Catalyzed-assisted Manufacture of Olefins (CAMOL): Year-4 Update on Furnace Installations

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Catalyzed-assisted Manufacture of Olefins (CAMOL): Year-4 Update on Furnace Installations Steve Petrone, Robert L. Deuis, Fuwing Kong and Peter Unwin Quantiam Technologies Inc. Edmonton, Alberta, Canada 22 nd Ethylene Producers Conference AIChE Conference, March 23, 2010, San Antonio, Texas 1

CAMOL (Catalyzed-assisted Manufacture of Olefins) 1. Quantiam Experience in HT Coatings 2. What is CAMOL & Why Developed? 3. Performance Achieved and Targeted 4. Questions from the Marketplace 2

Quantiam is an advanced nanomaterials company that develops and commercializes disruptive new products based on advanced materials, catalysts, coatings and surfaces for extreme-operating environments 3

Disruptive Coated Products for Extreme Environments CAMOL Coatings Key attributes Low-coking requiring fewer de-coke cycles Lower operating temperature providing lower energy consumption and GHGs Increase in throughput with reduced steam dilution levels & higher conversion Status Ready for commercialization HT Wear Coatings Provide a previously unattainable ceramic level of hardness and wear resistance, with the ductility and fracture toughness of metals (to 1100 o C) Extended longevity of parts and enhanced productivity Ready for commercialization Corrosion Coatings Advanced corrosion protection of industrial complex shapes; Synergy with wear protection R&D with prototypes and field trials in late 2009 Defence Materials High temperature (>1200 o C) coatings for weapon systems (resistance to hot erosion, hot corrosion and ablation) Phase I prototyping underway Phase II trial mfg to begin in 24 months 4 4

CAMOL s 21 Engineered Properties for Viability & Functionality Surface Properties to achieve low-coking and lower-tmts/energy/ghg: Surface chemical composition and structure that: 1. is inert to catalytic (filamentous) formation of coke 2. provides catalytic gasification of carbon at elevated cracking temperatures (>700 o C) 3. provides catalytic gasification of carbon at low operating temperatures (400-700 o C) 4. has no negative impact on pyrolysis process and product stream 5. has a positive catalytic impact on conversion and product yields 6. is compatible with a significant reduction in dilution steam-requirements 5

CAMOL s 21 Engineered Properties for Viability & Functionality Material Properties to Achieve Survivability, Robustness and Longevity Coating matrix capable of: 7. in-situ repair/regeneration of outermost surface layer 8. thermal stability to exceed operating temperature range of current furnace technologies at TMTs (>1100 o C) 9. thermal shock resistance Coefficients of Thermal Expansion (CTEs) matched to allow for emergency power outages and other process upsets 10. hot erosion resistance 11. carburization resistance provided through a surface barrier 12. carburization resistance provided through intrinsic enhancement 13. oxidation resistance provided through a surface barrier 14. oxidation resistance provided through intrinsic enhancement 15. corrosion resistance to feedstock halogen contaminants 16. corrosion resistance to feedstock Group-I metals contaminants 17. corrosion resistance to feedstock and added sulfur levels (H 2 S, DMS, DMDS, etc.) 18. metal dusting resistance 19. creep resistance 20. coating system bond strength exceeding UTS of base alloy (~60-70 ksi) 21. coating system ductility to exceed elastic limit of base alloy 6

What is CAMOL and Why Developed? CAMOL is: Catalyzed-assisted Manufacture of Olefins to shut down filamentous coke-make and gasify amorphous coke to CO/CO 2 Why CAMOL? Furnace coil surface can exhibit: 1. Unwanted catalysis at coil surface with rapid filamentous coke-make; accelerates amorphous (gas-phase) coke accumulation 2. Inertness to filamentous coke-make (alloys, coatings, surfaces, additives) - 20 th Century Technology 3. Coke-free performance through inertness to filamentous coke-make and gasification of amorphous coke - 21 st Century Technology - Once achieved with robustness and survivability at operating severities, other properties then engineerable 7

