On the feasibility study report for the project
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Let’s discuss our views on feasibility study reports for domestic projects. This post was last edited by hgl197004 on 2008-2-20 17:38.]
As an example to stimulate further discussion, I invite everyone to share their insights: The main proposal outlined in the \"Feasibility Study Report on the Joint Renovation Project of Ethylene Production Facilities at Lanzhou Petrochemical and Daqing Petrochemical in China\" is as follows: A facility with an output capacity of 300,000 tons per year for ethylene production will be built in Lanzhou, utilizing equipment taken from the renovation projects of ethylene production facilities at Daqing Petrochemical, such as reactors and various key towers. For Lanzhou, can they be satisfied with using garbage taken from others? But in order to get **’s approval, it was reported this way first, and then everyone did things on their own without any joint renovation. In Daqing, the original plant had a capacity of 300,000 tons and was built around 1987. The previous round of upgrades aimed to increase its capacity to 480,000 tons based on the existing infrastructure; however, the plan for upgrading the plant in place was changed during implementation, and instead a new production line was added next to the existing plant, with a capacity of 180,000 tons. It is said that there is a large surplus in the compressor capacity (270,000 tons). Why do this? No comments here. For another expansion, the company is once again relying on the option of upgrading the existing facilities (an option that **the regulatory authorities favor**), or it could opt for joint upgrades across different regions – which would be a quite ambitious approach. ～～ What is the feasibility of upgrading an old plant with a capacity of 300,000 tons by removing its bottlenecks in order to double its capacity? ~~~ Please share your opinions. That feasibility study report for the joint renovation won the first prize in engineering consulting. On the Daqing side, after the changes proposed in Lanzhou, no corresponding adjustments were made; instead, the original plan for renovation was followed, and the basic design was completed. It was only much later that they changed their mind and decided to build a new set of facilities.
Preparation of the feasibility study report for a 600,000-ton/year olefins project generally includes the following contents:
**Table of Contents**
Chapter 1 General Introduction
1.1 Overview
1.1.1 Project name and sponsoring entity
1.1.2 Basis for preparation
1.1.3 Preparation principles
1.1.4 Project background
1.1.5 Profile of the owner
1.1.6 Purpose and significance of the project construction
1.1.7 Scope of project construction
1.2 Research conclusions and recommendations
1.2.1 Brief summary of research conclusions
1.2.2 Existing problems and recommendations
Chapter 2 Market analysis and price forecasting
2.1 Overview
2.2 Market analysis
2.3 Price forecasting
Chapter 3 Product scheme and production scale
3.1 Product scheme
3.2 Production scale
Chapter 4 Overall process flow and plant configuration
4.1 Selection of raw material routes
4.2 Plant-wide equipment configuration and arrangement of production units
4.3 Process technology and its source
4.4 Description of overall process flow
4.5 Overall plant process flow diagram and overall material balance
Chapter 5 Automation technical scheme
5.1 Plant-wide automation level and main control schemes
5.1.1 Overview
5.1.2 Automation level
5.1.3 Main control schemes
5.1.4 Communication network
5.1.5 Safety and protective measures
5.2 Determination of instrument selection
5.2.1 Selection principles
5.2.2 Control room monitoring system
5.2.3 Field instruments
5.3 Power supply
5.3.1 Instrument power supply
5.3.2 Instrument air supply
5.4 Instrument repair workshop
5.4.1 Workshop layout
5.4.2 Selection of maintenance equipment
Chapter 6 Supply of raw materials, fuels and auxiliary materials
6.1 Supply of raw materials and fuels
6.1.1 Specifications and consumption volumes of raw materials and fuels
6.1.2 Sources of raw materials and fuels
6.2 Supply of auxiliary materials
6.3 Supply of utilities
Chapter 7 Plant construction conditions and site selection
7.1 Plant construction conditions
7.1.1 Natural and geographical overview of the site
7.1.2 Local socio-economic conditions
7.1.3 External transportation conditions
7.1.4 Water resource conditions
7.1.5 Power supply
7.1.6 Natural gas resources
7.1.7 Coal resources
7.2 Site selection
Chapter 8 Energy conservation
8.1 Energy consumption indicators and analysis
8.2 Summary of energy-saving measures
Chapter 9 Environmental protection
9.1 Current state of the site and regional environment
9.1.1 Geographical location and topography of the site
9.1.2 Climatic characteristics
9.1.3 Hydrogeology
9.2 Pollutant emission standards applicable to the project
9.2.1 Environmental quality standards
9.2.2 Emission standards
9.3 Main sources and types of pollutants
9.4 Environmental protection and treatment measures
9.4.1 Exhaust gases
