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Soy-based Transformer Fluids and

Bio-Fuel Alternatives for Utilities

Opportunities.…. and Opportunities.…. and ChallengesChallenges

E & O Technical ConferenceE & O Technical Conference

Sacramento, CA – April 12, 2006Sacramento, CA – April 12, 2006

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Luis del ValleGlobal Marketing Director

Cargill Industrial Oils & Lubricants

15409 McGinty Rd. MS 66

Minneapolis, MN 55439

952-742-4402 Phone

952-742-6722 Fax

luis_delvalle@cargill.com

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EnvirotempEnvirotemp®® FR3 FR3™™TTransformer Fluidransformer FluidSoybean oil based dielectric coolant, commercialized in 1997 after four years of R&D.

+ Fire Safety

+ Extends Transformer Life

+ Environmental Profile– Made by Cargill.– Marketed by Cooper.

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The “Greenest”The “Greenest” Dielectric Fluid Possible?

• Readily Biodegradable • Non-toxic: Zero trout fry mortality • BEES analysis completed by NIST• Renewable Resource Based

(Soybean Oil)– Meets USDA Bio-Based Products

Qualification• Does Not Contain Petroleum, Dimethlysiloxanes, nor Halogens*

* PCB’s, SF6, CFC, PERC, etc.

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Why Use Veg-based Fluids?Why Use Veg-based Fluids?

• Renewable base• Can meet National Electrical Code as “less-flammable

liquid”, allowing indoor installation• Substitutes dielectric coolants with negatives

o Naphthenic Mineral Oil: TPH +, fires, supply issues

o Silicone Oil: non-biodegradable, by-productso HMWH – TPH +, non-renewableo Halogenated Compounds – Persistence, toxicity, GHG, ozone depletion, hazardous thermal by-

products

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• Conducted and Published by EPA and CalEPA (2002)

• Verified:– Electrical Performance– Aquatic Biodegradability– Flammability– Chemical Composition– Worker Health and Safety– Cost Estimate on the Expected Life Using Envirotemp

FR3 Fluid v. Mineral Oil

Environmental Technology Verification (ETV) Environmental Technology Verification (ETV)

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Bio-Fuel Alternatives: Energy ContentBio-Fuel Alternatives: Energy Content btu / lb

Methane 23,885

Natural Gas (US average) 21,000

No. 2 Fuel Oil (diesel) 19,237

Biodiesel (soy-based) 17,830

Tallow 18,500

Lard 16,990

Soybean oil (crude, degummed) 16,900

Wood (dry) 8,600

Glycerin (crude) 6,700

Hulls (sunflower) 5,400

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Property ASTM Method Limits Units

Flash Point D93 130 min. Degrees C

Water & Sediment D2709 0.050 max % vol.

Kinematic Viscosity, 40C D445 1.9-6.0 mm2/sec.

Sulfated Ash D874 0.020 max. % mass

Sulfur S 15 Grade S 500 Grade

D545315 max.

500 max.ppm

Copper Strip Corrosion D130 No. 3 max.

Cetane D613 45 min.

Cloud Point D2500 Report Degrees C.

Carbon Residue 100% sample

D4530(100% sample)

0.050 max. % mass

Acid Number D664 0.80 max. Mg KOH/gm

Free Glycerin D6584 0.020 max. % mass

Total Glycerin D6584 0.240 max. % mass

Phosphorous Content D4951 0.001 max. % mass

Distillation Temp, Atmospheric Equiv Temp, 90% recovered

D1160 360 max. Degrees C.

Biodiesel Spec: ASTM D 6751

9Source: “A Comprehensive Analysis of Biodiesel Impacts on ExhaustEmissions, (EPA420-P-02_001), www.epa.gov/OMS/models/biodsl.htm

Emissions Benefits of Biodiesel

Biodiesel (SME) vs Diesel Emissions in CI Engines

-80-70-60-50-40-30-20-10

01020

020

%40

%60

%80

%10

0%

Percent Biodiesel

Pe

rce

nta

ge

Ch

an

ge

in

Em

iss

ion

s NOx

PM

CO

HC

Carbon dioxide decreases. When replacing diesel with

B100, CO2 emissions are reduced 78%; B20 reduces CO2 by 15.7%.

Reduces tailpipe particulate matter, hydrocarbon and carbon monoxide emissions in most modern four-stroke CI engines. Because B100 contains 11%

oxygen by weight.

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Biodiesel may be blended with any kind of distillate. This includes jet fuel, kerosene, #1 and #2 diesel, or heating oil. May be blended via splash blending, in-tank blending, in-line

blending.

Biodiesel is slightly heavier than diesel fuel. Biodiesel specific gravity of 0.88. #2 diesel specific gravity of 0.85. #1 diesel specific gravity of 0.80.

Once blended, it will not separate, assuming the fuel is above its cloud point.