CAMOL is inert to filamentous coke and gasifies amorphous coke Typical coke formation in an untreated tube during steam cracking Feedstock with steam Filamentous coke Amorphous coke Gasified amorphous coke CAMOL internal coating T 1 Filamentous coke is created on the walls of a cracking furnace tube through bad, unwanted catalysis. The catalysis is a result of nickel and iron in the furnace tube s base steel. T 2 Filamentous coke-make continues building in hair-like structures. Amorphous coke, created by gas-phase cracking reactions collecting on the filamentous coke at a high rate. T 3 Filamentous and amorphous coke-make continue. Increases in tube pressure drops impacting feed rates and the coke acts as a thermal insulator, reducing the efficiency of heat transfer to the feed stream. Frequent de-coking is required to remove the carbon build-up. Typical coke formation in a CAMOL treated tube during steam cracking T 1 CAMOL creates inertness to filamentous coke-make virtually shutting down this source of coke. T 2 While amorphous coke is still created in a CAMOL coated tube, CAMOL gasifies amorphous coke to tuneable CO and CO 2 which exits the furnace. CAMOL works by making coated furnace tubes inert to filamentous coke-make while gasifying amorphous coke T 3 CAMOL s low-coking environment allows producers to run facilities at higher efficiency as a result of capacity gains (longer run-length, higher conversion, lower steam dilution) and energy savings (reduced de-coking frequency, lower tube metal temperature, lower steam dilution, lower GHGs). 8

an uncoated furnace tube cokes at significant rates 9

CAMOL is inert to filamentous coke-make and CAMOL gasifies amorphous coke 10

In the field CAMOL has delivered significant capacity and energy benefits; some targets remain CAMOL benefit Capacity benefits Operating improvement Higher conversion Impact Low coking environment enables operating regimes at higher conversion Excludes potential to increase throughput by increasing feed rate Longer run-length Inertness to filamentous coke Gasification of amorphous carbon to CO/CO 2 (tunable) Key CAMOL benefits Energy benefits Lower steam dilution Lower tube metal temperature Lower GHGs Outer coating surfaces stable down to significant reductions in oxidizing potential (relative to chromia) enabling lower steam dilution Elimination of coke thermal barrier (and +ve catalytic impact) results in a 20-60 o C reduction with low catalyst surface-loading The CAMOL energy benefits permit less energy consumption in and thus lower GHG emissions 11

Micrographs of CAMOL Low-Catalytic Gasification ( LCG ) Coating 200 µm An SEM micrograph of a metallographic cross-section of the CAMOL Low-catalytic Gasification (LCG) coating ~1,000 microns thick 10 µm An SEM micrograph of the topmost surface of the CAMOL Low-catalytic Gasification (LCG) coating 12

CAMOL High-catalytic Gasification (HCG) Coating Surface after Coking Test 1.5 µm Surface of a CAMOL High-catalytic Gasification (HCG) coating after laboratory-scale coking test (ethane, S:H of 0.3:1, 825 o C). The CAMOL outer surface in the background is coke-free, while the surface of an Fe-Ni contaminant particle shows extensive filamentous coke-build 13

Naphtha Feedstock Fe-based Contaminants Naphtha feedstock contaminants collected in a coarse filter (a) and (b), and a fine filter (c) and (d). XRD and SEM/EDS analyses show primarily Fe-based contaminant particles 14

Tube Metal Temperature end-of-run ( C Pre-CAMOL) Source: Quantiam Existing and planned CAMOL installations Level of feedstock contamination (x-axis), pre-camol operating temperature (y-axis), furnace nameplate capacity (size of bubble) 1,120 1,110 1,100 1,090 1,080 1,070 Over last 4 yrs CAMOL installed in 4 furnaces in NA and EU; 3 add l furnaces planned in the near term Ethane Ethane Fe: <10 ppm S : <30 ppm Naphtha Feedstock Contaminant Levels Naphtha Level 1 Level 2 Level 3 Level 4 Fe: Very high S : >500 ppm Installed 15

Over last 4 yrs CAMOL installed in 4 furnaces in NA and EU; 3 add l furnaces planned in the near term Tube Metal Temperature end-of-run ( C Pre-CAMOL) Source: Quantiam Existing and planned CAMOL installations Level of feedstock contamination (x-axis), pre-camol operating temperature (y-axis), furnace nameplate capacity (size of bubble) 1,120 1,110 1,100 1,090 1,080 1,070 Ethane/Propane Ethane Ethane Fe: <10 ppm S : <30 ppm Naphtha Naphtha Feedstock Contaminant Levels Naphtha Naphtha Level 1 Level 2 Level 3 Level 4 Fe: Very high S : >500 ppm Installed Planned 16

CAMOL has achieved significant results to date approaching 1 life-cycle; further enhancements planned for Gen-II 1 2 CAMOL at March 2010 Industry Reference Commercial Availability Furnace Run-length Temperature Reduction (TMT/SOR/EOR) 10-90 days online Steam Reduction Use 30-50 wt% steam Energy (and GHG) Reductions Use 20-40 GJ/Tonne EE Furnace Coil Lifetime 3-7 years Maximum Operating Temperature (TMT) Use 1050-1120 o C In-situ Surface Repair/Regeneration High Heat Transfer Tube with CAMOL Coating 17

