final presentation of the production of glyphosate
TRANSCRIPT
Final Presentation on the Production of Glyphosate Glycine Pathway Team#13KyKieferClaytonMonahanPriyaRajendranVeronicaWeisman
MichiChem,INC.23April2014
1
Overview • Background• ProjectDescripKon• ProcessSelecKon• DesignBasis• DecisionCriteria• ProcessDesign• EconomicAnalysis• Environment,Health&SafetyAnalysis• UncertainKes• RecommendaKons• Conclusion
2
Background • Glyphosateisthelargest-sellingherbicideinthemarkettoday• DevelopedbyMonsantoinearly1970sundertradenameRoundUp• Glyphosatepatentsexpiredin2000• ThreewidelycommercializedproducKonprocesses:
• HCNprocess• DEAprocess• Glycineprocess
• Globaldemand(2012):650,000tonneswith4.37%CAGR• Monsanto:60%ofUSmarketshare
3
Project Description • Goal:CapturegrowingdemandforglyphosatebydesigningaprocessingplantfortheproducKonofglyphosate
• GuidingQuesKons• Howmuchtoproduce?• WhichproducKonroute?
• Purpose:Presentprocessdesignandassesseconomics
4
Corporate Strategy • Corevalues:safety,sustainabilityandprofitability
• Approach:• Appealtoanincreasinglyenvironmentallyconsciousindustry
• DEAroutemost“green”butMonsantohasyearsofexperKse
• ProducehighpurityproducttoseparateourselvesfromcompeKtors• 99.9wt%vs.95wt%
5
ProcessSelecKon
Design Basis • 5,000tonnesperyearofglyphosate• 99.9%dryweightproductpurity• $6,000pertonneglyphosateprice• 12hourbatchKme• 24/7operaKon340daysperyear• 1½yearconstrucKonatMichiChemsite• Plantlife:8½yearsofservice
6
Decision Criteria
7
Criteria Achieved?
Technical
1. Produce5,000tonnesglyphosateperyear2. 99.9%dryweightpurity
YY
Economic
1. NPV>02. ROI>12%
YY
Environmental,Health&Safety
1. MeetsEPA&OSHAstandards2. Minimizewasteviarecycling
YY
Overall Block Diagram
8Perbatchbasis
ProcessDesign
Stage 1: Reaction • Objec=ve:ProduceglyphosateviaabatchreacKon
• Stage1a:StorageTanks• Stage1b:ReacKon
9
ProcessDesign
Stage 1a: Storage Tanks
10
ProcessDesign
Stage 1b: Reaction
11
ProcessDesign
Stage 2: Glyphosate Purification • Objec=ve:Purifytheglyphosateintocrystalsof99.9dryweightpercent.
12
ProcessDesign
Stage 2: Glyphosate Purification
13
ProcessDesign
Stage 3: Waste Extraction • Objec=ve:ExtracthazardouswasteandcreaterecyclestreamforStage4
14
ProcessDesign
Stage 3: Waste Extraction
15
ProcessDesign
Stage 4: Triethylamine/Methanol Recycling • Objec=ve:RecovercostlymethanolandTEAfeedstocksforrecyclingtobatchreactor.Recoverymethylalforsale.
