Ceramic Coating Technical Discussion for Oil Industry Applications

4/30/2012

EonCoat, LLC | 4000 Airport Drive, Wilson, NC 27896 | P: 252 360 3110 | F: 252 360 3109

| www.EonCoat.com

A new technology in corrosion resistant coatings, EonCoat is a spray applied ceramic coating derived from a new material science originally created at Argonne National labs to shield radioactive waste. The coating actually bonds with the substrate to form a dense, protective ceramic coating in minutes. This layer is hard and extremely abrasion resistant and further protects the stable surface from anything that might damage it, including corrosion promoters. As a result, corrosion promoters (like oxygen and humidity) cannot get behind this corrosion resistant coating and migrate the way they can with ordinary paints. And unlike other ceramics EonCoat is ductile, allowing it to flex with steel when necessary. As a result, spraying EonCoat on steel to prevent corrosion is one of the most useful applications of this technology. The benefits of this new technology extend beyond its unsurpassed corrosion resistance. This protective coating can withstand extreme industrial conditions. Performance includes 0% flame-spread fire retardant, waterproofing, chemical resistance, abrasion protection, with zero flash-point. The ceramics make great tank linings for most alkaline materials including oils, solvents, fuels and alcohols because the chemical resistance in this range is excellent (see data chart below). The spray application builds a ceramic layer on top of the new stable surface in a single application, so it is fast and easy to use. And unlike most coatings, it can be applied in a wide humidity and temperature range. Except for direct rain, EonCoat can be applied in ambient temperatures from 40F to 160F. Additionally, it is completely inorganic, has no VOCs and creates no hazardous waste for disposal; a green coating that is better for both workers and the environment. EonCoat provides all of these benefits with a return to service as short as one to two hours, considerably reducing costly outages.

How EonCoat Works to Stop Corrosion

The ceramic is created by a reaction between an acid salt and a metallic oxide. The acid/base reaction is exothermic and the chemical reaction self-fires the ceramic, making it possible to create ceramics at room temperature. The trick is to control the rate of reaction to get a quality ceramic. This is done by understanding the Gibbs free energy, the solubility product constants of the components, and the pH of the acid salt and the metallic oxide. Make the reaction too fast and you do not get a dense solid product, too slow and the water will evaporate and leave powders.

EonCoat, LLC | 4000 Airport Drive, Wilson, NC 27896 | P: 252 360 3110 | F: 252 360 3109 | Page 2 |

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One of the most useful applications of the technology is spraying the ceramic on steel to prevent corrosion. This has proven incredibly effective. The photo below is of a comparison corrosion test among 16 of the best known corrosion coatings in a true seawater spray chamber (the samples were all prepared according to man ufacturers instructions by a NACE certified inspector).

The test ran live on the internet so everyone could follow the results in real time. The photo above was taken on day 71. After 180 days the test was stopped. All panels had failed except EonCoat.

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The corrosion protection is so effective because the acid phosphate reacts with the steel to create a passivation layer. Below is an SEM photo of this chemically bonded layer to carbon steel.

At high magnification it is clear that there is no gap between the steel and the layer of iron phosphate and stable metal oxides, so water and other corrosion promoters cannot flow between the coating and the steel the way they can with polymer coatings that bond mechanically. The layer of iron phosphate contains magnesium, calcium, potassium and silicates which further contribute to corrosion protection. Unlike ordinary phosphating of steel which produces a crystalline and relatively porous iron phosphate layer that has limited stability, EonCoat produces a layer which is amorphous, insoluble and non-porous.

EonCoat creates a magnesium iron hydrogen phosphate layer that is stable and non-porous compared to -FePO4*2H2O, Fe3(PO4)2*8H2O and Fe5H2(PO4)2*4H2O which are common formulas of phosphate conversion coatings.

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A secondary method of corrosion protection comes from the ceramic layer. The pH of this sparsely soluble layer is 10.5 which is the middle of the passivation range for steel.

This layer protects steel in the way that concrete protects rebar, except that EonCoat is not subject to carbonation the way cement is and thus the coating provides alkalinity to the steel as long as the ceramic layer is there.

EonCoat, LLC | 4000 Airport Drive, Wilson, NC 27896 | P: 252 360 3110 | F: 252 360 3109 | Page 5 |

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Ductility, Chemical Resistance, Fast Return to Service and Safety, Make EonCoat Ideal for Steel Applications and Tank Linings EonCoat is a rare combination of a ceramic coating with relative ductility (flexibility) The ceramic coating is hard with good impact and abrasion resistance. The ceramic is also relatively ductile, about 19% compared to typically fired ceramics that have ductility of less than 1%. Below is an example of the ductility. The panel below was bent to a 90 degree angle with no cracking of the ceramic layer.

