Appendices of the Final Report index

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Appendices of the Final Report index ... 1

1 Appendix 1: project description (R002) ... 2

2 Appendix 2: Group profile (E001) ... 8

3 Appendix 3: Advanced activity assistant (example) ... 9

4 Appendix 4: Initial time-line ... 10

5 Appendix 5: Group rules (R001) ... 11

6 Appendix 6: Piquar ... 14

7 Appendix 7: Creativity methods (R002) ... 23

8 Appendix 8: Feedstock product and by product specifications (R101) 27 9 Appendix 9:Dow fire F&EI ... 38

10 Appendix 10: Waste and byproduct streams (R103) ... 41

11 Appendix 11: Economics DS1 (R104) ... 42

12 Appendix 12: European environmental legislation ... 47

13 Appendix 13: Utilities and auxiliaries (R106) ... 52

14 Appendix 14: Preliminary mass balances DS6 (R107) ... 53

15 Appendix 15: Diesel additives (R108) ... 54

16 Appendix 16: Quality of water (R109) ... 57

17 Appendix 17: Pure component properties ... 59

18 Appendix 18: Fischer-Tropsch technology (R201) ... 65

19 Appendix 19: Synthesis gas production key technology (R202) .... 75

20 Appendix 20: Product workup key technology (R203) ... 83

21 Appendix 21: Mass balances Design space 2 (R204) ... 90

22 Appendix 22: Dow F&EI DS2 ... 97

23 Appendix 23: Block scheme Design space 2 (App201) ... 104

24 Appendix 24: Block scheme with mass flow BOD (App303) ... 104

25 Appendix 25: Tasks DS3 (App302) ... 105

26 Appendix 26: Syngas production states (R301) ... 108

27 Appendix 27: Fischer-tropsch states (R302) ... 114

28 Appendix 28: Product work up states (R304) ... 122

29 Appendix 29: Mass balances DS3 (R305) ... 129

30 Appendix 30: FT reactor evaluation (R305) ... 136

31 Appendix 31: H2 separation technologies (R306) ... 143

32 Appendix 32: Flow sheet selection (R307)... 148

33 Appendix 33: Dow F&EI DS3 (R308) ... 161

34 Appendix 34: Syngas thermodynamics (R309) ... 166

35 Appendix 35: Chosen flow sheet DS3 (R310) ... 173

36 Appendix 36: Basis of Design ... 174

37 Appendix 37: Product isomerization configuration selection (R401) 215 38 Appendix 38: FT catalyst selection (R402) ... 223

39 Appendix 39: Rates of change Syngas production (R404) ... 225

40 Appendix 40: Rates of change FT section (R408) ... 232

41 Appendix 41: Rates of change distillation columns (R405) ... 242

42 Appendix 42: Rates of change hydrocracker (R406) ... 269

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44 Appendix 44: Flow sheet upgrade selection (R409) ... 290

45 Appendix 45: Dow F&EI DS4 (R410) ... 300

46 Appendix 46: Aspen model results (R411) ... 305

47 Appendix 47: Aspen report file ... 321

48 Appendix 48: summary of streams (E501) ... 322

49 Appendix 49: Final stream table with HEN (E503) ... 324

50 Appendix 50: HEN (R501) ... 335

51 Appendix 51: Heat exchangers (R502) ... 342

52 Appendix 52: Equipment design FT reactor (R601) ... 345

53 Appendix 53: Equipment design ATR (R602) ... 358

54 Appendix 54: Equipment design Vapor/liquid separators (R603) 362 55 Appendix 55: Equipment design distillation columns (R604) ... 366

56 Appendix 56: Equipment design compressors and pumps (R605)378 57 Appendix 57:Equipment design hydrocracker (606) ... 383

58 Appendix 58: Equipment design isomerization reactor (R607) .... 388

59 Appendix 59: not available ... 391

60 Appendix 60: Economic evaluation of the design (R608) ... Fout! Bladwijzer niet gedefinieerd. 61 Appendix 61: Dow F&EI (R609) ... 405

62 Appendix 62: Equipment summary & specification (App601) ... 412

63 Appendix 63: Hazop study (R307) ... 421

64 Appendix 64: Applied control strategies (R702) ... 427

65 Appendix 65: Final flowsheet (P501) ... 435

66 Appendix 66: Minutes ... 444

Appendix 1: project description (R002)

1.1 PROJECT DESCRIPTION, CONCEPTUAL PROCESS

DESIGN (ST4931)

TITLE OF THE PROJECT:

Design of a plant producing 500,000 tonnes/annum synthetic oil products from natural gas, using Fischer-Tropsch technology

PROJECT NUMBER:

CPD-3294

COURSE INSTRUCTION:

Process Systems Engineering, DelftChemTech, DelftUT Julianalaan 136, 2628 BL Delft

Ir. Pieter Swinkels,

P.L.J.Swinkels@tnw.tudelft.nl

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Austine Ajah

A.N.Ajah@tnw.tudelft.nl

CREATIVITY/GROUP PROCESS COACHING:

P.L.J.Swinkels@tnw.tudelft.nl

Process Systems Engineering, DelftChemTech, TUDelft

1.1.1 Julianalaan 136, 2628 BL Delft Tel: 015 - 2786327

PROJECT PRINCIPAL:

P.L.J.Swinkels@tnw.tudelft.nl

Process Systems Engineering, DelftChemTech, TUDelft Julianalaan 136, 2628 BL Delft Tel: 015 – 2786327

Team Members:

Costa, Daniel

D.J.Costa@student.TUDelft.NL

Demon, Guillano

G.L.Demon@student.TUDelft.NL

Lakerveld, Richard

R.Lakerveld@student.TUDelft.NL

Ir. P.L.J. Swinkels, 12 May 2003

1.2 PROJECT OBJECTIVES & DESCRIPTION

Synthetic oil products produced through Fischer-Tropsch synthesis are predominantly linear and can be sold either as fuels or as chemicals. The production of chemicals may be profitable now, but the market is expected to saturate easily as more plants are brought on stream. Thus, the ultimate role for Fischer-Tropsch synthesis lies in the production of transportation fuels [Xu, 1998].

The CPD-project focuses on the production of diesel (C15-C20) and, kerosene (C10-C14) from natural gas.

Due to the reaction mechanism of the Fischer Tropsch synthesis, it is not possible to synthesise selectively a certain product fraction. A consequence of this is that when diesel and kerosene are the desired products, there are two options. The first option is to produce a large by-product stream consisting of light by-products. The second option is to produce a large stream of heavy by-products, where the amount of diesel

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and kerosene can be further increased by hydro-cracking the heavy by-products. The latter route should be chosen for this design.

