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Storage Gas Joint Venture Agreement

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					    Pressure Exchanger development history
    Leif J. Hauge – November 2009


                                      NORWAY 1985
                                      Hitra

                                      How can I can use cold sea water for cooling
                                      my vegetable storage high up on the hill
                                      without using too much energy?

     Dolmsundet Marina                This challenge put forward by my brother
     located on the island of Hitra   Ragnar late 1985 sent me off to uncharted
                                      territory dominated by unpredictable events.

                                      Today the farm site is a popular resort for
                                      fishing and diving with guests from East and
                                      Northern Europe .




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    Pressure Exchanger development history
    Leif J. Hauge – November 2009


                                    NORWAY 1986

                                    A first prototype of a none-rotary pressure
                                    exchanger is made and achieves an award at
                                    the Norwegian Inventor show in Bergen
                                    “KLEKK 86”.

                                    Shortly after the idea of a rotary pressure
                                    exchanger emerges and a small unit with a
                                    bronze 3”rotor is used for demonstrations.

                                    Design work on a larger 4” rotor unit in
                                    stainless steel is started.




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    Pressure Exchanger development history
    Leif J. Hauge – November 2009


                                    NORWAY 1987
                                    Norwegian Hydrotechnical Laboratories

                                    During testing of the 15 m3/h rotary pressure
                                    exchanger, it is discovered that the flow will
                                    rotate the rotor, hence no need for external
                                    drive.

                                    The first US patent # 4,887,942 “Pressure
                                    Exchanger for liquids” is filed based on self
                                    rotation through a particular end cover profile.

                                    Design work on a new 4” rotor unit based on
                                    flow rotation and hydrostatic bearings is
                                    started. Cast end covers is introduced with
                                    improved flow profile.



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    Pressure Exchanger development history
    Leif J. Hauge – November 2009


                                    NORWAY / KUWAIT 1988
                                    Norwegian Hydrotechnical Laboratories
                                    Kuwait Institute for Scientific Research

                                    Testing of the new unit shows the hydrostatic
                                    bearing system is working and mixing is low.

                                    Sea Water Reverse Osmosis (SWRO)
                                    seemed to be the best application for the
                                    pressure exchanger and Kuwait Institute of
                                    Scientific Research (KISR) had already
                                    established a unique test facility Doha
                                    Reverse Osmosis Plant (DROP).

                                    After initial contacts with KISR management, it
                                    was decided to ship the prototype to Kuwait.
                                    A test bed is prepared using reject from the
                                    2nd stage of their SWRO plant at 40 bar.
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    Pressure Exchanger development history
    Leif J. Hauge – November 2009


                                                      KUWAIT 1989
                                                      Kuwait Institute for Scientific Research

                                                      A successful test using dye colored water
                                                      (dark red) as LP feed becomes fully
                                                      pressurized to 40 bar without sign of
                                                      discoloring of the HP reject. This was quite
    STATE Minister of Cabinet Affairs Rashid          stunning to the observing Cabinet ministers
    Abdul-Aziz Al-Rashed accompanied by
    Minister of Electricity and Water Dr. Hamud Al-
                                                      and KISR management, leading to the signing
    Rguiba                                            a 3 year R & D Joint-Venture agreement.

                                                      The development program focuses on
                                                      developing a fundamental understanding of
                                                      the flow dynamics involved through modeling
                                                      and experimental verification.

                                                      US patent 5,338,158 “ Pressure Exchanger
                                                      having axially inclined ducts” that need no
5                                                     booster pump is filed.
    Pressure Exchanger development history
    Leif J. Hauge – November 2009


                                          KUWAIT 1990
                                          Kuwait Institute for Scientific Research

                                          The development program continues until
                                          the Iraqi invasion August 2. The inventor and
                                          his family is forced to leave Kuwait.

                                          The prototype and associated equipment is
                                          lost along with all personal property as well.
                                          The family decides to take up residence in
                                          USA.
    Iraqi tanks rolled into Kuwait City
    during Saddam Hussein's invasion      The KISR Joint-Venture is suspended and will
                                          not resume again




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    Pressure Exchanger development history
    Leif J. Hauge – November 2009


                                    GERMANY 1991
                                    Thyssen Nordseewerke GmbH

                                    A Joint-Venture for using pressure exchanger
                                    in connection with CCD (Closed Cycle Diesel)
                                    propulsion system was started with the
                                    German submarine manufacturer Thyssen
                                    Nordseeewerke GmbH. Exhaust gas need to
                                    be scrubbed into the sea while submerged,
                                    which would require a pressure exchanger.

                                    A new 30 m3/h prototype with 6” rotor using
                                    low galling superalloys is built and tested for
                                    sound and reliability. The hydrostatic bearing
                                    system shows instability and a new principle
                                    seems required.



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    Pressure Exchanger development history
    Leif J. Hauge – November 2009


                                    GERMANY / USA / NORWAY 1992
                                    Thyssen Nordseewerke GmbH
                                    Newport News Shipbuilding
                                    AGA Innovation

                                    The new rotor positioning system operates
                                    without external restrictors and uses a step
                                    bearing and is very stable.

                                    The unit was demonstrated for Newport News
                                    Shipbuilding ,which secures an order of a
                                    large unit.

