Lang factor

Abstract: Capital cost assessment is an integral part of an evolving process design. The assessment should consider installed equipment costs inclusive of plant bulk items and not solely purchased equipment costs. The ratio of installed equipment cost to purchased equipment cost varies much more widely for individual equipment items than for entire plants; the ratio depends on equipment class, design, size and construction materials as well as plant layout. The factored (IChemE) method outlined in the Institution of Chemical Engineers ’blue booklet’ is of immediate use and provides a basis for checking detailed estimates. Some experience in the application of the IChemE method by the authors is reviewed. Recommendations are made for broadening the inputs for estimating, and some factors are proposed for estimating installed costs of equipment of different classes. Quantitative data are also presented for cost breakdown in entire plants arising from project reviews by the authors.

Abstract: Constructing a commercial biorefinery involves significant financial and technical risks that may affect investor willingness to commit funds. Repurposing existing industrial facilities has been proposed as a means to lessen the investment risk in constructing a new biorefinery through reduced financial requirements and startup costs. This research provides a decision-making tool for estimating the repurpose potential of existing industrial facilities considered for conversion to a biorefinery. It applies well-established techniques for capital cost estimation of Greenfield biorefinery and pulp mill infrastructure and assets to determine their repurpose potential as a biorefinery. It demonstrates how capital cost reduction is highly dependent on the process technology present in the subject facility. A factored approach is employed to assign valuation to the major capital cost components of a Greenfield biorefinery. Existing facilities are then assessed for their compatibility through an infrastructure and asset analysis to determine an estimated capital percent savings that may be realized through repurposing into a biorefinery. Private and public databases and general facility process designs are used to determine the presence of equipment in each facility assessed. A yes/no analysis is performed to assign full cost to facility infrastructure and assets not present in the biorefinery and no cost to those that are present. This methodology provides an economic valuation tool for facility assessments as a metric for facility comparisons, and may be used to assist in decision-making regarding the suitability of a facility for repurposing. © 2017 Society of Chemical Industry and John Wiley & Sons, Ltd

Abstract: The Lang factor is a one of the factored estimating techniques that is recommended American Association of Cost Engineers (AACE) International for class 4 and class 5 estimates. This method was proposed by Hans J. Lang in 1940’s use a simple formula: consist of a set of factor multiplied by the Total Equipment Cost (TEC) to obtain the Total Plant Cost (TPC). These factors are 3.10 for solid plant, 3.63 for solid-fluids plant and 4.74 for fluids plant. Over the ensuing decades, several people tried to calculate the Lang factor by using their current data. In this paper, the fluid plant Lang factor was updated and tested its accuracy, precision and reliability by using historical project data from a major Indonesian national oil company.