iii

MANUFACTURE OF FORMALDEHYDE
FROM METHANOL


A PROJECT REPORT

Submitted by
S. GAYATHRI (41501203005)
G. MUTHAMILARASI (41501203014)


in partial fulfillment for the award of the degree
of
BACHELOR OF TECHNOLOGY
in
CHEMICAL ENGINEERING


S.R.M. ENGINEERING COLLEGE,
KATTANKULATHUR-603 203, KANCHEEPURAM DISTRICT.

ANNA UNIVERSITY : CHENNAI - 600 025

MAY 2005

iv




BONAFIDE CERTIFICATE



Certified that this project report "MANUFACTURE OF FORMALDEHYDE FROM
METHANOL" is the bonafide work of "S. GAYATHRI (41501203005) and G.
MUTHAMILARASI (41501203014)" who carried out the project work under my
supervision.




Prof. Dr. R. KARTHIKEYAN Prof. Dr. R. KARTHIKEYAN
HEAD OF THE DEPARTMENT SUPERVISOR
CHEMICAL ENGINEERING PROFESSOR & HEAD
S.R.M.Engineering College CHEMICAL ENGINEERING
Kattankulathur - 603 203 S.R.M.Engineering College
Kancheepuram District Kattankulathur - 603 203
Kancheepuram District














v

ACKNOWLEDGEMENT


Our heart felt thanks to the Director, Dr.T.P.Ganesan, and our Principal, Prof.
R.Venkatramani,M.Tech,F.I.E, for allowing us to carryout our project.

We express our profound gratitude to Dr.R.Karthikeyan, Head of the
Department, Chemical engineering, who guided us in the right direction through the
course of our project.

We also thank our project co-ordinater Mrs.K.Kasturi,B.Tech, for her valuable
advice and encouragement.

Our special thanks to the members of the DTP section and library for their co-
operation

vi

ABSTRACT


Formaldehyde, one of the important industrial chemicals, finds its applications
in polymeric resins like phenol formaldehyde, adhesives, alkali resins for paints and
coatings etcManufacture of formaldehyde (as formalin) is done by oxidation of
methanol, mainly by metal oxide process involving Fe/Mo catalyst with 95-99mol%
conversion of methanol. This project is aimed at designing plant producing 37 wt%
formalin and checking for feasibility of production.
















vii
TABLE OF CONTENTS


CHAPTERS TITLE PAGE NO

ABSTRACT
iv

LIST OF TABLES
vii

LIST OF FIGURES
viii

LIST OF SYMBOLS

ix

1

INTRODUCTION

1

2

PROPERTIES
2.1 PHYSICAL PROPERTIES
2.2 THERMAL PROPERTIES
2.3 CHEMICAL PROPERTIES

3
3
3
4

3

ANALYSIS AND SPECIFICATIONS

7

4

COMMERCIAL USES OF FORMALIN

8

5

LITERATURE REVIEW
5.1 SELECTION OF PROCESS

10
11

6

PROCESS DESCRIPTION
6.1 FLOW SHEET

12
14

7

MATERIAL BALANCE

15

8

ENERGY BALANCE

19

9

DESIGN


23
10

PLANT LAYOUT 29
11 MATERIALS OF CONSTRUCTION
11.1 METALS
11.2 NON-METALS
39
39
40

12

INSTRUMENTATION AND CONTROL

41


viii
13 STORAGE AND TRANSPORTATION 46

14

HEALTH AND SAFETY CONSIDERATIONS

47

15

COST ESTIMATION

49

16

CONCLUSION

56

REFERENCES


57
LIST OF TABLES


Table
Number
Description Page No

1

Heat transfer data

19
2 Storage temperatures 46
3 Dose-response relationship 47
4 Delivered cost of equipments 49
5 Direct cost factor 50
6 Indirect cost factor 50
7 Auxillary cost factor 52



ix

LIST OF FIGURES
Page No

FIGURE 6.1

FLOW SHEET

14

FIGURE 7.1

REACTOR BALANCE

17

FIGURE 7.2

ABSORBER BALANCE

18

FIGURE 8.1

ENERGY BALANCE FOR
METHANOL VAPORIZER

19

FIGURE 8.2

ENERGY BALANCE FOR REACTOR

20

FIGURE 8.3

ENERGY BALANCE FOR HEAT
EXCHANGER 1

21

FIGURE 8.4

ENERGY BALANCE FOR HEAT
EXCHANGER 2

21

FIGURE 8.5

ENERGY BALANCE FOR
ABSORBER(BOTTOM)

21

FIGURE 8.6

ENERGY BALANCE FOR
ABSORBER (TOP)

22

FIGURE 10.1

PLANT LAYOUT

38























x
LIST OF SYMBOLS

A Area (m
2
)
D,d Diameter (m)
L Length (m)
m Mass (Kg)
Nu Nusselt number
n Number of tubes
P Pressure (atm)
Pr Prandtl number
Re Reynolds number
V Volume(m
3
)
T Temperature(K)
U Overall heat transfer
coefficient(W/ m
2
.
o
C)
Z Height (m)

GREEK LETTERS

T Temperature difference (
o
C)

T
L
Logarithmic mean temperature difference (
o
C)

L


Viscosity of liquid



Density (Kg/m
3
)

11
1. INTRODUCTION

Formaldehyde occurs in nature and it is formed from organic material by
photochemical processes in the atmosphere. Formaldehyde is an important metabolic
product in plants and animals (including humans), where it occurs in low but
measurable concentrations. It has a pungent odour and is an irritant to the eye, nose
and throat even at low concentrations.

However, Formaldehyde does not cause any chronic damage to human health.
Formaldehyde is also formed when organic material is incompletely combusted.
Formaldehyde is an important industrial chemical and is employed in the manufacture
of many industrial products and consumer articles.

Formaldehyde was first synthesized in 1859, when BUTLEROV hydrolyzed
methylene acetate and noted the characteristic odour of the resulting solution. In
1867,HOFMANN conclusively identified formaldehyde, which he prepared by
passing methanol vapour and air over a heated platinum spiral. This method, but with
other catalyst, still constitutes the principal method of manufacture.

