Internutional Jourrlal of Production Economics, 29 (1993) 303-312 303

Elsevier

Estimation of the installed cost of heat exchanger networks

K. Suaysompol” and R.M. Woodb

a ESSO Standard Thailand Ltd., Bangkok, Thailand
b School qf’ Chemical Enginewing & Industrial Chemistry, Unicersity of’ New South Wales, Kensington, Austrulia

(Received 17 July 1992; accepted in revised form 19 October 1992)

Abstract

Much progress has been made in the development of synthesis methods for heat exchanger networks through the use of
targeting procedures. Such advances include the development of pinch technology, the application of mathematical program-
ming techniques and the use of the A* heuristic search procedure based on artificial intelligence by the present authors.
Networks of substantially different topologies can be produced by the alternative synthesis procedures, but the methods used
for cost estimation typically rely heavily on a simple area exponent calculation. As substantial capital costs are incurred for
piping a simplified method is proposed which does allow for piping costs and so may be used to discriminate more accurately
between alternative networks. The use of this procedure is illustrated by using some networks from published problems.

1. Introduction area of a unit only increases the capital cost by

Targeting energy, heat transfer area and the
number of shells has enabled capital cost, op-
erating cost and the total cost (e.g. annual
operating cost due to the consumption of utili-
ties such as steam and cooling water, together
with the capital charges on an annual basis) of
heat exchanger networks to be predicted. As
a result the trade-off between capital and oper-
ating costs can be performed prior to design,
so as to determine the optimal minimum ap-
proach temperature and utility consumption
(see e.g. Ref Cl]). In such work there is little
uncertainty about the annual utility costs, but
the predicted network capital costs are estim-
ated from the predicted mean area of a heat
exchanger unit or shell. (The target area/target
number of units or shells). The exchanger costs
are then usually calculated from simple equa-
tions involving an area to an exponent. If the
exponent is 0.6 for example, then doubling the
Correspondence to: K. Suaysompol, ESSO Standard Thai-
land Ltd., 1016 Rama 4 Road Bangkok 10500, Thailand.
50%. Therefore the form of this relationship
means that for a given total area, networks
with exchangers having a wide variation in
area will have lower capital costs than those
with the area distributed more evenly. The
actual capital cost is also influenced by the
network topology as this will influence the cost
of pipework. Network topology as well as the
distribution of areas and shells among the ex-
pected number of units are all unknown prior
to an actual design. As a result several net-
works need to be generated, not only for oper-
ability and other practical considerations, but
also for evaluation of network costs. An altern-
ative network cost estimation procedure is
proposed here, which it is believed would be
useful for reducing the number of alternatives
which would otherwise need to be screened.
The use of this procedure is illustrated for two
literature examples, for which several net-
works having widely different topologies have
been published.

09255273/93/$06.00 0 1993 Elsevier Science Publishers B.V. All rights reserved.

304 K. Sutr~~~r~~pol,R.M. ~ood.!E.stimcltiorl of’ the installed cost 01‘ HEN

2. Network cost estimation model available pipe sizes.

In practice, simpler heat exchanger network

(HEN) designs (i.e. having fewer matches CPI,
Dk = 2 x lo6 (&HSuCS}. (1)
(units) and/or shells) will have a lower installed 71fk vkcp,
cost even if some additional heat transfer
area is required. The conventional cost Based on typical oil refinery situations, the
estimation methods assume that capital average on-site equipment spacing between
costs are determined by heat transfer area two heat exchanger units in different services is
alone. Cost capacity exponents in the range 7 m. The actual pipe length (L) is approxim-
0.44-0.95 are quoted in the literature 121. ately four times the on-site equipment spacing.
A lower exponent will favour simpler This length accounts for the average piping
networks as area will be concentrated into required by each exchanger (which is addi-
fewer units. However, it is an oversimplifi- tional to other pipe runs associated with pro-
cation to base capital costs on such a simple cess streams).
method. The purchased equipment costs, as obtained
A more realistic cost estimation method is above, together with the installation factors for
developed and proposed to reflect the heat exchangers (F,) proposed by Guthrie [3]
complexity of HENS structure. This method are used to estimate the installed equipment
takes piping, instrumentation, foundations, costs. The details of these installation factors
control, and other associated facilities into using a modular approach are listed in Table 2.
consideration and is based on the factor The installed network cost (C”) correlation
method of Guthrie 131. The cost correlation based on number of shells which seeks to
can be updated by using the Marshall and reflect network complexity is presented in
Swift (M&S) equipment cost index published Eq. (2).
monthly in Chemical Engineering. For this
work the year 1988 (M&S = 852.0) was
chosen.
The purchased equipment cost of shell and
tube exchangers as a function of area was

