Process Selection and Capacity Planning. Chp3
Week 4: From Theory to Strategy
Written by: Ahmet Musab (Project Leader)
After two weeks of intense foundational research on ethylene oxide (EO)—from its chemical properties to global and domestic market dynamics—we entered the Week 4 with a new and critical challenge: selecting the production method and defining the capacity of our proposed EO manufacturing facility.
Each phase in this course—Process Design (CED 342) at Gebze Technical University—is designed to build upon the last. This week’s chapter, titled “Process Selection and Capacity,” serves as the technical backbone of our project: determining how we will produce ethylene oxide and on what scale.
Launching Week 4: Strategic Planning and Collaboration
The week began with a face-to-face advisory session with our supervisor, Res. Asst. Şebnem Cingisiz, on Tuesday. Before meeting her, I arranged a series of preparatory meetings with our team to ensure everyone was aligned and ready.
By Wednesday morning, I had already:
✔ Assigned subtopics and roles to each team member
✔ Structured the week’s research around two main axes:
- Process Selection
- Capacity Determination
Our methodology involved dynamic team formation: I continuously adjust sub-groups weekly based on the nature of tasks and individual strengths. Some roles, however, have remained fixed—for instance, Aiman manages all reporting tasks, while Mücahit prepares our weekly PowerPoint presentations.
Why Process Selection Matters
As we examined various production routes, our previous weeks’ research gave us a clear starting point: direct oxidation of ethylene, specifically via oxygen-based technology, had emerged as the most industrially viable route. This week, we had to justify this decision in depth, not just technically, but economically and strategically.
To do that, we analyzed:
- Air-based vs. oxygen-based oxidation
- Alternative technologies: chlorohydrin method, bio-based synthesis, electrochemical routes
- Catalyst systems and reaction kinetics
- Gross profit estimations based on raw material usage
We concluded that oxygen-based direct oxidation, using silver catalysts, offers:
✅ The highest selectivity (~85%)
✅ Lower CO₂ emissions
✅ Simplified downstream processing
✅ Industrial standardization worldwide
We also explored a critical design decision:
🧪 Should we purchase pure oxygen or generate it on-site via an Air Separation Unit (ASU)?
This decision connects directly to capacity, energy consumption, and overall capital investment.
Cost & Profit Calculations: Raw Material Economics
One of our team members, Emirhan, conducted a gross profit analysis based on raw material prices, oxygen supply scenarios, and process efficiencies. We compared:
| Production Route | Gross Profit (USD/ton) |
|---|---|
| Air-Based | $747.29 |
| Oxygen (Purchased) | $516.97 |
| Oxygen (On-Site ASU) | $833.79 |
Though the air-based method initially seemed profitable, its high capital and operational complexity disqualified it for our purpose. The oxygen-based method with on-site production emerged as the most feasible choice for large-scale, long-term viability.
Integrating Market Insight: Why Ethylene Glycol Matters
To validate our technical approach with industrial data, Aslı, Waad, and I investigated the operational strategies of existing global EO producers. A major insight emerged:
➡ Almost all global EO producers operate integrated plants that convert EO to ethylene glycol (EG) on-site.
According to market data:
🔹 ~75% of global EO production is consumed in EG synthesis
🔹 EG is a critical input for antifreeze, PET plastics, and polyester fiber
🔹 Integration enhances product value and optimizes logistics
After consulting with our supervisor, we decided to integrate an EG unit into our plant design. However, we’ve chosen to reflect this decision in our future chapters, as it touches on plant design and optimization.
Capacity Planning and Location Strategy: Why Algeria?
With our process defined, we turned to capacity and location. After benchmarking global EO plants (e.g., BASF, SABIC, Shell), we chose a moderate scale of 250,000 tons/year, balancing:
- Scalability
- Capital cost
- Market accessibility
For location, we selected Algeria based on a multi-faceted analysis of:
🌍 Natural gas pricing (~$1.5/MMBtu)
🌍 Proximity to Europe and Africa
🌍 Investment incentives and trade agreements
🌍 Labor cost advantages
This decision was detailed in our final report and supported by comparative matrices against other regions like the U.S., China, and the Middle East.
Conclusion: Laying the Technical Foundation
This week allowed us to connect our chemical knowledge with industrial realities. We moved from researching “how EO is made” to defining “how we will make it.” Our selected production process and plant capacity reflect the convergence of:
✔ Scientific evidence
✔ Economic modeling
✔ Global industry practices
We completed a detailed report, which you can access below:
As always, each chapter of this journey builds upon the last. By working with precision, we’ve laid a robust technical foundation for the upcoming design phases of our ethylene oxide project.
📌 Follow our project week by week at: www.musabbesbadem.com
📹 Watch a snippet of our weekly presentation here: [YouTube Link]
#ChemicalEngineering #ProcessDesign #EthyleneOxide #GTU #Sustainability #MarketAnalysis
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