COST ANALYSIS

Cost estimation is a specialized subject and proffesion in its own right.Chemical plants are built
to make profit and also to minise the production cost using different method in different
region.An estimation of investiment requird for the production of ammonia needed before the
profitabilty of projeect can be reviewed .

Cost in plant can be catogorized :

1. Fixed Capital
2. Working Capital

Fixed capital is a plant that is ready to start up it includes :-

1. Design
2. Equipment and interaction
3. Piping Instrument
4. Building and structure
5. Auxiliary facilities such as utilities

Working Capital is an additional investement needed over and above fixed capital to start up a
plant . It includes :-

1. Start up
2. Catalyst cost
3. Raw Material
4. Final cost product

*In this report we are focused on Working Capital .

Ammonia Plant Capacity = 105,000 ton / year

Fixed Capital investement =

Our plant capacity =

Taking that our plants run 330days /year after deducting the normal shut down period

Capacity =
From Peter Timer Haus :-

Working capital = 15% [fixed + working capital]

Total capital investment =

Currency excanhge rate 1$ = 69.40 Rs.

Cost of catalyst

Volume of catalyst used =

Price of catalyst =

Density of catalyst =

Total cost of catalyst =

SAFETY AND HAZARDS

1. Fire and explotion endangerment

Due to high pressure vapour of ammonia , storage of ammonia shpuld not be place to direct
exposure of sunand other sources of heat and should be properly insulted. Furthemore ,
Ammonia vapour are flammable when come in contact in certain percentage of air but since its
hight concentration we very rare to encpunter such an axplotion , therefore the relative explotion
and fire are very minimal can say under control still.

2. Cloting and shielding equipment

Those who are handlign with production ammonia should be provide gas masks which the type
approved by the bureauof Mines , also should provide rubber hats , bootsgloves and suits which
is cotton material , easily accesible safety showers and water tab for washing eyes incase get
contact in to eye.

3. Fire prevention

Fire prevention must place fire extinguisher and every 1-2 km , water and foam tenders , fire
alarm , smoke detectors and also fire hydrates must provide in the plant. Most important must
have first aid kit in power plant.
https://www.google.com/search?q=plant+capacity+tpd&oq=plant+capacity+tpd&aqs=chrome..6
9i57.7940j0j8&sourceid=chrome&ie=UTF-8

https://www.osha.gov/SLTC/etools/ammonia_refrigeration/safety/plant_safety.html

http://stellarfoodforthought.net/15-common-ammonia-safety-issues-your-refrigeration-
personnel-can-control-and-correct/

https://www.epa.gov/sites/production/files/2015-
05/documents/accident_prevention_ammonia_refrigeration_5-20-15.pdf

https://www.dioneoil.com/uploads/6/8/7/4/6874938/plant_design_and_economics_for_chemical
_engineers.pdf