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A novel handheld, battery-operated THz Time Domain Spectrometer (TDS), the Micro-Z, is presented with early results for the development and application of real-time (500Hz) double transmission normal reflection measurements for standoff detection and identification of energetic materials. Discussion of unique challenges for handheld THz TDS will focus on factors including instrumental position drift, real-world sample geometries and operator handling. Performance limits of the new handheld system will be discussed using selected samples with absorption peak positions in the 0.1-1.5 THz range. Spectroscopic identification is performed without the use of sample references using standard correlation analysis techniques.