Comparative Analysis of an Expandable Modular Plant and a Stick-Built TiO₂ Plant

Abstract

Expandable modular plants (EMPs) can be the future of the chemical industry, especially in emerging markets. Using the relative position of points on alternative NPV–time curves from the period of 10–20 years, we compare the economics of an expandable modular TiO2 plant with that of a large-scale TiO2 plant constructed fully on site (stick-built) and present scenarios where the expandable modular approach is economically favorable over the stick-built approach. To simplify the assessment of economic viability between constructing an EMP and a stick-built plant, we introduce a measure known as the flexibility feasibility ratioa certain ratio of unit installed capacity in an EMP to the nameplate capacity of a stick-built plant at which the NPVs are equal at all points on alternative NPV–time curves. We determine that a flexibility feasibility ratio of 0.25 is suitable to install an expandable modular TiO2 plant in Nigeria, relatively.