Aerosol Capture Technologies (ACT)

1. Aerosol Capture Technologies (ACT) Michael Gidding Daniel Garcia Washington University in St. Louis I2P Global November 17, 2012 We clean the air you breathe.

2. The Entrepreneurial Team • MBA and BS/M.Eng Chemical Engineering Candidate, Washington University ’13 • Previous experience at energy and materials startups, including Eos Energy Storage. • Co-author on refereed papers published in ACS Nano and Small. Michael Gidding • BS Chemical Engineering Candidate, Washington University ‘12 • Previous fuel research experience at ExxonMobil • Published environmental engineering research in multiple peer-reviewed journals. Daniel Garcia

3. Advisory Team Members Prof. PratimBiswas Inventor, Chair of the Department of Energy, Environmental and Chemical Engineering at WashU, expert in aerosol technologies. Garth Fort,former government affairs executive at Monsanto/Solutia Dr. Wei-Ning Wang postdoctoral researcher at WashU’s Aerosol and Air Quality Research Laboratory Gregg Bogosian Former Senior Research Fellow, Monsanto We are looking for… Dr. Pakrasi, Director, International Center for Advanced Renewable Energy and Sustainability Ken Harrington, Managing Director, Skandalaris Center for Entrepreneurial Studies Diesel Engine Expert Health and Safety Regulations Expert

4. Diesel Particulate Matter (DPM) emissions cause significant health problems • Diesel fumes known carcinogen (W.H.O. 2012) • Submicron, nano-sized particulates cause respiratory problems. • Exposure of underground miners to DPM is the highest among all occupations (Cohen et al., 2002) Problem: Health Issues http://www.nytimes.com/2012/06/13/health/diesel-fumes-cause-lung-cancer-who-says.html http://www.mining-technology.com/contractors/project/imp/imp1.html

5. Problem: Emissions Regulations are OEM Business Concern From most recent 10-K (annual financial report) filings… “[O]urability to comply with other existing and future regulatory standards will be essential for us to maintain our position in the engine markets we serve.” United States Environmental Protection Agency (EPA) off-road diesel Tier 4 regulations: effective 2013 “The level of market acceptance of prices for products that meet Tier 4 requirements could negatively impact our financial results and competitive position” “[Changes] in emissions standards resulted in a significant increase in the cost of our products to meet these emissions levels.” EU off-road diesel Stage IV regulations: effective 2014 Stage IV and Tier 4 data from: http://www.dieselnet.com/standards

6. Current technologies are expensive and inefficient • Expensive filters need regular maintenance and can only operate in a limited temperature range • Backpressure caused by filters can cause up to a 10% increase in fuel consumption. • Trade off between PM and NOx emissions levels • Current electrostatic precipitation (ESP) technologies have efficiency minima for nano-sized particles. Problem: Current Technologies Don’t Cut It Source: “Electrostatic Removal of Diesel Particulate Matter,” Farnoud, Ali. 2008. DPM Image Credit: Frost and Sullivan, “Diesel Powertrain Market: Emission Control Technologies North America.” 2011 Chart Source: CIMAC Guide to Exhaust Emissions Control Options, 4-4 and Emission Control Technologies and Regulations for Marine Installations" Filancia, Arnauld, 2006

7. Typical Diesel Exhaust Size Distribution Source: “REVIEW OF DIESEL PARTICULATE MATTER SAMPLING METHODS” Kittelson et al, 1998

8. Idea: Use Electrostatic Precipitators?

9. TYPICAL COLLECTION EFFICIENCY CHARACTERISTIC FOR ESPS Collection Efficiency (%) 0 25 50 75 100 -------------- DPM ------------- -------------- Coal Fly Ash --------------- Viruses Pollen Protein Fragments Dust Bacteria Cigarette Smoke Nanomaterials 1 10 100 1000 10,000 Particle Size (nm)

10. Innovation: The Aero-Zap System Aero-Zap Enhanced ESP • Prof. PratimBiswas • Aerosol & Air Quality Research Laboratory • Chair, Environmental, Energy, and Chemical Engineering at Washington University in St. Louis • National Nanotechnology Infrastructure Network (NNIN) Site Director

11. AERO-ZAP TECHNOLOGY: ENHANCED COLLECTION EFFICIENCY TYPICAL COLLECTION EFFICIENCY CHARACTERISTIC FOR ESPS Collection Efficiency (%) 0 25 50 75 100 -------------- DPM -------------- -------------- Coal Fly Ash --------------- Viruses Pollen Protein Fragments Dust Bacteria Cigarette Smoke Nanomaterials 1 10 100 1000 10,000 Particle Size (nm)

12. Aero-Zap Lab Testing Results: Enhanced Particle Capture Corona + soft x-ray On Residence time < 1 s 100%

13. Product: Aero-Zap System For DPM Capture Aero-Zap Enhanced ESP Working Aero-Zap bench-top system

14. Why Diesel? • DPM particle size distribution aligns well with Aero-Zap collection efficiencies • Large heavy duty diesel retrofit market (~$300M, North America) • Key technical and economic competitive advantages in DPM capture market • Plentiful key strategic partners and customers in and surrounding St. Louis ACT 62.1 mi 100 km

