ozone ​
Atmospheric reactions
vegetation damage ​
Retardation and brain
Lead ​
damage
Respiratory and visual
Combustion, minerals processes and natural sources Hydrocarbons ​
irritant
Automobiles, combustions and natural sources
Photochemical oxidants
Respiratory and visual irritant; vegetation damage
Atmospheric reaction
Source: Perry’s Chemical Engineering Handbook
The Clean Air Act empowered EPA to establish national ambient air quality
standard (NAAQS). In order to control air quality, EPA imposed limits for the
prevention of significant deterioration (PSD) in those areas of the country that were
already cleaner than required by NAAQS. EPA established an area classification
scheme to be applied in all such regions. The basic idea was to allow a moderate
amount of industrial development but not enough to degrade air quality to a point at
which it barely complied with standards. In addition, states were to designate certain
areas where pristine air quality was especially desirable.
There are three classes of air quality areas under PSD:
1. Class I : Pristine areas that are subjected to highly restrictive controls.
2. Class II : Areas of moderate industrial growth.
3. Class III : Areas of major industry activity.
The EPA regulation also establish another critical concept known as the
increment as a numerical definition of the amount of additional pollution that may be
allowed through the combine effects of all new growth in particular locality (see
Table 4.6). To control this EPA has specified that every new major plant should
install best available control technology (BACT) to limit the emission. BACT is
determined based on a case-by-case engineering analysis. A major stationary
source was defined as any source like fossil-fuel-fired steam, coal cleaning plant,
kraft-pulp mills and etc. with the potential to emit 100 tons per year or more of any
pollutant regulated under the Clean Air Act (CAA) or any other source with the
potential to emit 250 tons per year or more of any CAA pollutant. The potential to
emit is defined as the maximum capacity to emit the pollutant under the applicable
emission standard and permit condition.

Table 4.11​: PSD Air quality increments ​( ​μ

)​
/​m 3​ ​ Class I Area Class II Area Class III Area
Sulfur Oxide
Annual
24-h
3-h
2 20 40
5 91 182
25 512 700
PM​10
Annual 4 17 34
24-h 8 30 60
Nitrogen Dioxide
Annual 2.5 25 50
Source: Perry’s Chemical Engineering Handbook
As can be seen the n-propanol process plant used carbon monoxide that very
poisoning to the human and environment. In order to release unreacted carbon
monoxide to the atmosphere, the effects to the air quality must be prioritizes and
follow the regulation stated in the law.
4.1.2 Recommended Malaysian Air Quality Guideline (RMAQG)
There are no ambient air quality standards in Malaysia. The Malaysian
government, however, established ambient air quality guidelines in 1988. Pollutants
addressed in the guidelines include ozone, carbon monoxide, nitrogen dioxide,
sulfur dioxide, total suspended particles, particulate matter under 10 microns, lead
and dust fall. The averaging time, which varies from 1 to 24 hours for the different air
pollutants in the RMAQG, represents the period of time over which measurements is
monitored and reported for the assessment of human health impacts of specific air
pollutants.
Table 4.12​: RMAQG (at 25​o​C and 101.13 kPa) adopted in API calculation
Malaysia guidelines
Pollutant Averaging time ​
(ppm) ​μ​g/m​3 ​Ozone AS 2524
1 hour 8 hour
0.10 0.06
200 120 Carbon monoxide (mg/m​3​) AS 2695
1 hour 8 hour

30 ​9

35 ​10 Nitrogen
​ dioxide AS 2447
1 hour 24 hour
0.17 0.04

320 ​-
Sulfur dioxide AS 2523
10 minute 1 hour 24 hour
0.19 0.13 0.04
500 350 105
- PM 10
24 hour AS 2724.6
1 year

