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Rapid Carburizing and Atmosphere Recovery

Rapid Carburizing and Atmosphere Recovery

Atmosphere Recovery, Inc.Atmosphere Recovery, Inc.15800 32nd Avenue North, Suite 11015800 32nd Avenue North, Suite 110

Plymouth, MN 55447Plymouth, MN 55447Ph: (763) 557-8675 Fax: (763) 557-8668Ph: (763) 557-8675 Fax: (763) 557-8668

Web: www.atmrcv.com E-mail: rrr@atmrcv.comWeb: www.atmrcv.com E-mail: rrr@atmrcv.com

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Company HistoryCompany History

Founded 1994Founded 1994 - Dana & USDOE R&D - Dana & USDOE R&D Heat Treating Furnace ProcessesHeat Treating Furnace Processes Grant & Contract FundingGrant & Contract Funding

1995-19981995-1998 - Process Gas Recycling System - Process Gas Recycling System Development Development

1997-20001997-2000 - Laser Gas Analyzer & Process - Laser Gas Analyzer & Process Gas Controller Developments Gas Controller Developments

2000-20012000-2001 - Initial Sales: $300K - Initial Sales: $300K

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Industrial Heat Treating of MetalsIndustrial Heat Treating of Metals

Typical PartsTypical Parts GearsGears SpringsSprings BearingsBearings TubesTubes FastenersFasteners ToolTool

Typical ProcessesTypical Processes HardeningHardening SofteningSoftening BrazingBrazing SinteringSintering CleaningCleaning CoatingsCoatings

Typical WasteTypical Waste Process Gas: 50-95%Process Gas: 50-95% Energy: 20-40% Energy: 20-40%

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Industrial Furnace Atmospheres – Similar Constituents

Industrial Furnace Atmospheres – Similar Constituents

Carburizing, Carbonitriding, FNC & NitridingCarburizing, Carbonitriding, FNC & Nitriding NN22, CO, H, CO, H22, CO, CO22, H, H22O, CHO, CH44, O, O22, NH, NH33, CH, CH33OHOH

Atmosphere Tempering and Annealing Atmosphere Tempering and Annealing NN22, H, H22, CO, CO, CO, CO22, H, H22O, CHO, CH44, O, O22, NH, NH33, Ar , Ar

Steel, Copper and Aluminum BrazingSteel, Copper and Aluminum Brazing NN22, H, H22, CO, CO, CO, CO22, H, H22O, CHO, CH44, O, O22, NH, NH33, Ar , Ar

Powdered Metal Sintering and AnnealingPowdered Metal Sintering and Annealing HH22, N, N22, CO, CO, CO, CO22, H, H22O, CHO, CH44, O, O22,, NHNH33, H, H22SS

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Typical Atmosphere Control - Measures Only One Gas Species

Typical Atmosphere Control - Measures Only One Gas Species

TypesTypes Zirconia Oxygen Probe – Measures OxygenZirconia Oxygen Probe – Measures Oxygen Dew Point Meters – Measures Water VaporDew Point Meters – Measures Water Vapor Electrochemical Cells – Low Range Single GasesElectrochemical Cells – Low Range Single Gases

BenefitsBenefits Proven TechnologyProven Technology Lower Capital Cost Lower Capital Cost Low ComplexityLow Complexity

DisadvantagesDisadvantages Other Gas Constituents Assumed (Guessed)Other Gas Constituents Assumed (Guessed) Assumptions Often WrongAssumptions Often Wrong Limits Process Control & Improvement OptionsLimits Process Control & Improvement Options Requires High Process Atmosphere FlowsRequires High Process Atmosphere Flows

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Improved Atmosphere Control –Single Gas Plus Infra-Red

Improved Atmosphere Control –Single Gas Plus Infra-Red

Economically Measures Three More GasesEconomically Measures Three More Gases Carbon MonoxideCarbon Monoxide Carbon DioxideCarbon Dioxide MethaneMethane

BenefitsBenefits Proven Technology and VendorsProven Technology and Vendors Can be Used to Reduce Atmosphere UseCan be Used to Reduce Atmosphere Use

