DESIGN PROJECT MEMO [1]

Date: 22nd September 2016

To: Dr. Wendy Ng
From: Choo Wan Thing, Lim Wei Cheng, Maggie Lim, Ooi Ching Yuh, Soh Chek Fong Bryan
Re: Plant design for the production of refined, bleached and deodorized (RBD) Palm Olein (cooking oil)

Summary
This technical memo involves the cost estimation of the refinery plant, economic analysis for the plant to operate
for 35 years, process plant control system and the key issues in plant commissioning, start-up and shutdown. The
cost estimation is done using cost equation obtained from the literatures while the Lang factor is used to estimate
the plant total capital investment. Besides, the Chemical Engineering Plant Cost Index is applied to obtain the
current cost in relation to the inflation rate. The total equipment purchase cost is found to be US$ 11297140.67
and the currency conversion of US$1 to RM4.14 is used. On the other hand, the total production cost (TPC) for
the base case, best case and worse case are estimated as RM 2,558,317,807, RM 2,287,487,635 and RM
3,171,299,033 per annual. According to the economic study performed, the payback period for base case is 3.42
years and the annual net profit is estimated to be RM 6789248392.60. In addition, the plant-wide control system
has been done to optimize the process and ensure plant safety according to Luybens approach. Lastly, the key
issues of plant commissioning, start-up and shutdown processes are identified and further planning are done in
relation to these issues.

1.0 Economic Assumptions and Methods Used

The estimation on purchased equipment cost is conducted based on study estimate, which only involved the
knowledge of major equipment. This estimation has an approximate accuracy up to 30% (Peters, Timmerhaus
and West 2004). The Lang factor has been applied to calculate the plant total capital investment required to
purchase the major chemical process equipment (Seider, Seader and Lewin 2003). On the other hand, the
equipment cost data is obtained from literature such as numerous tables or figures according to a certain size factor
required for a particular equipment (Seider, Seader and Lewin 2003, Peters, Timmerhaus and West 2004). These
equipment cost data obtained from literature are usually calculated based on a certain cost index for the year of
publication. The price obtained from these literature sources is then multiply with the cost index of current year,
i.e. 2016 (Jenkins 2016). In this case, the Chemical Engineering Plant Cost Index (CEPCI) is referred to, while the
current year index is 556.8 (Jenkins 2016). Generally, the size factor of the major equipment of the process is
within the range for cost calculation. The most significant factor that affect the accuracy of cost estimation is due
to the lack of detailed equipment design and lack of price quoting from the vendors (Seider, Seader and Lewin
2003). Besides that, the cost equation obtained from different literature sources have different size factor, which
can affect significantly on the cost obtained. In view of this, the cost equation that result in lower cost is used.
2.0 Capital and Operating Cost Summary
The equipment costing has been calculated using cost data equation with respective size factor obtained from the
literature sources. The total f.o.b. equipment purchase cost is estimated to be US$ 11297140.67 and the detailed
list of equipment costing is shown in Table A-1. Total production cost (TPC) for the base case, best case and
worse case are RM 2,558,317,807, RM 2,287,487,635 and RM 3,171,299,033 per annual respectively as shown
in Table A-2. The basic factors affecting the total production cost (TPC) are purchased equipment cost (PE), Fixed
Capital Investment (FCI) and Total Capital Investment (TCI). The raw material cost differences in the 3 scenarios
are mainly due to fluctuation price of CPO in raw material, amount of labors and fluctuating price of product and
by-products i.e. RBDPO, RBDPS and PFAD as shown in Table A-3. For operating cost calculation, it is assumed
that 10% labors are with more than 5 years of experience, 20% with 2-4 years of experience and 70% of labor with
0-2 years of experience. Besides, the plant is assumed to be operating 330 days annually while off days are used
for scheduled maintenance. The net profit margin of the base case calculated using Equation 1 shown in Appendix
A is 3.28%.

3.0 Economic Analysis Scenario

The base, best and worst case for RBDPO plant with a lifespan of 35 years are analysed. The parameters used for
comparison include total annual production cost, selling price of raw materials and products, total annual revenue,
government tax, return on investment, payback period, net profit, turnover ratio and net cash flow. The salvage

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value is estimated to be 10% of the purchased equipment cost while the government tax for both base and best are
25% and for worst case is 30%. However, there will be 100% tax exemption on statutory income during 5 years
exemption period for Pioneer Status. Hence, the average government tax for both base and best are 21.43% while
for the worst is 25.71%. The payback period for base case is 3.42 years and the annual net profit is estimated to
be RM 6789248392.60. The information used to perform economics analysis is shown in Table B-1 and Table B-
2. A breakeven graph of this project is plotted as Figure B-2 under Appendix B and the sensitivity studies for
discounted cash flow rate based on these 3 scenarios are analysed and shown in Table B-3 and Figure B-1 and
Figure B-4. A cumulative cash position graph for 35 years is also drawn and shown in Appendix as Figure B-3.

