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Flare Process 343

3. Determine the total capital cost (TCC) in March 1990. From Table 4, the following
are known:
Total direct costs (DC) = 1.56 PEC + SP + Bldg.
= 1.56 × 467,000 + 50,000 + 100,000
= $878,520 March 1990 cost
Total indirect costs (IC) = 0.35 PEC
= 0.35 × 467,000
= $163,450
Total capital costs (TCC) = DC + IC
= 1.91 PEC + SP + Bldg.
= 1.91 × 467,000 + 50,000 + 100,000
= $878, 520 + $163, 450
= $1,041,970 March 1990 costs

Table 5 also summarizes the calculation procedures for TCC determination.
4. The annual cost is determine and presented in Table 6.

Example 5

The purchased equipment cost (PEC) determined in Example 4 was $396,000 (March
1990 cost data). Please explain how a future or present PEC can be calculated.
Solution

Equation (12) can be used for converting the March 1990 PEC to the present or future PEC
as follows:
Cost = Cost (Index )/(Index )
b a b a
where Cost is the $ cost in the month-year a (March 1990 in this case), Cost is the $
a b
cost in the month-year (present or future), Index is the CE Equipment Cost Index in the
b a
month-year a (March 1990 in this case), and Index is the CE Equipment Cost Index in
b
the month-year b (present or future).
Index can be found from the March 1990 issue of Chemical Engineering, and Index can
a b
be found from the latest issues of Chemical Engineering (19).
With the latest CE Equipment Cost Indices (the past 3 yr, for instance), one can plot a
curve and forecast the future CE Equipment Cost Indices for cost estimation.

NOMENCLATURE

Bldg. Building cost ($)
Cost Cost in the month-year a ($)
a
Cost Cost in the month-year b ($)
b
D Diameter of flare tip (in.)
tip
DC Total direct costs ($)
DE Destruction efficiency (%)
EC Flare equipment costs ($)
F Fan power requirement (kWh/yr)
p