Many chemical industries use variety of thermal fluids for their reactor heating/cooling systems. There is often a lack on the part of the user on the hazards of the thermal fluids and the importance of proper specification and maintenance. Most of the thermal fluid systems operate above their flash points. I read some good technical papers by Paratherm Corporation. Excerpts from the articles are given below:
"Fluid leaking from valves, gasketing,welds or instrument ports finds its way into porous insulation and wicks through. Remaining as hot as the system itself, the fluid comes into intimate contact with the air in the insulation's millions of pockets. As it enters each pocket, the fluid oxidizes and decomposes—in the process using up the existing air and creating heat. Confined within the insulation, the heat has little chance of escaping. The continued oxidation causes temperatures to rise. In some cases temperatures may exceed the autoignition point of the fluid. Should the insulation be opened up when the system is hot, fresh air will immediately enter. Coming into contact with the hot, partially oxidized fluid, fresh air can cause spontaneous ignition resulting in a smoldering fire, or a flash".
The paper also recommends precautions to be taken in component selection, installation and maintenance.
Read the paper in this link. Read another article on Prevent fires in thermal fluids
Disclaimer: I am not advocating any product and am sharing this information in the interest of process safety
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