The objective of this conceptual process design project is to design a plant producing 500,000 tonnes/annum synthetic oil products out of natural gas, using Fischer-Tropsch technology. The plant will be located in a remote area: Brunei, South-East Asia.

The target products are diesel (C15-C20), kerosene (C10-C14). Naptha (C5-C9) and LPG (C2-C4) will be accepted as by-products. For the 500,000 t/a capacity diesel, kerosene and naphta are included.

The ‘standard’ utilities are assumed to be available on-site, as part of a larger complex.

The natural gas will be transported to the site from the well by pipeline. The design will be compared to an alternative design made in the past. Therefore, price levels related to 1999 should be used.

In addition only literature information regarding conversion technologies from 1998 and before should be used. Any information regarding technical developments after 1998 should be discarded. This will allow a fair comparison between this and the alternative design.

Recently, another design team has already completed the initial steps of a conceptual design using the Delft Design Matrix. The reports of Design Spaces 0,1 & 2 will be made available as starting point [5]. It is the task of this design team to critically review these design reports and correct any mistakes and implement any improvements. This should lead to an improved conceptual design. It should be mentioned that the members of this design team have left the company and are not accessible. The reports [5] are the only information available.

During this design project the guidelines in [1] should be carefully followed.

The deliverables are (see for more details [1, 3,4]:

Activities planning (including use Delft Design Matrix, Advanced Activity Assistant, group and creativity methods)

Preliminary Basis of Design Report and Final Design report as described in reference [1] (including extra copies of process flow sheet and CD-ROM, etc.);

Formal presentations of Kick-off meeting, Preliminary Basis of Design and Final Review Meetings;

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1.3 ORGANISATION AND SCHEDULE CPD-3294:

The team is responsible for communication between the team and the Principal, coach and course instructors, i.e. appointments for meetings, writing of minutes, distribution of the report, inviting representatives for the Assessment Meeting, organising presentation facilities, etc.

Project Schedule

Date

Time

Location

Issue creativity assignment,

05-05-03 10h00 PSE –Room (1.404)

Delft Design Matrix, Work Process Tools

-12h30 (A.Ajah)

Submit articles on

Creativity 09-05-03

13h00

e-mail,

(P.L.J.

Swinkels)

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-10h30

Kick-off Meeting:

19-05-03 09h00 Instruktie

Lokaal

(1.507)

(With Principal, incl. presentation)

-11h00

Submission of the Basis of Design Report:02-06-03 9h00 Paper Mail Box

(remote: also by

e-mail)

Review of the Basis of Design:

04-06-03 09h30

PSE

Conference

-11h30 Room TU

Delft

(with Principal, incl. presentation)

Submission of the Final Report:

28-07-03 16h00 Paper Mail Box

Assessment Meeting: 06-08-03 9h30

PSE

Conference

-13h00

Room

TUDelft

(with Principal, incl. presentation)

The team will be given access to the Group’s facilities on the TUD Blackboard

system (st4931/groups/3294).

1.4 LITERATURE

1. Prof. Ir. J. Grievink, Ir. C.P. Luteijn, Ir. P.L.J. Swinkels, 2002, “Instruction Manual Conceptual Process Design”, Rev. C., July 2002.

2.

Xu, L., Bao, S., O’Brien, R.J., Raje, A., Davis, B.H., 1998, “Don’t

rule out iron catalysts for Fischer Tropsch synthesis”, Chemtech January, 47-53

.

3. Ir. P.L.J. Swinkels, A.N. Ajah, Hand-outs Presentation on 14 February 2003.

4. Prof. Ir. J. Grievink, et.al., Draft hand-out Delft Design Matrix.

5. Preliminary Design Reports on Design Spaces 0, 1 and 2, CPD3287, see server:tnw-student1 server/…./cpd3294

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Appendix 2: Group profile (E001)

CPD Designers Group Profile

Every team m em ber com pletes the Personal Profile Sheet

Com bine the data from the Personal Profile Sheet into the Group Profile Sheet (see exam ple)

>=2 strenghts/no weaknesses 1. Make the font size of the FOUR aspects that you consider your personal strengths: 16 1 strength or 3 strenght/1 weakness

2. Make the font size of the FOUR aspects that you are less strong : 8 no strenght/no weakness or 2 strenght/1 weakness

3. Leave the rem aining aspects at font size 12 1 weakness or 1 strength/2 weakness

4. Give cell color coding as indicated on the right. >=2 weaknesses

Technical Insight

Systematic Thinking (st

Deep interest in CT topics (st3)

Economics (st1,st2)

Accuracy(st1,st2),

Accuracy(st3)

Reporting Creativity (st2) onnections various courses CT c

Hard working(st1,st3)

Mathematics Intuition(st1, st2)

Persistent in problem situations(st1,st3)

Long-term vision (st1,st3),

Long-term vision

Cooperation(st1)

Planning (st1,st3)

Making right choices ieve Solid (but not creative) Res

Leadership(st2)

Coordination (st3) Domain Knowledge Self-criticism (st2)

persuasiveness (st3)

Presentation skills perseverance

Please indicate on the dotted line, one, two or three aspects which you consider useful for FVO-work, and which you m iss in this profile

Date: May-03

Nam e: D. Costa (st1), R. Lakerveld (st3), G. Dem on (st2)

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Appendix 3: Advanced activity assistant (example)

In the table below a preview of a part of the AAA is presented the whole AAA is available on disk.

Activity Description

Individual actor or

team executing Objective of Activity

000.00 Design Space O Preparation start CPD

001.00 Reading CPD manual Team Get familiar with the CPD guidelines

002.00 making appointment with A.Ajah Team Appointment for presentation to learn about DDM

002.10 presentation about DDM Team Learn more about DDM

003.00 search articles on creativity Team Find articles to create the creativity task

003.10 read articles Team -

003.20 write creatvity task Daniel Improve the use of creative methods in design projects

003.21 write creatvity task Guillano Improve the use of creative methods in design projects

003.22 write creatvity task Richard Improve the use of creative methods in design projects

003.30 reading the creativity tasks Daniel Learn about each others suggestions for creative design 003.31 reading the creativity tasks Guillano Learn about each others suggestions for creative design 003.32 reading the creativity tasks Richard Learn about each others suggestions for creative design 003.40 submitting tasks to Swinkels & Coach Team Reviews of articles by Swinkels & Coach

004.00 reading DDM handout Team Get familiar with the DDM

005.00 making appointment for PSD evaluation Team Appointment for evaluating PSD tasks 005.10 evaluate PSD tasks with Prof. Grievink Team Evalute PSD tasks

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Appendix 4: Initial time-line

The table below represents a part of the time-line that was set at the beginning of the project. The complete intial time-line is available on disk.