                                    The unit was test successfully for oxygenation
                                    of fishponds by AGA Innovation in Norway,
                                    prior to being tested further in Germany by
                                    Thyssen.

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    Pressure Exchanger development history
    Leif J. Hauge – November 2009


                                    GERMANY/USA 1993
                                    Thyssen Nordseewerke GmbH
                                    Newport News Shipbuilding

                                    The Thyssen Joint-Venture comes to an end
                                    without reaching the necessary operational
                                    reliability due to high propensity for seizing
                                    (cold welding).

                                    A large 10” rotor pressure exchanger with 75
                                    m3/h flow capacity is built and successfully
                                    tested for Newport News Shipbuilding and
                                    US-NAVSEA. Submarine thermal desalting
                                    plants need a brine pump in order to
                                    discharge brine.




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     Pressure Exchanger development history
     Leif J. Hauge – November 2009


                                     USA / DENMARK 1994
                                     Norfolk harbor
                                     HOH Water technology

                                     A 1,500 GPD SWRO plant is built and
                                     operated continuous at about 33 % recovery
                                     for 1000 hours with 45-50 % energy savings.
                                     The plant used a modified CAT 347 plunger
                                     pump using 1 plunger as a booster pump. The
                                     pressure exchanger used a 2” rotor operating
                                     at 2 GPM.

                                     A CAT 2537 triplex pump is modified with an
                                     ejector and tested by HOH showing 45 %
                                     energy savings and leads to an exclusive
                                     marketing agreement for Scandinavia, Canary
                                     Islands and the Maldives.

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     Pressure Exchanger development history
     Leif J. Hauge – November 2009


                                       USA 1995
                                       Virginia Beach

                                       Based on further test result from the SWRO
                                       plant, the seawater based hydrostatic rotor
                                       positioning function shows unreliable
        The first object grind was a   performance.
        coffee mug to be fitted on a
        rotor as an outer sleeve.
                                       A development program to change materials
                                       from metallic superalloys to ceramic is started.
                                       Manufacturing technology for in-house
                                       machining of alumina green ware is
                                       developed for rotor, end covers and housing.

                                       US patent 5,988,993 “ Pressure Exchanger
                                       having rotor with automatic axial alignment”
                                       was filed.

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     Pressure Exchanger development history
     Leif J. Hauge – November 2009


                                     USA 1996
                                     Tennessee
                                     Oak Ridge National Laboratory
                                     The High temperature Materials Laboratory

                                     A DOE sponsored R & D ceramic
                                     manufacturing study was awarded. Initial test
                                     grinding of parts to required tolerances took
                                     place early fall.

                                     Design optimization of ceramic parts,
                                     including CNC based machining and firing
                                     continues.

                                     The goal is to ready a field installation in the
                                     Canary Islands, but first generation pressure
                                     vessel with the ceramic parts under high
                                     pressure has design flaws.
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     Pressure Exchanger development history
      Leif J. Hauge – November 2009

                                 USA / Spain 1997
                                 HOH Canarias SA
                                 Canary Islands-Lanzarote

                                 A dramatic redesign of the pressure vessel
                                 allows the use of a standard Du Pont
                                 membrane vessel. US patent # 6,659,731
                                 “Pressure Exchanger” is filed.

                                 A n 80 m3/D commercial SWRO plant located
                                 Costa Teguise, Lanzarote has been prepared
     Bjørn Lyng, the late        with a booster pump and downsized CAT
     founder of Aqualyng         triplex pump. The installation of the pressure
     observes the worlds first
     pressure exchanger in a     exchanger proceeds smoothly. When feed
     commercial SWRO             pressure rises, the rotor start accelerating with
     plant November 1997.
                                 a loud noise. Now for the first time, fresh
                                 water is produced from the sea at 2.8 kW/m3
                                 or 60 % less power – after 12 years
                                 development.
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     Pressure Exchanger development history
     Leif J. Hauge – November 2009


                                     USA / Spain 1998
                                     HOH Water Technology
                                     Canary Islands-Lanzarote

                                     After less than 6 months of flawless operation,
                                     HOH decided to launch the first commercial
                                     SWRO plant with pressure exchangers. The
                                     500 m3/D plant goes into service at Playa
                                     Blanca on Lanzarote early spring.

                                     At this time 3 pressure exchangers is needed
                                     as flow is limited to 30 GPM due to an
                                     excessive noise level.




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     Pressure Exchanger development history
     Leif J. Hauge – November 2009


                                     USA / Spain 1999
                                     Canary Islands-Lanzarote

                                     The ceramic components of the prototype in
                                     Ficus apartments show signs of inexplicable
                                     erosion. Experimental verification determines
                                     cavitation being the cause, and a major
                                     redesign of end covers take place.

                                     The result exceeds expectations as noise
                                     level fall from 90 to 80 dBa and flow increases
                                     100 % to 60 GPM.

                                     US patent # 6,540,487 “Pressure Exchanger
                                     with anti-cavitation pressure relief system in
                                     end covers “ is filed subsequently .

                                     Finally, the pressure exchanger looks ready for
                                     unrestrained marketing and scale-up………
15
     March 2000 - A company has been born
     Leif J. Hauge – November 2009




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