July 2012 1

2

• Founded in 2011 to commercialize a new nanotechnology and superconductor products resulting from a decade of self funded laboratory research by Dr. Anatoly Rokhvarger. Unique , Patented, Cost-effective and Commercially Viable Ceramic Processing to produce composite high temperature superconductor (HTS) macro-ceramic leads and cost effective electric round wire round wire.

• Goal: sublicense and/or manufacture the major electrical engineering material; the next (Third) Generation High Temperature Superconductor electric wire and related products (3G-HTS).

• By replacing traditional electric copper wire with inexpensive 3G superconducting multi-filament (round) wire, industries realize a 5 – 10x decrease in cost, weight, size/diameter, and power heat losses of electrical cables, motors, transformers and generator rotors saving up to 20% power consumption, yet can transmit power at room temperature like copper.

• Multi-billion dollar world market potential – Broad applications in power transmission systems and cables, data centers, energy storage, Internet and telecommunications networks, electrical equipment, super-computers, defense, marine, aviation/transportation, MRI and other medical apps

July 2012

3

3G HTS electric wire innovation consists of six interrelated patented inventions;

1) the initial material formulation consisting of YBCO ceramic powder, silver powder dope and a silicone polymer multi-purpose additive;

2) a method of deep adhesion coating of continuous metal substrate round filament with HTS ceramic powder suspension;

3) a method of uniform magnetic orientation of YBCO grains within green coating layer;

4) a method for the chemical-ceramic engineering processing resulting in fully-dense sintered HTS macro-ceramic leads;

5) a new product - HTS ceramic coated continuous round filaments that we named 3G HTS electric wire; and

6) the fully mechanized conveyor manufacturing method using inexpensive equipment for “substrate-filament-reel” – to – “3G HTS-wire-reel” production.

July 2012

4

A photo picture of the flexible 3G HTS filament made at our laboratory where a part of the ceramic coating layer was intentionally removed to show the YBCO ceramic coating layer of 10 µm thickness on the metal substrate

Metal coresubstratefilament

Adhesioncoating layer

July 2012

5

As opposed to 2G HTS tape, 3G HTS filaments are as reliable and workable as ordinary copper wire filaments and they:

• high magnetic sustainability to be efficiently used in coils of electric motors, transformers and generator rotors ;

• can be woven into multi-filament electric wire or cable of any diameter for any high level current carrying capacity capacity;

•easy spliced with each other; do not need silver sheath;

• 8-9 micron thickness of the HTS ceramic coating layer makes 3G HTS filaments quench effect resistant

• do not chemically degrade (are permanently resistant) during storage and service in air or liquid nitrogen environment.

•3G HTS wire and cable at liquid nitrogen temperature can transmit electric current density 15-20kA/cm2, which is the most beneficial range for HTS cables and HTS wire applications;

• The Cost : Performance ratio (C/P, $/kA – meter) of 3G HTS wire C/P=$7-9/kA-m while copper has a C/P= $20-50/kA-m. C/P of 3G-HTS is at the threshold of $10/kA-m being defined by the US DOE as the ability of HTS wire to compete with copper electric wire; • The technologically available minimum diameter of the elementary 3G HTS-YBCO filament is 60 microns or 0.06mm. This 3G HTS filament can transmit electricity comparable to copper wire with a diameter of 6 millimeters but with 3-5 times decreasing heat losses.

July 2012

6July 2012

“Sintered Ceramic Composite Lead with Superconductive Nano-Architecture”, US Patent # 7,632,784,

“Superconductor Composite Material”, US Patent # 6,617,284, ”High Temperature Superconductor Composite Material”, US Patent # 6,239,079,

“Method of Conveyor Production of High Temperature Superconductor Wire, and Other Bulk-Shaped Products Using Compositions of HTS Ceramics, Silver, and Silicone”, US Patent # 6,010,983

7

Intellectual Property

Our patents provide protection for lowest cost techniques & better HTS electric leads :

July 2012

8

• Dr. Anatoly Rokhvarger – Senior Vice President & Chief Technology OfficerD.Sc. - in Ceramic Engineering and Materials Science, Tech. Un., Leningrad, f. USSRPh.D. - in Ceramic Engineering and Materials Science, Chem.-Tech. Univ., MoscowMS - in Chemical and Ceramic Engineering, Chem.-Tech. Univ., Moscow, MS - in Applied Statistics, Design of Experiment and System Analysis, Moscow State