Task

Start date Finish date Duration

Design Space 0

5-May-03 19-May-03 11 preparation start

Kick-off meeting 19-May-03 19-May-03 1 Design Space 1 20-May-03 22-May-03 3 supply + input/output Design Space 2 23-May-03 27-May-03 3 Sub-processes Design Space 3 28-May-03 01-Jun-03 3 States and tasks

Submit BOD 02-Jun-03 02-Jun-03 0

Review/change BOD 2-Jun-03 3-Jun-03 2 Design Space 4

11-Jun-03 22-Jun-03 8 units

Design Space 5

23-Jun-03 29-Jun-03 5 Process wide integration

Design Space 6 30-Jun 9-Jul-03 8 Equipment design Design Space 7 10-Jul-03 16-Jul-03 5 System integration Design Space 8 Flowsheet optmisation

Finish report 17-Jul-03 25-Jul-03 7

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Appendix 5: Group rules (R001)

1.5 Summary

In this document an overview is presented of the group rules we have made.

1.6 Introduction

To keep a tight schedule and to be able to achieve all presented deadlines it is important to make some group rules. The group rules are made sustain good coordination and smooth cooperation between the team members. With these rules we can clearly define the function of all the members in the group. We only stated a few “guidelines”, because a certain degree of freedom is necessary to have a good functioning group, were every body can relate to the rules. Further for all the other tasks we believe that trough good communication and ‘self regulation’ we can bring the project to a good end. We think that this can prevail because we have a fairly small group.

Group structure:

The group members are  Costa, Daniel  Demon, Guillano  Lakerveld, Richard.

The important managerial positions in the group are:  The group manager

 The creative manager  And the secretary.

In the DS 0 Guillano is appointed as the group manager. Richard is appointed for the secretarial position. And the task of creative manager is appointed to Daniel. It is not certain if this will be the division of the tasks throughout the whole project, during the project we shall further decide. Group rules:

Good communication, ‘conference’ between all team members is preferable in all aspects of this project (decision making, division of tasks, absence etc.). Each team member, upon arrival should check the AAA.

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For the appointed tasksIf a tasks is completed the members are expected to fill in the date of completion and add the link of the document to the AAA. Every completed document should be thoroughly checked by all the team members. If one task is completed, take upon you another task that still should be done. It is important to keep the deadlines that are set. Everybody is expected to work at least 40 hours in a week. The filling in of these hours is negotiable with team membersEach member should be present at the meetings. And is expected to be up to date with the topic of discussion of the meeting. Richard makes a back-up of all the documents after every design space on cd. If one makes a reference to a literature source it should be done in the following way: (author, year). The full literature source should be displayed in the bottom of the document

1.7 Documentation

In order to obtain one single layout of documentation a standard template is made (template. dot). The standard font is Verdana and there are 3 headings specified. We have also made a standard layout the basics are:

 Table with important document information  Summary

 Table of contents  Introduction

 Chapters may be chosen by author  Conclusion

 Literature

Furthermore we use automatic indexes for the tables and figures. The description of the tables is stated above the table and for figures below the figure. We use “justify” as the page layout. Between every paragraph we leave two empty lines. Whenever there is made a reference to a certain literature source, this should be displayed with the name of the author and the year of publication between brackets. The full literature source should be displayed in the final chapter of the document. All the files that are produced are documented in an organized way. Each file has a code and the title. The code consists of the type of document (R for reference, M for minute, MEM for memo and E for excel files). After the document type comes the design space number followed by the document number. The save format of the file should also contain the title of the document, for example the eight reference file of design space 1 which has as subject mass balances is stored in the following way:

R108 – Mass balances.doc

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In this document an overview is presented for the group rules and the way documentation should be done.

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Appendix 6: Piquar

This appendix contains an overview of the group piquar numbers, and the development of the piquar during the project. In each chapter the piquar numbers of that particular design space are presented and in the end the piquar development is shown in a graph.

1.9 Piquar DS1

Piquar numbers for Design Space 1 Average Piquar numbers for criteria

Name Piquar number Criterion Value

Daniel 0.5321 Product quality and quantity 0.67

Guillano 0.5318 Safety 0.37

Richard 0.5191 Sustainability 0.47

Average 0.527666667 Low production cost of end-product 0.37

Highest 0.5321 Operability 0.50

Lowest 0.5191 Good communication and documentation 0.80

Return on Investment 0.20

Maximum availability 0.63

Innovative design 0.47

Keeping deadlines and good planning 0.80

Use of tools (DDM, AAA, creativity tools) 0.63

Unquality Team spirit during design 0.93

Criterion Value

Product quality and quantity 0.067333333 Lowest Piquar number for criteria

Safety 0.097533333 Criteria Grade

Sustainability 0.061333333 Product quality and quantity 0.6

Low production cost of end-product 0.067133333 Safety 0.3

Operability 0.048 Sustainability 0.4

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Return on Investment 0.0536 Operability 0.5

Maximum availability 0.0176 Good communication and documentation 0.7

Innovative design 0.0256 Return on Investment 0.1

Keeping deadlines and good planning 0.0078 Maximum availability 0.5

Use of tools (DDM, AAA, creativity tools) 0.009533333 Innovative design 0.3

Team spirit during design 0.001466667 Keeping deadlines and good planning 0.7

Quality 0.527666667 Use of tools (DDM, AAA, creativity tools) 0.6

Team spirit during design 0.8

1.10 Piquar DS2

Criterion Value

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Good communication and documentation 0.020533333 Low production cost of end-product 0.2

1.11 Piquar DS3

Criterion Value

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1.12 Piquar DS4

Criterion Value

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1.13 Piquar DS5

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1.14 Piquar DS6

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Criterion Value

1.15 Piquar DS7

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Criterion Value

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1.16 Piquar graph

PIQUAR DS1 DS2 DS3 DS4 DS5 _DS6 DS7 0.000 0.100 0.200 0.300 0.400 0.500 0.600 0.700 0.800 0.900 1.000 Design Space PIQUAR numbers

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Appendix 7: Creativity methods (R002)

1.17 Introduction

Creativity is an important aspect in this CPD-project. Because this project is seen as a real live situation, innovation in the process also plays an important role in creating a process that is technically and economically feasible. From the review of the team-members on a few articles on the stimulation of creativity a summary is made.

In this project the group will apply a few methods to stimulate the creativity of the group in the different design spaces.

