Dielectric Fluids Overview - Florida Municipal …

1 CONFIDENTIAL. This document contains trade secret information. Disclosure, use or reproduction outside Cargill or inside Cargill, to or by those employees who do not have a need to know is prohibited except as authorized by Cargill in ConferenceNovember 6th, Ester Dielectric Fluids OverviewAgenda Public Power DEED story History fluid comparison Natural Ester fluid Fire Safety Environmental Impact Longer life Industry Validation / Testing Key takeaways2 APPA's American Public Power AssociationDEED program-Conceives Natural Ester Revolution ..and Envirot FR3 3 Natural Ester transformer placed into service in 1997 by Waverly Power & Light- Iowa. Waverly P&L- Piloted field testing. Now nearly 1 million transformers use Natural Esters as part of their insulation system. A transformer containing the Envirotemp FR3 transformer fluid is pictured in the foreground. Photo courtesy of Waverly Light & Power Free Breathing DesignsSealed DesignsThermally Upgraded KraftNatural Esters188019001930196019902010 Common failure mode: mineral oil (sludge, a bi-product of oxidation ) impacted heat transfer/dissipationDiagnostics put into practice2020 High temperature materials standardsCommon failure mode: shifted to solid insulation; constrained by operating temperatureCommon failure mode: solid insulation; operating temperature increased85oC AWR, 130oC HST55oC AWR, 95oC HST65oC AWR, 110oC HSTC ommon failure mode: solid insulation.

2 Operating temperature increasedTransformer history (1890-present)4 Mineral OilNatural Ester(FR3 fluid )Synthetic EsterSilicone OilBase FluidPetroleum OilVegetable OilHydrocarbonsPolydimethylsiloxanesDiag nostic CapabilityYesYesYesLessFire point160 C360 C310 C340 CBiodegradabilityLowUltimatelyReadilyNoB iobasedNoYesNoNoOxidationGoodAcceptable( non-free breathing)Very goodVery goodAgingAverageBestBetterAverageInitial Cost$$$$$$$$$ fluid characteristics impact performance capabilities in transformer application5 fluid differences impact performance6 FluidCharacteristicsMineral OilNatural EsterTransformer performance65 AWR110 C hottest spot85 AWR130 C hottest spotAllows for overload or life extensionReliability- Dielectric strengthDielectric strength declines as heat increases due towater saturationRetains Dielectric strength in presence of waterSelf Drying - Hydrolysis consumes the waterMoisture saturation (@20 C) Keep Moisture out of the Paper!

3 55 ppm1,100 ppmFire safetyFlash point 155 CFire point 160 CFlash point 330 CFire point 360 CEnvironmental footprintNon-biodegradableNon toxic, non-hazardous in soil and waterCarbon neutral Biodegradable in 28 daysHottest Spot Temperature ( )Average Winding Rise (K)(Top Temp Bottom Temp)/2 Transformer solid insulation is limiting factor in transformer life Degrades over time, based upon temperature, loading degree/cycle, and contaminants (water, oxygen, and acids)Design limits defined by insulation system hot spot temperature (HST) Natural Esters (IEEE ) demonstrates 20 C additional thermal capability (compared to mineral oil)Economic value and opportunity Natural Ester filled transformers thermal capability enables lower cost per kVA, longer life, reduced transformer price, and positive NPVI nsulation system is the primary failure mode of a transformer7FR3 fluid Formulation DevelopedASTM Standard PublishedEnvirotemp Dielectric Fluids Business Purchased by Cargill 19 Jun12FR3 fluid Applied to 1stTransformerFR3 fluid Commercially AvailableIEC Standard PublishedIEEES tandard PublishedHigh Temp Insulation System Standards Published199019952000200520102015 DGA Standard PublishedOver 20+ years of experience with Natural EstersCargill begins FR3 fluid production8 Increased Safety - Reduces Fire Risk Improved Environmental Footprint Optimized Transformer Performance Lower total cost Greater ReliabilityNatural Esters.

