APPA NATIONAL CONFERENCE
JUNE 20, 2005
DISNEYLAND HOTEL
ANAHEIM, CALIFORNIA
“THE GREATEST HITS OF DEED’S 25 YEARS”
FEATURING:
FR3 SOYBEAN BASED TRANSFORMER OIL
&
THE SEARCH FOR WIND
GLENN S. CANNON
GENERAL MANAGER
WAVERLY LIGHT AND POWER
P.O. BOX 329
WAVERLY, IOWA 50677
319.352.6251
glenn@wlpnet.net
THE EVOLUTION OF SOYBEAN BASED TRANSFORMER
OIL AT WAVERLY LIGHT AND POWER
The concept for a soybean based transformer oil
for Waverly Light and Power (WLP) began in 1994
when a truck knocked down a bank of transformers
in Waverly. An approximate 20 gallon spill of PCB
contaminated mineral oil cost the utility $30,000 in
clean up costs. Ironically, the PCB transformer was
only one of four PCB transformers left on the system
at the time.
In January 2001, the Tennessee Valley Authority’s
(TVA) Public Power Institute awarded WLP a $20,000
contract to conduct a series of field tests. In 2002,
Nashville Electric Service, Appalachian Electric
Cooperative and Gibson EMC in Tennessee completed two year field demonstration tests. At that
point BioTrans™ was being used in utilities from
Alaska to South Carolina.
The spill inspired WLP General Manager, Glenn
Cannon, to come up with the idea for a non-toxic
transformer oil. Iowa is in a sea of soybeans and
the University of Northern Iowa’s Ag-Based Industrial
Lubricants (ABIL) Research Program, located in
Waverly, was doing research on industrial uses for
soybean oil. Cannon and ABIL Director, Dr. Lou
Honary, began exploration of dielectric fluid
requirements and ABIL began researching oil variations.
Also in 2002, Cargill, Inc. purchased the patents
and trademark rights and began manufacturing
BioTrans™ transformers in concert with ERMCO, Inc.
As one of the world’s leading producers of foodgrade vegetable oils, Cargill’s worldwide network of
processing facilities allows for the product to be
available in ample supply and closer to the customer, utilizing in-country oilseed-based resources.
Royalty agreements remain for WLP.
The research process included laboratory tests conducted at the ABIL facility as well as field tests conducted in Waverly. The first soybean based transformers were retrofilled units and were put into service on the WLP distribution system in 1997.
“We went through several years observing their performance in the winter time and summer time and
everything performed fine,” Honary said. “Showing
the actual application and use in the field helped
bring a lot more confidence in the product.”
These units are still in service; except the very first
transformer which was given to Cargill, Inc. for display at its world headquarters in Minneapolis.
In December, 1999 the American Public Power
Association’s DEED Research and Development
Program provided a grant to do more extensive
research on the oil now called BioTrans™. The
DEED study was completed and showed extremely
promising results. Also in 1999, the first of five
patents were issued for soybean and vegetablebased oils. In addition, a trademark was gained for
BioTrans™. The fluid was non-toxic, non-flammable,
readily biodegradable, and had passed the BEES
(Building for Environmental and Economic
Sustainability) test as an environmentally preferred
oil by the National Institute of Standards and
Technology, U.S. Department of Commerce.
In the early 1990’s, Cooper Power Systems (CPS) of
Houston began development of a vegetable based
transformer oil. Cargill and CPS joined forces in
2004 to market, produce and distribute an environmentally preferred oil.
“It makes more sense if we could join forces with
another company that had a much stronger position in the marketplace and still achieve our overall
goals of developing the bio-based initiatives,” said
Luis del Valle, Cargill Global Marketing Director.
The alliance between CPS and Cargill was created
to cost-efficiently produce and distribute
Envirotemp® FR3™ fluid, a revolutionary insulating
product that is safe for the environment and the
public.
“There’s a lot of interest in developing new markets
for bio-based products to have three benefits: help
the rural economy, reduce the dependence on foreign oil and help the environment,” del Valle said.
Cooper Power Systems, a leading manufacturer of
electrical distribution equipment, sold dozens of
transformers with Envirotemp® FR3™ fluid in 1997 for
customer beta testing. Utilities around the world
are recognizing the advantages offered by this revolutionary fluid over traditional dielectric fluids
(non-conductive fluids used to insulate and cool
electrical distribution products such as transform-
WWW.WAVERLYIA.COM
ers), including added performance and environmental characteristics. Envirotemp® FR3™ fluid uses
as its base food-grade vegetable oil.