Industrial production of formaldehyde became possible in 1882,when
TOLLENS discovered a method of regulating the methanol vapour: air ratio and
affecting the yield of the reaction. In 1886 LOEW replaced the platinum spiral
catalyst by more efficient copper gauze. A German firm, Hugo Blank, patented the
first use of a silver catalyst in 1910.In 1905,Badische Anilin and Soda-Fabrik started
to manufacture formaldehyde by a continous process employing a crystalline catalyst.
Formaldehyde output was 30 kg/day in the form of an aqueous 30 wt% solution. The
methanol required for the production of formaldehyde was initially obtained from the
timber industry by carbonizing wood. The development of high-pressure synthesis of
methanol by Badische Anilin and Soda-Fabrik in 1925 allowed the production of
formaldehyde on a true industrial scale


12
2. PROPERTIES

2.1 PHYSICAL PROPERTIES
Formaldehyde is a colorless gas at ambient temperature that has a pungent,
suffocating odor. At ordinary temperatures formaldehyde gas is readily soluble in
water, alcohols and other polar solvents. It has following physical properties:
Boiling point at 101.3 kPa = -19.2
o
C
Melting point = -118
o
C
Density at 80
o
C = 0.9151g/cm
3

At 20
o
C = 0 .8153 g/cm
3

Vapor density relative to air = 1.04
Critical temperature = 137.2 141.2 (
o
C)
Critical pressure = 6.784 6.637 Mpa
Cubic expansion coefficient = 2.83 x 10
3
K
-1

2.2 THERMAL PROPERTIES

Heat of formation at 25
o
C = -115.9 + 6.3 kJ/mol
Heat of combustion at 25
o
C = 561.5 kJ/mol
Heat of vapourisation at 19.2
o
C = 23.32 kJ/mol
Specific heat capacity at 25
o
C = 35.425 J/mol K
Heat of solution at 23
o
C
In water = 62 kJ/mol
In methanol= 62.8 kJ/mol
In 1-propanal = 59.5 kJ/mol
In 1-butanol = 62.4 kJ/mol
Entropy at 25
o
C= 218.8 + 0.4 kJ/mol K
2.3 CHEMICAL PROPERTIES
Formaldehyde is one of the most reactive organic compounds known. The
various chemical properties are as follows:

Decomposition
At 150
o
C formaldehyde undergoes heterogeneous decomposition to form
methanol and CO
2
mainly. Above 350
o
C it tends to decompose in to CO and H
2
.


13
Polymerization
Gaseous formaldehyde polymerizes slowly at temperatures below 100
o
C,
polymerization accelerated by traces of polar impurities such as acids, alkalis or
water. In water solution formaldehyde hydrates to methylene glycol

H

H
2
C=O + H
2
O HO C OH

H

Which in turn polymerizes to polymethylene glycols, HO (CH
2
O)
n
H, also
called polyoxy methylenes.

Reduction and Oxidation
Formaldehyde is readily reduced to methanol with hydrogen over many metal
and metal oxide catalysts. It is oxidized to formic acid or CO
2
and H
2
O.
In the presence of strong alkalis or when heated in the presence of acids
formaldehyde undergoes cannizzaro reaction with formation of methanol and formic
acid. In presence of aluminum or magnesium methylate, paraformaldehyde reacts to
form methyl formate (Tishchenko reaction)

2HCHO HCOOCH
3

Addition reactions
The formation of sparingly water-soluble formaldehyde bisulphite is an
important addition reaction. Hydrocyanic acid reacts with formaldehyde to give
glyconitrile.

HCHO + HCN HOCH
2
- C N

Formaldehyde undergoes acid catalyzed Prins reaction in which it forms -Hydroxy-
methylated adducts with olefins. Acetylene undergoes a Reppe addition reaction with
formaldehyde to form 2- butyne-1,4- diol.

14

2 HCHO + HC CH HOCH
2
CCH
2
OH

Strong alkalis or calcium hydroxide convert formaldehyde to a mixture of sugars in
particular hexoses, by a multiple aldol condensation, which probably involves a
glycolaldehyde intermediate. Acetaldehyde, for example reacts with formaldehyde to
give pentaerythritol, C (CH
2
OH)
4


Condensation reactions
Important condensation reactions are the reaction of formaldehyde with amino
groups to give schiffs bases, as well as the Mannich reaction.

CH
3
COCH
3
+ (CH
3
)
2
NH.HCl + HCHO
CH
3
COCH
2
CH
2
N(CH
3
)
2
.HCl + H
2
O
Formaldehyde reacts with ammonia to give hexamethylene teteramine and
with ammonium chloride to give monomethylamine, dimethylamine, or
trimethylamine and formic acid, depending upon reaction conditions.

Aromatic compounds such as benzene, aniline, and toluidine combine with
formaldehyde to produce the corresponding diphenyl methanes. In the presence of
hydrochloric acid and formaldehyde, benzene is chloromethylated to form benzyl
chloride. Formaldehyde reacts with hydroxylamine, hydrazines, or semicardazide to
produce formaldehyde oxime, the corresponding hydrazones, and semicarbazone,
respectively.

Resin formation
Formaldehyde condenses with urea, melamine, urethanes, cyanamide,
aromatic sulfonamides and amines, and phenols to give wide range of resins.





15
3. ANALYSIS AND SPECIFICATIONS
Qualitative Methods:
Qualitative detection of formaldehyde is primarily by colorimetric methods.
Schiffs fuchsin-bisulfite reagent is the general reagent used for detecting aldehydes.
In the presence of strong acids, it reacts with formaldehyde to form a specific bluish
violet dye.
Quantitative Methods:
Physical Methods: Quantitative determination of pure aqueous solutions of
formaldehyde can be carried out rapidly by measuring their specific gravity. Gas
chromatography and high-pressure liquid chromatography can also be used for direct
determination.
Chemical Methods:
The most important chemical method for determining formaldehyde is the
sodium sulfite method. It is based on the quantitative liberation of sodium hydroxide
when formaldehyde reacts with excess sodium sulfite.
CH
2
O + Na
2
SO
3
+ H
2
O HOCH
2
SO
3
Na + NaOH
The stoichiometrically formed sodium hydroxide is determined by titration
with an acid.
Formaldehyde in air can be determined with the aid of gas sampling apparatus.
In this procedure formaldehyde is absorbed from a definite volume of air by a wash
liquid and is determined quantitatively by a suitable method like pararosanline
method.
Formaldehyde is sold in aqueous solutions with concentrations ranging from
25 56 wt% HCHO. Formaldehyde is sold as low methanol (uninhibited) and high
methanol (inhibited) grades. Formaldehyde solutions contain 0.5-12 wt% methanol or
other added stabilizers. They have a pH of 2.5 3.5,the acid reaction being due to the
presence of formic acid.
4. COMMERCIAL USES OF FORMALDEHYDE

Formaldehyde resins are one of the major applications of formaldehyde. Some
of the derivatives are given below.

Urea-formaldehyde resins are produced by the controlled reaction of urea and
formaldehyde. Their major uses are as adhesives for particleboard, fiberboard and

16
plywood. They are also used for compression molded plastic parts, as wet-strength
additives for paper treating, and as bonders for glass fiber roofing materials.

Phenol formaldehyde is produced by the condensation of phenol with
formaldehyde. The use of these resins is as an adhesive in waterproof plywood. These
resins are also used for binding glass fiber insulation.

Acetylenic chemical uses of formaldehyde involve the reaction with acetylene
to form butynediol, which in turn can be converted to butanediol, butyrolactone and
pyrrolidones. Their major applications are as specialty solvent and extractive
distillation agents.

Polyacetyl resins are produced from the anionic polymerization of
formaldehyde. These resins are used in plumbing materials and automobile
components.

Pentaerythritol is formed by the reaction of formaldehyde, acetaldehyde and
sodium hydroxide. Its largest use is in the manufacture of alkyd resins for paints and
other protective coatings.

Hexamethylene tetramine is formed by the reaction between formaldehyde
and ammonia. It is used as a partial replacement for phosphates as a detergent builder
and as a chelating agent.

