Research Economics: Green Ethylene from Ethanol

• 1. Green Ethylene from Ethanol

2. #REC001B Research Economics Green Ethylene from Ethanol 2013Abstract One of the most important petroleum-derived products, ethylene is known as a key building block for the petrochemical industry. Ethylene is most frequently produced via steam cracking of petroleum-based feedstock. Rising oil prices coupled with global concerns about sustainability and global warming have motivated research into ethylene manufacture from renewable sources. Renewable-based or green chemicals products are slowly emerging and entering the market. Ethylene made from ethanol (from corn, sugarcane or lignocellulosic biomass) presents the primary advantage of being made from CO2 removed from the atmosphere, reducing greenhouse gas lifetime emissions from the ethylene manufacture process as well as dependence of the chemical industry on fossil-fuels. This study presents an assessment of the economic potential of research involving a process for the production of ethylene via ethanol dehydration, similar to the one suggested by BP Chemicals in a patent application. Included in the analysis is a technical overview of the proposed process, presenting description, flow diagrams and material balance. Based on BP Chemicals patent data, the process was simulated and served as the basis for estimating both the capital investment and the operating costs of a commercial scale plant based on this emerging process. In addition, a sensitivity analysis was performed to evaluate the impact of key technical aspects and economic variables on capital and operating expenses. The analysis assesses the effects of variations in raw material and utility prices, reaction conversions, and the formation of undesired by-products on the economic performance of the process. The economic analysis presented in the study is based on a plant producing 190 kta of polymer grade ethylene. The estimated total capital expenditure (CAPEX) for such a plant on the US Gulf Coast is about USD 230 million. The analysis performed indicates that a green ethylene plant relying on the process suggested by BP Chemicals must be able to sell the product at a price of about USD 1,700 per metric ton in order to become a profitable venture. This means that eco-friendly ethylene must be valued at a premium about 40% higher than that of fossil-based ethylene.Copyrights 2013 by Intratec Solutions LLC. All rights reserved. Printed in the United States of America. 3. This Publication Was Not a Publication It was actually an advisory service ordered by one of our clients, now disclosed to our readership with his consent.How Readers Benefit? 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Check Intratecs Related Study Opportunities Clearly identify the economics behind leading companies technology development efforts and the feasibility of emerging and commercial chemical processes is the first step for major investment decisions and planning activities. Keep you and your organization well informed by understanding in an unbiased manner: 1) The Research Economics potential behind BP Chemical Bets on Reactive Distillation to Reduce Ethanol Dehydration Plants Capital Costs, 2) The Improvement Economics proposed by IFP and Total Chemical to Save Energy on Traditional Ethylene-to-Ethanol Dehydration Units, 3) The Technology Economics behind Chematur and Petron Ethanol Dehydration Processes, 4) The Technology Economics of Braskems Green Ethylene Production from Ethanol, 5) The Research Economics behind Dow Chemicals possible Ethanol Dehydration Technology, 6) The Technology Economics hidden on Scientific Design Approach to Produce Ethylene Glycol from Bio-Ethanol, Or any other topic of your interest. The last appendix of this study presents in more details the opportunities listed above. 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Contents About this Study...................................................................................................................................................................8 Object of Study.....................................................................................................................................................................................................................8 Analyses Performed ...........................................................................................................................................................................................................8 Study Bases..............................................................................................................................................................................................................................9 Design Bases .....................................................................................................................................................................................................................................9 Economic Basis ................................................................................................................................................................................................................................9Technical Analysis ............................................................................................................................................................. 10 Product ...................................................................................................................................................................................................................................10 Chemistry ..............................................................................................................................................................................................................................10 Raw Material ........................................................................................................................................................................................................................11 Technology Overview ...................................................................................................................................................................................................11 Process Description & Estimated Conceptual Flow Diagram...............................................................................................................12 Area 100: Treatment.................................................................................................................................................................................................................. 12 Area 200: Reaction...................................................................................................................................................................................................................... 12 Area 300: Purification................................................................................................................................................................................................................ 12 Process Performance ................................................................................................................................................................................................................ 13ISBL Major Equipment List ..........................................................................................................................................................................................16 OSBL Major Equipment List .......................................................................................................................................................................................18 Technical Bases & Assumptions ..............................................................................................................................................................................19Bibliographic Review ....................................................................................................................................................... 20 Main Reference..................................................................................................................................................................................................................20 Complementary References......................................................................................................................................................................................21 Extra References................................................................................................................................................................................................................21 Related Publications History......................................................................................................................................................................................21 List of Patents & Articles ...............................................................................................................................................................................................22Economic Analysis ............................................................................................................................................................ 23 Capital Expenditures.......................................................................................................................................................................................................23 Fixed Investment......................................................................................................................................................................................................................... 23 Working Capital............................................................................................................................................................................................................................ 