Envirotemp® FR3™ fluid received the U.S.
Environmental Protection Agency’s (EPA)
Environmental Technologies Verification, which confirmed its environmental attributes. But the EPA has
not yet made any significant differentiation in the
Spill Prevention, Control and Countermeasure (SPCC
requirement) for non-edible oils versus edible oils.
“The EPA has expressed that they are studying the
matter and they are considering possibly differentiating it in the future,” said Patrick McShane, Cooper
Power Systems Dielectic Fluids Product Line
Manager. “We’re actually looking
beyond that. Envirotemp® FR3™ is
not only an edible oil, but it’s shown
to be non-toxic and has an ultimate
biodegradability rate, the highest per
EPA definition or classification.
Regulations aside, it’s right for environmental stewardship.”
Envirotemp® FR3™ fluid is non-toxic
to trout fry according to testing per
the guidelines developed by the
Organization for Economic
Cooperation and Development
(OECD), a worldwide standard setting body.
Envirotemp® FR3™ fluid also enhances the performance and life of a utility’s transformer assets. The
fluid extends paper insulation life, lowering life cycle
costs. The increased insulation life also translates to
extended and enhanced transformer life or the ability to carry higher loads during peak demand periods without leading to premature insulation failure.
“Performance is a key component for transformers,”
McShane said. “The aging rate of transformer insulating paper improved five to eight times in our
tests. That’s another reason that it becomes a very
viable interest in the industry.”
The fluid also has excellent fire resistant qualities.
Recognized testing laboratories, including
Underwriters Laboratories (UL™), have listings allowing Envirotemp® FR3™ transformer installations
outdoors and indoors, typically without costly fire
protection devices.
Envirotemp® FR3™ fluid also creates a new market
for soybeans, one of the largest grown crops in the
U.S. According to del Valle, the price that farmers
get for their soybeans is driven by supply and
WAVERLY LIGHT AND POWER
demand, and right now the primary market for soybean oil is for use in food products.
"By going into industrial products like Envirotemp®
FR3™ fluid, it creates a new demand stream that on
average would tend to increase the price to the
farmer," del Valle said. "The long-term effect on
farmers should be positive."
So far the market for Envirotemp® FR3™ fluid has
been encouraging. In fact, McShane said over the
last three years, the demand for the fluid has doubled yearly.
"We're definitely on track to double it again in 2005,"
McShane said. "I'm projecting we'll double it again
in 2006. With petroleum prices
going through the roof, there will
be more and more interest in
renewable sources for transformer
dielectic coolants than the hydrocarbon oils. The USDA Biobased
Products Preferred Procurement
Program will also drive up
demand."
The market for Envirotemp® FR3™
fluid has expanded beyond North
America. In February 2005, Cooper
Power Systems and Cargill, Inc.
announced that the fluid will now be available to
the European Union, South America, Central
America, Australia, New Zealand and Korea. Del
Valle is pleased to see the alliance expand globally.
"It is exciting in that it's a big market potential down
the road," he said, "but right now we're really focusing on expanding the market in the U.S. and North
America in general."
Cargill and Cooper Power Systems give credit to
WLP for its role in the development of soybean
based transformer oil market.
"Part of our success today and the volume of FR3™
fluid being sold today is directly related to what
Waverly Light and Power started," del Valle said. "So
their involvement was very critical."
Today WLP uses FR3™ fluid almost exclusively in its
transformer applications for not only the environmental characteristics, but for its safety, lower life
cycle costs and reduced usage of imported oil.
WLP remains active in the promotion of FR3™ and is
proud to be a part of the history of bringing soybean based transformer oils to market.
