TRANSFORMERS

Retrofilling with Natural

Ester Makes ‘Cents’
Since its introduction over two decades ago, natural ester-based insulating fluids’ market share
of the power generation industry has been growing rapidly, with an estimated over 2.5 million
transformers using it to date. Although originally developed primarily to improve the fire safety
of transformers in place of the pricier and less versatile synthetic ester, the environmental and
operational benefits are quickly becoming the dominant factors that make natural ester the
main stay in the industry.

A
s sustainability, equipment reliability and loading capacity
resilience become increasingly critical, more and more
modern power grids have made natural ester their preferred
choice of insulating fluid.
At the same time, retrofilling – which involves changing the
insulating fluid in existing transformers – is also growing in popularity
as a cost-effective way to take advantage of the benefits offered
by natural ester without the extra capital cost for new equipment.
In recognition of its benefits to the power grid operation, the US
Federal Energy Regulatory Commission (FERC) has allowed utility
companies and users of transformers to capitalise on the lower
cost of retrofilling with natural ester insulating fluid as a tax relief
incentive to promote its use since 2011. While a similar incentive has
not yet been widely deployed in other countries, we’ll explain why
retrofilling with natural ester would make better business sense,
based solely on its own merits.
fluid, followed by the removal of fire barriers and the water deluge
system, would drive significant cost savings while also reducing fire
risks at power plants and substations.
Natural ester is particularly ideal for retrofilling transformers
previously filled with mineral oil. Differently from other fluids, such
as the synthetic esters, natural ester’s exceptionally high fire point
allows it to be mixed with up to 7 percent of residual mineral oil while
still meeting the fire point specification of a K-class fluid (>300oC)
(Figure 1). This great tolerance to residual mineral oil enables the
possibility of on-site retrofill, avoiding additional transportation and
reducing both labor costs and downtime.

REDUCING FIRE RISKS AND MAINTENANCE COSTS OF

FIRE SAFETY SYSTEMS
While the fire safety benefit of natural ester has been somewhat
overshadowed by its more recently recognised environmental and
operational benefits, it remains the key driver for retrofilling.
The use of K-class less flammable insulating fluid in accordance
with IEC 61039 has been widely endorsed in many international
fire safety codes as an effective safeguard in place of fire barriers
and water deluge systems in indoor installations (Table 1). The
separation distances for outdoor installation are also significantly
reduced as per IEC 61936, allowing for the transformers to be
installed close to each other without the use of a firewall. Fire
suppressing systems are not only expensive to install but also Figure 1 Fire point of natural ester and synthetic ester fluids in
costly to maintain (Table 2); retrofilling with K-class insulating proportion to the residual content of mineral oil

Table 1 Recommended construction requirements for indoor transformers

TRANSFORMER TYPE FLUID TYPE FLUID VOL (L) BUILDING FIRE RATING DELUGE SYSTEM

FM approved or equivalent K-Class Any Noncombustible None

K-Class Any 1-hour None

<380 1-hour None

Non-approved Mineral 3-hour with subdivision for multiple transformers None

>380 3-hour with multiple transformers w/o subdivision Yes

1-hour with single transformer Yes

Source: Factory Mutual (FM) Global Property Loss Prevention Data Sheet 5-4, Section 2.2.1.1
Continued on page 42 4
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 TRANSFORMERS

Continued from page 40

Table 2 T otal ownership cost modeling (in US$) for a 10-year old 100MVA 12/230kV 3-phase power transformer with and without retrofilling
with natural ester

CATEGORY MINERAL OIL TRANSFORMER NATURAL ESTER RETROFILLED TRANSFORMER

Transformer replacement cost 308,319 229,747
Replacement outage cost 665,968 496,253
Transformer maintenance – annual 214,822 214,822
Fire suppression rehabilitation – current 50,000 0
Fire suppression rehabilitation (@30 years) 15,416 -
Fire suppression system maintenance – annual 322,233 0
Containment system rehabilitation – current 100,000 0
Containment system maintenance – annual 107,411 42,964
Retrofill oil cost 0 150,000
Oil disposal 9,250 30,000
Retrofill outage 0 300,000
Total 1,793,418 1,463,787

Key assumption: remaining transformer life extended from 30 years to 37.5 years after retrofilling
Source: US Department of Interior Bureau of Reclamation

REDUCING ENVIRONMENTAL RISKS AND REMEDIATION EXTENDING LOADING CAPACITY

COST Apart from prolonging lifespan and improving reliability of
With zero carbon footprint, excellent biodegradability and non- transformers, retrofilling with natural ester also allows for a
toxicity, natural ester poses much lower environmental impact and significant increase in loading capacity without capital investment
risks compared to mineral oil and other insulating fluids. on new transformers. With the possibility of raising the average
Its higher viscosity and natural tendency to thicken up when a winding and hottest spot temperatures of coils insulated with the
thin layer is exposed to ambient air means natural ester won’t easily traditional thermally upgraded cellulose paper by up to 20oC in
seep through the ground in the event of a spill, avoiding the need accordance with the support information from Annex C of IEC
of replacing large volumes of contaminated soil and mitigating 60076-14 (Figure 2), capacity could be increased up to an estimated
the risk of reaching underground water. Being classified as readily 20 percent after retrofilling, without reducing the transformer life.
biodegradable, the list of acceptable remediation procedures
includes bioremediation, meaning no further action would be
required other than allowing for natural biodegradation.
In the event of a spill in water, the classification as non-toxic both
in aquatic and oral acute toxicity tests are of great value. While a
typical criterion for spill remediation is the absence of a sheen on the
water surface, natural ester does not form any oil sheen, tending
to accumulate in globules. As it is much easier to remove and has
lower risk of depleting the dissolved oxygen level, the environmental
impact is further reduced.

EXTENDING TRANSFORMER LIFESPAN AND REDUCING

MAINTENANCE/DOWNTIME COSTS
Degradation of paper insulation has long been regarded as the
main parameter for defining transformer’s end of life, particularly
when loadings are frequently pushed to near or beyond the
nameplate ratings. Retrofilling transformers with natural ester is a
cost-effective way to address this problem, due to its unique ability
to absorb and consume the moisture that causes degradation of
the cellulose paper.
The financial benefit of retrofilling a 10-year old 100MVA power
transformer with natural ester would save over 18 percent in total
ownership costs (Table 2) by extending the remaining transformer
life from 30 to 37.5 years and removing the fire suppression system
post-retrofill.
The continuous drying of the cellulose paper insulation after
retrofilling with natural ester also helps maintain the dielectric
strength of the transformer, improving its reliability by reducing
the likelihood of dielectric failure. Furthermore, the cellulose paper
insulation would no longer need to be routinely dried, which means
savings on maintenance and downtime costs.
Figure 2 N
 ominal life of thermally upgraded paper impregnated with
mineral oil and natural ester. Source: IEC 60076-14, Annex C
For existing mineral oil-filled transformers which may be subjected
to overloading conditions, retrofilling with natural ester would
help preventing premature failure, resulting in potential savings on
unexpected replacement and downtime costs, as well as providing
general peace of mind.
These collective financial benefits can be achieved by using
natural ester insulating fluid, based on its ability to reduce fire and
environmental risks, prolong equipment life and improve reliability
and loading capacity. Particularly at this time, when utility companies
face economic uncertainty amid the global pandemic, retrofilling
existing transformers with natural ester would undoubtedly help
balance the need to control capital expenditure, while improving
operating efficiency. T&D
For more information visit
www.cargill.com.au

42 TRANSMISSION & DISTRIBUTION AUGUST-SEPTEMBER 2020