4.0 Plant-wide Control Philosophy

Plant wide control philosophy is adapted from Luybens approach (Luyben 1997) in design the control backbone
of the refinery. Based on Luybens design procedure, constructed plant wide scale P&ID is shown in Appendix C
Figure C-1. The risk and hazard of palm oil refinery is relatively lower if compared to petroleum refinery, hence
the control philosophy is focussed on four major elements which is the product purity, production rate, plant
efficiency and safety safeguard. The P&ID has an overall degree of freedom (DOF) of 33 in satisfying Luybens
rule which each liquid line should has only one control valve. The reason which there are 33 DOF is the higher
the DOF, the lower the threshold of significant steady result (Luyben 1997). Thus, the designed control system
also manipulates safety parameters such as temperature and pressure to ensure the plant stability which in turn
insure safety at work place. Safety relief valve is installed at higher temperature and pressure equipment and
product purity is ensured by composition analyser installed at product stream. Flow indicator installed is to monitor
on the plant production rate while control valve is installed at each liquid line to ensure disturbances to system can
be easily tolerate in recovering the plant to steady state for achieving highest plant efficiency. While liquid level
control act as surge and process retention time control also contributed to product purity and plant efficiency as
well (Luyben 1997).

5.0 Key Issues in Plant Commissioning, Start-up and Shutdown

After a new plant was built or renovated, it is essential to carry out plant commissioning process to ascertain every
component and system of the plant is properly designed, assembled, tested, operated and maintained according to
the safety and operation requirement of the plant owner. Plant commissioning process usually carries out by a
trained commissioning team led by a commissioning manager. It includes all process equipment and safety
integrity will undergo functional test and pressure test to examine their functionality and any leakage occurrence.
Piping and process instrument is also cleaned and checked via pressure test to verify their strength and determine
if there is any leakage occurrence. During commissioning period, all equipment is activated including utilities,
power generation system, refinery process system and control system. Initially, the major refinery process is
carried out using water until the wellbeing of pipeline, equipment and instrument is affirmed. During start up, raw
material and process chemicals should be introduced into the system at reduced rate until the reaction is stabilized
and then slowly increase the feed flow rate to designated rate. In contrary, there are two types of shutdown in palm
oil refinery plant i.e. ordinary shut down and emergency shutdown. Ordinary shutdown is carried out every 15
months to conduct maintenance and the process usually takes approximately 30 days to complete. In contrary,
emergency shutdown is initiated when there is critical process failure or equipment damaged that will lead to
disaster. Start-up and shutdown procedure and safety rules such as wearing PPE must be strictly obeyed to prevent
accidents occurrence. Besides, briefing should be conducted and all activities from process should be clearly
written in log book especially during shift change to prevent any miscommunication. The workplace should be
routinely cleaned to avoid accident happened. Detailed description of commissioning, start up and shutdown
procedure is explained in Table D-1.

6.0 Conclusion
As a conclusion, the economic feasibility study shows that the plant is profitable and sustainable with ANP of RM
6.79 million, requires only 3.42 years to breakeven while best case required only 0.34 years. Apart from that, plant
wide control introduced able to ensure process integrity and efficiency. Lastly, plant SOP are outlined for
appropriate standard operation

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AppendixACapital andOperationCost
Table A-1 List of Equipment Costing
Equipment Construction F.O.B Equipment
Equipment Cost Equation Reference
Label material purchase Cost ($)
Pump
P-101 8,025.42
P-201 = = ()0.5 = exp{9.2951 0.6019[ln ] + 0.0519[ln ]2 } 6,456.83 (Seider, Seader
Centrifugal Pump Stainless Steel 316
P-303 CE index of Cp at the year of 2000 = 394 6,976.75 and Lewin 2003)
P-301 7,243.77
Pump Driver

P-101 = = = = 0.316 + 0.24015(ln ) 0.01199(ln )2 50 < < 897.27
33000
P-201 5000 = 0.80 + 0.0319(ln ) 0.00182(ln )2 1 < < 1500 403.33 (Seider, Seader
Electric motor Stainless steel 316
P-303 = exp{5.4866 + 0.13141[ln( )] + 0.053255[ln( )]2 + 0.028628[ln( )]3 0.0035549[ln( )]4 526.00 and Lewin 2003)
P-301 = CE index of = 394 682.47
Storage tank
CPO = exp{6.775 + 0.18255[ln()] + 0.02297[ln()]2 } = 285.1 ( )0.73960 ()0.70684 = 1,624,891.00
Storage tank with vacuum 0.4 (Seider, Seader
5
RBDPO Stainless Steel 316 ( + )( + 0.8 ) = 1.3 ( ) = (0.18 2.2) 10 0.19 2,341,490.00
system and Lewin 2003)
Miscellaneous = + = + CE index = 394 988,891.70
Distillation Column
1
2
The column diameter Dc is found by the formula: = (0.1712 + 0.27 0.047) [ ] =


4
(Sinnott and Towler 2009)


Column Costing: = exp{7.0374 + 0.18255[ln()] + 0.02297[ln()]2 } 222,785.86
(Seider, Seader
Pressure tower with tray DO-301 Stainless Steel 316 0.4
= 237.1 ( )0.63316 ()0.80161 = ( + )( + 0.8 ) = 1.3 ( ) and Lewin 2003)

