Advanced Stabilization for Medium to Extra High Voltage Cable Applications Ronald Becker, Irfaan Foster, Andrea Landuzzi, and Thomas Schmutz Chemtura Corporation © Copyright 2012, Chemtura Corporation

Content Background Power Cables Requirements for power cables Cable Failures Total Cost of Ownership Choice of Suitable Antioxidant Summary © Copyright 2012, Chemtura Corporation2

Background © Copyright 2012, Chemtura Corporation3

Background Power Cables – Industry Trends © Copyright 2012, Chemtura Corporation Continued rapid expansion of energy needs globally, especially in developing world -Population growth -Rapid urbanisation -Creation of middle class -Greater demand by consumers (digital) & industry -Ave. US household has 26 consumer electronic products Expect energy demand in Asia to increase 100% by 2025 Huge investments in new infrastructure & upgrades to meet surging demand Significant investments in Renewable Energy require greater capex & will increase transmission distances 4

Power Cables ― Requirements for Power cables ― Cable Failures ― Total Cost of Ownership © Copyright 2012, Chemtura Corporation5

Technically demanding Excellent reliability -Lifetime expectancy > 50 years -Digital world – momentary loss of supply is catastrophic Total cost of ownership – cable failure or replacement is catastrophic and expensive Growing demands for higher capacity leading to higher service temperatures Minimized environmental impact 6 Requirements for Power Cables

Power CABLES – Total Cost of Ownership © Copyright 2012, Chemtura Corporation Over 40 year lifetime, cost of cable is $118 /m Largest potential for savings is to reduce energy losses Initial cable cost is only 8% of total cost Cable cost is only $10 /m Metal conductor is largest cost element TR-XLPE is 2 nd largest cost element AO represents only $0.04 /m of cable cost but is CRITICAL FOR PERFORMANCE 7 Chemtura estimation for Western Market

Cable Failures – The Costs Estimated* annual costs of power outages in USA is $ 80 B Majority of outage costs are borne by commercial & industrial sectors Power outages can be due to: Insulation failure Connection Pollution Overloads Workmanship Water Ingress © Copyright 2012, Chemtura Corporation8 * Uni. Berkeley 2004 report for US Dept. Of Energy

Cable Failures – In XLPE Insulation XLPE cables tend to age progressively & unavoidably so failures become common In-situ replacement of cables is expensive - $350/m One major factor for cable failure is due to inception & growth of trees in insulation layer © Copyright 2012, Chemtura Corporation9

Cable Failures – In XLPE Insulation Two types of trees occur: Electrical Trees Water Trees Electrical Trees grow quickly (hours, weeks) & are direct cause of final cable failure (flashover) Water Trees – more complicated, grow for years, disruptive event occurs as water tree converted into electrical tree due to impulses or surges © Copyright 2012, Chemtura Corporation10 Water and electrical trees may lead to catastrophic failure

Cable Failures – Causes of Trees Two theories for the creation of trees 1.Electro-Mechanic Forces Local stresses are created near defects in insulation, which break the polymer chain and lead to formation of voids 2. Electrochemical Oxidation Oxidation of PE creates cavities Oxidation products can further degrade PE creating other defects © Copyright 2012, Chemtura Corporation11 Electrical trees (ET) are linking two contaminants M. S. Mashikian and A. Szatkowski, IEEE Electrical Insulation Magazine, July-Aug. 2006

Cable Failures – Causes of Trees Prevention of Trees requires: Highest cleanliness (free of impurities) Antioxidants to prevent polymer degradation © Copyright 2012, Chemtura Corporation12 Water and electrical trees may lead to catastrophic failure Electrical trees (ET) are linking two contaminants M. S. Mashikian and A. Szatkowski, IEEE Electrical Insulation Magazine, July-Aug. 2006

Increasing Service Life of Power Cables © Copyright 2012, Chemtura Corporation Requirements for TR-XLPE cables: Highest cleanliness Free from defects Service T of 90 o C and an emergency T of 130 o C for a maximum of 1,500 hours (ICEA S ) Water and Electrical Tree resistant formulations Scorch protection during cross-linking Extended polymer protection during production & in service 13

