British energy company Shell will expand production capacity of its synthetic ester fluid subsidiary Midel & Mivolt Fluids Ltd. at the company’s Trafford Park facility in Manchester, United Kingdom.
The global ester transformer fluid market is currently worth about U.S. $150 million and is projected to pass $650 million by 2032, according to market research.
U.S.-based Consultancy McKinsey also estimates that demand for electricity in Europe could increase by 7% per year until 2030, placing strain on an already-overloaded grid. This could place greater performance demands on fluids designed to cool and protect power infrastructure.
The electricity distribution industry is gradually switching over to esters as an alternative to mineral oil-based fluids, which can be prone to combust. Although the upfront cost is higher than a mineral oil, longer fluid life and reduced insurance premiums for operators can deliver longer-term savings.
The new production line is being commissioned and should be online in early 2025, Shell said in a press release.
“The commissioning of this new production line reflects the continued growth in demand for our synthetic ester fluid, and reflects the broader global shift by end users towards ester-based transformer fluids,” Richard New, managing director of Midel & Mivolt Fluids, said in a statement.