= (0.18 2.2) 105 0.19 = + = +
2.25
Plate costing is calculated using: = = 369 exp(0.1739 ) =
1.0414
FTT = 1.0 (sieve tray) FTM=1.401 + 0.0724Di CE index = 394
Conveyor
0.63 0.20 (Seider, Seader
Pneumatic Conveyor - = 12000 where, m = solid flowrate (lb/s) L = equivalent length (ft) CE index = 394 85,271.68
and Lewin 2003)
Adsorption column
2
Pressure tower with motor Diameter of column is calculated using: = = 3 (Sinnott and Towler 2009)
4 188,963.22 (Seider, Seader
driven agitator and adsorbent SE-201 Stainless Steel 316 For the costing of vessel is the same as the pressure tower approach used in Distillation Column. and Lewin 2003)
particles (activated alumina) For the costing of adsorbent particles: = 35 where S = bulk volume, ft3 CE index = 394
Baffle Tank
The capacity of baffle tank is only acting as temporary storage for each batch of bleaching, degumming, and (Peters,
Storage tank Stainless Steel 316 deodorizing processes. Thus, the tank capacity is assumed to be 5m3/s and the costing is obtained directly 128,360.70 Timmerhaus and
from Figure 12-53 adapted from (Peters, Timmerhaus and West 2003), pg 558, CE index = 390.4(2000) West 2003)
Scrubber
(Seider, Seader
Electrostatic Precipitator SC-301 Carbon Steel = exp{11.442 0.5300[ln()] + 0.05454[ln()]2 , where S = Gas flowrate, ft3/min CE index = 394 900,919.86
and Lewin 2003)
Dryer
DR-101 = exp{8.0556 + 0.8526[ln()] 0.0229[ln()]2 where W = evaporation rate, lb/hr 9,805.02 (Seider, Seader
Spray Dryer Stainless Steel 316
DRYER02 CE index =394 (2000) 9,761.07 and Lewin 2003)

Centrifuge
0.50
= 47000 where S = tons solid per hour CE index = 394 (2000) (Seider, Seader
Continuous scroll solid bowl SE-202 Stainless Steel 316 154,499.10
and Lewin 2003)
Heat Exchanger
2
= [11.147 0.9186( ) + 0.09790( ) ]
0.13
Shell: Carbon Steel
= 1.75 + ( ) = () 27,716.28243 (Seider, Seader
U-Tube HX-302 Tube: Stainless 100
2 and Lewin 2009)
Steel 316 = 0.9803 + 0.018 ( ) + 0.0017 ( )
100 100
= CE index = 500 (2006)
( ) ( )
B1 = 2 50,219.5477
= [11.667 0.8709( ) + 0.09005( ) ]
( )
HX303 0.13 70,791.5695
= 1.75 + ( )
100
Floating head HX301 209,440.0152 (Seider, Seader
= = ()
HX302 2 67,162.05618 and Lewin 2009)
Stainless Steel 316 = 0.9803 + 0.018 ( ) + 0.0017 ( )
100 100
HX-101 = 53,044.82149
HX-202 CE index = 500 (2006) 8,6043.11559
HX-102 = 1600 +2100A 2,026.840113 (Towler and
Double Pipe
HX-103 CE index = 509.7 (2007) 2,066.160812 Sinnott 2012)

Crusher
(Seider, Seader
Jet Mill K-201 Stainless Steel 316 Cp=34000W^0.39, W= Mass flowrate (Ib/hr) CE index = 500 (2006) 55,817.925
and Lewin 2009)
Bin
0.46 (Seider, Seader
Bin Carbon Steel = 570 , S=Area (ft2) CE index = 500 (2006) 10,844.46
and Lewin 2009)
Continuous Stirred Tank Reactor (CSTR)

= , F= Volumetric Flowrate , = Retention Time (s) = 53000 + 28000 0.8,S = Volume (Seider, Seader
CSTR MX-101 Stainless steel 316 95,172.79449
CE index = 500 (2006) and Lewin 2009)
Vacuum System
For Single stage jet ejector = 1690 0.41 ,S = (lb/hr)/(suction pressure,torr) ,
(Seider, Seader
Three-Stage jet ejector Centralize Stainless steel 316 Cost Multiplying factor = 2.1 x 498,913.1296
and Lewin 2009)
CE index of Cp at the year of 2006 = 500
Compressor

Centrifugal C301 Carbon Steel = 490000 + 16800 0.6, S = driver power,kW 3,009,739.302 (Towler and
CE index of Cp at the year of Jan. 2007 = 509.7 Sinnott 2012)
Polish Filter
By Estimating from Figure 15-45
126,545.4545 (Peters et al.
Centrifuge PF-201 Stainless steel 316 CE index = 396 (2002)
2003)

Plate and Frame PF-301 Ceramic = 110000 + 77000 0.5, S = Volume (m3) 244,746.2705
(Towler and
CE index = 509.7 (2007) Sinnott 2012)
Note: CE index at the year of 2016 = 556.8 (Jenkins 2016)
Total, US$ 11,297,140.67