If biodiesel does begin to crystallize or separate, due to its temperature dipping below its cloud point, with heat and agitation it will go back into solution. Source: NREL, “2004 Biodiesel Handling and Use Guidelines”

Blending Biodiesel

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Biodiesel is a solvent. May loosen and/or dissolve diesel sediment found in existing fuel tanks and fueling systems.

Cloud point is higher than diesel. Insulated and heated lines and/or tanks may be required, depending upon climate. It is recommended that B100 be stored 5-10oF higher than the cloud point.

B100 is not compatible with certain types of rubber compounds, causing premature degradation.

Biodiesel resistant materials, such as Viton™, fluorinated polyethylene and propylene, Teflon™ and most fiberglass, are available.

Biodiesel is not compatible with some metals and plastics. Will form high sediment levels when in contact for extended periods of time with copper, brass,

bronze or galvanized surfaces. Will degrade typical plastics (i.e. polyethylene, polypropylene). Stainless steel, carbon steel, or aluminum, are recommended for storing B100.

National Biodiesel Board recommends storing B100 for no longer than 6 months.

Source: NREL, “2004 Biodiesel Handling and Use Guidelines”

Handling Biodiesel (B100)

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$1.00/gal excise tax credit for blended biofuels effective Jan 2005 thru Dec 2008. $0.50/gal credit for non-virgin oils. Heating oil blended with biodiesel is also eligible.

$0.10/gal tax credit for small agri-biodiesel blenders. “Small producer” must have less than 60 MGPY biodiesel capacity. Tax credit eligible for the first 15 MGPY product.

Other programs to encourage demand and infrastructure development.

Biodiesel Tax Incentives: Federal

For more info: www.biodiesel.org

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Comparison of Soybean Oil, Natural Gas Comparison of Soybean Oil, Natural Gas and Heating Oil (and Heating Oil (Respective nearby futures in cts/lb Respective nearby futures in cts/lb BTU equivalencyBTU equivalency)

0

4

8

12

16

20

24

28

1/3

/20

05

2/3

/20

05

3/3

/20

05

4/3

/20

05

5/3

/20

05

6/3

/20

05

7/3

/20

05

8/3

/20

05

9/3

/20

05

10

/3/2

00

5

11/3

/20

05

12

/3/2

00

5

1/3

/20

06

2/3

/20

06

3/3

/20

06

CBOT SBO NYMEX NG NYMEX HO

Post-Hurricanes

Spike

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SOYBEAN OILTANK

HE

ATE

R

STRAINER

TO BOILER

RECIRCULATION LINE

Soybean Oil General SchematicSoybean Oil General Schematic

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INSULATEDFAT

TANK~120°F

HE

ATE

RSTRAINER

TO BOILERSTEAM HEATER

RECIRCULATION LINE

Animal Fats General SchematicAnimal Fats General Schematic

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Emissions from Grease Burning TestsEmissions from Grease Burning Tests

Location Type of FuelBtu content of

fuel (Btu/lb)NOx (lb/MMBtu) CO (lb/MMBtu) PM (lb/MMBtu) VOC (lb/MMBtu) SO2 (lb/MMBtu)

National By-Products (Des Moines)

Yellow Grease 17,469 0.071 0.022 0.041 0.002 0.002

Finished Lard 16,990 0.113 0.119 0.000Semi-finished Lard 16,941 0.111 0.121 0.000

Choice White 16,977Tallow 16,920 0.118 0.012 0.002

Yellow Grease 16,899 0.127 0.012 0.000Choice White 16,893 0.154 0.014 0.000

#2 Fuel Oil * 19,237 0.143 0.036 0.014 0.051

Natural Gas** 1,020 0.098 0.082 0.007 0.005 0.001

* Weight of sulfur in oil assumed to be 0.05%** Natural Gas Btu content is Btu/scf

University of Georgia (boiler > 100 MMBtu/hr)

Fats & Proteins Research Article - Penn State results

EPA AP-42 Charts - Uncontrolled sources, boilers < 100 MMBtu/hr

Burning of fats and oils in industrial boilers usually requires new or revised EPA permits given the different emissions profiles versus natural gas and/or fuel oil.

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Optimal burn requires de-gummed veg-oil or polished fats.

Crude fats/oils work, however, nozzles will “gum-up” quickly.

Glycerin: Salts in crude glycerin a problem

Additional infrastructure may be required. Unloading, storing in-bound fats / oils. Heat-trace lines and / or tanks. Re-circulating fats / oils.

Additional Considerations for Burning Fats Additional Considerations for Burning Fats and Oilsand Oils

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Thank you for your time today. Thank you for your time today. Any questions?Any questions?

De-gummed Soybean Oil Heat to 165-175°F to the burner. 110-120 psig to the burner. When oil is <25°F, recirculate it through heater until tank is at least 50°F.

Animal Fat

Same temp and pressure to the burner? Heater in fat tank keeps it at 120-140°F.