1.18 Summary of articles

Creativity is a quality that almost every one has, but nobody can summon up on will. According to the authors creativity is an unnatural process. Creativity is believed to be combination of tacit knowledge, experience and learning. In this process the right side of the brain is responsible for the biggest part of our creative incentive. The brain works as a self-organizing system that usually stores its information in asymmetric patterns. This information stored can be latent or by experience and is usually beneath the surface of our cognitive awareness. That why it is important to find ways to “surface and rearrange” these lose fractions of thought, if we want creative solutions for given problems.

1.18.1 Creative assignment of Richard

Main findings of the creativity task of Richard (Creativity task Richard):  Synectic thinking is a method to help the creativity process,

because this process focuses on linking seemingly disconnected elements.

 Mind mapping is an effective method of notes taking and is useful in the generation of ideas by associations.

 Visualization of pleasing images and the problem is also a useful tool, because people can normally better attack a problem if they can see it. And this enables us to see the situation from a different point.

 Another possible useful creativity method is TRIZ. TRIZ is a combination of algorithms and principles. A key concept is for example how to handle contradictions. Traditionally, trade-off or compromise is used to handle contradictions. TRIZ always seeks a solution without compromise. In this way the situation where a compromise has to be made (which could even be worse than picking one of the articles) could be avoided. This can lead to a final

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solution, which is even better than the compromise (the best features of the ideas are combined in one solution).

 An interesting method to increase creativity is the so-called Fermi’s approach. This means that a large problem, which seems unsolvable at first instance, is divided into a certain number of smaller problems. These smaller problems can be solved and with that the initial problem is also solved. This is interesting, because this is exactly what the intention of the Delft Design Matrix (DDM) is. Therefore the DDM could be a tool to enhance creativity.

 Creating a good and pleasant working atmosphere is also very important in stimulating creativity. Even small things like focusing at one thing at a time, Flexing your mind with games, puzzles etc., taking mental recesses, getting of the auto pilot mode, keeping an open mind for extraordinary ideas, finally also the application some pressure in the form of deadlines can boost creativity in a group

.

1.18.2 Creative assignment of Guillano

Main findings of the creativity task of Guillano (Creativity task Guillano):  In this process the inspiration of the sense of group identity,

importance and purpose among the team members is a favorable to create an ideal environment for creative performance.

 The formation of social groupings such as project teams is preferable, because in these group the tacit knowledge of the individuals can be merged to form solid creative ideas.

 Increasing the physical interaction, both person to object and person-to-person can also stimulate creativity in a group. Here prototyping is plays a very important role.

 Dissociation from the work routine and the problem, while engaging in other social activities is a possibility. In this state also constructive criticism on the progress and ideas can stimulate creativity.

1.18.3 Creative assignment of Daniel

Main findings of the creativity task of Daniel (Creativity task Daniel):

 A method that may be useful is to attack problems from a different point of view. This method states that you must try to describe the problem as a metaphor, create a situation almost similar to the problem but then only a situation, which you can better relate to. And then try to translate the solutions back to the original situation.  Also “Lateral thinking” is believed to improve the creativity. This

provides the opportunity to analyze problems from different perspectives.

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 Give opportunity to individuals to make “crazy suggestion” can give lead to formation if creative ideas. This is because instant judgment can suppress creativity in a team.

 Try to approach problems with different ‘hats’ on. Try to vary the mood in which you approach a problem or solution, for example be very negative or very skeptical etc.

1.19 Implementation of creativity methods during

the CPD-project

A few of the methods proposed in the article and some other methods that were already known could be very helpful. For this reasons those methods will be used by the team during the CPD-project. In order to effectively use these methods, we have also tried to specify the time that is most suitable for the method.

One method that will be used is brainstorming. The method of brainstorming is most suitable at the beginning of a new design space. We intend to keep a brainstorm session at the beginning of each design space. With this method we can generate a lot of ideas that can be used or rejected. The brainstorm session can be further enhanced by means of the mind mapping method. This means that the idea generation is done in a specific way and that the ideas are noted in a specific way, an example of this method can be found at the following web site; mindmapping. At the brainstorm session we try to use synectic thinking. By this method we try to link the different thoughts of each group member and maybe we can generate some new ideas form that. It is also possible to try the link the problem to a different problem that is based on the same principle. After these methods we try to make a selection of the best options. The options can be more effectively evaluated if everyone approaches the options with a different hat on. From the selection we try to apply a TRIZ methodology about contradictions. This means that we try to avoid compromises (sometimes compromises are worse than picking only one of the options) and seek an even better solution. It should be stressed that it is not always possible to determine the best solutions right after a brainstorm session. We think that most of the time more knowledge is required. A suggested way to implement the methods in the CPD project is than:

 Brainstorm session at begin of new design space  Mind mapping

 Synectic thinking to find more solutions  Literature / calculations

 Small presentations of each group member about his findings  Evaluate different options

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 TRIZ: try to avoid compromises as much as possible  Work out final solution

 Iterate back to a previous stage if solution is not sufficient

There are also methods that can be used all the time throughout the project to enhance creativity. Some of them are more a general behavior pattern that we try to encourage:

 Incubation; this includes the dissociation from the work routine. This we intend to apply by taking breaks and try to focus on other things, not work related, during these breaks.

 Another very essential method, which we will try to implement, is the visualization aspect. This we will do by regularly trying to make schematic drawings of the process (flow sheets). And take a peak in the process industry to establish visual contact with the feeds, products and process. Sometimes if a problem is visualized it is more easily to solve.

 Keep an open mind for new suggestions and constructively criticize them; this we will implement by taking all suggestions into account, try defend the suggestions of others. In this way the strong points of the ideas will become clear and then in the group process combine the different ideas to create one whole creative solution.  Also creating a pleasant working atmosphere could be a applicable

method in this project;

 The deadlines given by the client should be watched closely, we also want to make deadlines for ourselves in between with the help of the AAA and the general time-line. Off course you aren’t a good company if you don’t make your deadlines, but watching your deadlines closely can also enhance creativity. The articles state that the knowledge that a deadline is approaching can enhance creativity. This makes sense, because sometimes the pressure is necessary to push the group to the limit and come up with a solution.

1.20 Conclusion

In this document various methods to enhance creativity are discussed. We have divided the methods in roughly 2 groups of methods that we intend to apply during the CPD project. One group consists of brainstorming, mind mapping, synectic thinking and TRIZ. These methods have the best results if you apply them in the correct sequence and on the correct time. Other methods are more related to general behavior and attitude that could result in more innovative design. These methods must be applied more or less the entire time throughout the project.

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1.21 Literature

1. John Humble and Gareth jones, Creating a climate for innovation. 2. Ronald Mascitelli, From experience: Harnessing tacit knowledge to

achieve breakthrough innovation.

