S&A FY03 ANNUAL REVIEW MEETING



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S&A FY03 ANNUAL REVIEW MEETING Erik Magnuson Quantum Magnetics 15175 Innovation Drive San Diego, CA 92128 Erik Magnuson / 1

Project description Low field magnetic resonance (optionally single sided) is used to perform continuous, remote measurements on industrial materials Objectives Moisture content of wood/wood chips to ±0.5% Moisture content of coal to ±0.25% Rapid measurement of hydrogen content in CaO Overall goal Provide rapidly updated material property measurements with required accuracy and affordable price Erik Magnuson / 2

Addresses technical need(s) of the S/C community and the S/C priorities of the IOFs Moisture content measurement for Forest Products Moisture content measurement for Mining Hydrogen content measurement for Steel Erik Magnuson / 3

Contributes new information or technology to the S/C community Provides accurate moisture content measurements when MC>30% Use UCB/LBNL developed techniques to discriminate wood fiber/ice and wood moisture/rain water Provides fast, clean and non-destructive measurement of hydrogen content in CaO Erik Magnuson / 4

Technical Progress and Outlook Magnet completed Met design specifications for field strength and homogeneity RF probe completed Installed in enclosure NMR measurement performed Computer and electronics acquired and assembled RF power amplifier components acquired Demonstrated ability to measure hydrogen content in CaO (quicklime) Erik Magnuson / 5

HYDROGEN IN CALCIUM OXIDE Signal vs Water Addition. Average of two samples. 60000 55000 50000 45000 Echo Signal 40000 35000 30000 25000 20000 0 0.005 0.01 0.015 0.02 0.025 Sample Weight Change (g) Correlation between sample weight change and signal amplitude. Although high precision has not yet been demonstrated, due to experimental limitations, the results indicate a good correlation between absorbed water and signal, thus demonstrating that the hydrogen in quicklime may be measured by magnetic resonance. The observed amplitude corresponds to 80% of the signal expected from pure water. Erik Magnuson / 6

Future Technical Milestones/Goals Milestone/Goal Integrate new QM preamplifier Final in house testing Expected Completion Date June 2003 Early July 2003 Comments Performance gain worth waiting for Beta test at Paprican (Vancouver BC) July 2003 CaO beta test?? Project Completion October 2003 Erik Magnuson / 7

Integrate new QM pre-amplifier Being developed for landmine detection program Very low noise (noise temp 20K) leading to factor of 3 to 4 improvement in signal to noise ratio Designed to greatly improve transient recovery time Risk is that pre-amplifier may not achieve desired recovery time ( 15 microseconds) Final in house testing Verify system works as expected Shouldn t require hand holding by QM personnel Final integration of control and analysis software Software for prototype will emphasize flexibility Erik Magnuson / 8

Beta test at Paprican Initial emphasis on wood moisture measurement Will investigate other applications in pulp and paper mills e.g. Black Liquor (follow-on to SwRI and UCB/LBNL) CaO beta test More work needs to be done on validating NMR measurements Have not found beta test site yet. Erik Magnuson / 9

Left: Right: Bare magnet with simulated probe (windings are for temperature compensation) Magnet and probe enclosure Erik Magnuson / 10

Industrial end-user involvement Working with Paprican on system testing They have facilities for validating sensor performance Would not involve disruption of production Would provide IP for process control Have held discussions with AMEC for integration with pulp mills Have extensive experience in mill design and construction Looking for partner for CaO Erik Magnuson / 11

Commercialization plan QM intends to be OEM supplier of MR hardware System engineering to reduce cost of production (some task shared with other QM programs) System engineering for integration with plant control systems (primarily a software task) Work with Paprican, AMEC, etc to identify early adopters of technology for pulp and paper mills Identify opportunities in paper recycling industry (e.g. assuring fiber content) Work with early adopters in hardwood lumber industry Interest better monitoring of drying process and some interest in fiber density Erik Magnuson / 12

Work with engineered lumber Wood is typically over-dried to prevent blowouts when heating and that reduces pliability of the wood fibers Other IOF areas of applicability Moisture content measurement of ore Discussions held with UCB/LBNL Hydrogen content of raw material for steel and glass CaO for steel and glass Coke for steel Measure properties of petroleum May be useful to determine end of well life Erik Magnuson / 13

After OIT project completion, what s next? Aviation Security market is maturing, renewing InVision s interest in other markets Potential collaboration with UCB/LBNL on ore measurements Application of technology developed under this program Market potential (optimistically assuming market saturation) Paper and pulp: 1,000 units Engineered lumber: 100 units Lumber: 200 units Steel: 100 units Erik Magnuson / 14

Energy benefits Assuming approximately 0.2% improvement in energy efficiency of Paper and Pulp mills: 10 12 BTU Potential of 75,000,000 KWH/yr in lumber industry from improved kiln operation Energy benefits for Steel industry have not been quantified Erik Magnuson / 15

Economic and environmental benefits Reduced cost of operation of paper and pulp mills due to decreased energy consumption, reduced chemical consumption and increase in yield Estimated $10,000,000/year for hardwood lumber industry from decreased electricity consumption and reduced wood damage Erik Magnuson / 16

System should be ready for beta testing in early July Goal of beta testing is to demonstrate (ideally) improved performance of MR versus current moisture measurement technology An additional goal is to identify other suitable locations in mill for use of the instrument Looking for beta test site for Hydrogen in CaO Improved pre-amplifier design should significantly decrease measurement time to achieve desired accuracy Erik Magnuson / 17