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INTELLECTUAL

PROPERTY

ABSTRACT

IESA PROJETOS, EQUIPAMENTOS E MONTAGENS S/AINEPAR CAPACITORES S/AANDRITZ HYDRO INEPAR

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SUMMARY

1 – INTELLECTUAL PROPERTY: IESA Projetos, Equipamentos e Montagens S/A

1.1 - Process

1.1.1 - Development of a CAD application to improve the manufacturing process of hydroelectric welded parts 4

1.1.2 - Procedures of weld backings for full penetration welding 5

1.1.3 - Hot forming using carbon steel and stainless steel 6

1.1.4 - Hot forming and bowing procedures in a cover, using duplex or super duplex stainless steels 7

1.1.5 - Development of a CAD application system to automatically generate drawings and BoM (bills of material) of Cooling Tower equipment 8

1.1.6 - Dynamic balancing bunker of steam turbine 9

1.1.7 - Development of a logic control software for fired heaters 10

1.1.8 - Hot pressing for Francis blade using sheet steel 11

1.1.9 - Development of a CAD 2D application to improve technical instruction for use in shop floor 12

1.2 - Products

1.2.1 - Developed mining machines 13

1.2.2 - Development Cranes, gantries, semi-gantries equipments 15

1.2.3 - Technical Projects for Process Equipments 17

1.2.4 - Technical Projects for hydromechanics gates 20

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2 - INTELLECTUAL PROPERTY: Inepar Capacitores S/A

2.1 - Process

2.1.1 - Development of software to treatment of harmonics 23

2.1.2 - Machine development to manufacture insulating paper for internal fuse capacitor application 24

2.2 – Products

2.2.1 - Pole mounted low voltage capacitors banks 25

2.2.2 - Low voltage tuned passive harmonic filters 26

2.2.3 - Low voltage minimum passive harmonic filters 27

2.2.4 - Pole mounted medium voltage series capacitors banks 28

2.2.5 - Pole mounted medium voltage thyristor controlled series capacitors banks28

2.2.6 - Three-phase capacitor development for rated voltage exceeding 7200V 29

2.2.7 - Design change (active width) of the windings used inside capacitors 30

2.2.8 - Design change (volts / winding) of the windings used inside capacitors 31

2.2.9 - Considerable increase in the power of the capacitor units 32

3 - INTELLECTUAL PROPERTY: Andritz Hydro Inepar

3.1 - Process

3.1.1 - Development of software for hydraulic turbine laboratory 33

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1 – INTELLECTUAL PROPERTY: IESA Projetos, Equipamentos e Montagens

1.1 - Process

1.1.1 - Development of a CAD application to improve the manufacturing process of hydroelectric welded parts Intellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Victor PradoDepartment: Industrial EngineeringRequest number - patent INPI Brazil: PI 0925208-8

This system was developed as an application in CAD software to help the manufacturing activities of spiral cases, draft tubes and penstocks.

The basic premise is the integration of design and calculation procedures used for manufacturing. The steps involved are listed below. - Fast generation of three-dimensional drawings (all sections); - The software plan each section; - Separation into section parts, adjusting the size according the flame cut machine; - The system join small sections to optimize the carbon steel plate; - Generation of two-dimensional drawings for each section, and the profile is prepared to be used in a flame cutting machine; - Generation of section maps;

The system basically follows this order of procedures, however, in a unique database. The application has been developed using AutoCad internal language.Results / Savings:- Hours reduction industrial engineering (80%);- Errors reduction (or elimination) in manufacturing drawings. Elimination of re-works;- Reduction or elimination re-works of equipment assembled at site;- System in use since 2004;- Savings US$ 200.000,00 / year.

Spiral Case – Modeling Sections – plan and drawings to manufacture

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1.1.2 - Procedures of weld backings for full penetration welding Intellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Jose EliasDepartment: Welding Engineering

This process is used in welded products manufactured in IESA that use full penetration welding.

The development of joint types like X, K or V can be used with ceramic backing to improve quality, higher deposition rates and increased productivity.

