Compact Membrane Systems, Inc.
                                   325 Water Street, Wilmington, DE19804
                                 I) 999-7996 http^/www.compactmembrane.com
       DESCRIPTION OF THE TECHNOLOGY

With support from the Environmental Protection Agency's
(EPA) Small Business Innovation Research (SBIR) Pro-
gram and collaboration with major industrial gas compa-
nies and major diesel engine manufacturers, Compact
Membrane Systems, Inc. (CMS), has developed high gas
flux and chemically resistant  membranes. Membrane
module flux is sufficiently high that modules can  be
placed under the hood of diesel engines to produce nitro-
gen-enriched air (NEA) to reduce nitrogen oxide  (NOx)
emissions by 50 percent. Environmental regulations are
requiring major diesel engine NOx reductions in the 2006-
2007 time frame. CMS' membrane modules offer a timely
alternative to existing hot and corrosive exhaust gas re-
circulation technologies.

CMS membranes are ideally suited in that they can sim-
ply be placed between the diesel turbo charger/after cooler
and the engine. A small amount of oxygen-enriched air
permeates the membrane, leaving highpressure NEA be-
hind to be fed directly to the engine.

Using SBIR funds and, subsequently, collaborations with
an industrial gas partner and major diesel manufacturer,
CMS successfully has improved membrane performance
towards meeting flux, size, ruggedness, and power-con-
sumption needs. Multi-point operation  on commercial
large-size engines verified NO reduction  levels.  Mem-
brane performance was not affected during lengthy truck
tests. Simultaneous with 50 percent NOx reduction, mini-
mal changes in soot, particulate, hydrocarbons, or CO
emissions were observed.

       SIGNIFICANCE OF THE TECHNOLOGY

This NEA membrane technology is a broad new mem-
brane platform. The CMS NEA membrane technology
allows, for the first time, sufficient productivity for mo-
bile applications and an ability to supply low-cost nitro-
gen up to 93 percent NEA in small- and large-volume
applications. Costs are projected to be significantly less
than for other conventional forms of nitrogen enrichment
techniques (e.g., cryogenics, pressure swing absorption)
for both large and small facilities.

Diesel engines, which run with excess oxygen (run lean),
produce high levels of nitric oxide or NOx and particu-
late matter (PM). This excess NOx is a major limitation
to broad utilization of diesel engines and the associated
enhanced fuel economy of U.S. vehicles. The  EPA has
mandated that NO and PM emissions from diesel trucks
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be reduced by approximately 90 percent. Exhaust emis-
sions consisting of nitrogen oxide (NO) and small amounts
of nitrogen dioxide (NO2) from internal combustion en-
gines present a serious environmental problem. Although
the problem exists for both gasoline and diesel  engines,
    CMS' membrane system provides a clean, cool, high-productivity, low-cost system to supply NEA to reduce
    NOx emissions by 50 percent.
    Compared to the existing NOx reduction technology, exhaust gas recycle, CMS membranes are much
    cleaner, which should improve engine life, and they do not require cooling.
    In addition to diesel engines, the CMS system is ideally suited for retrofitting diesel generators for NOx
    reduction.
    The NOx reduction capability of CMS' membranes has been shown to be of value for engines (discussed
    above) and furnaces as well. This is timely with EPA regulations coming into force on electrical power
    plants and other large furnaces.

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                   This  1.9 L Lister Direct Injection engine, which operates
                   at 8 psi turbo boost and has an output of 35 Hp at 1,800
                   rpm (55 Hp at 3,000 rpm), uses one 6" x 20" cylindrical
                   membrane module to reduce NOX emissions by 50 percent
                   with no significant change in soot, particulate, hydrocarbon,
                   or CO emissions.
one-third of all NOx emissions in the Northeast United
States come from heavy-duty diesel truck engines.

Consumption of diesel fuel and gasoline have led to sig-
nificant dependence on foreign fuel and increased car-
bon dioxide emissions as well as the associated concern
for global warming. Diesel engines are  much more fuel
efficient than spark/gasoline engines, but diesel engines
produce high NOx emissions. Exhaust gas recycle, while
lowering NOx emissions by 50 percent, reduces engine
life and puts significant stress on the cooling system.

         COMMERCIALIZATION SUCCESS

CMS, working with  EPA SBIR funds and subsequently
with a large industrial gas partner, is focusing its activity
on two commercial areas. The first is on-road large-scale
diesel engines that require large NOx reductions as part
of the 2007 Tier III specifications  (several systems have
been installed on commercial diesel trucks over an ex-
tended time frame and performance has been verified).
The second area is retrofitting diesel generators to re-
duce NO  emissions.
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        AWARDS AND COMPANY HISTORY

          CMS received the Tibbetts Award for Out-
          standing Small Business in the State of Dela-
          ware in 1998 and 2000. The award is given
          by the Small Business Administration to firms
  jL     judged to exemplify the best in small busi-
          ness innovation and research.  Founded in
          1993, CMS has a growing patent portfolio due
to its successful track record of obtaining research grants.
CMS is a membrane technology company engaged in re-
search and development of fluoropolymer membranes and
thin films with exceptional gas transport properties and
chemical resistance.
EPA's Small Business Innovation Research (SBIR) Program was created to assist small businesses in
transforming innovative ideas into commercial products. The SBIR Program has two phases—Phase I is
the feasibility study to determine the validity of the proposed concept and Phase II is the development of
the technology or product proven feasible in Phase I. EPA also offers Phase II Options to accelerate the
commercialization of SBIR technologies and to complete EPA's Environmental Technology Verification
(ETV) Program. For more information about EPA's SBIR Program and the National Center for Environmental
Research, visit http://www.epa.gov/ncer/sbir.

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