24 Other Capital Expenses ........................................................................................................................................................................................................... 24 Total Capital Expenses ............................................................................................................................................................................................................. 25 2 8. Operational Expenditures ...........................................................................................................................................................................................25 Manufacturing Costs................................................................................................................................................................................................................. 25Economic Datasheet ......................................................................................................................................................................................................25Sensitivity Analysis & Remarks ..................................................................................................................................... 27 Sensitivity Analysis...........................................................................................................................................................................................................27 Plant Capacity and Prices Variation..................................................................................................................................................................................27 Technical Parameters Variation..........................................................................................................................................................................................28 Profitability Sensitivity .............................................................................................................................................................................................................. 31Remarks ..................................................................................................................................................................................................................................32Acronyms, Legends & Observations .......................................................................................................................... 33 Research Economics Methodology............................................................................................................................ 34 Introduction.........................................................................................................................................................................................................................34 Workflow................................................................................................................................................................................................................................34 Capital & Operating Cost Estimates......................................................................................................................................................................36 ISBL Investment............................................................................................................................................................................................................................ 36 OSBL Investment......................................................................................................................................................................................................................... 36 Working Capital............................................................................................................................................................................................................................ 37 Other Capital Expenses ........................................................................................................................................................................................................... 37 Manufacturing Costs................................................................................................................................................................................................................. 38Contingencies ....................................................................................................................................................................................................................38 Accuracy of Economic Estimates............................................................................................................................................................................39Appendix A. Mass Balance & Streams Properties.................................................................................................. 40 Appendix B. Utilities Consumptions Breakdown .................................................................................................. 42 Appendix C. Carbon Footprint..................................................................................................................................... 43 Appendix D. Pilot Plant Construction........................................................................................................................ 44 Appendix E. Detailed Capital Expenses .................................................................................................................... 45 Direct Costs Breakdown ...............................................................................................................................................................................................45 Indirect Costs Breakdown ...........................................................................................................................................................................................46Appendix F. Economic Assumptions ......................................................................................................................... 47 Capital Expenditures.......................................................................................................................................................................................................47 Working Capital............................................................................................................................................................................................................................ 47 Other Capital Expenses ........................................................................................................................................................................................................... 473 9. Operational Expenditures ...........................................................................................................................................................................................47 Historical Prices for Ethanol........................................................................................................................................................................................48Appendix G. Released Publications............................................................................................................................ 49 Appendix H. Research Economics Form Submitted by Client ......................................................................... 50 Appendix I. Related Study Opportunities ................................................................................................................ 534 10. List of Tables Table 1 Design Bases.......................................................................................................................................................................................................................9 Table 2 Storage and Utility Assumptions..........................................................................................................................................................................9 Table 3 Fixed Investment and Pricing Basis ....................................................................................................................................................................9 Table 4 Major Ethylene Uses..................................................................................................................................................................................................10 Table 5 Raw Materials & Utilities Consumption (per ton of Product)...........................................................................................................13 Table 6 Labor Requirements...................................................................................................................................................................................................13 Table 7 Main Streams Operating Conditions and Composition .....................................................................................................................16 Table 8 Inside Battery Limits Major Equipment List ................................................................................................................................................16 Table 9 Outside Battery Limits Major Equipment List............................................................................................................................................18 Table 10 Technical Bases..........................................................................................................................................................................................................19 Table 11 - Design Assumptions Adopted..........................................................................................................................................................................19 Table 12 General Assumptions.............................................................................................................................................................................................23 