4 Three important benefits to remember9 Increased Safety - Reduces Fire Risk Natural EstersKey Advantages10 Fire Safety(K class fluid ) -UL and FMNo reported fire related failures!11 Fire SafetyFlash and Fire Point of Ester K-Class Fluids Fluids classified as Fire Resistant (K Class) must have Fire Point above 300 C150200250300350400 Temperature ( C)MineralOilEnvirotemp200 SyntheticSiliconeEnvirotemp FR3 Natural EsterFlash PointFire Point308343360165155270300330 CONFIDENTIAL. This document contains trade secret information. Disclosure, use or reproduction outside Cargill or inside Cargill, to or by those employees who do not have a need to know is prohibited except as authorized by Cargill in Fire Benefits of K Class High Firepoint No fires/self extinguishing Employees and Stakeholders are safer. Discounted insurance No firewalls needed Reduced construction $$$$ No costly sprinkler systems Smaller footprint Reduced separation distances Better use of land and retail space Increased Safety - Reduces Fire Risk Improved Environmental FootprintNatural EstersKey Advantages14 Natural ester fluid is a better choice for the communities you serve15 Made from a renewable resource->98% vegetable oil-Carbon neutral*-Contains no petroleum, halogens, silicones or sulfurs Non-toxic, non-hazardous in water and soil- OECD oral and aquatic toxicity test Biodegrades in less than 28 days- Ultimately biodegradable according Environmental Protection Agency (EPA) Recyclable* According to BEES lifecycle analysis Increased Safety - Reduces Fire Risk Improved Environmental Footprint Optimized Transformer Performance Lower total cost Greater ReliabilityNatural Esters Advantages16 Optimize performance.

5 Increase capacity with reduced transformer sizeINCREASE LOADABILITY BY UP TO 20% WITHOUT DEGRADING ASSET LIFE17 IEEE (IEC 60076-14) High temperature insulation system standard Current standard 110oC hot spot with 65 AWR limits transformer capability Envirotemp FR3 fluid -based insulation systems can be run 20oC warmer without degrading life Design new transformers smaller with same or more load capability Existing transformers can be upgraded to provide overload capabilityImprove reliability: Extend insulation and asset life 5-8x longer than mineral oil18 Protecting life of insulation paper is thenumber one factor that determines assetlifeTested, validated and proven19 SPCAA Presentation May 13, 2014 Validated by industryMeets IEEE and IEC standards- More than 250 series of tests conducted on FR3 fluid - IEEE (IEC 60076-14) High temperature insulation system standard enables 75 rise new transformer designsClassified as a less flammable fluid (K-class)- Underwriters Laboratory - FM GlobalEnvironmental testing- Carbon neutral according to BEES lifecycle analysis- Ultimately biodegradable by EPA- Non-toxic and non-hazardous in soil and water by OECDI ndustry recognition- 2013 Presidential Green Chemistry Award- 2013 EPA Design for the Environment (DfE)

6 Designation- USDA BioPrefered Program- EPA Environmental Technology Verification California Environmental Technology Certification- FERC ruling retrofills with FR3 fluid may be capitalized20 Natural EstersMineral OilNew OilASTM D6871 ASTM D3487 IEC 62770 IEC 60296 Use and MaintenanceIEEE 60422 TransformersIEEE 60076 seriesIEC 60076 seriesIEEE IEEE 60076-14 IEC 60076-14 Loading GuideIEC 60076-7 IEC 60076-7 Dissolved GasesIEEE 60599 ASTM, IEEE and IEC natural ester standards FireFM Global Property Loss Prevention Data Sheets, 5-4 TransformersIEC 61936-1 Power installations exceeding 1 kV Part 1: Common rules11 Proven, global installationsNearly 1 million FR3 fluid filled transformers in service globally 500 medium & large power transformers 20,000 indoor units 5,000 substations 10,000 retrofills Industrial, utility and network transformerOver 100 US utilities, including 100% new distribution adopters-Network design systems in major cities like SF, NY, Chicago, AtlantaFR3 fluid approved for transformers above 420kV/300 MVA HV testing validates usage through 500kV 500kV transmission line for Electronorte, Brazil 345KV transmission line for Bureau of reclamationOver 100 global OEMs applying and promoting technology 22 Key Takeaways Fire safety No fires, cleanup, downtime, or replacement costs Protects nearby equipment and buildings Reduced fire mitigation requirements (sprinklers, etc.)

