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New DECHEMA/VDI paper: When to go for modular plants concepts?

Modular plants are often considered the concept of the future. However, investment decisions need to be based on facts. The DECHEMA/VDI Working Groups Cost Engineering and Modular Plants provide definitions, evaluation criteria, and examples for the economic and qualitative assessment of different plant construction concepts in the paper "Cost Engineering for Modular Plants".

The decision for building a new plant in the chemical industry needs to be well-prepared – it involves not only large sums of money but also a long-term commitment to a location and/or process. In principle, three concepts for plant construction can be distinguished:

• Conventional stick-built plants, which are built on-site
• Plants made of prefabricated modules
• Flexible modular plants, where individual functional modules can be exchanged and combined as needed.

But which concept is the right one for a specific application? The new paper "Cost Engineering for Modular Plants" provides answers to this question and offers guidance for evaluation and selection. Based on a clear distinction between the three types of plants, the authors discuss both, hard criteria such as CAPEX, OPEX, and time-to-market, as well as qualitative factors that should be considered in the decision-making process. These factors include local conditions such as the space required for the construction site or labor costs, as well as aspects like plant lifespan, flexibility, and future reuse.

Concrete examples are presented to demonstrate how these criteria can be applied to a specific project. Thanks to the attached Excel files, these can be examined in detail. The experts also present an overview of possible evaluation methods to arrive at a good decision. These methods not only include established economical investment evaluation methods but also alternative methods that take uncertainties into consideration.

The paper provides valuable guidance for those involved in the design and engineering of plants. It is available for free download on the DECHEMA website.

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