Choice of Suitable Antioxidant © Copyright 2012, Chemtura Corporation14

Choice of Suitable Antioxidant © Copyright 2012, Chemtura Corporation Requirements for TR-XLPE cables: Prevent auto-oxidation of polyethylene during processing and cable manufacture, without inhibiting the cross linking Provide scorch resistance, LTTS, and OIT to meet specifications Be compatible in the resin compound and resist extraction or blooming under elevated temperatures Cleanliness – avoid impurities transfer into polymer Easy handling and dispersion into polymer 15

Choice of Suitable Antioxidant MV, HV & EHV Power Cables © Copyright 2012, Chemtura Corporation LOWINOX® TBM-6 stabilizer offers best performance LOWINOX® TBM-6 stabilizer interacts less with the peroxide allowing higher degree of cross-linking which provides: Improved polymer protection during processing Improved polymer durability in-service Optimized dosage level of peroxides & AO Providing better long-term performance and fewer failures 16 Degree of XL( Δ torque Nm )

Choice of Suitable Antioxidant MV, HV & EHV Power Cables © Copyright 2012, Chemtura Corporation LOWINOX® TBM-6 stabilizer offers better scorch protection which provides: Improved polymer protection during processing Improved polymer durability in-service Wider operating window for cable producers Improved productivity due to higher lines speeds Providing better long-term performance and fewer failures LOWINOX® TBM-6 stabilizer offers best performance 17 Scorch Time at 120C(min)

Choice of Suitable Antioxidant MV, HV & EHV Power Cables 18 3 Optimal 2 Good 1 Sufficient 0 Inadequate © Copyright 2012, Chemtura Corporation 18 LOWINOX® TBM-6 stabilizer provides best scorch resistance for longer service life

LOWINOX® TBM-6 Stabilizer Characteristics Features of LOWINOX® TBM-6 stabilizer Reacts with polymer backbone so more permanent and compatible with polymer No negative interactions with the peroxide Provides the best scorch resistance Offers best processing stability & long term heat protection Highest purity material Excellent cleanliness © Copyright 2012, Chemtura Corporation19 LOWINOX® TBM-6 stabilizer reduces cable failures

Why Chemtura’s LOWINOX® TBM-6 Stabilizer is the only SOLUTION? Two critical criteria for AO used in power cables Cleanliness Purity These factors determine: Protection provided to polymer during processing Long term performance of polymer Creation of water and/or electrical trees Potential points of failure © Copyright 2012, Chemtura Corporation20 A cleaner & purer AO will extend the service life of the power cable

Cleanliness of Antioxidants Why is it Important? Two critical criteria for antioxidants used in power cables Cleanliness Amount of insolubles /particulates Purity The % purity is an indication of suitability © Copyright 2012, Chemtura Corporation Particulates can cause failure via electrical trees 21

22 Competitive Product Where we stand compared to our competitors Chemtura LOWINOX® TBM-6 CLEANLINESS: Filtered acetone solutions Impurities lead to premature cable failure Competitive material has many impurities Chemtura LOWINOX® TBM-6 stabilizer – has no impurities © Copyright 2012, Chemtura Corporation 22

LOWINOX® TBM-6 stabilizer has decades of proven track record on purity and cleanliness We deliver a highly pure product without external contaminants: Back integration on raw materials allows control on cleanliness and consistency Process and plant designed to minimize contaminants, especially metals Direct packaging in a fully enclosed controlled environment system Continuous investment in improvement Strict specifications and quality control processes 23 Clean & pure AO extend the service life of the power cable 23© Copyright 2012, Chemtura Corporation

Summary © Copyright 2012, Chemtura Corporation24

Chemtura … your preferred supplier to the W&C Industry The CLEANEST SOLUTIONS PROVEN TRACK RECORD > 40 YEARS We supply the market leaders in the Industry New higher performance and cleaner products under development © Copyright 2012, Chemtura Corporation25

Your benefits when working with Chemtura The widest range of specialty stabilizers True innovation and partnership in development Local service, worldwide, including strategic investments in emerging markets Technical expertise and applications knowledge that adds value Regulatory compliance and corporate responsibility A commitment to future growth © Copyright 2012, Chemtura Corporation26 South America North America Middle East Europe Asia

Your Benefits When Using Chemtura Stabilizers © Copyright 2012, Chemtura Corporation 27 Global regulatory, environmental & food contact compliance Safer addition of additives and improved productivity using different product forms Protecting polymer architecture and preventing discoloration using antioxidants Maintaining the color & appeal of plastic products. Extending product life

© Copyright 2012, Chemtura Corporation28