-
150 50 Total suspended particulate (TSP)
24 hour 1 year
260 90 Lead 3 month 1.5
2​
Dust fall 1 year 133/mg/m​ /day Source: Department of Environment (1989)
The API system closely follows the PSI system of the U.S. As such, the API
breakpoints; at 100 for the various air pollutants correspond to the respective RMG
concentration regarded as being "safe levels". In other words, air quality with API
values exceeding 100 are considered likely to cause health effects to the general
public. Further, a linear correlation is assumed from API 0 to API 100, with the
breakpoint at API 50 corresponding to 50% of the RMAQG concentration standards
for the various air pollutants. Air quality in terms of human health impacts and
implications are categorized as follows under the API system adopted in Malaysia.
Table 4.13​: Summaries additional information on general human health effects on
API status indicator
Air Status Level of pollution Health Measure ​0-50 Good Low, no ill effects on health No
restriction of activities
for all groups 51-100 Moderate Moderate pollution, no ill eff
ects on health
No restriction of activities for all groups 101-200 Unhealthy Mild aggravation of symptoms
among high risk groups, e.g. those with heart or lung disease
Restriction of outdoor activities for high-risk persons
General population should reduce vigorous outdoor activity 201-300 Very
unhealthy
Signifi cant aggravation of symptoms and decreased exercise tolerance in persons with heart or
lung disease
Elderly and persons with known heart or lung disease should stay indoors and reduce physical
activity
General population should avoid vigorous outdoor activity
Those with any health problems to consult doctor 301-500 Hazardous Severe aggravation of
symptoms and a danger to health
Elderly and persons with existing heart or lung disease should stay indoors and reduce physical
activity
General population should avoid vigorous outdoor activity
>500 Emergency Severe aggravation of
symptoms and a danger to health
Emergency General population advised to follow the orders of the National Security Council
and always follow announcements through the mass media
Source :API Status Level of Pollution Health Measure
Table 4.14​: Significant harm level to API value of 500
Concentration
Pollutant Averaging time ​
μ​m/m​3 ​ppm
Carbon monoxide (CO) 8 hour 57 500 50

Nitrogen dioxide (NO​2​) 1 hour 3 700 2.0 Ozone

​ (O​3​) 1 hour 1 200 0.6

Particulate matter (PM​10​) 24 hour 600 - Sulfur

​ dioxide (SO​2​) 24 hour 2 620 1.0
The averaging time that varies from 1 to 24 hours for different air pollutants
in the RMAQG, represents the period of time over which measurements is

monitored and reported for the assessment of human health impacts of specific air

pollutants. As such, the air pollution indices are normally monitored and reported for

the same averaging times as those employed for the air quality
standards/guidelines.

4.1.3 Air Pollutant Index (API) Calculation

The following is an outline of the procedures involved in calculating the API values:

1. Continuous air quality data is collected for the five air pollutants in the

API system for sufficient averaging time periods.

2. The necessary calibration, validation, quality control and quality

assurance in the process of data collection is conducted.

3. The average concentration of the specific air pollutants for the specified

averaging time periods is calculated.

4. The sub-index value for each of the five air pollutants based on the

average concentrations calculated and with the use of the sub-index is

calculated.

5. The API at a given time for the preceding averaging period is reported

(the common end of 1 hour, 8 hour or 24 hour for all five pollutants is

taken) in terms of the highest sub-index value obtained; i.e. API = Max

{sub-indices of all five air pollutants}

4.1.4 Environmental Impact Assessment (EIA)

An EIA is a study to identify, predict, evaluate and communicate information

about the impacts on the environment of a proposed project and to detail out the

mitigation measures prior to project approval and implementation. It seeks to avoid

costly mistakes in project implementation, either because of the environmental

damages that are likely to arise during project implementation, or because of

modifications that may be required subsequently in order to make the action

environmentally acceptable. In Malaysia, an EIA is required under Section 34A,

Environmental Quality Act, 1974. The objectives of EIA are:

1. To examine and select the best from the projects options available.

2. To identify and incorporate into the project plan appropriate abatement

and mitigating measures.

3. To predict significant residual environmental impacts.

4. To determine the significant residual impacts predicted.

5. To identify the environmental costs and benefits of the projects to the

community.

EIA is essentially a planning tool for preventing environment problems due

to an action. It seeks to avoid costly mistakes in project implementation, either

because of the environmental damages that are likely to arise during project

implementation, or because modifications that may be required subsequently in

order to make the action environmentally acceptable. There are two EIA procedures

adopted in Malaysia, namely the Preliminary EIA and the Detailed EIA, that can be

described as follows:

a) Preliminary EIA

Preliminary EIA is assessment of impacts due to those activities that are

prescribed. The Preliminary EIA report that is prepared is reviewed by a technical

committee consisting of the Department of Environment States and other relevant

government agencies. The number of Preliminary EIA report to be submitted to the

Department of Environment States Offices for review is 15 copies, and 3 copies to

the Department of Environment Headquarters.

 b) Detailed EIA

Detailed EIA is a procedure undertaken for those projects with

major/significant impacts to the environment. The detailed assessment involve EIA

report display for the public and affected community to comment. The Director

General of Environment has the prerogative to request a detailed assessment of a

project which has significant impacts to the environment of projects which are

located in or adjacent to environmentally sensitive areas.

c) Terms of Reference (TOR)

For projects which have been determined to require detailed assessment,

the project initiator must submit the terms of reference (TOR) in accordance to the

format outlined in specific EIA guidelines. To assist project proponents in submitting

a project-related and site-specific TOR, the Department of Environment has

prepared a general guidance in TOR preparation prior to submission of a detailed

EIA report. The TOR will outline the environmental data collection that are required,

determine the assessment procedures to be used and identify the appropriate

methodologies for impact prediction and assessment. The TOR has to be project

specific and site specific.

