Corrosion Costs and Preventive Strategies in the United States

Gerhardus H. Koch, Ph.D. Vice President, CC Technologies International, Inc. Project Manager of Cost of Corrosion Study

Acknowledgement
Project Funded By:
Federal Highway Administration (DOT) Office of Infrastructure Research and Development

Cooperation of:
NACE International, for disseminating study findings raise awareness

Executed by:
CC Technologies Laboratories, Inc. 14 Authors of different disciplines
Corrosion Cost and Preventive Strategies in the United States Slide 1

Presentation Outline
Cost of Corrosion Studies Interest in Current Study Determining Corrosion Costs
Method 1 - Cost of Corrosion Control Methods Method 2 - Sector Analysis

Extrapolation to Total Corrosion Cost Preventive Strategies Web site www.CorrosionCost.com

Corrosion Cost and Preventive Strategies in the United States Slide 2

Previous Corrosion Cost Studies

1950 H.H. Uhlig - U.S. Study: 2.1% of GNP 1970 T.P. Hoar - UK Study: 3.5% of GNP 1974 Japan Study: 1-2% of GNP 1975 Battelle/NBS - U.S. Study: 4-5% of GNP

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Recent Cost of Corrosion Studies

2001 CC Technologies Study Corrosion Costs and Preventive Strategies.
Industry Sectors: $276 Billion/year = 3.1% of GDP

2003 GAO - Report Defense Management Opportunities to Reduce Corrosion Costs and Increase Readiness.
Corrosion costs, reduced readiness, safety issues Concluded DOD does not have effective approach to prevent and mitigate corrosion.
Corrosion Cost and Preventive Strategies in the United States Slide 4

Worldwide Interest
Responses from groups from:
United States, United Kingdom, Saudi Arabia, Canada, Argentina, India, Japan, South Africa, Venezuela, and China.

Major interest in corrosion control methods:

paints, coatings, linings, plating, surface finishing, powder coatings, plastics, composites, flow control, water conditioning, corrosion resistant alloys.
Corrosion Cost and Preventive Strategies in the United States Slide 5

Industrial Response
Industry Sectors:
water distribution, heating, fabrication, machinery, product finishing, pipeline, chemical processing, paper, aviation, automotive, nuclear and fossil fuel power, oil and gas, concrete, roads and bridges, ports, business and management, and public works - engineering, construction and maintenance.

Government: Infrastructure and Defense

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Report Results - Availability

Study published by FWHA in a 773-page hardcopy (FHWA-RD-01-156) Summary presented in 17-page Tech-Brief. All results available as free download files at www.CorrosionCost.com NACE International distributed supplement with Materials Performance magazine. 40 Journals and magazines published, reaching more than 1,200,000 readers
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Website - Download Results For Free

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Methods 1 - Methods & Services

All costs are direct corrosion costs Disadvantage: many costs are missed
Cost of labor attributed to corrosion management activities. Cost of the equipment required because of corrosion-related activities. Loss of revenue due to disruption in supply of product. Cost of loss of reliability.
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Methods and Services

Protective Coatings Corrosion Resistant Alloys Corrosion Inhibitors Engineering Plastics/Polymers Cathodic and Anodic Protection Corrosion Control Services Research and Development Education and Training
Corrosion Cost and Preventive Strategies in the United States

B$ 108.6 B$ 7.7 B$ 1.1 B$ 1.8 B$ 1.0 B$ 1.2 Slide 10

TOTAL: B$ 121.41

Identify Corrosion Mechanisms

Uniform Intergranular Pitting Stress cracking Corrosion-fatigue Galvanic Thermo-galvanic Crevice Erosion Cavitation Fretting Hydrogen embrittlement Stray-current Other
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Corrosion Cost and Preventive Strategies in the United States

Whenever possible, use equation

Appropriate Unit Cost per Unit -----------------------X Total Cost

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Highway Bridges Gas and Liquid Transm. Pipelines Waterways and Ports Hazardous Materials Storage Airports Railroads Gas Distribution Drinking Water and Sewer Systems Electrical Utilities Telecommunication Motor Vehicles Ships Aircraft 1.00 Railroad Cars Hazardous Materials Transport Oil and Gas Expl.and Production Mining Petroleum Refining Chem., Petrochem., Pharm. Pulp and Paper Agricultural Food Processing Electronics Home Appliances Defense Nuclear Waste Storage

Summary of Costs per Sector

$0.3 $7.0 $$$5.0 $36.0 $6.9 $$23.4 $2.7 $2.2 $0.5 $0.9 $1.4 $0.1 $3.7 $1.7 $6.0 $1.1 $2.1 $$1.5 $20.0 $0.1 $10 $20 $30 $40 Cost Of Corrosion Per Analyzed Economic Sector, ($ x billion)

$8.3 $7.0

$-

SUMMARY of Sector Analyses

5 Categories
Infrastructure Utilities Transportation Production and Manufacturing Government B$ B$ B$ B$ B$ 22.6 47.9 29.7 17.6 20.1

TOTAL: B$ 137.9 BEFORE EXTRAPOLATION

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Total Direct Cost of Corrosion in the U.S. B$276 / year = 3.1% of GDP

1998 U.S. GDP B$8,790

Preventive Strategies (Non-Technical)

1. Increase Awareness of the Considerable Corrosion Costs and Potential Savings. 2. Change the Misconception That Nothing Can Be Done About Corrosion. 3. Change Policies, Regulations, Standards, and Management Practices to Improve Corrosion Management . 4. Improve Education and Training of Staff in Recognition of Corrosion Control.

