© ABB Group May 3, 2012 | Slide 1

SF6 Gas ManagementAustralia

Dr B. Alexander; ABB Australia Pty Limited, Moorebank, Australia

© ABB GroupMay 3, 2012 | Slide 2

SF6 Presentation Overview

Clean Energy Future LegislationPower industry problemSignificance of ABB’s recycling technologyABB Strategy for SF6 Gas Management in AustraliaSF6 Gas Management Service offeringCustomer benefitsSF6 safety issuesBest practice inventory managementSummary of Proposed SF6 lifecycle

© ABB GroupMay 3, 2012 | Slide 3

Clean Energy Futures Legislation

From 1 July 2012 SF6 imported into or manufactured in Australia will incur the carbon tax, that is;

on all gas and gas filled equipment

Importers of SF6 and importers of equipment containing SF6 will require a license.

ABB will be licensed

Recycling of SF6 will not be considered as manufacturing and therefore does not incur a carbon tax

© ABB GroupMay 3, 2012 | Slide 4

Clean Energy Futures Legislation

Number of tonnes of carbon dioxide

equivalence of SGGx Applicable

Charge + xNumber of

tonnes of SGG

PrescribedRate( () )

Formula for calculating levy on imported or manufactured Synthetic Greenhouse Gas

© ABB GroupMay 3, 2012 | Slide 5

Clean Energy Futures LegislationCarbon Price Mechanism - Cost per tonne of SF6

Carbon price $/tCO2e

Carbon price eq. / tonne

SF6

Total Levy 1 / tonne SF6

FY 2013 $23.00 $549,700 $549,865

FY 2014 $24.15 $577,185 $577,350

FY 2015 $25.40 $607,060 $607,225

FY 2016 benchmark average auction charge

1. This includes the cost recovery levy or prescribed rate of $165/tonne of synthetic greenhouse gas imported and will be administered as a total levy.

© ABB Group May 3, 2012 | Slide 6

Power industry problemWhy offer SF6 management as a service?

First generation SF6equipment now being replacedClassified as a Greenhouse GasCompliant recovery and disposal required at end of lifeLimited disposal options availableCost to businessSafety and environmental risk

ABB InnovationSF6 Recycling Plant

ABB InnovationSF6 Recycling Plant

© ABB Group May 3, 2012 | Slide 9

Significance of new technology

Used SF6 acceptable for reuse(IEC60480) > 97.0 v/v% pure

Gas

Car

t

Technical grade SF6(IEC60376) > 99.7 w/w % pure

Possibility of gas recycling by manufacturerM

anuf

actu

rer R

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Inci

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tion

Pure SF6

Hea

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onta

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AB

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ABB Recycling Plant handles all levels of contaminated gas

Recycled to > than IEC 60376

© ABB GroupMay 3, 2012 | Slide 10© ABB Group May 3, 2012 | Slide 10

SF6 value chain – Power products industry

SF6 cleaningusing gas carts

MAINTAIN

Filling, refilling,reclaiming, quality assessment,leak detection,gas sensing,logistics,inventory, reporting

BUILD

SF6 used incommissioningnew HV and MVswitchgear andcircuit breakers

SUPPLY

SF6distributors

DECOMMISSION

Decommissionningof old switchgear, SF6 needs to be reclaimed anddisposed of ina compliant manner

DISPOSE

Contaminated SF6 gas is incineratedor processed forreuse by gas distributors

Carbon Tax Regulations

High logistic costs and energy consumption

© ABB GroupMay 3, 2012 | Slide 11© ABB Group May 3, 2012 | Slide 11

SF6 value chain – Power products industryABB Strategy for SF6 Gas Management

MAINTAIN

Filling, refilling,reclaiming, quality assessment,leak detection,gas sensing,logistics,inventory, reporting

BUILD

SF6 used incommissioningnew HV and MVswitchgear andcircuit breakers

DECOMMISSION

Decommissionningof old switchgear, SF6 needs to be reclaimed anddisposed of ina compliant manner

DISPOSE

Contaminated SF6 gas is incineratedor processed forreuse by gas distributors

Carbon Tax Regulations

ABB is providing a complete environmental management solution

ABBSF6 Recycling Centre

SUPPLY

SF6distributors

Amount imported

is reduced

Need to dispose is eliminated

© ABB GroupMay 3, 2012 | Slide 12

SF6 management activities

Disposal of gas SF6 inventory managementRecycling of SF6 to technical grade standard IEC 60376Reclaiming used and contaminated gasDecommissioning of HV and MV switchgearLive Monitoring of SF6 equipment.

Customer benefitsLower risk

Improved safety performanceReduced risk of non compliance to regulationsAdherence to local standardsUse of ABB’s qualified service techniciansMake reporting to authorities easier

Customer benefits (continued)Reduced costs

Reduced maintenance and replacement costsReduced work time on siteImproved protection and extension of product lifeEnhanced asset management capabilities

Customer benefits (continued)Decreased carbon footprint

Support environmental policy objectivesReduction in greenhouse gas emissions

Safety management issuesManaging SF6 decomposition by-products

Highly arced gas can produce hazardous decomposition by-productsContact with water (moisture) can turn by-products into corrosive acidSuitable cylinders/valves for gas recovery must be used

Acid by-products may corrode cylinders and or valves

PPE for handling acid by-products required

Best practice SF6 inventory managementCylinders and valves

Colour co-ordinated cylinders

Green shoulder technical grade gasYellow shoulder used gas

Special RPV valves for new SF6

Reduce risk of compromising purity of clean gas

Corrosive resistant valves and cylinders for contaminated gas

Improves safety

Summary of Proposed SF6 lifecycle

Use of SF6 in electrical equipment

Decommission, maintainSF6 switchgear

Transport used SF6 toABB Recycling Centre

Recycle using ABB’sPatented Technology

Reclaim contaminated,used or unwanted SF6

Reuse clean green SF6

Quality assurancecheck to IEC60376

Deliver technical gradeSF6 to customer