University.• Lyubov Chigirinskaya – Vice President - ResearchPh.D. in Chemistry Institute of Physical Chemistry of the USSR Academy of Science,

Moscow M.S. in Chemical Resistance of Materials – Metals, alloys, Polymer, The Inst. of Physical

Chemistry, Moscow, B.S. in Metallurgy -Institute of steel and alloys, Department of Physical Chemistry,

Moscow• Norman Kaish, CEO An innovative corporate startup developer and technology entrepreneur with over 30

years experience specializing in the launch and development of industrial and technology based companies. Mr. Kaish holds a BS in Business from Pace University and US and International patents in electronic, electro-mechanical and electro-chemical technologies . He also has extensive experience in patent and trademark filings and prosecution.

• Arthur Goldberg – Chief Financial OfficerMr. Goldberg earned his B.B.A. from the City College of New York, his M.B.A. from the

University of Chicago and his J.D. and LL.M. from the New York University School of Law. Mr. Goldberg is also a Certified Public Accountant

July 2012

9July 2012

10

Dr. Anatolii Polyanskii , Director of Magneto-Optical laboratory, Applied Superconductivity Center (ASC), The National High Magnetic Field Laboratory Applied Superconductivity Center.

Dr. Miriam Rafailovich, Chief Scientist Advanced Energy Research & Technology Center (AERTC) Professor of Materials Science & Engineering Program in Chemical Engineering at the State University of New York at Stony Brook

Dr. Inna Talmy, Distinguished Ceramic Scientist Naval Surface Warfare Center (NSWC), 27 year career in superconductor and ceramic weapons applications

Mr. Michael Parizh, Electromagnetic Platform Leader, General Electric - Global Research. Formally Senior Manager at Philips Healthcare for almost 20 years.

Mr. Mark Senti, President, Advanced Magnet Lab , Contracts with NASA and DOE in designing, optimizing, manufacturing and testing electromagnetic systems

Dr. Eugene Medvedovski, Ph.D. in Ceramic Engineering Scientific and Project Engineering Institute of Cable Industry, Moscow, Russia. 25+ experience in development and production of ceramic materials and products for power transmission and other advanced applications

Dr. Sergey Drabkin, President Consela Engineering, Professional Engineer licensed in New York, New Jersey Connecticut and Pennsylvania

July 2012

11

COPPER 2G HTS 3G HTS

Current Carrying Capacity JE , kA/cm2 0.2 - 0.4 8 - 12 15-20

Cost : Performance Ratio, C/P, $/kA-m 15 - 50* 75 - 90 7-9

Cost of Wire 1 m x d= 1cm, $

Cost of Wire 1m x d= 0.6cm **, $

Cost of one Elementary Filament (strand), - 1 meter x d = 0.006cm, $

10-20*

4.8 – 24**

0.05 – 0.24*

450 – 600

Unavailable

Unavailable

110

50

0.5(0.27)***

Estimated selling price of 1 meter of 3G HTS electric round wire, d = 0.06mm, $

10.00 -20.00

Estimation of the wholesale market price of 3G HTS electric wire of one meter in length, diameter 0.06mm, and conservative cost $0.30, which can transmit electricity

as copper wire with diameter 6mm and cost of one meter $10.00 - $20.00

* = wholesale market price; ** = wholesale price of #2 AWG stranded (1/4 inch) wire; *** = initial YBCO and silver powder additive cost

July 2012

12

Multi-filament 3G HTS wire is flexible, reliable, and workable as ordinary copper wire but at liquid nitrogen temperature transmits with insignificant heat losses 50 – 100 times more power than ordinary copper wire does at room temperature. The 3G HTS-YBCO filaments can be woven into multi-filament electric wire or a cable of any diameter and capacity carrying electric current as 10 – 20kA/cm2, which is the most beneficial range for HTS cables. Most inexpensive and Efficient HTS ceramic forming and sintering methods

Major Engineering Advantages

3G HTS round filaments working at liquid nitrogen t-re:

• have high magnetic sustainability to be used in coils of electric motors, transformers, generator rotors, and jet propulsion engines;

• can transmit electricity with 3 - 5 times less heat losses than copper wire

3G HTS wire at room temperature can transmit power as ordinary copper wire and multiple magnitudes more power at 77k.

