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OHLOfrALMAU il 4 November 9 & 10, 1988 Auditors: T. Austin R. Daniels D. Dunn C. Golden M. Trask J. Zanyk 277^3 CO^NTI* Section 1 DO y 7 7 7 6 4 C O N F ID H N T I <x CHLOR-ALKALI II PROCESS TECHNOLOGY REVIEW 1. PROCESS 1.1 Basic Chemistry Brine is electrolyzed in the chlorine cells 2NaCl + 2H20 -----> C12 + 2NaOH + H2 The chlorine is dried and liquefied and, for the most part, revaporized for feed to the EDC/VCM plant. Liquid chlorine can be transferred back and forth with CA1 depending on sales requirements. The cell effluent is evaporated to 50X NaOH strength. Salt and iron are removed and the product shipped via rail car to terminals and customers. Some cell effluent is used for scrubbing at the VCM plant. The hydrogen is vented except for a small portion that is recovered for the manufacture of hydrochloric acid for sales and internal use. H2 + C12 ---- > 2HC1 Official Capacities (1988) Chlorine 50Z Regular Caustic 32 Hydrochloric Acid 800 MMlbs/year 860 MMlbs/year 36 MMlbs/year 1.2 Index Flowsheets Please refer to the following drawings Chlorine Process Caustic Process Brine System FS-A91-5050 FS-A91-5X30 FS-A91-5000 DOW CONFIDENTIAL 1277^5 DO oonf 1 dF-^t T 1.3 Layout Please refer to the plot plan FS-A444-1029. 1.3-1 Fire and Explosion Index The F&E calculations were updated and reviewed in April 1988 using the 6th Edition (May 1987) of the Corporate Classification Guide. FIRE AND EXPLOSION INDEX (1988) PROCESS AREA F&E INDEX VALUE OF AREA OF EXPOSURE ($MM) BASE MPPD* ($MM) ACTUAL MPPD* DAYS ($MM) OUTAGE 1. CELLS 77.6 15.115 9.824 5.109 55 (31 - 91) 2. HCL BURNER 181.1 17.198 14.445 12.857 90 (45 - 150) 3. CL2 GUNK 160 7.316 6.219 3.917 48 (25 - 80) 4. IRON CELLS 55 1.368 0.753 0.512 15 (7 - 25) *MPPD - MAXIMUM PROBABLE PROPERTY DAMAGE 1.3-2 Space Separation There are no serious concerns. The HC1 burner is a potential ignition source. DOW CONFIDENTIAL DO 127766 confidential AREA A: CELL AREA FIRE & EXPLOSION RADIUS BLOCK 90 BATl^-C LIMTI STA. 4 + M E BATTERY LIMIT S T A 13+ 08E / JU_____\_________ / \" / -- V-415 f / \ nl Nj mm . BLOC 1A DflOO j f[ D0 1.27767 confidential. AREA B: HCL BURNER fire & Explosion radius BLOCK 90 . . t Liurr STA. 4+55C BATTERY LIMIT STA 13-K W g \ !_____ / V-416 -= / L\ --m / =V--415 / In LJ EurfJcENCYm D-1>0 1--1 HYDROGEN WO STACK LJ--I v-i e4- ROAO STA. 39+6SN I.O > mm oooooo III oo oOs-wr* E*RT BLDG 91A TOOT FTT Hi<8so cQdoiI -r-1 i m----- m--w-- ti.1 I P--JM .1----- --I---- RATTYW I MT STA. 31+7SH- DO 127768 CONFIDENTIAL W-OWV- FIRE & EXPLOSION RADIUS AREA C: CHLORINE TAFFY arA BLOCK 90 ATTCTrT LM T STA. U W AREA D: IRON CELLS FIRE & EXPLOSION RADIUS BLOCK 90 LMTT 5TA. U M BATTERY LIMIT STA la+OCE ^----------f] ..... .. y gz V-416 -- / \ lllll \ 1" / V--414 ! /\ BLOG 91A BBBB 1 It 0 11DAO STA. 3333N --, - ___ cEb oi O,Mil HUVritfnm--]-- > _____ _! iiTO BATTERY MUTT STA. 31+73H- BATTERY lSJfT STA. 32+00 I DO 127770 CONFTDFNTTAL 1.3- 3 Underground The entire block drains by gravity into the injection water pond (V417). In addition, storm water from the Foam Plant and CA1 areas now are collected in V417. The hypo contaminated and acid sewers are separate to avoid chlorine evolution should simultaneous spills occur. The brine storage, injection water, and hypo (ongoing) pond have been rebuilt and relined with appropriate leak detection systems to avoid soil contamination. 