DisadvantagesDisadvantages Cannot Measure Hydrogen, Nitrogen and InertsCannot Measure Hydrogen, Nitrogen and Inerts Expensive to Measure Other Significant GasesExpensive to Measure Other Significant Gases Limited Measurement RangeLimited Measurement Range Requires Frequent CalibrationRequires Frequent Calibration Limits High Efficiency Atmosphere Gas MixturesLimits High Efficiency Atmosphere Gas Mixtures Can’t Significantly Reduce Atmosphere UseCan’t Significantly Reduce Atmosphere Use

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Other Gas Analysis Technologies –Not Very Applicable to AtmospheresOther Gas Analysis Technologies –

Not Very Applicable to Atmospheres

Gas Chromatography (GC)Gas Chromatography (GC) High Capital Cost ($15,000 - $60,000)High Capital Cost ($15,000 - $60,000) Slow (2 Minutes+)Slow (2 Minutes+) Complex – Use Requires TrainingComplex – Use Requires Training Carrier Gas and Frequent CalibrationCarrier Gas and Frequent Calibration Few Used for Atmosphere ControlFew Used for Atmosphere Control

Mass Spectroscopy (MS) Mass Spectroscopy (MS) Higher Capital Cost ($50,000 - $120,000)Higher Capital Cost ($50,000 - $120,000) Best Applied on Vacuum ProcessesBest Applied on Vacuum Processes Expensive to MaintainExpensive to Maintain Many Gases Cannot be Determined (Equal Mass)Many Gases Cannot be Determined (Equal Mass)

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Ultimate Atmosphere Control Goal –Practical Complete Gas Analyzer

Ultimate Atmosphere Control Goal –Practical Complete Gas Analyzer

Measure All GasesMeasure All Gases Except Inert Gases (Can be Inferred) Except Inert Gases (Can be Inferred) Low Levels of Oxygen (Work with Existing Controls)Low Levels of Oxygen (Work with Existing Controls)

Monitoring of Any Industrial AtmosphereMonitoring of Any Industrial Atmosphere Fast Analyzer ResponseFast Analyzer Response Compact and Operator FriendlyCompact and Operator Friendly Rugged, Reliable, Easy to ServiceRugged, Reliable, Easy to Service Minimal CalibrationMinimal Calibration Cost-EffectiveCost-Effective Allows Advanced Atmosphere ControlAllows Advanced Atmosphere Control

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ARI Products Measure, Control & ARI Products Measure, Control & Recycle Furnace Process GasesRecycle Furnace Process GasesARI Products Measure, Control & ARI Products Measure, Control & Recycle Furnace Process GasesRecycle Furnace Process Gases

ARI Laser Gas Analyzer

(System 1)

ARI Process Gas

Controller (System 2)

ARI Process Gas

Recycle System (System 3)

Industrial Process

Gas Furnace

Natural Gas and Other Process

Fuels

Process Gases and

Vapors

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Unique & Protected Product FamilyUnique & Protected Product Family

System 1 ($30K-60K): Furnace Gas Analyzer System 1 ($30K-60K): Furnace Gas Analyzer Laser Gas Detector ($20M Spent to Develop)Laser Gas Detector ($20M Spent to Develop)

Sole Instrument Based on Raman SpectroscopySole Instrument Based on Raman Spectroscopy 11 US Patents Awarded11 US Patents Awarded Exclusive ARI License for Non-MedicalExclusive ARI License for Non-Medical

Gas Flow and Control Software ($300K Spent)Gas Flow and Control Software ($300K Spent) ARI Proprietary AlgorithmsARI Proprietary Algorithms Software Developed and OperatingSoftware Developed and Operating

System 2 ($75K-150K): Process Gas Control System 2 ($75K-150K): Process Gas Control ARI Proprietary Processes ($500K Spent)ARI Proprietary Processes ($500K Spent) Software Mostly DevelopedSoftware Mostly Developed

System 3 ($250K-1M): Gas Recovery & ReuseSystem 3 ($250K-1M): Gas Recovery & Reuse Initial Focus on Metals ($700K Spent)Initial Focus on Metals ($700K Spent) Many Future ApplicationsMany Future Applications

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Core of ARI Technologies – Unique Process Gas DetectorCore of ARI Technologies –