Table 13 Bare Equipment Cost per Area (USD Thousands)................................................................................................................................23 Table 14 Total Fixed Investment Breakdown (USD Thousands)......................................................................................................................24 Table 15 Working Capital (USD Million)..........................................................................................................................................................................24 Table 16 Other Capital Expenses (USD Million)..........................................................................................................................................................25 Table 17 CAPEX (USD Million)...............................................................................................................................................................................................25 Table 18 Manufacturing Fixed Cost (USD/ton) ..........................................................................................................................................................25 Table 19 Manufacturing Variable Cost (USD/ton) ....................................................................................................................................................25 Table 20 OPEX (USD/ton).........................................................................................................................................................................................................25 Table 21 Research Economics Datasheet: Green Ethylene from Ethanol Dehydration....................................................................26 Table 22 Basis for By-Products Formation Sensitivity.............................................................................................................................................29 Table 23 Financial Assumptions..........................................................................................................................................................................................31 Table 24 Project Contingency...............................................................................................................................................................................................38 Table 25 Complexity Criteria Description......................................................................................................................................................................38 Table 26 Accuracy of Economic Estimates ...................................................................................................................................................................39 Table 27 Detailed Material Balance and Stream Properties................................................................................................................................40 Table 28 Utilities Consumption Breakdown.................................................................................................................................................................42 Table 29 Assumptions for CO2e Emissions Calculation........................................................................................................................................43 Table 30 CO2e Emissions (ton/ton prod.)......................................................................................................................................................................43 Table 31 Pilot Plant Construction Information ...........................................................................................................................................................44 Table 32 Pilot Plant Construction Cost (USD Thousands) ...................................................................................................................................44 5 11. Table 33 Indirect Costs Breakdown ...................................................................................................................................................................................46 Table 34 Working Capital Assumptions..........................................................................................................................................................................47 Table 35 Other Capital Expenses Assumptions..........................................................................................................................................................47 Table 36 Other Fixed Cost Assumptions ........................................................................................................................................................................47 Table 37 Depreciation Value & Assumptions ..............................................................................................................................................................476 12. List of Figures Figure 1 Proposed Configuration to Produce Ethylene from Ethanol Dehydration..............................................................................8 Figure 2 Process Block Flow Diagram ..............................................................................................................................................................................11 Figure 3 Inside Battery Limits Conceptual Process Flow Diagram.................................................................................................................14 Figure 4 Layout Proposed by the Main Reference Used in the Study.........................................................................................................20 Figure 5 Publications in Recent Years..............................................................................................................................................................................22 Figure 6 Plant Capacity Effect on Total Fixed Investment (USD MM) ..........................................................................................................27 Figure 7 Raw Material and Utilities Prices Effects on Manufacturing Costs (USD/Metric Ton of Product)............................27 Figure 8 Ethanol Conversion Effects on Total Fixed Investment (USD MM)............................................................................................28 Figure 9 Ethanol Conversion Effects on Manufacturing Expenses (USD/Metric Ton of Product) ..............................................28 Figure 10 Process Changes Due to By-Products Formation..............................................................................................................................29 Figure 11 By-Products Formation Effects on Total Fixed Investment (USD MM) .................................................................................30 Figure 12 By-Products Formation Effects on Manufacturing Expenses (USD/Metric Ton of Product)....................................30 Figure 13 Internal Rate of Return for Different Pricing Scenarios ...................................................................................................................31 Figure 14 Net Present Value for Different Pricing Scenarios (MM USD) .....................................................................................................32 Figure 15 Methodology Flowchart....................................................................................................................................................................................35 Figure 16 ISBL Direct Costs Breakdown by Equipment Type............................................................................................................................45 Figure 17 OSBL Direct Costs Breakdown by Equipment Type .........................................................................................................................45 Figure 18 Historical Ethanol Prices.....................................................................................................................................................................................487 13. About this Study This study follows the same pattern and is based on the same rigorous methodology and well-defined structure (chapters, type of tables and charts, flow sheets, etc.) as all Research Economics studies developed by Intratec. This chapter summarizes the set of information that served as input to develop the current evaluation. All required data were provided through the completion of the Research Economics Form available at Intratecs website. You may check the original form in the Appendix H. Research Economics Form Submitted by Client.Object of Study This assignment assesses the economic potential of research concerning an exploratory technology used to produce ethylene from ethanol. The process was proposed by BP Chemicals in the US patent 2009/0082605. For more details regarding the references used to support this study, please review the chapter Bibliographic Review. An overview of the technology can be seen in the figure below.Analyses PerformedProcess Synthesis & Design. This involves the synthesis of various process configurations to produce the desired product in a safe, reliable and economic manner. At the end of the synthesis step, the best process configuration analyzed is presented in detail: process description, conceptual process flow diagram, material and energy balance, key process indicators, equipment sizing, etc. Capital Cost Estimation. For a concept to become an operating industrial plant, significant funding must be available to purchase and install equipment. In addition, capital is required to pay the expenses involved in the operation before sales revenue becomes available. This study estimates the entire capital cost required to realize the desired concept. Manufacturing Cost Estimation. Determining the total cost of operating the plant, selling the product, and other corporate expenses is a crucial component of an economic analysis. Product Price Estimation. This is based on the sum of all manufacturing costs, recovery of the capital invested and the anticipated profit margin. The estimated price indicates the minimum