SilcoTek Corporation Coatings for inertness and corrosion resistance

1. SilcoTek CorporationCoatings for inertness and corrosion resistance Information, Questions and where coatings are being used

2. Topics • Vision • Questions • The process and the coating • Products and Applications • Conclusion/Future Product Development

3. Vision • “Easy” Button for customers needing coating • Work together to identify repeat items • Have these items ready for customers to order • Working with suppliers to figure out a method for having product ready • Stock, Consignment, Drop shipping, etc.

4. Questions • What is the maximum tubing length that you can work with • Straight lengths: 6 footers (Coat internal & external) • Coiled tubing: Up to 2000 feet (Coat Internally) • Can coated coil tube be straightened to produce 20’ sticks? • Is every valve sent to you disassembled? • Yes, the process temperatures would compromise any lubricants and seals inside of the valves. • Also, to properly clean all the components

5. Questions • What is the time frame we can use to give to customers if we send a valve to get treated? • 10 days from the time of receipt • Is there enough demand to predict some repeat items that can be stocked or consigned? • Can factory hold inventory? We’re trying on our end. • Is the process different now with the company name change or is it the same? • Same coatings and people • We will be more flexible now that we’re focused

6. Questions • What is new with your company since the last time you visited us? • We’ve become an independent company focused on coatings • New brand names • SilcoNert for inertness (1000 and 2000) • Silcolloy for corrosion • More people, 17 dedicated to customers & coatings • Are the lubricants replaced after the parts are treated? • No

7. Questions • Where do you see industry going with these special materials and processes? • As the need for knowing what’s in streams increases, there will be more demand • Sulfurs • Mercury • Ammonia • Corrosion • Low level alcohols and other impurities • More methods specifying need for coatings • Working with suppliers to offer coated products as stock items • Growing volume of NeSSi systems

8. Questions • Are there certain industries that are moving more quickly than others with the sulfinert process? • Refining, the most mature and familiar with the coating: Rule 1118 coming • Concern for Mercury, gas wells • Power generation growing quickly (coal fired power plant stack monitoring) • Off shore applications, can we provide the inertness and corrosion resistance. Need 20’ sticks coated inside and outside

9. Questions • Is pressure and temperature affected when the part is treated? • Pressure ratings are still maintained • Maximum temperature rating of coating is 450C. • There are coatings that can be applied for use up to 600C on stainless

10. APPLICATION AREAS SilcoNert: Inertness(Silcosteel, Sulfinert/Siltek) Sulfinert = SilcoNert 2000 Silcolloy: Anti-Corrosion (Silcosteel-CR) SilcoKlean: Anti-Coking (Silcosteel-AC) SilcoGuard: Ultra-High Vacuum(Silcosteel-UHV) MARKET AREAS Analytical Pharmaceutical Environmental Petrochemical Chemical Process Semiconductor/Research Automotive

11. Brand Names • SilcoNert 2000 • Used to be Sulfinert and Siltek • SilcoNert 1000 • Used to be Silcosteel • Silcolloy 1000 • Used to be Silcosteel-CR

12. Basic Manufacturing Process • Receive items • Document – digital, customer contact • Clean • Standard: caustic ultrasonic bath, 2 systems • Custom: solvation via other means • Chemical Vapor Deposition (CVD) Process • Vacuum • 400ºC • silicon-based deposition • Clean • Document – digital, customer contact • Pack, ship

13. Properties • Max operating temp. • 450C: SilcoNert 2000 • 600C: SilcoNert 1000; Silcolloy • Hardness: Equivalent to stainless steel • Thickness • SilcoNert 2000: 0.12 microns • Silcolloy 1000: 2 microns

14. SilcoNert 2000 Properties • Improves surface inertness by capping active sites. • Needed when sulfurs are analyzed in the part-per-million level • Performance down to 1 part-per-billion of hydrogen sulfide

15. Coating Capabilities: Substrates • Tubing: • 0.004” to 0.5” ID • 2000+ ft. continuous lengths • Complex geometry parts (inside and out) • Fittings, valves, frits • Block manifolds, sample vessels • custom parts

16. Sizes of reaction chambers • “Standard” vessels: • 10” diameter cylinder w/ 48” height • 3” diameter cylinder w/ 72” height • 10” diameter cylinder w/ 18” height • Large processing oven: • 27” diameter x 26” deep • 4’ diameter x 6’ deep • Walk-in Oven: • 4 feet by 4 feet by 5 feet • 6 feet by 4 feet by 5 feet

17. Substrates Which Coat Well • 300 and 400 grade stainless steel • High carbon steel • Titanium • Ceramics • Borosilicate glass • Inconel® • Hastelloy®

18. Substrates with Issues • Nickel / Nickel plating • Aluminum* • Monel® • Copper • Brass • Gold and Silver plated components • Chrome Plated components • Magnesium • Elastomers • No Bases! *heat-dependent

19. Benefits of coating? • Reduce loss of active compounds • Saves costs from re-testing • Avoid false negatives because sulfur compounds can be quickly lost without coatings • Sample stable from field to lab. • Immediate response during process changes creates savings when used in feedback / feed forward monitors

20. 2 1.8 1.6 Coated/functionalized steel cylinders 1.4 1.2 RRF (H2S to DMS) 1 0.8 0.6 0.4 Uncoated steel cylinders 0.2 0 0 1 2 3 6 7 Day SilcoNert 2000 surface improves storage • Reduces adsorption effects • Improves analytical reliability • Faster cycle times and • increased accuracy • 17ppbv H2S Containment in 500ml Cylinders

21. Sulfur Flow-through data • 100’ 1/8” x .020” tubing • Standard seamless 316L • Electropolished 316L • Sulfinert® coated EP 316L • 0.5ppmv methylmercaptan in Helium • SCD detection • Data courtesy of Shell Research Technology Centre, Amsterdam

22. Effectiveness of coated transfer systems to reduce hold-up: Methyl Mercaptan

23. Inertness: Mercury • Mercury is growing concern in environment: • Coal fired power plants • Natural Gas • CMMS (Continuous Mercury Monitoring System) manufacturers currently using SilcoTek technology with success to transfer mercury • Starting to see need from well sampling firms, Halliburton, Schlumberger

24. Mercury in oil and gas wells • Mercury in oil and gas wells is common in many geographic areas. • Mercury in these streams must be monitored to reduce damage to pump vanes and pipeline equipment. • SilcoNert technology required to eliminate loss of mercury samples during testing.