July 2012

13

An industrial plant will be composed by typical conveyor lines for “substrate filament reel” – to – “3G HTS filament reel” production;

- Each line should cost about $800,000 and annually produce 500km 3G HTS wire;

- 3G HTS electric wire (filament) has diameter 0.06 millimeter and transmits electricity as copper wire with diameter 6 millimeter;

- 3G HTS wires (filaments) can be twisted (woven) into multi-filament electric cable.

Industrial cost forecast

The production cost of one meter of 3G HTS wire (filament) of 0.06 millimeter diameter is estimated as $0.30;

- The wholesale price of one meter 3G HTS wire (filament) of diameter 0.06 millimeter is estimated as $10-$20 in full production.

July 2012

14

YBCO ceramic particles, Silver nano-powder, Silicone polymer, Toluene solvent, and Continuous NiCr filament substrate

↓1. Materials preparation consisting of mechanical mixing and ultrasonic

homogenization of YBCO and silver-dope powders suspension in silicone-toluene solution

↓2. Forming HTS filaments using adhesive dip coating the core filament substrate by

solid particle suspension↓

3. Uniform magnetic orientation of YBCO grains within green coating layer↓

4. Polymerization in tunnel oven of silicone resin with embedded YBCO grains↓

5. Ceramic firing consisting of multiple steps including; organic burnt out, heating, liquid-phase sintering, cooling, oxygenation, and final cooling; all in a tube/tunnel

electrical furnace with programmable multi-step controller and oxygen flow in opposite direction of continuous movement of 3G HTS filaments

↓6. Finishing - twisting HTS-YBCO filaments into multi-filament electric wire w/ further coating 3G HTS wire by silicone polymer resin and thermal polymerization

of insulation sheathJuly 2012

Thermo-chemical method of multi-step firing of YBCO coated filament in vertical tube furnace, which results in unique superconductive nano-architecture of full dense sintered YBCO macro-ceramics coating NiCr substrate filament;

Dip adhesion coating of 3G HTS filamentby silicone insulator;

“Substrate filament reel” – to – “3G HTS filament reel” conveyor processing using original filament handling conveyor system;

Scrap free thermo-chemically self-controlled manufacturing process;

The application of inexpensive and market available equipment components.

15

Raw Material Composition comprising any superconducting ceramic (YBCO) powder), silver powder dope, and unique organic/inorganic silicone polymer additive;

Ultrasonic particle dispersing and homogenization of the raw materials suspension;

Chemically self-controlled dip adhesion coating of the metal substrate by ceramic-silver powder suspension;

Uniform orientation of ceramic grains within coating layer of the filament moving between magnet poles;

Polymerization hardening of the ceramic-polymer composite in vertical tube oven;

A cost-effective thermo-chemical (Ceramic Engineering) method for nanofabrication of the formed and sintered (backed) macro-size ceramic leads from initial high temperature superconducting (HTS) ceramic particles making equal inter-grain superconductivity of 3G HTS ceramic macro-leads to inner-grain nano-scale superconductivity of the initial HTS ceramic particles and their crystal grains.

July 2012

• 3G HTS wire at LN t-re can transmit with insignificant heat losses electric current density, JE = 12– 15kA/cm2 while electric copper wire can transmit JE = 0.2 – 0.4kA/cm2. This makes 3G HTS wire very efficient for HTS cables and other electric engineering applications;

• The Cost : Performance ratio (C/P, $/kA – meter) of 3G HTS wire is C/P=$7 –$9/kA-m, while copper wire has C/P=$20 – $50/kA-m. C/P ratio of 3G HTS wire is at the threshold of $10/kA-m being defined by the US DOE for the ability for HTS wire to compete with traditional copper electric wire;

• The technologically available minimum diameter of the elementary 3G

HTS-YBCO filament is 60 microns or 0.06mm. This 3G HTS wire can transmit electricity as copper wire with diameter 6 millimeters but 3 – 5x decreasing heat losses.

