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PermaFrost®: Improving Thermodynamic Performance in HVAC Systems

Executive Summary
Every HVAC system OEM (Original Equipment Manufacturer) recommends cleaning the outside of the coils to eliminate any
barriers to heat transfer. With PermaFrost®, we clean the system where technicians can’t -- on the inside – and we do it
while the system is running. Our patented surface chemical nanotechnology is a sustainable one-time treatment that lasts
for the useful life of whichever type of system it is installed in – DX, Chiller, Heat Pump, Cold Food, Ice Machines, or
Refrigerated Transport. It’s all just refrigeration to us.

PermaFrost® is a Nanotechnology that uses the patented Nucleo Molecular Regenerative (NMR) technology as its core
agent. When installed properly while the system is running (ensuring the right PermaFrost® product is matched with the right
refrigerant and refrigerant oil) and at the proper dosage, it is chemically impossible for PermaFrost® to cause any damage to
your equipment. It is completely safe. To prove it, the manufacturer, PowerTron Global (PTG), backs every piece of
equipment treated with a $1,000,000 equipment liability policy and a $2,000,000 loss of revenue policy. If PermaFrost® is
ever found to cause damage to any equipment, PTG will pay to have it repaired or replaced and will reimburse customers
for any verifiable loss of revenue. That said, in the 10 year history of the product, PTG has never had a claim against its
family of nine different PermaFrost® products.

When introduced into the low pressure side of a system, the product immediately goes to work dislodging the oil adhering to
the walls of the coils that is inhibiting thermodynamic performance (oil fouling) by breaking the Van der Waals forces holding
it in place. PermaFrost® then takes itself out of circulation by embedding into the microscopic lattice structure of the metal
coils and creating a nanomagnetic film, actually enhancing the conductivity of the metal and preventing oil from reattaching
to the coils ever again. The direct benefit of PermaFrost® is improved cooling performance which allows a system to achieve
set temperatures quicker thereby allowing it to shut off or throttle back. Measured very effectively right at the unit using
Delta-T or COP, this direct benefit is unaffected by building variables or other green initiatives like rooftop coatings, window
tinting, and lighting changes. The indirect benefits of the enhanced thermodynamic characteristics include reduced run time,
less kW hours used, less amp draw at the compressor, and longer equipment life.

PermaFrost® was introduced to the HVAC market in 2002 and has since built a customer base that includes such notable
customers as; Citibank, Bristol-Meyers Squibb, U.S. Air Force, Morgan Stanley, Jones Lang LaSalle, HSBC Bank,
Honeywell, McKinstry, Coca Cola, and many more. We now have more than 12,000 installations worldwide and we’re
growing fast. We sell lifetime system efficiency by permanently improving cooling performance – it’s that simple!

Other compelling “GREEN” benefits of PermaFrost® include:
   1) PermaFrost® saves up to 30% in energy use at the unit, providing a compelling ROI* measured in months, not years!
   2) PermaFrost® is sustainable – installed once; it permanently cures oil fouling and lasts for the life of the system.
   3) PermaFrost® is an innate, non-toxic product that won’t harm humans or the environment.
   4) PermaFrost® extends the life of HVAC equipment by 18-22%, lowering operations & maintenance and capital costs.
   5) PermaFrost® is endorsed by some of the largest and most recognizable mechanical firms in NYC and elsewhere.




                                                                                                                              1
PermaFrost®: The Details
The Challenge
Since the inception of metallurgy and mechanical devices, finding a way to effectively prevent friction has been a key
Heating, Ventilation, Air Conditioning and Refrigeration (HVAC/R) industry objective. Lubricants not only reduce friction,
they also prevent wear and tear of moving parts and help reduce heat buildup. As metals have become more sophisticated
over time and different alloys created, the demand for different types of lubricants has increased dramatically. Each of the
lubricant types (mineral oils, petroleum-based products, synthetic oils, and even animal fat-based oils) has had its share of
successes, failures, benefits and limitations.

Developing the correct lubricant for each particular HVAC/R application requires a detailed knowledge of the science of
tribology. Lubricants of today must last 10 to 15 years in a sealed compressor; resist break down and deterioration; and
remain absolutely free of moisture and humidity. Viscosity, thermal transfer ability, friction control, and system compatibility
are the main issues that must be overcome with the various types of refrigerant oils. Long gone are the days of a one-size-
fits-all type of refrigerant oil.