Total Capital Investment, = 1.05 ( ) , where = 4.3 for solids-fluids processing plant , US$ 51,006,590.11
(Seider, Seader
and Lewin 2009)
Total Capital Investment, = 1.05 ( ) , where = 5 for solids-fluids processing plant , US$ 59,309,988.50

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 2633990146
Profit Margin = 100% = 100% = 3.2806% Equation (1)
2 ,5 5 8 ,3 1 7 ,8 0 7

Table A-2: Total Annual Production Cost ("Trading Economics" 2016; Energy 2016)
C o st Factor B est Base W o rse
(R M/year) (R M/year) (R M/year)

M a n u f a ct u ri n g : P r o d u ctio n C o st ( P C )

R a w M aterial ( F E E D ) - 1,905,130,333.00 2,074,729,813.00 2,599,561,114.00

U t i liti e s ( U ) - 32,151,161.88 45,922,872.24 45,922,872.24

O p er atin g La b o ur ( O L) - 446,160.00 706,080.00 1,418,640.00

O p er atin g S u p er visio n ( O S V) - 462,000.00 852,000.00 1,840,800.00

O p e r atin g s u p p lie s ( O S ) 0.06* O L 39,111.29 61,896.41 124,360.86

M a i nt e n a n c e a n d R e p a ir s ( M R ) 0.045*P E 3,074,986.26 3,074,986.26 3,074,986.26

S u b c o ntractor for m ainte n a n c e ( S U B ) 0.23*P E 15,716,596.49 15,716,596.49 15,716,596.49

L a b orator y char ges ( L) 0.15* O L 97,778.23 154,741.02 310,902.16

D e pr eciatio n T C I/ Lifesp a n 7,349,622.53 7,349,622.53 7,349,622.53

M a n u f a ct u ri n g : Fi x e d C h a r g es ( F C )

Local Taxes (T L) 0.02*F CI 6,464,304.47 6,464,304.47 6,464,304.47

Pr o p ert y I ns ur a n c e ( PI) 0.01*F CI 3,232,152.23 3,232,152.23 3,232,152.23

L a b o u r I ns ur a n c e ( LI) 0.15* O L 97,778.23 154,741.02 310,902.16

F i n a n c i n g I nt er e st ( F I) 0.05*F CI 16,160,761.17 16,160,761.17 16,160,761.17

M a n u f a ct u ri n g : Pl a nt O v e r h e a d C o st ( P O C ) 0.6*( O L + M R + O S V) 2,641,103.26 3,210,836.33 4,702,283.06

M a n uf a ct uring: G e neral Ex p e nses (G E )

A d m i n istr ativ e E x p e n s e s ( A E ) 0.0 2 * S ales 59,395,012.23 76,966,975.23 94,228,675.57

D istrib utio n & M a r keting e xp e nses (D M E ) 0.0 3 * S ales 89,092,518.35 115,450,462.8 0 141,343,013.40

R esearch & D e velo p m e nt ( R & D ) 0.0 4 8 * S ales 142,548,029.40 184,720,740.6 0 226,148,821.40

T o t al M a n u f a ct u ri n g C o st ( M C ) PC+FC+POC 1,985,714,227 2,170,441,781 2,698,840,675.00

T o t al Pr o d u ctio n C o st ( T P C ) MC +GE 2,276,749,786.00 2,547,579,959.00 3,160,561,185.39

Table A-3 Raw Material, Operating Labour, and Product Cost for 3 Scenarios
Base Best Worse
(RM/year) (RM/year) (RM/ year)
Raw Material
Crude Palm Oil 2,060,899,500 1,894,860,000 2,584,857,000
Bleaching Earth 11,484,000 7,923,960 11,484,000
Phosphoric Acid 2,295,843 2,295,843 3,169,584
Water (litre) 50,529.6 50,529.6 50,529.6
Total 2,074,729,873 1,905,130,333 2,599,561,114
Operating Labor
Technician in control room 180,000 120,000 240,000
Technician for process maintenance 126,000 68,400 278,400
Technician for mechanical maintenance 126,000 68,400 278,400
Technician for Electrical maintenance 126,000 68,400 278,400
Labour for QC 126,000 68,400 278,400
Security 84,000 34,200 208,800
Labour for cleaning and transportation 84,000 34,200 278,400
Total 852,000 462,000 1,840,800
Operating Labor
Technician in control room 180,000 120,000 240,000

Technician for process maintenance 126,000 68,400 278,400

Technician for mechanical maintenance 126,000 68,400 278,400

Technician for Electrical maintenance 126,000 68,400 278,400
Labour for QC 126,000 68,400 278,400
Security 84,000 34,200 208,800
Labour for cleaning and transportation 84,000 34,200 278,400
Total 852,000 462,000 1,840,800

