Hydraulic and Fuel Filtration Division. CleanDiesel Overview

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Hydraulic and Fuel Filtration Division CleanDiesel Overview

CleanDiesel Overview Training 1. What is the history of CleanDiesel program? 2. Why would a customer need CleanDiesel? 3. What types of products are available through CleanDiesel? 4. Where would I find customers for the CleanDiesel Products?

A Brief History About CleanDiesel/Velcon May 2009 Nov. 2009 May 2012 Nov. 2012 1953 Founded by Lu Taylor to address rocket fuels cleanliness. Velcon is recognized as the global aviation fuel technology company Velcon is acquired by The Sterling Group Velcon acquires Chemflo adding process filtration 2011 Velcon acquires Twin Filter in the Netherlands July 2015 Velcon Acquires Warner Lewis GmbH Parker Hannifin Acquires Velcon Filters, LLC Parker Merges Velcon Division with Hydraulic Filter Division to form Hydraulic and Fuel Filter Division (HFFD) 3

Diesel Market Trajectory Global demand for diesel engines forecast to rise by 7% through 2017. Diesel fuel demand is increasing as a result Tier 4 HPCR Injection technology demands substantially cleaner fluid to levels of ISO12/9/6 at the injector 90% of engine issues are the result of dirt and/or water contamination The cost of downtime in diesel applications is significant Removal of abrasive particles smaller than 4μm (micron) is common 4

OEM Standards 5 Value Test AS Detroit Property Unit Caterpillar Cummins Standard D975 Diesel Ash content %wt. < 0.01 < 0.02 < 0.02 < 0.01 D482 Carbon residue %wt. < 0.35 < 0.35 < 0.30 D524 Water ppm < 500 < 100 < 200 D1796 Sediment - 18/16/13 18/16/13 ISO 4406 API gravity API 34 to 40 30 to 45 33 to 43 D1298 Flash point F > 125 legal limit > 125 legal limit D93 Cloud point F lowest ambient 10 below lowest ambient 10 below lowest ambient Sulfur* %wt. D2622 Copper Strip Corrosion - < No. 3 < No. 3 < No. 3 < No. 3 D130 Cetane Number - > 40 > 40 > 40 D613 Kinematic viscosity cst 1.9 to 4.5 1.4 to 4.5 1.3 to 4.5 D445 Lubricity mm @ 60 C < 0.52 < 0.45 < 0.46 D6079 Gums and resins mg/100 ml < 10 D381 Asphaltenes %wt. n/a n/a < 6.5 n/a D6560 * Sulfur limit requirements depend on grade (S15: 15 ppm; S500: 500ppm; S5000: 5000 ppm) D93

HPCR Systems Injector operation is more susceptible to deposits and particles between moving parts Wear causes clearances to increase, and the creation of channels between hard sealing seats Leakage Poor emissions Increased fuel consumption Loss of injection pressure, and Dilution of crankcase oil Water molecules erode metal surfaces, reduce fuel lubricity, causing significantly reduced injector life 6

Off-Highway Tier 4 Engines Requirements Fuel injectors operate at super high pressures to achieve emissions standards (30,000 psi+) Injector nozzles openings as small as 2um wide (40 um is visibility limit with human eye) Requirements for diesel fuel based on ISO code cleanliness levels (18/16/13 for storage, 12/9/6 at the injector) Requirement for water removal from fuel (levels down to 200ppm) Fuel for Tier 3 engines, does not meet needs of Tier 4 engines Manufacturers advise: No warranty coverage due to improper fuel filtration 7

Global Variability 8 Diesel is regulated differently in different parts of the world Many different types of diesel in the global market: ULSD EN590 Off-road Marine Biodiesel (many) Winter blends etc Diesel is enormously variable and regulation from the supply side is limited in terms of cleanliness. Regulation and requirements are now being driven from the manufacturers. The World Wide Fuel Charter was put in place to help address this regulatory shortfall.