3. P.S. Goel, N, Singh, Creativity and innovation in durable product development, Com. Ind. Eng, 1998, pp. 5-8 (35).

4. E.D. Smolensky, B.H. Kleiner, How to train people to think more

creatively, Management development Review, 1995 (8), pp 28-33

5. McKinney, P.T., Tough problems solved with idea conversion, Chem. Eng., October 1987. Found on Internet on 11/05/03 at:

http://www.che.com/archives/search_article.php?searchfile=txt/Vol 94/chevol94_num14_95.html&pub_date=561009600

6. Bono, E. de, Serious Creativity. found on Internet on 11/05/03 at:

http://www.debonogroup.com/serious_print.htm

Appendix 8: Feedstock product and by

product specifications (R101)

1.22 Summary

This report discusses the specifications of feedstock, products and by-products. It was prepared by CPD group 3287 and was checked and reviewed by the current group.

1.23 Specifications & Conditions

1.23.1 Natural Gas

The client has provided the feedstock composition. Fout! Verwijzingsbron niet gevonden. lists the specifications to be used. The high methane content makes this a very suitable feedstock for synthesis gas production, the other hydrocarbons are not a big problem, as they will either be converted to synthesis gas too or will be concentrated in the LPG and naphtha byproducts. Obviously sulfur is not a problem, as there is none in the feed. Nitrogen might be problem for certain catalysts.

Table 1. Specification of Natural Gas. Stream

Name: 1.23.1.1 Natural Gas

Component Units

Specification

Note

s Additional Information (also ref. note number) Availab

le Design

Methane wt% 89.53 1. HS has been removed at the well in a desulphurizer.

Ethane wt% 4.33 Propane wt% 1.29

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Butane wt% 0.68 2. Price as in R105. 3. Source: Lide (1992) 4. Delivery by pipeline 5. Brunei Natural Gas

C5+ wt% 0.42 Carbon Dioxide wt% 2.84 HS wt% 0 (1) Nitrogen wt% 0.91 Total 100 Process Conditions and Price

Temperatur

e K 298

Pressure bara 40

Phase V/L/S V

Price USD/to_n 92.5 (2)

1.23.2 Diesel & Kerosene

Commercial grades: The specifications as given by ASTM (American

Society for Testing and Materials) are most commonly used to specify different diesel grades. These can be found on disk (ASTM D975, TABLE 1). Product price levels are best chosen for grade 2-D low sulphur diesel as specified in this report (as this is the most common grade used for automobiles).

ASTM D1655 specifies different kerosene grades. Again our product is compared to these grades to determine price level. The most probable product is Jet A1, or standard civil aviation fuel.

For the design process, specifications were received from the client

(Table 2 and Table 3). Furthermore 500.000 ton/annum kerosene, diesel and naphtha should be made.

Table 2. Specification of diesel. Stream

Name: 1.23.2.1 Diesel

Component Units

Specification

Note

le Design

C15-C20 wt% 100 1. Price as in R105.

2. Ref: BP Company Ltd. (1977)

3. Ref: Perry, R.H. et.al, Handbook of Chemical Engineers, 6th_Ed.,

McGraw-Hill (1984) Sulphur wt% <0.06 0

Total 100 Process Conditions and Price

Temperatur

e K 323

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Phase V/L/S L Price USD/to_n 120 (1) Pour Point o_C _35.0 Boiling Range oC 250-360 Diesel Index [-] >41.8 Cloud Point 5% ASTM D86 95% ASTM D86 o_C o_C o_C -10 240 350

Table 3. Specification of kerosene. Stream

Name: 1.23.2.2 Kerosene

Component Units

Specification

Note

s Additional Information (also ref. note number) Availab le Design C10-C14 wt% 100 1. Price as in R105. 2. Ref: BP Company Ltd. (1977) Sulphur wt% <0.02 0 Total 100 Process Conditions and Price

Temperatur e K 323 Pressure bara 1 Phase V/L/S L Price USD/to_n 135 (1) Spec. Gravity 15/15 0.82 Boiling Range oC 150-250 Smoke Point mm 13.0 5% ASTM D86 95% ASTM D86 o_C o_C 185 ₂₉₀

LPG & Naphtha

As these are only by-products the process is not to be adapted for products to comply with these specifications. This makes the

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consequences of these specifications on the process much smaller than the diesel and kerosene specifications. The only influence of these products on the process is on the design of the separation systems.

Table 4. Specification of LPG. Stream Name: 1.23.2.3 LPG Component Units Specification Note

le Design

Methane wt% <0.5 1. Price as taken in R105. 2. Ref: William L, Liquefied

Petroleum Gas, 2nd_rev.,

Wiley, New York (1982) 3. Compression and cooling

outside battery limit. C2’s wt% <8

Pentanes wt% <2

C3-C4 wt% >89.5

Total 100 Process Conditions and Price

Temperatur e K 323 Pressure bara 2.5 Phase V/L/S V (3) Price USD/to_n 154.8 (1) Heating Value MJ/kg >49 Boiling Point o_C _-7 Freezing Point oC -150 Density kg/m3 ₅₈₀ Cal. Value Gross J/kg 49·106 Table 5. Specification of naphtha. Stream

Name: 1.23.2.4 Naphtha

Component Units

Specification

Note

s Additional Information (also ref. note number) Availab le Design C5-C9 wt% 100 1. Price as taken in R105. 2. Ref: BP Company Ltd. (1977) Total wt% 100

Process Conditions and Price Temperatur

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Pressure bara 1

Phase V/L/S L

Price USD/to_n 130 (1) API Gravity API 71.5

Boiling Range oC 70-150 ASTM endpoint 95% ASTM D86 o_C o_C 150 ₁₈₅

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1.23.3 Utilities & Auxiliaries

The following utilities and auxiliaries are present on the plant.

1.1.1.1 Oxygen

Table 6. Specification of oxygen. Stream

Name: 1.23.3.1 Oxygen

Component Units

Specification

Note

le Design

Oxygen wt% >99.4 100 1. Delivery by pipeline 2. Source: Air Products

3. Remainder, trace amounts Nitrogen ppm <90 0

CH4/CO2 ppm <20 0

H2O ppm <2 0

Argon ppm (3) 0

Total 100.0 Process Conditions and Price

Temperatur e K 283 Pressure bara 14 Phase V/L/S V Price USD/to_n 27.0 (2)

1.1.1.2 Steam

Superheated steam is considered to be available at the temperatures and absolute pressures given below.

