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Título de laTUBACOAT Presentación ANTI-COKING SOLUTION FOR FIRED HEATERS Subtítulo, fecha. IN DELAYED COKER, VISBREAKER & VACUUM DISTILLATION UNITS RefComm 2020 September 16, 2020 Sanjay Lodha Global Business Director

Tubacex Group Tubacoat concept Product characterization Coke deposition in fired heater tubes Chemical Inertness and Coking Resistance Study Field applications/Case Studies- Fired Heaters and others Anti Corrosion Commercial Application Conclusion TUBACEX GROUP 2

KEY FACTS Global Presence Steel billets & bars Extrusion Cold finishing Sales: 700 million euros 2600 professionals Full Range of Seamless Stainless tubular Products 15 mills in Spain, USA, Austria, Italy, India, Thailand, Norway, UAE & Saudi Commercial presence in over 30 countries A Service Solutions Company, providing services and master distribution Pipes & tubes fittings Master distribution Commercial network A worldwide leading supplier of Seamless Stainless and High Nickel Alloy Tubes TUBACEX GROUP 3

Tubacoat – Key Advantages Introduction Technology-based company 100% subsidiary of TUBACEX Engineering, industrial development and commercialization of tubular solutions based on advanced innovative coatings Value-added products with Outstanding corrosion resistance in different media and thermal conditions High abrasion resistance (64HRC hardness) Anti-adherent and anti-fouling properties Chemical inertness Specifically developed to TUBACEX GROUP Provide long term reliable & competitive solutions to industrial applications under severe working conditions and extreme environments 4

Tubacoat concept Potential applications Furnaces Heat exchangers Condensers Boilers Reactors TUBACEX GROUP 5

Product Characterization Key Properties MORPHOLOGICAL Roughness Ra and Rz decrease 97% minimizing particle adhesion Continuous coating layer Thickness control based on suspension parameters & rheological properties Chemical bonding between metal substrate and ceramic coating TUBACEX GROUP MECHANICAL Hardness & Elasticity Coating is harder than substrate but less elastic Abrasion resistance 94% decrease in mass loss CHEMICAL THERMAL High corrosion resistance compared to base material under different conditions and standard tests Thermal resistance Good performance under thermal cycling. No delamination & No cracks Chemical inertness of the coated tube surface avoids reactions Thermal conductivity f(T) Average (reference) 6 W/mK 6

Product Characterization Morphological Continuous coating layer Thickness control based on suspension parameters & rheological properties Typical coating thickness range: 100-150 μm TUBACEX GROUP 7

Product Characterization Anti-adherence Roughness. Ra and Rz decrease 97% minimizing particle adhesion TUBACEX GROUP Substrate Ceramic coating Ra 1,5 µm and Rz 7,8 µm Ra 0,04 µm and Rz 0,2 µm 8

Product Characterization Mechanical Abrasion resistance 94% decrease in mass loss 0 cycles 10.000 cycles Mass loss for 10.000 cycles w n w 0 - w n Substrate w10000 94.783 – 94.725 w10000 58 mg Ceramic coating (T153) w10000 119.377 – 119.373 w10000 4 mg TUBACEX GROUP 9

Product Characterization Mechanical Hardness & Elasticity Coating is harder than substrate but less elastic F 300.000mN/20s C --R Same as load increase C --F [mN] 250 Elongation 1,2-1,5% Crumbling 150 Initial transversal cracks 50 0.2 0.4 0.6 0.8 1.0 1.2 1.4 h [µm] Base Material Ceramic coating Hardness (HV) 220 840 Elastic Modulus EIT (GPa) 140 87 Tensile results Rp0.2 MPa Rp1 MPa Rp0.5 MPa Rm MPa 288 323 301 582 Hardness and elasticity properties can be improved by modifying structure and composition of ceramic compounds and process conditions TUBACEX GROUP 10

Product Characterization Thermal Resistance Good performance under thermal cycling No delamination – No crack TUBACEX GROUP 11