16

Major Engineering Advantages

3GHTS wire is well competitive with traditional copper wire

July 2012

17

Pictures of 3G HTS lead prototypes

b

a, Four 3G HTS-YBCO filaments; b, Slip cast formed and sintered HTS-YBCO plate, 20 x 20 mm; c, The rare-earth magnet (0.225g, 5mm in diameter) levitating in air, 7mm above a dry-pressed and sintered HTS- YBCO tablet of 30mm in diameter immersed in liquid nitrogen coolant.

a

c

July 2012

1.E-10

1.E-09

1.E-08

1.E-07

1.E-06

1.E-05

1.E-04

1.E-03

1.E-02

1.E-01

1.E+00

1.E+01

1.E+02

1.E+03

1.E+04

1.E+01 1.E+02 1.E+03 1.E+04 1.E+05 1.E+06

Current Density, A/cm2

63 KA/cm2

1880 W/cm

18

Resistivity, Ohm∙cm and heat power dissipation, Watt/cm for a) 3G HTS ceramic coated silver substrate strand (green) and b) silver strand (red), both at 77K and c) silver strand at 300K (blue) VS. current density (logarithmic scales)

July 2012

Volt - Ampere characteristics of metal and HTS strands; each metal strand and HTS strand silver substrate diameter ~ 0.127mm

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

0.04

0.045

0.05

0.0E+00 3.0E+03 6.0E+03 9.0E+03 1.2E+04 1.5E+04 1.8E+04

Current density, A/cm2

Vo

ltag

e, V

/cm

HTS-15-2001, LN

HTS-15-2004, LN

HTS-S 2004, LN

Copper, Room T

Silver, Room T

19July 2012

April 2012 20

Engineering characteristics of 1G or OPIT (oxide ceramic powder loaded in silver tube), 2G or TFD (ceramic film deposition on multi-metal template

tape), and 3G ceramic coated / sintered filaments (metal substrate filaments coated with sintered ceramics) HTS wires.

1

2

3

4

5

6

7

8

9

 10

11

12

13

14

15

16

17

18

19

20

21

22

23

 

Substrate and/or cover material

Geometrical form of wire element

Wire forming method

Thickness of the workable HTS ceramic layer, µm

Magnetic susceptibility

Cross-section ratio for ‘substrate & cover’ : ‘HTS

ceramics’

Ratio of production costs to raw material costs

Capital costs of manufacturing in comparison with each

other

Eng. electric current density of the HTS wire, kA/cm2

Cost/performance ratio of wire (C/P) $/kA-m

Insulation of HTS wire

Comparison of AC current losses of electric wires

Scrap during prototype wire production

Estimation of flexibility as max. wire bent, grads

Achievable Cost/Performance ratio of wire (C/P), $/kA-m

Quench effects

Superconductivity degradation after 3-5 year long service

Complicity of ceramic grain alignment and orientation

Possibility to splice two wire pieces

End-use applications in electric motors and transformers

Electro-magnetic shielding of HTS wire

Conductivity of HTS wire at room temperature, asLong length variability of wire thickness/diameter and superconductivity

silver

tube

rolling/drawing

5 – 20

low

(2 – 3) : 1

(2 – 3) : 1

5 – 7

 1 – 2

200 - 300

silver tube

1 (round)

significant

30 - 50

200 – 300

significant

remarkable

incomplete

difficult

ineffective

self-shielded

as silver metal

significant

multi-layer metals

tape

template

deposition

0.2 – 0.3

low

(500 – 1000) : 1

(5 – 8) : 1

7 – 12

8 – 12

75 - 90

silver cover tape

5 (tape)

significant

40 - 60

75 – 100

significant

remarkable

complete

difficult

difficult

difficult

as copper metal

significant

NiCr alloy

filament

adhesion coating

6 – 8

high

1 : 1

1.1 : 1

1

25 – 30

7 – 9

silicone resin

1 (round)

insignificant

140 - 150

4 – 6

self-

compensated

no degradation

complete

easy to do

effective

self-shielded

as silver metal

no variationsJuly 2012

3GHTS.COM

Third Generation High Temperature SuperconductorContact: Norm Kaish nk@3ghts.com 516-993-9727

21July 2012