CAMOL has achieved significant results to date approaching 1 life-cycle; further enhancements planned for Gen-II 1 2 3 CAMOL at March 2010 Industry CAMOL Gen-I Benefits Reference Crystallized and/or Targets* Lighter Feedstocks Heavier Feedstocks Commercial Availability 2010 Furnace Run-length 10-90 days online 1-2 years 100-400 days Temperature Reduction (TMT/SOR/EOR) 20-60 o C 20-60 o C Steam Reduction Use 30-50 wt% steam 10-25% 10-25% Energy (and GHG) Use 20-40 Reductions GJ/Tonne EE 3-12% 3-12% Furnace Coil Lifetime 3-7 years 4-7 years 4-7 years Maximum Operating Use Temperature (TMT) 1050-1120 o C 1130 o C 1130 o C In-situ Surface Repair/Regeneration High Heat Transfer Tube with CAMOL Coating LCG: >5 regenerations; HCG: 3 regenerations + >3 LCG regenerations N/A N/A * Level achieved dependent on furnace design, operating conditions, feedstock quality and fraction of circuit retrofitted with CAMOL. 18

CAMOL has achieved significant results to date approaching 1 life-cycle; further enhancements planned for Gen-II 1 2 3 4 CAMOL at March 2010 Industry CAMOL Gen-I Benefits Reference Crystallized and/or Targets* CAMOL Gen-II Targets* Lighter Feedstocks Heavier Feedstocks Lighter Feedstocks Heavier Feedstocks Commercial Availability 2010 Under Dev t Furnace Run-length 10-90 days online 1-2 years 100-400 days 1000+ days 200-500 days Temperature Reduction (TMT/SOR/EOR) 20-60 o C 20-60 o C 40-100 o C 40-100 o C Steam Reduction Use 30-50 wt% steam 10-25% 10-25% 15-40% 15-40% Energy (and GHG) Use 20-40 Reductions GJ/Tonne EE 3-12% 3-12% 5-20% 5-20% Furnace Coil Lifetime 3-7 years 4-7 years 4-7 years 6-12 years 6-12 years Maximum Operating Use Temperature (TMT) 1050-1120 o 1130 o C 1130 o C 1150 o C 1150 o C C In-situ Surface Repair/Regeneration High Heat Transfer Tube with CAMOL Coating LCG: >5 regenerations; HCG: 3 regenerations + >3 LCG regenerations N/A N/A passivation of non-camol parts of circuit recovery from a major feed contamination event Surface Area of ID >= OD + increase in turbulence * Level achieved dependent on furnace design, operating conditions, feedstock quality and fraction of circuit retrofitted with CAMOL. 19

Q&A from the Marketplace OK.but Q: OK, so CAMOL provides non-coking surfaces, serious increases in run-lengths, real temperature reductions, and other significant benefits, but can it take 2-3 tons of Fe-based contaminants over a coil lifetime and keep on ticking? A: Realistically, no alloy, coating or surface can manage such a high contaminant load and provide a beneficial coil surface; nothing foreseeable is forthcoming for such large-scale contamination; field-enabled inert-surface recovery is projected; consider controlling or improving quality of feedstock and contaminants levels. 20

Q&A from the marketplace. OK.but Q: OK, so if CAMOL gasifies amorphous coke to CO/CO2, is there an increase of these levels in the product stream? A: In an ethane, low-contamination environment, eliminating filamentous coke-make materially reduces furnace CO/CO2 levels; gasification of amorphous coke produces no material changes to these lower levels. In a naphtha high-fe environment, we have not detected any material change in levels. In a naphtha lower-fe environment, changes are comfortably within acceptable operating ranges. Recall: CAMOL designed to simply gasify that which would have otherwise collected on coil surface, nothing more. 21

Conclusions and Future Work 1. Major strides made in mitigation of both filamentous and amorphous coking, and enhancement in overall coil performance across broad range of operating severities; approaching 1 life-cycle. 2. Initially securing low-coking, lower TMTs and lower Energy/GHGs; expanding to then optimize on steam dilution and conversion/product slate benefits. 3. Expanding trials to provide CAMOL across broad range of furnace/coil designs, feedstocks, and contaminant levels. 4. Targeting to provide CAMOL coatings in the smallest fraction of a circuit to achieve benefits lowest cost, maximum benefits. 5. New trials being structured to maximize sharing of performance results to the benefit of the industry, while protecting commercial sensitivities of customers. Thank-you for your kind attention! 22

an uncoated furnace tube cokes at significant rates 23

CAMOL is inert to filamentous coke-make and CAMOL gasifies amorphous coke 24