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Dear Sirs Sea Marconi is a leader in the research, development and marketing of new solutions for energy and the environment. In particular, since 50 years, Sea Marconi offers services, technologies and support for the management of fleets of electrical equipment with insulating fluids worldwide. Sea Marconi is organised mainly into three highly integrated business units:

· the diagnostics and research laboratory · the section that coordinates and carries out on-site services (eg on site treatments) · the engineering department that focuses on construction of systems for the treatment of oils and

transformers These three business units operate in an integrated manner to create a portfolio of solutions, products and services for Life Cycle Management (LCM) of electrical equipment with insulating fluids. This set of products and services is identified by the brand TransfoClean®. TransfoClean® is the new “sustainable” solution designed to support owners/holders of electrical transformers with insulating oils in their complex management activities at all stages of the machine’s life cycle (LCM). This means primarily damage prevention and environmental protection, and also taking into account budget constraints and regulatory requirements. TransfoClean® is based on the analogy between man-blood and transformer-oil. Similar to the way clinical diagnostics are performed, Sea Marconi monitors the state of health of transformers by analysing (and diagnosing) the oil inside them. With the appropriate treatments, it is also possible to “cure” particular criticalities and prevent catastrophic failures with possible loss of production and damage to people or the environment.

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The company provides, among others, the following services and products (TransfoClean®):

· Oil analysis and transformer diagnosis (analysis activities and sampling) o Oil analysis and transformer diagnosis o Sampling kit for transformer oil o Sampling made directly by our specialized personnel, or made directly by Client Personnel o Sampling of environmental matrices (PCB/POPs, oil, PCA)

· Oil and transformer Integrated treatments o Dehalogenation (removal) of PCBs in oil and transformers o Physical oil treatment, dehydration of transformers (paper/oil) o Depolarisation against corrosive sulphur and acidity in oil

· Specialistic consultancy o Inventory management (data collection and updating) o Internal transformer inspection (following a breakdown)

· Training courses o Diagnostics for insulating liquids during the life cycle of electrical equipment o Dissolved gas analysis (DGA) in oil-filled transformers o Training in insulating oil sampling (IEC 60475 ed.2 – 2011) o PCB Management

· Supply of Kit for field tests (and sampling) o Kit for on site PCB screening of oil (SM-TCPs) o Kit for Total Corrosive Sulphur (SM-TCS) determination on site o Kit for on site determination of acidity of oil (SM-TAN) o Kit for sampling of transformer oil

· Sales of Systems to treat oils and Transformers (DMU- Decontamination Modular Units)

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Oil analysis and transformer diagnosis FLUID ANALYSIS & DIAGNOSTIC Sea Marconi may provide a wide range of analyses on insulating fluids and other materials (e.g. kraft paper) (more than 100 different chemical, physical and electrical tests) to assure the best service available on the market today. Sea Marconi is also a pioneer on Natural esters fluids applications, developing and adopting specific methods since 2010. Sea Marconi’s Laboratory provides testing, interpretation and diagnostic on the following materials: Insulating Fluids:

· Mineral oils · Natural Esters · Synthetic esters · Silicone fluids

Aromatic synthetic fluids (dodecylbenzene and derivates) Solid insulation:

· Kraft paper · Pressboards

Reactive materials: · Copper · Silver · Magnetic steel

Test are addressed to the condition assessment of electrical equipment, giving in the diagnostic report an evaluation on the principal degradation mechanisms, fault presence, solid insulation condition, health&safety issues (PCB, PCA, Flash Point, etc.) Operating on the base of an over 30 years experience, Sea Marconi’s Laboratory treats 16000+ samples per year, in the market of generation, transmission, distribution and industrial use of electrical power.

