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Re: EH&S in Capital Projects



Joann...At 02:52 PM 12/15/1999 -0500, Joann Cortese wrote:

>I work in the chemical manufacturing industry. I am trying to track money
>spent on environmental and safety upgrades. It is straight forward when
>installing a pollution control device or safety equipment (100%). Does
>anyone know a rule of thumb when allocating the cost of a new piece of
>process equipment or other auxiliary equipment that also may have process
>safeguards and environmental benefits? 
>
>

A number of recent studies have shown a "rule-of-thumb" that, for every
known $1.00 of capital investment in the process manufacturing industries,
there are typical unknown expenditures of approximately $3.56 -> $5.00.

My personal experience with designing synthetic organic chemical
manufacturing plants has been that pollution control devices necessary to
comply with total-media emissions regulations can command as much as 12% ->
20% of the total installed capital cost for a plant.

Hope this helps,

Regards,

Mark Reider
www.reiderconsulting.com