Product Characterization Characteristics Tubacoat glass-finished layer will protect the inner or outer surface of the tubes. TUBACOAT Deposition Rate will decrease due to its chemical inertness and smoothness of surface Removal Rate will increase due to its anti-adherence properties Heat Transfer loss will reduce due to lower fouling layer Fluid Flow will maintain/increase the stream TUBACEX GROUP 12

Product Characterization Rate of fouling High fouling avoidance & low adherence of coated tube compared to bare material Baseline Fouling Plain CS Tube Coated tube Results after 7 months in test rig @ crude oil at 240ºC TUBACEX GROUP Significantly higher fouling avoidance of coated sample, and the eventual deposition is not adhered to surface, being easily removable with pressurized water 13

Product Characterization Chemical High corrosion resistance compared to base material Acid corrosion test o Conditions: TUBACEX GROUP Acid corrosion at boiling temperature o Conditions: Solution: 10% HCl at 22ºC Solution: boiling H2SO4 (30%) Visual inspection 18 h (UNE-EN ISO 28706-2) 14

Product Characterization Unique Ceramic Coating Technology TUBACOAT Property In-situ coatings Fouling/Coking resistance Low roughness Chemical bonding high hardness Corrosion resistance Abrasion resistance High roughness Lack of bonding low hardness Chemical bonding High temperature resistance Lack of bonding On-site application * Ad-hoc engineering to match thermal expansion coefficient of substrate and coating in whole temp range In factory & local weld coating Direct application The coating is vitrified above 800ºC/1470ºF which provides chemical bonding and “glass” properties, enhancing adherence between coating and substrate and increasing resistance to fouling, corrosion and abrasion at high temperature compared to in-situ coatings TUBACEX GROUP 15

Tubacex Group Tubacoat concept Product characterization Coke deposition in fired heater tubes Chemical Inertness and Coking Resistance Study Field applications/Case Studies- Fired Heaters and others Anti Corrosion Commercial Application Conclusion TUBACEX GROUP 16

Coke deposition in fired heater tubes Delayed coker, Visbreaker & VDU fired heaters DCU / VB / VDU High value products Radiant section Radiant section Coke deposition Low value feedstock TUBACEX GROUP Example fired heater cell 17

Coke deposition in fired heater tubes Coke deposition problems As coke layer grows . NEED FOR FREQUENT DECOKING Efficiency loss Production loss o Heat transfer & Tube skin temp Higher OPEX o Effective area & Pressure drop TUBACEX GROUP 18

Tubacex Group Tubacoat concept Product characterization Coke deposition in fired heater tubes Chemical Inertness and Coking Resistance Study Field applications/Case Studies- Fired Heaters and others Anti Corrosion Commercial Application Conclusion TUBACEX GROUP 19

Chemical Inertness and Coking Resistance Study Anti-coking Solution For Fired Heaters When the coating is applied to the inner surface of heater tubes: Minimizes inertness) coke formation (chemical Minimizes coke deposition (anti-fouling) Fired heater with coating applied will obtain: TUBACEX GROUP Longer run lengths Lower fuel consumption Increased safety and reliability 20

Chemical Inertness and Coking Resistance Study Coking Resistance Study DME cracks towards the equimolecular CO, H2 and CH4 (Eq. (1)depends on T) Parallel reactions of the gaseous products occur (Eqs. 2-4) depending on T and on the characteristics of the contact surface (active sites on the surface) DME cracking: Boudouard reaction: TUBACEX GROUP 𝛥 𝐂𝐇𝟑𝐎𝐂𝐇𝟑 ՜ CH4 CO H2 (1) 𝟐𝐂𝐎 ֞ CO2 C (2) Methane decomposition: CH4 ֞H2 C (3) Reverse-Water Gas Shift:CO2 H2 ֞ CO H2O (4) Thermal route Active sites 21