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DIAGNOSTIC SERVICE The Diagnostic Service is the core and the real added value on Sea Marconi’s services. We do not provide just analytical results or a mere evaluation of the analytical among norms and industry standards. We provide a Diagnostic and Decisional Map, an effective support to decide the intervention priorities and the required corrective actions (repair, electrotechnical deeper evaluation, decontamination, depolarization, replacement etc.). Our exclusive diagnostic approach is finalized toward the identification of the functional state of the equipment being checked, as well as the identification of the most probable critical factors for the continuity of operations and/or the reduction of the reliability and the useful life of the equipment itself. It is the diagnostic coverage service evaluating the state of health not just of the single of the fleet of equipment proposing the actions required for a correct management. Thanks to the special Sea Marconi sampling kit, the Customer takes from the transformer a small amount of oil and sends it to our laboratory to be analysed. The final result is a simple and immediate diagnostic report, showing, at a sight, possible troubles suggesting, if required, the corrective actions to be implemented. All this in a simple, fast and reliable manner. DIAGNOSTIC PACKAGES Sea Marconi has defined some Standard Diagnostic Packages, as a function of different levels of diagnostic deepening required. They cover the life cycle of the transformer, starting from the first phases of the procurement through the disposal (end of life), to cover each stage of transformers’’ and fluids’ life, or to identify/expand on a particular critical “disease” that the oil or transformer has, based on a deeper investigation. DIAGNOSTIC SERVICE ON CLIENT’S ANALYTICAL RESULTS Based on client’s analytical results, Sea Marconi can provide specific diagnostic packages (on separate database storage) to provide the state of health of a transformer at a specific point in its life cycle (LCM) or to identify/expand on a particular critical “disease” that the oil or transformer has. ADDITIONAL SERVICES (EXPERTISE, TRAINING AND CONSULTING) Sea Marconi’s provides a full service to the actors in the domain of electrical power. Expertise in case of failures (with our personnel involved in the internal inspection and search of the root cause failure analysis). Training for both field personnel (sampling, basic interpretation of test results, countermeasures against contamination and faulty conditions) and managers (advanced diagnostic, decision making, planning of mitigation actions, management of transformers’ fleet). Our consultants work with the customer to define the best maintenance policy and diagnostic approach, to achieve the most effective cost-to-results preventive action plan.

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“Our strength derives from the union of science, passion and energy shared since 1968 by the entire Sea Marconi team “

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“TransfoClean Diagnostics” vs Labs & Best competitors

Benchmarking between 2 options for Life Cycle Management of Oils & Transformers (also for dry transformers)

Key Factors TransfoClean Diagnostics

Typical laboratory analysis

Best Competitor Diagnostics

Smart LCM-O&T1 10 Steps Yes No No Diagnostic & Prognostic Metrics2 10 key factors Yes No No Experience, Database & Case histories more than 45 years, 3,000 customers, 50 Countries 70,000 transformers with 100 insulating fluids, 200,000 diagnostic reports, 2,000,000 results

Yes to be evaluate

to be evaluate

Analysis – markers for criticalities identification and classification

Yes more than 100

less than 20

less than 20 Advanced Dynamic Modelling of big data, fuzzy, neural and genetics algorithms Yes No

to be evaluate Criticalities & Actions – functional and environmental such as corrosion (C1, C2, C3, C4) consumed life, POPs/PCBs, etc.

Yes more than 60 criticalities

less than 10

less than 20

Independence from the producers of transformers, oils, repairers, end users Yes

to be evaluate Yes

Laboratory International Accreditation (Accredia n. 0899 for PCBs, DGA, water in oil, furans tests, etc.), uncertainty (ISO/IEC 17025)

Yes No Yes

Skills - High level: PhD analytical and organic chemistry, engineers, statistics, accredited in international committees (IEC, CIGRE, etc.)