Backing eliminates the need of back-gouging, grinding and re-welding operations on the reverse side, turning of heavy plates or structures to weld the opposite side. Increased productivity when welding root runs in position 1G, 2G and 3G.

Developed by the industrial and welding engineering staff, models of various types of joints in different thickness of plates became possible to use "ceramic backing".

Results / Savings:

- Reduction of manufacturing hours;

- saving electricity;

- Reduction of welding consumable;

- straightening plate;

- Noise reduction (environment) ;

- System in use since 2012;

- Savings US$ 300.000,00 / year.

Without backing With backing

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1.1.3 - Hot forming using carbon steel and stainless steelIntellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Aparecido LeiteDepartment: Production

This hot forming method is used in a plate where the carbon steel and stainless steel are joined by welding process. The plate size can be small or large.

The steel carbon and stainless steels have different coefficients of expansion and normalizing temperature. The process uses controlled heating for hot forming process to not damage the mechanical and chemical properties of materials.

These processes are used in hydroelectric welded products:

- Outer head cover for Kaplan hydroelectric turbine; - discharge ring and outer head cover for Bulb hydroelectric turbine.

Results / Savings:

- Few companies have the knowledge of this process

- replaced the old process where the manufacture was done by welded rings (increased productivity);

- 6 units used this process;

- Savings US$ 500.000,00

Heating carbon steel / stainless steel Forming

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1.1.4 - Hot forming and bowing procedures in a cover, using duplex or super duplex stainless steelsIntellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Aparecido LeiteDepartment: Production

The duplex and super duplex stainless steels have a very complex physical metallurgy. There is a band (sigma phase) where this kind of material becomes brittle.

It´s necessary to keep the metallographic structure in a balanced percentage of ferrite and austenite , around 50% each one.

The forming process developed is a heating of controlled method in order to ensure chemical and mechanical properties. So, any size cover can be manufactured using the hot forming process.

The cover is a part of process equipment like pressure vessel, separator.

Results / Savings:

- only IESA Projetos & Equipamentos manufactured super-duplex cover in Brazil (thickness above 12 mm);

- cost manufactured in Europe is more than 2,5 IESA cost;

- 5 separator vessels super duplex manufactured in IESA (thickness above 12 mm);

- Savings US$ 1.000.000,00

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1.1.5 - Development of a CAD application system to automatically generate drawings and BoM (bills of material) of Cooling Tower equipmentIntellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Gentil Barbosa Junior, Rafael Fernando Caride Department: Process Equipments

The development has the purpose to present a system as an application CAD software to parameterize the drawings and BoM of Cooling Tower equipment. The application is used in product engineering (and the The developed modules :

- Three-dimensional and assemblies drawings, including shell, nozzles, tops, manhole, internal brackets, internal and external accessories;

- Two-dimensional drawings and details listed above;

- BoM with all information material used, such as type, dimension, etc.

Data entry is performed by Excel spreadsheets. It´s easy to type and archive.

The system was developed in a 3D model CAD system (Inventor 2013).

Results / Savings:

- Hours reduction process engineering;

- Reduction or elimination re-works of equipment during the manufacturing;

- System in use since 2013 ;

- Savings US$ 200.000,00 / year.

1.1.6 - Dynamic balancing bunker of steam turbineIntellectual Property: IESA Projetos, Equipamentos e Montagens S/A

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Author(s): Designer from several areas / Responsible for use: Jose Luiz DouradoDepartment: Production

The dynamic balancing bunker was developed and manufactured by IESA Projetos & Equipamentos. The bunker works with vacuum to attend balancing of high speed steam turbine.

The balancing equipments capacity is for revolving pieces between 10 and 130 tons, maximum diameter 4 meters and maximum length 12 meters. The maximum rpm allowed is 4.230 rpm.

The bunker was manufactured with carbon plates and concrete to ensure safe environment. The mechanical seal ensures vacuum less than 2 mbar.

Results / Savings:

- Only IESA Projetos & Equipamentos is able to perform balancing on pieces above to 12 tons in vacuum (valid only Brazil);

- Dynamic balancing is part of the IESA business with average sales of US$ 400.000 / year (average of last four years), with EBIT around 40%.