Chemical Inertness and Coking Resistance Study Chemical inertia and reproducibility Temperature 300-700ºC/572-1290ºF Residence time 60s Time on stream: 80 min Without coating With coating 100 NON COATED COATED 1 2 1 2 T10 (ºC) 587 465 574 571 T50 (ºC) 641 518 631 632 T90 (ºC) 685 565 680 682 Cycle DME Conversion (%) Degradation Temperatures DME Conversion (%) 100 80 60 Cycle 1 40 Cycle 2 20 60 Cycle 1 40 Cycle 2 20 0 0 300 400 500 600 Temperature (ºC) 80 700 300 400 500 600 700 Temperature (ºC) COATED TUBES ARE CHEMICALLY INERT PREVENTING COKE FORMING REACTIONS TUBACEX GROUP 22

Chemical Inertness and Coking Resistance Study Study of carbon formation Without coating (DME)in – (DME CO CO2 CH4)out 80 16 20 100 Cycle 1 Cycle 2 60 12 Cycle 1 40 8 Cycle 2 20 4 0 0 300 0 400 500 600 700 200 400 600 800 1000 1200 Temperature (ºC) Time on stream (min) TUBACEX GROUP C formed (g) (%) DME Conversion Calculation of carbon formed DME Conversion (g) C formed(%) 100 20 With coating 80 16 60 12 40 8 Cycle 1 Cycle 2 Cycle 1 Cycle 2 20 4 0 0 300 400 500 600 700 0 200 400 600 800 1000 1200 Temperature (ºC) Time on stream (min) 23

Chemical Inertness and Coking Resistance Study Study of carbon deposition Combustion conditions: Temperature 300-700ºC/572-1290ºF Residence time 6 s Time on stream(700ºC/1290ºF): CO2 0.1% Without coating With coating 700 Cycle 1 Cycle 2 60 12 0.15 Cycle 1 500 40 8 0.10 20 4 0.05 0 0 300 0.00 0 0 Cycle 2 400 CO/N2 300 CO2/N2 200 Temperature 100 on stream 200 (min) 300 Time 0.20 CO/N2 CO2/N2 0.15 0.10 0.05 100 400 500 600 700 200 400 600 800 1000 1200 0 Temperature (ºC) Time on stream (min) TUBACEX GROUP 600 COx/N2 (vol/vol) Integration of (CO CO2) curves 80 16 0.20 0.25 800 Temperatrue (ºC) Carbon deposited Conversion DME (vol/vol) (g) C formed(%) COx/N 2 100 0.25 20 400 0.00 0 100 200 300 Time on stream (min) 24

Chemical Inertness and Coking Resistance Study Coke formation and coke deposition Non-coated tube TUBACOAT tube Conclusions 18 16 16.1 15.2 Chemical inertness of coated tube surface avoids coking reactions occurring in the active sites of noncoated tubes Carbon formed is 10 times lower in coated tube vs non-coated tube Carbon deposited is 100 times lower in coated tube vs non-coated tube Carbon in grams 14 12 10 8 6 4 2 1.2 0.02 0 C solid formed TUBACEX GROUP C solid deposited 25

Tubacex Group Tubacoat concept Product characterization Coke deposition in fired heater tubes Chemical Inertness and Coking Resistance Study Field applications/Case Studies- Fired Heaters and others Anti Corrosion Commercial Application Conclusion TUBACEX GROUP 26

Anti-coking solution – Case Study – European Refinery Visbreaker Unit PROBLEM DESCRIPTION Coke deposition inside the tubes causing: Fired heaters frequent shutdown for pigging Huge loss of production cost Preheat exchangers constantly taken out of service due to coke accumulation Tube deformation related to hot spots Poor Heat transfer efficiency due to coke layer High fuel consumption in the furnace TUBACOAT TRIAL ID coated tubes, bends and flanges installed at the furnace outlet line to prove anti-fouling properties. Dimensions: OD 4”, Sch. 80 - 317L SS 15,000 BPD 450 ºC/842 ºF, 10 bar TUBACEX GROUP 27

Anti-coking solution – Case Study – European Refinery Visbreaker Unit TRIAL RESULTS (after 9 months) Coke deposition inside the tubes causing: Very thin coke layer - not detected by Radiographic test - 75% reduction in coke deposition. Coke was much easier to remove - 3 times lower water pressure than before was enough to remove all the coke. Decoking services - may use softer pigs and cleaning will be less frequent TUBACEX GROUP CONCLUSIONS Run lengths without decoking/online spalling can be increased between 3 and 4 times Savings by Customer 1.5 Million USD per year 1.1 M higher throughput (reduced shutdown time 7days/yr) 0.15 M furnace online spalling/pigging, 0.15 M fuel consumption, 0.10 M Heat Exchanger cleaning 28