product sales price required to make the assessed technology economically attractive.The current study comprises the following analyses:Figure 1 Proposed Configuration to Produce Ethylene from Ethanol DehydrationEthanol and Diethyl Ether RecycleIntratec | About this StudyEthanol8Reaction Step (Ethanol Dehydration)Purification Step (Columns)EthyleneWaterSource: Intratec www.intratec.us 14. Sensitivity Analysis. Evaluation of the key technical and economic variables impact on capital and operating expenses is a vital part of the study. The charts presented in the Sensitivity Analysis & Remarks section help to determine where to focus research and development efforts. The current study measures how capital and/or operating expenses are impacted by the following variables:An investment for the construction of a new chemical plant is greatly impacted by storage and utility assumptions. They are presented in Table 2.Table 2 Storage and Utility Assumptions Storage Capacity Feedstock & Chemicals20 days of operationEnd-products & By-productsPlant production capacity,Not includedRaw material and utility prices,Utility Facilities IncludedAll requiredReaction conversion,Support & Auxiliary Facilitiesmaintenance shops,Control room, labs,Formation of undesired by-products.warehouses Source: Intratec www.intratec.usStudy Bases The current study assesses the technical and economic aspects of a hypothetical industrial plant based on the exploratory technology described above. The plant is located on the US Gulf Coast and produces 190 kta of ethylene. The economic analysis is based on data gathered on Q3 2012.Economic Basis This study considers the economic performance of a plant constructed and operating under the following circumstances.Table 3 Fixed Investment and Pricing BasisDesign Bases The technical analysis is based on rigorous simulation models, which support the design of the chemical process, unit operations, equipment and OSBL facilities. The general design assumptions employed are depicted in Table 1.1.00Relative to US Gulf CoastEthanol800USD/tonCooling Water0.0004USD/m3LP SteamTable 1 Design BasesLocation Factor12.3USD/ton24 CBoiler Feed Water0.01USD/tonCooling Water Range11 CElectricity0.07USD/kWhSteam (Low Pressure)7 Bar absFuel3.5USD/MMBtuSteam (Medium Pressure)11 Bar absOperator Salaries58.6USD/man-hourRefrigerant (Propylene)-45 CSupervisor Salaries88.0USD/man-hourWet Bulb Air Temperature25 CSource: Intratec www.intratec.usSource: Intratec www.intratec.usThe specific assumptions that supported the process synthesis are presented in the Technical Analysis chapter.Intratec | About this StudyCooling Water Temperature9 15. Technical Analysis This chapter covers the main technical aspects of the chemical production process conceived in this study, including the chemistry of the process, raw materials used, a detailed description of the designed process and flow diagrams.Product One of the most important petroleum-derived products, ethylene, is known as the building block of various chemicals. Table 4 presents the main chemicals produced from ethylene and its applications.Table 4 Major Ethylene UsesPolyethylene Ethylene oxide Ethylene glycol Ethylene dichloride Styrene Vinyl acetateEthylene glycol, ethoxylates (non-ionicEthanolEthyleneWaterFormation of ether intermediate can also occur in dehydration reactions:EthanolDiethyl etherWatersurfactants) Poly(ethylene terephthalate), antifreeze Vinyl chloride (monomer for PVC) polystyrene Conversion to poly(vinyl acetate) usedDiethyl etherEthanolEthylenein adhesives and paintsEthylene is most frequently produced via steam cracking of petroleum-based feedstock and from the ethane obtained from natural gas and refinery byproducts. Commercial ethylene is a colorless, low-boiling, flammable, and highly volatile gas. It is traded commercially in polymer grade (min. 99.5% of purity). Intratec | Technical AnalysisEthanol dehydration is an overall endothermic equilibrium reaction carried out in the presence of a catalyst. The following equation shows the direct dehydration reaction of ethanol to ethylene:Films, adhesives, packagingSource: Intratec www.intratec.us10ChemistryThe present study discusses green ethylene production i.e., ethylene produced from renewable sources.High temperatures favor the ethylene, while low temperatures favor production of diethyl ether. High process temperatures also provoke thermal cracking reactions, which generate undesirable by-products such as coke and alkanes. 16. Raw MaterialTechnology OverviewEthanol, or ethyl alcohol [CH3CH2OH], is a volatile, flammable, and colorless liquid (pure form). It is miscible in all proportions with water, ether, acetone, benzene, and some other organic solvents.The process for green ethylene production described in the study consists of three areas: (1) Treatment; (2) Reaction; and (3) Purification. The simplified block flow diagram presented in Figure 2 summarizes the process.Ethanol has been produced by the fermentation of carbohydrates for thousands of years. In the 1930s, low oil prices enabled the production of industrial ethanol through direct and indirect hydration of petroleum-derived ethylene.Fresh ethanol is combined with the recycled ethanol and diethyl ether and sent to the treatment area to remove unwanted by-products such as acetaldehyde and C4 hydrocarbons (primarily butylenes) that are generated in the reaction.The rising cost of crude petroleum has prompted research into the industrial manufacture of ethanol from biomass sources. Ethanol from biomass can be produced by the fermentation of starch (from corn), sugar (from sugarcane) or waste lignocellulosic biomass (such as corn stover or switch grass). The process varies depending on the feedstock used.The treated stream is sent to vapor-phase dehydration reactors containing a heteropolyacid catalyst. In the reactors, ethanol is converted to ethylene.Due to governments programs and technology advances, biomass has become the lowest cost raw material for ethanol production. Currently, ethanol is almost exclusively obtained from biomass and has become a renewable-based chemical. Global concerns about sustainability and global warming have inspired research into the use of renewable ethanol for ethylene manufacture, substituting petroleumderived ethylene.The resultant stream is then sent to the purification area, which comprises a set of distillation columns. In the purification area, the water formed in the dehydration step is removed. The unreacted ethanol and diethyl ether are recycled to the treatment area. The final product is a polymer grade ethylene stream. There is no need for further purification, since the formation of ethane is minimized by the mild reaction conditions.Figure 2 Process Block Flow DiagramEthanol and Diethyl ether RecycleArea 100 TreatmentRemoved Hydrocarbon (to fuel)Source: BP Chemicals patent, Intratec analysisArea 200 ReactionArea 300 PurificationPG EthyleneWaterIntratec | Technical AnalysisEthanol11 17. 12Intratec | Technical Analysis 18. Process Performance Table 5 presents the process key performance indicators (KPI), while Table 6 shows the labor requirements.Table 5 Raw Materials & Utilities Consumption (per ton of Product)Source: Intratec www.intratec.usTable 6 Labor RequirementsIntratec | Technical AnalysisSource: Intratec www.intratec.us13 19. Intratec | Technical AnalysisFigure 3 Inside Battery Limits Conceptual Process Flow Diagram14Source: Intratec www.intratec.us 20. Source: Intratec www.intratec.usIntratec | Technical AnalysisFigure 3 Inside Battery Limits Conceptual Process Flow Diagram (Cont.)15 21. Table 7 presents the main streams composition and operating conditions. For a more complete material balance, see the Appendix A. Mass Balance & Streams Properties.Intratec | Technical AnalysisInformation regarding utilities flow rates is provided in Appendix B. Utilities Consumptions Breakdown.16For further details on greenhouse gas emissions caused by the process, see Appendix C. Carbon Footprint.ISBL Major Equipment List Table 8 shows the equipment list by area. It also presents a brief description and the main materials used. 22. 17Intratec | Technical Analysis 23. OSBL Major Equipment ListIntratec | Technical AnalysisThe OSBL is divided into three main areas: storage (Area 700), energy & water facilities (Area 800), and support & auxiliary facilities (Area 900).18Table 9 shows the list of tanks located in the storage section and the energy facilities required in the construction of the unit. 24. Intratec | Technical AnalysisSource: Intratec Analysis19 25. Bibliographic ReviewIntratec | Bibliographic ReviewFigure 4 Layout Proposed by the Main Reference Used in the Study20Source: US patent 2009/0082605, from BP Chemicals 26. 21Intratec | Bibliographic Review 27. Figure 5 Publications in Recent YearsIntratec | Bibliographic ReviewSource: Intratec www.intratec.us22 28. Economic Analysis The general assumptions used in this economic analysis are outlined below.Capital Expenditures Fixed InvestmentTable 12 General AssumptionsTable 13 shows the bare equipment cost associated with each area of the project.Table 13 Bare Equipment Cost per Area (USD Thousands)Source: Intratec www.intratec.usSource: Intratec www.intratec.usTable 14 details the breakdown of the total fixed investment (TFI) per item (direct & indirect costs and process contingencies). For further information about the components of the TFI, please see the chapter Research Economics Methodology.Appendix E. Detailed Capital Expenses provides a detailed breakdown for the direct expenses, outlining the share of each type of equipment in total. After defining the total direct cost, the TFI is established by adding field indirects, engineering costs, overhead, contract fees and contingencies.Intratec | Economic AnalysisFundamentally, the direct costs are the total direct material and labor costs associated with the equipment (including installation bulks). The total direct cost represents the total bare equipment installed cost.23 29. Working Capital Table 14 Total Fixed Investment Breakdown (USD Thousands)Working capital, described in Table 15, is another significant investment requirement. It is needed to meet the costs of labor; maintenance; purchase, storage, and inventory of field materials; and storage and sales