1
obtained from Peters and Timmerhaus [4]. M&S
+ O.O4F, ~ (LiD!‘33 + Lj,~‘“‘) , (2)
This has a cost-capacity exponent of 0.55 and i 1000.0 >
is based on carbon steel costs in 1979
(M&S = 599.4). Current cost data suggests Where Aij and Nij denote the total heat trans-
that if the costs are escalated from 1979 fer area and number of shells of the match
to 1988, relative cost comparisons will be between hot stream i and cold streamj satisfy-
acceptable. ing the following conditions (10 < (Aij/Nij)
The purchased piping cost as a function of < 500}, and (25 <Dk < 610). Li and Lj are the
diameter was obtained from Holland et al. [S].
This correlation having a cost-capacity expo-
nent of 1.33 is based on carbon steel with M&S Table 1
at 1000.0. Typical pipe velocities and allowable Typical fluid physical properties [7]
pressure drops are used to estimate pipe
Fluid
diameters. For average hydrocarbon liquids,
Simpson [6] recommended an optimum pipe
velocity (I/) of 3.0 m/s. By using Eq. (1) with Paraflins 800 2239
fluid physical properties from Table 1, the pipe Oils 800 2880
Heat transfer fluid 800 2880
diameters for hot and cold streams can be Cooling water 1000 4176
obtained and then selected from commercially
 K. Suaysompol, R.M. Wood/Estimation qf the installed cost c?fHEN 305

Table 2
Field installation costs (Guthrie [3])

Details of cost break down Heat transfer equipment shell & tube heat
exchanger

FOB Equipment 1.oo

Concrete 0.05
Steel 0.03
Instruments 0.10
Electrical 0.02
Insulation 0.05
Paint
Total material (M) 1.25
Erection & Setting (L) 0.63
Total direct M&L factor 1.88
Freight, insurance, taxes, engineering 0.08
Overhead or field expense 0.95
Total indirect factor 1.03
Total module factor (exci. piping) 2.91
Total module factor (incl. piping) 3.31

a Factors for individual items are based on carbon steel material.

pipe-lengths for hot stream i and cold stream (Cl, c2,. . . .) exchange heat from hot streams
j respectively, for matches between these to cold utilities (e.g. cooling water). Heaters
streams (Aij> 0). (Hl, H2,.... (not required here)) transfer heat
The value of F, excluding piping is 2.91 as from a hot utility (e.g. steam) to a cold stream.
suggested by Guthrie [3]. Holland et al. [S] Temperatures are shown for all hot and cold
streams on the grid diagrams and the ex-
recommended that the installation factor for
changer loads Q are shown beneath the ex-
piping (F,) equals 13.0 times the purchased
changers and coolers:
piping cost, which is consistent with IChemE
[S] cost data. The conventional installed Q = CPAT, (3)
equipment cost correlations based on units or
shells (C: or Cf) could be obtained from Eq. Three designs [9, lo] were obtained using
(2) with F, set to zero and F, equal to 3.37. Algorithmic Design Methods (ADMs) based
on mathematical programming and the fourth
[l l] by the Flexible Pinch Design Method
(FPDM) as incorporated into the computer
3. Network case studies
program FLEXNET. The ADMs use network
superstructures which incorporate many alter-
3.1. Case Study I
native designs. Mathematical programming
This is a four stream problem and four dif- techniques then seek an optimal design struc-
ferent designs are shown in Figs. l-4. These ture from the superstructures and optimise the
network designs are shown in the grid format design parameters. Sometimes the ADMs pro-
for heat exchanger networks. The streams be- duce networks having an unusual structure
ing cooled (hot streams) are at the top of the such as that of Fig. 2. Although this is the
diagrams and flow from left to right, with the simplest network in having the fewest ex-
cold streams flowing from right to left. Each changer units (four), this network requires the
exchanger (El, E2,. . . .) achieves heat transfer complex bypassing and mixing structure for
from a hot stream to a cold stream. Coolers hot stream 1. The FPDM uses a step by step
306 K. Suuysompol, R.M. WoodlEstinzcltion of the installrd cost of HEN

1.CO

I.CO 20.00

l.GO
a d
2400
‘,
00 r-

L-l
2 10.00

Fig. I. Algorithmic design using DICOPT+ + for case study I (Vishwanathan and Grossmann [9]).