EonCoat, LLC | 4000 Airport Drive, Wilson, NC 27896 | P: 252 360 3110 | F: 252 360 3109 | Page 6 |

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The low temperature at which the ceramic forms makes it possible to add fibers. The fibers enable creation of a wide range of properties that specific applications require. The fiber addition cannot be done with fired ceramics because the firing temperature (around 2000F) would typically burn up most fibers. Below is an SEM photo showing the excellent bond interface of one type of fiber used in EonCoat.

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Chemical resistance thats ideal for oils, solvents and other alkaline materials
The ceramics make great tank linings for most alkaline materials including oils, solvents, fuels and alcohols because the chemical resistance in this range is excellent. Below are some chemical resistance test data.

Chemical
Xylene Phenol Methanol Oils IPA (Isopropyl Alcohol) 25% Salt Solution 37.5% Salt Solution Fuels Concentrated sulfuric acid 50% NaOH solution

Resistance
Excellent Excellent Excellent Excellent Excellent Excellent Excellent Excellent Good Poor

Classification: Excellent = No wear of the coating with no damage, Very good = No wear of the coating, but may come off with rubbing, Good = some wear, but no degradation of coating or peeling of coating from the substrate, Poor = peeling of coating from the substrate.

Rapid return to service provides a cost saving option

Because EonCoat is formed by an acid/base reaction the process is rapid. We slow it enough to give about 5 minutes before it is dry to the touch, but the process is substantially complete in an hour and it is reasonable to return most equipment to service in 2 hours.

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A safer alternative for workers, EonCoat has no flash point and cannot ignite
Polymer coatings are composed of long carbon chains and carbon is a fuel. So any polymer coating will burn or at some temperature (flash point) it will explode. This makes spraying any polymer coating in a tank (or other confined space) extremely dangerous. Because EonCoat is entirely inorganic it will neither burn nor explode. You can spray the paint directly through an open flame and it will not ignite. EonCoat is UL certified for 0% flame spread and smoke generation.

With EonCoat, workers are not exposed to any toxic fumes

Painters wear respiratory gear because nearly all paints and coatings contain toxins. The problems caused by these toxic gases range from headaches or an annoying smell to death from inhalation. These toxins are not only dangerous while the coating is being applied but they are a continual health risk for those exposed to the coated surfaces afterwards. Just lift an epoxy coating that is 20 years old and smell. That odor means the epoxy is still curing and still releasing toxins. EonCoat contains no toxins, so there is no exposure danger for the painter and no danger for others exposed to the coating afterwards. Inflammability and zero toxins should make self-fired ceramics like EonCoat standard practice for lining tanks that contain slightly acidic to highly alkaline materials. It is the morally responsible thing to do to protect our employees, and the smart business decision to reduce our liability. The fact that these coatings work better make this an easy decision.

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Environmental (EPA) friendliness makes it easy to comply with local and federal regulations
Because EonCoat contains no VOCs the environmental issues typically associated with painting do not exist. No paint booth is required to capture VOCs because there are none. There is no hazardous waste to dispose of. There is nothing in either Part A or part B unfit for human consumption and if you mix the two together you get a ceramic rock which can be disposed of anywhere you would put other rocks. And the carbon footprint of producing EonCoat is about 3 lbs. of CO2 per gallon compared to about 30 lbs. CO2 per gallon with most paints. These qualities helped to make EonCoat a 2012 Top-10 Breen Building product.

EonCoat is also certified to NSF/ANSI 61 standards, making it possible to use with potable water.

EonCoat, LLC | 4000 Airport Drive, Wilson, NC 27896 | P: 252 360 3110 | F: 252 360 3109 | Page 10 |

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Better Coating Protection with a Safer Product A Truly New Innovation

EonCoat does not incrementally advance corrosion resistant coatings. It is a new technology that challenges the underlying notion of corrosion resistance. No longer is a coating simply a layer that sits atop the substrate until it is breached, requiring more coating. Now the coating chemically bonds to form a new, ceramic layer that is corrosion resistant, highly abrasion resistant, and chemical resistant. Toxic fumes, headaches, dangerous work environments can all be reduced, while easily complying with environmental regulations. To learn more about the benefits and protection properties of EonCoat, contact Tony Collins, at 252.360.3110, or go to www.eoncoat.com.

EonCoat, LLC | 4000 Airport Drive, Wilson, NC 27896 | P: 252 360 3110 | F: 252 360 3109 | Page 11 |

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