Calculations for Profit Margin for 2000 Ton/ Year Capacity

Capacity of Hid-Kim was decided as 2000 ton/year. With this capacity, Hid-Kim has a market rate; 10% of europe market and 2% of world hydrazine production. According to this capacity, hydrogen peroxide process was choosen for the optimum production of hydrazin. Due to this capacity and these informations, profit margin was found as 8000$/ton hydrazine.

Price of NH3 : 400 $/ton = 0,4 $/kg (1,1 kg consumed for 1kg product)
Price of H2O2 : 400 $/ton = 0,4 $/kg (1,8 kg consumed for 1kg product)
Price of N2H2 : 9160 $/ton = 9,16 $/kg product
Total price of input : 1,16 $/ 1kg product
Profit Margin = 8$/1 kg product = 8000$/ton = 16 million $/year (for 2000 ton/year capacity)

Process Concept Diagram of Peroxide Process

Comparison of Production Processes

Raschig Process

Rashing process is the most common used process in the world. However, comparison with other processes; this process is older and has lower yields. For this process, dilute solutions and a very high ammonia/hypochlorite ratio are essential in order to obtain reasonable yields. Evaporation costs are therefore high even when steam savings are realized.

Olin-Raschig Process

This is the improved version of Rashing process by Arc Chemicals Corp. In the Olin Raschig process, which is used by Olin to produce anhydrous hydrazine for aerospace applications, the production of sodium hypochlorite is carefully controlled. A low temperature is used to prevent decomposition and chlorate formation, and the excess of sodium hydroxide is kept at a low level.

Ketazine Process

The ketazine process is a variation of the Raschig process and is based on the reaction of chloramine with ammonia in the presence of acetone at pH 12 – 14.

The ketazine process has less energy intensive, an important consideration as energy costs escalate. Disadvantages of the ketazine process are the need to dispose of organic by-products, the loss of acetone, and the problem of handling acetone vapors. Also, it is difficult to remove all the organics from the final product.

Urea Process

In a further modification of the fundamental Raschig process, urea can be used in place of ammonia as the nitrogen source. This process has been operated commercially. Its principal advantage is low investment because the equipment is relatively simple. For low production levels, this process could be the most economical one. With the rapid growth in hydrazine production and increasing plant size, the urea process has lost importance, although it is reportedly being used.

Fisons Process

This process, originally operated by Whiffen and Sons, was developed by Fisons and went on stream in the 1960s. It used methyl ethyl ketone instead of acetone to trap the hydrazine; the

hydrolysis was carried out with sulfuric acid. This process is no longer operated.

Peroxide Process

The most recent hydrazine process, invented by PCUK, is operated by ATOFINA in France and by Mitsubishi Gas in Japan. Hydrogen peroxide is the oxidizing agent in this process. The peroxide process has many advantages compared with other processes: no salt by-product, high yields, low energy consumption, low molar excess, no aqueous effluent treatment.

*In the light of this information, peroxide process is choosen for production method.

The economics of this peroxide process in comparison to the Raschig or hypochlorite–ketazine processes depend on the relative costs of chlorine, caustic, and hydrogen peroxide. An inexpensive source of peroxide would make this process attractive. Its energy consumption could be somewhat less, because the ketazine in the peroxide process is recovered by decantation rather than by distillation as in the hypcochlorite process. A big advantage of the peroxide process is the elimination of sodium chloride as a byproduct; this is important where salt discharge is an environmental concern. Block flow diagram of this process is in Appendix part.

Production and Consumption Data in the World

Production and consumption data of hydrazine in the world was researched and following figure was graphed.

In order to decide capacity and target market for this project production and consumption data in the world was examined. According to Figure 2, it can be seen that there is a 2000 ton/year demand in europe. Due to socioeconomic reasons and easy transportation europe was selected as target market.

In Figure 3 build up capacities of the leading firms can be seen. According to this figure, in europe market, Hid-Kim (factory that is going to be built after this project) has to compete with big firms like Olin, Mobay and Bayer. Hid-Kim lays on the right side of this graph, reason of this is, there is no need of hydrazine in world market.

Europe market rate of Hid-Kim can be seen in Figure 4.

Import and Export Values in Turkey

Import and export values of hydrazine were taken from Turkey Statistical Institue. According to this information, it was learned that there is no production of hydrazine in Turkey. Thus, export of hydrazine does not exist. Import data of hydrazine in 5 years are shown below.

According to Figure 1, amount of import data is approximately 100kg/year and 3000$/year. Thus, it can be said that, there is no demand of hydrazine in Turkey. With the capacity of factory that is going to be built, demand of hydrazine in Turkey will be satisfied. Because of these reasons, our market analyse is enlarged globally.

Introduction to Hydrazine

Hydrazine , N2H4, a colorless liquid having an ammoniacal odor, is the simplest diamine and unique in its class because of the N-N bond. It was first prepared in 1887 by Curtius as the sulfate salt from diazoacetic ester.

Hydrazine and its simple methyl and dimethyl derivatives have endothermic heats of formation and high heats of combustion. Hence, these compounds are used as rocket fuels. Other derivatives are used as gas generators and explosives. As a strong reducing agent, hydrazine is used for corrosion control in boilers and hot-water heating systems; also for metal plating, reduction of noble-metal catalysts, and hydrogenation of unsaturated bonds in organic compounds. Hydrazine is also an oxidizing agent under suitable conditions. Having two active nucleophilic nitrogens and four replaceable hydrogens, hydrazine is the starting material for many derivatives, among them foaming agents for plastics, antioxidants, polymers, polymer cross-linkers and chain-extenders, as well as fungicides herbicides, plant-growth regulators, and pharmaceuticals.