As important as oil is in refrigeration lubrication, according to the American Society of Heating, Refrigeration and Air
Conditioning Engineers (ASHRAE), American Heating and Refrigeration Institute (AHRI) and several Original Equipment
Manufacturers (OEM’s), it is a well documented fact that this same oil also migrates throughout the refrigeration system.
This migrated oil, known as oil fouling, coats the inside of the system and substantially reduces the efficiency of an HVAC/R
unit as the usage increases. Oil fouling is present in any system that uses refrigerant as a coolant and oil for lubrication,
which includes over 99% of the HVAC/R units in service today. Over the past many decades, OEM’s have used various
types of designs for compressors, oil and refrigerant separators, and complex filters to keep the oil from migrating into the
heat exchangers with mixed short-term results and the same eventual long-term results – oil fouling continues to degrade
HVAC/R system performance an average of 3-7% per year.

Because hot air runs to cold, the cold refrigerant in the coils of an HVAC system attracts the heat pulled into the system
from the surrounding air. The quicker the system absorbs room heat and dissipates it into the flowing refrigerant, the faster it
will achieve the desired ambient room temperature and the less time it will run. Better efficiency and shorter run times mean
the system uses less power. But because oil-fouling functions as an insulator, it impedes both the transfer of heat and flow
of refrigerant, much like cholesterol and plaque slow down the flow of blood through your veins.

The Solution
PTG’s patented PermaFrost® product with its Nucleo Molecular Regenerative (NMR) nanotechnology is far advanced from
the oil additives of the 1990’s, which everyone knows really didn’t work. Rather than just focusing on the surface lubrication
of metal components, PermaFrost® uses nanomagnetics to target the molecular structure of the metal itself in order to
improve efficiency and overall system performance. Despite this obvious difference, many HVAC/R skeptics still want to put
PermaFrost® into the category of “oil additive”. If anything, the product is more closely related to a conductive protective
metal coating. PTG actually calls it a “sustainable, one-time nanomagnetic surface chemical technology that uses the
refrigerant as a transport mechanism to carry the product throughout the system as quickly and efficiently as possible”. The
reason for this differentiation is that PermaFrost® does not alter the chemical properties of the refrigerant or the oil in any
way, nor does it remain primarily suspended in the oil or the refrigerant. The majority of the product actually lives inside the
metal and on its surface. To illustrate this point more clearly, if PermaFrost® is installed in a unit and allowed to work for at
least 60 days, the refrigerant can then be changed and/or the oil can be drained from the unit without affecting the products’
performance. In the case of a copy-cat oil additive, whenever the refrigerant is changed in a system or the oil is drained, the

                                                                                                                               2
oil additive is drained out with it and the system needs to be re-treated. Not with PermaFrost®. It is a one-time treatment that
lasts for the life of the system. Once it becomes part of the metal, it is there to stay. The only things that can dislodge
PermaFrost® are an acid burnout situation or extreme overheating of the system greater than twice the normal operating
temperature ranges.
Nanomagnetics is the Key to the Effectiveness of PermaFrost®
PermaFrost® is a complex thermodynamic enhancing surface technology that, once inside any HVAC/R system, takes an
innovative approach to directly solving the decade’s old problem of oil fouling. PermaFrost®, with its NMR nanotechnology,
is backed by four active patents. It has lubrication properties that are exponentially better than any refrigerant oil
recommended by the OEM’s. However, the key function that sets PermaFrost® apart from any past or current product in the
HVAC/R market space is that it stabilizes and passivates the metal it comes in contact with at a molecular level using
nanomagnetics, while at the same time, scrubbing away the insulating layer of oil where it is trapped in the dryer filter or
returned to the sump where it belongs.

All nine of the specially formulated PermaFrost® products shown below are nanomagnetic which allow them to interact with
metal surfaces. When introduced into a unit, the permeable yet extremely heavy and dense nanomagnetic PermaFrost®
molecules migrate throughout the system and penetrate the metals at the molecular level. Since metals exist as crystals,
each crystal is drawn to the other through electromagnetic energy creating the metal structure and surface. The space
between the crystals is called space lattice. This is where substantial energy of the metal exists. By being able to penetrate
and then passivate (stabilize) the space lattice, the patented NMR technology used in formulating PermaFrost® is able to
make heat directional. The product is able to attract and dissipate heat through the metal at a faster rate by forming thermo
conductive appendages called molecular fins.




