Moving from Nano-Ideas to Nanomanufacturing Alan Rae February 2008
Topics What s different in nanomanufacturing? Technology development and acquisition Commercialization issues Some examples of products developed at NanoDynamics
Premise 90% of what s involved in manufacturing and commercializing new nano products is the same as for any new products The other 10% can really trip you up
What s different? Different Processes and raw materials Product delivery Dry products vs dispersions Product use Transient vs permanent nanomaterials Thinking through lifecycle issues Perception - good, bad or indifferent The Same Most process equipment Economics Qualification times Need to fit to industry infrastructure Regulation The mechanics of bringing a product to market
Nano Inventions Come From Individual inventors Universities Govt. Labs Small companies Large companies Orphan projects that don t fit due to core competence, strategic decisions or size Challenge: Beware of products that are described as commercial You need product + process + customers!
The Valley of Death The inventor I have made a prototype once I have IP It has really interesting properties There is a potential market for it The customer I want a safe, reliable and economic solution that fits my need.
Why Commercialize Any Nanotechnology? Do you bring something other than money? Can you develop the discovery better than anyone else? Is this discovery unique and can it be protected by patents? Does the market really need this? Can you be the low cost producer? What s the product and how do you make it? Can you manufacture it economically? Does it fit the industry infrastructure?
The VC Reality Of 10 projects 5 will go belly up 3 will cover their costs 1 or 2 will pay for the effort And that is after a rigorous selection process (10 out of 1000 applicants) Note even range extension consumer products have only a 50% chance of success! One key lesson is not to invest in capital intensive processes or there is a high probability you will be severely burned
Financing Debt or equity Friends and family Banks Angel investors Venture capital funds Need a well thought out business plan Challenges Sizing the plant Staffing the plant Plant design Manufacturing permits
Acquiring the Rights Acquire a company Joint venture License Consultancy Research contract Technology on the hoof Every deal is different Price sunk investment Valuation is always difficult and contentious The wrong agreements can sink your business economics
Process and Product Development Be sure to fund enough runway time and resources A TOTALLY new invention usually takes about 15 years to revenue one that fits the infrastructure ~7 years MEMS 30 years to volume use in automotive Patent costs ~$25K domestic ~$100K international >$300K lifetime Invention is impossible to predict?...maybe. But product and process development can be managed Time, cost and market verification Gates/stages and phases (www.pdma.org) are effective and cost-effective Spiral development (repeated prototyping military) Use whatever tools are appropriate - e.g. Universities for R not D Understand Technology and Manufacturing Readiness Levels http://www.asc.nasa.gov/aboutus/trl-introduction.html http://www.ml.afrl.af.mil/mlm/about_manufacturing_readiness_levels.html Verify and re-verify market pull
Execution Use a phase and gate process or equivalent to Act as a checklist Act as a sanity check Is the development on track? Is the market still there? Are the costs in line? Do we have a product? Do we have a process? Your company needs Robust product Robust process Robust market plan Without a robust process, getting a manufactured product to market is more luck than skill
Do Only What You Can Do Best Know when to outsource R&D Testing and certification Export control, EPA. Manufacture Sales and Marketing Licensing Fulfilment Don t reinvent the wheel Exception stealth mode
Challenges Make sure your partners care that you exist small demanding customers are a pain in the neck! Your key ingredient will be unimportant to the producer You are often using it for an unintended purpose In most cases in nanomanufacturing we are using raw materials or equipment for an application that they really weren t designed for
Regulation MSDS always TSCA as appropriate REACH etc. in Europe Industry Specific RoHS, WEEE FIFRA UL, CE Follow developments closely State Federal International ISO TC229 Nanotechnologies
How We Work at NanoDynamics Match up an identified market need with a new technology being developed in our areas of competence University, inventor, other companies, internal Preferably the technology platform has multiple applications Silver printed electronics and biocides Ceramic membrane fuel cell and water treatment Ceramic foam body armor and water treatment Process intensification green chemical processing, food processing, biofuels, nanomaterial production Incubate the project through contract or internal funding Commercialize internally or externally Production partners with specific skills
Moving From Materials to Products We develop the materials and where it makes economic sense develop intermediates or final products
Manufacturing Development NanoDynamics personnel designed and oversaw construction of this 100 MTPA metals plant and an integrated fuel cell production facility Powder plant started with R&D scale system developed at Clarkson University; unit transferred to local contract manufacturer in 2006 Fuel cell manufacturing facility based on company research and process development
Engineering & Process Development Development, design, & construction of combustion reaction systems for production of carbon nanotubes Development and construction of process intensification rotary tube reactors for process efficiency improvements Fuel cell process and conditioning stations Modified CNC milling / lathe for production of nanometals and alloys
Revolution 50 fuel cells Fully integrated fuel cell team Specialty materials manufacture Cell and stack manufacturing Balance-of-plant design, sourcing & assembly Quality control High performance silver and copper powder Low cost carbon nanotube process High volume consumer metal-polymer golf ball Manufacturing Experience
EPIK Energy Solutions - joint venture formed in 2007 51% - NanoDynamics; 49% - Shell Technology Ventures Fund I Targeting applications in oil and gas exploration, production, processing and transmission. Initial projects: Nanocement custom-formulated for demanding applications strength, expansion, ductility Fluid filtration and remediation at wells and refineries High temperature & long life batteries for down-hole applications Nano-ceramic and polymer coatings to extend operating equipment life Nano-structured steel wire for a range of applications Nano-enabled fluorescing taggants additional tracer types Disruptive photovoltaic and thin film solar materials Using nanotechnology solutions developed for other industries, partnering with the oil and gas exploration and production supply chain
In summary Select the right projects Resource them properly Monitor their development rigorously Choose the right partners Execute carefully on manufacturing!