1. Oil & PCBs Free Program:BAT/BEP LCM (Life Cycle Management) for Inventory, Control, Management,Decontamination of Electrical Transformer PCBs contaminated (On Site & On Load)Sea Marconi Technologies sas - All Right ReservedVander Tumiatti President and Founder of Sea Marconi Technologies, Turin (Italy) since 1968 Ass. Secretary IEC TC 10 (International Electrotechnical Commission) Geneve-CH IEC 1906 Award - 2009 Expert PEN - UNEP (POPs-PCBs Elimination Network- United Nations EnvironmentProgramme) Geneve - CH2012 May 2012

2. Sea Marconi - Key Information Foundation: 1968, by Vander Tumiatti Mission: Protection of company assets and environmental resources Activities: Research, Technologies and Services for Energy & Environment Clients: > 3,000 users in the energy, industry and service sectors, worldwideSea Marconi Technologies sas - All Right Reserved Human resources: about 100 employees Quality & accreditation: ISO 9001- 2008, Globe (Sea Marconi Technologies), ACCREDIA Patents: over 40 in EEC, USA, etc. Expertise: members in WGs (IEC, CEN, CIGRE)2012Headquarters (North Italy) May 2012 3. Where we are Karlsruhe GermanyHomcourt France 20072002Collegno (Turin) ItalyBarakaldo Spain19682002Sea Marconi Technologies sas - All Right ReservedLecce Italy 19922012 Buenos Aires Argentina2004May 2012 4. Sea Marconi - Technical CapabilitiesPower transformers treated per year (2011) 670 PCBs Dehalogenation (CDP Process)226 Depolarisation and Reclaim106 Reconditioning338Oil mass treated per year (2011) 5.971 ton PCBs Dehalogenation (CDP Process)1.831tonSea Marconi Technologies sas - All Right Reserved Reclaim and depolarisation1.796 ton Reconditioning2,344 tonNumber of decontamination units (DMU by Sea Marconi) 25Oil samples analysed per Year (2011) 13.287Transformers analysed per Year (2011)8.409Oil test performed per Year (2011) 71.104Transformers database> 50.0002012Diagnostics database > 150.000 May 2012 5. Key References of PCBs dehalogenation EDF (France): Framework Agreement for PCBs decontamination ofat least 200 power transformers per year (since 2003) SNCF (France): Framework Agreement for PCBs decontamination(since 2007) RTE (France) ENEL (Italy): >200 power transformers decontaminated (since1993)Sea Marconi Technologies sas - All Right Reserved Italian Army (Italy) Endesa (Spain): about 30 power and distribution transformers(2007-2009) C.E.R.N. (Switzerland)More than 8000 power transformers in the last 25 year2012May 2012 6. 2012 Sea Marconi Technologies sas - All Right ReservedMay 2012 Focus on the Transformer 7. ScenarioProtection of Resources Assets & EnvironmentFailureExplosion FireOld age Occasional InfancySea Marconi Technologies sas - All Right ReservedDamages Direct: Assets & Personal Indirect: Production Environment: soil, water, air2012 Black-OutMay 2012 8. PCBs: Regulation & StandardsUN initiatives for mitigation of POPs/PCBs1) Protocol to the Convention on Long-range Transboundary Air Pollution onPersistent Organic Pollutants (1979) and Executive Body Decision (1998)2) Stockholm Convention on POPs, 22/05/013) Several UN-promoted projects worldwide for Environmentally SoundManagement of PCBsSea Marconi Technologies sas - All Right ReservedThe UN/ECE Protocol on POPs defines the 16 most hazardous substances forhuman kind and the environment: PCBs is between them In the framework of the Stockholm Convention on POPs recently was launched the PEN(PCBs Elimination Network)AIM: promotion of the cost-effective completion of the environmentally soundmanagement (ESM) of liquids and equipment contaminated with PCBs2012 Sea Marconi is an Expert and Founding Member of PENMay 2012 9. PCBs: Regulation & Standards Decontamination Regulatory References IEC 60422 Ed. 4 2012 Supervision and maintenanceguide for mineral insulating oils in electrical equipment IEC 61619 insulating liquids Contamination by PCBs.Methods of determination by capillary column GasSea Marconi Technologies sas - All Right Reservedchromatography CENELEC CLC/TR 50503 (02/2010)- Guidelines for theinventory control, management, decontamination and/ordisposal of electrical equipment and insulating liquidscontaining PCBs Brochure CIGRE n. 413 (April 2010)- Insulating oil2012Regeneration and DehalogenationMay 2012 10. PCBs: Regulation & StandardsCENELEC CLC/TR 50503 (02/2010)Scope:.toward the Life Cycle Management (LCM) of insulating liquids with the following objectives :a) Reduction of risks for workers, public health and environment, arisingfrom human error, malfunction, or failures of the equipment thatcause fires or spillage of hazardous and Persistant Organic PollutantsSea Marconi Technologies sas - All Right Reserved(POPs);b) Implementation of the Best Available Techniques (BAT) BestEnvironmental Practices (BEP) and methodologies available forsafety, whilst taking into account the surroundings and the criteria ofself-sufficiency and functional recovery;c) Technical faisability of the activities within the prescribed timeschedules, taking into account current legislation and economicalfeasability .2012 May 2012 11. PCBs: Regulation & Standards EUROPEAN DIRECTIVE n. 59/96 of 16.09.1996ARTICLE 2 ARTICLE 3(a) PCBs means.DECONTAMINATION and or-POLYCHLORINATED BIPHENYLSDISPOSAL shall be effected at-POLYCHLORINATED TERPHENYLS (PCTs)the last by the end of -MONOMETIL-TETRACHLORO DIPHENIL2010 METHANE, . (PCBT)-ANY MIXTURE CONTAINING ANY OF THE ABOVE MENTIONEDARTICLE 4SUBSTANCES IN A TOTAL OF MORE THANINVENTORY..within 3 years of the adoptionSea Marconi Technologies sas - All Right Reserved 0,005% BY WEIGHTof this Directive . PCBs INVENTORY IN FRANCE(30 June 2002) 545,610 units2012 May 2012 12. SEA MARCONI approach Oil & PCBs Free Program: BAT/BEP LCM (Life Cycle Management) forInventory, Control, Management, Decontamination of Electrical TransformerPCBs contaminated (On Site & On Load)Sea Marconi Technologies sas - All Right Reserved2012 May 2012 13. SEA MARCONI approach PCBs Free Program: Sea Marconi provides an integrated service including Support for PCBs-inventory (training, analysis, data management) Decontamination of PCBs-containing oil/equipment Risk analysis and evaluation of transformers operational condition Survey and control of contaminated sitesSea Marconi Technologies sas - All Right Reserved In accordance with the European Directives 59/96/EC, art. 4: - Test methods IEC-EN 61619 - EN 12766-1 - prEN 12766-2 - prEN 12766-32012 - prEN 50503 May 2012 14. SEA MARCONI: Life Cycle Management (LCM) approach INSULATING FLUID like HUMAN BLOODSea Marconi Technologies sas - All Right Reserved2012 May 2012 15. SEA MARCONI: Life Cycle Management (LCM) approach Sampling for Diagnostic TestsSea Marconi Technologies sas - All Right Reserved Transformer oilHuman blood2012 May 2012 16. SEA MARCONI: Life Cycle Management (LCM) approachLaboratory for analysesSea Marconi Technologies sas - All Right ReservedSea Marconi lab Typical Hospital lab2012 May 2012 17. SEA MARCONI: Life Cycle Management (LCM) approach Sea Marconi LaboratoryAdvanced analysis methodsAccreditation