                                                                                                                              3
The NMR technology in PermaFrost® is a sustainable process that improves cooling performance in all types of HVAC and
refrigeration systems (even new ones) by performing four main functions:
    -    It removes the insulating oil fouling barrier (see image below) within an HVAC/R system by breaking the Van der
         Waals forces (surface tension) forces holding the oil to the metal refrigerant tubing and then preventing any oil from
         ever reattaching to these same surfaces again. DX units reach set temperatures quicker and shut off for longer
         periods while chillers throttle back or unload more often, resulting in direct energy savings at the unit of 10-30%.
    -    The sustainable nanomagnetic properties of PermaFrost® actually improve the thermo conductivity of the metal
         surfaces themselves by penetrating and passivating the metal, resulting in the system running less
    -    It gains friction benefits through metal surface protection and preparation as opposed to reformulating or enhancing
         the lubricant itself – extending the useful life of the equipment
    -    PermaFrost® restores a system closer to its original S.E.E.R. rating and maintains it for a much longer period of
         time, saving 10-30% at the unit in energy use year after year resulting in an ROI of 24 months or less.
In systems with multiple compressors, PermaFrost® delivers improved cooling performance which enables the first
compressor to handle more of the heat load before the second compressor needs to engage. Common sense says that one
compressor costs less to run than two.




                                                                 _                                                _________________




SAFETY FIRST
Protecting our customers HVAC equipment is our top priority. We created nine different products to ensure compatibility
with the various types of seals, bearings, electrical coatings, refrigerants and refrigerant oils in use today. Some of the best
laboratories in the world attest to the fact that PermaFrost® is more compatible and safer than OEM recommended oils. It is
a proven, verified, and scientific fact that PermaFrost® WILL NOT harm HVAC equipment when installed properly. Because
of this fact and the confidence that comes with 10 years of successful performance in the field, PTG offers the following
protection plans to all of our customers. It’s the best way we know to eliminate any excuses for not installing PermaFrost®.

Powertron Global’s Three-Part Protection Plan for Customers

    1.   Powertron Global carries a $1,000,000 product liability policy to cover customer HVAC equipment repair or
         replacement in the event PermaFrost® causes harm to the same (a total of $2,000,000 in equipment replacement
         coverage per site). This puts to bed any worries about our product voiding any manufacturers warranty as our
         policy doesn’t just last for a few short years; we cover the equipment against damage caused by PermaFrost® for
         as long as the unit remains in operation.
                                                                                                                                 4
2.   As part of this same policy, Powertron global will also cover any potential loss of revenue or products for up to
         $2,000,000 that results from an HVAC outage directly attributable to PermaFrost®. Once again, this coverage lasts
         for the life of the system.
    3.   In addition to insurance coverage, Powertron Global also provides a Return-On-Investment (ROI) guarantee.
          Under this portion of the three-part protection plan, Powertron Global agrees to come back and retreat a system
          for free should the customer have to replace the coils, compressor, or condenser within one year of the initial
          PermaFrost® installation.

We carry this three-way protection plan as a way to transfer any perceived risk or concerns about the safety of our product
away from our customers onto PTG. That said, PTG is proud to say that not a single claim has been brought against our
policy in the product's 10-year history. This history now includes a portfolio of more than 12,000 installations worldwide.

The Powertron Global Guarantee
In any controlled pilot that Powertron Global undertakes, we guarantee our customers will see a 5% average improvement
in cooling performance in DX systems across a portfolio of units involved in a pilot. Because of the complexity involved, the
company guarantees 4% improvement in COP on any chiller unit involved in a pilot. If Powertron Global does not prove
these minimum levels of improvement, then the customer does not have to pay for the cost of the treatment.