Anti-coking solution – Case Study – Asia Refinery #1 Delayed Coker Furnace Refinery operates 1 Delayed Coker, with normal capacity 124,000 barrel/day. Delayed Coker has 3 furnaces. Each furnace 6 passes. Each pass 30 radiant tubes Heater tube material: P9 TUBACEX GROUP 29

Anti-coking solution – Case Study – Asia Refinery #1 Decoking Problem Frequent decoking is required due to coke layer build up leading to: High pressure drop Increase in tube metal skin temperature Each furnace requires pigging every 3 months and online spalling every 30-45 days in 2 passes/furnace During pigging, one full furnace is out of service for 3-4 days unit running at 70% capacity. During Online Spalling, reduced capacity to 93% for one day/pass. Every time one furnace is taken out of service for pigging, the cost due to reduced throughput is approximately 3.6 MM USD/furnace Every time online spalling is performed in 2 passes of 1 furnace, the cost due to reduced throughput is approximately 125 KUSD/furnace TUBACEX GROUP 30

Anti-coking solution – Case Study – Asia Refinery #1 Tubacoat solution Total Costs (million USD) Cumulative Saving (Million USD) 20.0 15.0 60 10.0 50 40 5.0 30 0.0 Year 1 Year 2 Year 3 Year 4 Existing configuration cost (million USD) Tubacoat Solution cost (million USD) Year 5 20 10 0 Year 1 Year 2 Year 3 Year 4 Year 5 Cost: Tube cost (year 1) cost due to reduced throughput during decoking cost due to higher fuel consumption By extending Run Length without decoking by 3 times, estimated incremental benefit of 10 million USD/year. TUBACEX GROUP 31

Coating Integrity during spalling/pigging Anti-coking solution – Coating during spalling/pigging Online spalling: Coating designed to withstand online spalling (high temperature and thermal shock). Mechanical pigging : Pigs of 64 Rockwell C (RHC) can be used without damage to coating. TUBACEX GROUP 32

Anti-coking solution – Case Study – Asia Refinery #2 Delayed Coker Furnace PROBLEM DESCRIPTION Heater tube material: 9 Cr 1 Mo Currently, their heaters requires online spalling every 50 days when wall temperature is 630ºC/1166ºF 7 spalls per year During spalling operation, 1 of 6 passes needs to be out of service, so overall throughput to the unit is reduced to 85%. CONCLUSIONS Due to coke deposition, every year throughput is reduced to 85% for 42 days. Estimated potential savings by End user around 3 million USD per year based on large size of their DCU. Example of Delayed coker unit Spalling time takes approximately 1 day per pass 6 days per spall TUBACEX GROUP 33

Anti-coking solution – Case Study – North America Refinery #1 Delayed Coker Furnace Problem description Example of Delayed coker furnace Heater tube material: 347H Heater requires online spalling every 2-3 months and also mechanical pigging once per year 4 spalls per year and 1 mechanical pigging During spalling, one pass needs to be out of service, so overall throughput to the unit is reduced to 75%. Spalling time takes approximately 1 day per pass 4 days per spall. Pigging requires full unit shutdown for 6 days Conclusion Due to coke deposition, every year the unit is shutdown for 6 days and throughput is reduced to 75% for 16 days Estimated potential savings by End user around 2.5 million USD per year TUBACEX GROUP 34

Anti-coking solution – Case Study – North America Refinery #2 Vacuum Distillation Furnace Problem Description Furnace outlet line with severe coke fouling causing: Outlet line replacement (8”,10” and 12” OD Tubes) every year Frequent decoking mechanical pigging operations by Traces of Polythionic acid stress corrosion cracking Tubacoat Solution Tubacoat inner coated tubes, bends and reducers installed at the furnace outlet line Base material: 317L SS @ Dimensions: OD 8” and 10” OD Lines ROI expected in 1.5 Years TUBACEX GROUP 35