World Wide Fuel Charter Non-binding Agreement among Industry Groups 9

WWFC Established Global Definition for Diesel Fuel Cleanliness Per WWFC, Fuel is expected to be 18/16/13 or cleaner. 10

Manufacturer Specs Because the WWFC is not enforced, engine manufacturers are using warranty validation as a means of enforcement. Examples: Caterpillar MTU Cummins Source: Cummins Bulletin 4087297-2013 11

Manufacturer Specs Engine warranties are now tied to fuel quality Evidence of warranty denial based on high particle counts from fuel samples taken by the Engine OEM. This has been observed in: Mining Power Generation Forestry Marine 12

ISO 4406 Counts 13 The number of particles counted per millilitre of fluid is then sorted into 3 BINS and converted into a broad classification code The codes are expressed in a 3 part rating, such as 18/16/13 Extrapolated from the ISO 4406 chart would equate as Particle Size (µm) Fluid Tested per ml ISO Code > 4 1845 18 > 6 572 16 > 14 53 13 Reported out as: 18/16/13 ISO 4406: 1999 Code Chart Range Particle per milliliter Code More Than Up to 24 80000 160000 23 40000 80000 22 20000 40000 21 10000 20000 20 5000 10000 19 2500 5000 18 1300 2500 17 640 1300 16 320 640 15 160 320 14 80 160 13 40 80 12 20 40 11 10 20 10 5 10 9 2.5 5 8 1.3 2.5 7 0.64 1.3 6 0.32 0.64

Fuel Contaminants per ISO Cleanliness Levels Bulk Fuel Treatment Annual Fuel Contamination Mass kg (lbs) Annual fuel consumption 10 6 Litres ( Gal) Delivered Fuel ISO Cleanliness Level 22/20/17 20/18/15 18/16/13 16/14/11 25 ( 6.6 ) 400 (882) 100 (220) 25 (55) 6.3 (14) 75 (19.8) 1,200 (2,646) 300 (661) 75 (165) 19 (41) 100 (26.4) 1,600 (3,572) 400 (882) 100 (220) 25 (55) 200 (52.8) 3,200 (7,055) 800 (1,764) 200 (441) 50 (110) 300 (79.3) 4,800 (10,582) 1,200 (2,646) 300 (661) 75 (165) Example: Site receiving 200 ML per year with at a Cleanliness level of 20/18/15 would also receive approx 800 Kilos of solids.

The flow of fuel Tests have shown that the cleanliness level can rise by 1-2 ISO codes each time the fuel is moved or handled Specifying fuel cleanliness as shipped from the refiner does NOT guarantee that the fuel will be at the desired level when entering the asset, vehicle or machine ISO4406 is a logarithmic scale meaning that ISO12/9/6 is 256 x cleaner than ISO21/19/16 256x drop in cleanliness 15 ISO21/19/16 ISO18/16/13 ISO12/9/6

Common Contaminants 16 Solid particulates Dust, dirt, rust, metallics They cause of over +80% of fuel system failures They damage the surfaces of injectors and fuel pump, altering clearances, which affects the delivery of the fuel to the combustion chamber Liquids Water, Air, Engine Coolants, Oils, chemicals Cause of lubrication breakdown, oxidation and compatibility issues Microbial activity Soft Resinous Asphaltenes, heavy chain polymers, waxes/gums, poorly blended additives & other deposits.

Types of Water in Fuel Two major classes of water within hydrocarbons Dissolved : water molecules closely associated with the hydrocarbon molecular framework Not free to move within hydrocarbon and associate with surfaces. Lower concern for lubricity loss or corrosion Free : Water molecules emulsified within hydrocarbon but associated with other water molecules, and bulk water. Free to associated with surfaces Negative impacts to lubricity and corrosion 17

Water Contamination Sources of water contamination in diesel fuel: Delivery of contaminated diesel from supplier Condensation with storage tanks or vessels Rain water through tank hatches or enclosures Wash down water through breathers or vents Temperature change of diesel fuel resulting in dissolved water turning into free water 18

FILTER VESSELS AND SKIDS 19

How do we control & maintain fuel cleanliness levels? It starts with a consistently clean fuel supply. Fuel is NOT sterile & free of contamination as it leaves the refinery process. Increases in contamination levels occur during subsequent transport, storage and transfer. Fuels delivered to a site are rarely at a cleanliness level that meets modern & future engine & fuel system OEM requirements, and thus fuel contamination control on a mine site is a critical issue. Again, there are 3 main types of contamination that need to be controlled & monitored; Solid particulates Moisture (water) Microbial activity occurs in the boundary region between water & diesel Modern ULSD s and bio-diesels may not have an extended storage life, and may have an effective use by date unless managed. There is still much to learn on the longer term stability of these modern diesel fuels.