Balancing steam turbine

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1.1.7 - Development of a logic control software for fired heatersIntellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Giovani PasettiDepartment: Process Equipments

The software developed is intended to operationalize the fired heater in a petrochemical plant.

The program was developed in language for PLC systems (programmable logic controller), to control the operation and safety procedures of fired heater, according Petrobras specifications.

The fired heaters were manufactured in IESA under license from BIH (Bousted International Heaters - United Kingdom). However, to put the oven into operation, Petrobras did not accept the control software proposed by the BIH. Thus, the engineering of instrumentation team from IESA Projetos & Equipamentos , fully developed the control software according the Petrobras specifications.

Results / Savings:

- Do not provide delay in delivery due not complete the control of fired heaters, avoiding contractual penalty. The contractual penalty of Petrobras in a project with two fired heaters had the value in US$ 6.8 million;

- Enabled the IESA team developing PLC software on other types of refinery furnaces.

Control Room

Fired Heaters – application

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1.1.8 - Development hot pressing for Francis blade using sheet steelIntellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Aparecido Leite / Victor PradoDepartment: Production

This process was developed to attend special need from market. The blade can be manufactured using raw material arising from casting or sheet steel.

The manufacturing process was developed but depends of hydraulic design of blade that is developed in hydraulic turbine laboratory.

IESA developed the software to draw the pressing device (figure 1) and the hot pressing process (figure 2).

Figure 1 - Software: generator automatic of stamping device

Figure 2 - Hot pressing process

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1.1.9 - Development of a CAD 2D application to improve technical instruction for use in shop floorIntellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Sergio Alexandre / Victor PradoDepartment: Industrial Engineering

Today the projects aren’t totally in 3D format. Many suppliers or clients generate drawings only in format 2D, or sometimes clients send to IESA drawings in PDF format.

The Industrial Engineering of IESA adapted the 2D drawing to the manufacture language, or in other words, in technical instruction to be used in manufacture. Software CAD was developed to give more flexibility in generating 2D drawings. New commands that help the construction of the bi-dimensional drawings like fill header, generating CNC programming for flame cut, parametric shapes, batch printing, and others.

First development in 2002, and is improving over time.

Results / Savings:

- Higher productivity to industrial team

- Eliminated partial errors that can be done in repetitive task;

- Savings US$ 40.000,00 / year

Examples:

Parametric shaps CNC program – flame cut

Calculation - weight Fill header

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1.2 - Product

1.2.1 - Developed mining machines Intellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Luiz Antonio de Oliveira Zaia / Engineering teamDepartment: Cargo Handling

The engineering team of Crane from IESA developed some kinds of mining machines to attend the market.

Products:(1) Rotary stacker for mining with boom active by electric hoist, with a nominal capacity of 4.000 tons / hour

Rotary stacker

(2) Gantry type bucketwheel reclaimers active by electric motor and chain, with a nominal capacity of 7.595 tons / hour

Bucketwheel reclaimer

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(3) Stacker for mining with double boom active by electric hoist, with a nominal capacity of 6.000 tons / hour

Stacker with double boom

(4) Rotary boom reclaimers actived by hydraulic cylinder, with a nominal capacity of 7.000 tons / hour.

Rotary boom reclaimer

(5) Stacker for mining with single boom active by electric hoist, with a nominal capacity of 1.800 tons / hour

Stacker with single boom

Savings:

- Access to a market of more than US$ 50 million/year;- US$ 50 million in a history of purchase orders.

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1.2.2 - Development Cranes, gantries, semi-gantries equipmentsIntellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Luiz Antonio de Oliveira Zaia / Product Engineering teamDepartment: Cargo Handling

The engineering team of Crane from IESA developed some kinds of cranes to attend the market. In the last 40 years IESA is a supplier of cranes, gantries and semi-gantries for hydroelectric plants, steel plants and industrial plants. First developments have started in the 70s.