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Appendix B Economic Analysis Scenario
Table B-1: Economic Analysis on 3 Scenarios
Base Case Best Case Worst Case
Service Life (yr) 35
Total Capital Investment, TCI (RM/yr) 257,235,893.06
Fixed Capital Investment, FCI (RM/yr) 221,222,868.03
Total Production Cost, TPC (RM/yr) 2,547,579,959.00 2,276,749,786.00 3,160,561,185.39
Total Annualized Cost, TCA (RM/yr) 2,615,472,442.93 3,021,574,663.55 2,322,625,876.44
Purchased Equipment Cost, PEC (RM/yr) 46770325.16
Selling Price of Raw Material (RM/ton) 5,153.82 4,794.32 6,614.32
Selling Price of Products (RM/ton) 8,436.02 10,478.24 6,645.28
Depreciation, D (RM/yr) 7349596.94
Total Revenue, TR (RM/yr) 2,633,990,146.00 3,224,725,957.00 2,032,636,419.00
Government Tax, GT (%) 21.43 21.43 25.71
Return on Investment, ROI (%) 26.39 289.55 -325.75
Payback Period, PBP (yr) 3.42 0.34 -0.31
Venture Profit, VP (RM/yr) 6,721,355,908.66 74,482,487,755.47 -83,793,530,895.11
Gross Profit, GP (RM/yr) 86,410,187.00 947,976,171.00 -1,127,924,766.39
Net Profit, NP (RM/yr) 6,789,248,392.59 74,482,487,755.47 -83,793,530,895.11
Turnover Ratio, TOR 0.34 3.69 -4.38
Salvage, S (RM/yr) 4677032.52
Net Cash Flow, NCF (RM/yr) 75,242,080.87 752,174,474.50 -830,585,712.01

Table B-2: Formula for Economic Analysis

Total Annualized Cost, TCA TPC + ROI (TCI)
Total Revenue, TR RBDPOL ton/yr * Selling Price of RBDPOL
Return on Investment, ROI NP/TCI
Payback Period, PBP TCI/NCF
Depreciation, D TCI/Lifespan
Venture Profit, VP NP ROI (TCI)
Gross Profit, GP TR - TPC
Net Profit, NP (1-GT)*GP
Turnover Ratio, TOR GP/ TCI
Salvage, S 10% (assumed) * (PEC)
Net Cash Flow, NCF (1-GT)*(TR-TPC) +D

Figure B-1: The graph illustrating outcome of economics analysis

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 Table B-3: Sensitivity Studies of Discounted Cash Flow Rate of the Best Case