Cl’
82 kW/C

GO
400 30.00

1.GO 15.00

1.60 20.00

140 no --
I.GO 10.00
(. -
2x0

Fig. 2. Algorithmic design using MAGNETS for case study 1 (Yee and Grossmann [lo]).

method based on heuristic rules for network work Heat Recovery Approach Temperature
development, and is guided by the A* heuristic (HRAT) of 56°C (i.e. a network cannot be
search procedure. designed in which all the exchangers have min-
All designs achieved the same energy recov- imum approach temperatures exceeding
ery of 4.7 MW which corresponds to the net- HRAT). The matches are for counter-current
 K. Suaysompol, R.M. Wood/Estimation of the installed cost of HEN 307

Cl’
klI/C

I.60 15.00

l.GO 20.00

.lO.OO

2400

Fig. 3. Algorthmic design using MINLP for case study 1 (Yee and Grossman [lo]).

h CI’
kH/m2C kW/C

1 .GO 30.00

I .GO 15.00

1.60 20.00

I .GO 40.00

2400

Fig. 4. Flexible pinch design using FLEXNET for case study 1 (Suaysompol and Wood [l 11).

exchangers and each unit corresponds to on units (C:) and cost based on Eq. (2) (CN) as
a single heat exchanger shell. Details of the well as the minimum temperature difference
designs are summarised in Table 3 which pres- between a hot stream and a cold stream at
ents the network number of units (IV:), and either the hot or cold side of an exchanger
shells (Nr), heat transfer area (AN), cost based (EMAT). (The parameters in Eq. (2) were
308 K. Suaysompol, R.M. Wood!Estimution of‘ the installed cost of‘ HEN

Table 3
Design and cost comparisons for case study I

Case Unit Target ADM ADM ADM FPDM

1 7 3 4

EMAT c 5.6 2.7 1.8 2.6 5.6

Unit 4 5 4 5 6
Unit 0 +I 0 +1 +Z
Shell 4 5 4 5 6
Shell 0 +1 0 +1 f2
mz 471 524 593 562 475
%, 0 +9 + 23 + 17 +1
k$ 698 722 720 729 730
“/o 0 +3 +3 +4 +4
k$ 782 764 802 820
% +2 0 +5 f7

scaled so as to give similar network costs 1, which is shown in Fig. 2 as having no direct
(CN) to those obtained from the data used in contact to an exchanger.
the original publications.) The target items
(see e.g. Linnhoff and Ahmad [l] for the net-
work can be calculated from the stream data
3.2. Case study 2
(i.e. inlet and outlet temperatures, mass
flowrates and heat capacities) and these targets Data for a crude oil distillation preheat train
are independent of any designs. E.g. the num- has been used to generate the four networks
ber of units target is one less than the sum of presented in Figs. 5-8, details of which are
the hot, cold and utility streams in the summarised in Table 4. These designs were
network. obtained by the following four different pro-
As seen from Table 3 the three algorithmic cedures.
designs have values for the Exchanger Min- (1) The HEXTRAN computer program which
imum Approach Temperature (EMAT) which uses the Dual Approach Temperature De-
are below HRAT. However FLEXNET chose sign Method (DATDM).
a design for which HRAT = EMAT and this (2) The Pseudo-Pinch Design Method
design is the same as that obtained from the (PPDM).
Pinch Design Method (PDM) [12]. Although (3) FPDM (hand design)
there are variations in the numbers of units (4) FLEXNET (Computer version of the
and network areas, the network costs (Cr) FPDM).
based on shells (units) and areas are all virtu- All designs achieve the same energy recovery
ally the same. However when piping costs are of 65 MW (based on HRAT of 40°C) and the
also included (CN) the simplest design has the target temperature for stream 2 represents the
lowest cost and there is now probably a signi- fired heater inlet temperature. This heater is an
ficant difference, between the cost of case 2 and equipment item common to all designs and the
that of the design produced by FLEXNET. cost cannot be estimated using Eq. (2) (which
However the piping costs for the designs in is not suitable for fired equipment) therefore
Fig. 1 and 2 do not contain items for the the heater has been omitted. All designs have
control equipment required to regulate the shell and tube (l-2) exchangers for which the
split streams. Furthermore Eq. (2) only con- minimum log mean temperature difference
tains costs for piping connected to exchanger correction factor is 0.75. Since all designs have
units and does not allow for the part of stream the same total cold utility duty for the coolers,
 K. Suaysompol, R.M. Wood/Estimation of the installed cost of HEN 309

h Cl’ T
MH/ru2C MN/C c

23l
0.0015 0.0533 3(,

0.0459 (,
207
0.002 I 0.2157, (2

0.0018

0.0023

O.OOiG

O.OOOG

107
0.0029 *

0.0013

12.7 2.2 3.7 4.2 2.1 1.4 11.8 8.7 I.0 4.7 9.4

Fig. 5. Dual approach temperature design using HEXTRAN for case study 2 (O’Neill et al. [13]).