of product(s). Assumptions for working capital calculations are found in Appendix F. Economic Assumptions.Table 15 Working Capital (USD Million)Source: Intratec www.intratec.usOther Capital ExpensesSource: Intratec www.intratec.usIntratec | Economic AnalysisIndirect costs are defined by the American Association of Cost Engineers (AACE) Standard Terminology as those "costs which do not become a final part of the installation but which are required for the orderly completion of the installation."24The indirect project expenses are further detailed in Appendix E. Detailed Capital Expenses. The Outside Battery Limits (OSBL) requirementsstorage and utilities supply facilities significantly impact the capital cost estimates for a new venture. Assumptions regarding the OSBL considered in the analysis are presented in the chapter About this Study.The start-up costs should also be considered in determining the total capital expenses. During this period, expenses are incurred for employee training, initial commercialization costs, manufacturing inefficiencies and unscheduled plant modifications (adjustment of equipment, piping, instruments, etc.). Initial costs are not addressed in most estimation studies but can become a significant expenditure. For instance, the initial catalyst load in reactors may be a significant cost and, in this case, should also be included in the capital estimates. Other capital expenses frequently neglected are land acquisition and site development. Although these represent small percentages of the total capital expenses, they should be included. 30. Total Capital ExpensesEconomic DatasheetTable 17 presents a summary of the total Capital Expenditures (CAPEX) detailed in previous sections.The Research Economics Datasheet, presented in Table 21, is an overall evaluation of the process costs.Table 16 Other Capital Expenses (USD Million)Table 18 Manufacturing Fixed Cost (USD/ton)Source: Intratec www.intratec.usSource: Intratec www.intratec.usTable 19 Manufacturing Variable Cost (USD/ton)Table 17 CAPEX (USD Million)Source: Intratec www.intratec.usOperational Expenditures Manufacturing CostsTable 18 shows the manufacturing fixed cost. To learn more about the assumptions for manufacturing fixed costs, see the Appendix F. Economic Assumptions. Table 19 discloses the manufacturing variable cost breakdown. Table 20 shows the OPEX of the presented process.Source: Intratec www.intratec.usTable 20 OPEX (USD/ton)Source: Intratec www.intratec.usIntratec | Economic AnalysisThe manufacturing costs, also called Operational Expenditures (OPEX), are composed of two elements: a fixed cost and a variable cost. All figures regarding operational costs are presented in USD per ton of product.25 31. 26Intratec | Economic Analysis 32. Sensitivity Analysis & Remarks Sensitivity Analysis In order to evaluate the impact of the uncertainties inherent to exploratory technologies, sensitivity analyses were performed. Key inputs were varied to evaluate their impacts on the Total Fixed Investment and Manufacturing Costs of the process.Plant Capacity and Prices Variation Figure 6 shows the Total Fixed Investment when considering the plant capacity variation. Figure 7 presents the Manufacturing Cost as a function of raw materials and utilities prices. In both charts, the base case evaluated in the study is represented as the zero in x-axis.Figure 6 Plant Capacity Effect on Total Fixed Investment (USD MM)Source: Intratec www.intratec.usSource: Intratec www.intratec.usIntratec | Sensitivity Analysis & RemarksFigure 7 Raw Material and Utilities Prices Effects on Manufacturing Costs (USD/Metric Ton of Product)27 33. Technical Parameters Variation The following parameters were altered to evaluate their impact on Total Fixed Investment and Manufacturing Costs: Ethanol conversion to ethylene; Formation of undesired by-products (carbon monoxide, carbon dioxide, and ethane).Figure 8 Ethanol Conversion Effects on Total Fixed Investment (USD MM)Source: Intratec www.intratec.usIntratec | Sensitivity Analysis & RemarksFigure 9 Ethanol Conversion Effects on Manufacturing Expenses (USD/Metric Ton of Product)28Source: Intratec www.intratec.us 34. Table 22 Basis for By-Products Formation Sensitivity PRODUCT SELECTIVITYBASE(H2O-FREE BASIS, WT%)CASESource: Intratec www.intratec.usSource: Intratec www.intratec.usIntratec | Sensitivity Analysis & RemarksFigure 10 Process Changes Due to By-Products Formation29 35. Figure 11 By-Products Formation Effects on Total Fixed Investment (USD MM)Source: Intratec www.intratec.usIntratec | Sensitivity Analysis & RemarksFigure 12 By-Products Formation Effects on Manufacturing Expenses (USD/Metric Ton of Product)30Source: Intratec www.intratec.us 36. Table 23 Financial AssumptionsSource: Intratec www.intratec.usSource: Intratec www.intratec.usIntratec | Sensitivity Analysis & RemarksFigure 13 Internal Rate of Return for Different Pricing Scenarios31 37. Figure 14 Net Present Value for Different Pricing Scenarios (MM USD)Intratec | Sensitivity Analysis & RemarksSource: Intratec www.intratec.us32 38. Acronyms, Legends & Observations AACE: American Association of Cost EngineersPG: Polymer gradeC: Distillation, stripper, scrubber columns (e.g., C-101 would denote a column tag)R: Reactors, treaters (e.g., R-101 would denote a reactor tag) RF: RefrigerantC2, C3, ... Cn: Hydrocarbons with "n" number of carbon atomsROCE: Return on capital employedC2=, C3=, ... Cn=: Alkenes with "n" number of carbon atomsSB: Steam boilerCAPEX: Capital expendituresT: Tanks (e.g., T-101 would denote a tank tag)CC: Distillation column condenserTFI: Total Fixed InvestmentCG: Chemical gradeTPC: Total process costCK Distillation column compressorV: Horizontal or vertical drums, vessels (e.g., V-101 would denote a vessel tag)CP: Distillation column reflux pump WD: Demineralized water CR: Distillation column reboiler CT: Cooling towerX: Special equipment (e.g., X-101 would denote a special equipment tag)CV: Distillation column accumulator drumObs.: 1 ton = 1 metric ton = 1,000 kgE: Heat exchangers, heaters, coolers, condensers, reboilers (e.g., E-101 would denote a heat exchanger tag) F: Furnaces, fired heaters (e.g., F-101 would denote a furnace tag) IC Index: Intratec Chemical Plant Construction Index IP Indicator: Intratec Chemical Sector Profitability Indicator IRR: Internal Rate of ReturnK: Compressors, blowers, fans (e.g., K-101 would denote a compressor tag) KPI: Key Performance Indicator kta: thousands metric tons per year NPV: Net Present Value OPEX: Operational Expenditures OSBL: Outside battery limits P: Pumps (e.g., P-101 would denote a pump tag)Intratec | Acronyms, Legends & ObservationsISBL: Inside battery limits33 39. Research Economics Methodology Intratec Research Economics methodology ensures an effective analysis of the potential of exploratory and emerging chemical process technologies and enables R&D teams to define where to focus their efforts.Introduction The same general approach is used in the development of all Research Economics assignments. To know more about Intratecs methodology, see Figure 15. While based on the same methodology, all Research Economics studies present uniform analyses with identical structures, containing the same chapters and similar tables and charts. Thus, everyone interested in Intratecs services will know upfront what they will get.Workflow Once the research for the production of the desired chemical is fully defined and understood, Intratec conducts a comprehensive bibliographical review. In this step, patents and articles are searched to complement the limited information inherent to exploratory and emerging technologies.Intratec | Research Economics MethodologyIn the next step, the synthesis activity, information related to the chemical production is converted into a more refined description. Synthesis is difficult because a large number of processes might be considered to accomplish the same goal.34The synthesis and design steps are based on a rigorous steady state process simulation model built using leading commercial process flowsheeting software tools, Aspen Hysys and/or Aspen Plus. Equipment sizing specifications are defined based on Intratec's equipment design capabilities and extensive use of AspenONE Engineering Software Suite that enables the integration between the process simulation developed and equipment design tools. Both equipment sizing and process design are prepared in conformance with generally accepted engineering standards. Then, the economic analysis of the designed process is performed. Intratec estimates capital and operating expenses associated with the chemical production. Equipment costs are primarily estimated using Aspen Process Economic Analyzer (formerly Aspen Icarus) customized models and Intratec's in-house database. Cost correlations and, occasionally, vendor quotes of unique and specialized equipment may also be employed. One of the overall objectives is to establish Class 4 cost estimates1 with a minimum design engineering effort. Subsequently, capital and operating costs are assembled in Microsoft Excel spreadsheets, and an economic analysis of this technology is performed. Finally, alternative process scenarios are evaluated in order to perform a sensitivity analysis to assess the impact of key technical and economic variables on capital and operating expenses.Intratec aims to find the process that will produce the desired product in a reliable, safe, and economical manner with a high yield and minimum by-product or waste. At the end of the synthesis step, the process configuration is selected that best satisfies all goals. The Intratec team simultaneously develops the process description and the conceptual process flow diagram. Additionally, material balance calculations are performed around the process, key process indicators are identified and main equipment listed.1These are estimates that form the basis for budget authorization, appropriation, and/or funding. Accuracy ranges for this class of estimates are + 20% to + 50% on the high side, and - 15 % to - 30 % on the low side. 40. Figure 15 Methodology FlowchartChemical Production Research Understanding Validation of Project InputsPatent and Technical Literature DatabasesBibliographic ReviewProcess Synthesis Analysis of Several Process ConfigurationsAspen