1.3- 4 Fire Protection Systems See the attached plot plans for the location and details of all the systems. Basically, sprinkler protection is provided for 91A building and each of the two rectifiers. Halon protection is installed in the computer room, the vault, behind the control panel, the DC battery room, the MCC room, and inside the MCC panels. 1.3- 5 Buildings Fire protection is noted above. The building ventilation does shutdown in the event of a chlorine release or a smoke detector signal. i DOW CONFIDENTIAL DO 127771 CONFIDENTIAL _p*$. ^IKb HT UK AN I b DO 12777? CONFTDFNTTAl LXJ-CJ FIRE HYDRANT WITH MONITOR 00 127773 CONFrDFNTTAl SPRINKLED AREA uritrmt Art t n*oiC $ATTT*r umfl r y "S c. DO 127774 CONFIDENTIAL DO 127775 CONFIDENTIAL P IP E WAY 1.4 Interplant Relationships Department Receive from Power & Utilities 15 KV power 150 psi steam Cooling water Raw Water Nitrogen Natural gas Demin waste water (future) EDC/VCM 18% HC1 Ecology "brine" Chlorinolysis waste Carbon tet Chlor-Alkali I Cell effluent Sodium Sulfite "Neut" water Storm water 32% HCl Liquid chlorine Wells Brine Car Wash Caustic washings Solids Landfill Send to Condensate Cooling water return 50% caustic Hydrogen (future) 100% chlorine gas Cell effluent Chlorine taffy Waste carbon tet Cell Effluent 50% caustic Salt Slurry Brine 32% HCl Liquid chlorine Injection water Sulfate purge Miscellaneous material e.g. contaminated earth, asbestos bags, etc. DOW CONFIDENTIAL SO \27777 CONFIDENTIAL 1.5 Performance 1.5- 1 Performance Comparisons The attached Chlor-Alkali Tech Center Chlorine and Caustic Summary compare the performance of the plants opposite selected ratio's and quality items. 1.5- 2 Energy/Yield At CA2 ve have chosen to use tvo Key Result areas to study energy consumption and product yield. Power Efficiency: This is the net (i.e. final accounting) production of chlorine and caustic vs. cell energy consumption expressed as a X of an arbitrary theoretical. (2.174 volts/cell @ 100* efficiency.) Steam Economy: This is the total steam consumption of the plant (not just the evaporators) KBtu's per lb of water evaporated from the cell effluent. The elements impacting the Power Efficiency are: Cell Voltage Rectifier Efficiency Product Losses: Chlorine - 32 X acid usage Scrubbing Accounting Caustic - NaOH Current Eff - Evaporator losses The elements impacting the Steam Economy are: Wash water: Flywashes - frequency and duration Shoots i T301 Steam Utilization: EV300 limitations Other plant steam uses DOW CONFIDENTIAL o oz o o n M i-1 O so m Z Nl -H Nj ---f sO J> l BRINE GPL NACL LAST BRINE PPM CA LAST KCL LB/KLB CL2 LAST ANDLYTE PH LAST ANOLYTE NAL'L LAST OCR YTB YEAR qir YTD YEAR UfR YTB YEAR OTR YTB YEAR llTR YTB YEAR CELL GAS X CL2 01R YTD LAST YEAR CELL GAS X 82 (If R YTD I.AST YEAR CELL GAS X H2 OTR YTD LAST YEAR ACKUH/LB CL2 GTR YTD LAST YEAR X CAPACITY OTR YTD LAST YEAR NAOH GPL IN CE OTR YID LAST VfiAR HACL03 IN L'E OTR YTD LAST YEAR STEAH/FUEL COST OTR YTB LAST YEAR PDUER COST M$ OTR YTD LAST YEAR MAINTENANCE M$ OTR YTD LAST YEAR */LB CL2 1 NAOH OTR mi LAST YEAR /LB CL t LE OTR YTB T i" -> ' 1- A T f'HLORlNE YEAR TO-BATA SUMMARY CHLUR ALKALI TECH CENTER REPORTING PERIOD: 1ST Cl 1K 1980 RUN HATE: 8-A<j--|-19S8 FORT FORT LAD ARAfU C/A 1 C/A 2 C/A 2 LAD CL1 SARN TA SARNIA ST ABE 51 ABE TEXAS OCB C/A 1 CL2 C/A 1 C1.2 CL3 CL4 CLS WESTERN rrni AVE 295 295 296 1.1 1.1 1.2 01 01 74 2.9 2.9 2.7 289 289 288 93.0 93.0 92.2 1.85 1.85 2.26 0.14 0.14 0.19 1.04 1.04 1.06 112 112 96 113 113 413 0.19 0.19 0.25 2110 2118 5566 5006 5006 16200 1499 1499 6889 .0532 .0552 .0331 .0000 .0000 - ^ A, O 300 3 00 302 4.1 4.1 3.1 63 63 56 3.0 3.0 2.6 28 4 2D4 282 96.2 96.2 96.0 1.31 1.31 1.25 0.07 0.07 0.09 1.09 1.09 1.10 109 109 110 134 134 120 0.12 0.12 0.16 673 673 2878 1304 1304 5544 808 008 3637 .0326 .0326 .0352 .0000 .0000 294 294 302 3.0 3.0 2.8 63 63 60 2.7 2.7 2.6 288 288 287 95.4 95.4 94.8 1.13 1.13 0.83 0.16 0.16 0.18 1.11 1.11 1.13 121 121 110 125 125 125 0.23 0.23 0.18 1452 1452 6237 3267 3267 12159 1531 1531 3059 .0254 .0334 .0276 .0000 .0000 aaaa 305 305 307 6.1 6.1 4.7 69 69 79 2.9 2.9 2.6 295 295 296 95.1 95.1 95.2 1.03 1.03 1.18 0.03 0.03 0.02 1.02 1.02 1.03 100 108 105 121 121 118 0. 26 0.26 0.21 1382 1382 15943 kZA 214 2098 608 608 8325 .0240 .0340 .0253 .0000 .0000 AAAA 299 299 299 3.0 3.0 2- 2 71 71 69 2 2.5 2.5 295 295 293 93.5 93.5 95.7 1.02 1,02 0.90 0.05 0.03 0.04 1.06 1.06 1.04 105 105 105 105 105 111 0.29 0.29 0.15 106 106 353 9783 9783 39228 1272 1272 5983 .0000 .0000 .0000 .0181 .0181 295 29b 297 3.1 3.1 2.8 65 65 46 2.^ 2> 2.5 295 295 295 95.6 93.6 95.3 1.32 1.32 1.30 0.09 0.09 0.07 1.04 1.04 1.04 109 109 104 124 124 119 0.23 0.23 0.21 4160 4160 16702 653 653 2927 1693 1693 9584 .02/8 .0378 .1098 .0000 .0000 AAflO 297 297 295 2.3 2.3 2.1 57 57 64 3.0 3.0 3.1 286 286 93.4 95.4 95.6 7.16 2. 16 1.91 0. 29 0.29 0.31 1.08 1.08 1.07 110 110 94 115 115 120 0.81 0.81 0.52 2433 2435 10569 4853 4853 17430 1157 1157 474 1 .0324 .0324 .0338 .0000 .0000 0000 310 310 293 1.8 1.8 2.5 85 85 1 21 3.6 3.C 3.4 252 252 235 96.0 96.0 95.9 1.55 1.55 1.51 0.47 0.47 0.60 1.07 1.07 1.07 121 121 104 126 126 119 0.25 0.25 0.27 0 0 2780 0 0 12423 0 0 71661 .0000 .0000 .0000 .0000 .0000 .0376 308 30H 310 2.3 2,,:j 2.0 84 84 81 2-4 2- 4 2-4 290 2 VO 2iJ0 95.2 95.2 95.2 0.73 0.73 I .00 0.14 0.14 0.16 1.04 1.04 1.08 99 99 99 136 126 128 0.14 0.14 0.17 3697 3697 10094 9583 9583 34/54 1536 1536 6661 .0532 .0522 .0467 .0000 .0000 .0000 301 301 301 2.3 2.3 2.6 86 86 33 2-7 2-7 2.8 276 276 2/4 96.0 96.0 95.4 0.32 0.82 0.96 0.06 0.05 0.14 1.01 1.01 1.05 108 108 102 122 122 120 0. 17 0.17 0.19 142 142 202 15036 15036 50352 8)9 819 3973 .0000 .0000 .0000 .0322 .0322 .0296 314 3) 4 312 1.3 1.3 1.1 38 3B 45 2.8 2.H 3.0 1 1 2V7 95.3 95.3 94.5 1.04 1.04 1.11 0.13 0.13 0.19 1.07 1.07 1.05 102 102 106 102 102 105 0.14 0.14 0.17 0 0 0 7663 7663 32392 1391 1391 4027 -0000 .0000 . 0000 .01B1 .0181 .0180 313 313 312 1.3 1.3 1.1 44 44 45 2.8 2.8 2.9 1 1 1 93.9 93.9 92.5 0.86 0.86 0.83 0.26 0.26 0.26 1.08 1.08 1.09 1 12 112 V6 102 102 104 0.24 0.24 0.15 0 0 0 8352 8352 30745 607 607 14636 .0000 .0000 .0000 .0100 .0100 .0232 0 0 0 0.0 0.0 0.0 0 0 0 0.0 0-0 0.0 0 0 0 0.0 0.0 0.0 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0 0 0 0 0 0 0.00 0.00 0.00 0 0 0 0 0 0 0 0 0 .0000 .0000 .0000 .0000 .0000 .0000 302 302 304 1 .0 1.0 2.6 6/ 67 37 2.3 2.3 2,2 2/9 279 2H2 303 303 304 2.4 2.4 2. 