internationally acceptedQuality certification:ISO 9001; ISO 17025-2000 Our laboratory analysis is among the bestin the world: for the range of tests performed for the technologically advancedSea Marconi Technologies sas - All Right Reservedinstrumentation for the methodologies usedAccreditated tests:- PCBs, PCT, PCBsT, (IEC 61619:1997-04; EN 12766 -3:2004)- Dissolved water (IEC 60814:1997-08)- Furfural and derivative compounds(IEC 61198:1993-09;)2012- Dissolved gases in oil (IEC60567:2005-06) May 2012 18. SEA MARCONI: Life Cycle Management (LCM) approachDiagnosis for identification of functional andenvironmental criticalities (According to IEC 61619, EN 12766)PCBs test reportDiagnosis with health index Test results withand Suggested actions method, uncertainty Trend analysisSea Marconi Technologies sas - All Right Reserved2012 May 2012 19. SEA MARCONI: Life Cycle Management (LCM) approachOil & Transformer decontaminationSea Marconi Technologies sas - All Right ReservedDecontamination Mobile Unit (DMU) Human blood dialysis2012for oil & transfo, On site & On load May 2012 20. SEA MARCONI solution: PCBs dehalogenation Dehalogenation & Detoxification of PCBsChemical process capable to eliminate or reduce PCBscontamination from insulating oils.Several type of process are available, the best compromisebetween efficiency and safety conditions is thedehalogenation in continuous mode by closed circuitSea Marconi Technologies sas - All Right Reservedprocess (CDP Process) by Sea Marconi.The process uses a solid reagent consisting of a high molecularweight glycol mixture, a base and a radical promoter for thechemical conversion organic chlorine to inert salts.Typically it includes: heating to 90-100 C, filtration, vacuumtreatment, chemical reaction and percolation under pressure2012through suitable materials. May 2012 21. SEA MARCONI solution: PCBs dehalogenationCDP Process Patents CEE n.0675 748 - USA n. 5.663.4791982 First patent1983 Successful application for the complete dehalogenation of the 2,3,7,8 TCDD, Dioxin of the Seveso Case in Italy1985 Industrial application on power transformers oil in non-Sea Marconi Technologies sas - All Right Reserved continuous mode (batch process)1992 Development of continuous process (Close cycle)2003 On load application on high voltage power transformers2007 from the BAT Reference Italian Ministry of the Environment as Best Available Technique for PCBs decontamination of electrical equipment in service (Official Gazette n.133)2012 May 2012 22. SEA MARCONI solution: PCBs dehalogenationCDP Process Dehalogenation of PCBs and environmental protection Patent: EEC 0675 748 USA 5.663.479 The closed-loop, continuous-mode, risk-freeSea Marconi Technologies sas - All Right Reserved decontamination of PCBs CDP Process is the exclusive and safe technology for the Decontamination of transformers and the Dehalogenation/Detoxification2012 of PCBs in insulating oils with the functional recovery and PCBs- FREE re-classification of transformers May 2012 23. PCBs decontamination, alternative techniquesSodium, Litium and derivates(Ref IEC 60422, Ed. 4 2012, 12.4.2)Alkaline metals sodium, lithium and derivatesOil Temperature > flash point (150-300 C)Risks of explosion and fire with water and airNon continuous processSea Marconi Technologies sas - All Right ReservedNON CONFORMITY(EC Directive 96/61/CE)2012May 2012 24. PCBs decontamination, alternative techniquesSodium, Litium and derivates(Ref IEC 60422, Ed. 4 2012, 12.4.2)Sea Marconi Technologies sas - All Right Reserved News /video sent by TGR - Piemont (2010) Explosion, FIRE and BLACK OUT2012May 2012 25. PCBs decontamination, alternative techniquesPolyethyilene-glycole and hydroxide ofpotassium (KPEG) (Ref IEC 60422, Ed. 4 2012, 12.4.3) Liquid reagent formed by Polyethyilene-glycoleandhydroxide of alkaline metal (K, Na) Oil Temperature > flash point (130-150 C) Limited efficiency forsome PCB congenersSea Marconi Technologies sas - All Right Reserved(Aroclor 1242) Non continuous processDANGER2012 May 2012 26. PCBs decontamination Techniques comparison CDP Process: Best Available Technique (BAT)Italian Ministry of the Environment, the Territory and the SeasDecree 29/01/2007 Published on the Official Gazette n.133: Guidelines for the identification and utilization of the Best Available Techniques on Treatment of PCBs, apparatuses and wastes containing PCBs and stocking systemsTable E3 Decisional matrix for the various available techniquesSea Marconi Technologies sas - All Right Reserved Functional Environmental Operator Eco-balanceGlobalMETHODSCost/BenefitSafety safetySafetyand EmissionsRatioRetrofilling***** ****** Sodium, Lithium andDerivates******KPEG ******** ****Continuous Closed-2012 Loop Dehalogenation*****************(CDP Process) **** = OPTIMUM; *** = GOOD;** = AVERAGE; * = CRITICAL May 2012 27. SEA MARCONI solution: PCBs dehalogenationCDP Process: features of the process(CENELC TR 50503 8.4.2.3; IEC 60422 Ed 3 12.4.4; Cigre Brochure no. 413 10.1.4) Exclusive Technology developed by Sea Marconi Use of solid reagent for de-chlorination of PCBs Low operational pressures and temperatures (< 80 -100 C)CDP Process = PCBs dehalogenation + oil regeneration simultaneously =Sea Marconi Technologies sas - All Right Reservedrecovery of oil properties and extension of transformer life-time ON-SITE Process: No need for transportation ofbig transformers PCB-decontamination of oil in continuous, closedloop (without draining the equip.) Performed by DMU Mobile Decontamination Units 2012safety and high automated May 2012 28. SEA MARCONI solution: PCBs dehalogenationCDP Process - Schema of PCBs dehalogenationSea Marconi Technologies sas - All Right Reserved PCBs PCBsPCBs PCBsPCBs PCBs2012Desludging effect on core and active partsMay 2012 29. SEA MARCONI solution: PCBs dehalogenationSea Marconi Technologies sas - All Right Reserved2012DMU (Decontamination Mobile Unit) by Sea MarconiMay 2012 30. PCBs Dehalogenation Sea Marconi How does it work?The dehalogenation (CDP Process) is performed usingDecontamination Mobile Units (DMU) by Sea Marconi.The reaction takes while the oil is circulated through DMUa percolation columns, filled with a solid reagentcontaining glycols (PEG, PPG) and strong basis on asolid matrix.Sea Marconi Technologies sas - All Right Reserved2012 Without S/CDP reagent the dehalogenation of PCBs would not be possible May 2012 31. SEA MARCONI solution: PCBs dehalogenationCDP Process - Chemical mechanism1 1 1 1 3 22 3 3 2 2 3R-[O-CH2CH2]n-OH + MOH4 4 1 441+ MCl 5 6 61 51 80 - 100 C 5 6 6151Cl m Cl nHm H nm + n = 1 a 10 m + n = 1 a 10 Where:Sea Marconi Technologies sas - All Right Reserved MOH is an alkaline baseR-[O-CH2CH2]n-OH + MOH is a polyalkylene glycol MCl is an inorganic alkaline chloride The dehalogenation reaction promote the conversion of PCBs into byphenyl and an inert and harmless inorganic salt,2012 THIS MEANS ELIMINATION OF PCBs WITHOUT PCBs WASTE May 2012 32. Dehalogenation Sea Marconi On Load TreatmentSea Marconi Technologies sas - All