Yes No to be evaluate

Innovation, 3 new patents and publications Yes No to be evaluate

Web application with Semantic Interface Yes No No Smart Apps for onsite inspection Yes No No Smart Point for temperature, moisture, mechanical shock with data recording Yes No No

Operation profile and data recording (algorithms) Yes No No Smart Sampling - electrical properties: New Methods & Multidetection Yes No No Smart Sampling - physic-chemical properties: New Methods & Multidetection Yes No No

1 Smart LCM (Life Cycle Management) - O&T (Oil & Transformer) 10 Steps: I. Inventory and data management; II. Requirements and procurement; III. Acceptance; IV. Factory Test; V. Commissioning-Pre energization; VI. Energization; VII. Infancy; VIII. Operation; IX. Ageing; X. End of life (Recovery materials and waste disposal – PCBs, etc.) 2 Metrics I. Anamnesis-Family; II. Anamnesis-Subjective; III. Signs (Visual evidence and/or onsite tests); IV. Symptoms-analysis (markers to be analyzed); V. Trends; VI. Outlook; VII. Certainty Factors; VIII. Case histories; IX. Criticalities - functional and environmental with priorities and index; X. Actions – prevention and/or mitigation with priorities and index.

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Oil and transformer Integrated treatments CHEDCOS ® DEPOLARISATION AGAINST CORROSIVE SULPHUR IN OIL Chedcos® selective depolarisation uses:

· treatment systems created by Sea Marconi called DMUs (Decontamination Modular Units),

· patented reagents (S/DEP®) without which the treatments would not be as effective

· an unparalleled operational method because it is carried out on-site and in a closed circuit, meaning that the transformer is not emptied, not even partially

· appropriate safety procedures also for the “On-Load” mode, mean that the transformer can be kept in service and filled for the duration of the treatment.

· highly qualified staff

Our solution is effective, economic and lasts because it eliminates the cause of the problem, by removing from the oil both DBDS and other corrosive sulphur compounds (DBDS < 10 mg/Kg). At the same time, depolarization by Sea Marconi restores the oil’s functional properties in accordance with IEC 60422 Ed.4-2012, CIGRE 378-2009 Art. 4.2. REMOVAL (DEPOLARISATION) OF ACIDITY OF OIL For insulating liquids that are either acidic or have polar compounds, Sea Marconi has devised a service called Selective Depolarization against acidity (Chedcos®).This treatment is aimed at removing polar compounds and oxidation products that are responsible for increasing the total acidity (TAN), increasing the Dielectric Dissipation Factor (tan delta) and decreasing interfacial tension. At the same time, thanks to Sea Marconi’s Depolarization treatment, it is possible to restore the other physical-chemical properties of the mineral insulation oil in accordance with IEC 60422 Ed.4 2013.

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OIL PHYSICAL TREATMENT Insulating oil within electrical equipment in operation is subject to deterioration/contamination, mainly because of the surrounding conditions. This contamination continuously reduces the dielectric properties of the fluid thereby increasing the probability of failure. The physical treatment (also called physical decontamination) of oil, a more beneficial process than replacing it, aims to eliminate any contaminants in the insulating liquid (water, solid particles, dissolved gas), returning them to the range indicated by industry regulations and guidelines (IEC, CENELEC, CIGRE, etc.) and to prevent potential damage caused for example by the progressive accumulation of water in solid insulation with the formation of gas bubbles and electric discharges. DEHYDRATION OR DRYING OF TRANSFORMER (PAPER/OIL) Sea Marconi carries out cellulosic insulation dehydration (papers) using two alternative processes: DIRECT DEHYDRATION Direct dehydration of the transformer (papers) consists of heating the reels by circulating the oil. Subsequently, the transformer is rapidly emptied and put under vacuum. Then the transformer is partially filled maintaining the suction of the vacuum. The extraction of moisture occurs by cyclically repeating the heating and vacuum processes. INDIRECT DEHYDRATION The indirect dehydration of the transformer (papers) consists in heating the oil (and therefore the reels), to help the water in the papers transfer into surrounding oil. Once the water has moved into the oil it can be removed through the degassing and dehydration systems. Water movement from the papers to the oil is aided by heating it: the higher the temperature the higher the solubility of water in the oil. For this reason, the indirect dehydration is performed while keeping the transformer in service, under tension and filled.