9.4.2 Wastewater
9.4.3 Solid waste disposal measures
9.4.4 Noise
9.4.5 Measures for reducing greenhouse gas CO₂ emissions
9.5 Investment in environmental protection facilities
9.6 Preliminary analysis of environmental impacts
Chapter 10 Occupational safety and industrial hygiene
10.1 Design basis
10.2 Occupational safety and health standards adopted in design
10.3 Analysis of occupational hazard factors during production
10.3.1 Fire, explosion hazards and toxicity
10.3.2 Hazards caused by coal dust
10.3.3 Hazards of chemical corrosion
10.3.4 Noise hazards
10.3.5 Hazards of static electricity and lightning
10.3.6 Hazards of accidental injuries and chemical burns
10.4 Preventive measures adopted in design
10.4.1 Overall layout design
10.4.2 Electrical and automation safety design
10.4.3 Measures to prevent operational errors during production
10.4.4 Preventive measures against dust and toxic substances
10.4.5 Preventive measures against chemical corrosion
10.4.6 Noise prevention and control measures
10.4.7 Preventive measures against mechanical injuries and falls
10.4.8 Anti-scald measures
10.4.9 Design of safety colors and safety signs
10.5 Organization and staffing for occupational safety and health
10.5.1 Organizational setup and staffing
10.5.2 Occupational safety and health education system
10.6 Special investment in safety and health
Chapter 11 Fire protection
11.1 Design basis and standards
11.2 Classification of fire hazards of the project
11.2.1 Project description
11.2.2 Characteristics of the production process
11.2.3 Properties of major hazardous substances
11.2.4 Analysis of fire and explosion risks of equipment
11.3 Fire protection measures
11.3.1 Process fire protection design
11.3.2 Overall layout fire protection design
11.3.3 Building fire protection design
11.3.4 Lightning and static electricity protection
11.4 Fire protection facilities
11.5 Fire station
11.6 Estimation of fire protection investment
Chapter 12 Plant organization and labor staffing
12.1 Plant management system
12.2 Total plant staffing
12.3 Sources of personnel and training
Chapter 13 Project implementation plan
13.1 Planning of the project cycle
13.2 Implementation schedule planning
Chapter 14 Investment estimation
14.1 Overview of engineering projects
14.2 Basis for preparation
14.3 Investment analysis
14.4 Other matters requiring explanation
14.5 Investment estimation
Chapter 15 Financial analysis
15.1 Basic data
15.2 Estimation of sales revenue
15.3 Cost estimation
15.4 Financial analysis
15.5 Uncertainty analysis
15.6 Summary of financial analysis
**Appendices to financial analysis:**
Appendix 1 Table of main financial evaluation indicators
Appendix 2 Table of sources and utilization of funds
Appendix 3 Estimation table of depreciation of fixed assets, amortization of intangible and other assets
Appendix 4 Annual total cost table
Appendix 5 Estimation table of working capital
Appendix 6 Estimation table of sales revenue and sales taxes
Appendix 7 Profit and loss statement
Appendix 8 Calculation table for loan repayment
Appendix 9 Planned cash flow statement
Appendix 10 Balance sheet
Appendix 11 Financial cash flow statement (total investment)
Appendix 12 Financial cash flow statement (owner’s equity only)
Appendix 13 Sensitivity analysis table
**Illustrations:**
No. | Drawing title | Drawing No. | Quantity
1 | Regional location map | 07044-FP08-01-01 | 1
2 | Overall layout plan | 07044-FP08-01-02 | 1
3 | Plant-wide overall material flow diagram | 07044-FP08-01-03 | 1
4 | Plant-wide water balance diagram | 07044-FP08-01-04 | 1
5 | Plant-wide steam balance diagram | 07044-FP08-01-05 | 1
**Table of Contents**
Chapter 1 General Introduction
1.1 Overview
1.1.1 Project name and sponsoring entity
1.1.2 Basis for preparation
1.1.3 Preparation principles
1.1.4 Project background
1.1.5 Profile of the owner
1.1.6 Purpose and significance of the project construction
1.1.7 Scope of project construction
1.2 Research conclusions and recommendations
1.2.1 Brief summary of research conclusions
1.2.2 Existing problems and recommendations
Chapter 2 Market analysis and price forecasting
2.1 Overview
2.2 Market analysis
2.3 Price forecasting
Chapter 3 Product scheme and production scale
3.1 Product scheme
3.2 Production scale
Chapter 4 Overall process flow and plant configuration
4.1 Selection of raw material routes
4.2 Plant-wide equipment configuration and arrangement of production units
4.3 Process technology and its source
4.4 Description of overall process flow
4.5 Overall plant process flow diagram and overall material balance
Chapter 5 Automation technical scheme
5.1 Plant-wide automation level and main control schemes
5.1.1 Overview
5.1.2 Automation level
5.1.3 Main control schemes
5.1.4 Communication network
5.1.5 Safety and protective measures
5.2 Determination of instrument selection
5.2.1 Selection principles
5.2.2 Control room monitoring system
5.2.3 Field instruments
5.3 Power supply
5.3.1 Instrument power supply
5.3.2 Instrument air supply
5.4 Instrument repair workshop
5.4.1 Workshop layout
5.4.2 Selection of maintenance equipment