1 f>4 34 64 2.7 2.7 2.7 287 287 28S 97.4 97.4 95. 1 1.04 1.04 1.84 0.13 0.13 0.19 9b.2 93.2 94. B 1.13 1.13 1.15' 0.14 0.14 0.16 1.06 1.06 1.09 92 92 95 118 118 119 1.06 1.06 1 .07 108 100 102 114 114 115 0.39 0.39 0.63 1321 1321 0.25 0.25 0.21 17486 17486 5187 76513 2269 68183 2269 68183 9577 265828 1364 14285 1364 14285 3466 148660 .0530 .0361 .0530 .0361 .0516 .0473 .0000 .0183 .0000 .0183 .0000 .0220 Hit the return key to continue CELL EFF X NA0H LAST CELL EFF X NALL LAST E0AP FEED X NA0H LAST WASH UA1ER Lb/LB EVAP SUE LB/LB LAST UASH UTR LAST 11TR YTt YEAR 01R YTP YEAR QIR YTD YEAR QIR YTD YEAR OTR YTD YEAR oOz oo iQ-TH:| t"-0* Z "J -t o EOAP SUC LOSS X OF PROD LAST EUAP STM KBTU/LB X CAPACITY LAST X LOSS LAST LAST X NACIH IN PRODUCT LAST X HACL IN PRODUCT LAST PPM FE IN PRODUCT LAST STEAM/FUE1 COST M* LAST POWER COST M* LAST MAINTENANCE Mt LAST t/LB CL2 t NAUH /L8 NAOH LAST OTR YTP YEAR OTR YTD YEAR OTR YTD YEAR OTR YTP YEAR Oil) YTD YEAR QTR YTD YEAR QTR YTD YhAK QTR YTD YEAk QTR YTD YEAR QTR YTD YEAk QTR YTD YEAR QTR YTD ARATU 9.14 9.14 9.23 16.87 16.87 16.27 9.58 9.58 9.86 1.20 1.20 1.44 0.76 0.76 0.76 2.28 2.28 2.00 4.76 4.76 4.39 125 125 107 5.3 5.3 5.2 49.3? 49.37 49.22 1.08 1.08 1.06 4.3 4.3 4.2 2118 2118 5566 5006 5006 16200 1499 1499 6889 .0552 .0552 .0551 .0000 .0000 FORI C/A 1 10.14 10.14 10.17 15.19 15.19 15.51 10.07 10.07 10.04 4.57 4.57 4.4? - 1.00 - 1.00 - 1.00 5.28 5.28 4.12 5.10 5.10 5.19 105 103 92 7.3 7.3 6.8 50.13 50.13 50.00 0.98 0.98 0.97 2.3 2.3 2.5 673 673 2878 1504 150 4 55 4 4 BOB 808 3637 .0326 .0326 .0352 .0000 .0000 CAUSTIC YEAR-TU-DA1A SUMMARY CHLUR-ALKALI TECH CENTER FORT C/A 2 LAD C-l LAD C/A 2 SAkNIA OCD C7A 1 10.12 10.12 10.10 16.30 16.30 16.48 10.53 10.53 10.44 1.56 166 1.56 0.44 0.44 0.47 2.31 2..11 2.30 3.58 3. 38 3.35 115 115 119 3.0 3.0 6.9 49.90 49.90 49.88 0.95 0.95 0.94 1.9 1.9 1.9 1452 1452 6237 3267 3267 12159 1531 1531 5059 .0254 .0254 .0276 .0000 -.0000 8.82 8.B2 9.12 16.35 16.35 17.19 9.15 9. 15 9.21 0.99 0.99 1.36 0.36 0.36 . 9.- 78 1.33 1.33 1.26 5.46 5.46 5.26 98 98 100 3.7 3.7 4.8 50.06 50.06 50.23 0.97 0.97 0.95 1.3 1.3 1.5 2672 2672 9986 302 302 1239 2657 2657 3048 .0000 .0000 .0000 .0379 .0379 9.73 9.73 9.48 17.63 17.63 17.69 9.46 9.46 9.71 0.88 0.88 0.96 0.19 0.19 ....... fi 21 0.54 0.34 1.21 5.48 5.48 5.40 117 117 110 9.2 9.2 9.2 49.94 49.94 50.09 0.96 0.96 0.96 1.6 1 .6 1.9 1382 1382 15943 214 214 2098 608 608 8325 .0240 .0240 .0233 .0000 .0rt0a0/>0n 10.11 10. I 1 9.75 16.92 16.92 17.14 10.26 10.26 10.07 0.80 0.80 0.81 0.24 0.24 __Q. 0.46 0. 16 0.43 4.59 4.59 4.47 110 110 104 4.3 4.3 4.9 50.06 50.06 50.02 0. 98 0.98 0.97 - 1.0 - 1.0 0.9 4160 4160 16702 653 633 2927 1693 1693 9384 .0278 .0278 .1098 .0000 .0000 9.86 9.86 9.96 15.71 15.71 15.96 9.84 9.84 10.00 1.83 1.83 2.16 0.39 0.29 0.3 4 0.63 0.65 0.64 4.95 4.93 4.80 110 110 83 9.0 9.0 9.9 49.74 49.74 49.73 0.98 0.9U 0.99 2.4 2.4 2.4 24 35 2435 10569 4853 4H53 17430 1157 1157 4741 .0324 .0324 .0338 .0000 .0000 REPORT I NO PEkltW: 1ST (Ilk 1988 RUN date: 8-AU9-19B8 STADE C/A 1 TEXAS C-l UESTERN DOU AUG 10.37 10.37 10.59 16.53 16.53 16.48 10.43 10.43 10.60 0.72 0.72 0.73 0.37 0.37 0.35 0.60 0.60 0.82 3.66 3-66 3.90 104 104 101 3.7 3.7 5.1 50.03 50.03 50.03 0.97 0.97 0.97 1.2 1.2 1.2 3697 3697 10094 9583 9383 34754 1336 1536 6661 .0522 . Q522 .0467 .0000 .onoaonoo 8.54 8.54 8.68 13.74 15.74 14.90 9.71 9.71 9.88 0.55 0.55 0.54 0.13 0.13 0.13 0.25 0.25 0.24 4.29 4.39 4.22 95 95 83 8.3 B. 3 9.0 49.98 49.98 SO. 14 0.89 0.89 0.93 0.6 0.6 0.7 2959 2959 6715 433 433 1310 936 936 2541 .0000 . 