Urea-formaldehyde concentrates are used as controlled release nitrogen
fertilizers.

Melamine resins are thermosetting resins produced from melamine and
formaldehyde and are primarily used for surface coatings.

The direct use of formaldehyde is to impart wrinkle resistance in fabrics.




17


5. LITERATURE SURVEY

Most of the worlds commercial formaldehyde is manufactured from methanol
and air either by a process using a silver catalyst or one using a metal oxide catalyst.
SILVER CATALYST PROCESS
The silver catalyst processes for converting methanol to formaldehyde are
generally carried out at an atmospheric pressure and at 600 720C .The reaction
temperature depends on the excess of methanol in the methanol-air mixture. The
composition of mixture must lie outside the explosive limits. The amount of air used
is also determined by the catalytic quality of the silver surface. The following
reactions take place
CH
3
OH + O
2
HCHO + H
2
O
CH
3
OH HCHO + H
2

Methanol conversion is 65 75% per pass.
METAL OXIDE PROCESS
In this process formaldehyde is formed by oxidation process only. The
reactions are
CH
3
OH + O
2
HCHO + H
2
O
HCHO + O
2
CO + H
2
O
The reactions occur over a mixed oxide catalyst containing molybdenum oxide
and iron oxide in a ratio 1.5 to 3.The reaction is carried out at 250 350
o
C and
essentially at atmospheric pressure. Methanol conversion is 95 98% per pass.

5.1 SELECTION OF PROCESS
It is estimated that nearly 70% of commercial formaldehyde is produced by
metal oxide process. This process has a very low reaction temperature, which permits
high catalyst selectivity, and the very simple method of steam generation. The
conversion is around 95-98% per pass, which is greater than silver oxide process.

18
6. PROCESS DESCRIPTION

Metal oxide process: Vaporized methanol is mixed with air and optionally recycled
tail gas is passed through catalyst filled tubes in a heat exchanger reactor. The
following reactions take place in the reactor.

CH
3
OH+ O
2
HCHO +H
2
O +37 Kcal/g-mol
HCHO + O
2
CO+H
2
O+51 Kcal/g-mol

The temperature inside the reactor is maintained at 250-350C.

The heat released by the exothermic reaction is removed by vaporization of a
high boiling heat transfer fluid on outside of the tubes. Steam is normally produced by
condensing the heat transfer fluid. The catalyst is granular or spherical supported
Fe/Mo and has an effective life of 12 18 months. A typical reactor has short tubes of
1-1.5m and a large shell diameter of 2.5 m or more. The exit gases from the reactor
pass through a heat exchanger where the temperature is reduced to 110
o
C and then to
the absorption column where water is used as the scrubbing medium.

The absorber can be either of packed or tray type. It is necessary to remove the
heat of solution plus the residual sensible heat of the feed gases, and this is done by
circulating down flow liquid through external heat exchangers and in some cases by
the use of cooling coils. The bottom stream from the absorber represents the final
product. Formaldehyde concentration in the product is adjusted by controlling the
amount of water added to the top of the absorber. Formic acid is removed by ion
exchange. A large portion of the absorber overhead gas is recycled back to the feed
system. The methanol conversion ranges from 95-99mol% and depends on the
selectivity, activity and spot temperature of the catalyst, the later being influenced by
the heat transfer rate. The overall plant yield of formaldehyde is 88-95 mol%.


19
The final product contains up to 55wt% formaldehyde and 0.5-1.5 wt%
methanol.



A
B
S
O
R
B
E
R
R

E

A

C

T

O

R

WATER
CW
CW

DEIONISER

METHANOL

RECYCLE GAS

PURGE GAS

AIR

St

St

BLOWER

BFW

St
BFW

2

1
`

3

F

O
R
M
A

L

I

N




1. METHANOL VAPORIZER
2. HEAT EXCHANGER 1
3. HEAT EXCHANGER 2

20
FIG 6.1 FLOW SHEET
7. MATERIAL BALANCE

Basis: 100 kmoles of methanol in fresh feed per hour
Molecular weight of methanol = 32 kg/kmole
Weight of methanol in feed = 3200 kg
CH
3
OH + O
2
HCHO + H
2
O
Assume methanol conversion is 97 %.
Hence methanol reacted = 97 kmoles
= 3104 kg
Assume that 1% of methanol reacts to form formic acid.
HCHO + O
2
CO + H
2
O
Actual O
2
required = 51.925 kmoles = 1661.60 kg
Actual O
2
supplied (250% excess) = 181.738 kmoles = 5815.62 kg
Excess O
2
= 181.738 51.925
= 129.813 kmoles =4154.02 kg
Assume that 57% of oxygen requirement comes from recycle stream and 43% comes
from fresh feed.
O
2
from fresh feed = 181.738 x 0.43
= 78.147 kmoles = 2500.70 kg
Corresponding N
2
= 78.147 x (79/21)
= 298.982 kmoles = 8371.50 kg



Assume that the percentage composition of recycle stream is
O
2
- 7.78%

21
N
2
- 88.3%
H
2
O - 3.89%

O
2
from recycle stream = 103.590 kmoles =3314.88 kg
N
2
in recycle stream = 1175.910 kmoles =32925.48 kg
H
2
0 in recycle stream = 51.795 kmoles =932.31 kg

Reactor outlet:

Unreacted methanol = 2 kmoles=64 kg
HCHO formed = 92.15 kmoles=2764.50 kg
H
2
O formed = 154.64 kmoles=2783.52 kg
CO formed = 4.85 kmoles= 135.8 kg
Nitrogen =1484.185 kmoles=41157.20 kg
Unreacted oxygen =129.813 kmoles =4154.02 kg
HCOOH formed = 1 kmole = 46 kg








FIG 7.1



REACTOR


Methanol =3200kg

O
2
= 3314.82 kg
N
2
= 32925.48 kg
H
2
0 = 932.31 kg
Air
O
2
=2500.71kg
N
2
=8231.50 kg

CH
3
OH = 64 kg
O
2
=4153.92 kg
N
2
=41157.20kg
H
2
0 = 2783.4 kg


HCHO=2764.5 kg
CO=135.8 kg
HCOOH=46 kg
TOTAL INPUT =51104.82 kg TOTAL OUTPUT =51104.82 kg

22



ABSORBER


G
ms
(Y
a
-Y
b
) = L
ms
(X
a
- X
b
)
G
ms
=molar flow rate of gas on solute free basis
L
ms
=molar flow rate of liquid on solute free basis
X
a
=% of solute in liquid at inlet
X
b
=% of solute in liquid at outlet
Y
a
=fraction of solute in gas at inlet
Y
b
=fraction of solute in gas at outlet


Gas flow rate = G
ms
= 1653.645 kmoles/hr

M= 0.0678 (VLE data)

M= (L
ms
)
min


G
ms


(L
ms
)
min
= 112.117 kmoles

Y
b
= 5/95 = 0.0526
Y
a
= 3.14 X10
4

X
a
= 0
X
b
=0.7758


Assume L
ms
= 1.4 (L
ms
)
min

L
ms
= 157.71 kmoles












23

















FIG 7.2
8. ENERGY BALANCE

DATA TABLE 1:



Latent heat of
vaporization,
(KJ/Kg)
Specific heat capacity
C
p
(KJ/Kg
o
C)
Methanol 1099.90 (at 64.7
o
C) 2.513
O
2
- 0.928
N
2
- 1.04
H
2
O 2255(at 100
o
C)
3278.20 (at 400
o
C)
2228.69(at 110
o
C)
1.88
CO - 1.13
HCOOH - 0.6
HCHO - 0.5
Oil - 1.75


1) Methanol vaporizer

RECYCLE AIR (25
o
C) H
2
0 (400
o
C)
O
2
:3314.8 Kg
N
2
: 32925 Kg
H
2
0:932.31 Kg

CH
3
OH = 3200 Kg
AIR(285
o
C)
METHANOL
CH
3
OH=64 kg
HCOOH=46 kg
H
2
0=1165.39 kg
O
2
=4153.92 kg
N
2
=41156.64 kg
PRODUCT
STREAM
HCHO=2764.5 kg
H
2
0=4593.02 kg
HCHO=2764.5 kg
CO =135.8 kg
HCOOH=46 kg
FROM REACTOR
CH
3
OH = 64 kg
O
2
=4153.92 kg
N
2
=41157.20kg
H
2
0 = 2783.4 kg


ABSORBER
SOLVENT
H
2
0=2838.78 kg
RECYCLE STREAM
TOTAL INPUT = 53943.46 kg TOTAL OUTPUT = 53943.46 kg


Methanol
Vaporizer

24
FRESH AIR
O
2
: 2500 Kg
N
2
: 8231.5Kg

(400
o
C)

SUPERHEATED
STEAM
FIG 8.1


mC
p
T
(inlet stream)
= m
(steam)
(m C
p

(recycle)
+ m C
p

(air)
+m C
p

(methanol liq)
+m
(methanol)
+m C
p

(methanol gas)
)(285-25) =
18.08x10
5
= m x 3278.20
Steam required m = 551.52 Kg
2)Reactor


CH
3
OH = 3200 Kg CH
3
OH = 64 Kg
O
2
= 5815.6 Kg O
2
= 4153.92 Kg
N
2
= 41157.2 Kg N
2
= 41157.20 Kg
H
2
0 = 932.31 Kg H
2
0 = 2783.61 Kg

(285
o
C) CO = 135.80 Kg
HCOOH = 46 Kg
HCHO = 2764.50 Kg
FIG 8.2
Reactions:

CH
3
OH + 1/2 O
2
HCHO + H
2
0 H
o
= -4839 KJ/Kg

HCHO + 1/2 O
2
CO + H
2
0 H
o
= -7115.35 KJ/Kg

For an isothermal reaction:

H
(products)
+ H
o
- H
(reactants)
=H (H = m C
P
T)
(T=285-25=260)
Substituting values from table 1,

H = 13.8687x10
6
KJ
H
(reactor)
= m C
p
T
(cooling oil)
13.8687x10
6
= m x 1.75x 110
Oil required m = 72045.058 Kg


Isothermal
Reactor

25
3) Heat exchanger 1:

Oil (120
o
C)

H
2
0 (25
o
C) Steam (100
o
C)


Oil (230
o
C)

FIG 8.3
mC
p
T
(cooling oil)
= mC
P
T(H
2
0) + m
(steam)
13.8687x10
6
= m x 1.88 x 75 + m x 2255
Water required m = 5144.19 Kg
4) Heat exchanger 2:

Steam (100
o
C)

Reactor outlet
(285
o
C) (110
o
C)


H
2
0 (25
o
C)

FIG 8.4
mC
p
T
(products)
= m C
p
T
(H20)
+ m
(steam)
9.1815x10
6
= m x 1.88 x 75 + m x 2255
Water required m = 3405.60 Kg
5)Absorber:
Bottom: Water (50
o
C)
Products (gases) H
2
0 (liquid)
(110
o
C) (110
o
C)

Water (25
o
C)
FIG 8.5
mC
p
T
(cooling H20)
= m
(condensing water)
m x 1.88 x 25 = 2783.61 x 2228.7
Cooling water required m = 13996.121 Kg
Top:
Water (50
o
C)



26
Products (gases) Products (gases)
(110
o
C) (30
o
C)

Water(25
o
C)
FIG. 8.6
mC
p
T
(cooling H20)
= mC
p
T
(product gases)
m x 1.88 x 25 = mC
p
(110-30)
Cooling water required m = 81457.60 Kg










27
9. DESIGN

HEAT EXCHANGER 1

U
0
A
0
T
L
= (m C
P
T)
OIL
Where U
0
= Overall heat transfer co-efficient (KW/m
2

o
C)
A
0
= Outside tube area (m
2
)
T
L
= Logarithmic mean temperature (
o
C)

T
L
= (230 100) (30 -25)
ln (130/5)
= 38.3659
o
C
U
0
x 2 x R x L x n x T
L
= 3852.409

U
0
= 1

1/h
0
+ (A
0
/A
i
) ( 1/h
i
)

Nu =0 .023 (Re)
0.8
(Pr)
0.3

Assume that d
0
= BWG NO = 16
d
0
= 0.0191 m
d
i
= 0.0157 m

m = AV
V = m / A = (72045.05 /3600)

x (0.0157/2)
2
x 864.9939

= 119.56 m/s
Nu = 0.023 x (120262.0154) (1.9989)
= 5504.1158
h
i
= 44.87 kW/ m
2

o
C

Assume h
o
= 1.7201 kW/ m
2

o
C

28

1
U
o
=
(1/1.7021) + (1.216/44.87)
U
o
= 1.6270 kW/ m
2

o
C
Assume L = 2.7432 m
1.6270 x 3.14 x 0.0191x111 x 2.7432 x n = 3852.409



HEAT EXCHANGER 2
U
0
A
0
T
L
= (m C
P
T)
PRODUCTS

T
L
= (285 100) ( 110 -25)
ln (185/85)
= 128.584
o
C

U
0
x 2 x R x L x n x T
L
= 2550.4324

U
0
= 1

1/h
0
+ (A
0
/A
i
) (1/h
i
)

Nu =0 .023 (Re)
0.8
(Pr)
0.3


Assume that d
0
= BWG NO = 16
d
0
= 0.0191 m
d
i
= 0.0157 m

m = AV
V = m / A = (51105.03/3600)
x (0.0157/2)
2
x 900

= 81.517m/s
n = 147 tubes

29
Nu = 0.023 x (138695.051) (0.6795)
= 21676.058
h
i
= 181.714 kW/ m
2

o
C
Assume h
o
= 1.7201 kW/ m
2

o
C
1
U
o
= (1/1.7021) + (1.216/181.714)
U
o
= 1.682kW/ m
2

o
C
Assume L = 3.048 m
1.682 x 3.14 x 0.0191x128.5842 x 3.048x n = 2550.4324


REACTOR DESIGN
Specification: Packed multiple tubular reactor
Assumption:
Shell diameter of each reactor =39
= 0.99 m
Tube specifications: 1 1/2" BWG (No 16)