Discount Cash Flow Rate (DCFR) Best Discount Cash Flow Rate (DCFR) Base Discount Cash Flow Rate (DCFR) Worst
Non- Cumulative
discounted Discounted Cumulative Discounted Nondiscounted Discounted Cumulative Discounted Nondiscounted Discounted Discounted
Year flow Cash Flow Cash Flow Year flow Cash Flow Cash Flow Year flow Cash Flow Cash Flow
0 257235893.1 257235893.1 257235893.1 0 257235893.1 257235893.1 257235893.1 0 -830585686.4 -830585686.4 -830585686.4
1 494938607 449944188.2 707180081.3 1 -2540230336 -2309300306 -2052064413 1 -1087821580 -988928708.6 -1819514395
2 74977426362 61964815176 62671995257 2 4249018056 3511585170 1459520758 2 -84881352475 -70149878078 -71969392473
3 1.4946E+11 1.12291E+11 1.74963E+11 3 11038266449 8293212959 9752733717 3 -1.68675E+11 -1.26728E+11 -1.98697E+11
4 2.23942E+11 1.52956E+11 3.27919E+11 4 17827514841 12176432512 21929166229 4 -2.52468E+11 -1.72439E+11 -3.71137E+11
5 2.98425E+11 1.85298E+11 5.13217E+11 5 24616763234 15285073197 37214239426 5 -3.36262E+11 -2.08792E+11 -5.79929E+11
6 3.72907E+11 2.10496E+11 7.23714E+11 6 31406011626 17727874810 54942114236 6 -4.20055E+11 -2.3711E+11 -8.17039E+11
7 4.4739E+11 2.29582E+11 9.53296E+11 7 38195260019 19600207757 74542321992 7 -5.03849E+11 -2.58554E+11 -1.07559E+12
8 5.21872E+11 2.43457E+11 1.19675E+12 8 44984508412 20985605169 95527927162 8 -5.87643E+11 -2.7414E+11 -1.34973E+12
9 5.96355E+11 2.52913E+11 1.44967E+12 9 51773756804 21957126955 1.17485E+11 9 -6.71436E+11 -2.84754E+11 -1.63449E+12
10 6.70837E+11 2.58637E+11 1.7083E+12 10 58563005197 22578573662 1.40064E+11 10 -7.5523E+11 -2.91174E+11 -1.92566E+12
11 7.4532E+11 2.6123E+11 1.96953E+12 11 65352253589 22905566200 1.62969E+11 11 -8.39023E+11 -2.94072E+11 -2.21973E+12
12 8.19802E+11 2.61214E+11 2.23075E+12 12 72141501982 22986505767 1.85956E+11 12 -9.22817E+11 -2.94038E+11 -2.51377E+12
13 8.94285E+11 2.59042E+11 2.48979E+12 13 78930750375 22863426849 2.08819E+11 13 -1.00661E+12 -2.91579E+11 -2.80535E+12
14 9.68767E+11 2.55107E+11 2.7449E+12 14 85719998767 22572754794 2.31392E+11 14 -1.0904E+12 -2.87137E+11 -3.09249E+12
15 1.04325E+12 2.49746E+11 2.99464E+12 15 92509247160 22145978263 2.53538E+11 15 -1.1742E+12 -2.81093E+11 -3.37358E+12
16 1.11773E+12 2.43251E+11 3.23789E+12 16 99298495552 21610245772 2.75148E+11 16 -1.25799E+12 -2.73775E+11 -3.64736E+12
17 1.19221E+12 2.35873E+11 3.47377E+12 17 1.06088E+11 20988894575 2.96137E+11 17 -1.34178E+12 -2.65465E+11 -3.91282E+12
18 1.2667E+12 2.27827E+11 3.70159E+12 18 1.12877E+11 20301919250 3.16439E+11 18 -1.42558E+12 -2.56403E+11 -4.16922E+12
19 1.34118E+12 2.19294E+11 3.92089E+12 19 1.19666E+11 19566386592 3.36005E+11 19 -1.50937E+12 -2.46794E+11 -4.41602E+12
20 1.41566E+12 2.10429E+11 4.13132E+12 20 1.26455E+11 18796802687 3.54802E+11 20 -1.59316E+12 -2.36814E+11 -4.65283E+12
21 1.49014E+12 2.01364E+11 4.33268E+12 21 1.33245E+11 18005437454 3.72808E+11 21 -1.67696E+12 -2.26608E+11 -4.87944E+12
22 1.56463E+12 1.92208E+11 4.52489E+12 22 1.40034E+11 17202611332 3.9001E+11 22 -1.76075E+12 -2.16301E+11 -5.09574E+12
23 1.63911E+12 1.83053E+11 4.70794E+12 23 1.46823E+11 16396948328 4.06407E+11 23 -1.84455E+12 -2.05995E+11 -5.30174E+12
24 1.71359E+12 1.73973E+11 4.88191E+12 24 1.53612E+11 15595599165 4.22003E+11 24 -1.92834E+12 -1.95776E+11 -5.49751E+12
25 1.78807E+12 1.65032E+11 5.04695E+12 25 1.60402E+11 14804437880 4.36807E+11 25 -2.01213E+12 -1.85712E+11 -5.68323E+12
26 1.86256E+12 1.56279E+11 5.20322E+12 26 1.67191E+11 14028234852 4.50835E+11 26 -2.09593E+12 -1.7586E+11 -5.85908E+12
27 1.93704E+12 1.47753E+11 5.35098E+12 27 1.7398E+11 13270808921 4.64106E+11 27 -2.17972E+12 -1.66264E+11 -6.02535E+12
28 2.01152E+12 1.39486E+11 5.49046E+12 28 1.80769E+11 12535160970 4.76641E+11 28 -2.26351E+12 -1.5696E+11 -6.18231E+12
29 2.086E+12 1.315E+11 5.62196E+12 29 1.87559E+11 11823591086 4.88465E+11 29 -2.34731E+12 -1.47973E+11 -6.33028E+12
30 2.16049E+12 1.23814E+11 5.74578E+12 30 1.94348E+11 11137801172 4.99603E+11 30 -2.4311E+12 -1.39323E+11 -6.4696E+12
31 2.23497E+12 1.16439E+11 5.86222E+12 31 2.01137E+11 10478984705 5.10082E+11 31 -2.51489E+12 -1.31023E+11 -6.60063E+12
32 2.30945E+12 1.09381E+11 5.9716E+12 32 2.07926E+11 9847905107 5.1993E+11 32 -2.59869E+12 -1.2308E+11 -6.72371E+12
33 2.38393E+12 1.02645E+11 6.07424E+12 33 2.14716E+11 9244964074 5.29175E+11 33 -2.68248E+12 -1.15499E+11 -6.83921E+12
34 2.45842E+12 96228620764 6.17047E+12 34 2.21505E+11 8670261038 5.37845E+11 34 -2.76627E+12 -1.08279E+11 -6.94748E+12
35 2.5329E+12 90130956827 6.2606E+12 35 2.28294E+11 8123644802 5.45968E+11 35 -2.85007E+12 -1.01417E+11 -7.0489E+12

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 Break Even Curve
Billions
12.000000 Graph of Cumulative Cash Position
11.500000 7E+11
T otal Inc o m e
11.000000 6E+11

10.500000 5E+11
4E+11

Cost (RM)
10.000000

9.500000 3E+11 Linear (Graph of

Cumulative Cash
9.000000 2E+11
Break Position)
Even Gross 1E+11
8.500000 E arnin g
P oint
8.000000 0 Total capital investment
0 10 20 30 40
7.500000 -1E+11
Year
7.000000
Figure B-3: Cumulative Cash Curve
Malaysia Ringgit

6.500000
Total product cost
6.000000

5.500000 Total capital

investment
5.000000
Gross earning
4.500000 T otal
4.000000 Pr o d u ct
C ost
3.500000

3.000000

2.500000
Fixed
2.000000 C ost

1.500000

1.000000 Loss

0.500000 Figure B-4: The graph illustrating outcome of economics analysis

-
0 0.30.60.91.21.51.82.12.42.7 3 3.33.63.94.24.54.8
(0.500000)

(1.000000) 7 | P a g e
Rate of Production (kg/s)