7 Greatly reduced risk to personnel working at site Extended transformer life Insulation system up to 8X* extended lifespan Transformer asset extended lifespan Better handle s overload conditions Enables smaller, lighter (75-85C rise) designs Environmental Environmental safety (no hazardous fumes, fires, reduced spill mitigation) Petroleum independent Reduced carbon emissions Biodegradable/non-toxic/recyclable23 THANK YOU Ty Severson- Utility Sales was natural ester Dielectric fluid developed and tested? Cargill and Cooper Power Systems (CPS) developed a partnership in early 2000 s where Cargill would be the manufacturer and supply chain channel and CPS would be the sales channel and technical support team For distribution class equipment, CPS systems knowledge used to develop an extensive validation program through testing For power class equipment, industry expert Harold Moore was consulted: Special equipment required, industry labs were not capable of producing results without significant increases to impulse generation capability Extensive test matrix developed to test all capabilities of FR3 Comparison results with Mineral Oil 10 year testing program costing millions of dollars by independent labs Reference ICHVE Papers In 2012 Cargill completed a full acquisition of CPS Dielectric Fluids operations SPCAA Presentation May 13, 201425 Appendix26 Improve reliability.

8 Extend insulation and asset life 5-8x longer than mineral oilUnique chemistry of FR3 fluid protects insulating paper by: oil 27 Hydrolysis of natural ester consumes the water and produces fatty acids. This process removes dissolved water FR3 fluid is in essence self drying. Water concentrations in the fluid will be reduced due to hydrolysis over time. FR3 fluid can absorb significantly more water than mineral oil FR3 fluid has 10 times the water saturation (PPM) than mineralProtecting life of insulation paper is the number one factor that determines asset life Increased Safety - Reduces Fire Risk Improved Environmental Footprint Optimized Transformer Performance Lower total cost Greater ReliabilityFR3 Key Advantages28 fluid differences impact performance29 Mineral OilEnvirotemp FR3 Fire point160 C350 CReadily and ultimately biodegradable Breakdown voltage70 kV> 75 kVMoisture saturation (20 C)55 ppm1,100 ppmCellulose ageing = transformer lifepoor5-8 times slower -provenOxidation stabilitysealed or breathing transformersshut or breathing transformersCompact transformer design Relevant EdificationBuilding wallX1 SumpENVIROTEMP FR3 FluidX2 Installation BenefitsFluidFluid Volume (liters)

9 Minimal separation distancesFrom equipment to edificationX1 Between equipX2 Fire resistant for 2hNon combustibleMineral Oil< ,5 m4,6 m1,5 m> < ,6 m7,6 m7,6 m> ,6 m15,2 m15,2 mFR3< ,5 m1,5 m> ,6 m7,6 mRelevant EdificationMINERAL OilSump>0,5m>0,5mFirewallX1X2 SumpBuilding wallRelevant Edification3030 CaliforniaEnvironmental Technology Verification 2013 recipient of Presidential Green Chemistry AwardUSDA BioPreferred ProgramUS EPAE nvironmental Technology Verification 312013 recipient of EPA DfE certificationCONFIDENTIAL. This document contains trade secret information. Disclosure, use or reproduction outside Cargill or inside Cargill, to or by those employees who do not have a need to know is prohibited except as authorized by Cargill in BackgroundHistory: Founded in 1865 as a single grain elevator in the American frontier (Iowa) Over 150 years as an international provider of food, agricultural and risk management products and services Cargill Today: A privately held, family and employee-owned company with corporate headquarters in Minneapolis, MN, USA An international marketer, processor, and distributor serving food, agricultural, financial and industrial customers Business activities span 67 countries and include 143,000 employees FR3 fluid produced from Soybeans Farmers & JOBS !

10 143,000 Employees150 years of experience Installation BenefitsTypical Containment system for Mineral OilDesigned to 110% of larger equipment oil volume + rain water + fire fighting system water, automatic or manualSimplified sump proposed forEnvirotemp FR3 (if required)Designed for larger equipment oil volume + rain waterManual or Automatic draining systemFluid volume + rain waterRocks for flame suppresionSumpOil + Rocks volumeOil / Water separation tank3333 Simpler, less costly spill remediation34 Mineral Oil Low viscosity Fast seepage (infiltration) May reach water reservoir Biodegradation very slow Very high remediation cost WaterSoilTap WaterFR3 fluid Non toxic Seepage very slow Ready and complete biodegradation Very low remediation costWaterSoilTap WaterValidationOVER TIME, THE NUMBER OF VALIDATION TESTS HAS SURPASSED 270. THE NUMBER OF 3 RDPARTIES THAT HAVE CONTRIBUTED TO THE GLOBAL KNOWLEDGE BASE NOW EXCEEDS 30 (SAMPLING BELOW).