Physical Sciences Inc.20 New England Business CenterAndover, MA VG09- SmartGrid PSI and Smart Grid Presented by Mickey B. Frish Physical Sciences Inc. Andover, MA April 2009

Physical Sciences Inc. VG09-SmartGrid PSI is ….  A 35 year-old company of 180 talented scientists, engineers and administrative personnel  Headquartered in Andover, MA, with seven US satellite locations and three subsidiaries  A technologically diverse company with FY ’08 revenues of $40M  Employee-owned through an Employee Stock Ownership Trust

Physical Sciences Inc. VG09-SmartGrid-2 PSI Does …  Applied contract research for all major U.S. government agencies  Invent, develop, and apply leading edge technologies under contract (including significant SBIR funding) to both government and industry  Prototype product development, pre-manufacturing, and technology transition for industry and commercial applications  Limited production of special senors for: –improved processing efficiency –remote sensing –health and safety –quality control and improvement  Field test design and execution  Data and information analysis  Technology and product licensing to strategic partners and spin-outs

Physical Sciences Inc. VG09-SmartGrid-3 Industrial and Process Control Sensors  Optical sensors for industrial furnaces –Continuous, real-time measurements –CE and ATEX certified  Measure and control: –oxygen –carbon dioxide –temperature –etc.  Installed in: –power generation facilities –steel, aluminum and glass furnaces

Physical Sciences Inc. VG09-SmartGrid-4 Advanced Batteries  High power, 3D Lithium Ion batteries  Currently achieving 1000 mw/gm at 100 mW-hr/gm  Goals are 8500 mW/gm at 170 mW-hr/gm  Application to small, distributed sensors  Enables sensor communications

Physical Sciences Inc. VG09-SmartGrid-5 PSI and Smart Grid  What role has PSI played in Smart Grid? NONE  What role can PSI play in Smart Grid? –Independent test, demonstration, and evaluation coordination –Data interpretation and analysis –Development of algorithm capitalizing on networked sensors –Advanced sensor development –Energy conversion and storage expertise –Energy education

Physical Sciences Inc. VG09-SmartGrid-6 Adopting Smart Grid  Personal Perspective on Business Model: –Consumers and business must see payback for investment in new capabilities –If Smart Grid is intended to reduce power consumption while increasing reliability, show users the savings  Education –laws of energy conservation and transformation Example: Benefits of Energy- Efficient Lighting  Expected savings: ~ 10,000 kWh/month  What happened? –Less heat from efficient lighting balanced by increased use of electric heaters?