Chapter 6 Supply of raw materials, fuels and auxiliary materials
6.1 Supply of raw materials and fuels
6.1.1 Specifications and consumption volumes of raw materials and fuels
6.1.2 Sources of raw materials and fuels
6.2 Supply of auxiliary materials
6.3 Supply of utilities
Chapter 7 Plant construction conditions and site selection
7.1 Plant construction conditions
7.1.1 Natural and geographical overview of the site
7.1.2 Local socio-economic conditions
7.1.3 External transportation conditions
7.1.4 Water resource conditions
7.1.5 Power supply
7.1.6 Natural gas resources
7.1.7 Coal resources
7.2 Site selection
Chapter 8 Energy conservation
8.1 Energy consumption indicators and analysis
8.2 Summary of energy-saving measures
Chapter 9 Environmental protection
9.1 Current state of the site and regional environment
9.1.1 Geographical location and topography of the site
9.1.2 Climatic characteristics
9.1.3 Hydrogeology
9.2 Pollutant emission standards applicable to the project
9.2.1 Environmental quality standards
9.2.2 Emission standards
9.3 Main sources and types of pollutants
9.4 Environmental protection and treatment measures
9.4.1 Exhaust gases
9.4.2 Wastewater
9.4.3 Solid waste disposal measures
9.4.4 Noise
9.4.5 Measures for reducing greenhouse gas CO₂ emissions
9.5 Investment in environmental protection facilities
9.6 Preliminary analysis of environmental impacts
Chapter 10 Occupational safety and industrial hygiene
10.1 Design basis
10.2 Occupational safety and health standards adopted in design
10.3 Analysis of occupational hazard factors during production
10.3.1 Fire, explosion hazards and toxicity
10.3.2 Hazards caused by coal dust
10.3.3 Hazards of chemical corrosion
10.3.4 Noise hazards
10.3.5 Hazards of static electricity and lightning
10.3.6 Hazards of accidental injuries and chemical burns
10.4 Preventive measures adopted in design
10.4.1 Overall layout design
10.4.2 Electrical and automation safety design
10.4.3 Measures to prevent operational errors during production
10.4.4 Preventive measures against dust and toxic substances
10.4.5 Preventive measures against chemical corrosion
10.4.6 Noise prevention and control measures
10.4.7 Preventive measures against mechanical injuries and falls
10.4.8 Anti-scald measures
10.4.9 Design of safety colors and safety signs
10.5 Organization and staffing for occupational safety and health
10.5.1 Organizational setup and staffing
10.5.2 Occupational safety and health education system
10.6 Special investment in safety and health
Chapter 11 Fire protection
11.1 Design basis and standards
11.2 Classification of fire hazards of the project
11.2.1 Project description
11.2.2 Characteristics of the production process
11.2.3 Properties of major hazardous substances
11.2.4 Analysis of fire and explosion risks of equipment
11.3 Fire protection measures
11.3.1 Process fire protection design
11.3.2 Overall layout fire protection design
11.3.3 Building fire protection design
11.3.4 Lightning and static electricity protection
11.4 Fire protection facilities
11.5 Fire station
11.6 Estimation of fire protection investment
Chapter 12 Plant organization and labor staffing
12.1 Plant management system
12.2 Total plant staffing
12.3 Sources of personnel and training
Chapter 13 Project implementation plan
13.1 Planning of the project cycle
13.2 Implementation schedule planning
Chapter 14 Investment estimation
14.1 Overview of engineering projects
14.2 Basis for preparation
14.3 Investment analysis
14.4 Other matters requiring explanation
14.5 Investment estimation
Chapter 15 Financial analysis
15.1 Basic data
15.2 Estimation of sales revenue
15.3 Cost estimation
15.4 Financial analysis
15.5 Uncertainty analysis
15.6 Summary of financial analysis
**Appendices to financial analysis:**
Appendix 1 Table of main financial evaluation indicators
Appendix 2 Table of sources and utilization of funds
Appendix 3 Estimation table of depreciation of fixed assets, amortization of intangible and other assets
Appendix 4 Annual total cost table
Appendix 5 Estimation table of working capital
Appendix 6 Estimation table of sales revenue and sales taxes
Appendix 7 Profit and loss statement
Appendix 8 Calculation table for loan repayment
Appendix 9 Planned cash flow statement
Appendix 10 Balance sheet
Appendix 11 Financial cash flow statement (total investment)
Appendix 12 Financial cash flow statement (owner’s equity only)
Appendix 13 Sensitivity analysis table
**Illustrations:**
No. | Drawing title | Drawing No. | Quantity
1 | Regional location map | 07044-FP08-01-01 | 1
2 | Overall layout plan | 07044-FP08-01-02 | 1
3 | Plant-wide overall material flow diagram | 07044-FP08-01-03 | 1
4 | Plant-wide water balance diagram | 07044-FP08-01-04 | 1
5 | Plant-wide steam balance diagram | 07044-FP08-01-05 | 1
As a supplementary note, there is now a strong emphasis on energy and water conservation, with evaluations being carried out in accordance with new regulations. Well, several feasibility reports have been prepared; one of them showed that the capabilities of the actual installation did not match the requirements, and this was before even attempting to get approval. Then there’s the matter of companies trying to make profits for themselves, haha – just my humble opinion.