0000 .0000 .0349 .0349 10.18 10.18 10.07 17.33 17.33 17.34 10.IB 10.18 10.07 - 1.0 0 - 1.00 2.65 - 1.00 - 1.00 1.07 - 1.00 - 1.00 4.39 6. 76 6.76 6.99 91 91 93 6.4 6.4 5.6 49.04 49.0 4 49.56 0.97 0.97 0. 97 3.7 3.7 3.7 1321 1321 518? 2269 2269 9577 1364 1364 3 486 .0530 .0330 .0316 .0000 .0000 , OflOO 9.62 9.62 9.64 16.46 16.46 16.52 9.90 9.90 9.99 1.20 1.20 1.30 0.33 0.33 0.41 1.20 1.20 1.26 4.64 4.64 4.69 107 107 99 6.0 6.0 6.8 49.89 49.89 49.96 0.97 0.97 0. 96 1.8 1.8 1.0 22869 22869 89 87 7 28084 28084 103258 13789 13789 53971 .0361 .0361 .0473 .0367 .0367 - 076 9 CHLOR-ALKALI II POWER EFFICIENCY (NET) DO 1 2 7 7 8 1 C O N F ID E N T IA L JFMAMJJASONDJFMAMJJASONDJFMAMJJASOND AEAPAUUUECOEAEAPAUUUECOEAEAPAUUUECOE NBRRYNLGPTVCNBRRYNLGPTVCNBRRYNLGPTVC BB88888B8B8B88B8B88B8B8888BBBBBBB88B B6666666666677777777777788888888888B PWREFFNET AVE 1986 - 61.93 AVE 1987 63.10 AVE 1988YTD 65.17 1B0CTW C/A II STEAM ECONOMY o oz oo ~n H^ o \> m si Z NJ H 0) n \) 1> 11 111 1 1 1111 J FMAMJ J AS 0N A E A P AUUUE C 0 N B R RYN LGP TV B B 8 68 8 8 8888 88888888888 1.5-3 Reliability Please refer to the attached graph (Production Chlorine). Year Instantaneous Cell Capability Standard Capacity Reliability to Achieve Capacity Actual Reliabili 1979 98,333 lb/hr 1980 98,333 lb/hr 1981 98,333 lb/hr 1982 98,333 lb/hr 1983 98,333 lb/hr 1984 97,500 lb/hr 1985 97,500 lb/hr 1986 98,700 lb/hr 1987 101,940 lb/hr 1988 109,088 lb/hr 1989 109,088 lb/hr ** year end forecast 750 MMlb/yr 750 MMlb/yr 750 MMlb/yr 750 MMlb/yr 750 MMlb/yr 750 MMlb/yr 750 MMlb/yr 750 MMlb/yr 750 MMlb/yr 800 MMlb/yr 860 MMlb/yr 87 X 87 X 87 X 87 X 87 X 88 X 88 X 87 X 84 X 84 X 90 X 67 X 75 X 75 X 83 X 85 X 86 X 88 X 92 X ** 91 X The attached pareto chart "Chlorine Plant Reliability.* X of Lost Production" identifies the major causes of downtime or reduced rates in 1988. 1.5-4 A comparison was made between CA2 at the Port and CA2 in Louisiana in April of this year based on 1987 costs. Please see the April 1988 memo and backup. Major opportunities highlighted for the Fort are: 1. Collect hydrogen 2. Install higher efficiency chlorine cells DOW CONFIDENTIAL DO 127783 CONFIDENTIAL CHLORINE PLANT RELIABILITY x OF LOST PRODUCTION 1988 P E R C E 80- N T 70- 0 F 60- T 50 0 T A L D 0 W N T t M E ETHY/ALLOC WSH/RBLD MAI NT INTERNAL PROD/PLAN SU/SO RELCL258 QUARTER RK553 1ST 85533 9Nn r* * v*l*j 7Dn 1988 YTD LOST PRODUCTION = 87.26 MMLBS CL2 PRODUCTION CHLORINE WTPMOCLl LEGEND Production Forecast -------- Capacity + Pot. CapabiIity 070CTW 88-04-19 To: Paul Bilello xc. Tom Austin Reg Daniels Cost Comparisons Paul, With the help of my accountant, ve completed a cost analysis to compare your plant with mine, based on the cost sheets that ve exchanged. As best as we can tell, the comparison is on an "apples to apples" basis. Everything in $US. The idea was to try to identify some areas of