The History of PermaFrost®
The concept of Polarized Refrigerant Oil Additive (PROA) technology was developed in the later 1980’s by Dr. C. H. Wilkins,
Dean of the Dept. of Metallurgy, University of Alabama and Dr. Charles Thompson, Retired Chemical Engineer, DuPont
Chemical and a Professor at the University of Alabama. They also named Mr. Jack Hammack as co-inventor and head of
marketing for the product. The team patented their air conditioning additive concept under US Patent 4,963,280 which
became known as the Wilkins & Thompson patent.

Though awarded their patent, there were numerous complications with the Wilkins & Thompson technology, including the
chemical structure itself. The product resulting from their manufacturing process consistently failed, never achieving the
desired results and even damaging compressors over a short period of time.

Due to the failure of the product and lack of sales, the partnership between Wilkins & Thompson dissolved in the early 90’s
and a subsequent lawsuit resulted in each party being awarded a third of the patent. The chief tribologist and lead chemist,
Dr. Charles Thompson, then moved to Houston, TX to take his share of the technology in a new direction. There he joined
forces with Mr. Tony Sgarbi, an oil industry expert who helped invent Dura Lube for NASCAR and Mobil 1 synthetic motor
oil. Sgarbi also had extensive chemical process manufacturing knowledge. Within a year, Sgarbi built a sophisticated
chemical separator and reactor that allowed him to finally make a viable end product that he called a PROA (Polarized
Refrigerant Oil Additive). With his secret discovery in hand, Sgarbi formed the Polar Shield Corporation.

As stated above, Sgarbi is credited as the person who finally developed the sophisticated set of processes and proper
chemical ratios that allowed the components to bond together and perform as originally envisioned in the Wilkins &
Thompson patent. Sgarbi still owns the trade secrets to the various manufacturing processes and is the person who first
named the Polar Shield product a PROA, trade marking it with the US Patent and Trademark Office (trademark serial
#76158191) so that any company claiming to sell a PROA is in direct infringement of this Trademark.



                                                                                                                           5
While others tried to copy his inventions, Sgarbi was still able to develop and maintain the best set of PROA products on the
market at the time. His PROA technology was tested by the Department of Energy (DOE) and approved under the Federal
Energy Management Program (FEMP). Since then there have been several companies that have tried to duplicate Sgarbi’s
PROA products without success. Although Wilkins & Thompson are deceased and the PROA patent is now expired and in
the public domain, it is of little value without the trade secrets that Sgarbi holds which are critical to the PROA manufacturing
process.

The Polar Shield PROA product performed very well until major changes in the HVAC industry were mandated by Congress
to comply with the 1992 Amendment of the Montreal Protocol Agreement which established a 25 year plan for completely
eliminating Chlorofluorocarbons (CFC) from HVAC systems. The new laws, enforced by the EPA under Title VI of the
Clean Air Act, required the ozone-depleting refrigerants be replaced with more ozone-friendly refrigerants. This series of
actions rendered Polar Shield incompatible and ineffective with many HVAC systems to the point that using a PROA today
is likely to harm the equipment. For example, if a PROA is installed in a system using R134A that has a leak it often turns
acidic and damages the equipment.

Knowing his second generation PROA was no longer the answer to solving the HVAC flaw, Tony Sgarbi went back into the
lab to totally redesign and perfect his refrigeration performance solution. His efforts resulted in four new patents in 2002
relating to processes and products under the new name of Nucleo Molecular Regenerative™ (NMR™) nanotechnology.
This NMR™ green nanotechnology is compatible with all of the new types of refrigerants (R134A, 404, 410, etc). Sgarbi
also used this patented breakthrough nanotechnology to develop several new products compatible with legacy systems and
the older refrigerants (R11, R12 and R22) that remain in service today.

As the HVAC industry continues the process of transitioning to the newer refrigerants and synthetic oils, it was obvious that
one product alone would not solve the chemical compatibility requirements needed to ensure safe performance across the
various equipment and refrigerants in the market today. Confident in the knowledge that he had the solution set for the vast
majority of these refrigerant scenarios, Scarbi decided to partner with two entrepreneurs with proven business and
marketing skills to form Powertron Global, LLC in 2002.

Fast forward to today and you’ll find Powertron Global’s current product line with the NMR™ nanotechnology is marketed
under the PermaFrost® name. There are nine different formulations of PermaFrost® designed to be compatible with the
various refrigerants, refrigerant oils, bearings, seals, and even electronic coatings.

