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054402 – Design and Analysis – Course Project Definition 2006

2006 Project Tender
Your group is being offered the opportunity to take over the management of a design of a process for the manufacture of ammonia from natural gas for International Chemicals Incorporated (the other ICI), after the termination of the services of the previous company working for ICI, Emek Projects Ltd (EPL). Wehave been approached by Mr. Zvi Fuhrer of the Haifa Municipality to carry out a feasibility study for the possible manufacture of ammonia from natural gas (possibly from Egypt), with the idea that the plant be constructed in the Negev desert. Your design should produce ammonia with a purity of at least 98 mol %, satisfying a demand at the market price of 22 cents/kg, assuming a basis of 12,000 kg/hrof methane as feed, at a cost of 10 cents/kg. The main byproduct of the process is CO2, which has a market value of 10 cents/kg provided that it can be produced at a purity of at least 98 mol %. The process must be designed to maximize its profitability, quantified in terms of the following measures: (a) Return on Investment (ROI); (b) Approximate Payback Period (PBP); (c) Venture Profit (VP),which estimates the annual profit above the return of 20% interest to our venture profit partners. Figures 1 and 2 show the design proposed by EPL, which has a ROI of 3.9%, a PBP of about 25 years and a VP of −$11.3M, that is an annual loss of over 11 million dollars. The EPL flowsheet can be simulated in UNISIM using the file NH3_PROCESS_V3.usc, which we are supplying to your group. EPL stated intheir report that “This poor economic performance is due to the relatively low market price for ammonia. It is impossible to make the process more profitable without a significant increase in the price of ammonia.” We believe that it is possible to make a profit and that poor engineering practice is the reason for the EPL failure, and for that reason, EPL are no longer working with us. This documentprovides detailed technical information about the ammonia process, lists the modifications to the flowsheet that are allowed, the product specifications, process constraints, costs of raw materials and selling prices of the products, and equipment and utility costs. Note that a “grassroots” process is to be constructed, meaning that all costs need to be considered in your analysis. Your design isto be submitted as a technical report, supported by UNISIM files, emailed to me no later than thursday, 8th February 2007, 12:00. The specifications for the report are also given in this document.

Sincerely,

Prof. Daniel R. Lewin Vice President and Chief Technology Officer (CTO) International Chemicals Incorporated
Project_2006_v10.doc 13-12-06

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© D. R. Lewin 2006

054402 –Design and Analysis – Course Project Definition 2006

Figure 1. The EPL design for the synthesis gas section of the ammonia process.
© D. R. Lewin 2006

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054402 – Design and Analysis – Course Project Definition 2006

Figure 2. The EPL design for the synthesis loop section of the ammonia process.

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© D. R. Lewin 2006

054402 – Design and Analysis – Course ProjectDefinition 2006

The rest of this document provides the following information: a) A complete description of the ammonia process. b) Hints to get you started. c) Modifications to the flowsheet that are allowed and modification that are not acceptable. d) Definition of profitability measures. e) Product specifications and revenues. f) Costs of raw materials. g) Estimated equipment purchase costs. h)Utility costs. i) References. j) Deliverables.

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© D. R. Lewin 2006

054402 – Design and Analysis – Course Project Definition 2006

a) A complete description of the ammonia process. A possible route to ammonia is from natural gas (largely methane). The process involves two main parts: the synthesis gas generation section and the ammonia synthesis loop section. Synthesis gas...
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