Fi g u re B-2: B rea ke v e n cu rv e of th e pro cess

Appendix C Plant-wide Control

Figure C-1: The control System for the RBDPO Refinery Plant

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Appendix D Plant Commissioning, Start-up and Shutdown
Table D-1 Procedures of Commissioning, Start-up and Shutdown operation (Erickson 1990; Petronas 2000; Jason 2011)
Description Key Issues
Commissioning
Step 1: Preparation, Planning and Training
- Develop a commissioning team that comprise of commissioning
manager, maintenance manager, design and operating engineers,
maintenance engineers, operation technician, chemist and support
staff.
- The area required supervision and training are: refinery, quality
control, maintenance and steam generation unit.
Step 2: Mechanical Completion and Integrity Checking
Ensure appropriate placement and access of equipment (manholes
and path)
- Inspection of machinery equipment and safety instrument by
pressure test, functional test and system test
- Cleaning and flushing of equipment and piping to remove dust, dirt
and containment
Step 3: Plant Pre-Commissioning and Operational Testing
- Ensure all utilities required are commissioned
- Commissioning of the plant can be divided into cold commissioning, - Excess supply of steam or cooling water to the system should be avoided to prevent water hammer occur which will results in rupture of pipeline and equipment
warm commissioning , dry running test and hot running test
Step 4: Start up and Initial Operation
- The plant is ramping up via introducing feed in to the system at
reduced flow rate and then slowly increase
- Start-up personnel and supervisory personnel work closely to ensure
successful operation
- Trouble shooting, problem rectification, engineering correction and
plant modification is carried out
Step 5: Performance and Acceptance testing
- Test run/ warranty run is carried out by the plant manufacturer to
verify the proper function of the plant
- Singing the acceptance letter after completion of successful test
Step 6: Post commissioning
- Warranty period
- Completion of outstanding punch-list item
Start-up following Plant Turnaround Maintenance
Step 1:Preparation and Planning
- Conduction of pre-start-up checklist
Step2: Start-up and Operation
- Introduce feed to the system and commence ordinary operation
Ordinary Shut down
Step 1: Preparation and Planning
- Plan and prepare for the plant shutdown
Step 2: Shutdown Operation
- Maintenance of the equipment and pipeline
Emergency Shut down
Step 1: Preparation and Planning
- Constructing emergency shutdown plan and conduct emergency
response training for relevant personnel
Step 2: Shutdown operation and response
- Ensure all relevant personnel response according to emergency
response plan and procedure
- Recruit and train personnel and a management group to carry out commissioning task
- The commissioning team should include personnel from different major such as chemical engineers, mechanical engineers, chemist, operation technician and experienced managers to oversee the commissioning process.
- Training can be conducted in seminar style whilst the appropriate lecturer will be project manager, commissioning manager or senior manager. Content of the seminar ought to comprise the functional principle and possible risk of the new plant
- Gather information such as equipment operating condition, installation practices, equipment design standard and policies.
- Regular meetings to discuss, prepare and improve the commissioning strategy, start-up and shutdown procedure, commissioning contracts and budget estimation
- Review and finalize the planning to ensure its operation and economic feasibility
- Ascertain all equipment and instrument are fabricated in line with P&IDs provided
- Proper allocation of piping and equipment where space for expansion and contraction is considered
- Functional test for pumps, fittings, equipment (e.g. decanters and centrifuges) to determine if they work properly by consecutively turning on for both a short time and immediately turn off from the control room whilst the commissioning crew controls on-site whether
the respective equipment is turned on or off. In case of malfunction, the reasons have to be identified and eliminated.
- Adjustment can be make for the ease of operation and flow improvements from the operators viewpoint
- Cleaning and flushing of equipment and piping via flushing water, chemical cleaning and pigging operation
- Pressure test for piping system is carried out to identify the strength of the equipment and piping
- Pressure testing for vacuum system can be done by pulling a vacuum and observe the rate of pressure rise in the system
- While pressure test is carried out, visually inspect if there is any leakage especially at the connecting points of the pipes (welding seams, flange connection etc.) , the leakage part should be repair (e.g. retightening of flange connection, exchange of defective gaskets)
- All the utilities such as high pressure steam, cooling water, vacuum system and electrical system should be test to ascertain adequate supply pressure for process operation
- All the circuit breakers and switches are turned on and off to check and ensure the continuity and resistance of electricity and power supply.
- The system will undergo cold commissioning where water is introduced into the system until control levels and then the control system for individual stream or component is initiated followed by activation of the main control (e.g. level controls, flow-through controls).
This is to test and optimize the proportional coefficient, rate times and reset time of PID controllers.
- For hot commissioning, live steam is introduced to the system at low flow rate until all the systems are warmed up. After that, steam traps are placed into service to trap and remove the condensate.
- For dry running and hot running test, equipment temperature is raised to desire temperature and check.
- Initially, raw material and process fluid is fed into the system a reduced rate until reaction conditions has been established.
- Then slowly increase the feed flow rate to designed feeding rate
- Plant and laboratory data is then collected and evaluated
- Should any occurs during the start-up and initial operation, the manufacturer needs to solve the problem by optimization for minor problem or emergency shutdown the plant for major failures.
- A briefing on the plant operation should be given to personnel work at different shift by the supervisors themselves.
- Each shift should have at least two experience managers to oversee the process.
- The commissioning team is responsible to identify the cause of the problem and solve it via trouble shooting, problem rectification, engineering correction or plant modification.
- Each failure ought to be recorded to ensure no repetition in future project.
- Operating conditions i.e. temperature, flow rate, pressure and composition will be examined for consistency and need to be agreed with the operators
- Material and energy balanced performed to verify for its consistency.
- Ensure the product specification is achieved.
- Acceptance certificates will be signed once the plant is confirmed that it has met the Performance and Acceptance test requirements.
- Commissioning staffs are obligated to make adjustments, modification and fault correction if any plant deficiencies occur during the warranty period
- Operating data will be constantly collected to ensure the plant operation consistency are maintained and sustainable
- First routine maintenance is carried out.
- Check the operability of all control valves (PCV,LCV,TCV,FCV)
- Reopen all blinds on the process flow circuits on equipment that is isolated for maintenance
- Ensure inlet and outlet block valves of the pressure relief valves are open while bypass is closed
- Purge air from the system until safe level of oxygen concentration is achieved. Meanwhile, observe is there is any leakage occurrence
- Ensure appropriate lube oil is used for the equipment
- Strictly follow the standard procedure and safety protocols
- Efficient communication to prevent accident resulted from misunderstanding
- Appropriate supervision to ensure successful operation
- Conduct meeting for discussion of shutdown strategy
- Manpower required and their respective responsibilities are clearly distributed. A briefing should be carried out during shift change to avoid miscommunication.
- Shut down of feed inlet stream
- Drain valves are open to discharge remaining chemicals and steam in the system
- Purge remaining liquid and gas from the system via inert gas or water
- Excessive pressure in enclosed equipment should be release to prevent explosion
- Confined space entry permit should be obtained before carry out maintenance work
- Plant manager, general manager, Health and Safety Executive (HSE) and administration department should conduct meetings to produce a detailed emergency shutdown plan that include evacuation path, backup generator for power supply etc.
- Training for relevant personnel and associated production technician about plant emergency response
- Clear distribution of shutdown task to avoid panic of operator during the emergency event
- If possible, carry out ordinary plant shut down procedure
- Turn on backup power generator where there is power supply failure
- All personnel should evacuate according to designed evacuation path and assemble at the assembly point followed by performing head count
9|P a g e
I n divid u al m ajo r a n d mi n o r eq ui p m e nt d esig ni n g