Plus, Aspen Hysys Aspen Exchanger Design & Rating, KG Tower, Sulcol and Aspen Energy AnalyzerIntratec Internal Database Final Process Configuration Selection Process Description & Flow Diagram, Key Process Indicators, Equipment Sizing Vendor Quotes Capital Cost (CAPEX) & Operational Cost (OPEX) Estimation Pricing Data Gathering: Raw Materials, Chemicals and UtilitiesAspen Process Economic Analyzer, Aspen Capital Cost Estimator, Aspen InPlant Cost Estimator & Intratec In-House DatabaseEconomic AnalysisProject Development Phases Information Gathering / ToolsSource: Intratec www.intratec.usFinal Review & AdjustmentsIntratec | Research Economics MethodologySensitivity Analysis of Key Technical and Economic Parameters35 41. Capital & Operating Cost Estimates The cost estimate presented in the current study considers a process technology based on a standardized design practice that is typical of a major chemical company. The specific design standards employed can have a significant impact on capital costs. The basis for the capital cost estimate is that the plant is considered to be built in a clear field with a typical large single-line capacity. In comparing the cost estimate hereby presented with an actual project cost or contractor's estimate, the following must be considered:ISBL Investment The ISBL investment includes the fixed capital cost of the main processing units of the plant necessary to the manufacturing of products. The ISBL investment includes the installed cost of the following items: Process equipment (e.g., reactors and vessels, heat exchangers, pumps, compressors, etc.) Process equipment spares Housing for process units Pipes and supports within the main process unitsMinor differences or details (many times, overlooked) between similar processes can significantly affect cost.Instruments, control systems, electrical wires and other hardwareThe research progress can change the process layout and impact both capital and operating costs.Foundations, structures and platforms Insulation, paint and corrosion protectionThe omission of process areas in the design considered may invalidate comparisons with the estimated cost presented. Industrial plants may be overdesigned for particular objectives and situations.In addition to the direct material and labor costs, the ISBL addresses indirect costs, such as construction overheads, including: payroll burdens, field supervision, equipment rentals, tools, field office expenses, temporary facilities, etc.OSBL Investment Rapid fluctuation of equipment or construction costs may invalidate cost estimates. Equipment vendors or engineering companies may provide goods or services below profit margins during economic downturns.Intratec | Research Economics MethodologySpecific locations may impose higher taxes and fees, which can impact costs considerably.36In addition, no matter how much time and effort are devoted to accurately estimating costs, errors may occur due to the aforementioned factors, as well as cost and labor changes, construction problems, weather-related issues, strikes, or other unforeseen situations. This is partially considered in the project contingency. Finally, it must always be remembered that an estimated project cost is not an exact number, but rather is a projection of the probable cost.The OSBL investment accounts for auxiliary items necessary to the functioning of the production unit (ISBL), but which perform a supporting and non-plant-specific role. OSBL items considered may vary from process to process. The OSBL investment could include the installed cost of the following items: Storage and packaging (storage, bagging and a warehouse) for products, feedstocks and by-products Steam units, cooling water and refrigeration systems Process water treating systems and supply pumps Boiler feed water and supply pumps Electrical supply, transformers, and switchgear Auxiliary buildings, including all services and equipment of: maintenance, stores warehouse, laboratory, garages, fire station, change house, cafeteria, medical/safety, administration, etc. 42. General utilities including plant air, instrument air, inert gas, stand-by electrical generator, fire water pumps, etc. Pollution control, organic waste disposal, aqueous waste treating, incinerator and flare systemsWorking Capital For the purposes of this study,2 working capital is defined as the funds, in addition to the fixed investment, that a company must contribute to a project. Those funds must be adequate to get the plant into operation and to meet subsequent obligations.tanks (assumed to be 1 day of manufacturing expenses). Supplies and stores. Parts inventory and minor spare equipment (estimated as a percentage of total maintenance materials costs for both ISBL and OSBL). Cash on hand. An adequate amount of cash on hand to give plant management the necessary flexibility to cover unexpected expenses (estimated as a certain period in days of manufacturing expenses).Other Capital Expenses Research and DevelopmentAccounts receivable. Products and by-products shipped but not paid by the customer; it represents the extended credit given to customers (estimated as a certain period in days of manufacturing expenses plus depreciation). Accounts payable. A credit for accounts payable such as feedstock, catalysts, chemicals, and packaging materials received but not paid to suppliers (estimated as a certain period in days of manufacturing expenses). Product inventory. Products and by-products (if applicable) in storage tanks. The total amount depends on sales flow for each plant, which is directly related to plant conditions of integration to the manufacturing of products derivatives (estimated as a certain period in days of manufacturing expenses plus depreciation, defined by plant integration circumstances). Raw material inventory. Raw materials in storage tanks. The total amount depends on raw material availability, which is directly related to plant conditions of integration to raw material manufacturing (estimated as a certain period in days of raw material delivered costs, defined by plant integration circumstances). In-process inventory. Material contained in pipelines and vessels, except for the material inside the storage 2The accounting definition of working capital (total current assets minus total current liabilities) is applied when considering the entire company.Expenses associated with researches to carry the process through to commercial scale. This portion of capital expenses is difficult to estimate due to the uncertainties surrounding the research phase. A value ranging from 2 to 5% of the total fixed investment is used. Site Development Land acquisition and site preparation, including roads and walkways, parking, railroad sidings, lighting, fencing, sanitary and storm sewers, and communications. Start-up Expenses There are certain one-time expenses related to bringing a process on stream. From the standpoint of time, a variable undefined period exists between the nominal end of construction and the production of quality product in the quantity required. This period is commonly referred to as start-up. During the start-up period, expenses are incurred for operator and maintenance employee training, temporary construction, auxiliary services, testing and adjustment of equipment, piping, and instruments, etc. Our method of estimating start-up expenses consists of four components: Labor component. Represents costs of plant crew training for plant start-up, estimated as a certain number of days of total plant labor costs (operators, supervisors, maintenance personnel and laboratory labor). Commercialization cost. Dependent on raw materials and products negotiation, on how integrated the plant is with feedstock suppliers and consumer facilities, andIntratec | Research Economics MethodologyThe initial amount of working capital is regarded as an investment item. This study uses the following items/assumptions for working capital estimation:37 43. on the maturity of the technology. This ranges from 0.5% to 5% of the annual manufacturing expenses. Start-up inefficiency. Takes into account those operating runs when production cannot be maintained or there are false starts. The start-up inefficiency varies according to the process maturity: 5% for new and unproven processes, 2% for new and proven processes, and 1% for existing licensed processes, based on annual manufacturing expenses.complexity of the process are decisive for its evaluation. Errors that occur may be related to: Uncertainty in process parameters, such as severity of operating conditions and quantity of recycles Addition and integration of new process steps Estimation of costs through scaling factors Off-the-shelf equipmentUnscheduled plant modifications. The risk that the product(s) may not meet specifications required by the market is a key fault that can occur during the start-up of the plant. As a result, equipment modifications or additions may be necesssary.Manufacturing Costs Manufacturing costs do not include post-plant costs, which are very company specific. These consist of sales, general and administrative expenses, packaging, research and development costs, shipping, etc.Hence, process contingency is also a function of the maturity of the technology, and is usually a value between 5% and 25% of the direct costs. The project contingency is largely dependent on the plant complexity and reflects how far the conducted estimation is from the definitive project, which includes, from the engineering point of view, site data, drawings and sketches, suppliers quotations and other specifications. In addition, during construction some constraints are verified, such as: Project errors or incomplete specificationsOperating labor and maintenance costs are estimated subjectively on the basis of the number of major equipment items and similar processes, as noted in the literature. Plant overhead includes all other non-maintenance (labor and materials) and non-operating labor costs for services associated with the product manufacture. Such overheads do not include costs to develop or market the product.Strike, labor costs changes and weather problemsTable 24 Project ContingencyIntratec | Research Economics MethodologyContingencies38Contingency constitutes an addition to capital cost