TRANSFORMING the transformer industry Vegetable oil-based transformer fluids increasingly are replacing mineral oil-based products in the marketplace. They are succeeding because they perform better than mineral oil products and are environmentally preferable. Catherine Watkins Twelve years after its first real-world test, vegetable oil-based dielectric fluid arguably is the most successful nichemarket biobased product in the world. The story of how natural ester fluids, as they are known, moved from lab scale to being used by electrical utilities in 27 countries is a case study in successful commercialization. August 2008 inform 524 THE MARKET Transformers are virtually everywhere, and virtually every distribution and power class transformer is filled with dielectric insulating fluid, which exhibits high resistance to electricity and insulates and cools the transformer. Dielectric fluids have traditionally been manufactured from mineral oil. Polemounted transformers such as the unit shown on this page contain about 25 gallons, or almost 95 liters, of fluid. Substations use between 10,000 and 20,000 gallons. Multiply that over the entire global electrical grid and it becomes clear that the potential market for biobased transformer fluids is huge. “In the United States, we generally see about 75 million gallons of new oil sold each year for new transformers by all manufacturers and service/repair companies,” said Gene Del Fiacco, a senior global application engineer with Cooper Power Systems in Waukesha, Wisconsin, USA. Cooper is a division of Cooper Industries, Ltd., and manufactures the leading line of biobased dielectric fluids: Envirotemp ® FR3 ®. “Globally, about 1.5 million gallons of new oil are sold annually. All of the old, installed transformers in the United States contain over 2 billion gallons of dielectric fluid.” THE DEVELOPMENT Several lines of research involving a number of AOCS members have resulted in the two main products on the North American market—Cooper’s Envirotemp FR3, which is soy-based (although other oils could be used), and ABB Inc.’s BIOTEMP®. BIOTEMP is manufactured from high-oleic sunflower oil, although safflower oil can also be used, according to Stephane Page, ABB’s business manager of specialty fluids. ABB Inc. is an affiliate of the Swissbased ABB Group; BIOTEMP is manufactured at the company’s South Boston, Virginia, facility. INDUSTRIAL OIL PRODUCTS The projected market for FR3 fluid-filled transformers in the United States by year end is 150,000 units, according to Cooper Power Systems, which developed and sells the natural ester dielectric fluid. The company also says that the market share for natural ester fluids currently is around 10% in the United States. Image courtesy of Cooper Power Systems. electric fluid with one that would be environmentally preferred,” he explains. “Over the course of the years, development of FR3 fluid was safety driven, both in terms of its biodegradability and higher fire point,” he notes. (Petroleum-based fluids have a fire point of about 145°C; natural ester fluids have a fire point above 300°C.) Cooper spent “a lot of time and money” in overcoming the inherent instability of vegetable oils. The formula is proprietary, but the basic feedstock is refined, bleached, and deodorized soy oil with a “small amount” of nontoxic additives for better pour-point characteristics and oxidative stability. That, and a touch of green food dye to differentiate the product from petroleum-based fluids. Although Cooper has been using soy oil as the base, McShane says other oils can be used as the economics dictate, including rape or canola, as well as palm oil “with some additional development work.” A third product—BioTrans—is no longer on the market. It was developed by Glenn Cannon, who formerly was general manager of Waverly Light and Power™ 525 August 2008 inform Cooling and insulating fluids for transformers were made for more than a century from mineral oils derived from crude petroleum. Such oils have good dielectric strength but are flammable at 145°C. Beginning in the 1930s, PCBs (polychlorinated biphenyl fluids) replaced mineral oils in fire-sensitive areas and applications. Once the environmental hazards of PCBs were known, their use in new equipment was banned in 1976. Thus, the search for environmentally benign replacements began. Synthetic polyol esters formed by the processing of fatty acids and alcohols have been used as a substitute for PCBs in transformer fluids since the early 1980s. Even before that, however, Clair Claiborne of ABB remembers that Westinghouse, ABB’s predecessor company, was approached by a Native American tribe, suggesting research on jojoba oil. That idea “never went anywhere,” he said, until early 1995, when a large, Northeastern utility complained to him that they were spending millions of dollars on clean-ups of mineral oil spills from downed transformers. With a potential customer on hand, Claiborne—who is the co-inventor of BIOTEMP with Thottathil V. Oommen and currently is a principal consulting R&D scientist with ABB—conferred with Ken Carlson at the U.S. Department of Agriculture and visited the Texas A&M pilot plant. Claiborne ordered various types of oils available at the time, including meadowfoam and crambe, and began working to create a functional natural ester dielectric fluid. “We quickly arrived at high-oleic acid oil as optimal because