(1) Basic knowledge of feasibility study reports A feasibility study report is a written document prepared before initiating a construction or research project, in which a thorough, in-depth technical analysis and economic evaluation are conducted regarding the feasibility and effectiveness of the project, as well as its technical solutions and policies. The purpose of such a report is to determine the most optimal solution and the best timing for implementation, one that is both technically sound and economically viable. There is no fixed format for a feasibility study report; the format is determined based on the content that needs to be studied. Generally speaking, a main framework should consist of ten sections: cover page, abstract, table of contents, list of figures, glossary, introduction, main text, conclusions and recommendations, references, and appendices. There are no fixed requirements for the cover of a feasibility study report, but elements such as the project name, the organization that prepared the report, and the date of preparation are essential. Among them, items such as abstract, table of contents, list of figures and tables, glossary, references, and attachments can be selected according to the needs of the report. The introduction generally includes the background and purpose of the project, its scope, as well as the persons responsible for and reporting on the project, and an overview of the feasibility study. (Note: The article you are reading was compiled by “First Model Essay Website www.diyifanwen.com”; the copyright belongs to the original author.) (2) Main contents of the feasibility study report The basic contents of a feasibility study report are those that are presented in the main body of the report. It is the foundation upon which conclusions and recommendations are derived. It requires a comprehensive and systematic analysis as the primary method, with economic benefits at its core; by taking into account various factors that affect the project, extensive data is utilized to determine whether the proposed project is feasible. Once the feasibility study of the project has completed the analysis of all systems, a comprehensive analytical evaluation of the entire feasibility study should be provided, outlining the advantages and disadvantages as well as recommendations. For the purpose of reaching a conclusion, it is often necessary to include additional attachments such as test data, supporting materials, calculation charts, and illustrations, in order to enhance the persuasiveness of the feasibility report. A feasibility study report generally consists of an introduction and several sections on specific topics. First, an introduction. The general introduction covers the basic information of the project. In the preparation of the feasibility study report, this section is particularly important; the approval of the project, applications for loans, and the attraction of partners all rely on this part. The general overview generally includes four aspects: the background of the project, its history, a summary of the project, and the party responsible for carrying out the project. The essence of the general introduction is to provide a concise overview of the project and to describe the image and philosophy of the project owner. In many cases, the success or failure of project evaluation, approval, financing, and attracting partners depends to some extent on the quality of the executive summary. Therefore, one must put in great effort when writing, ensuring that the general overview is complete and well-focused, while also paying attention to its coherence with the subsequent content. Second, research on fundamental issues. The study of the basic issues in a feasibility study report is a more principled and systematic overview that results from summarizing, unifying, and balancing various thematic reports. Depending on the project, the content of research on fundamental issues also varies. Currently, there are three relatively representative areas: research on the basic issues of new industrial projects, research on the basic issues of technology import projects, and research on the basic issues of technology-economic policies. Among them, the first aspect of new industrial projects is market research, which focuses on addressing the necessity of establishing such projects ； The second aspect is process research, focusing on addressing technical feasibility issues ； The third aspect is the study of economic benefits, focusing on addressing the rationality of the project. In the actual writing process, people often divide these three issues into ten separate topics for discussion. These ten topics are: market conditions and company size ； Resources, raw materials, and collaboration conditions ； Plant site selection options ； Project technical plan ； Environmental protection plan ； Factory management structure and employee programs ； Project implementation