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Problem 3 (40%) Comparison of alternatives Hydrogen sulfide is a corrosive and toxic gas that is disposed as byproduct in sweetening process of natural gas. Some processes, such as Claus process and the LO-CAT, are used to produce sulfur from a highly hydrogen sulfide and carbon dioxide concentration streams, but processing is expensive and the economy may not be attractive. Another disposal alternative is to inject these gases in depleted subsurface oil reservoirs. Use the future worth method with co-terminated assumption to rank the less expensive of the below alternatives. Assume an interest rate of 5%. Alternatives Million $ Claus process Million $ Smillion LO-CAT process Total 7.3 Total 30 Capital investment Acid gas injection Equipment Labor Management overhead $ million/year 1.3 0.4 10% 1.5 Overhead million $/year 10% 2 overhead Million $/year 10% 1.5 Add to total cost Annual operating cost Operation time Days per year 330 days per year 330 Days per year 2 O Million $/year Product S/MT 1.5 50 Million $/year 2 Product $/MT 50 Operation cost Million $/year Surfur prices/MT No production MT:metric ton Plant capacity No production Metric ton/year Useful life (years) Market value Problem 4 (10%) Estimate the AW (annual worth) of problem 3 for each alternative

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