of its relative oxidative stability,” Claiborne recounts. “We put the first units using natural ester fluid into the field in 1999 and we have been developing the fluid ever since.” BIOTEMP sales “have grown substantially over the past five years,” according to Don Cherry, ABB’s technical specialist dielectric fl uids, “and BIOTEMP-filled transformers now comprise approximately 20% of our revenue in South Boston, Virginia.” The story of development at Cooper Power Systems is similar. Envirotemp FR3 inventor and AOCS member C. Patrick McShane, who is currently Cooper’s global technology manager and global technical manager for dielectric fluids, began work on developing the company’s natural ester dielectric fluid in 1992. “The motivation for us was to replace our fire-resistant but petroleum-based di- ABIL becomes NABL: An update Early work on biobased transformer fluids (and more than 30 other products) was completed by AOCS member Lou Honary and his team at the University of Northern Iowa (UNI) in Waverly (USA), where Honary established the AgBased Industrial Lubricants (ABIL) Research Program in 1991. In January 2006, ABIL was given an expanded mission and was renamed the National Agriculture-Based Lubricants Center (NABL). Whereas before 2006 the focus was on the 1.1-billion-gallon (approximately 4.2-billion-liter) U.S. industrial lubricant markets, now the scope includes the complete 2.6-billion-gallon U.S. lubricants market, including automotive lubricants. Among other projects, NABL is working on a soy-based wood preservative, Honary said. “Very soon in Iowa we will be seeing signposts using the preservative,” he noted. “There is also a lot of interest in this product as a creosote substitute for utility poles and railroad ties.” NABL has installed a full line of equipment to handle biofuels testing in support of the biodiesel industry and will soon begin testing engine oils. “We are working with growers and agronomists to come up with oilseeds that will have utility in engine oils,” he said. “Then we plan to work with additive companies and engine manufacturers to develop the best performance possible.” August 2008 inform 526 (WL&P) in Waverly, Iowa, and now heads the Step Up coalition. Step Up, which stands for Safer Transformers, Environmental Protection, and Upgraded Performance, aims to foster the adoption of natural ester dielectric fluids by industry. The coalition’s home on the web is www.safertransformers.org. Cannon worked with AOCS member Lou Honary (see sidebar, above) to develop BioTrans, a soy-based dielectric fluid that was first used in 1997 to retrofill WL&P’s transformers. Cargill’s Industrial Oils and Lubricants division purchased Waverly’s technology and patents in 2000. When Cooper Power Systems determined that the Cargill and ABB technologies were infringing on Cooper’s patents, Cooper successfully defended them, eventually licensing the technology to ABB and forming an alliance with Cargill in August 2004. The economies of scale afforded by a technical and commercial alliance with Cargill “have proven to be very positive for both companies,” McShane says. Industry reports suggest Cargill is now already manufacturing or preparing to manufacture FR3 fluid in facilities in Wichita, Karl Goldsmith, an intern at the National Agriculture-Based Lubricants (NABL) Center, inspects a railroad tie after pressuretreating it with a new vegetable oil-based wood preservative at the NABL Center’s Waverly, Iowa, research facility. Image courtesy of NABL More information about NABL—and Environmental Lubricants Manufacturing Inc., the for-profit spin-off created by the UNI Foundation and Honary to commercialize a number of biobased products—is available at www.uni.edu/nabl and www.elmusa.com, respectively. Kansas; south Chicago, Illinois; and Brazil, with other countries to follow as demand dictates. THE PLUSES Studies on the long-term behavior of natural ester fluids in transformers have had interesting results, McShane says. “We learned it had other favorable attributes. The most striking was that it greatly extended the life of the cellulose-based insulating paper in transformers. Over time, that paper normally becomes brittle and the cellulose begins to break down, leading to equipment malfunction.” Tests showed that natural ester fluids extend paper life by four to eight times when it is aged in the fluids. Thus, use of natural ester fl uids leads to a lower total life cycle cost for transformers—a powerful selling point. In addition, the risk of transformer fires is significantly reduced because of the higher fire point of natural ester fluids. Finally, natural ester fluids are completely biodegradable, making them particularly suited for environmentally sen- sitive applications and potentially saving electrical utilities millions of dollars in clean-up costs. “The push for sustainability is sweeping the globe,” Patrick McShane says. “Natural ester fluids will supplant mineral oil. It is just a matter of time.” Catherine Watkins is associate editor of inform. She can be reached at cwatkins@aocs.org. information IEEE PC57.147—Guide for Acceptance and Maintenance of Natural Ester Fluids in Transformers—was approved on May 18, 2008, by the Institute of Electrical and Electronics Engineers’ (IEEE) Natural Ester-based Fluids Working Group and was published as a final standard on July 11, 2008. For more information, see www.ieee.org.