Corresponding number of tubes = 307

Volume of one tube:
ID = 0.03479 m L = 1.5 m

Volume = R
2
L = x0.0174
2
x 1.5=1.426 x10
-3
m
3
Volume of 307 tubes =0.4379 m
3
Void fraction = 0.4 (assumption)
Volume occupied by catalyst/reactor = 0.4379 x 0.6
= 0.2627 m
3


Space velocity = 5 m
3
of gas charged to the reactor (assumption)
(at NTP) hr- m
3
of catalyst per tube

Space velocity for 307 tubes = 1535 m
3
of gas charged to the reactor
n = 65 tubes

30
hr- m
3
of catalyst

Volumetric flow rate: (at NTP)
No of moles entering the reactor/hr = 1803.43 Kmol/hr
Pressure = 1.1 atm; Temperature = 298 K
R = 0.08206 atm m
3


/ Kmol K
PV= nRT
V = 1803.43 x 0.08206 x 298 = 40,091.70 m
3
of gas/hr
1.1


Volumetric flow rate
Volume of catalyst = = 26.1183 m
3

Space velocity
Number of reactors required = volume of catalyst Volume occupied by
Catalyst per reactor
= 26.1183/0.2627
= 99.42 ~ 100 reactors

ABSORBER DESIGN
Absorber height Z =N
oy
x H
oy

N
oy
= y
b
- y
a
;

Y
L =
(y
b
-y
b
*)-

(

y
a
-y
a
*

)


Y
L
ln ((y
b
-y
b
*)/

(

y
a
-y
a
*

))



H
oy
= G
ms
/ K
ya
; where G
ms
= mass flow rate of gases (Kg/s)

K
ya
= overall mass transfer coefficient based on
gas phase

(Kmol/m
3
s

)

Calculation of N
oy
:

y
a
= 3.13 x 10
4
x
a
= 0
y
b
= 0.0499 x
b
= 0.4368

31
K
ya
= 0.4 Kmol/m
3
s (assumption)
G
ms
(y
a
-y
b
) =1.32 Lms (x
b
-x
a
) (x,y are mole fractions of HCHO in
liquid and gas phase resp)
x
b
= 0.5877
y
b
*

= 0.067 x
b
* (equilibrium data)
y
b
* = 0.039

substituting the above values,
Y
L
=

0.00298
N
oy
= 16.69 ~ 17 transfer units

Calculation of H
oy
:
G
ms
= 2764.50 Kg/hr = 0.7679 Kg/ s
Gas density at 110
o
C = 0.90 Kg/m
3

Liquid density = 1000 Kg/m
3

Viscosity = 0.0009 Kg/ms
K
4
= 0.9; F
P
= 1 0.5
Mass flow rate per unit area V = K
4

v
(
l
-
v
)
(Kg/m
2
s ) 13.1 F
P
(
l
/
l
)
0.1

Substituting the values,
V = 1.4616 Kg/m
2
s
Column area = G
ms
/V =0.5252 m
2
Column diameter =(0.5252 x 4/)
0.5
= 0.8179 m

H
oy
= G
ma
/K
ya
=G
ms
/(column area x K
ya
)
= 0.19 m
Calculation of height: (for the top of the absorber)
Z = 17 x 0.19





Z= 3.33m

32


10. PLANT LAYOUT
INTRODUCTION
The economic construction and efficient operation of a process unit will
depend upon how well the plant and equipment specified on the process flowsheet is
laid out and on the profitability of the project with its scope for future expansion.
Plant location and site selection should be made before the plant layout.

Plant location and site selection:
The location of the plant has a crucial effect on the profitability of the project.
The important factors that are to be considered while selecting a site are:
1. Location, with respect to market area
2. Raw material supply
3. Transport facilities
4. Availability of Labour
5. Availability of utilities
6. Availability of suitable land
7. Environmental impact and effluent disposal
8. Local community considerations
9. Climate
10. Political and strategic considerations

1. Marketing area
For materials that are produced in bulk quantities, such as cement, mineral
acids, and fertilizers where the cost of product per tone is relatively low and the cost
of transport a significant fraction of the sales price, the plant should be located close
to the primary product. This consideration will be less important for low volume
production, high-priced products, such as pharmaceutical.

2. Raw materials
The availability and price of suitable raw materials will often determine the
site location. Plants producing bulk chemicals are best located close to the source of

33
major raw material, where this is also close to the marketing area. For the production
of formaldehyde the site should be preferably near a methanol plant.

3. Transport
Transport of raw materials and products is an important factor to be
considered. Transport of products can be in any of the four modes of transport.

4. Availability of labour
Labour will be needed for construction of the plant and its operation. Skilled
construction workers will usually be brought in from outside the site area, but there
should be an adequate pool of unskilled labours available locally; and labour suitable
for training to operate the plant. Skilled tradesman will be needed for plant
maintenance. Local trade union customs and restrictive practices will have to be
considered when assessing the availability and suitability of the local labour for
recruitment and training.

5. Environmental impact and effluent disposal
All industrial processes produce waste products, and full consideration must
be given to the difficulties and cost of their disposal. The disposal of toxic and
harmful effluents will be covered by the local regulations and the appropriate
authorities must be consulted during the initial survey to determine the standards that
must be met.

6. Local community consideration
The proposed plant must fit n with and be acceptable to the local community.
Full consideration must be given to the safe location of the plant so that it does not
impose a significant additional risk to the community on a new site, the local
community must be able to provide adequate facilities for the plant personnel.

7. Land
Sufficient suitable land must be available for the proposed plant and for future
expansion. The land should ideally be flat, well drained and have suitable load-
bearing characteristics full site evaluation should be made to determine the need for
piling or other special foundations.

8. Climate

34
Adverse climatic conditions, at a site will increase costs. Abnormally low
temperatures will require the provision of additional insulation and special heating for
equipment and pipe runs.

9. Political and strategic considerations
Capital grants, tax concessions and other inducements are often given by
governments to direct new investment to preferred locations; such as areas of high
unemployment. The availability of such grants can be overriding consideration in the
site selection.

After considering the location of the site the plant layout is completed. It
involves placing of equipment so that the following are minimized:
1. Damage to persons and property in case of fire explosion or toxic release
2. Maintenance costs
3. Number of people required to operate the plant.
4. Construction costs
5. Cost of planned expansion.

In plant layout first thing that should be done is to determine the direction of the
prevailing wind. Wind direction will decide the location of the plant.

List of items that should be placed upwind and downwind of the plant is given down.