The draft TOR for Detailed Assessment are prepared by the project initiator

and to be confirmed by the expert Review Panel and are prepared in consultation
with relevant environment related agencies and the project initiator. The number of

TOR to be submitted to the Department of Environment is 35 copies.

d) Detailed Assessment

Detailed assessment is carried out based on specific terms of reference

issued by an ad hoc Review Panel appointed by the Director General. The EIA

Report is reviewed by the ad hoc Review Panel chaired by the Director General.

The Department of Environment maintains a list of experts who may be called upon

to sit as members of any Review. The selection of the experts depends on the areas

of environmental impacts to be reviewed.

The number of Detailed EIA report to be submitted to the Department of

Environment Headquarters for review is 50 copies. Review of EIA reports is carried

out internally by the Department of Environment, DOE with the assistance from the

relevant technical agencies for preliminary assessments reports and by an ad hoc

Review Panel for detailed assessment reports. Recommendations arising out of the

review are transmitted to the relevant project approving authorities for

considerations in making a decision on the project. According to the DOE's Client

Charter, the period allocated for a review of a term of reference and EIA reports are

as follows: ​1. Term of Reference - 2 months

2. Preliminary EIA Report - 3 months

3. Detailed EIA Report - 5 months

4.2.0 Environmental impact assessment

EIA is a process assessing the overall impacts on the environment of developments

projects proposed by the public and private sectors. EIA is an important procedure

for ensuring that the likely effects of new development on the environments are fully

understood and taken into account before the development is allowed to go ahead.

The objectives of EIA are:

1. To examine and select the best from the projects options available.

2. To identify and incorporate into the project plan appropriate abatement

and mitigating measures.

3. To predict significant residual environmental impacts.

4. To determine the significant residual impacts predicted.

5. To identify the environmental costs and benefits of the projects to the

community.

EIA is essentially a planning tool for preventing environment problems due

to an action. It seeks to avoid costly mistakes in project implementation, either

because of the environmental damages that are likely to arise during project

implementation, or because modifications that may be required subsequently in

order to make the action environmentally acceptable. In Malaysia, EIA is required

under section 34A, Environmental Quality Act, 1974.The EIA procedure adopted in

Malaysia consists of three major steps that are:

1. Preliminary assessment of all prescribed activities.

2. Detailed assessments of those prescribe activities for which significant

residual environmental impacts have been predicted in the preliminary

 assessment.

3. Review of assessment reports.

A preliminary assessment should normally be initiated during the early

stages or project planning. Standard procedure steps are provided and the

assessment might be conducted "in house", or by a consultant. Some form of public

participation is mandatory. Environmental data collection may be necessary and

close liaison between the assessor and relevant environment related agencies is

encouraged. The results of preliminary assessment are reported formally for

examination and approval by the project approving authority and the Director

General of Environmental Quality.

Preliminary assessment requires resources that are a small proportion of

the man hours, money, skills and equipment committed to a feasibility study and the

assessment should be completed within the time frame of that study.

Detailed assessment should continue during project planning until the project

plan is finalized. Standard procedure steps are provided and specific terms of

reference based on the results of preliminary assessment are issued for each

project. The assessment method is selected according to the nature of the project;

some form of public participation is required. Environmental data collection is almost

certainly necessary. The result of detailed assessment is reported formally.

Review of EIA reports is carried out internally by the Department of

Environment, DOE with the assistance from the relevant technical agencies for

preliminary assessments reports and by an ad hoc Review Panel for detailed

assessment reports. Recommendations arising out of the review are transmitted to

the relevant project approving authorities for considerations in making a decision on

the project. According to the DOE's Client Charter, the period allocated for a review
of a term of reference and EIA reports are as follows:

1. Term of Reference - 2 months

2. Preliminary EIA Report - 3 months

3. Detailed EIA Report - 5 months

4.3 WASTE MANAGEMENT

Generally, the objective of waste management is to minimize the impact residues on

the environment by managing the chemical waste that obtains from the operating

plant. The concept of waste management are encompass waste avoidance by

avoiding or reducing the quantity of residues and the recycling of residues as well as

the disposal of the remaining residues as waste. Based on the Environmental

Quality (Scheduled waste) Regulation 1989, waste management required to treat or

disposed the waste.