T
C

93
234
0.0015 0.0533
50
0.0459
41
2.0
207
0.002 I 0.2.157
142

203
0.0016 0.0535
113
0.04G3
42

270
0.0023 0.2052
191

20G
0.0070 0.1402 199

248
0.0006 0.1209
I I5

I(35
0.1455
107

20
0.0013 0.2744
106
0.3071
15G
12.9 8.3 1.0 1.7 18.0 9.8 7.0 0.5 0.3074
213

Fig. 6. Pseudo pinch design for case study 2 (O’Neill et al. [13]).
 310 K. Suaysompol, R.M. WoodfEstimution of the installed cost of‘ HEN

11
hlH/IIl2C

0.0015
c-l
L
23’

412
207 142
0.002 I

0.001a

0.0023

206
0.0076

0.0000 ES

0.0029

0.0013

17.8 18.0 1.0

T 12.9 6.0 0.1

Fig. 7. Flexible pinch design for case study 2 (Suaysompol and Wood [14]).

h
un/n12c

0.0015

0.002 I

0.001 G

0.0029

Fig. 8. Flexible pinch design using FLEXNET for case study 2 (Suaysompol and Wood [ll]).
 K. Suaysompol, R.M. Wood/Estimation qf the installed cost qf HEN 311

Table 4
Design and cost comparisons for case study 2

Case Unit Target DATDM PPDM FPDM FPDM

1 2 3 4

EMAT -C 40.0 31.2 30.0 22.3 9.0

NGJ Unit 8 14 11 8 10
AN; Unit 0 +6 +3 0 +2
N,N Shell 12 15 12 12 13
AN: Shell 0 +3 0 0 +l
AN m2 1927 2359 2252 2476 2231
AAN % 0 + 22 + 17 + 28 + 16
C,” k$ 248 281 256 273 264
AC! 0 + 13 +3 + 10 +6
CN ; 372 326 321 329
ACN % _ + 16 +2 0 f2

they may be fairly compared on the basis of cost. It would be of interest to develop this
network capital costs. procedure further with more recent cost data.
As seen from Table 4, the values for EMAT
are all lower than the value for HRAT of 40°C.
The numbers of units (Nr) and shells (NY) vary
considerably and there is a variation of f 5% Nomenclature
in network areas (AN).
For a network capital cost based on shells AN Network surface area (m2),
and area Cr, the design achieved by the A Heat exchanger surface area (m2),
PPDM is a clear leader. However when piping Network cost using Eq. (2) ($),
costs are also considered the ranking position g Network cost based on shells ($),
of the simplest network (FPDM) improves Cb Network cost based on units ($),
very considerably. Thus although it has the CP Heat capacity flowrate-stream mass
highest area of all four designs, this is more flowrate x Heat capacity (MW/“C),
than compensated by the outstanding simpli- C, Heat capacity (J/kg”C)
city of the design, which achieves the units cs Set of cold streams (member j and k),
target of eight. D Pipe diameter (mm),
EMAT Exchanger minimum approach tem-
perature in the network (EMAT
4. Conclusions < HRAT) (“C),
FP_ Factor for exchanger installation
A new procedure for evaluating the capital cost,
cost of heat exchanger networks has been de- F, Factor for piping installation cost,
sribed, which includes an estimate of the extra h Heat transfer coefficient for stream
piping costs determined by the network topo- (kW/m2’C),
logy. Results from two case studies indicate HRAT Heat recovery approach temperature
that the use of this procedure can significantly for the utility consumption of the net-
change the ranking of alternative networks work (“C),
compared to conventional cost estimates HS Set of hot streams (member i and k),
based on area and shells alone. In both cases L Pipe length (m),
networks having the minimum or close to the M&S Marshall and Swift equipment cost
minimum number of units have the lowest index,
312 K. Suaysompol, R.M. Wood/Estimation of the instal/ed cost of HEN

N Number of shells or unit (one) for
a heat exchanger unit (match),
N,N Number of shells in a heat exchanger
network,
Nf; Number of units in a heat exchanger
network,
Q Exchanger heat load (MW),
T Stream temperature (“C),
V Velocity (m/s),
P Density (kg/m3).
Note added in proof
An alternative method for HEN synthesis in-
cluding costing (recently noted by the authors)
has been proposed by Zhelev and Markov [ 151.
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