Final Presentation Spring 2010 V2
- 1. Design and Feasibility of Building a new Vinyl Acetate Monomer Production Plant in the United States4/2/2010Team Members: Eric Busch Kevin Chrapkowski Brandon Kussow Aaron Ritthaler1
- 7. Mass and Energy Balances
- 8. Safety and Environmental Considerations
- 9. Economic Feasibility/Cash Flow Analysis
- 10. Conclusions
- 11. Recommendations2
- 12. IntroductionFCC proposed new vinyl acetate production plant within the United States
- 15. Market Survey
- 17. Safety and Environmental Considerations
- 18. Optimizations
- 20. Business ObjectivesPlant Capacity of 30,000 tons per year
- 21. Accounts for 2.25% of global market
- 22. VAM product 99.6 wt% pure
- 23. Location for feed stock
- 24. Minimal downtime
- 26. ROI>MARR4
- 27. Decision Matrix / MethodsEthylene – Acetic Acid method was the best choice based on characteristic parameters5
- 28. Market SurveyVAM prices have fallen
- 29. Ethylene prices have leveled off
- 30. Acetic Acid prices have risen6
- 31. PFD/Model7
- 32. Mass Balance8
- 33. Energy Balance9
- 34. Safety Highly Exothermic Reaction
- 36. Deluge system
- 39. Oxidizing Agents
- 41. Nitrogen, CO2
- 43. Hydroquinone added to VAM10
- 45. Plant emits 173 tons of CO2 each year
- 46. Scrubber using monoethanolamine
- 47. Some states have adopted more strict VOC regulations
- 48. 100 g/L VOC’s for flat coatings
- 49. 150 g/L VOC’s for non-flat coatings
- 50. 250 g/L VOC’s for non-flat “high gloss” coatings
- 51. 340 g/L VOC’s for industrial maintenance coatings11
- 52. Profitability Analysis Fixed Capital Investment12
- 53. Equipment CostsFCI was calculated by the following equation:FCI = PEC-delivered * Lang Factor Lang Factor for fluids plant = 5.82FCI = $8,136,00013
- 54. Profitability Analysis Fixed Capital Investment
- 55. Income14
- 56. Income Income = Production Rate * Sales Price* 60 million pounds per year = 30,000 tons per year15
- 57. Profitability Analysis Fixed Capital Investment
- 58. Income
- 59. Expenses16
- 60. VCOP: Raw MaterialsVCOP for Raw Materials = $58,600,00 / yr.17
- 62. FCOP19
- 63. CCOP CCOP = VCOP + FCOP20
- 64. Profitability Analysis Fixed Capital Investment
- 65. Income
- 66. Expenses
- 67. Base Case Cash Flow Analysis21
- 68. Cash Flow Analysis* All values in millions22
- 69. Sensitivity – Strauss Plots Vinyl Acetate prices affect NPV the most
- 70. Ethylene prices affect NPV the least23
- 71. Optimization: Steam Production Vinyl Acetate formation produces a large amount of energy
- 72. For Base Case, this energy is “swept” away by cooling water
- 73. Steam could be created to use in other units throughout the plant24
- 74. Optimization Cash Flow* Incremental Analysis, all values in millions of dollars25
- 75. Optimization: Acetic Acid Production Acetic Acid accounts for more than half of the expenses
- 76. Acetic Acid produced by Methanol Carbonylation
- 77. Transfer Price based off of Methanol and Carbon Monoxide feedstock prices
- 78. A transfer price of $ 0.30/lb. estimated26
- 79. Optimization: Cash Flow* Incremental Analysis, all values are in millions of dollars27
- 80. Cash Flow Analysis with Optimizations* All values in millions28
- 81. Risk Analysis – Monte Carlo Method Probability that the NPV will be greater than zero
- 82. Flexible values are FCI, Expenses, and Income29
- 84. Purity of 99.6%
- 85. Annual Production of 30,000 tons/yr
- 86. Profitability
- 87. NPV of negative $39 MM
- 88. Optimized NPV of negative $4 MM
- 89. Risk Analysis
- 90. 8.4% possibility of a positive NPV30
- 92. Not recommended at current time
- 93. Changes needed for feasible plant
- 94. Acetic Acid costs fall
- 95. VAM sale prices increase
- 96. Less strict VOC’s regulations
- 97. Construct and produce overseas31
- 98. ReferencesBusch, Chrapkowski, Kussow, and Ritthaler. “Design and Feasibility of Building a new Vinyl Acetate Monomer Production Plant in the United States.” Fictitious Chemical Company. March 19, 2010.32
- 99. Questions?33