Source : Coulson & Richardson’s, Chemical Engineering, volume 9.

4.3.1 Spills and Leaks

Facilities for plant operation in n-propanol production should implement a sound

spills prevention and emergency response plant. Here, the plan should have:

• Spill detection methods emergency-notification procedures

• Community contacts for notification and advice on evacuation needs

• Fire prevention and protection provision for spill containment and cleanup

• Compliance with applicable national and local regulation or laws

 The phenomena of spills and leaks can be minimized by the installation of

the curbs and impervious containment area. The containment area should be

designed and constructed of impermeable material such as concrete, synthetic

linear or compacted clay. Besides that, the total volume of the containment is

adequate to handle a worst-case release of chemicals. For storage tank, the

capacity of the containment area is generally the volume of the large storage tank in

the dam area. The design of the curbing should also provide an allowance for

accumulated rainfall or water used control fire.

Pumps, piping and equipment are designed to operate within potential areas

should be compatible and free of potential ignition source. Besides that, all the

pumps and ancillary equipment should be provided with curbing to collect drips,

leaks and minor spills. Any discharging occurs should be dilute with copious

quantities of water to reduce the fire and explosion hazard. Fire fighting foam also

applies in the spill and leak area to minimize potential fire hazard from vaporization

of the raw material and products. The other alternative depending on the volume

and location of the spill area, it can be removed by using vacuum truck or absorbed

with solid sorbent and placed in drums for disposal.

All the power equipment used in cleanup must meet appropriate electrical

safety codes for areas where flammable liquids and vapors are present. The use of

water for cleanup should minimize but residual chemicals flushes with water into a

sump or collection area for subsequent treatment or disposal.

Source:Daniel A.Crowl/Joseph F. louver, Chemical Process Safety, fundamental

with application.​
4.3.2 Potential Impact of Accidental Chemical Spills/Leaks and Gas/Vapors

Cloud Release

These include possible leaks or spills of raw materials during handling and transport

of raw materials, product during storage, from pipelines and during chemical

processing. The main chemicals involved would be ethylene, carbon monoxide,

hydrogen, n-propanol and also by-products.

The n-propanol and by-products which form as a liquid phase are stored in

large covered atmosphere tanks in internal floating roof at the port storage area and

in smaller similar tanks at the plant site. On the other hand, the raw materials which

are ethylene, carbon monoxide and hydrogen are in the gaseous phase. The liquid

and gaseous products or reactants are transport through underground pipelines.

The major chemical hazards are chemicals spills. These hazards caused by:

• Rupture of pipelines and Instrument failures.

• Rupture of the storage tanks

• Storage tank failure

• Rupture of pressurized storage tanks.

Source:Daniel A.Crowl/Joseph F. louver, Chemical Process Safety, fundamental

with application.

4.3.3 Waste Handling and Storage

The workers which involves must be thoroughly trained, suitably protected and
familiar with all relevant information and legislative requirements to manage

handling, storage, transportation and disposal of hazardous wastes. In addition,

specific requirement regarding the storage of hazardous waste should be contained

in the operating permits and national or local regulation. In particular, there should

have separate areas designed so that any spillage of waste is collected. The person

who is handling chemical waste must wear personal protective equipment. Carefully

vent any internal pressure before removing closure and isolate, vent, drain, wash

and purge systems or equipment before made maintenance or repair.

4.3.4 Waste Treatment and Disposal

Environment Quality Act 1974 (Act 127) is an Act related to the prevention,

abatement, control of pollution and enhancement of the environment and purposes

connected therewith. This Act also required implementation waste treatment and

disposal under Environment Quality (Scheduled Wastes) regulation 1989.

n-propanol can be removed from waste water by biodegradation. Removal

of the compound from waste water by reverse osmosis may be successful,

depending on the type of membrane. Generally, wastes may burn in on-site as fuel

energy recovery. Hydrocarbon liquid contains DPE, ethane and propyl propionate,

and propanal which have low flash point can be disposed by using incinerator

reactor. That also directly produces heat as the energy recovery.