opportunity for improvement here at the Fort and 1 think this may help. As you can see from the chart, some opportunities we can do something about and some we can't. Raw Materials: mostly hydrogen and brine pricing. Brine costs, I think are attributable to dome salt vs bedded and the number of wells required to maintain production. Our wells are young on average, so costs may come down some more. Hydrogen. We sure need to find a way not to waste 1/3 of our production. Depreciation: this includes cells. Can't do much about this. The book value of my plant is much higher. Cell Service: We just completed our M83 cell conversion last year-- rebuilt 4 series. This should come dovn. Storage and Handling: These are site railroad costs. Because we ship the most product on site, we pay a big portion of the costs. This is over and above storage and loading costs. I guess you don't ship anything. Factary Burden: the penalty for being a small site. Utilities: In spite of the fact that ve have a significant advantage due to the lower gas costs, ve are missing an $0,850 MM per year opportunity due to poor cell power efficiency. DO 127786 CONFIDENT TAl Product Losses: I couldn't reconcile this directly. It looks like your caustic losses are much better than ours but that is contradicted by your higher HC1 consumption. I know our salt column operates poorly and our cell caustic efficiencies may be higher but I don't know for sure. I may wish to talk with you about this in the future. Thanks for your help. If any of this doesn't make any sense or if you see anything else that might help me, please call. I enjoyed the brief visit. Pete Fraser Ft. Sask CA2 DO 127787 CONFIDENTIAL Summary of LAD CA2 and Ft. Sask CA2 Costs for 1987 Notes: 1. All costs in US funds ($Cdn=$0.7526 US) 2. Ft Sask 1740 (chlorine and caustic) account was compared against LAD cost centre 35 (chlorine) and 39 (caustic). 3. LAD does no product loading. Ft. Sask loads caustic only. Production MMlbs Chlorine Caustic Total LAD 700.8 858.4 1559.2 Ft. Sask 819.4 889.4 1708.8 Cost of manufacturing Cost components Brine/Ton Natural gas price Motive power Electrolytic power Steam/MMBtu ACKVH/lb Power Efficiency Power Efficiency V/o HCl KBtu/lb NaOH HCl lb/1000 lb C12 $0.0268 $1.36 $1.88 $0.02351 $0.02093 $1.64 $1,050 69* 69X 5.46 86.4 $0.0277 $3.86 $1.25 $0.01642 $0.01314 $1.83 1.129 63. IX 64.2% 3.83 60.3 DO 127788 CONFIDENTIAL COST COMPARISON FT. SASK CA2 VS. LOUISIANA CA2 1987 in $ US. UTILITIES SPECIAL SUPPLIES LABORATORY INSURANCE ROYALTIES GENERAL SUPPLIES MAINTENANCE TRAVEL DATA PROCESSING OTHER SALARIES + FRINGES WASTE DISPOSAL LABOUR ASSESSMENT NON-MAINTENANCE SERVICES ENGINEERING TAXES FACTORY BURDEN STORAGE AND HANDLING CELL SERVICE DEPRECIATION + CELLS RAW MATERIALS TOTAL + 5.330 + 0.656 + 0.382 + 0.087 + 0.074 + 0.066 + 0,041 - 0.030 - 0.072 - 0.108 - 0.114 - 0.130 - 0.151 - 0.237 - 0.262 - 0.583 - 0.729 - 0.881 - 0.888 - 3.902 - 4.089 5.540 Note: + = advantage to the Fort Do 127789 CONPTDfTNTTAl CHORA Af-KAIJ COMPARISION LOUISIANA DIVISION VS CA II FORT SASKATCHEWAN descrition LOUISIANA Amount Per Unit Rav Materials Utilities Special Supplies Cell Service Cell Depreciation Depreciation Taxes Insurance Royal!ties Salaries Fringe Benefits Lab ur