Items that should be located upwind of the plant.
Laboratories
Fire station
Offices building
Canteen and Change house
Storehouse
Medical facilities
Electrical substation
Water treatment plant
Water pumps
Workshops

35
Items that should be located downwind of the plant
Blowdown tanks
Settling tanks
Burning flares

The various units that should be laid out include
1. Main processing unit
2. Storage for raw materials and products
3. Maintenance workshops
4. Laboratories for process control
5. Fire stations and other emergency services
6. Utilities: steam boilers, compressed air, power generation, refrigeration
7. Effluent disposal plant
8. Offices for general administration
9. Canteens and other amenity buildings,such as medical centers
10. Car parks

1. Processing area
Processing area also known as plant area is the main part of the plant where
the actual production takes place. There are two ways of laying out the processing
area
1.) Grouped layout
2.) Flowline layout
Grouped layout
Grouped layout places all similar pieces of equipment adjacent. This provides
for ease of operation and switching from one unit to another. This is suitable for all
plants.


36
Flowline layout
Flowline layout uses the line system, which locates all the equipment in the
order in which it occurs on the flowsheet. This minimizes the length of transfer lines
and therefore reduces the energy needed to transport materials. This is used mainly for
small volume products.

2. Storage house
The main stage areas should be placed between the loading and unloading
facilities and the process they serve. The amount of space required for storage is
determined from how much is to be stored in what containers. In raw material storage,
liquids are stored in small containers or in a pile on the ground. Automatic storage and
retrieving equipment can be substantially cut down storage

3. Laboratories
Quality control laboratories are a necessary part of any plant and must be
included in all cost estimates. Adequate space must be provided in them for
performing all tests, and for clearing and storing laboratory sampling and testing
containers.

4. Transport
The transport of materials and products to and from the plant will be an
overriding consideration in site selection. If practicable, a site should be selected that
is close to at least two major forms of transport: road, rail, waterway or a seaport.

Rail transport will be cheaper for long distance transport of bulk chemicals.
Road transport is being increasingly used and is suitable for local distribution. Road
area also used for fire fighting equipment and other emergency vehicles and for
maintenance equipment. This means that there should be a road around the perimeter
of the site. No roads should be a dead end. All major traffic should be kept away form
the processing areas. It is wise to locate all loading and unloading facilities ,as well as
plant offices, personnel facilities near the main road to minimize traffic congestion
within the plant and to reduce danger.

5. Utilities

37
The word Utilities is now generally used for ancillary services needed in the
operation of any production process. These services will normally be supplied from a
central site facility and will include:
Electricity
Steam for process heating
Cooling water
Water for general use
Inert gas supplies

Electricity
Electrical power will be needed at all the sites. Electrochemical processes that
require large quantities of power need to be located close to a cheap source of power.
Transformers will be used to step down the supply voltage to the voltages used on the
purpose.

Steam for process heating
The steam for process heating is usually generated in water tube boilers using the
most economical fuel available. The process temperature can be obtained with low-
pressure steam. A competitively priced fuel must be available on site for steam
generation.

Cooling water
Chemical processes invariably require large quantities of water for cooling. The
cooling water required can be taken from a river or lake or from the sea.

Water for general use
Water is needed in large quantities for general purpose and the plant must be
located near the sources of water of suitable quality, process water may be drawn
from river from wells or purchased from a local authority.

Offices
The location of this building should be arranged so as to minimize the time
spent by personnel in travelling between buildings. Administration offices in which a

38
relatively large number of people working should be located well from potentially
hazardous process.

Canteen
Canteen should be spacious and large enough for the workers with good and hygienic
food.

Fire station
Fire station should be located adjacent to the plant area, so that in case of fire or
emergency, the service can be put into action

Medical facilities
Medical facilities should be provided with at least basic facilities giving first aid
to the injured workers. Provision must be made for the environmentally acceptable
disposal of effluent.

The layout of the plant can be made effective by
1. Adopting the shortest run of connecting pipe between equipments and the least
amount of structural steel work and thereby reducing the cost.
2. Equipment that need frequent operator attention should be located convenient to
control rooms.
3. Locating the vessels that require frequent replacement of packing or catalyst
outside the building
4. Providing at least two escape routes for operators from each level in process
buildings.
5. Convenient location of the equipment so that it can be tied with any future
expansion of the process.






39























C
A
N
T
E
E
W
O
R
K
S
H
O
FINISHED
PRODUCT
STORAGE
ADMINISTRATIVE
OFFICE
SECURITY
OFFICE
C
A
N
T
E
E
N
W
O
R
K
S
H
O
P
RAW
MATERIAL
STORAGE


PROCESSING
AREA
EXTENSION AREA
ENTRY EXIT
SAFETY HEALTH
DEPT CENTER
MAIN ROAD
FIG 10.1 PLANT LAYOUT

40
11. MATERIALS OF CONSTRUCTION

Materials of construction may be divided into two general classifications of
metals and non-metals.
11.1 Metals
Pure metals and metallic alloys are included under this classification. Some
commonly used metals are discussed in the following section.
Iron and steel
Although many materials have greater corrosion resistance than iron and steel,
cost aspects favor the use of iron and steel. As a result, they are often used as
materials of construction when it is known that some corrosion will occur.
In general, cast iron and carbon steel exhibit about the same corrosion
resistance. They are not suitable with dilute acids, but can be used with strong acids,
since a protective coating composed of corrosion products forms on the metal surface.
Carbon steel plates for reactor vessels are a good example. This application
generally requires a minimum level of mechanical properties, weldability, formability,
and toughness as well as some assurance that these properties will be uniform
throughout.
Stainless steel
There are more than 100 different types of stainless steels. These materials are
high chromium or high nickel-chromium alloys of iron containing small amounts of
other essential constituents. They have excellent corrosion-resistance and heat
resistance properties.
The addition of molybdenum to the alloy increases the corrosion resistance
and high temperature strength. If nickel is not included, the low temperature
brittleness of the material is increased and the ductility and pit type corrosion
resistance are reduced. The presence of chromium in the alloy gives resistance to
oxidizing agents.
Aluminum

41
The lightness and relative ease of fabrication of aluminum and its alloys are
factors favoring the use of these materials. Aluminum resists attack by acids because a
surface film of inert hydrated by aluminum oxide is formed. This film adheres to the
surface and offers good protection unless materials, which can remove the oxide, such
as halogen acids or alkalis, are present.
11.2 Non-metals
Plastics
In comparison with metallic materials, the use of plastics is limited to
relatively moderate temperature and pressures.generally,plastics have excellent
resistance to weak mineral acids and are unaffected by inorganic salt solutions-areas
where metals are not entirely suitable. One of the most chemical resistant plastics
commercially available today is tetrefluoroethylene.This thermoplastic is practically
unaffected by all alkalis and acids except fluorine and chlorine gas at elevated
temperatures and molten metals.
Epoxies reinforced with fiberglass have very high strengths and resistance to
heat. Chemical resistance of the epoxy resin is excellent in non-oxidizing and weak
acids not good against strong acids.


