The definitive study for a sulphuric acid plant that is to be commissioned at end-December 2024 has a capital commitment of $185 million (in Dec 2024 dollars). That plant is designed to produce 30,000 tonnes per annum of H2SO4. I am pricing a H2SO4 plant to produce 25,000 tonnes per annum in my Dec 2022 study. CPI forecasts suggest that the inflation rate over the next two years will be 2.1% per annum. Using the 6/tenths rule, calculate the approximate capital cost of the 25,000tpa plant in Dec 2022 money terms.

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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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  1. The definitive study for a sulphuric acid plant that is to be commissioned at end-December 2024 has a capital commitment of $185 million (in Dec 2024 dollars). That plant is designed to produce 30,000 tonnes per annum of H2SO4. I am pricing a H2SO4 plant to produce 25,000 tonnes per annum in my Dec 2022 study. CPI forecasts suggest that the inflation rate over the next two years will be 2.1% per annum. Using the 6/tenths rule, calculate the approximate capital cost of the 25,000tpa plant in Dec 2022 money terms.
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