plan and schedule ； Fundraising ； Economic evaluation ； Conclusion. Special Note: The requirements for writing a feasibility study report mainly include the following four aspects: (1) Design plan. The main task of a feasibility study report is to evaluate the pre-designed scheme; therefore, it is necessary to design a research plan in order to clarify the object of study. (2) The content is true. The content covered in the feasibility study report, as well as the data presented, must be absolutely accurate and reliable; there must be no deviations or errors. The information and data used in the feasibility study report must be thoroughly verified to ensure the accuracy of its contents. (3) Accurate prediction. Feasibility study is an activity conducted before investment decisions. It is research conducted before an event occurs; it involves estimating the future development of things, as well as the potential problems and outcomes, and thus has a predictive nature. Therefore, in-depth research and investigation must be carried out, sufficient data must be gathered, and practical forecasting methods must be employed to scientifically predict future prospects. (4) The argument is rigorous. Argumentation is a prominent feature of a feasibility study report. To make it argumentative, it is necessary to employ systematic analytical methods to conduct a comprehensive and systematic analysis of the various factors affecting the project, involving both macro-level and micro-level analyses.
Hehe, many customers try to write this feasibility study report on their own in order to save money! This report suggests that ordinary companies might only show it to design, environmental impact assessment, and safety assessment firms, without reviewing it themselves; I’m not sure how other places handle it
Getting approval for feasibility studies is already tough due to environmental impact assessments, safety evaluations, and water conservation requirements; those experts are there simply to find faults in the proposals. Since the feasibility study report has been approved, it will be difficult to get the subsequent approval reports as well. . . Just like the Prime Minister’s work report.
It actually depends on the purpose for which the feasibility study is being prepared. If it is used merely for a small business to initiate a project, the report can be kept simple; but if it is intended to secure investment, then it needs to be very detailed. Also, nowadays, feasibility studies must include considerations related to energy conservation and environmental protection, as these matters are after all related to people’s livelihoods
There is no need to explain the format and content of feasibility studies – those in the industry are already aware of them. The key issue is that many feasibility studies in China are not prepared to determine whether a project is feasible or not, but rather to determine whether the relevant authorities will approve it; this is what is meant by a \"feasibility study for approval purposes\". The Sichuan large ethylene project is located upstream of the Yangtze River, and there is no associated oil refinery to provide the raw materials needed for ethylene cracking; therefore, an oil refinery must be built to supply these raw materials. But where will the oil come from? There are many debates surrounding this project in terms of raw materials and environmental protection. When the review meeting was held, one requirement was: no objections should be raised, and it was essential to ensure that the project got approval. Experts I know who held different opinions were not allowed to attend the review meeting.
There are serious problems with the current process for approving projects; local authorities only consider short-term benefits, and they bring in experts for reviews, but most of those reviews are pointless
Some feasibility study reports are just copied over and over again; it seems that for some projects, it’s already decided in advance whether experts consider them feasible or not.
It’s more or less the same; there’s a lack of understanding of the market, and it was written for the purpose of launching a project rather than taking the market into consideration.
Do any experts have templates for feasibility study reports? I need them urgently
Regulations on the Preparation of Feasibility Study Reports for Oil Refining and Chemical Engineering Projects http://bbs.hcbbs.com/thread-119346-1-1.html
Feasibility study reports for chemical engineering construction projects are prepared to serve those projects; given the current economic situation, people are willing to invest money in such projects. All the feasibility studies show an excellent economic outlook!
A feasibility study report is prepared primarily to enable a project to proceed; without it, approval from the relevant departments and industry authorities cannot be obtained. Most of the figures are fabricated to prove the feasibility of the project, and the market research and analysis are also inaccurate. It’s actually the “feasibility of the unfeasible””