Unique Process Gas Detector

Mirror Polarizer Prism & Mirror

Laser BeamGas Sample Tube

Gas Out

8 Optical Filters/Sensors (1 for Each Gas Measured)

Detector AssemblyDetector Assembly

Gas Out

Gas to be AnalyzedIn

Plasma Cell

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Standard Furnace Constituents Monitored and Detection LimitsStandard Furnace Constituents Monitored and Detection Limits

Gas Species Lower Limit

Hydrogen - H2 100 ppm

Nitrogen - N2 50 ppm

Oxygen - O2 50 ppm

Water Vapor - H2O 10-50 ppm

Carbon Monoxide - CO 50 ppm

Carbon Dioxide - CO2 25 ppm

Organics - CxHy 10-50 ppm

Ammonia - NH3 10-50 ppm

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Gas Measurement Options for ARI AnalyzersChemical Name Formula Chemical Name FormulaAcetone C3H5OH Hydrochloric Acid HCL

Acetylene C2H2 Hydrofluoric Acid HF

Ammonia NH3 Hydrogen * H2

Benzene C6H6 Hydrogen Sulfide (Average) H2S

Butane C4H10 Hydrogen Sulfide (High) H2S

Butene C4H8 Hydrogen Sulfide (Low) H2S

Carbon Dioxide CO2 ISOFLURANE

Carbon Disulfide CS2 Methane CH4

Carbon Monoxide CO Methanol CH3OH

Carbon Tetrachloride CCL4 Napthalene C8H10

Chlorine * CL2 Nitric Oxide NO

Chloroform CHCL3 Nitrogen * N2

DESFLURANE Nitrogen Dioxide NO2

ENFLURANE Nitrous Oxide N2O

Ethane C2H6 Oxygen * O2

Ethanol C2H5OH Pentane C5H12

Ethene C2H4 PENTHRANE (Canada)

Formaldehyde HCHO Propane C3H8

Formamide CH3NO Propene C3H6

HALOTHANE Propionaldehyde

Hexane C6H14 SEVOFLURANE

Hydrocarbon (10NM Ctr) CXHY Styrene Monomer C8H8

Hydrocarbon (6NM Ctr) CXHY Sulfur Dioxide SO2

Hydrocarbon Stretch (10-high) CXHY Toluene C6H5CH3

Hydrocarbon Stretch (10-low) CXHY Water H20

Hydrocarbon Stretch (6-high) CXHY Zylene-M C6H4CH3

Hydrocarbon Stretch (6-low) CXHY Zylene-O C6H4CH4

Hydrocarbon Stretch (Gen Ctr) CXHY Zylene-P C6H4CH4

* Cannot be done with Infrared Analyzers Currently measured gases in red

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Analyzer – Industrial ProductAnalyzer – Industrial Product

Model 4EN Furnace Gas Analyzer

Inside ViewInside ViewOutside ViewOutside View

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Gas Analyzer – Basic System ViewGas Analyzer – Basic System View

Detector AssemblyDetector Assembly

Integrated ComputerIntegrated Computer& Control System& Control System

Sample Pump, ValvesSample Pump, Valvesand Pressure Controland Pressure Control

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Example Main Control ScreenExample Main Control Screen

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0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

-2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0Program Time, hours (0.0 = time at initial 1750 deg F)

0

7

14

21

28

35

42

49

56

63

70

Step (0-20) Deg F (0-2000) Carbon Pot (0-2%) % CO (0-70) % N2 (0-70) % CO2 (0-70) % H2 (0-70) % CH4 (0-70) Dew Point (0-70)

Continuous Data RecordingContinuous Data Recording

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Benefits of Laser GasAnalysis and ControlBenefits of Laser GasAnalysis and Control

Multiple Gas Analysis Capability

= System Versatility Paybacks in Many Ways

Reduce Energy Costs Increase Production Capacity Improve Component Quality Improve Component Consistency Reduce Destructive Analysis Costs Reduce Re-Work Costs Better Process Documentation Maintenance Early Warnings Enhanced Furnace Safety

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Economic Benefits of Laser Gas Analysis

Economic Benefits of Laser Gas Analysis

Atmosphere Gas Consumption ReducedEndothermic Example – 90%+

Exothermic Example – 50%+

Extra Gas Generators Turned Off Shorter Cycle Times Inherent

Carburizing Example – Up to 20%

Process Energy Savings Significant Carburizing Example – 25% of Total Furnace Use

