Chemical Plants

[remy1234]

I deal quite a bit in developing replacement costs for chemical plants for insurance purposes. Is it safe to say that similar type plants in design can be valued based upon the cost of capacity basis.

 

[Latexman]

Yes, but the devil is in the details. There are many books, handbooks, and articles in magazines that speak to how to do this. I have seen many different methods and techniques. If we knew what you meant mathmatically or formula-wise by "valued based upon the cost of capacity basis", there would be more to discuss.

Good luck,
Latexman

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[bimr]

You probably should consider using a factored estimate. The total plant cost is a multiple times the cost of the major equipment items.

 

[remy1234]

Once you value a plant and say the value is equal to 100$ a ton can you apply that cost per ton to a similar plant with more or less capacity.

 

[Latexman]

This is a method in Perry's Chemical Engineers' Handbook. The two plants being scaled must be the same technology. The capacity ratio is raised to a power specific to that technology.

Good luck,
Latexman

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