Table 7. Steam properties

Conditions

Steam Class High

Pressure Medium Pressure Low Pressure

p [bara] 40 10 3 T (superheated) [o_C)] 410 220 190 T (condensation) [o_C)] 250 180 133.5 Fouling coefficient: 10 kW/m2o_C Fouling factor: 0.1 m2o_C/kW

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1.1.1.3 Electricity

Table 8. Electricity properties

Power Voltage [V] Current

Low 220 AC

Medium 380 three-phase AC

High 3000-10000 three-phase AC

1.1.1.4 Pressurized Air

Pressurized air is intended for instrumentation and other applications, with the exception of process air. Pressurized air is available at the following conditions:

Table 9. Pressurized air properties

Conditions Value

T [o_{C] 20}

p[bara] 7

Dewpoint [o_{C] -40}_(max.)

1.1.1.5 Water

Table 10. Water properties

Water T [o_C] P _[bara ] H [kW/m2 o_C] Fouling factor [m2 o_C/kW] Demineralized Process Water 15 7 Cooling 20 [1], 40 [2] 3 [3] 2.0 0.5 Remarks 1. Design value 2. Maximum allowed 3. At ground level

1.24 Design Consequences

In this chapter, the design consequences of the product specifications are discussed.

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500.000 ton/year: This large annual production makes a continuously

operated plant economically more efficient. The limit for batch processes is around ~5000 ton/year [1].

Operating time: A continuous process has an annual operating time of

around 8000 hours [8].

Pour point/ Cloud point (diesel only), freezing point (kerosene only): The

pour point is the temperature at which the fuel becomes too solid to flow and can’t be poured [2]. The wax appearance point or cloud point is the temperature at which the first wax crystals can be seen in the liquid. The pour point of diesel is thus always lower than the cloud point. The importance of this specification is that it ensures that the diesel can be used under cold conditions. If the cloud point is –10 o_{C, the pour point is}

generally 4-11 C lower than this temperature. This means that if the diesel product complies with cloud point specifications it automatically complies with given pour point specifications. That is why we will try to achieve a cloud point of –10 o_C.

The freezing point for kerosene is essentially the same property as the pour point for diesel, and just as important. The maximum freezing point temperature is –40 in the US (jet A) and –47 outside the US (jet A1). Both pour/ cloud point can be established using a test on the actual product (ASTM D97/ ASTM D2500 respectively). During the design stage an estimation of the cloud point can be made. Several relations for the cloud and pour points exist. The simplest of these is equation (1) [3]:

1 2

CP n ar

T

   

a x

a

x



k

(1)

With:

TCP: cloud point temperature

xn: molar fraction n-alkanes

xar: molar fraction aromatics

a1, a2, k: constants (for cloud point: 74.9, 28.3, -37.4, for freezing

point:81.3, 62.8, -86.4)

These are very simple equations and can only be used for superficial calculations, when n-paraffin and aromatics fraction are given. When the cloud point is taken as –10 o_{C, this formula gives an n-paraffin fraction of}

0.37, with higher n-paraffin content resulting in higher cloud point. A second calculation method for mixtures of different fuel stocks is given in equation (2) [4]:

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0.03 1 0.03 1 J J n T j j j CP n T j j e v T T e v        



(2) With:

Tj: cloud point temperature of stock j

vj: volume fraction of component j

n: total number of different feed stocks

This equation can be used if it is assumed that the melting point of a pure substance is a good indication of that substance’s cloud point. If the composition and the melting temperatures of all the components are known, the cloud point can be estimated.

Table 11: Melting and boiling point temperatures over a range of n-paraffins [5, 6].

n-paraffin TM (C) TB (C) n-paraffin TM (C) TB (C) CH4 -182 -161 C13H28 -5.3 235 C2H6 -183 -88.7 C14H30 5.8 254 C3H8 -187 -42.1 C15H32 9.9 271 C4H10 -138 -0.45 C16H34 18.1 287 C5H12 -128 36.1 C17H36 22.0 302 C6H14 -95.3 68.7 C18H38 28.2 316 C7H16 -90.6 98.6 C19H40 32.1 330 C8H18 -56.8 126 C20H42 36.8 343 C9H20 -53.5 151 C21H44 40.5 357 C10H22 -29.7 174 C22H46 44.4 367 C11H24 -25.6 196 C23H48 47.6 380 C12H26 -9.6 216 C24H50 54.0 391

The Fischer-Tropsch process’ primary (up to 99 %) product consists of linear alkanes (n-paraffins). If we look at the pure component melting point temperatures of these paraffins (Fout! Verwijzingsbron niet gevonden., [5, 6]) it is noticed that the melting point of C15H32, the

shortest n-paraffin molecule in what is (roughly) the diesel range, is already 15 C above specifications. Using equation (2), a mixture with equal amounts of C15-C20 n-paraffins will have a cloud point of ~27 C,

which is 37 (!) degrees above specifications.

Certain additives can lower melting points, but a cloud point of –10 cannot be achieved with only C15-C20 n-paraffins and small additions of additives.

The same will likely hold for the freezing point of kerosene

This means that a significant degree of isomerization is needed to decrease the cloud point as isomers of n-paraffins have consistently lower melting points. The amount of isomerization required is hard to estimate

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at this level because the mixture will become increasingly complex with increasing isomerization. Isomerization also entails consequences for the other properties of the product, notably boiling range and cetane number (=diesel index).

Specific gravity (kerosene only): the density of the product in relation to

water at 15 C. The density of the kerosene product can be calculated from composition later in the design stage to check compliance with product specs. It is related to the API gravity (a measure for density often used in petroleum literature and in the naphtha specification above) through the following formula [9]:

API Gravity=-131.5 + 141.5/Specific Gravity

Boiling range: The boiling range for diesel is given above between

250-360 C. The boiling range for kerosene is 150-250 C. This, together with cloud point specifications, determines separation characteristics and performance, as well as the income generated. When isomerization is involved, boiling points will be lower than the ones specified for n-paraffins. This will affect the relative kerosene/ diesel production rate. ASTM D86 outlines a test method for distillation of petroleum products at atmospheric pressure. 5 % means that during a batch distillation as specified in ASTM D86 at 240 C a maximum of 5 % of the product should be evaporated. At 350 C 95 % of the product should be evaporated. Looking at the values given in the client specifications it can be seen that diesel and kerosene partly overlap and that thus separation can be tailored towards the more valuable product, providing flexibility.

Diesel index = cetane number (diesel only): Indicates the quality of the

diesel for application in automobiles, with higher numbers being better. Typical minimum standards are set between 40-45. n-paraffins typically have a cetane number of 100-110 [2]. This means that the diesel produced through Fischer Tropsch, optimized for paraffin production, will exceed the diesel index specifications by far. When choosing reactor types and conditions, it is best to strive for the highest possible n-paraffin production, to obtain the best possible diesel.

