Development of mechanism for project cost estimation

Abstract

Prior to development of a process, at several phases of its development and before giving an attempt to design the process and plant, the process representative must undertake economic evaluations. When used with appropriate values for the adjustable designs and production (construction) parameters, Aspen Process Economic Analyzer (Aspen PEA) and Aspen Capital Cost Estimator (Aspen CCE) software tools provides a highly detailed and accurate cost estimate of the overall project. The process unit to be modeled using Aspen HYSYS software for mass and energy balance calculations includes all major process steps for selective end objective of the process. This process model was coupled with economic evaluation and capital cost scaling in Aspen Process Economic Analyzer and Aspen Capital Cost Estimator to evaluate the project proposal. The necessary initial parameters such as Project Name, Scenario Name, Units of Measure, Wage Rate, Cost Index, Design Criteria, Investment Parameters and other mandatory specification for achieving the estimated cost needs to be indicated. When the sizing specifications of each of the process equipment were specified, the equipment cost and investment analysis on request would be generated through Aspen PEA. In order to generate and report the capital cost estimation of this project, from Aspen PEA it was fed to Aspen CCE, through which the project capital cost estimation was carried out. The results generated through these tools, were evaluated and validated with the existing estimation of the project evaluated. Finally, the results were also compared with quotes obtained by a standard vendor. These analyses were carried out for a Pressure Swing Adsorption Hydrogen (PSA) Unit and for a Propylene Dryer Unit (PDU), for validation of the methodology demonstrated in this thesis and the results were compared with the existing estimation. This methodology promises for firm and immediate evaluation of any proposal and ensures that a preliminary estimation of the project is carried out.