Exothermic Example – 15% of Total Furnace Use

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System Paybacks in Less Than 12 MonthsSystem Paybacks in Less Than 12 Months

* Includes Furnaces, Atmosphere Generators, and Ancillary Equipment if Plant New or Near Capacity

Benefit Standard Carburizing

Rapid Carburizing

Exothermic Annealing

Productivity Improvement

• Reduced Processing

• Times  Improved Quality

Up to 20% Up to 50% Up to 50%

Reduced Energy Consumption 25% 40% Up to 30%

Reduced Process Gas Use Up to 90% Up to 98% Up to 90%

Reduced Regulated Emissions Over 90% Over 98% Over 90%

System Price (Typical) $40-100K $70-150K $40-90K

Example CustomerGear

ManufacturerAxle

ManufacturerNon-Ferrous

Annealer

Cost Benefits• Capital Savings (Avoiding Conventional Equipment)*• Operation & Maintenance Cost Reduction

$150K

$100K/year

$250K

$200K/year

$90K

$100K/year

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Product Quality Benefits of Laser Gas Analysis

Product Quality Benefits of Laser Gas Analysis

Surface Carbon (or Nitrogen) Properties Improved Surface Hardness

Controlled Surface Retained Austenite

Consistent Compressive Residual Stress

Reduced Intergranular Oxidation

Improved Same Batch Consistency Improved Batch-to-Batch Consistency Faster Cycle Times

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Case Depth and Profile of PartsCase Depth and Profile of Parts

RCRC5050 Value Case Depths Always Obtained Faster Value Case Depths Always Obtained Faster

Improvement Percentages Depends Primarily on Improvement Percentages Depends Primarily on Desired Final Case Depth (Shallower is Faster)Desired Final Case Depth (Shallower is Faster)

Less Case Depth Variation in LoadLess Case Depth Variation in Load Hardness and Carbon Profile ConsistentHardness and Carbon Profile Consistent Profiles Consistent with Higher Surface Carbon Profiles Consistent with Higher Surface Carbon

PotentialsPotentials Surface Hardness AcceptableSurface Hardness Acceptable Surface Cleanliness not Significant (8620/8625/8630)Surface Cleanliness not Significant (8620/8625/8630)

Higher Quality PartsHigher Quality Parts

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Retained Austenite/Carbides in PartsRetained Austenite/Carbides in Parts

““ARI Process Better (Lower Levels)”ARI Process Better (Lower Levels)” Levels Can Be Adjusted to Suit Desired ResultLevels Can Be Adjusted to Suit Desired Result Controllable with Wide Atmosphere FluctuationsControllable with Wide Atmosphere Fluctuations

BaselineBaseline ARI AcceleratedARI Accelerated

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Grain Boundary Oxidation in PartsGrain Boundary Oxidation in Parts

““ARI Process Better (Lower Levels)”ARI Process Better (Lower Levels)” Levels Can Be Adjusted to Suit Desired ResultLevels Can Be Adjusted to Suit Desired Result Controllable with Wide Atmosphere FluctuationsControllable with Wide Atmosphere Fluctuations

BaselineBaseline ARI AcceleratedARI Accelerated

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Rapid Carburizing – Metallurgical Findings Summary

Rapid Carburizing – Metallurgical Findings Summary

Batch Cycle Times Faster (Load to Unload)Batch Cycle Times Faster (Load to Unload) Same Process Temperature (Typically 1750 Deg. F.)Same Process Temperature (Typically 1750 Deg. F.) Case Depth of .040” – 35% to 50% FasterCase Depth of .040” – 35% to 50% Faster Case Depth of .065 – 20-30% FasterCase Depth of .065 – 20-30% Faster

Less Case Depth Variation Though the Load Less Case Depth Variation Though the Load Controllable Carbon Content/Hardness ProfileControllable Carbon Content/Hardness Profile Controllable Retained Austenite LevelsControllable Retained Austenite Levels Controllable Iron Carbide LevelsControllable Iron Carbide Levels Wide Variation in Atmosphere Constituents ToleratedWide Variation in Atmosphere Constituents Tolerated Soot Control Algorithms Do Not Affect PartsSoot Control Algorithms Do Not Affect Parts