Water Removal There are 3 primary methods for removal of water from diesel fuels Coalescing Filter - elements designed to coalesce or bring together smaller droplets to form larger Absorption - elements with absorption media (like a disposable baby diaper) to soak up free water Drainage - drain tanks and sumps with settled water Be aware of secondary methods dealing with water removal Chemicals - Some chemicals are used to make the fuel hydroscopic (absorb water) so that water is taken to the combustion chamber. Magic Solutions - Adding absorption materials, snakes, magnets, UV lights etc 21

Coalescing Coalescing filters are filters which are designed to bring together (coalesce) small water droplets into larger droplets thus allowing the water to fall away into the filter sump. Water coalescing initiates by water droplets impacting with a hydrophilic fiber matrix within the Coalescer. Ref picture Coalescer filters will remove particles so they require pre-filtration protection at or below the micron rating of the Coalescer to prevent the Coalescer from blockage by particles 22

FLOW Coalescing Coalescer elements are manufactured in reverse to normal particle filters Initial fibers are initially finer and become larger through the element The finer the initial fibers, the greater an effect on destabilizing the emulsion and initiating coalescing, therefore higher coalescing efficiency 23

Vessel Design & Construction What considerations are used for specifying the correct vessel? Fluid Fluid Flow rate System Temperature System Pressure Micronic, Separator, Clay Material Cost Corrosion Allowance Contaminates All of the above 24

Housings Housing for AD-6 & DFO-6 DVX Configurations: Filter, F/S, Aquacon Flow Rates up to 176 usgpm 2 NPT Inlet/outlet Small Housings Aquacon Focused VF61 / VF62 5 dia 12/24 lengths 25

DVF Series Housings Vertical filter housing for Micronics Filtration Typically Fixed Installation * Use threaded bases (TB) where ever possible 26

DV Series Housings Vertical Filter- Coalescer/Separator Housings Up to 2,100 usgpm Typically Fixed Installation * Use threaded bases (TB) where ever possible 27

Coalescer Separator Automatic Air Eliminator Pressure Relief Operation Coaelscer Elements DP Gauge Most widely used form of bulk fuels filtration in the world Separator Elements Manual Drain

Diesel Filtration Skid Optimized Complete Bulk Filtration Solution for Removing Solid and Water Contaminants ASME code Swing bolt closures Independent DP gauges Air eliminators Walkway I/O Sample Ports Isolation Valves Press Relief Valve 29

Relative Injector Life % Water Contamination Water in ppmv in fuel Reference Cummins inc 30

Particle Analyzers Integrated Particle Monitor (IPM) icountacm20 icountbsplus icountfs 31

IPM Integrated Particle Monitor Independent monitoring of system contamination trends LCD display screen or no display for OEM applications Continuous measurement or programmed sampling periods Full PC/PLC integration technology Communication options: CANBUS, ModBus, RS-232, Cellular Telemetry 32

icountpd Independent monitoring of system contamination trends Warning LED or digital display indicators for various contamination levels Visual indicators with power and alarm output warnings Cost effective solution to prolong fluid life and reduce machine downtime Continuous performance for prolonged analysis Full PC/PLC integration technology 33

icountfs Fluid viscosity as high as 300cSt Sampling period from 5 seconds to 999 seconds Storage up to 250,000 samples ISO4406:1999, NAS1638 and RH% Reducing adaptor Completely self contained Download onto any PC Via RJ45 or via Wi-Fi Sample directly from a reservoir or tank Low or high pressure testing 34

Flow Differential Pressure Module (FDPM MK II) Data Storage 2 GB via MicroSD >3 years of data storage Electrical Certifications Ratings: IP-65 & NEMA 4X ATEX - Class 1 Zone 2 Group D Options Pressure Inputs Two individual pressure transducers One differential pressure transducer Data Networking Ethernet and RS-232 Wireless and GSM Cellular in development 35

36 Sizing Particle Filters

Sizing Particle Filters VF-2456 4.5 gpm/in 9 changes/yr $152K over 7 yrs VF-3656 1.5 gpm/in 0.7 change/yr $55K over 7 yrs 37