Assesment Total Htc Non Mtce Services Tavel Laboratory Waste Disposal Engineering Storage & Handling Data Processing Pact ry Burden Gen Supplies Other Costs -1,872,214 26,925,647 2,500,618 349,278 (included in dep) 3,257,708 233,364 238,563 362,997 1,704,027 397,769 176,927 5,369,426 3,317 9,758 518,840 90,053 53,008 42,721 113,108 870,577 354,732 39,415 -.00120 .01727 .00160 .00023 .00209 .00015 .00015 .00023 .00109 .00026 .00011 .00344 .00000 .00001 .00033 .00006 .00003 .00003 .00007 .00056 .00023 .00003 o o z oo TOTAL o \3 XI Z--I ^vD rH O 41,739,639 02677 Asount FORT SASK. Per Unit 2,217,041 21,595,653 1,844,747 1,236,965 2,146,652 5,013,644 816,389 151,193 288,519 2,035,540 179,565 327,971 5,054,490 240.793 40,014 131,893 59,305 386,105 835,463 182,707 2,059,213 288.794 147,063 . .00130 .01264 .00108 .00072 .00126 .00293 .00048 .00009 .00017 .00119 .00011 .00019 .00296 .00014 .00002 .00008 .00003 .00023 .00049 .00011 .00121 .00016 .00008 47,279,724 .02767 DIFFERENCE -4,089,255 5,329,994 655,871 -887,687 -2,146,652 -1,755,936 -583,025 87,370 74,478 -331,513 218,204 -151,044 314,936 -237,476 -30,256 386,947 30,748 -333,097 -792,742 -69,599 -1,188,636 65,938 -107,648 -5,540,085 Breakdown of the Pactory Burden Account CHORA h ALT COMPARISION LOUISIANA DIVISION VS CA II PORT SASKATCHEWAN DBSCRXTION LOUISIANA Amount Per Unit Raw Hat rials Utilities Special Supplies Cell Service Cell Depreciation Depreciation Taxes Insurance Royalities Salari a Fringe Benefits Labour Assesaent Total Htce Non Htce Services Tavel Laboratory Waste Disposal Engin ering Storage A Handling Data Processing *Pactory Burden Gen Supplies Other Costs -1,872,214 26,925,647 2,500,618 349,278 (included in dep) 3,257,708 233,364 238,563 362,997 1,704,027 397,769 176,927 5,369,426 3,317 9,758 518,840 90,053 53,008 42,721 113,108 870,577 354,732 39,415 -.00120 .01727 .00160 .00023 .00209 .00015 .00015 .00023 .00109 .00026 .00011 .00344 .00000 .00001 .00033 .00006 .00003 .00003 .00007 .00056 .00023 .00003 Amount 2,217,041 21,595,653 1,844,747 1,236,965 2,146,652 5,013,644 816,389 151,193 288,519 2,035,540 179,565 327,971 5,327,853 240,793 40,014 137,183 220,014 314,572 924,073 184,951 1,600,530 288,794 147,063 PORT SASK. Per Unit .00130 .01264 .00108 .00072 .00126 .00293 .00048 .00009 .00017 .00119 .00011 .00019 .00312 .00014 .00002 .00008 .00013 .00018 .00054 .00011 .00094 .00017 .00008 TOTAL 41,739,639 .02677 47,279,724 .02767 DIFFERENCE -4,089,255 5,329,994 655,871 -887,687 -2,146,652 -1,755,936 -583,025 87,370 74,478 -331,513 218,204 -151,044 41,573 -237,476 -30,256 381,657 -129,961 -261,564 -881,352 -71,843 -729,953 65,938 -107,648 -5,540,085 DO 1 2 7 7 9 1 CO NFID ENTIAL * In 1987 most accounts being charged to factory burden were recharged based on replacenent capital in both Louisiana and in Port Saskatchewan. The CA II 1740 replacenent capital spread accounts for approxiaately 20Z of the total "manufacturing site" The Louisiana Division Chlorine A Caustic functions account for between 4.96X and 6.5Z depending on which acc un spreading. I have sent Louisiana division a electronic nail aessage to confirm that thes are fair comparisons. I should find next week. They aight not lndud the cells in the replacenent capital calculation