Learn more about PermaFrost®
To find out more about PermaFrost® through dozens of detailed case studies, informational videos, and more, visit our
website at www.powertronglobal.com.




                                                                                                                               6

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Powertron global perma_frost_technical_description_and_history_2012

  • 1. PermaFrost®: Improving Thermodynamic Performance in HVAC Systems Executive Summary Every HVAC system OEM (Original Equipment Manufacturer) recommends cleaning the outside of the coils to eliminate any barriers to heat transfer. With PermaFrost®, we clean the system where technicians can’t -- on the inside – and we do it while the system is running. Our patented surface chemical nanotechnology is a sustainable one-time treatment that lasts for the useful life of whichever type of system it is installed in – DX, Chiller, Heat Pump, Cold Food, Ice Machines, or Refrigerated Transport. It’s all just refrigeration to us. PermaFrost® is a Nanotechnology that uses the patented Nucleo Molecular Regenerative (NMR) technology as its core agent. When installed properly while the system is running (ensuring the right PermaFrost® product is matched with the right refrigerant and refrigerant oil) and at the proper dosage, it is chemically impossible for PermaFrost® to cause any damage to your equipment. It is completely safe. To prove it, the manufacturer, PowerTron Global (PTG), backs every piece of equipment treated with a $1,000,000 equipment liability policy and a $2,000,000 loss of revenue policy. If PermaFrost® is ever found to cause damage to any equipment, PTG will pay to have it repaired or replaced and will reimburse customers for any verifiable loss of revenue. That said, in the 10 year history of the product, PTG has never had a claim against its family of nine different PermaFrost® products. When introduced into the low pressure side of a system, the product immediately goes to work dislodging the oil adhering to the walls of the coils that is inhibiting thermodynamic performance (oil fouling) by breaking the Van der Waals forces holding it in place. PermaFrost® then takes itself out of circulation by embedding into the microscopic lattice structure of the metal coils and creating a nanomagnetic film, actually enhancing the conductivity of the metal and preventing oil from reattaching to the coils ever again. The direct benefit of PermaFrost® is improved cooling performance which allows a system to achieve set temperatures quicker thereby allowing it to shut off or throttle back. Measured very effectively right at the unit using Delta-T or COP, this direct benefit is unaffected by building variables or other green initiatives like rooftop coatings, window tinting, and lighting changes. The indirect benefits of the enhanced thermodynamic characteristics include reduced run time, less kW hours used, less amp draw at the compressor, and longer equipment life. PermaFrost® was introduced to the HVAC market in 2002 and has since built a customer base that includes such notable customers as; Citibank, Bristol-Meyers Squibb, U.S. Air Force, Morgan Stanley, Jones Lang LaSalle, HSBC Bank, Honeywell, McKinstry, Coca Cola, and many more. We now have more than 12,000 installations worldwide and we’re growing fast. We sell lifetime system efficiency by permanently improving cooling performance – it’s that simple! Other compelling “GREEN” benefits of PermaFrost® include: 1) PermaFrost® saves up to 30% in energy use at the unit, providing a compelling ROI* measured in months, not years! 2) PermaFrost® is sustainable – installed once; it permanently cures oil fouling and lasts for the life of the system. 3) PermaFrost® is an innate, non-toxic product that won’t harm humans or the environment. 4) PermaFrost® extends the life of HVAC equipment by 18-22%, lowering operations & maintenance and capital costs. 5) PermaFrost® is endorsed by some of the largest and most recognizable mechanical firms in NYC and elsewhere. 1
  • 2. PermaFrost®: The Details The Challenge Since the inception of metallurgy and mechanical devices, finding a way to effectively prevent friction has been a key Heating, Ventilation, Air Conditioning and Refrigeration (HVAC/R) industry objective. Lubricants not only reduce friction, they also prevent wear and tear of moving parts and help reduce heat buildup. As metals have become more sophisticated over time and different alloys created, the demand for different types of lubricants has increased dramatically. Each of the lubricant types (mineral oils, petroleum-based products, synthetic oils, and even animal fat-based oils) has had its share of successes, failures, benefits and limitations. Developing the correct lubricant for each particular HVAC/R application requires a detailed knowledge of the science of tribology. Lubricants of today must last 10 to 15 years in a sealed compressor; resist break down and deterioration; and remain