Document 6we5pw96J92ZjreRJ04RrZ0Ko

(conoco) Interoffice Communicafloh To J. A. DeBernardi From M. W. Cheesman Date November 19, 1981 subject Recommendations on Kanegafuchi Catalyst A meeting was held with the representatives from Kanegafuchi Chemical Company to discuss the performance of their new Oxychlorination Catalyst System. Kanegafuchi presented data from their two Oxychlorination Reactor trains that indicated higher selectivity to EDC production with less by products and burning, lower pressure drop, and longer catalyst life. A study indicated that the additional cost of the Kanegafuchi Catalyst System for Oxychlori nation Reactors, R-301, R-302, and R-303 can be justified by the projected increases in catalyst life to 15 months and EDC purity by 0.324 weight %. The projected combined total annualized savings amounts to approximately $800ivi. Kanegafuchi predicts that their catalyst system will have a life of 22 months and a 0.6% increase in combined EDC purity. These predictions are based upon a 17 month onstream test in their O^ychlorination Reactor System. The 0.6% increase in EDC purity is for a crude EDC stream that is a combination of the bottoms from the Primary Separator, S-309, the Finishing Reactor Product Separator, S-306, and the After Condenser Receiver, S-307. It was termed "combined EDC" by Kanegafuchi. The increase in EDC purity was partly due to Kanegafuchi charging R-304 with Copper Catalyst. Therefore, a more representative increase in EDC purity due to the Kanegafuchi catalyst in R-301, R-302. and R-303 would be the increased purity of the crude EDC stream leaving S-ffOffi.Although a majority of the data they provided was for a combined crTIcle EDC stream there were two sets,of typical analysis of the S-309 stream with the new catalyst system and one with a conventional catalyst system. The .324 weight % increase was calculated by taking the average of the two. sets of S-309 analysis data, 98.541 weight % EDC, less the set of conventional data, 98.217 weight % EDC. The greatest portion of the increased run time must be attributed to the catalyst. It is believed that Kaneqafuchi has developed a large pore catalyst, similar to Harshaw Catalyst, that is sufficiently strong enough that the large pressure drops due to catalyst deterioration do not occur. (Ron Convers, R&D) The economics were calculated for the extremes of catalyst life, 9 months and 24 months, and at intermediate run times of 12, 15, 18 and 21 months. The projected catalyst life of 15 months used in the base case economics was a conservative estimate of how long the catalyst would last in this plant. There is uncertainty in maintenance cost savings between 15 and 18 months due to Maintenance Department's uncertainty of how long the remainder of the plant can be operated without a shutdown. It is believed that a continuous run of 15 months is probable and 18 months highly unlikely with the time in between being uncertain either way. Note that for run times or 18-24 months an intermediate shutdown would be necessary and this cost is included. CCR 000018218 Table I shows the base case economics; a run time of 15 months, increased EDC purity of 0.324 weight %, with a combined total cost savings of $798.8M/ year. Figures 1-7 show the effects of varying catalyst life, 9 to 24 months and increased EDC purity, 0 to .5 weight %, upon the Combined Total Savings (Loss) due to the purchase of the more expensive Kanegafuchi catalyst. The economics were calculated on an annual basis. Assumptions made were that costs and revenues would be constant over a two year period, the additional EDC make out of the Oxychlorination Unit would save 13.55 <t/lb. EDC (1982 T^IPA projected variable cost of EDC), Kanegafuchi catalyst cost of $504M per run (cost calculations made for 10% excess of needed at quoted prices), 1982 Conventional Catalyst cost of $342M/year (1982 Projected IPA), a turnaround cost of $1.2MM with an oxy catalyst change