Products:

(1) Traveling and gantry cranes for industrial plants

Traveling crane - industrial

(2) Traveling and gantry cranes for steel plants

Traveling crane – steel plant

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(3) Traveling cranes for transport of liquid metal

Traveling crane - transport of liquid metal

(4) Traveling and gantry cranes for hydroelectric plants

Traveling crane Gantry crane

Savings:

- Access to a market of more than US$ 50 million/year;- US$ 15 million / year in a history of purchase orders.

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1.2.3 – Technical Projects for Process EquipmentsIntellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Artur Bauman / Product Engineering teamDepartment: Process Equipment

The Process Equipments engineering team from IESA has the ability to design equipments such as pressure vessels, tower, bell mouth, baja (temporarily unitary basis), heat exchanger, gas and fuel storage equipments.

Practically all development of the equipment is performed by IESA except the definition of shapes, basic sizes, work pressure and temperature that are defined by the customer. The IESA engineering makes the calculation like mechanical and thermic design.

Products:(1) Separator Vessel – separate oil from water, gas from liquid, etc.

Separator Vessel

(2) Tower fractional distillation, rectification, absorption, etc

Tower

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(3) Bell mouth has the function to guide the oil pipes

Bell mouth

(4) Baja – temporarily unitary basis

Baja

(5) Gas storage

Sphere

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(6) Heat exchanger

Heat exchanger

(7) Fuel storage tank

API tank

Savings:

- Access to a market of more than US$ 1 billion / year;- US$ 55 million / year in a history of purchase orders (last 5 years).

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1.2.4 - Technical Projects for hydromechanics componentsIntellectual Property: IESA Projetos, Equipamentos e Montagens S/AAuthor(s): Deividi Cataneo / Product Engineering teamDepartment: Hydromechanics

The engineering team of Hydromechanics Equipments from IESA has the ability to design hydromechanical components of hydroelectric.

All development of the equipments is performed by IESA since definition of shapes, basic sizes, until the mechanical calculation.

Products:

(1) Gates: devices designed to allow controlled water flow, usually employed in hydroelectric. The gates designed in IESA:

Slide gate Wheel gate Miter gate

Radial gate Stop log

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(2) Trash Racks: prevent detritus entering inside the turbine, or adduction system for filling the chamber of sluice.

Trash rack

(3) Penstock: pipe lines that serves to carry the water to the turbine, or supply a derivation to a howell bunger valve, or other type of control valve.

Penstock

(4) Steel Liners: Metal pipe usually enveloped in concrete that serves to carry the water to the turbine, or supply a derivation to a howell bunger valve, or other type of control valve.

Steel liner

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(5) Howell bunger valve: device used in controlling the flow of water in bottom discharge systems, sanitary flow and dams in general

Howell bunger valve

Savings:

- Access to a market of more than US$ 100 million / year;- US$ 20 million / year in a history of purchase orders (last 5 years).

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2 – INTELLECTUAL PROPERTY: Inepar Capacitores S/A

2.1 - Process

2.1.1 - Development of software to treatment of harmonicsIntellectual Property: Inepar Capacitores S/AAuthor(s): Flavio Resende GarciaDepartment: Application Engineering

The software (MED) developed is intended to the treatment of harmonics and energy measurements in field. The software was made by application engineering team of Inepar Capacitores to be used in the Harmonics Flow and Load Flow to define the correct solution for power factor correction and harmonic mitigation.

First development in year 2000 and have been improved year by year.

The objective is reduces the period of analysis of the measurements in more than 90% and increase the quantity and variety of electric issues reported.

Results / Savings: Products: - Complete report of the results of the measurements made at the customers allowing to define the best solution possible;

- The use of these tool results in engineering softwares (harmonic flow and load flow) reduces and optimizes the time of response to our customer in more than 04 times using the same team;

- Savings: US$ 20.000,00 per year.

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2.1.2 - Machine development to manufacture insulating paper for internal fuse capacitor applicationIntellectual Property: Inepar Capacitores S/AAuthor(s): Antonio Fanckin NetoDepartment: Production

This machine has transformed the process of insulating paper cards manufacturing, which was done manually in an automated process.