estimations, implemented based on uncertainties that may incur, to some degree, cost increases. According to recommended practice, two kinds of contingencies are assumed and applied to TPC: process contingency and project contingency.ComplexTypicalSimpleProject ContingencyG & A expenses represent general and administrative costs incurred during production such as: administrative salaries/expenses, research & development, product distribution and sales costs.Plant Complexity40%30%25%Source: Intratec www.intratec.usIntratecs definitions related to complexity are presented in the following:Table 25 Complexity Criteria Description SimpleSomewhat simple, widely known processesTypicalRegular processComplexProcess contingency is utilized in an effort to lessen the impact of absent technical information or the uncertainty of that which is obtained. In that manner, the reliability of the information gathered, its amount and the inherentSeveral unit operations, extreme temperature or pressure, more instrumentationSource: Intratec www.intratec.us 44. Accuracy of Economic Estimates The accuracy of estimates gives the realized range of plant cost. The reliability of the technical information available is of major importance.Table 26 Accuracy of Economic EstimatesReliabilityAccuracyVeryLowModerateHigh+ 50%+ 40%+ 30%+ 20%- 30%- 25%- 20%- 15%HighSource: Intratec www.intratec.usIntratec | Research Economics MethodologyThe non-uniform spread of accuracy ranges (+50 to 30 %, rather than 40%, e.g.) is justified by the fact that the unavailability of complete technical information usually results in underestimating rather than overestimating project costs.39 45. 40Intratec | Appendix A. Mass Balance & Streams Properties 46. 41Intratec | Appendix A. Mass Balance & Streams Properties 47. 42Intratec | Appendix B. Utilities Consumptions Breakdown 48. Appendix C. Carbon Footprint The process carbon footprint can be defined as the total amount of greenhouse gas (GHG) emissions caused by the process operation. The emissions presented in this chapter only involve the target process operation. Calculations do not consider emissions caused by upstream processes that generate feedstocks or downstream processes that use any product or by-product. Also, carbon credits from green feedstocks, if the case, are not computed.Table 29 Assumptions for CO2e Emissions CalculationAlthough it is difficult to precisely account for the total emissions generated by a process, it is possible to estimate the major emissions, which can be divided into: Direct emissions. Emissions caused by process waste streams combusted in flares. Indirect emissions. The ones caused by utilities generation or consumption, such as the emissions due to using fuel in furnaces for heating process streams. Fuel used in steam boilers, electricity generation, and any other emissions in activities to support process operation are also considered to be indirect emissions.Source: Intratec www.intratec.usTable 30 CO2e Emissions (ton/ton prod.)In order to estimate the direct emissions, it is necessary to know the composition of the streams, as well as the oxidation factor. Estimation of indirect emissions requires specific data concerning the plant location, such as the local electric power generation profile, and on the plant resources, such as the type of fuel used.Source: Intratec www.intratec.usEquivalent carbon dioxide (CO2e) is a measure that describes the amount of CO2 that would have the same global warming potential of a given greenhouse gas, when measured over a specified timescale. All values and assumptions used in calculations are based on data provided by the Environment Protection Agency (EPA) Climate Leaders Program.Intratec | Appendix C. Carbon FootprintThe assumptions for the process carbon footprint calculation are presented in Table 29 and the results are provided in Table 30.43 49. Appendix D. Pilot Plant Construction Pilot testing of new and unproven processes is a key step in the development and commercialization of new technologies. Of course, much of the important preliminary work associated with catalyst development and phase equilibrium is most efficiently (inexpensively) completed in the laboratory. However, problems associated with trace quantities of unwanted side products, difficult material handling problems, and multiple reaction steps are not easily scaledup from laboratory experiments. In such cases, specific unit operations or the entire process may be analyzed in pilot plants to gain a better insight into the proposed full-scale operation. Sometimes, the pilot plant serves a dual purpose of testing the process at an intermediate scale and producing enough material for customers and other interested parties to test. Table 31 presents general information related to the construction of a pilot plant for the technology approached in this study. Table 32 presents the total fixed investment required to construct such pilot plant.Table 31 Pilot Plant Construction InformationIntratec | Appendix D. Pilot Plant ConstructionSource: Intratec www.intratec.us44Table 32 Pilot Plant Construction Cost (USD Thousands)Source: Intratec www.intratec.us 50. Appendix E. Detailed Capital Expenses Direct Costs Breakdown Figure 16 ISBL Direct Costs Breakdown by Equipment TypeSource: Intratec www.intratec.usSource: Intratec www.intratec.usIntratec | Appendix E. Detailed Capital ExpensesFigure 17 OSBL Direct Costs Breakdown by Equipment Type45 51. 46Intratec | Appendix E. Detailed Capital Expenses 52. Appendix F. Economic Assumptions Capital ExpendituresOperational ExpendituresFor a better description of working capital and other capital expenses components, see the chapter Research Economics Methodology.Fixed CostsWorking CapitalFixed costs are estimated based on the specific characteristics of the process. The fixed costs, like operating charges and plant overhead, are typically calculated as a percentage of the industrial labor costs, and G & A expenses are added as a percentage of the operating costs.Table 34 Working Capital Assumptions Raw MaterialsTable 36 Other Fixed Cost AssumptionsInventorySource: Intratec www.intratec.usSource: Intratec www.intratec.usTable 37 Depreciation Value & AssumptionsResearch & Development ExpensesSource: Intratec www.intratec.usSource: Intratec www.intratec.usIntratec | Appendix F. Economic AssumptionsTable 35 Other Capital Expenses Assumptions47 53. Intratec | Appendix F. Economic AssumptionsSource: Intratec www.intratec.us48 54. Appendix G. Released Publications The list below is intended to be an easy and quick way to identify Intratec reports of interest. For a more complete and up-to-date list, please visit the Publications section on our website, www.intratec.us. TECHNOLOGY ECONOMICS Propylene Production via Metathesis: Propylene production via metathesis from ethylene and butenes, in a process similar to Lummus OCT. Propylene Production via Propane Dehydrogenation: Propane dehydrogenation (PDH) process conducted in moving bed reactors, in a process similar to UOP OLEFLEX. Propylene Production from Methanol: Propylene production from methanol, in a process is similar to Lurgi MTP.IMPROVEMENT ECONOMICS Membranes on Polypropylene Plants Vent Recovery: The Report evaluates membrane units for the separation of monomer and nitrogen in PP plants, similar to the VaporSep system commercialized by MTR. Use of Propylene Splitter to Improve Polypropylene Business: The report assesses the opportunity of purchasing the less valued RG propylene to produce the PG propylene raw material used in a PP plant. RESEARCH ECONOMICS Green Ethylene from Ethanol: The Report evaluates the ethylene production via ethanol dehydration in a process based in a patent published by BP Chemicals.Polypropylene Production via Gas Phase Process: A gas phase type process similar to the Dow UNIPOL PP process to produce both polypropylene homopolymer and random copolymer. Polypropylene Production via Gas Phase Process, Part 2: A gas phase type process similar to Lummus NOVOLEN for production of both homopolymer and random copolymer.Propylene Production via Propane Dehydrogenation, Part 2: Propane dehydrogenation (PDH) in fixed bed reactors, in a process is similar to Lummus CATOFIN. Propylene Production via Propane Dehydrogenation, Part 3: Propane dehydrogenation (PDH) by applying oxydehydrogenation, in a process similar to the STAR PROCESS licensed by Uhde.Intratec | Appendix G. Released PublicationsSodium Hypochlorite Chemical Production: Sodium hypochlorite (bleach) production, in a widely used industrial process, similar to that employed by Solvay Chemicals, for example.49 55. Appendix H. Research Economics Form Submitted by ClientAppendix H. Research Economics Form Submitted by Client 56. v.3-may-17RESEARCH ECONOMICS REQUEST FORMResearch of Interest Research Opportunities During the development of our Advisory Services Intratec has gathered a list of interesting research opportunities. You may choose your research from this list or define your own research, providing us with your references. Research OpportunitiesOtherDefine the subject of your researchGreen Ethylene from methanolAdd commentsMain Reference (Required) Provide us with a patent or article that will be the basis of your research. Upload a file or provide the URL address of your main reference. URL address of the main reference ORhttp://www.freepatentsonline.com/y2009/0082605.html Example: US Patent No. 2009/0259086 - http://www.freepatentsonline.com/y2009/0259086.pdfUpload the main referenceOther References (Optional) The more information about your research is provided the better will be the study.Add other referencesSensitivity Analysis This study includes a sensitivity analysis on two technical parameters. In this analysis we vary these parameters to evaluate the impact on capital and operating costs. Change inputs Technical ParametersDefined by IntratecStudy Assumptions Please provide the assumptions that will support the techno-economic evaluation of the process under .Analysis Date Quarter / YearChange inputs Q3Plant Annual Production Plant Annual ProductionOperating Hours Operating Hours/2012Change inputs Defined by IntratecChange inputs 8,000 h/year (91.3% of the year) 57. Storage Facilities RequirementsChange inputsProducts0days of operationBy-Products (if applicable)0days of operationRaw Materials20days of operationUtilities Supply Facilities Account for the Erection of Utilities Facilities?Change inputs YesPlant LocationDefine a custom locationCapital and operating costs estimation will be based on Intratec's Internal Database default prices for: 1) United States (US Gulf Coast)Economic AssumptionsChange inputsIncome Tax38 %Sales Tax7%Value Added Tax (VAT)0%Depreciation MethodStraight Line (10 years)Perpetuity (EBITDA Multiple)5 times the EBITDA value in the last year of the economic cyclePrices Escalation2 % per yearGeneral Design ConditionsCheck process design assumptions used by IntratecOther Remarks Please provide any other information that may be relevant for the project description. 