absolutely free of moisture and humidity. Viscosity, thermal transfer ability, friction control, and system compatibility are the main issues that must be overcome with the various types of refrigerant oils. Long gone are the days of a one-size- fits-all type of refrigerant oil. As important as oil is in refrigeration lubrication, according to the American Society of Heating, Refrigeration and Air Conditioning Engineers (ASHRAE), American Heating and Refrigeration Institute (AHRI) and several Original Equipment Manufacturers (OEM’s), it is a well documented fact that this same oil also migrates throughout the refrigeration system. This migrated oil, known as oil fouling, coats the inside of the system and substantially reduces the efficiency of an HVAC/R unit as the usage increases. Oil fouling is present in any system that uses refrigerant as a coolant and oil for lubrication, which includes over 99% of the HVAC/R units in service today. Over the past many decades, OEM’s have used various types of designs for compressors, oil and refrigerant separators, and complex filters to keep the oil from migrating into the heat exchangers with mixed short-term results and the same eventual long-term results – oil fouling continues to degrade HVAC/R system performance an average of 3-7% per year. Because hot air runs to cold, the cold refrigerant in the coils of an HVAC system attracts the heat pulled into the system from the surrounding air. The quicker the system absorbs room heat and dissipates it into the flowing refrigerant, the faster it will achieve the desired ambient room temperature and the less time it will run. Better efficiency and shorter run times mean the system uses less power. But because oil-fouling functions as an insulator, it impedes both the transfer of heat and flow of refrigerant, much like cholesterol and plaque slow down the flow of blood through your veins. The Solution PTG’s patented PermaFrost® product with its Nucleo Molecular Regenerative (NMR) nanotechnology is far advanced from the oil additives of the 1990’s, which everyone knows really didn’t work. Rather than just focusing on the surface lubrication of metal components, PermaFrost® uses nanomagnetics to target the molecular structure of the metal itself in order to improve efficiency and overall system performance. Despite this obvious difference, many HVAC/R skeptics still want to put PermaFrost® into the category of “oil additive”. If anything, the product is more closely related to a conductive protective metal coating. PTG actually calls it a “sustainable, one-time nanomagnetic surface chemical technology that uses the refrigerant as a transport mechanism to carry the product throughout the system as quickly and efficiently as possible”. The reason for this differentiation is that PermaFrost® does not alter the chemical properties of the refrigerant or the oil in any way, nor does it remain primarily suspended in the oil or the refrigerant. The majority of the product actually lives inside the metal and on its surface. To illustrate this point more clearly, if PermaFrost® is installed in a unit and allowed to work for at least 60 days, the refrigerant can then be changed and/or the oil can be drained from the unit without affecting the products’ performance. In the case of a copy-cat oil additive, whenever the refrigerant is changed in a system or the oil is drained, the 2
  • 3. oil additive is drained out with it and the system needs to be re-treated. Not with PermaFrost®. It is a one-time treatment that lasts for the life of the system. Once it becomes part of the metal, it is there to stay. The only things that can dislodge PermaFrost® are an acid burnout situation or extreme overheating of the system greater than twice the normal operating temperature ranges. Nanomagnetics is the Key to the Effectiveness of PermaFrost® PermaFrost® is a complex thermodynamic enhancing surface technology that, once inside any HVAC/R system, takes an innovative approach to directly solving the decade’s old problem of oil fouling. PermaFrost®, with its NMR nanotechnology, is backed by four active patents. It has lubrication properties that are exponentially better than any refrigerant oil recommended by the OEM’s. However, the key function that sets PermaFrost® apart from any past or current product in the HVAC/R market space is that it stabilizes and passivates the metal it comes in contact with at a molecular level using nanomagnetics, while at the same time, scrubbing away the insulating layer of oil where it is trapped in the dryer filter or returned to the sump where it belongs. All nine of the specially formulated PermaFrost® products shown below are nanomagnetic which allow them to interact with metal surfaces. When introduced into a unit, the permeable yet extremely heavy and dense nanomagnetic PermaFrost® molecules migrate throughout the system and penetrate the metals at the molecular level. Since metals exist as crystals, each crystal is drawn to the other through electromagnetic energy creating the metal structure and surface. The space between the crystals is called space lattice. This is where substantial energy of the metal exists. By being able to penetrate and then passivate (stabilize) the space lattice, the patented NMR technology used in formulating PermaFrost® is able to make heat directional. The product is able to attract and dissipate heat through the metal at a faster rate by forming thermo conductive appendages called molecular fins. 3
