Concept: Process Analysis by Mathematical Modeling Context: Process Economics of Selling Potable Water Defining Question: How do capital costs differ from operating costs? Read Chapter 3, pp. 152-156. Process Economics, cont’d Lecture 17 will cover the same concepts, but in a different context. EngrD 2190 – Lecture 16
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Concept: Process Analysis by Mathematical Modeling
Context: Process Economics of Selling Potable Water
Defining Question: How do capital costs differ from operating costs?
Read Chapter 3, pp. 152-156. Process Economics, cont’dLecture 17 will cover the same concepts, but in a different context.
EngrD 2190 – Lecture 16
Calculation Sessions this week:Spreadsheets for Mass Balances with Economic Analysis.Bring a charged laptop with Excel installed and the Solver routine installed.Need a loaner laptop? Contact tmd10 by today at 5 p.m.Try Mass Balance tutorial on pp. 182-186 of textbook.
Homework Teams:Peer Evaluations and New Team Questionnaires Due Friday 10/8.May be submitted in Calculation Session.New Teams to be announced Friday 10/15.
Want to remain with your present team? If so EVERY team membermust send e-mail FROM THEIR CORNELL NetID [email protected] by Friday 10/8 at noon.
Want to request a team? If so EVERY team member must send e-mailFROM THEIR CORNELL NetID to [email protected] by Friday10/8 at noon. Requested team must have no pairs from present teams.
CEO of Fidelity Investments 1983-87.2 trillion $ in assets.
Sold SmartCells to Merck in 2010for $500,000,000.
Flowsheet of U.S. Economy
Process Economics: A formalism for calculating the finances of producing and selling a chemical product.
Analysis of asset flows
Asset Balances (Figure 3.58, p. 145)
yourcompany
$ $
reactants products
electricity labor intellectualproperty
Compare to Energy Balances Every stream hasinherent energy.
Every stream hasinherent assets.
Use thermodynamicsto convert toconserved quantity:energy (in units of Joules).
Use economicsto convert toconserved quantity:assets (in units of $).
The Conservation of Assets
Eqn 3.190, p. 145
profit revenue operating costs Eqn 3.191, p. 146
Units of ‘assets’ are $. Units of ‘rate of assets’ are $/year.
Units of ‘profit,’ ‘revenue,’ and ‘operating costs’ are $/year.
Not Steady State. We want d(assets)/dt profit > 0.
consumed) assets rateout assets of rate(created assets ratein assets of rate)assets(
dtd
The Conservation of Assets
Are assets truly conserved, like mass and energy?
Mass and energy are defined by laws of nature. Assets are defined by economics.
The conservation of energy initially related two forms of energy: potential ( mgh) and kinetic ( ½mv2). Leibnitz 1669
When experiments showed potential energy could be converted to thermal energy,a new term was added: thermal energy ( mCP(T))
Each time conservation of energy appeared to be violated, a new term was added.phase change energy ( m(Hphase))
chemical reaction energy ( m(Hreaction))
nuclear energy ( mc2)
pressure energy ( PV)
orgone energy Wilhem Reich 1930s
Example 1. You win a desalinator in a raffle.to potablewatersupply
to agricultural usereturn to sea
6
watermelter2°C7 8
wet ice: ice water (3.0 wt%)
5brine: salt (0.50 wt%) H2O
icewasher
0°C
solid-liquidseparator2°C
water
4
wet ice: ice brine (3.0 wt%)
100. kg/min
seawater: salt (3.5 wt%) water
slusher2°C
1 2
slush: ice brine
3brine: salt (12 wt%) H2O
Figure 3.7, p. 96
100,000 gal/day
265,000 gal/day
489,000 gal/day
Must convert gal/day to $/year. Economics provides the conversion factors.
14$/1000 gal
3$/1000 gal
Free!
Desalinator operates 24 hours/day, 365 days/year.
$/year175,801year
days production365day production
$795day production
$1400
gal1000$.3
day production wateralagricultur gal000,265
gal1000$.14
day production waterpotable gal000,100revenue
Eqn 3.193, p. 146
Note!
Example 1, cont’d. You win a desalinator in a raffle.