15. Competition Data taken from Farnoud, A., “ELECTROSTATIC REMOVAL OF DIESEL PARTICULATE MATTER,” 2008 and http://www.epa.gov/cleandiesel/technologies/retrofits.htm * Numbers estimated based on fuel consumption and estimated maintenance(cleaning, etc)

16. More efficient technology than filters status-quo • Low pressure drop • Higher collection efficiency • Low maintenance • Self-cleaning mechanism • Deep technical knowledge of design and aerosol engineering • Proprietary design features will be trade secret • Knowledge regarding self-cleaning • Intellectual Property • Initial US patent granted • Plan to file additional patents during optimization • Key strategic partnership • Won USD$50k award sponsored by Peabody Energy Competitive Advantages

17. Low cost solution • Allows for high engine efficiency • Ensures health and safety of miners • Compliance with regulations • Meets or exceeds all PM regulations with >99% particle removal capacity • Potential for treating NOx as well Key benefits to customers and end users Image sources: http://www.freedomsphoenix.com/Uploads/Graphics/257/07/257-0720192809-gold-miner.jpg, http://www.cleanenergyprojectnv.org/uploads/images/Blog/green_man.jpg

18. Value Creation: Fuel Savings If the 4 largest US coal miners adopt Aero-Zap in 10% of their diesel consuming assets, they would save over $14M annually Diesel consumption figures from respective company’s 10-K filings. Assumes US$4/gal diesel fuel price, 10% diesel efficiency savings

19. Research and development on diesel/DPM applications • Longevity studies of the Aero-Zap • Perform studies with self-cleaning mechanisms • Performance over long periods of time – determine maintenance schedule • Build prototypes • Determine final pricing structure • Optimize around customer machines and needs • Begin governmental verification process • Work with EPA, OSHA (Occupational Safety and Health Administration), CARB (California Air Review Board), as well as regulators in European countries • Procedures similar across international environmental regulators Next Steps

20. Raising $400,000 for one year of funding • Includes money for research and development of technology for DPM capture, working with regulatory agencies, building prototypes, filing for additional patents, etc Commercialization/Next Steps Timeline Obatined$63,000 in previous competitions Build prototypes for field studies First sale 2012 2013 2014 Obtain regulatory approval Test on DPM capture

21. “Peabody Energy is working in partnership with the principals of Aerosol Capture Technologies on potential applications of the company’s technology as they relate to the mining industry. Our company has a longstanding collaborative relationship with Washington University in St. Louis, and we are very pleased to partner with the university’s student entrepreneurs to support this exciting technology initiative.” —L. CartanSumner Jr., Vice President, Office of the CEO; Peabody Energy Partnerships and First Customer Insight ACT Aerosol Capture Technologies

22. ACT Aerosol Capture Technologies Thank you!Questions? Image credit: http://wondrouspics.com/wp-content/uploads/2012/04/Question_mark_3d.png

23. Appendix

24. Possible Markets

26. Risks and Mitigation Strategies

27. Tailored catalyst can promote PM, HC,and NOx systems,) Nanostructured photocatalyst coating Can oxidize organiccompounds at low temperatures Product With Tailored Photocatalyst Coating will Enable Total Emissions Control Solutions

28. Photo-oxidation Chemistry: NOx Example Reactions of TiO2 for NOx Light/soft x-rays Source of Images: Photocatalyticoxidation of NOx gases using TiO2: a surface spectroscopic approach, Dalton, J., 2002 Source: “X-ray induced photocatalysis on TiO2 and TiO2 nanotubes: Degradation of organics and drug release,” Schmidt-Stein et. al., 2009.

29. Use of funds

30. System Characterization 14

31. System Characterization: Collection Efficiency Voltage Source Diffusion Dryer Laptop Computer HEPA Filter Mass Flow Controller HEPA Filter Ammeter Soft X-ray Solenoid Pump BANGS Electrostatic Precipitator CPC 3022 Electrostatic Classifier 3080 15

32. System Characterization: V-I • Soft X-ray lowered the corona inception voltage. • Higher current is due to lower ionization potential of O2. 15

33. System Characterization: V-I 16

34. System Characterization: Collection Efficiency Highly efficient removal of particles <100 nm due to diffusion charging. Soft X-ray enhances collection efficiency of sub-µm particles. Negative applied potentials show better removal efficiency. 17

37. Operating in the positive corona area allows for lower formation of ozone. Ozone formation can be almost completely mitigated by adding a Granulated Activated Carbon filter. Source: "Soft X-ray Enhanced Electrostatic Precipitation of Biological Aerosols: Attenuation of Microbial Respiratory Infections and Allergic Airway Disease in Murine Models", Kettleson, Eric. 2011