25. Mercury Adsorption by Stainless Steel • 5 µg/m3 Hg Standard (5PPT) • Spectra Gasses Inc. • 1 Gallon Sample Cylinder 1800psi DOT rated • Swagelok Corp • NIST Traceable • Nominal Temp. 70°F • Test Cycle Day 0,7,19,50 • Direct Interface Gas Sampling • Atomic Absorption Detector • SilcoNert 2000 treated Regulator and Tubing

26. Mercury 50 Day StabilityChemisorption greatly reduced

27. Comparison of Hg Stability in 304SS vs.SilcoNert 2000 Coated Cylinders

28. Effect of moisture • Hydrophobic silicon based coatings decrease adsorption of water • Quicker removal of moisture • Components less susceptible to corrosion • Faster cycle times and increased accuracy

29. Moisture Data • 1ppm moisture, 0.35slpm • Amount of time to equilibrate a 1ppm moisture sample through 100 feet of dry tubing: • Commercial Seamless 316L tubing • 180 minutes (96% equilibrated) • Electropolished Seamless 316L tubing: • 60 minutes (98% equilibrated) • Functionalized a-silicon coated e-polished seamless 316L tubing • 30 minutes (98% equilibrated)

30. Wet-Up 50% faster response

31. Moisture Data (cont) • Time to dry 100’ tubing wetted with 1ppm of moisture when connected to a dry purge • Commercial Seamless 316L tubing: • 175 minutes • Electropolished Seamless 316L tubing: • 65 minutes • Functionalized a-silicon coated e-polished seamless 316L tubing • 35 minutes

32. Dry-Down 50% faster response

33. SilcoNert 2000 Applications • International Society of Beverage Technologists (ISBT): Fountain Carbon Dioxide Quality Guideline • Sulfurs contaminants • Rule 1118: Control of Emissions from Refinery Flares • Sulfurs emissions • Ethylene/Propylene feedstock testing • Sulfurs as catalyst poisons

34. SilcoNert 2000 Applications • Exhaust gas testing, stack emissions testing • Ammonia release as a result of injection • Acid Rain Precursors • NOx and SOx compounds from coal fired plants • Natural Gas well testing • Mercury and H2S Concentrations • Clean Air Mercury Rule • Emissions of Mercury from Coal Fired plants

35. SilcoNert 2000 Applications • Water quality testing: Headspace + Purge & Trap systems • Moisture release and overall inert pathway • EPA TO-15 method: Toxic organics • Create overall inert surface in stainless vessels • Homeland Security • Chemical Warfare Agents • Explosive detection

36. SilcolloyCorrosion Resistance • Stainless steel surfaces susceptible to attack from substances such as chlorinated environments and acidic exhaust environments. • Corrosion resistant deposition is a heavier amorphous silicon layer insoluble in hydrochloric acid and unaffected in salt water environments (marine applications)

37. Corrosion Resistance studies: • External Evaluation • Certified corrosion engineers (Matco) • Spectroscopic analysis • Mechanical testing • Electrochemical Cyclic Polarization in neutral, acidic, alkaline • Atmospheric corrosion • ASTM moisture condensation • Salt spray ASTM B117 • Stress corrosion cracking (MgCl2; ASTM G36)

38. ASTM G48 B Data: Pitting and Crevice Corrosion • 6% Ferric Chloride solution • 72hrs, 20ºC • Gasket wrap

39. ASTM G48 B (cont.) • Bare 316L Stainless Steel coupon (left) showing severe crevice corrosion. Coated coupon shows light pitting

40. ASTM B117 Data: Salt Spray • 4000 hour exposure • 100 degree Fahrenheit • 3.5% by weight sodium chloride • No effect on Silicon coating • Reproduces exposure to marine environments. • Oil-in-water monitors/produced water applications

41. Silcolloy Advantages • Longer Life: • Extend lifetimes of equipment exposed to corrosive environments • Low Cost • Protection: • Protection of high value equipment • Inert: • Provide enhanced corrosion resistance to analytical equipment • Maintain inert sample pathway • More inert than Inconel, Hastelloy, or glass. Ideal for 10ppm levels or higher • High Temperature: • High temperature stability up to 1000c

42. Silcolloy Applications • Process streams • Process sampling • Continuous Emissions Monitoring Equipment • Automotive Exhaust • Semiconductor Gas transfer • Fasteners in Marine Environments • Off-shore drilling platform equipment • Produced water management

43. Conclusions/Future • Continual process improvement and new product development for coatings: • Improving the hardness of coatings • Improved corrosion resistant coatings • Hydrophobic surfaces for moisture sensitive applications • Protection of high nickel alloys such as Hastelloy® and Inconel® • Hydrogen embrittlement resistance. • New generation process systems on line in FY08 • Additional manufacturing capacity • New manufacturing facility!