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“Sea Marconi Solutions” vs “Replacement of Oil”

Benchmarking between 2 options for Life Cycle Management of Oils & Transformers

Key Factors Sea Marconi Closed loop treatment*

Replacement of Oil

On-Load Operation Yes No Off-Load for Draining and Refilling

Requirement of Unused Oil No Yes 125%/150% of original mass of oil**

Compatibility of Unused Oil vs original Safety Warning base Oil, additives, others**

Recovery: Physical Properties KV, DGA, H2O Yes Warning*** only after reconditioning of Unused Oil in closed loop §11.2.3 (IEC 60422 Ed. 4 2013)

Recovery: Chemical Properties TAN, DF, IFT Yes Warning*** only after reconditioning +

reclamation treatments of Unused oil in closed loop §11.3 (IEC 60422 Ed. 4 2013)

Removal: DBDS & Corrosive Sulfur Yes Warning*** only if initial DBDS is < 80 mg/Kg or reclamation with special adsorbent

Desludging & Dehydration Solid Insulation Yes Warning*** only after reconditioning +

reclamation of Unused oil in closed loop §11.3 (IEC 60422 Ed. 4 2013)

Decontamination: Dissolved Metals Yes Warning*** only after reclamation with special

adsorbent if initial value is 8/10 times higher than the target limit

Dehalogenation: PCBSs/POPs in Oils Yes Warning*** only if initial PCBs is 8/10 times higher than the target limit

Self-cleaning unit from: DBDS, PCBs/POPs Yes No cross contamination*** Cross contamination by DBDS, PCBs/POPs Safety Warning depending upon the used oil

impregnated mainly in the solid insulation Partial Discharges: bubble air & moisture inlet Safety Warning especially for wet insulation

Environmental Risks for Oil handling Safety Warning high logistical impact

Oil & PCBs Waste disposal No Yes especially if PCBs is higher than limit * Integrated treatments with DMU (Decontamination Mobile Unit) using closed loop process patented by Sea Marconi ** In compliance with IEC 60296 Ed. 4 2012 *** Depending upon the used oil impregnated mainly in the solid insulation

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“Sea Marconi Solutions” vs “Fuller Earth treatments”

Benchmarking between different treatments techniques available for Life Cycle Management of Oils & Transformers

Key Factors DMU & Integrated

Treatments* Sea Marconi Patented

Treatment with typical Fuller

Earth

Treatment with typical Fuller Earth and regeneration

> 600-700 °C

Recovery: Physical Properties KV, DGA, H2O Yes Yes Yes Recovery: Chemical Properties TAN, DF, IFT Yes Yes Yes

Removal: DBDS & Corrosive Sulfur Yes No No

Decontamination: Dissolved Metals Yes No No

Dehalogenation: PCBs/POPs in Oils Yes No No

Classification: BAT/BEP - Best Available Techniques/Best Environmental Practices (PCBs/POPs) Yes No No Self-cleaning unit from: DBDS, PCBs/POPs

Yes No No

Cross contamination by DBDS, PCBs/POPs Safety Danger Danger Corrosion by Sulfur Degradation byProducts (SDBP) as H2S, Mercaptans, etc. due to high temperature (> 370 °C – typical 600-700 °C) Safety Safety Danger

Dioxins Emissions (PCDDs, PCDFs) due to high temperature degradation byproducts from PCBs/POPs and halogenated contaminants in Oils Safety Safety Danger

*CDP Process® for PCBs/POPs chemical dehalogenation; CHEDCOS for DBDS & Corrosive Sulfur Selective Depolarization

