Ethanolamines from

Ethylene Oxide and

Ammonia

Report
MEA E11A
Cost Analysis
ETHANOLAMINES FROM ETHYLENE OXIDE AND AMMONIA
REPORT MEA E11A

Analysis developed by Intratec

The information in this report is given in good faith and

belief in its accuracy, but does not imply the acceptance
of any legal liability or responsibility whatsoever, by
Intratec for the consequences of its use or misuse in any
particular circumstances.

Published by

Intratec
www.intratec.us

Copyright 2019
Intratec Solutions LLC

All rights reserved. Reproduction of any part of this work

by any process whatsoever without written permission of
Intratec is expressly forbidden. See 'Appendix B. Terms &
Conditions' and 'Appendix C. Report Sharing Terms'.
 ABSTRACT

This report presents a cost analysis of Ethanolamines production from ethylene oxide and ammonia. The
process examined is a typical non-catalytic process for ethanolamine production. In this process,
Monoethanolamine (MEA), Diethanolamine (DEA) and Triethanolamine (TEA) are co-produced in equal
amounts by the liquid phase reaction of an aqueous ammonia solution with ethylene oxide.

The report examines one-time costs associated with the construction of a plant and the continuing costs
associated with the daily operation of such a plant. The analysis assumes a United States-based plant
capable of producing 120 kt of Monoethanolamine per year and includes:

* Capital Investment, broken down by:

- Total fixed capital required, divided in process unit (ISBL); infrastructure (OSBL), contingency and
owner's cost

- Working capital and costs incurred during industrial plant commissioning and start-up

* Operating cost, broken down by:

- Variable operating costs (raw materials, utilities)

- Fixed operating costs (maintenance, operating charges, plant overhead, local taxes and insurance)

- Depreciation

* Raw materials consumption, products generation and labor requirements

* Process block flow diagram and description of industrial site installations (process unit and infrastructure)

This report was developed based essentially on the following reference(s):

(1) 'Alkanolamines from Olefin Oxides and Ammonia', Kirk-Othmer Encyclopedia of Chemical Technology,
5th edition

(2) US Patent 9120720, issued to Scientific Design in 2015

Keywords: Monoethanolamine, MEA, Diethanolamine, DEA, Triethanolamine, TEA, Davy Process

Technology, DPT, Kvaerner
TABLE OF CONTENTS

REPORT BODY

About This Report..........................................................................................................................................................10

Study Objective...................................................................................................................................................10

Report Overview................................................................................................................................................. 10

How to Use this Report?....................................................................................................................................11

Executive Summary.......................................................................................................................................................12

About Monoethanolamine................................................................................................................................ 12

Ethanolamines Production Process............................................................................................................... 13

Economic Analysis............................................................................................................................................. 14

About Monoethanolamine............................................................................................................................................ 15

Description........................................................................................................................................................... 15

Applications..........................................................................................................................................................15

Ethanolamines Production Pathways Diagram........................................................................................... 17

Process Overview.......................................................................................................................................................... 18

Product(s) Generated........................................................................................................................................ 18

Process Inputs.....................................................................................................................................................18

Technology Maturity Assessment.................................................................................................................. 19

Highlights & Remarks........................................................................................................................................ 21

Industrial Site.................................................................................................................................................................. 22

Introduction......................................................................................................................................................... 22

Process Unit Description..................................................................................................................................24

Site Infrastructure Description........................................................................................................................28

Key Process Input and Output Figures........................................................................................................ 32

Labor Requirements..........................................................................................................................................32

Capital Investment.........................................................................................................................................................33

* Available in 'Extended' and 'Advanced' versions only

** Available in 'Advanced' version only
 Fixed Capital....................................................................................................................................................... 34

Working Capital.................................................................................................................................................. 36

Additional Capital Requirements....................................................................................................................37

Total Capital Investment.................................................................................................................................. 38

Operating Costs.............................................................................................................................................................39

Operating Variable Costs..................................................................................................................................41

Operating Fixed Costs......................................................................................................................................42

Depreciation........................................................................................................................................................ 42

Total Operating Cost.........................................................................................................................................42

Product Value Analysis................................................................................................................................................ 44

Corporate Overhead......................................................................................................................................... 45

Return on Capital Employed (ROCE)............................................................................................................45

Process Economics Summary....................................................................................................................................46

Product Value Composition.............................................................................................................................46

Economic Datasheet......................................................................................................................................... 46

Economic Remarks........................................................................................................................................... 48

References......................................................................................................................................................................49

Analysis Methodology................................................................................................................................................... 51