1002 ADAMS PARKWAY
WAVERLY, IOWA 50677
(319) 352-6251
WIND TURBINE FACTS
Capturing
The
Wind
Skeets 2 and 3
Nameplate Rating: 750 kW
Yearly kWh Generated: 4.7 million kWh
Carbon Dioxide (CO2) Offset Yearly: 4,520 tons
Annual Energy Provided: 500 homes
Location: Alta, Iowa
Rotor Diameter: 158 feet
Blades: Fully adjustable
Cut-in wind speed: 6.7 mph
Cut-out wind speed: 64.9 mph
Tower Height: 213 feet
Swept Rotor Area: 21,130 sq. feet
Skeets 4
Nameplate Rating: 900 kW
Yearly Est. kWh Generated: 2.2 million kWh
Carbon Dioxide (CO2) Offset Yearly: 2,330 tons
Annual Energy Provided: 261 homes
Location: Waverly, Iowa
Rotor Diameter: 171 feet
Blades: Pitch Control Fixed
Cut-in Wind Speed: 7.8 mph
Cut-out Wind Speed: 55.9 mph
Tower Height: 231 ft
Swept Rotor Area: 23,035 sq. feet
Each turbine tracks wind direction and speed. The
system adjusts the turbines according to this
information.
Each blade on Skeets 4
is nearly 85’ long.
Erecting Skeets 4
www.waverlyia.com/wind
1002 Adams Parkway
P.O. Box 329
Waverly, IA 50677-0329
Phone: 319-352-6251
Fax: 319-352-6254
www.waverlyia.com
Waverly Light and PowerTM
Waverly, Iowa
THE SEARCH
FOR WIND
During the late 1980s, Waverly’s energy demand
grew at a rate of 4.2% per year, almost twice the
national average. Faced with termination of its
purchased power contract in 1999 and steady
growth in demand, Waverly Light and PowerTM
became increasingly concerned about future
energy supplies.
A study was performed
by an independent
utility consultant to
evaluate options for
conserving energy and
generating it from
renewable sources.
The study showed
wind to be a viable
resource in Iowa.
In 1993, after receiving Skeets 1 came on-line in 1993
and was retired in 2001.
grants from the
American Public
Power Association, Waverly Light and PowerTM
erected Skeets 1 and became the first public
power system in the
midwest to own and
operate wind
generation. Skeets 1
was a Zond 80 kW
turbine placed on
Russell Walther’s farm
north of Waverly.
Positive response from
local consumers, a
grant from the National
Renewable Energy
Skeets 2 and 3 are 750 kW Zond Laboratory, and the
turbines located in Alta, Iowa. success of the original
CLEAN FREE INEXHAUSTIBLE
IOWA ENERGY TAGSTM
turbine lead to additional turbines. In 1999 two
750 kW Zond Z-50 wind turbines, Skeets 2 and 3,
were placed on the Wencil and Gary Small farms
near Alta, Iowa. They are part of the Storm Lake
Wind Facility which contains 259 wind turbines.
Waverly Light and PowerTM’s Iowa Energy TagsTM
program was launched in March 2001. This
innovative program allows companies and
individuals to purchase tax-deductible certificates
(tags) to help pay for future wind generation
equipment and development.
Late in 2001, Skeets 1
was retired and
replaced with a 900
kW turbine. The NEG
Micon NM52 turbine
came on-line
December 18th, and
produced over 111,000
kWh from that date to
January 1, 2002. The
production during
those 15 days was
greater than the
Skeets 4 being erected in late
2001 just north of Waverly.
previous turbine,
‘Skeets 1,’ produced in
an average year.
Skeets 2, 3 and 4 serve the yearly electrical needs
of 761 homes and supply five percent of the
annual energy provided by Waverly Light and
PowerTM.
Visit www.waverlyia.com/wind to learn more
about Waverly Light and PowerTM’s wind energy
program.
Each tag represents the environmental benefit of
2,500 kWh of wind generation, offsetting fossil fuel
production and importation of the same amount of
energy. This means a savings of 5,300 lbs. of CO2
emissions, along with a host of other greenhouse
gases for each Iowa Energy Tag™ sold.
To find out more about Iowa Energy TagsTM, visit
www.waverlyia.com/tags.
"Waverly Light and PowerTM strongly believes
Iowa can provide and play a significant role in
the global reduction of greenhouse gases by
expanding and promoting programs like Iowa
Energy Tags™."
Glenn Cannon
General Manager
benefits of Iowa Energy TagsT M
à Provide opportunity to buy and promote green power
à Allow for more wind generation to be added
Waverly Light and PowerTM’s wind generation
serves the equivalent of 761 homes annually.
It also offsets nearly 6,850 tons of
carbon dioxide (CO2), a leading greenhouse
gas associated with climate change.
à Offset use of fossil fuels now and for years to come
à Tap available natural renewable energy resources
à Good for farmers and rural economy
à Less dependence on foreign energy sources
à Meet a moral obligation to improve our environment
à They are tax deductible!