D e sig n er M a jor E q uip m ent M i n or E q uip m ent

C h oo W a n Thing S crub ber Dryer

M a g gi e Li m C r yst alliz er Storage Tank ( Vacuu me d)

Bryan Soh Check Fong D e o d o riz er S&T HE

O oi C hing Y uh A d s o r ptio n C ol u m n 2-P h ase S e p arator

Li m W ei C heng S trip p er C e ntrif u g e

R eference

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Erickson, D.R. 1990. Edible Fats and Oils Processing: Basic Principles and Modern Practices : World Conference Proceedings: American Oil Chemists'
Society.
Jason, Mark. 2011. Plant Commisioning & Startup Procedure. Accessed September 18th https://www.scribd.com/doc/30342462/Plant-Commissioning-Start-
Up-Procedure-1.
Jenkins, Scott. 2016. CURRENT ECONOMIC TRENDS MARCH 2016. March 21. Accessed September 11, 2016. http://www.chemengonline.com/current-
economic-trends-march-2016/?printmode=1.
Luyben, Michael L., and William L. Luyben. 1997. Essentials of process control. New York: McGraw-Hill.
MPOB. 2016. Mpob Daily Local Prices of Rbd P. Oil , Rbd P. Olein & Rbd P. Stearin. Malaysia Palm Oil Board (MPOB). Accessed 11th August,
http://bepi.mpob.gov.my/index.php/statistics/price/daily.html.
Peters, Max Stone, Klaus D Timmerhaus, Ronald Emmett West, Klaus Timmerhaus, and Ronald West. 2003. Plant Design and Economics for Chemical
Engineers. 5 ed. Vol. 4: McGraw-Hill New York.
Petronas. 2000. Operating Procedure for the Utilities. Petronas Carigali Sdn Bhd.
Seider, Warren D., J. D. Seader, and Daniel R. Lewin. 2003. Product & Process Design Principles. 2nd. New York: John Wiley & Sons.
Seider, Warren D, Junior D Seader, and Daniel R Lewin. 2009. Product & Process Design Principles: Synthesis, Analysis and Evaluation, (with Cd): John
Wiley & Sons.
Sinnott, Ray, and Gavin Towler. 2009. Chemical Engineering Design. 5th. Oxford: Butterworth-Heinemann.
Towler, Gavin, and Raymond K Sinnott. 2012. Chemical Engineering Design: Principles, Practice and Economics of Plant and Process Design: Elsevier.
"Trading Economics" 2016. Trading Economics. http://www.tradingeconomics.com/malaysia/corporate-tax- rate.

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