and $1.OMM without a change of catalyst (Maintenance Department estimates), S-309 crude EDC stream rate of 65,500 lbs/hr (Fluor Material Balance) and a plant operating year of 7680 hrs. Another reason to purchase the Kanegafuchi Catalyst is that it could be used in Step 2 of the proposed plant tests introduced in the letter from R. J. Convers to C. M. Starks dated dune 9, 1981. This catalyst would take the place of the new Harshaw catalyst mentioned in the letter and would be a part of the full scale plant test run for developing or discovering an oxychlorination catalyst for the pure Oxygen system. In order that the Kanegafuchi catalyst be available for the May, 1982 turnaround it should be ordered as soon as possible. This is due to the fact that there is a 5-6 month delivery time for the catalyst. If you have any questions please contact me at ext. 5060. Mark W. Cheesman Process Engineer br CC: JWW-GLF-JRH-MLA-DLD-PLF-HLH-JGC-PE RM0-RJC-GJF- CMS 000018219 COR TABLE I Kanegafuchi Catalyst Evaluation Base Case Economics Run Time (Months) 15 % Increased EDC Out of S- 309 .324 Increased Catalyst Cost( $M/yr) Maintenance Cost Savings ($M/yr) EDC Cost Savings ($M/yr) Combined Total Cost ($M/.yr) 62.2 640.0 221.0 798.8 CCR 000018220 Sample Calculations: Base Case Economics Basis: Run Time = 15 months Weight % EDC Increase = .324 Capital Cost for Kanegafuchi Catalyst Capital Cost = 12 months/.year x $504M 15 months/run run = $403.2M/year Capital Cost increase due to use of Kanegafuchi Catalyst Capital Cost Increase/yr. = $403.2M/yr. - $341.OM/yr. = $62.2M/yr. Maintenance Savings Savings/year = TA Cost/yr. (9 month run) - TA Cost/yr. (12 months run) TA Cust/'yr. (9 month run) = $1.2MM 1 TA TA (j> months $1.6MM/yr. TA Cost/yr (12 month run) = $1,2MM 1 TA TA /T?)months $.96MM/yrr 12 months yr- 12 months yr- Savings/yr. $1.6MM/yr. - $.96MM/yr. = $.64MM/yr. EDC Savings Increased EDC make = % x S-309 flow rate 100% = .324% x 65,500 lbs/hr TOOT = 212.2 lbs. EDC/hr. Cost Savings = Increased EDC make, x 7680 hrs. *d^yr. lb. of EDC = 212.2 lbs EDC x 7680 Hrs. x $1,355 < hr. yr. lb. EDC = $221M/year Combined Savings = Maintenance Savings + EDC Savings - Capital Cost Increase = $640M/yr. + $221M/yr = $62.2M/yr. = $798.8M/yr. CCR 000018221 Fc. ,,rt J 07, dlr\c,*C* 3C EOC CtACtilr*! irr^ mmm A 1 i- j ( jj J KtKt\ j FI g * r <- ? O c ^\* 0*-/* l t/sf J% Ir\Lf*o.lC J Dt 's & ft, m V/* /> S*J?<7? fW $ ) o n n iii in c h 46 1203 Run Time (months) % Increased EDC out of S-309 TABLE II Kanegafuchi Catalyst Evaluation Run Time Increased EDC Versus Combined Total Savings Capital/yr. (Increase) Savi nqs Cost Savings Maintenance EDC Combined 9 0.0 (331.0) 0.0 0.0 (331.0) 12 0.0 (163.0) 400.0 0.0 237.0 15 0.0 ( 62.2) 640.0 0.0 577.8 18 0.0 5.0 130.0 0.0 135.0 21 0.0 53.0 340.0 0.0 393.0 24 0.0 89.0 500.0 0.0 589.0 9 0.1 (331.0) 0.0 68.2 (262.8) 12 0.1 (163.0) 400.0 68.2 305.2 15 0.1 ( 62.2) 640.0 68.2 646.0 18 0.1 5.0 130.0 68.2 203.2 21 0.1 53.0 340.0 68.2 461.2 24 0.1 89.0 500.0 68.2 657.2 9 0.2 (331.0) 0.0 136.3 (194.7)' 12 0.2 (163.0) 400.0 136.3 373.3 15 0.2 ( 62.2) 640.0 136.3 714.1 18 0.2 5.0 130.0 136.3 271.3 21 0.2 53.0 340.0 136.3 529.3 24 0.2 89.0 500.0 136.3 .725.3 9 0.3 (331.0) 0.0 204.5 (126.5) 12 0.3 (163.0) 400.0 204.5 441.5 15 0.3 ( 62.2) 640.0 204.5 782.3 18 0.3 5.0 130.0 204.5 339.5 21 0.3 53.0 340.0 204.5 597.5 24 0.3 89.0 500.0 204.5 793.5 9 0.324 (331.0) 0.0 221.0 (110.0) 12 0.324 (163.0) 400.0 221.0 458.0 15 0.324 ( 62.2) 640.0 221.0 798.8 18 0.324 5.0 130.0 221.0 356.0 21 0.324 53.0 340.0 221.0 614.0 24 0.324 89.0 500.0 221.0 810.0 9 0.4 (331.0) 0.0 272.6 ( 58.4) 12 0.4 (163.0) 400.0 272.6 509.6 15 0.4 ( 62.2) 640.0 272.6 850.4 18 0.4 5.0 130.0 272.6 407.6 21 0.4 53.0 340.0 272.6 665.6 24 0.4 89.0 500.0 272.6 861.6 9 0.5 C33T.1T) 0.0 340.8 ( 9.8) 12 0.5 (163.0) 400.0 340.8 577.8 15 0.5 ( 62.2) 640.0 340.8 918.6 18 0.5 5.0 130.0 340.8 475.8 21 0.5 53.0 340.0 340.8 733.8 24 0.5 89.0 500.0 340.8 929.8 CCR 000018229