Anti-coking solution – Case Study – North America Refinery #3 Hydrocracker (RHC) PROBLEM DESCRIPTION Each of their 8 Resid Hydrocracker reactors has more than 800 risers that are crucial for proper feed distribution in the reactor Reactors operate at more than 400ºC/752ºF and more than 130 bar. CONCLUSIONS With coating, fouling will be minimized leading to improved conversion of resid feed to clean fuels. High economic benefits under evaluation. Example of Resid Hydrocracker unit Severe fouling occurs at the bottom section of all Resid Hydrocracker Risers This leads to maldistribution of process stream and reduced conversion rate TUBACEX GROUP 37

Field references Vacuum Vistillation Unit (Europe) Tubes installed in VDU furnace Tubacoat Solution Tubacoat inner coated tubes Base material: 317 SS @ Dimensions: OD 5”, Sch. 40 Inner surface view Trial in progress TUBACEX GROUP 38

Tubacex Group Tubacoat concept Product characterization Coke deposition in fired heater tubes Chemical Inertness and Coking Resistance Study Field applications/Case Studies- Fired Heaters and others Anti Corrosion Commercial Application Conclusion TUBACEX GROUP 39

Anti-Corrosion solution – Case Study – North America Refinery Coke Calciner Working Conditions Oil fumes rich in vanadates at 850ºC Metal surface 570ºC Low pressure (welded tube) Substrate Material TP310 (bare) Chemical corrosion TUBACEX GROUP Efficiency loss 40

Anti-Corrosion solution – Case Study – North America Refinery Coke calciner TUBACOAT SOLUTION What is left of bare tubes Tubacoat tubes (Image @ 10 months working) TUBACEX GROUP 9 TP310 (OD63.5;WT2.41) outer coated prototypes were placed in the upper row (the hottest) of the calciner recuperator in May 2015 Only the 9 coated tubes were remaining in the area, even suffering overheating during last weeks of operation prior to planned plant shutdown The rest of tubes were broken and blinded 41

Anti-Corrosion solution – Case Study – North America Refinery Coke calciner TUBACOAT SOLUTION 800 tubes (TP310 grade, OD63.5/WT2.41, outer coating), delivered to customer in Jan’2017 and installed in coke calciner in April 2017. Status: facility in full operation (& continuous performance monitoring) TUBACEX GROUP 42

Anti-Corrosion solution – Case Study – North America Refinery Coke calciner TUBACOAT SOLUTION: Operator received 3 times cycle length, savings of US 2 million/yr. TUBACEX GROUP Real pictures of coated tubes in coke calciner recuperator after 15 months running in full operation 43

Tubacex Group Tubacoat concept Product characterization Coke deposition in fired heater tubes Chemical Inertness and Coking Resistance Study Field applications/Case Studies- Fired Heaters and others Anti Corrosion Commercial Application Conclusion TUBACEX GROUP 44

Conclusion –Tubacoat Anti-coking Solutions – Value to customers Applying inner coating in DCU/ VU/VDU/RHC tubes is: PROFITABLE o Longer run lengths improving overall throughput o Easier and much less frequent cleaning operations SAFE o Increased safety by reducing the number of shutdowns and start-up operations and avoidance of hotspots CLEAN o Reduced fuel consumption due to increased heat transfer efficiency and CO2 reduction RELIABLE o Ad-hoc Formula designed for specific applications o Ceramic Coating applied to Carbon Steel, Stainless Steel and Nickel Alloy Materials TUBACEX GROUP 45

THANK YOU! Sanjay Lodha SLodha@tubacex.com 91996021500 TUBACOAT PLANT IN CANTABRIA, SPAIN WWW.TUBACEX.COM

surface of heater tubes: Minimizes coke formation (chemical inertness) Minimizes coke deposition (anti-fouling) Fired heater with coating applied will obtain: Longer run lengths Lower fuel consumption Increased safety and reliability Anti-coking Solution For Fired Heaters Chemical Inertness and Coking Resistance Study

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