This process involves cutting, creasing and folding the cards used in internal fuse capacitors.

The machine developed gave a reduction of approximately 10% in the amount of labor used in the manufacture of this type of capacitor.

Our production of internal fuse capacitor is usually about 25% of our annual production.

Savings: US$ 20.000,00/ year.

Machine developed

Cards

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2.2 - Product

2.2.1 - Pole mounted low voltage capacitors banksIntellectual Property: Inepar Capacitores S/A, Institutos Lactec, ElektroAuthor(s): Flavio Resende Garcia Department: Application Engineering

The Pole Mounted Low Voltage Capacitors Banks was developed by Inepar Capacitores [R&D projects] to some of Brazilian electric utilities (private and public utilities). First development in year 2003 with Elektro and generates a product line to others electric utilities (CPFL, Energisa, Escelsa, etc.).

The objective is improve the voltage drop at the secondary of the distribution transformers to avoid penalties to the customers by ANEEL.

Results / Savings:

Products: - CAPSEC (Pole Mounted Low Voltage Capacitor Banks) of several reactive power (5, 10, 15, 20, 25 ou 30 kvar) in 220 Volts or 380 Volts;

- FHBTSEC (Pole Mounted Low Voltage Capacitor Banks) of several reactive power (15 ou 30 kvar) in 220 Volts or 380 Volts;

- Savings US$ 300.000,00 in a history of purchase orders.

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2.2.2 - Low voltage tuned passive harmonic filtersIntellectual Property: Inepar Capacitores S/AAuthor(s): Flavio Resende GarciaDepartment: Application Engineering

The objective of the development is to power factor correction, to avoid resonances and to reduce current and voltage harmonic distortion to the limits described on IEEE and IEC standards.

First development in year 1994 (Michelin);

Results / Savings:

Products: - FHSBT (Low Voltage Tuned Passive Filters) of several reactive power (from 25 kvar to 1500 kvar) from 220 Volts to 1000 Volts;

- Savings US$ 4 million in a history of purchase orders.

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2.2.3 - Low voltage minimum passive harmonic filtersIntellectual Property: Inepar Capacitores S/AAuthor(s): Flavio Resende GarciaDepartment: Application Engineering

First development in year 2009 (Michelin) to harmonic filtering of inverters without power factor correction.

The objective of the development is to avoid resonances and to reduce current and voltage harmonic distortion to the limits described on IEEE and IEC standards, without increases the power factor which is very high in some types of electronic loads.

Results / Savings:

Products: - FHMBT (Low Voltage Minimum Passive Harmonic Filters) of several reactive power (from 10 kvar to 50 kvar) from 220 Volts to 1000 Volts.

- Savings US$ 4 million in a history of purchase orders.

Figura 1a – Forma de Onda Corrente 60Hz e Total com Harmônicas sem Filtro

Figura 1b – Forma de Onda Corrente Total com Filtro Figura 2– Foto de um Filtro Harmônico de Baixa Tensão

Figura 1a – Forma de Onda Corrente 60Hz e Total com Harmônicas sem Filtro

Figura 1b – Forma de Onda Corrente Total com Filtro Figura 2– Foto de um Filtro Harmônico de Baixa Tensão

Figure 1a – electric wave form of 60 Hz and total harmonic unfiltered

Figure 1b - total electric wave form with filter

Figure 2 – low voltage harmonic filter

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2.2.4 - Pole mounted medium voltage series capacitors banksIntellectual Property: Inepar Capacitores S/AAuthor(s): Flavio Resende GarciaDepartment: Application Engineering

The pole mounted medium voltage series capacitors banks developed by Inepar Capacitores [R&D projects] to some of Brazilian electric utilities.

First development in year 1999 with CPFL and generates a product line to other electric utilities.

The objective of the development is to improve the voltage profile and the short circuit in long distribution lines.

Results / Savings:

Products: - BCSMT (Pole Mounted Medium Voltage Series Capacitors Bank) from 7200 Volts or 34500 Volts.