58. Appendix I. Related Study OpportunitiesAppendix I. Related Study Opportunities 59. Petron Licenses the Most Industry-Recognized Ethylene from Bioethanol ProcessEthylene is an important raw material in the world today, and is known to be effective as a raw material used in the production of PVC, polyethylene, ethylene oxide and other products. Petrons Scientech ethanol-to-ethylene (ETE) process is commercially proven and well-accepted by the industrial sector. The process, which is very similar to Chematur Engineering ABs process (see figure), essentially consists of a fixed-bed reactor to dehydrate ethanol to ethylene. In the process, ethanol is converted to ethylene by passing vaporized ethanol through a catalytic reaction system. The ethylene is cooled and any acidic components are removed with the condensed water. A small quantity of caustic is added to neutralize any acids. When producing polymer grade ethylene, it must be purified by using a caustic scrubber, a fixed bed absorber dryer and distillation and stripper columns.Dehydration ReactorsEthanolFurnaceQuenchCaustic WashEthylene ColumnEthyleneThrough Intratecs Technology Economics advisory service, it is possible to assess the economics of the suggested process. Intratecs methodology ensures a critical analysis of the technology, based on: StripperProcess Simulation Estimation of Key Performance Indicators and list of equipment Plant capital cost estimates developed using Aspen Process Economic Analyzer Evaluation of all costs related to plant operation (raw materials, utilities, labor and other fixed costs, etc) Review our Technology Economics advisory service at www.intratec.us/tec and order the service online: 1.Indicate the commercial technology to be economically evaluated;2.Select the pricing and payment options that best fit your budget;3.Submit your order.Main Reference Petron Scientech website (http://www.petronscientech.com/) Other References Ethylene from Ethanol Chematur (http://www.chematur.se/sok/download/Ethylene_rev_0904.pdf) 60. PET from Coca-Colas PlantBottle Relies on Green MEG Produced via Scientific Design ProcessThe first ever recyclable plastic bottle made partially from plants, Coca-Colas PlantBottle relies on polyethylene terephthalate (PET) produced from terephthalic acid and green monoethylene glycol (MEG) derived from bioethanol.ScrubberOxygenCaustic WaterEO StripperCO2 Removal MEGEthanol SteamDEG TEGEthylene Oxide Reactor Dehydration ReactorWater Removal Glycol Reactor PEGThe use of green MEG in the production of PET was enabled by Scientific Design (SD), which developed an integrated process comprising the ethanol dehydration and the MEG production steps. This integration requires minimum ethylene purification and takes advantage of heat integration opportunities. According to SD, ethanol is dehydrated to ethylene in a single reactor. The reactor effluent is cooled, washed with an alkaline water solution, compressed and purified. Then, ethylene reacts with oxygen, generating ethylene oxide. The stream is purified and sent to the glycols reactor, where a non-catalytic reaction of ethylene oxide and water generates ethylene glycol (EG). The glycols are separated by vacuum distillation to produce MEG, DEG and TEG. Intratecs Technology Economics advisory service makes a critical analysis of the process. Based on publicly available information, the complete study evaluates the economics surrounding the technology, providing: Process Simulation Estimation of Key Performance Indicators and list of equipment Plant capital cost estimates developed using Aspen Process Economic Analyzer Evaluation of the costs related to plant operation (raw materials, utilities, labor and other fixed costs, etc) Review our Technology Economics advisory service at www.intratec.us/tec and order the service online: 1.Indicate the commercial technology to be economically evaluated;2.Select the pricing and payment options that best fit your budget;3.Submit your order.Main Reference Touch Briefings 2010 Hydrocarbon World, Volume 5, Issue 2 Scientific Designs Ethanol to Monoethylene Glycol Technology (http://www.touchoilandgas.com/ebooks/A1qfzp/hydro52/resources/14.htm) 61. Braskem Operates the First Commercial-Scale Green Ethylene Plant in the WorldEthylene is certainly one of the most important petroleum derivatives, known as the raw material for the production of numerous chemicals. Ethylene is most frequently produced via steam cracking of petroleum-based feedstock. Growing global concerns about sustainability and global warming, along with rising oil prices have motivated research into ethylene manufacture from renewable sources.EthanolEthanol VaporizerDehydration ReactorsQuenchSteam CompressorBrazilian petrochemical company Braskem operates the first large-scale ethylene project to use 100% renewable raw materials. The plant, inaugurated in September 2010 in Triunfo, Rio Grande do Sul state of Brazil, uses ethanol produced from sugarcane as the feedstock.EthyleneEthylene PurificationDryerCaustic WashThrough Intratecs Technology Economics advisory service, it is possible to assess the economics of this process. From publicly available data, Intratec develops a complete study for the economic evaluation of the technology, encompassing: Simulation of the mature process Estimation of process consumptions and equipment requirements Capital cost estimation for a commercial scale plant Operating costs evaluation (including raw materials, utilities, labor and other fixed costs) Review our Technology Economics advisory service at www.intratec.us/tec and order the service online: 1.Indicate the commercial technology to be economically evaluated;2.Select the pricing and payment options that best fit your budget;3.Submit your order.Main Reference Braskem Ethanol-to-Ethylene Plant, Brazil (http://www.chemicals-technology.com/projects/braskem-ethanol/)Water 62. Dow Suggests Different Ethylene Purification to Reduce Bioethylene Plant CostsA patent issued by Dow Global Technologies (Application WO 2011/087478) reveals the research on an alternative ethylene purification scheme in the ethanol dehydration process which has the potential to reduce the required capital investment. Caustic Wash and DryingEthylene purification in conventional ethanol dehydration processes uses cryogenic separation Water technology designed to Selective CO/ H2 Oxidation remove methane, hydrogen (H2) and carbon monoxide Ethanol Dehydration Quench Compressor Ethanol Vaporizer Reactors (CO). The costs of cryogenic distillation appear to be particularly high when it is used merely for removal of the relatively low concentration of CO produced by dehydrating ethanol, especially when the concentrations of methane and hydrogen are already below the specification for ethylene. Polymer Grade EthyleneEthylene PurificationIn this context, Dow proposes the use of selective oxidation of CO to carbon dioxide (CO2) as a way to achieve the ethylene CO specification. In addition, H2 is also selectively oxidized and converted to water, which further reduces the amount of H2 in the ethylene stream to be purified. In order to check if the suggested layout is advantageous in comparison to prior art it is necessary to assess the required reactor size, and the impact of CO concentration reduction in the capital costs of ethylene cryogenic purification step. Through Intratecs Research Economics advisory service, it is possible to assess the economics of the invention. Intratecs methodology ensures a critical analysis of the research, based on: Simulation model of the process described in the patent Plant capital cost estimates developed using Aspen Process Economic Analyzer Manufacturing expenses detailed breakdown Process economic performance sensitivity on raw materials and utilities pricing Review our Research Economics advisory service at www.intratec.us/rec and order the service online: 1.Indicate a patent to be economically analyzed;2.Select the pricing and payment options that best fit your budget;3.Submit your order.Main Reference Patent App. WO 2011/087478 Dow Global Technologies (http://www.google.com/patents/WO2011087478A1) 63. BP Bets on Reactive Distillation to Reduce Ethanol Dehydration Plants Capital CostsA patent issued by BP Chemicals (Application US 2008/0275283) reveals the research on alternatives to reduce equipment requirements of ethanol dehydration process. According to the core concept proposed by BP, ethanol feedstock is converted in a reactive distillation column into a product comprising ethylene and diethyl-ether (DEE). The reactive distillation column top product (ethylene and diethyl-ether) is sent to further purification for PG Ethylene recovery.Ethylene Diethyl EtherDiethyl EtherEthyleneAccording to BP, compared to traditional Methanol-to-Olefins (MTO) process, higher selectivity can be achieved using milder reaction conditions (temperature and pressure). By converting ethanol to ethylene (and/or diethyl-ether) in a single reactive distillation column, it is possible to suppress some unit operations in comparison to regular ethanol dehydration process (furnaces, reactors, etc).EthanolWater Ethanol Dehydration (Reactive Distillation)In order to evaluate the economic feasibility of the invention, it is necessary to assess the reaction conversion, the reflux streams rates, and the need for further unit operations.Intratecs Research Economics advisory service enables a critical analysis of the topic. From the patent, Intratec develops a complete study for the economic evaluation of the concept, encompassing: Synthes