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Preventive Strategies (Technical)

5. Advance Design Practices for Better Corrosion Management. 6. Advance Life Prediction and Performance Assessment Methods. 7. Advance Corrosion Technology Through Research, Development, and Implementation.

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1. Increase Awareness
Issue:
Corrosion cost studies reveal significant economic impact. However, many corrosion problems go unresolved due to a lack of awareness.

Approach:
Find ways of engaging those who have a "needto-know" regarding corrosion engineering but are not necessarily trained in this field.

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Be Aware of Corrosion Cost Savings!

Spend on Corrosion Control Save on Overall Corrosion Costs

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2. Change Misconception
Issue:
There must be a recognition that effective means are available to realize those corrosion savings.

Approach:
Prepare and disseminate case histories and technology briefs to policy makers, operation and financial managers, technical and operating staff.

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Example of Corrosion Control Methods

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3. Change Policies
Issue:
Disparity between those who control corrosion costs and those who incur the costs; leads to mentality of build it cheaper and fix it later.

Approach:
Evaluate current and proposed policies impacting corrosion management, for (1) Goal attainment, (2) Economic efficiency, (3) Equity, (4) Transparency, and (5) Administrative simplicity.
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Policy Makers - Policy Users

Managers developing policies must consider:
What party will incur the costs Cost - benefit analysis of corrosion control Life-cycle costs

Does the policy attain the corrosion - goals?

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4. Improve Education & Training

Issue:
Most engineering students have little or no exposure to corrosion science and engineering during their education.

Approach:
Determination of residual life is of increasing importance in our economy. Since corrosion is a determinant in all such cases, a vigorous campaign to engage engineering schools should be top priority.
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Organizations Providing Training

Training Courses:
NACE International (Corrosion Society) SSPC (Society for Protective Coatings) ASTM International (Test Methods)

Provide Training to:

Engineers Operation & Maintenance Managers
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5. Advance Design Practices

Issue:
Design practices often fail to even consider corrosion, and therefore, avoidable corrosion costs are incurred.

Approach:
Make best practice corrosion control technology available to designers, include corrosion performance in design criteria, and analyze lifecycle and total ownership costs.
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Best Practice Corrosion Control

New Designs:
Recommended Practices (RP) Material Recommendations (RM)

Existing Structures:
Fitness-For-Service Remaining Life

Scheduled Inspections
Find corrosion in early-stage Measure corrosion over time.
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6. Advance Life Prediction

Issue:
Life prediction and performance assessments are often uncertain because of the uncertainty of all variables that affect corrosion.

Approach:
Carry out coordinated programs to improve the determination of extent and severity of corrosion damage, projections of the rates of corrosion, and evaluation of the effects of alternative remedial actions.
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Example Fitness For Service Analysis

API 579 - Failure Assessm ent Diagram Through-W all Crack in Longitudinal Direction of Cylindrical Vessel 1.2 1.0

Curve for Level 3 Analysis

UNACCEPTABLE REGION 8 inch 7 inch 6 inch

0.8

Kr = KI / KIc

Curve for Level 2 Analysis M ax. allow ed ~ 4 inches

5 inch

0.6

3 inch

0.4

Currently 2 inches

0.2

ACCEPTABLE REGION

0.0 0.0 0.2 0.4 0.6 Lr = S(ref)/S(yield) 0.8 1.0 1.2

Failure Assessment Diagram for Weld Crack in 7.6-Inch Thick Vessel.

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7. Advance Corrosion Technology

Issue:
There is a need to support the corrosion engineering R&D needs of the basic industries, to encourage a critical-mass effort for emerging technology areas.

Approach:
Consider the value of industrial organizations that could serve to sponsor R&D work that no single company could afford to take on by themselves.
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Integrity Management Approach

G ather, review , and integrate initial data Perform in itial risk assessment Develop baseline assessm ent plan Perform inspection and/or m itigation

R evise inspection an d m itigation plan

Evaluate program U pd ate and revise risk assessm ent

R eview , update, and in tegrate data

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Summary - I
Cost of Corrosion is Significant:
$276 billion / year in the U.S.

Worldwide interest in Corrosion Control

Many industries Many disciplines involved

Corrosion Management Key to Savings Life-Cycle Costing to Compare Alternatives

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Summary - II
Preventive Strategies
Increase Awareness of Potential Savings Change Misconception That Nothing Can Be Done Change Policies, Regulations, Standards Improve Education and Training Advance Design Practices Advance Life Prediction and Assessment Methods Advance Corrosion Technology Through Research
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Questions?

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