Duration
10h Th, 90h Proj.
Number of credits
| Master in chemical and materials engineering (120 ECTS) | 4 crédits |
Lecturer
Language(s) of instruction
English language
Organisation and examination
Teaching in the first semester, review in January
Units courses prerequisite and corequisite
Prerequisite or corequisite units are presented within each program
Learning unit contents
The course first consist in 10h theoretical lectures presenting the basics of economic analysis, with a focus on industrial processes. Based on that, students then work in group to perform a techno-economic evaluation of a selected process.
In the lectures, methods for the evaluation of capital expenditures and operational expenditures of a process will be presented. Different methods are proposed, depending on the accuracy that is required. In particular, the method of similarities is used for scale-up and scale-out costing. The bare module cost method is used for estimating the cost of a new production line based on its equipment (heat exchangers, pumps, reactors...). Thumb rules are given for a first approximation of utility costs (cost of electricity, steam, natural gas...) as well as other operational costs (labor force, consumables, loans...). The results of the cost evaluation are exploited to produce a cash-flow diagram of the project. Concepts of interest rate, depreciation, discounting and levelized costs... are presented. Basics of business plans are introduced and serve to establish a financial plan for the project and to evaluate its profitability over time. A brief introduction to the concepts of entrepreneurship is also proposed.
In the project, students will apply the theoretical concepts to evaluate a techno-economic evaluation of a selected process. They will first develop (or adapt if already existing) a simulation model for the selected process in order to design its main equipment with respect to size, flowrates and energy requirements. Then, they will evaluate the equipment costs using the bare module method, and they will calculate the operational costs based on thumb rules. Finally, they will propose a first profitablity analysis of the project and discuss about the opportunity of realizing it, possibly in a start-up context.
Learning outcomes of the learning unit
The goal of the lecture is to promote the acquisition of basic knowledge and skills in the field of economic analysis, with a focus set on industrial processes. Technical skills are also consolidated through the modelling approach and applied to a selected case study. Soft skills are also used through group work, writing of a business plan, project management.
At the end of this lecture, students should be able to:
- Develop and/or adapt a process flowsheet for a selected industrial process, including equipment sizing and choice of operating conditions
- Evaluate the cost of the required equipment, as well as the process utilities (energy, water, ...)
- Establish a profitability analysis of the project and write a business plan
Prerequisite knowledge and skills
General technical background in the field of process engineering.
Planned learning activities and teaching methods
The lecture will consist in 10h theoretical classes and 90h of project. On-demand mentoring will be offered for the project part.
At the end of the project, a 15-page report (including figures, but not annexes) will be delivered. This written report will also be presented orally (30 min max).
If relevant, this report may be considered for submission to the EURECHA student contest, organized within the framework of the Europen Federation of Chemical Engineering, Working party on Computer aided process engineering.
Mode of delivery (face-to-face ; distance-learning)
Theoretical classes (possibility of presentations academic and industrial experts), written and oral feedback on deliverables, office hours.
Recommended or required readings
Lecture materials will be uploaded on e-campus.
Other literature :
- R. Turton et al, Analysis, Synthesis and Design of Chemical Processes, Prentice Hall 2013, ISBN 0-13-570565-7
- A. Chauvel et al, Manuel d'évaluation économique des procédés, Editions Technip 2001, ISBN 2-7108-0796-3
Assessment methods and criteria
The technical assessment is based on the written report and the oral presentation (including discussion) delivered at the end of the project.
A second session may be organized, in which case students must submit the corrected report by August 25th. No presentation will be organised in the second session.
Work placement(s)
Organizational remarks
Group work, organised during the first semester. Report and oral presentation in December.
First lecture: September 20, 13.30. Oral presentations will take place on December 13, 13.30. Report must be delivered by December 03, 23.59.
Contacts
Prof. Grégoire Léonard, B6a 0.68. g.leonard@ulg.ac.be