Introduction.......................................................................................................................................................... 51

Bibliographical Research.................................................................................................................................. 51

Process Overview...............................................................................................................................................51

Technology Maturity Assessment................................................................................................................. 53

Examining an Industrial Site............................................................................................................................ 53

Capital Investment Estimating........................................................................................................................ 55

Operating Cost Estimating.............................................................................................................................. 62

Product Value Estimating.................................................................................................................................65

Estimates Limitation.......................................................................................................................................... 67

* Available in 'Extended' and 'Advanced' versions only

** Available in 'Advanced' version only
APPENDIX A - ABOUT INTRATEC................................................................................................................................ A.1

APPENDIX B - TERMS & CONDITIONS....................................................................................................................... B.1

APPENDIX C - REPORT SHARING TERMS................................................................................................................ C.1

APPENDIX D - EXTENDED ANALYSIS*.......................................................................................................................D.1

Utilities Consumption Breakdown............................................................................................................................ D.2

Utilities Consumption Figures........................................................................................................................D.2

Impact of Utilities on Total Operating Cost................................................................................................ D.3

Economic Analysis for Different Capacities.......................................................................................................... D.4

Introduction........................................................................................................................................................ D.4

Capital Investment Comparison.................................................................................................................... D.4

Operating Cost & Product Value Comparison.......................................................................................... D.5

Project Implementation & Construction Schedule............................................................................................... D.7

Materials & Utilities Pricing Data.............................................................................................................................. D.9

Analysis Pricing Basis..................................................................................................................................... D.9

Historical Prices................................................................................................................................................ D.9

APPENDIX E - ADVANCED ANALYSIS**.................................................................................................................... E.1

Process Unit (ISBL) Construction Cost by Functional Unit................................................................................ E.2

Infrastructure Construction Cost by Piece of Equipment...................................................................................E.4

Introduction........................................................................................................................................................ E.4

Construction Cost: Area 90 - Storage Installations................................................................................. E.5

Construction Cost: Area 91 - Utilities Facilities..........................................................................................E.7

Construction Cost: Area 92 - Support & Auxiliary Buildings................................................................. E.9

Site Infrastructure Cost Summary............................................................................................................... E.11

Plant Cost Breakdown per Discipline.................................................................................................................... E.12

Introduction.......................................................................................................................................................E.12

Direct Costs Breakdown............................................................................................................................... E.13

Indirect Costs Breakdown............................................................................................................................ E.14

* Available in 'Extended' and 'Advanced' versions only

** Available in 'Advanced' version only
 Plant Cost Breakdown Summary................................................................................................................ E.15

Process Flow Diagrams & Equipment List........................................................................................................... E.16

* Available in 'Extended' and 'Advanced' versions only

** Available in 'Advanced' version only
LIST OF TABLES

Economic Analysis Summary............................................................................................................................................14

Process Technology Maturity Scale............................................................................................................................... 20

Raw Materials Consumption.............................................................................................................................................32

Labor Requirements........................................................................................................................................................... 32

Plant Cost Estimate Accuracy Range (USD Million)................................................................................................... 35

Owner's Cost Summary.....................................................................................................................................................35

Fixed Capital Summary......................................................................................................................................................36

Working Capital Breakdown............................................................................................................................................. 36

Additional Capital Requirements Breakdown...............................................................................................................37

Operating Variable Costs Breakdown............................................................................................................................ 41

Operating Fixed Costs Breakdown.................................................................................................................................42

Operating Cost Summary..................................................................................................................................................42

Corporate Overhead Costs Breakdown........................................................................................................................ 45

Ethanolamines from Ethylene Oxide and Ammonia - Economic Datasheet.........................................................47

Process Contingency Factor Estimation Methodology..............................................................................................56

Project Contingency Factor Estimation Methodology................................................................................................57

Fixed Capital Estimate Accuracy Range........................................................................................................................61

Maintenance Cost Estimation Methodology.................................................................................................................64

Marketing & Advertising Cost Estimation Methodology............................................................................................66

Research & Development Cost Estimation Methodology......................................................................................... 66

Expected ROCE Factor Estimation Methodology....................................................................................................... 67

Net Utility Consumption Rates........................................................................................................................................D.2

Utilities Share in Total Operating Cost......................................................................................................................... D.3

Capital Investment Analysis for Different Capacities................................................................................................ D.5

Operating Cost & Product Value Analysis for Different Capacities...................................................................... D.6

* Available in 'Extended' and 'Advanced' versions only

** Available in 'Advanced' version only
Project Phases Schedule................................................................................................................................................. D.7

