Propylene Production via Metathesis - Cost Analysis

This report presents a cost analysis of Polymer Grade (PG) Propylene production from ethylene and raffinate-2 using a metathesis process. The process examined is similar to CB&I Lummus Technology's Olefins Conversion Technology (OCT). In this process, Polymer Grade Propylene is produced through a metathesis reaction of ethylene with 2-butene, present in raffinate-2 feedstock. This report examines one-time costs associated with the construction of a United States-based plant and the continuing costs associated with the daily operation of such a plant. More specifically, it discusses: * Capital Investment, broken down by: Total fixed capital required, divided in process unit (ISBL); infrastructure (OSBL), contingency and owner's cost Working capital and costs incurred during industrial plant commissioning and start-up * Operating cost, broken down by: Operating variable costs (raw materials, utilities) Operating fixed costs (maintenance costs, operating charges, plant overhead, local taxes and insurance) Depreciation * Product value analysis, incorporating corporate overhead costs and return on capital employed * Raw materials consumption, products generation and labor requirements * Process block flow diagram and description of industrial site installations (process unit and infrastructure) 2012/13 Report ID: Propylene E11A This report was developed based essentially on the following reference(s): (1) US Patent 8440874, issued to Lummus Technology and BASF in 2013 (2) US Patent 20050124839, issued to Lummus Technology in 2005