According to the U.S. Energy Information Administration, hydropower provided approximately 6.5% of the total utility-scale generated electricity in 2016 and is the largest source of renewable energy. Hydropower facilities use a variety of equipment that require lubricants and hydraulic fluids, which are typically petroleum-based products. Due to the inherent proximity of hydropower equipment to waterways, there exists a significant risk that spills and/or leaks of petroleum-based fluids will result in water contamination and environmental damage. We propose to develop an environmentally acceptable hydraulic fluid for use in hydropower equipment. This fluid will be based on our recently-developed fluid blend, which has already been subjected to extensive lifetime testing at a leading hydropower equipment manufacturer and is scheduled to be tested at a hydropower plant owned by a regional utility. We will work closely with equipment manufacturers and end-users to refine the fluid properties and to meet all relevant market requirements. Specifically in Phase I, we will update our database of existing products, review market requirements, and develop a strategy and product roadmap for the commercialization of environmentally acceptable hydraulic fluids. We will also develop a strategy for the large-scale production of our fluids. In parallel, we will develop an environmentally acceptable hydraulic fluid that meets all required biodegradability, biotoxicity, and bioaccumulation properties, while also showing excellent reliability and viscosity properties, and we will start initial testing of the fluid. While the initial focus is on lubricants and hydraulic fluids for hydropower applications, there are significant benefits to extending the project to include environmentally acceptable hydraulic fluid development for use in marine vessels and related loading/unloading equipment. Broadening the market beyond hydropower applications is expected to significantly reduce contamination of water, fauna, and flora. Next, we will address the general hydraulic equipment market. Current estimates for North America show that hydraulic machinery leaks 100 million gallons per year. Replacing petroleum-based lubricants and hydraulic fluids with environmentally acceptable fluids would considerably reduce environmental damage and ground water contamination.