  • 4. The NMR technology in PermaFrost® is a sustainable process that improves cooling performance in all types of HVAC and refrigeration systems (even new ones) by performing four main functions: - It removes the insulating oil fouling barrier (see image below) within an HVAC/R system by breaking the Van der Waals forces (surface tension) forces holding the oil to the metal refrigerant tubing and then preventing any oil from ever reattaching to these same surfaces again. DX units reach set temperatures quicker and shut off for longer periods while chillers throttle back or unload more often, resulting in direct energy savings at the unit of 10-30%. - The sustainable nanomagnetic properties of PermaFrost® actually improve the thermo conductivity of the metal surfaces themselves by penetrating and passivating the metal, resulting in the system running less - It gains friction benefits through metal surface protection and preparation as opposed to reformulating or enhancing the lubricant itself – extending the useful life of the equipment - PermaFrost® restores a system closer to its original S.E.E.R. rating and maintains it for a much longer period of time, saving 10-30% at the unit in energy use year after year resulting in an ROI of 24 months or less. In systems with multiple compressors, PermaFrost® delivers improved cooling performance which enables the first compressor to handle more of the heat load before the second compressor needs to engage. Common sense says that one compressor costs less to run than two. _ _________________ SAFETY FIRST Protecting our customers HVAC equipment is our top priority. We created nine different products to ensure compatibility with the various types of seals, bearings, electrical coatings, refrigerants and refrigerant oils in use today. Some of the best laboratories in the world attest to the fact that PermaFrost® is more compatible and safer than OEM recommended oils. It is a proven, verified, and scientific fact that PermaFrost® WILL NOT harm HVAC equipment when installed properly. Because of this fact and the confidence that comes with 10 years of successful performance in the field, PTG offers the following protection plans to all of our customers. It’s the best way we know to eliminate any excuses for not installing PermaFrost®. Powertron Global’s Three-Part Protection Plan for Customers 1. Powertron Global carries a $1,000,000 product liability policy to cover customer HVAC equipment repair or replacement in the event PermaFrost® causes harm to the same (a total of $2,000,000 in equipment replacement coverage per site). This puts to bed any worries about our product voiding any manufacturers warranty as our policy doesn’t just last for a few short years; we cover the equipment against damage caused by PermaFrost® for as long as the unit remains in operation. 4
  • 5. 2. As part of this same policy, Powertron global will also cover any potential loss of revenue or products for up to $2,000,000 that results from an HVAC outage directly attributable to PermaFrost®. Once again, this coverage lasts for the life of the system. 3. In addition to insurance coverage, Powertron Global also provides a Return-On-Investment (ROI) guarantee. Under this portion of the three-part protection plan, Powertron Global agrees to come back and retreat a system for free should the customer have to replace the coils, compressor, or condenser within one year of the initial PermaFrost® installation. We carry this three-way protection plan as a way to transfer any perceived risk or concerns about the safety of our product away from our customers onto PTG. That said, PTG is proud to say that not a single claim has been brought against our policy in the product's 10-year history. This history now includes a portfolio of more than 12,000 installations worldwide. The Powertron Global Guarantee In any controlled pilot that Powertron Global undertakes, we guarantee our customers will see a 5% average improvement in cooling performance in DX systems across a portfolio of units involved in a pilot. Because of the complexity involved, the company guarantees 4% improvement in COP on any chiller unit involved in a pilot. If Powertron Global does not prove these minimum levels of improvement, then the customer does not have to pay for the cost of the treatment. The History of PermaFrost® The concept of Polarized Refrigerant Oil Additive (PROA) technology was developed in the later 1980’s by Dr. C. H. Wilkins, Dean of the Dept. of Metallurgy, University of Alabama and Dr. Charles Thompson, Retired Chemical Engineer, DuPont