Materials & Utilities Prices (United States).................................................................................................................. D.9

Process Unit (ISBL) Construction Cost by Functional Unit......................................................................................E.2

Area 90 - Storage Installations: Scope Description...................................................................................................E.5

Area 91 - Utilities Facilities: Scope Description...........................................................................................................E.7

Area 92 - Support & Auxiliary Buildings: Scope Description.................................................................................. E.9

Site Infrastructure (OSBL) Construction Cost by Piece of Equipment................................................................ E.11

Plant Construction Cost by Discipline......................................................................................................................... E.15

* Available in 'Extended' and 'Advanced' versions only

** Available in 'Advanced' version only
LIST OF FIGURES

Process Schematic Diagram............................................................................................................................................. 13

Ethanolamines Production Pathways Diagram.............................................................................................................17

Industrial Site Configuration............................................................................................................................................. 23

Monoethanolamine Production Unit - Block Flow Diagram...................................................................................... 25

Plant Cost Summary (USD Million)..................................................................................................................................34

Capital Investment Summary (USD Million).................................................................................................................. 38

Operating Cost Breakdown (USD/mt)........................................................................................................................... 43

Product Value Composition (USD/mt)............................................................................................................................46

Production Cost Report Development Methodology..................................................................................................52

Cost Contribution of Each Utility....................................................................................................................................D.3

Capital Investment (USD Million) Versus Plant Capacity..........................................................................................D.4

Operating Cost Versus Plant Capacity.........................................................................................................................D.5

Implementation & Construction Schedule................................................................................................................... D.8

Process Unit (ISBL) Construction Cost Breakdown.................................................................................................. E.3

Site Infrastructure (OSBL) Construction Cost per Area........................................................................................... E.4

Storage Installations Construction Cost per Piece of Equipment.......................................................................... E.5

Utilities Facilities Construction Cost per Piece of Equipment..................................................................................E.7

Support & Auxiliary Buildings Construction Cost per Piece of Equipment..........................................................E.9

Plant Construction Cost Summary...............................................................................................................................E.12

Direct Construction Costs by Discipline..................................................................................................................... E.13

Indirect Costs Summary................................................................................................................................................. E.14

Process Flow Diagram.................................................................................................................................................... E.17

* Available in 'Extended' and 'Advanced' versions only

** Available in 'Advanced' version only
ABOUT THIS REPORT

Study Objective

This report presents the economics of Ethanolamines production from ethylene oxide and ammonia. The
process examined is a typical non-catalytic process for ethanolamine production.

The primary objective of this study is to explain the cost structure of the aforementioned process,
encompassing capital investment and operating cost figures.

The process design and economics in this report are based on an industrial facility with a capacity of
_______________ per year, a nominal capacity that is globally competitive.

In addition, the economic assessment, developed for the period _________, assumes the construction of a
United States-based industrial facility that includes the infrastructure typically required for such a project.

Report Overview

This report is structured into eight main parts which follow a logical sequence. Each of these parts is
described below.

By way of introduction, the first part – the current chapter – briefly explains the report itself, its structure
and objective. Readers are encouraged to spend a few minutes reading this chapter, so as to make the
most of the study.

In the second part, About Monoethanolamine, the reader will learn the basics of Monoethanolamine itself.
This chapter also covers its applications and major production pathways.

The third part, Process Overview, presents basic aspects of the process studied: products generated,
process inputs, and physico-chemistry highlights.

The fourth part, Industrial Site, describes an industrial plant based on the process under analysis, in terms
of the process unit and infrastructure required. This technical analysis underlies the entire study.

The fifth part, Capital Investment, presents all capital costs associated with the process examined, from
design and erection of an industrial site to plant startup.

Operating Costs of the process are examined in the sixth part. Ongoing costs related to the operation of a
unit based on the process are studied, including operating fixed costs, operating variable costs and
depreciation.

The seventh part, Product Value, targets to estimate the gate cost of the plant final product, by adding
corporate overhead costs and a parcel that will guarantee an expected Return On Capital Employed
(ROCE). It provides an idea of the minimum price at which the product may be sold, and how competitive it
is.

10
The eighth part, Process Economics Summary, summarizes all economic figures presented throughout the
report.

Finally, to address any questions or concerns about the methodologies and procedures adopted in the
development of this report, the reader is referred to the eighth part, Analysis Methodology.

How to Use this Report?

The main purpose of this Report is to assist readers in a preliminary economic evaluation of the production
process approached. It is a valuable support tool for a myriad of activities and studies, such as screening
and assessment of investment options, preliminary evaluation of the economic potential of emerging
production processes, rough assessment of the economic feasibility of industrial ventures, cost estimates
double-checking, preliminary budget approval, research planning, and so on.