Example of Case history: «C3 - SDBP & Corrosive Sulfur» URUGUAY 2010

Post Failure diagnosis on a Grid Transformer showed signs of electric arcs on tap selector contacts. The failure has been caused by the formation of Corrosive Sulphides as CuS, Cu2S, Ag2S, etc. Indeed, «At relatively high temperature, sulphur-containing oil molecules may decompose and react with metal surface to form metal sulphides» (IEC 60422 Ed. 4 – 2013 art. 5.17). This mechanism started together with the oil regeneration process with reactivation of sorbent and fuller earth column by uncontrolled combustion (> 370 °C). The Sulfur Compounds naturally present (DiBenzoThioPhene – DBTP, etc.) in the Oil and additives (DBDS, etc.) in Sulfur Degradation ByProducts are decomposed. Other Ref. National Grid (UK), ABB (Sweden), 2010 Doble

Conference (USA)

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CDP PROCESS® DEHALOGENATION (REMOVAL) OF PCBS IN OIL The CDP Process® is classified as the Best Available Technique – BAT for PCB decontamination of transformers in service and those at the end of their life cycle (Italian Ministry of the Environment, Min. Decree 29/01/2007 – OJ No. 133 of 07/06/2007 Art. D.2.2.2.3 and Art. E.3). CDP Process® (patent EEC No.0675 748 – USA No.5,663,479), an integrated solution that uses:

· treatment systems created by Sea Marconi called DMU (Decontamination Modular Unit), · patented reactants (S/CDP®) without which the treatment would not be as effective · an unparalleled operational method because it is carried out on-site and in a closed circuit, meaning

that the transformer is not emptied, not even partially · highly qualified operation staff

The CDP Process is able to reclassify “NO PCB” oil and transformers at the same time as restoring the optimal conditions in accordance with IEC 60422 Ed.4-2013 Art. 12.4.4; CENELEC PR 50503 – 2010 Art. 8.4.2.3; CIGRE 413 – 2010 Art. 10.1.4.

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“Ideas and Innovation for the Energy and Environment

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Training courses The science education and training events that we launched in 2002 and growing demand for them from around the world has prompted us to establish Sea Marconi Campus, a new centre of excellence for vocational development in the management of transformer fleets and insulating fluids. Campus Sea Marconi has been working with clients for 45 years, and we have the technical expertise that derives from out experts participating in various international groups for industry standards (IEC, CIGRE, CENELEC, etc. )Sea Marconi provides total training, from educating technicians in the field to managerial issues and more theoretical sessions for imparting regulatory developments in the sector. Campus Sea Marconi’s strength lies in the ability to apply concepts learned in the classroom immediately in the field. Sea Marconi trainers are specialists in the field and are exposed on a daily basis to the very issues that are discussed in the classroom. CATALOGUE OF TRAINING COURSES

· Diagnostics for insulating liquids during the life cycle of electrical equipment · Training in insulating oil sampling IEC 60475 ed. 2 – 2011 (Hints on interpreting analytical results) · Analysing dissolved gases (DGA) in oil-filled transformers · PCB management

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Sales of Systems to treat oils and Transformers SMART DMUS – DECONTAMINATION MODULAR UNITS The DMU plants are designed for integrated treatments of mineral insulating oils and equipment, in continuous and closed-loop mode, on-load or off-load, without any total or partial draining of the equipment according IEC 60422 Ed.4 2013 §12.4.4, CENELEC TR 50503 2010 §8.4.2.3, CIGRE Brochure no. 413 2010 §10.1.4:

• CDP PROCESS® - chemical dehalogenations/detoxifications of PCBs • CHEDCOS® AD -selective depolarization of the oxidation products and/or polar contaminants • CHEDCOS®CSD - DBDS and corrosive Sulphur compounds depolarization • Physical Treatments