for this unit. DBSOUTIOM Utilities LP Steaa HLBS/MKBTU Qty Motive Pover KVH Qty Electrolitic Pover KVH Qty Service Water HGAL/HIG Qty Treated Water HGAL/HIG Qty Portable Water HGAL/HIG Qty Natural Gas KHBTU Qty Hitrogen HSCP/CCP (As a Supply) T Cel Utilities o iLOUISIANA Amount Per Onit 6,963,829 3,833,881 2,216,634 89,340,000 15,593,742 745,165,000 64,956 484,836 0 0 6,416 6,337 0 0 80,070 105,961 26,925,447 -02351 .05730 .02093 .47793 Aaount PORT SASK. Per Unit DIWKUSCB 6,235,052 3,402,378 1,989,909 121,212,054 12,159,631 925,218,708 1,042,487 19,681,200 139,308 490,041 1,855 6,528 15,442 12,385 11,969 119,279 21,595,653 1,83256 2,728,777 .00199 ' Sfn n .01642 .07093 226,725 .01314 .54143 3,434,111 .05297 .01152 -977,531 .2B428 .00029 -139,308 .28423 .000003 4,561 1.24683 .00001 -15,442 .10034 .00007 68,101 5,329,994 i oa 3> dbscritioh LOUISIANA Aaount Fee Onit Raw Materials Raw Brine TOMS Qty 912,673 627,543 Cell Effluent LBS Qty 9,406,170 870,190,577 Cell Effluent Credit -8,251,935 LBS Oty -757,261,698 Hydrogen MHBT/LBS Qty -2,381,865 -1,140,835 Condensate MLBS/LBS Qty (As e Utility) >1,637,258 >8,182,001 Total law Material* -1,872,21* 1.45436 .00040 .01090 .55812 -.01090 -.48569 RA MATERIALS Aaount QS$ POST SASK. Per Unit DimiEMCE 2,959,712 766,855 8,195,421 958,225,862 -8,042,824 -940,380,534 -65,166 -746,333 -830,102 -4,796,897 2,217,0*1 3.85955vi" ' -2,047,039 .00045 '>*N v>"v .00855 .56074 1,290,749 -.00855 -.55030 -209,111 -.08731 -.00044 -2,316,699 -.17305 -.00281 -807,156 -*,069,255 no o zo n om Tl Ni Z N) --1 -0 S--i 10 DO 1 2 7 7 9 4 CO NFIDENT! SFEiUlAL SUPPLIES dbsgritkoh LOUISIANA Aaount Special Supplies Carbon Dioxide Carbon Tet Freon Sodiua Sulphite (soduin thiosulfate) Sulfuric Acid Tars HCL AC 20 Batute BCL 18% Icon AQ HCL Average 98,146 43,487 174,021 117,755 2,067,209 Total Special Supplies 2,500,618 Unit 00006 00003 00011 .00007 .00133 .00160 Aaount QS$ PORT SASR. Per Unit 10,053 8,628 43,352 103,471 75,076 AO,195 1,548,395\ 15,577^ 1,844,747 .000005 .000005 .00003 .00006 .00004 .00002 .00091 .00001 .00108 DIFFH8BMCS 88,093 34,859 -43,352 70,550 42,679 -40,195 -1,548,395 -15,577 2,067,209 655,871 1.5-5 Projects The following is a listing of the projects completed, underway, or planned that impact the Key Result areas identified in 1.5-2. These and other projects will be elaborated in the other sections and/or during the presentation. Cell Voltage: M-83 cell conversion Louisiana Standard Diaphragms Cell washes Brine Heating Hydrogen collection Product Losses - Chlorine: 182 Low Iron Acid from VCH T250 performance Product Losses - Caustic: EV300 Demister T301 EV304 Concentration Control Cell washing and pulping Wash water: - Flyvash process T301 operation EV300 demister wash EV300 demister studies Sparkler filter optimization Steam utilization: R601 steam ejector elimination EV300 studies i Surface condenser U-values Steam pressure reduction DOW CONFIDENTIAL DO 127795 CONFIDENTIAL CHLOR-ALKALI II COST OF MANUFACTURING $ CAN/LB CHLORINE AND CAUSTIC PMTCSTMNFG LEGEND Actual Cost 'Capacity' Cost 060CT88 CHLOR-ALKALI II MANUFACTURING COST BREAKDOWN 1987 o oa zo '--( >-* O N> rn -si ZH -v4D ^ ^4 3> L N L E I T/R AP RL T S AI I Y R TEE V SS CNTRL PUTCSTBRK RU E ERR CD TE NN UNCNTRL