12. INSTRUMENTATION AND CONTROL
Instruments are provided to monitor key process variable during plant
operation. It is desirable that the process variable to be monitored be measured
directly; often however this is impractical and some dependent variable, that is easier
to measure, is monitored in its place. The temperature instrument may form part of a
control loop controlling, say, reflux flow; with the composition of the overheads
checked frequently by sampling and laboratory analysis.
Objectives
The primary objectives of the designer when specifying instrumentation and
control schemes are:
1) Safe plant operation:

42
To keep the process variables within known safe operating limits.
To detect dangerous situations as they develop and to provide alarms and automatic
shut down systems.
To provide interlocks and alarms to prevent dangerous operating procedures.
2) Production rate:
To achieve the design product output
3) Product quality:
To maintain the product composition within the specified quality standards.
4) Cost:
To operate at the lowest production cost, commensurate with the other objectives.
In a typical chemical processing plant these objectives are achieved by a
combination of automatic control, manual monitoring and laboratory analysis.
Guide rules:
The following procedure can be used when drawing up preliminary piping and
instrumentation diagrams.
1. Identify and draw in those control loops that are obviously needed for steady
plant operation, such as:
Level controls
Flow controls
Pressure controls
Temperature controls
2. Identify the key process variables that need to be controlled to achieve the
specified product quality. Include control loops using direct measurement of
the controlled variable, where possible, if not practicable, select a suitable
dependent variable.
3. Identify and include those additional control loops required for safe operation,
not already covered in steps 1 & 2

43
4. Decide & show those ancillary instruments needed for monitoring of the plant
operation by the operators; and for trouble-shooting and plant development. it
is well worthwhile including additional connections for instruments, which
may be needed for future troubleshooting and development ,even if the
instruments are not installed permanently. This would include extra thermo
wells, pressure tapings, orifice flanges, and extra sample points.
5. Decide on the location of sample points.
6. Decide on the need for recorders and the location of the readout points, local
or control room. This step would be done in conjunction with step 1 to 4
7. Decide on the alarms and interlocks need, this would be done in conjunction
with step 3.
Typical control Systems
Level control
In any equipment where an interface exists between two phases some means
of maintaining the interface at the required level must be provided. This may be
incorporated in the design of the equipment. The control valve should be placed on
the discharge line from the pump.
Pressure control
Pressure control will be necessary for most systems handling vapor or gas.
The method of control will depend on the nature of process.
Flow control
Flow control is usually associated with inventory control in a storage tank or
other equipment. There must be a reservoir to take up the changes in flow rate. To
provide flow control on a compression or pump running at a fixed speed and
supplying a near constant volume output, a by-pass would be used.
Heat Exchangers
Here, the temperature can be controlled by varying the flow of the cooling or
heating medium. If the exchange is between two process streams whose flows are
fixed, by-pass control will have to be used.


44

Cascade control
With this arrangement, the output of one controller is used to adjust the set
point of another. Cascade control a give smoother control in situations where direct
control of variable would lead to unstable operation. The slave controller can be
used to compensate for any short-term variations in, say, a service stream flow, which
would upset the controlled variable, the primary controller and long term variations.

Reactor control
The schemes used for reactor control depend on the process and type of
reactor. If a reliable on-line analyzer is available and the reactor dynamics are
suitable, the product composition can be monitored continuously and the reactor
conditions and feed flows controlled automatically to maintain the desired product
composition and yield. More often, the operation is the final link in the control loop,
adjusting the controller set points to maintain the product within specification, based
on periodic laboratory analyzer.

Reactor temperature will normally be controlled by regulating the flow of the
heating or cooling medium. Pressure is usually held constant. Material balance control
will be necessary to maintain the correct flow of reactants to the reactor and flow of
product and unreacted materials from the reactor.

Alarms and safety trips, and interlocks
Alarms are used to alert operators of serious and potentially hazardous,
deviations in process conditions. Key instruments are fitted with switches and relays
to operate audible and visual alarms on the control panels. Where delay or lack of
response from the operator may lead to a hazardous situation, the instrument would be
fitted with trip system to take action automatically to avert the hazard. Interlocks are
included to prevent operations departing from the required sequence. They may be
incorporated in the control system design, as pneumatic or mechanical locks.


45
13. STORAGE AND TRANSPORTATION
Formaldehyde solutions can be stored and transported in containers made of
stainless steel, aluminum, enamel or polyester resins. Iron containers lined with
epoxide resin or plastic may also be used, although stainless steel containers are
preferred, especially for higher formaldehyde concentrations. Unprotected vessels of
iron, copper, nickel and zinc alloys must not be used.
With a decrease in temperature and/or increase in concentration, aqueous
formaldehyde solutions tend to precipitate paraformaldehyde. On other hand, as the
temperature increases, so does the tendency to form formic acid. Trace metallic
impurities such as iron can boost the rate of formation of formic acid. Therefore, an
appropriate storage temperature must be maintained. Stabilizers can also be added to
prevent polymerization. Methanol is generally used as a stabilizer. Other compounds
used as a stabilizer for formaldehyde are ethanol, propanol, urea, melamine, hydrazine
hydrate and bismelamines.
Table 2 Storage temperatures for commercial formaldehyde solutions
Formaldehyde content,wt% Methanol content,wt% Storage
temperature,
o
C
30 1 7-10
37 <1 35
37 7 21
37 10-12 6-7
50 1-2 60-65
50 1-2 45


14. HEALTH AND SAFETY CONSIDERATIONS


Sources of human exposure to formaldehyde are engine exhaust, tobacco
smoke, natural gas, fossil fuels, waste incineration, and oil refineries. It is an essential
intermediate in cell metabolism in mammals and humans. All tissues contain
measurable amounts of formaldehyde, e.g., human blood 2-3 ppm.

Formaldehyde causes eye, upper respiratory tract, and skin irritation and is
skin sensitizer. Although sensory irritation, e.g., eye irritation, has been reported at
concentrations as low as 0.1 ppm in uncontrolled studies, significant eye/nose/throat

46
irritation does not generally occur until concentrations of 1 ppm, based on controlled
human chamber studies.

Table 3 Dose response relationship following human exposure to gaseous
formaldehyde
Effect Exposure level,ppm
Odor threshold 0.05 1.0
Irritation threshold in eyes ,nose, or throat 0.2 1.6
Stronger irritation of upper respiratory
tract,coughing,lacrimination,extreme
discomfort
3 - 6
Immediate dyspnea,burning in nose and throat,
heavy coughing and lacrimation
10- 50

Necrosis of mucous membranes,
laryngospasm,pulmonary edema

>50


Formaldehyde is classified as a probable human carcinogen by the
International Agency for Research on Cancer(IARC).Lifetime inhalation studies with
rodents have shown nasal cancer at formaldehyde concentrations that are
overwhelmed cellular defense mechanisms,ie,6 to 15 ppm.No nasal cancer was seen
at 2 ppm or lower levels.

Available data do not indicate that formaldehyde produces mutagenic,
tetrogenic, embryo toxic effects in man at concentrations which humans are exposed
to or can tolerate.