All Parts Released for ProductionAll Parts Released for Production

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Improvements May Be Initiated Because of Air Emission Concerns

Improvements May Be Initiated Because of Air Emission Concerns

Previously Recognized Air EmissionsPreviously Recognized Air Emissions Smoke from QuenchingSmoke from Quenching Burner Combustion GasesBurner Combustion Gases

Unrecognized Air Emissions IssuesUnrecognized Air Emissions Issues Carbon Monoxide (CO) from Atmosphere UseCarbon Monoxide (CO) from Atmosphere Use Comes from Atmosphere Generation, LeakageComes from Atmosphere Generation, Leakage

and Flaringand Flaring

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ARI Products’ARI Products’Sustainable Competitive AdvantagesSustainable Competitive Advantages

* Includes Furnaces, Atmosphere Generators, and Ancillary Equipment if Plant New or Near Capacity

ARI Approach Features

ARI Systems

• Multi-Gas Detection (Eight)

• Fast – Response in Seconds

• All Key Gas Processes Controlled

• Rugged and Reliable

Other Approaches Limitations

Manual Flow Control• Inefficient & Quality Control Issues

• High Energy Use & Emissions

Infrared Analyzers• Can’t Detect Key Gases

• Low Range & Frequent Calibration

Gas Chromatographs• Slow – Response in Minutes

• Carrier Gas & Frequent Calibration

Mass Spectrometers (Future)• Can’t Discriminate Key Gases

• Complex & Expensive

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ARI’s Heat Treating Market is HugeARI’s Heat Treating Market is Huge

Current ARI Installations

Industries Near Term Customers Market Size

ManufacturersAutomotiveAerospaceMachinery

Dana, Timken, ZF/Ford

John Deere

$650M US

$1.5B WW

Job Shops Bodycote, Hi-Tech Metals $300M WW

Metal ProcessRefiningPowderTube/Sheet

Amax Steel Hoeganaes Cerro Copper Tube

$150M US

$500M WW

OEM Vendors Praxair, Air Products, Drever $80M WW

Other IIT Research Institute $20M WW

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FurnaceInstallation& Startup

FurnaceManufacturer

FurnaceDesign

FurnaceSupplier

FurnaceConsultant

GasSupplier

Controls/AnalyzerManufacturer

FurnaceMaintenance

FurnaceOperation

FurnaceUpdate or

Replacement

GasContractor

ControlsContractor

FurnaceContractor

ServiceContractors

FurnaceMarketing & Sales

Thermal Processing Value ChainThermal Processing Value Chain

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Capturing Customer ValueCapturing Customer Value

Profit Margin on Analyzers SalesProfit Margin on Analyzers Sales Analyzer Services: Leasing & Contract FeesAnalyzer Services: Leasing & Contract Fees Analyzer Leasing to Service Contractors Analyzer Leasing to Service Contractors and/or Gas Suppliersand/or Gas Suppliers Control System Sales as Control Contractor Control System Sales as Control Contractor

for System 2 Upgradesfor System 2 Upgrades Licensing Fees for Control Software UsageLicensing Fees for Control Software Usage Consulting, Licensing & Service Fees from Consulting, Licensing & Service Fees from

Recycling Systems (System 3)Recycling Systems (System 3) Shared Energy/Operational SavingsShared Energy/Operational Savings

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Publications Featuring ARI Technology

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Why ARI Will Be SuccessfulWhy ARI Will Be Successful Unique, Fully-Developed ProductUnique, Fully-Developed Product

Exclusive License for Patented DetectorExclusive License for Patented Detector $20M Spent to Develop (by Licensor)$20M Spent to Develop (by Licensor) $1.1M Spent on Proprietary Software and $1.1M Spent on Proprietary Software and

New Gas Control Methods (by ARI)New Gas Control Methods (by ARI) Compelling Customer BenefitsCompelling Customer Benefits

Reduced Costs & Improved QualityReduced Costs & Improved Quality Payback in less than 12 monthsPayback in less than 12 months

Large Existing Customer OpportunityLarge Existing Customer Opportunity 80,000 Furnaces installed in U.S.80,000 Furnaces installed in U.S. 200,000 Furnaces Worldwide200,000 Furnaces Worldwide