Global energy consumption is at an all time high, and Ergon plays a pivotal role in serving industries essential to global energy security. Read Ergon President & CEO Kris Patrick’s latest LinkedIn article, as shown below, to learn more about our commitment to ensuring the stability of energy supply worldwide.
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We’ve reached a pivotal point in the world’s energy economy. The level of global energy consumption is unlike any other time in human history. There are many contributing factors, such as technological developments through increased data processing and the introduction of artificial intelligence, globalization and the move to diversified energy grids. In a recent article, Goldman Sachs shares that data center power demands will grow from 1-2% of total power demand to an estimated 3-4% over the next decade. According to Exxon’s most recent Global Outlook, the modernization of developing countries will also play a role in increasing energy demand. All these factors require us to look at energy security and how we can upscale our energy grids in step with this change. Businesses like Ergon, which provide service solutions for global industries, continue to innovate in step with changes in the market while helping customers adapt to this energy transformation.
Energy Consumption
According to a 2021 Energy Information Administration (EIA) report, world energy use is expected to increase by approximately 50% by 2050. A recent Reuters report highlights that in the U.S. alone, energy consumption has risen to over 4,000 billion kilowatt-hours since 2022, with record highs expected in both 2024 and 2025. As energy use increases, so does the need for diverse energy grids to support this uptick in consumption. And as more agencies adapt to the trend of creating more diversified grids, the need for reliable power distribution becomes more evident.
Transformers and Power Distribution
Energy transformers are the vehicles by which energy, generated from power plants, is distributed along these diverse grids to homes and businesses around the world. With such an important role in power distribution, the life cycle and performance of transformers are vital. Transformers must be able to provide the stability needed to manage voltage and maintain optimum performance long term. Simply put, while energy cannot be destroyed, its efficiency in power generation and distribution is heavily dependent on the quality of transformers. So, what keeps this vital equipment operating at optimal efficiency?
Transformer Oils
Transformers are only as good as the oils that sustain them. Transformer oils, also known as insulating oils or dielectric fluids, are responsible for cooling transformers, keeping them from overheating during the energy transmission process. They also prevent transformers from corrosion, extending service life and reducing downtime due to maintenance issues.
According to Technavio, the transformer oil market size is expected to grow by $1.13 billion by 2028. This growth is largely driven by a focus on power generation and strengthening energy grids to meet the demands of a consistent increase in global energy consumption, as well as an enhanced focus on renewable energy sources. Growth in the transformer oil market size has also been spurred by greater energy demand for high-performing data centers and electric vehicles (EVs), heating pumps and even air conditioning. Security and reliability are important factors for each of these growing demands, and transformers must be able to reliably power the processes associated with these demands. Hence, the importance of transformer oils. The cooling properties of these oils are critical to transformers’ capacity to handle multiple power processes.
Dielectric Fluids and Energy Stability
For 70 years, Ergon has provided innovative solutions to serve industries essential to global manufacturing and infrastructure. Part of our service includes the development, production and supply of specialty oils, such as HyVolt dielectric fluids for power transformers. These high-performing specialty oils vastly improve the lives of transformers and support growing energy trends, including clean energy transmission; voltage conversion for data information systems; the cooling of various parts of EVs, from battery systems to vehicle charging components; and more. Properties within our HyVolt solutions provide the stability needed to ensure optimal performance during power transmission and distribution.
Additionally, key to energy security and stable provision of the right energy load is a consistent supply throughout our grids. That’s why we not only provide quality dielectric fluids for transformers but have developed the supply chain infrastructure needed to ensure we can help keep industries, communities and energy moving.
Impact Where It Counts
As a solutions-driven organization, we recognize the significance specialty oils can have on the global marketplace, and we’re glad to make an impact where it counts in today’s need for energy security. Most excitingly, products like HyVolt allow us to help drive sustainability goals worldwide. A great example is our current involvement in Australia’s new EnergyConnect project. EnergyConnect is Australia’s initiative to support a sustainable energy future by integrating a 900-kilomenter transmission line (the largest in the Southern Hemisphere) that allows for the sharing of renewable energy between New South Wales, South Australia and Victoria. Through the Australian specialty oils distributor, Molekulis, Ergon is supplying HyVolt I to support the transformers used for this initiative. This program will not only reduce energy waste but will also reduce utility costs for consumers.
Transformer oils are at the heart of global energy supply, and their role has gained in importance worldwide. Yet, more important than ever is our need to collaborate further to find ways to both secure energy supply as well as contribute to a more sustainable future. Being part of projects like EnergyConnect allows for such collaboration and is at the heart of our focus on meeting needs, supporting families and serving customers.
Learn more about how Ergon’s HyVolt solutions are powering your world for the long term at HyVolt.com.
