How to estimate the cost of manufacturing an organic chemical

Berkeley W. Cue Jr., Private Consultant, 12 Eska Drive, Ledyard, CT 06339

Power Point Presentation (PDF)

ABSTRACT: This presentation teaches how to estimate the cost of conducting a chemical synthesis at commercial scale. The method includes estimating the cost of each reagent by calculating utilization factors (UF's). UF's are weight units of each chemical used per weight unit of product produced. Knowing the UF and the cost to purchase a unit of a chemical at commercial scale the total cost of reagents, sometimes called cash or variable cost, can be determined. The other component in manufacturing cost is the fixed cost, which includes plant depreciation, labor charges, waste disposal, energy and other factors. The sum of fixed and variable costs equals the manufacturing cost. This technique can beadapted easily to an organic chemistry laboratory course to give the students a better understanding of the costs of various synthetic options. Focusing attention on all aspects of a chemical synthesis, not only the final product yield, is consistent with the twelve principles of green chemistry.