• Stage4a:TEA-WaterRemoval• Stage4b:MethylalandMethanolrecovery• Stage4c:TEArecovery
16
ProcessDesign
Stage 4: Triethylamine/Methanol Recycling
17
ProcessDesign
Stage 4a: TEA-Water Removal
18
ProcessDesign
Stage 4b: Methylal and Methanol Recovery
19
ProcessDesign
Stage 4c: TEA recovery
20
ProcessDesign
Economic Outline • IniKalInvestment
• TCI,FCI,EquipmentCost
• OperaKngcosts• AnnualRevenue• Profitability
• NPV,IRR,break-even
21
EconomicAnalysis
Total Capital Investment (TCI)
22
EconomicAnalysis–IniKalInvestment
Cost MMs
FCI $13.8Working Capital $2.7Start-Up Costs $1.4Total Capital Investment $17.9
Fixed Capital Investment (FCI)
23
EconomicAnalysis–IniKalInvestment
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
Equipment Cost EquipmentType Cost(K$)
Storagetanks 1,446
Reactors 50
Separators 126
Pumps 134
Heatexchangers 442
Compressors 520
Others 1,156
Total 2,602
24
EconomicAnalysis–IniKalInvestment
Operating Cost
25
EconomicAnalysis–OperaKngCost
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
RawMaterials Labor Manufacturing
Opera=ngCostPareto
Annual Material Cost and Revenue Chemical Bulk Cost $ Ratio $/tonne Cost per tonne of Glyphosate Glycine 1600/tonne 0.583 $ 1,600.00 $ 932.80 Methyl Chloride .31-.37/kg -1.556 $ 340.00 $ (529.04) Triethylamine 1800/tonne 0.058 $ 1,800.00 $ 104.40 MeOH w/ recycle .96-2.11/gal 0.457 $ 105.47 $ 48.20 HCl 85.43-93.7/ton 0.075 $ 89.57 $ (6.72) Dimethylphosphine 2435/tonne 1.01 $ 2,424.00 $ 2,448.24 Methylal 3000/tonne -0.5 $ 1,500.00 $ (750.00) Formaldehyde .21/lb 0.482 $ 94.50 $ 45.55 NaOH 500/tonne 0.255 $ 500.00 $ 127.50
*Can be sold for revenue Total Cost $ 2,420.93
Revenue $ 30,000,000 Annual Cost $ 12,104,700
26
EconomicAnalysis–AnnualRevenue
Net Present Value (NPV)
27
($20)
($15)
($10)
($5)
$0
$5
$10
$15
0 1 2 3 4 5 6 7 8 9 10
MillionsofD
ollars
Year
EconomicAnalysis–Profitability
Break-evenpoint:Year5
Internal Rate of Return
28
EconomicAnalysis–Profitability
($20)
($15)
($10)
($5)
$0
$5
$10
$15
0 1 2 3 4 5 6 7 8 9 10
MillionsofD
ollars
Year
IRR:28%
Process Specific • Formaldehydeandothercorrosiveagents
• Stainlesssteelpipingandstorage• HazardousWaste(formaldehyde,chloromethane)
• DisposedinClassIinjecKonwell• ProcessWaste
• SenttoPOTW
• MethanolandTEA• Minimizeuseviarecycling
29
Environmental,Safety&HealthAnalysis
General • OSHAstandards• SafetytrainingandPPEforallemployees• HighpressurevesselssafetyprecauKons
• Pressurereliefvalves• Hightemperatureunits
• InsulaKon• PPE
30
Environmental,Safety&HealthAnalysis
Uncertainties • Pressuredropsthroughheatexchangersneglected• PumprequirementsduetoelevaKonchangesroughlyesKmated• PatentroyalKes
31
Recommendations • FormaldehydeseparaKonneedstobeinvesKgatedonpilot-scale• InvesKgateeconomicsofrecoveringandsellingchloromethane• PossibilityofreacKngawayformaldehyde
• FurtherheatintegraKonpossible
32
Conclusion • Processdesigncriteriamet
• 99.9wt%purity• 5,000tonnesperyear
• FavorableEconomics• OperaKngCosts:• Revenue:• NPV:$12.4millionaper10years
• EnvironmentalregulaKonsmet• MichiChemshouldmoveforwardwiththeprojectoncetheformaldehydeseparaKoncanbeverifiedonpilot-scale
33
Questions?
KyKiefer,[email protected],[email protected]
PriyaRajendran,[email protected],[email protected]
SpecialThanksTo:
MichaelDunsky,TechnicalSupervisorElaineWisniewski,TechCommSupervisor
34
Glycine Process
35
Market Outlook
36