Cloud point specifications however specify isomerization of the product to decrease cloud point temperature. This results in a certain desired wt % of iso-paraffins. As these have very low cetane number the overall cetane number will become lower. This means that the end product is going to be a compromise between a high cetane number and low cloud point.

An empirical method to calculate the cetane number from density and distillation temperatures is given in ASTM D4737, which could be used to estimate product cetane number during the design stage. Another empirical method given for cetane number calculation uses equation (1) with a , a , k respectively 51.0, 29.4, 45. The product of the Shell SDMS

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process has a cetane index of 70 [7], which points (using equation (1)) to an n-paraffin fraction of ~0.49.

Smoke point (kerosene only): The smoke point gives an indication of the

smoke producing properties of kerosene fuels. Less smoke production is better, both for aviation turbine operation and environmental considerations. The smoke production is measured in millimeters of smokeless flame when burning the fuel in a wick fed lamp, as described in ASTM D1322. A higher flame means less smoke production and thus better fuel, the minimum for our product being 13 mm.

Generally, (n-) paraffins (>99 % of product) outperform any other hydrocarbon in terms of burning efficiency and low smoking tendency. Again isomerization will decrease the smoke point, because iso-paraffins are somewhat harder to burn and will thus cause more coke=smoke formation. Equation (1) can be used to achieve an estimation of the smoke point, a1, a2, k respectively 29.5, -75.6, 25.8.

Sulphur: As the feedstock is nearly sulphur free and no sulphur is added,

at most ppm amounts of sulphur will be present in the product, thus producing very clean diesel. This means that there is no need for sulphur removal.

Phase, Temperature, pressure: After the separation the product will have

to be brought to the right conditions. The product is delivered to storage tanks outside the boundary limits.

1.25 Conclusion

Apart from the diesel/ kerosene/ byproduct quantities the most important variable regarding the product is the degree of isomerization of the n-paraffins produced during Fischer Tropsch synthesis. The degree of isomerization strongly influences:

Cetane number (more isomerization leads to lower diesel burning efficiency)

Cloud point/ freezing point (more isomerization leads to better low temperature performance, both for diesel and kerosene)

Smoke point (more isomerization leads to lower burning efficiency of kerosene fuel)

In this report several equations relating the composition of the final product to these parameters are mentioned, which can be used during the design process to set process parameters. Preliminary results point to a maximum n-paraffin fraction xn,max between 0.37 and 0.49 for diesel.

Apart from isomerization, another possibility would be to blend the product with other petroleum products having lower cloud point and

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(thus) lower cetane number, thus upgrading both products, the F-T-product with respect to cold flow characteristics and the traditional crude product with respect to burning properties (and sulphur content). This would be most attractive if a crude oil refinery is present at the plant location.

1.26 Literature

1. J.M. Douglas, Conceptual design of chemical processes, (1988), McGraw-Hill, p. 108.

2. J.I. Kroschwitz and M. Howe-Grant, Kirk Othmer Encyclopedia of Chemical Technology, (1993), vol. 12, Wiley, New York, p.373.

3. D.J. Cookson et al., Composition-property relations for jet and diesel fuels of variable boiling range, Fuel 74 (1) (1995), p. 70-78

4. S. Saiban and T.C. Brown, Kinetic model for cloud-point blending of diesel fuels, Fuel 76 (14-15) (1997), p. 1417-1423.

5. D.R. Lide, Handbook of chemistry and physics, 81 edition,(2000) CRC Press, Boca Raton, p. 6-48/6-60

6. Same as 5, p. 4-51 7. Same as 1, p. 163 8. Same as 1, p. 73

9. K.B. Peyton, Fuel Field manual, 1998, McGraw-Hill. ASTM specifications can be found at www.ASTM.org D1322 - Smoke Point

D1655 – Kerosene Specifications D2500 – Cloud Point

D4737 – Cetane Calculation

D86 - Distillation of Petroleum Fractions D975 - Diesel Specifications

D97 - Pour Point

Appendix 9:Dow fire F&EI

1.27 Introduction

Safety should be an inherent part of the design of a plant. That is why the Dow fire and explosion index (Dow index) is incorporated through out the design. The Dow index is a hazard ranking system that ranks on the basis of properties of material, quantities, and process conditions and (certain) preventive and protective measures [1].

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1.28 Usage of Dow fire and explosion index

The requirements for the use of the DOW F&EI are listed below.  An accurate plot plan of the plant

 Flow sheet

 Process description and understanding  Summary of process conditions

 Quantities and conditions of key substance  Economic data of equipment

The plant must then be logically subdivided into “process units”. A process unit could be a pump, a compressor, a distillation column or any other process equipment. For those units that are considered pertinent to the system and would have the heaviest impact if a fire or explosion would occur, a Fire and Explosion Index (F&EI) is created. The degree of harm of the F&EI is defined as follows:

1-60 Light 61-96 Moderate

97-127 Intermediate 128-158 Heavy

159 > Severe

Usually indices above one hundred are considered undesired and action must be taken to reduce the risks. This F&EI, together with information on equipment prices and plant layout can produce a MPPD (Maximum Probable Property Damage) and a MPDO (Maximum Probable Days Out) index. The exact procedures for making the F&EI and the MPPD and MPDO are described in Dow’s F&EI guide [2] and Lees [1].

For each space an index is created. For each space the actual index in an excel sheet and accompanying word file is created. The object of design space 1 is an I/O model of the whole plant. Since the Dow index looks at individual process units and their mutual interaction, the index in principle can’t be used for a preliminary estimate of the safety of the whole plant. Though if the plant is seen as one unit it can be used. This is a very rough estimate and should be interpreted as such. MPPD and MPDO can’t be created.

1.29 Dow fire and Explosion Index for DS 1

An excel sheet was used to calculate F&EI. It contains the F&EI form. The excel sheet is available in the file E101 - F&EI DS 1.xls. The following text explains the choices made and the numbers listed in the F&EI form.

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To perform a very rough estimate of the F&EI of the plant on an I/O level, the material factors (MF) of both the feedstock and the products must be determined. The MF with the highest value must be used for determining the F&EI. The MF for mixtures must be determined using table 1 on page 13 of [2].

The feedstock is natural gas. The flash and boiling point of a typical natural gas are approximately -290 o_{F (94 K)} _{and –285}o_{F (97 K)}

respectively. The flammability Nf is thus 4. Since the adiabatic

temperature of decomposition Td of methane (298 K) is well below 830 K,

Td of natural gas will most probably not exceed 830 K. Using Table 1 [2]

this yields a MF of 21. Appendix 1 of [2] tabulates a value of 21 for methane as well. Diesel and kerosene (jet fuel A) are tabulated too. They both have a MF of 10. These are the three most important material streams. Since we are interested in the maximum probable damage, it is sufficient to only make the F&EI for the stream with the highest MF. Since the F&EI is a multiplication of the MF, this yields the highest F&EI and thus the highest risk.