Right Reservedtransformer is fully operational for2012 the entire duration of thedehalogenation May 2012 33. Decontamination Mobile Unit (DMU) by Sea MarconiDMU = Multifunctional TechnologiesAccording with CENELEC 50503, IEC 60422, CIGRE Brochure no. 413/2010 PhysicalCHEDCOSCDP PROCESS Main function decontamination depolarisation dehalogenationRecovery of dielectric properties Recovery of the chemical properties ofSea Marconi Technologies sas - All Right Reserved the oil (acidity, delta tg, colour)Elimination of DBDS (main responsible of corrosive sulfur problem)Elimination of dissolved organo-metallic contaminantsDehalogenation / Detoxification ofPCB/PCT/PCBT, POPs, compounds etc.2012 May 2012 34. Multifunctional DMU: decontamination also for DBDS BeforeAbatement of DBDS After Concentration (mg/kg) 160 140 DBDS Irgamet 39 120 100 80 60 40 20ASMT Scale: 4c0 0 1 2 3 4 567 89 10 ASMT Scale: 1a Number of treatment cylesSea Marconi Technologies sas - All Right ReservedDBDSdibenzyldisulfide DBDSdibenzyldisulfide2012Oil change color during the processMay 2012 35. Decontamination Mobile Unit (DMU) by Sea Marconi SAFETY FEATURES Process Monitoring The DMU is equipped with process control logical systems (PLC) Oil circulation is automatically stopped in case of emergency Process control is independent from the physical presence of an operator the unitSea Marconi Technologies sas - All Right Reserved operates 24h (GSM Remote Alarm and Monitoring) The monitoring is extended to all relevant parameters: Temperature Pressure Flow rate2012 Oil level in vacuum chamber Smoke detectorMay 2012 36. Kit for Corrosive Sulfur determinationSea Marconi Technologies sas - All Right ReservedTotal Corrosive SulfurQUANTIFICATION2012May 2012 37. Kit for Acid number determinationPatent Pending 2011 by Sea MarconiSea Marconi Technologies sas - All Right Reserved2012 May 2012 38. Kit for Total Chlorine and PCBs screeningPatent Pending 2011 by Sea MarconiSea Marconi Technologies sas - All Right Reserved2012 May 2012 39. SEA MARCONI solution: PCBs dehalogenation Dehalogenation & Detoxification of PCBsSea Marconi Technologies sas - All Right Reserved2012May 2012 40. REAL CASES: before and after PCBs DehalogenationCASE 1 Macedonia, April 2012_______________________ PCBs [mg/Kg] Initial contaminat.: 109 Final contaminat.: < 2 Treatment duration: 6 HrsSea Marconi Technologies sas - All Right ReservedCASE 2 Korea, July 2009___________________________ PCBs [mg/Kg] Initial contaminat.: 297 Final contaminat.: < 22012 Treatment duration: 4 Hrs May 2012 41. SEA MARCONI solution: PCBs dehalogenationPower Transformer REAL CASE (Sept 2011 France) Constr. Year 1975 of PCBs dehalogenation Voltage 400 KV with CDP ProcessPower 250 MVAOil Weight 84.500 Kg Before AfterRecommended Value Parameter DehalogenationCDP Process(96/59/CE)Sea Marconi Technologies sas - All Right Reserved PCB/PCT/PCBT (mg/kg)107,6< 10 < 50 mg/kg Dissolved Gases (%)4,21,1 - Dissolved Water (mg/kg)12,4 8,7< 10 Dissipation Factor (tg delta) 0,1875 0,0352< 0,1 TAN (mgKOH/g) 0,1460 60May 2012 42. SEA MARCONI solution: PCBs dehalogenationREAL CASE (1996)International Tender of the Electricity Authority of CYPRUS for:Elimination of PCBs from the insulating oil of distribution transformers Distribution Transformers: 520 units Mass of contaminated oil:94 ton Power range: 101000 kVA PCBs Contamination Range: 5015.000 mg/kgSea Marconi Technologies sas - All Right Reserved Sea Marconi awarded the tender in collaboration with Pawels Trafo Service Charleroi (Belgium) Alternative Solutions: incineration and replacement with new units Sea Marconis Solution:Reconditioning and classification as PCB-free of transformersAccomplishment of tenders targets: PCBs < 10 mg/kg after 60 days2012 Result: saving of 2 million USD (avoided transformer replacement and waste disposal) May 2012 43. SEA MARCONI solution: PCBs dehalogenation Environmental Performance of CDP Process Chemical destruction of PCBs (PCB-free waste) Top-level countermeasures to avoid PCBs release during process Low temperature process and heat-recovery technology Avoidance of massive CO2 emissions in comparison with incineration LIFE CYCLE ANALYSIS-CO2 DIRECT EMISSIONS FOR 10000 LITERS OIL TREATED-Sea Marconi Technologies sas - All Right Reserved COMPARISSION RETRO FILLING AND DEHALOGENATION (CDP PROCESS)DIRECT EM ISSIONS CO2/UF RETRO-FILLINGDIRECT EM ISSIONS CO2/UF DEHA LOGENA TION 55 MILLION DELTA=49,6 30,00 26,52C O2 EM ISSIONTONS CO2 50 ( T ON S / 1 0 0 0 0 LIT ER SOIL T R EA T ED ) 48,6 4525,00 4035,31 3520,00 30 RETRO FILLING DEHALOGENATION 2515,00DELTA=295 20 1511,810,00DELTA=1,6 105,00 0,535 1,49 0,94 0,04 0,9800 PART OF CO2 EM ISSIONSPART OF CO2 EM ISSIONS PART OF CO2 EM ISSIONSTOTAL 0,00DUE TO TRANSPORTS DUE TO PRODUCTION OF CO DUE TO ELIM INATION OF DIRECT CO2 EMISSIONS -RETRO-FILLING FOR 545 000 DIRECT CO2 EMISSIONS -DEHALOGENTION FOR 545 000 PRODUCTS (REAGENT OR WASTE (USED OIL) TRANSFORMERS (MILLION TONS CO2)TRANSFORMERS (MILLION TONS CO2)2012 REM PLACEM EM T OIL)LCA and CO2 emissions: CDP Process vs RetrofillingMay 2012 44. SEA MARCONI Technology TransferSea Marconis Technologies Worldwidepermanent presence of DMU Sea MarconiUnited Kingdom1999/2000Macedonia 2012South Korea 2009Sea Marconi Technologies sas - All Right ReservedMongolia 2012Argentina2004/2005Brazil 2008 South Africa 20072012 May 2012 45. Conclusions CDP Process: PCBs dehalogenation + Functional recovery/reuse of operational transformers 1. Non-Combustion Technology, no explosion risks, no leakage risk 2. Target: transformers and insulating liquids contaminated with upto 50.000 ppm of PCBs 3. PCBs destruction PCBs-free waste 4. On-site application without draining of transformerSea Marconi Technologies sas - All Right Reserved 5. Well proven Technology: more than 25 years experience and 8.000transformers treated 6. Transfo energized and onload during the process 7. Sea Marconi: technological partner of top-level companiesworldwide 8. CDP Process: Best Available Technology (BAT) - BEP in PCBs2012decontamination of electrical equipment May 2012 46. CDP Process: PCBs dehalogenationStationary plant option - Batch technology Open cycle process (discontinuous mode) Off line and off site application Advantageous for heavy contaminated and waste oils Reaction takes place quickly in heated and stirred reactor Time consuming in separation of by-productsSea Marconi Technologies sas - All Right ReservedEmpting of equipmentChemical reactionDecantingAdsorption - FiltrationDegassing dehydration(only for re-use)2012 Storage of clean oilMay 2012 47. Since 1968www.seamarconi.com ContactsSea Marconi Technologies sas - All Right Reserved Vander Tumiatti Alessandro CapoPresident and Founder Sales Manager Sea Marconi TechnologiesSea Marconi Technologies SasVia Ungheria 20 Via Ungheria 20 10093 Collegno (Turin - Italy)10093 Collegno (Turin - Italy)Tel. +39 011 234.34.34Tel. +39 011 234.34.342012Fax +39 011 234.34.35 Fax +39 011 234.34.35e-mail: tumiatti@seamarconi.it e-mail: capo@seamarconi.itMay 2012