All Chemical Treatments above mentioned, use appropriate solid reagents and sorption materials depending on the type of Treatment to be performed, as well as operating procedures. The DMU is suitable either for dehalogenations/detoxifications of PCBs (CDP Process® - BAT), selective depolarization (using appropriate solid reagents and sorption materials) & reclaim (ChedCos®), and reconditioning (degassing, filtration, dehydration) of mineral insulating oils in continuous and decontamination of transformers in closed-loop mode, without an even partial draining of the equipment The decontamination modular units are special plants equipped with elements for heating, filtering and degassing the insulating fluid contained by electrical equipment. The oil is sucked into the DMU, where it is progressively decontaminated and then returned into the equipment being treated. The closed loop circulation of the oil is one of the distinctive elements of the Sea Marconi processes and, at the same time, it is a feature contributing to define them as safe. DMUs can be operated in different operating scenarios, implementing one or more concurrent functions:

a) CDP Process® Decontamination of the insulating oils containing or contaminated by polychlorinated biphenyls, polychlorinated terphenyls and PCB, PCT, PCBT with a concentration between 0 and 100 mg/kg, though the chemical dehalogenation process CDP Process® (Sea Marconi EU Patent n. 0675748).

b) ChedCos CSD® Depolarisation against corrosive sulphur in oil -The selective depolarization of the insulating oils to remove DBDS or corrosive contaminants, in order to restore its chemical-physical properties, according to the Standard IEC 60422 Ed.3 2005-10

c) ChedCos AD ® Depolarisation of polarized compounds- The selective depolarization of the insulating oils to remove or reduce the polar contaminants and oxidation products, in order to restore its chemical-physical properties, according to the Standard IEC 60422 Ed.3 2005-10.

Our processes operate safely also thanks to the low processing temperatures (Max T° < 110 C°), the absence of draining operations on the transformer, the use of pa-tented reagents combined with safe and inert materials not presenting dangers for explosions and fires.

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Sea Marconi designs, develop and produce its DMUs in Italy, using components, devices and materials from premium supplier, preferably Italian and anyway from European Union, and is the only Transformers Oil Treatment System producer that both sells and uses its technology, to provide either direct service to its Clients if required or support the Clients with the Best Technology Option available worldwide. DMUs & CDP Process ® technology comply with the standards of the Best Available Techniques (BAT) and Best Environmental Practices (BEP), as confirmed by the study produced by the Italian Ministry of the Environment and published on the Official Gazette of the Italian Republic on August 21st 2007. The technology complies with the standards of the Best Available Techniques (BAT) and Best Environmental Practices (BEP), as confirmed by the study produced by the Italian Ministry of the Environment and published on the Official Gazette of the Italian Republic on August 21st 2007. SMT Smart DMUs are designed and developed for the integrated treatment of insulating liquids complying with the requisites of Standard IEC 60296 Ed.4 2012 and IEC 60422 Ed.4 2013, contained by transformers and electrical equipment in operation or tanks. Smart DMUs are unique treatment equipment’s which provide, with the suitable Modular Configuration, the most complete range of oil and electrical equipment treatment services worldwide. The SMART DMUs modular configurations allows user to operate in different operational scenario (geographic, logistics etc.), assuring to carry close-loop treatment with no partial drainage of the transformer, both off-load and on-load, ensuring a unique operational flexibility. Sea Marconi is operating more than 20 “state of the art” decontamination units (also for different contaminates decontamination), in different operational scenarios, having the opportunity to develop and validate new technologies, to offer the state of the art and high performance units to it client, capable to work in a unmanned way operating in in full safety conditions at any stage of the process.

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Please, note that upon request we are available to share reference and contacts numbers and email of our Client’s Contact Persons. We remain at your disposal for any additional information. Truly yours, Cristina Tumiatti Business Development Executive SEA MARCONI Via Ungheria 20 10093 Collegno (TO) – Italy Tel.: +39 011 234.34.34 Cell +39 340 0636224 E-mail: tumiatticri@seamarconi.it www.seamarconi.com