- Savings: acess to a new Market of more than US$ 20 million/year.

2.2.5 - Pole mounted medium voltage thyristor controled series capacitors banks Intellectual Property: Inepar Capacitores S/A, Elektro, Unesp – Ilha SolteiraAuthor(s): Flavio Resende GarciaDepartment: Application Engineering

The pole mounted medium voltage thyristor controled series Capacitors Banks developed by Inepar Capacitores [R&D projects].

First development in year 2011 with Elektro and are in the end of the test of a prototype.

The objective of the development is to Improve the voltage profile and the short circuit in long distribution lines and avoid subsynchronous and ferroresonances.

Results / Savings:

Products:- D-TCSC (Pole Mounted Medium Voltage Series Capacitors Bank) from 7200 Volts or 34500 Volts.

- Savings: acess to a un explored market of more than US$ 10 million/year.

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2.2.6 - Three-phase capacitor development for rated voltage exceeding 7200V Intellectual Property: Inepar Capacitores S/AAuthor(s): Antonio Fanckin NetoDepartment: Application Engineering

The development the three-phase capacitor for rated voltage exceeding 7200V enabled Inepar Capacitores to deliver more economical and compact customer solutions.

For industrial applications, where we usually have limited space for capacitor installation, instead of using 3 single-phase units, we can use only 1 three-phase unit with the triple of power, involving lower cost compared with the 3 single-phase units. It makes us more competitive in this market and also with higher gross margin.

Savings: US$ 500.000,00 in purchase orders by year.

Old project

New project

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2.2.7 - Design change (active width) of the windings used inside capacitors Intellectual Property: Inepar Capacitores S/AAuthor(s): Antonio Fanckin NetoDepartment: Application Engineering

This design change involves increasing the active width from 10,25” to 11,57” of the windings used inside capacitors.

We increased the width of the polypropylene film and also the width of the aluminum foil used in the windings. This modification represented an average reduction of 5% in the cost of the capacitors produced.

Savings: US$ 110.000,00/year.

Windings used inside capacitors

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2.2.8 - Design change (volts / winding) of the windings used inside capacitors Intellectual Property: Inepar Capacitores S/AAuthor(s): Antonio Fanckin NetoDepartment: Application Engineering

This change involves increasing the voltage across each element of the capacitor.

This development enables Inepar Capacitores to use thicker insulating materials, maintaining the same dielectric stress of the capacitor.

The result os this modification gave a reducing of the failure rate of the capacitors in the final test from 4% to 2%.

Savings: US$ 25.000,00/ year.

Insulating material

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2.2.9 - Considerable increase in the power of the capacitor units Intellectual Property: Inepar Capacitores S/AAuthor(s): Antonio Fanckin NetoDepartment: Application Engineering

Some changes of the drying and also of the impregnation process coupled with some design modifications and also material and process improvements allowed us to increase the power of the capacitor in 50% in the last 10 years, ie, we move from 600kvar in 2003 to the current 900kvar.

This advance allowed us to be more competitive in the world market.

900kvar 600kvar

Capacitor units

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3 - INTELLECTUAL PROPERTY: Andritz Hydro Inepar

3.1 - Process

3.1.1 - Development of software for hydraulic turbine laboratory Intellectual Property: Andritz Hydro IneparAuthor(s): Alexandre Ferretti / Richard Stratmann

The hydraulic turbine laboratory reproduces in scale, the natural conditions of the turbine in a hydroelectric power plant, simulating the operation and it´s energy efficiency. The turbine is built in scale (model) and used to certificate the contractual requirements.

The hydraulic turbine laboratory has several interconnected systems to reproduce the turbine conditions. These conditions require a reliable control to generate the operational range, according to pre-established operational contract.

The interconnected systems (pumps, generator, tanks, valves) are controlled by software whose the main goal is generate the work operating range ("Power x Head"). The software allows control the action of water on the model, so it can obtain the operational information.

The software developed is the brain of the lab, and the lab characteristics can be inputted in the logical program to improve the results.

Control Room