technology selection 25012006

7/30/2019 Technology Selection 25012006

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Technology Selection


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You want to put up aProcess Unit

Steps involved

Feasibility study

Basic design Detailed engineering

Procurement & construction

Startup & operation

But what is missing ?

- THE TECHNOLOGY


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What is technology ?

Know how based on which the unit isdesigned and operated to achieve the

process objective


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But then why a technology

selection?

Answer is simple:

You do not have the technology but need oneto meet your process objective

Two or more parties can offer you the

technology you need


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Process objectives driven by:

Feedstock type/availability/quality

Product type/demand/specifications Performance requirements

Plant economics

Environmental stipulations


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Licensed

Non-licensed

orOpen-art

Technology

Two Types of Process Technology


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Licensed Units

Examples

Naphtha/Diesel Hydrotreaters

Catalytic Reformer

Hydrocracker

Fluid Catalytic Cracker

Sulphur Recovery


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Non-Licensed Process Units

(Open-art Units)Examples

Crude/Vacuum Distillation

Naphtha Stabiliser/Splitter

Caustic Wash

Amine Absorption/Regeneration

Sour Water Stripper


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normally pertains to the

LICENSED UNITS


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Technology

Selection

Technology

Evaluation

Licensor

Evaluation

Licensor

Selection

are synonyms


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Who can do the

technology selection ?

Technology selection requires

Basic or conceptual knowledge on technology

Experienced and professional approach

Confidentiality of information

Uniformity of yardsticks

Unbiased but firm opinion

Ability to stand post selection scrutiny

Job is entrusted to a party of good standing in

this activity area or carr ied out by client himself


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Steps Involved in


A) Prior to Receipt of Proposals

- Finalisation of design basis, criteria & procedureof evaluation with client

- Preparation of Notice Inviting Tender (NIT)or Bid Enquiry Document (BED).

- Finalisation of list of licensors with client

Example : Chevron, UOP, Shell &

IFP for Hydrocracker

- Setting schedule for receipt of proposals

- Floating of NIT


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Contents of NIT

- Letter inviting proposals

- Instructions to licensor

- Technical specifications- Scope of licensors services & supplies

- Commercial terms & conditions

- Information required in technical proposal

- Information required in commercial proposal

- Time schedule


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Technical Specifications

- Processing objective

- Definition of battery limits

- Unit capacity

- Feedstock characteristics

- Product specifications

- Battery limit conditions

- Utilities definition

- Catalysts & Chemicals

- Unit optimisation criteria

- Environmental and safety considerations

- Specific process design guidelines


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Scope of Licensors

Services & Supplies

- Supply of Basic Design & Engineering Package

(BDEP)

- Review of detailed engineering documents

(to the extent necessary as per licensor)- Supply of proprietary catalysts, chemicals (e.g.

adsorbent) & equipment (e.g. rotary valve)

- Training of clients personnel in operating

unit/classroom- Assistance during pre-commissioning & commissioning

- Assistance during performance guarantee run


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Information required intechnical proposal

- Salient features, description, flow diagram

- Conformity with product specifications

- Main operating conditions

- Overall yields, material balance

- Catalyst details

- Reactor features

- Equipment list & broad specifications

- Chemicals requirements

- Utilities estimate

- Estimate of gaseous, liquid, solid effluents

- Plot area requirement


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Information required incommercial proposal

- License fee on fully paid-up basis

- Fee for supply of BDEP

- FOB price of proprietary catalysts, adsorbents, equip.

- Per diem fee + local allowances for assistance during Pre-commissioning and commissioning

Performance guarantee run

- Fee for training


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Information required in

commercial proposal (contd..)

- Process guarantees & liabilities

Unit throughput

Turndown Product yields

Product specifications

Catalyst life

Consumption of key utilities- Commercial references


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Steps involved in Selection

of Technology

A) Receipt of Proposals

B) Subsequent to receipt of proposals

- Identification and receipt of balance information

- Question on technical proposal (TQs)

- Questions on unpriced commercial proposal (CQs)- Replies to TQs & CQs from licensors

- Discussions with licensors

- Technical evaluation

- Opening of priced bids

- Commercial evaluation

- Recommendations to client

Typically takes 12-16 weeks after receipt of proposals


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Technical Evaluation

Proven ness of technology

(Commercial references)

Technology features

Scope of work


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Technology Features tobe Analysed

- Feed & product characteristics

- Product yields

- Process configuration details

- PFD

- Operating conditions

- Catalysts/chemicals details : Availability

- Reactor design aspects

- Equipment specifications : Screen & supplement

- Utilities consumption

- Plant operation, maintenance, safety features

- Process guarantees


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Commercial Evaluation

Features to be analysed

- Terms of payment

- Deviations in scope of work/supplies

Cost estimates based on

- Broad equipment specifications- In house data base

- Cost of proprietary items

Product yields, utilities, catalyst life as

concluded in technical evaluation Calculate Net Present Value (NPV)


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Basis for NPV Calculations

- Discount rate : 12%

- Feedstock quantity

- Guaranteed yields of products

- Guaranteed consumption of utilities- Catalyst/adsorbent quantity as given by licensors

- Guaranteed ultimate life of catalysts & chemicals

- Estimated plant cost

- License, BDEP, training fees- Fees for assistance during detailed engg, etc.

- Fees for assistance during start up, etc.


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Basis for NPV Calculations(contd)

- Local taxes on fees & services

- Custom duty, ocean freight, handling, insurance on

catalysts and adsorbents- Plant life : 15 years

- Foreign exchange rate as on date of opening of pricebids


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Basis for Recommendation

95% weighted value is given for the NPVcalculated and balance 5% weighted value is

given for compliance to commercial terms and

conditions. The proposal resulting in maximum

weighted value is recommended for the selection

of licensor.


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Precautions While Acquiring

the Technology

Commercially proven technology from

reputed licensor shall be selected.

For semi commercial technology, verify the claims by

licensor. For technology from operating company, check

availability of adequate documents.

For technology from research labs, study scale up

method, process design aspects and detail engineeringproblems.

Study contract document for legal/commercial

implications.

Study tall claims by plant visit.

technology selection 25012006

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