Chemical and a Professor at the University of Alabama. They also named Mr. Jack Hammack as co-inventor and head of marketing for the product. The team patented their air conditioning additive concept under US Patent 4,963,280 which became known as the Wilkins & Thompson patent. Though awarded their patent, there were numerous complications with the Wilkins & Thompson technology, including the chemical structure itself. The product resulting from their manufacturing process consistently failed, never achieving the desired results and even damaging compressors over a short period of time. Due to the failure of the product and lack of sales, the partnership between Wilkins & Thompson dissolved in the early 90’s and a subsequent lawsuit resulted in each party being awarded a third of the patent. The chief tribologist and lead chemist, Dr. Charles Thompson, then moved to Houston, TX to take his share of the technology in a new direction. There he joined forces with Mr. Tony Sgarbi, an oil industry expert who helped invent Dura Lube for NASCAR and Mobil 1 synthetic motor oil. Sgarbi also had extensive chemical process manufacturing knowledge. Within a year, Sgarbi built a sophisticated chemical separator and reactor that allowed him to finally make a viable end product that he called a PROA (Polarized Refrigerant Oil Additive). With his secret discovery in hand, Sgarbi formed the Polar Shield Corporation. As stated above, Sgarbi is credited as the person who finally developed the sophisticated set of processes and proper chemical ratios that allowed the components to bond together and perform as originally envisioned in the Wilkins & Thompson patent. Sgarbi still owns the trade secrets to the various manufacturing processes and is the person who first named the Polar Shield product a PROA, trade marking it with the US Patent and Trademark Office (trademark serial #76158191) so that any company claiming to sell a PROA is in direct infringement of this Trademark. 5
  • 6. While others tried to copy his inventions, Sgarbi was still able to develop and maintain the best set of PROA products on the market at the time. His PROA technology was tested by the Department of Energy (DOE) and approved under the Federal Energy Management Program (FEMP). Since then there have been several companies that have tried to duplicate Sgarbi’s PROA products without success. Although Wilkins & Thompson are deceased and the PROA patent is now expired and in the public domain, it is of little value without the trade secrets that Sgarbi holds which are critical to the PROA manufacturing process. The Polar Shield PROA product performed very well until major changes in the HVAC industry were mandated by Congress to comply with the 1992 Amendment of the Montreal Protocol Agreement which established a 25 year plan for completely eliminating Chlorofluorocarbons (CFC) from HVAC systems. The new laws, enforced by the EPA under Title VI of the Clean Air Act, required the ozone-depleting refrigerants be replaced with more ozone-friendly refrigerants. This series of actions rendered Polar Shield incompatible and ineffective with many HVAC systems to the point that using a PROA today is likely to harm the equipment. For example, if a PROA is installed in a system using R134A that has a leak it often turns acidic and damages the equipment. Knowing his second generation PROA was no longer the answer to solving the HVAC flaw, Tony Sgarbi went back into the lab to totally redesign and perfect his refrigeration performance solution. His efforts resulted in four new patents in 2002 relating to processes and products under the new name of Nucleo Molecular Regenerative™ (NMR™) nanotechnology. This NMR™ green nanotechnology is compatible with all of the new types of refrigerants (R134A, 404, 410, etc). Sgarbi also used this patented breakthrough nanotechnology to develop several new products compatible with legacy systems and the older refrigerants (R11, R12 and R22) that remain in service today. As the HVAC industry continues the process of transitioning to the newer refrigerants and synthetic oils, it was obvious that one product alone would not solve the chemical compatibility requirements needed to ensure safe performance across the various equipment and refrigerants in the market today. Confident in the knowledge that he had the solution set for the vast majority of these refrigerant scenarios, Scarbi decided to partner with two entrepreneurs with proven business and marketing skills to form Powertron Global, LLC in 2002. Fast forward to today and you’ll find Powertron Global’s current product line with the NMR™ nanotechnology is marketed under the PermaFrost® name. There are nine different formulations of PermaFrost® designed to be compatible with the various refrigerants, refrigerant oils, bearings, seals, and even electronic coatings. Learn more about PermaFrost® To find out more about PermaFrost® through dozens of detailed case studies, informational videos, and more, visit our website at www.powertronglobal.com. 6