The next steps in making the F&EI are the general process hazards. Now the reaction must be taken into account. Since DS 1 is a combination of different processes, one reaction cannot be determined. The over-all reaction is some sort of alkylation and therefore exothermic. A penalty of 0.5 for 1A is the result. Storage tanks are outside our battery limits, so no penalties for 1C and 1D are given and 1.E 1.F are unknown.

The next steps are the special process hazards. The syngas production occurs at temperatures higher then the flash and boiling point of natural gas. With an auto ignition temperature of 810 K, the process temperature is higher than this temperature as well. So all three penalties apply for 2A. 2B is zero. Because the compositions of the streams and reactors are unknown, it is difficult to determine 2C. In this analysis it is assumed that there could only be a flammable mixture if a lot of oxygen is added to the system due to a process upset or purge failure, penalty is 0.30. 2.D is not applicable, so no penalty for 2D. The methane arrives at a pressure of 40 bara. This is approximately 40 kg/cm2_{. Using figure 2 of [2] this yields a}

penalty of roughly 0.7. It must be multiplied with 1.2 to get the penalty for 2E, so 0.84. There are no low temperatures, so 2F is zero. 2G accounts for the amount of liquids or gasses that can be released in 10 minutes time. With a feed of approximately 600.000 ton/year, in 10 minutes 12 ton or 25.000 lbs can be released. Methane has a DH of 21.5*103_BTU/lb,

so approximately 0.5*109_{BTU can be generated. Using figure 3 of [2],}

this results in a penalty of 1. 2H and 2J are unknown. 2K is estimated using figure 6 in [2]. Since there’s only one unit, the distance is zero and the penalty one. 2L and 2M are again unknown.

This very rough estimate results in a F&EI of 182. According to the Dow index guide this means there is a severe degree of hazard. Safety measurements must be implemented or the design should be altered.

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Because there aren’t much degrees of freedom in this design space so the design is not changed at this point. Furthermore it should be stressed that this calculation is very premature. However we should keep in mind during the next design spaces that the materials we use have a serious risk of fire. Future analysis of the design will result in more accurate and hopefully lower indices.

2 Literature

1. Lees, Frank P..: Loss prevention in the process industries; hazard identification, assessment and control. Vol. 1. Guildford

Butterworth-Heinemann 1996

2. DOW'S PROCESS SAFETY GUIDE, New York, AIChE, 1967.

Appendix 10: Waste and byproduct

streams (R103)

2.1 Waste and by-product streams

2.1.1 Introduction

Although our aim is to produce as little waste as possible, the production of waste is inevitable. The only thing that can be done with the waste is try to minimize is and/or use the produced waste for other “useful” purposes.

Wastes and by-products produced during the process are:  H2O (waste water from FT process)

 CO2 (from syngas, FT process and from burning fuel gas for

heating)

 C (soot, coke from syngas production, FT process and hydrocracking)

 Oxygenates (alcohols from FT process)  Fuel gas (C1-C2) from FT process)

 Nitrogen species (NOx, N2 and NH3 from feed stock released in

different stages)  Naphtha (C5-C9)  LPG (C3-C4)

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1.1.1.6 Waste management

The alternatives we could come up to put the waste and by-product streams to “good use” were:

The water with some dissolved hydrocarbons (alkenes, oxygenates and paraffin’s), produced during the FT process could partially be used as a small recycle for the syngas production. Otherwise it has to be discharged directly into the environment or sent to a wastewater purification unit, depending on the concentration of contaminants. The wastewater purification is outside the battery limits.

CO2 could be partially converted back into CO by the WGS reaction. Extra

hydrogen is then needed and water will be a by-product. CO2 can also be

discharged into the atmosphere. If the CO2 is produced very pure it might

be possible to sell the CO2

Oxygenates will mostly dissolve in water, and can then partially be recycled. A small of amount oxygenates in the diesel and kerosene is not a problem

The fuel gas, LPG and naphtha coming from the system can be burned to produce heat that is required for the different sub processes, it can be flared or it can be sold separately

Wax that is produced could be sold as a specialty product. Another option is to convert as much as possible wax into diesel to obtain a higher product yield.

Appendix 11: Economics DS1 (R104)

Summary

In this report a short first estimate will be made concerning the economics of this project. The excel files that are referred to in this document are placed at the end of the appendix.

2.2 Introduction

For the first estimate of the economics, the prices or costs of products, feedstock, utilities, by-products and auxiliaries are evaluated. After that, the financial margin is calculated, based on the input-output structure of Design Space 1. Then, the outlook for the markets of our products will be discussed shortly.

2.2.1 Prices

The prices found are listed in Table 1. In Table 13 and Table 14, the prices that were used by the 1998 group are listed. The calculation of the prices

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is given in the section Price Conversion. The prices from Table 13 will be used in this design. This decision is explained in the section Price Discussion.

Table 12. Prices of feedstock, products and by-products. Component Price Description

Natural Gas

& Fuel Gas 79.37 USD/107

kcal

Taken equal to the price in 1998 in Indonesia (because it’s closest to Brunei of all countries in the list). From Natural Gas prices for industry, Energy Information Administration.1

Diesel 0.439

USD/gallon Refiner sales price in 1998 (excluding taxes) of No. 2 Distillate, From Annual Energy Review 2001, p.169, Energy Information Administration.

Kerosene 0.465

USD/gallon Refiner sales price in 1998 (excluding taxes) of kerosene, From Annual Energy Review 2001, p.169, Energy Information Administration. Naphtha 0.465

USD/gallon Due to lack of correct price info, it is assumed equal to the price of kerosene. Assumption according to:

Price Relationships in the Petroleum Market An analysis of crude oil and refined product prices, Frank Asche et.al.

Table 13. Prices of feedstock, products and by-products from the 1998 CPD Group [2,3]. S/no Feedstock/Products Price (USD/ton) Reference

1 Natural Gas 92.5 Lide [1992]

2 Oxygen 27.0 Air Products

3 Naphtha 130 BP Company Ltd.[1977] 4 Kerosene 135 BP Company Ltd.[1977] 5 Diesel 120 BP Company Ltd.[1977]

6 LPG 154.8 US Department of

Energy

Table 14. Prices of utilities and auxiliaries from the 1998 CPD Group [2,3].

S/no Utility Unit Price (Dfl unit-1₎

1 HP Steam ton 35

2 LP Steam ton 30

3 Cooling Water m3_0.08

4 Process Water m3_2.5