47
15. COST ESTIMATION

ESTIMATION OF THE TOTAL CAPITAL INVESTMENT
The total capital investment I involves the following:
A: FIXED CAPITAL INVESTMENT IN THE PROCESS AREA, IF
B: THE CAPITAL INVESTMENT IN THE AUXILLARY
SERVICES,IA
C: THE CAPITAL INVESTMENT AS WORKING CAPITAL, IW
i.e., I=IF+IA+W

A. FIXED CAPITAL INVESTMENT IN THE PROCESS AREA, IF
This is the investment in all processing equipment within the processing area.
Fixed capital investment in the process area, IF= Direct plant cost + Indirect plant cost
The approximate delivered cost of major equipments used in the proposed
Formaldehyde manufacturing plant are furnished below:
(Table 4)
S.NO EQUIPMENT UNITS Cost in Lakhs
/Unit
Cost in Lakhs
1 Heat Exchanger 3 20 60
2 Reactors 100 3.85 385
3 Absorption column 1 50 50
4 Deionizer 1 1 1
5 Pumps 3 0.3 0.9
6 Blower 1 0.1 0.1
7 Storage tank sealed 1 1.5 1.5
8 Miscellaneous 1
Total 500


48
DIRECT COST FACTOR (Table 5)
S.No Items Direct Cost Factor
1 Delivered cost of major equipments 100
2 Equipment installations 15
3 Insulation 15
4 Instrumentation 15
5 Piping 75
6 Land and building 30
7 Foundation 10
8 Electrical 15
9 Clean up 5
Total direct cost factor 280

Direct plant cost = (Delivered cost of major equipments)
X (Total direct cost factor)/100
Direct plant cost = (500 x 280)/100
= 1400 lakhs
INDIRECT COST FACTOR (Table 6)
S.NO ITEMS INDIRECT COST FACTOR
1 Over head contractor etc 30
2 Engineering fee 13
3 Contingency 13
Total indirect cost factor 56

Indirect plant cost = (Direct plant cost) x (Total indirect cost factor)/100
= (1400 x 56)/100
= 784 lakhs

Fixed capital investment in process area, IF = Direct plant cost
+ Indirect plant cost
= 1400 + 784
= 2184 lakhs



49
B.THE CAPITAL INVESTMENT IN THE AUXILLARY SERVICES,IA

Such items like steam generators, fuel stations and fire protection facilities are
commonly stationed outside the process area and serve the system under
consideration.
Table 7:
S.No

Items Auxillary Service Cost Factor
1 Auxiliary buildings 5
2 Water supply 2
3 Electric main substation 1.5
4 Process waste system 1
5 Raw material storage 1
6 Fire protection system 0.7
7 Roads 0.5
8 Sanitary and waste disposal 0.2
9 Communication 0.2
10 Yard and fence lighting 0.2
Total 12.3

Capital investment in the auxillary services = (Fixed capital investment in process
area) x (Auxiliary services cost )/100
= (2184 x 12.3)/100
= 268.632 lakhs
Installed cost = Fixed capital investment in the process area
+ Capital investment in the auxiliary services
= 2184 + 268.632
= 2452.632 lakhs


50
C.THE CAPITAL INVESTMENT AS WORKING CAPITAL, IW
This is the capital invested in the form of cash to meet day-to-day operational
expenses, inventories of raw materials and products. The working capital may be
assumed as 15% of the total capital investment made in the plant (I)
Capital investment as working capital, IW = ((2184 + 268.632) X 15) /85
= 432.817 lakhs
Total capital investment, I = IF+ IA + IW
= 2184 + 268.632 + 432.817
= 2885.449 lakhs
ESTIMATION OF MANUFACTURING COST
The manufacturing cost may be divided into three items, as follows
A. Cost proportional to total investment
B. Cost proportional to production rate
C. Cost proportional to labour requirement
A. COST PROPORTIONAL TO TOTAL INVESTMENT
This includes the factors, which are independent of production rate and
proportional to the fixed investment such as
- Maintenance- labour and material
- Property taxes
- Insurance
- Safety expenses
- Protection, security and first aid
- General services, laboratory, roads, etc.
- Administrative services
For all this purpose we shall charge 15% of the installed cost of the plant
=( Installed cost x 0.15)
= 2452.632 x 0.15
= 367.894 lakhs
B. COST PROPORTIONAL TO PRODUCTION RATE
The factors proportional to production rate are
- Raw material costs
- Utilities cost-power, fuel, water, steam, etc.
- Maintenance cost
- Chemical,warehouse,shipping expenses

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Assuming that the cost proportional to production rate is nearly 60% of total capital
investment,
Cost proportional to production rate = (Total capital investment x 0.6)
= 2885.449 x 0.6
= 1732.269 lakhs
C. COST PROPORTIONAL TO LABOUR REQUIREMENT
The cost proportional to labour requirement might amount 10% of total
manufacturing cost.
Cost proportional to labour requirement = (367.894 + 1731.269) x
(0.1)/(0.9)
= 233.240 lakhs
Therefore, manufacturing cost = (364.894 + 1731.269 + 233.240)
= 2332.403 lakhs

SALES PRICE OF PRODUCT
Market price of Formaldehyde = Rs.15 /kg
Production rate = 21196.8 TPA
Total sales income = 3179.52 lakhs

PROFITABILITY ANALYSIS
A.DEPRICIATION
According to sinking fund method: R= (V- VS) I/ (1+I)
n
R = Uniform annual payments made at the end of each year
V = Installed cost of the plant
VS = Salvage value
N = Life period (assumed to be 15 years)
I = Annual interest rate (taken as 15%)
R = (2452.632 x 0.15) / ((1+ 0.15)
15
-1)
= 51.547 lakhs
B.GROSS PROFIT
Gross profit = Total sales income Manufacturing cost
= 3179.52 2332.40
= 847.117 lakhs


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C.NET PROFIT
It is defined as the annual return on the investment made after deducting
depreciation and taxes. Tax rate is assumed to be 40%
Net profit = Gross profit Depreciation (Gross profit x Tax rate)
= 847.117- 51.547-(847.117x 0.4)
= 456.723 lakhs

D.ANNUAL RATE OF RETURN
RATE OF RETURN = (100 x Net profit) /Installed cost
= (100 x 456.723)/2452.632
= 18.619%
E.PAYOUT PERIOD
Payout period = Depreciable fixed investment /(Profit + Depreciation)
= 2452.632 / (456.723 + 51.547)
= 4.825 years


16. CONCLUSION

The metal oxide process was selected for the manufacture of formaldehyde.

From mass balance and energy balance, the various equipments were designed
and cost estimation was made. The payout period was found to be 5 years. Hence the
project is feasible .




53

REFERENCES




1. Austin , G.T. Shreves Chemical Process Industries,Fifth edition McGraw-
Hill,1984

2. Charles E.Dryden , Outlines of Chemical Technology for 21
st
Century, Third
edition , NEW YORK PRESS,1997

3. John Mc.Ketta - Encyclopedia of Chemical Technology,vol 8,1997

4. Kirk and Othmer - Encyclopedia of Chemical Technology,vol 11,1997

5. Mccabe, Smith and Harriot - Unit Operations in Chemical
Engineering ,sixth edition,McGraw Hill,2001

6. Perry, R.H., and D.W. GREEN , Perrys chemical engineers Handbook,
Seventh edition, McGraw-Hill,1997.

7. Robert E.Treybal - Mass Transfer Operations, Third edition, 1984.

8. Ullmann - Encyclopedia Of Chemical Technology, Vol. A11, 1997.