Readers must always bear in mind the nature of this report and the resulting limitations on how to properly
use it. Limitations that apply to both technical data and economic assessment presented in this study are
explained below.

Technical Data
The preliminary design of the process, presented in the part Industrial Site, is based on fast techniques that
rely on reduced design efforts. The goal of such preliminary design is exclusively to represent the process
in sufficient detail for supporting capital and production costs estimation within the accuracy expected:
class 4 budgetary estimates. Therefore the technical data presented must not be confused with an actual
conceptual process design, and must not be used as such.

Economic Assessment
The economic assessment presented in this report (parts Capital Investment, Operating Cost, Product
Value Analysis and Process Economic Summary), developed for the period , assumes the
construction of a United States-based industrial facility. This means that capital and production costs
estimates presented are based on several general assumptions (e.g. average market figures for raw
materials, chemicals and utilities prices, labor costs, taxes and duties), believed to suitably portray local
conditions for the period of analysis informed, on a country-level basis.

Accordingly, the economic assessment provided in this report is not meant to fit any specific industrial
venture, which would involve a wealth of specific data and assumptions not herein considered.

11
EXECUTIVE SUMMARY

About Monoethanolamine

Ethanolamines are flammable, colorless, viscous liquids. They comprise three different compounds: (1)
Monoethanolamine (MEA); (2) Diethanolamine (DEA); and (3) Triethanolamine. As the names suggest, they
can be thought as derivatives of ammonia in which the radical CH2-CH2-OH replaces one, two or three
hydrogen atoms.

Ethanolamines combine interesting chemical properties from both alcohols and amines. In the presence of
acids, they may either form acids due to the presence of a basic amine group or esters because of the
hydroxyl group. MEA and DEA always yield salts if they are in presence of organic acids.

Ethanolamines present a wide range of applications in several industries. They may take part, for instance,
in the production of polyurethanes and electronic chemicals.

Although they may present slight changes in their properties, different ethanolamines may be used
interchangeably for similar applications. Some of them are presented below.

In many industrial processes, MEA and DEA are employed in gas treating operations. Aqueous solutions of
MEA (and also DEA) are used to remove contaminants (e.g. carbon dioxide and hydrogen sulfide) from
gaseous streams, such as natural and refinery gas. They can also be a intermediates in the production of
cosmetics, surfactants and emulsifiers.

MEA is also an important intermediate in the production of ethylenediamine and ethylenimine.

DEA can be further employed in the synthesis of herbicides (e.g. glyphosate) and textile specialties.

TEA can be combined with fatty acids the production of detergents and personal care products (e.g.
shampoos, bubble baths). It is also used as a cement additive to control evaporation rate of drying cement.
It also finds use as corrosion inhibitor for drilling hardware.

12
Ethanolamines Production Process

The present analysis approaches Ethanolamines production from ethylene oxide and ammonia.

The process under analysis comprises two major sections: (1) Reaction; and (2) Purification.

Reaction. Ammonia is mixed with water to form an aqueous ammonia solution (45 to 55 wt% of ammonia).
Ammonia is supplied in excess to the reactor, so ethylene oxide is fully consumed in the reaction. Water
also plays an important role accelerating the reaction. The reactions achieve yields from 98 - 99%. The
balance is lost in minor side reactions that generate some heavy by-products, which need to be separated
in the purification section. The final product composition depends exclusively on the molar excess of
ammonia fed to the reactor. The reactor outlet comprises MEA, DEA and TEA, as well as unreacted
ammonia dissolved in water and heavy by-products.

Ammonia recovery. The reaction product is fed to an ammonia stripping column for separating the excess
ammonia present in the mixture. Ammonia/water vapors are recycled to the reaction, while the liquid
bottom product is routed to a two-stage evaporator and then to a dehydration column, where residual
ammonia and water are separated from ethanolamines and also recycled to the reaction area.
Ethanolamines are withdrawn as the bottom product of the dehydration column and transferred to the
purification section.

Purification. The ammonia-free ethanolamines are further separated in three purification columns. Small
amounts of MEA and DEA may also be recycled to the reactor to balance the desired output of each
ethanolamine - MEA/DEA/TEA ratios of 1/3 : 1/3 : 1/3. A small stream of heavy by-products waste is
separated in the TEA purification step.

Process Schematic Diagram

13
 You are Reading a Preview

Intratec Registered Users can read and download full previews for free!

To continue reading register for free or login here