New Business

Studies for a profitable energy transition

Situation

A large and international chemical company is continuously researching new opportunities for energy and raw materials transition. Various projects are being considered for energy savings and transition to electrification for their plants in Germany and the Netherlands. But how do you know whether the concept is technically and economically feasible? The help of a qualified partner has been called in.

Solution

Further research is needed to identify and implement the most promising energy measures. The chemical company called in KH Engineering for this purpose. The question was a thorough and fundamental order of magnitude cost estimate for the so-called TIC (Total Installed Cost).

Together with the client, a start was made on precisely mapping out the request and assessing  the relationship between the new ideas and other new and existing projects. This made it possible to translate the essence of the question into an optimal design.
 
Based on that information and simulations, the measures were dimensioned and a responsible estimate was made of the required additional equipment for the installation. This brought possible risks for the business case into focus; both process-related and financial, as well as possible limitations with regard to the existing permits. In addition, the way in which the client must integrate these new elements into the total factory site was examined. For one measure this is simple, for another you have to consider which plot location is best for implementing the changes.
The chosen design was refined so that a good cost estimate could be made. The plot of the site and a ‘best guess’ for the construction were taken into account. The TIC was tested against a database with data and prices of both previous projects, as well as market prices of materials in order to make an even more accurate cost estimate.
In total, we carried out four studies for the client. These included the re-commissioning of a unit for recovering raw materials from residual product, upgrading a steam boiler to modern environmental regulations, a combination project of debottlenecking and energy efficiency and a process modification to improve product quality at a lower process temperature. A fifth study is in preparation

Advantage for the customer

KH Engineering focuses on the essence of the client’s challenge and does not do ‘symptom management’. KH Engineering has the engineering knowledge and expertise to oversee such a challenge in its entirety, allowing for much better cost estimation and advice. From the first idea to the commissioning & startup. The client is very satisfied with the quality of our services and indicated that the results are more accurate than previously carried out studies. They also expressed great appreciation for our approach and the thorough documentation.
We provided them with a report explaining the process engineering, possible variants and risks, a project planning and a cost estimate explaining the assumptions in it. With this knowledge the client can make a responsible decision and choose which energy measures from their portfolio they will implement, and which ones first. This allows them to participate in the energy and raw materials transition at their own pace.
 

Activities KH Engineering

KH Engineering performed the following activities for these projects:
FEL 1-study:

  • Making simulations
  • Dimensioning equipment size
  • Process Flow Diagrams
  • Materials selection
  • Plot study
  • ISBL-scope (Inside Battery Limits) and OSBL (Outside Battery Limits)
  • Project planning
  • Risk inventory
  • Mapping and assessing HSSE aspects
  • Cost engineering for the TIC

Process engineer: Jos Sentjens | Cost Engineer: Erik de Boer

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