A new position paper published by the Society for Chemical Engineering and Biotechnology (DECHEMA) in co-operation with the VDI expert group provides in-depth insights into the cost structure and flexibility of modular plant engineering. It aims to provide decision-makers with a sound basis for investing in modular plant concepts.
Different concepts and practical examples
The document distinguishes between different modular designs - from traditional stick-built plants to flexible modular plants - and evaluates them based on criteria such as market adaptability, technical feasibility, capital and operating costs (CAPEX and OPEX), schedules and risks. Other factors such as the flexibility of the system and potential future utilisation options also play a role in the decision-making process.
Practical examples in the paper demonstrate the application of these criteria to specific projects and a variety of evaluation methods are presented. These include not only established investment appraisal methods, but also innovative approaches that take uncertainties and flexibility into account.
Early decision in favour of suitable concepts necessary
A key finding of the paper is that, in principle, no one approach is superior to another. Nevertheless, it is important to make a decision on the concept as early as possible. The evaluation of various aspects of plant flexibility (capacity, process, location) requires additional effort and a rethink of investment decisions. Modular plants can be particularly advantageous in rapidly changing markets where adaptability to new product requirements and the ability to relocate are critical.
The DECHEMA position paper is a sound resource for decision makers in the chemical industry considering new plant designs and provides valuable insights into how modern modularisation techniques can improve the economics and flexibility of production plants.
In addition to the position paper, DECHEMA provides accompanying Excel evaluation tools.
