Tag Archives: INSCX

Nanocrystalline cellulose interview with Dr. Richard Berry of FPInnovations

Nanocrystalline cellulose (NCC) is one of the most searched items on this blog so it seemed like a good idea to send some questions about it to a Canadian company, FPInnovations, that has been a leader in  its development.  [Edited for typo, July 7, 2011] Dr. Richard Berry, program manager for FPInnovations very kindly answered. First a little biographical information,

Dr. Richard Berry is the manager of the FPInnovations Chemical Pulping Program and he has been the leader of the nanotechnology initiative at FPInnovations for the last several years. Dr. Berry is a key contributor to ArboraNano. His scientific accomplishments include work on the elimination of chlorinated dioxins and the development of a variety of bleaching technologies. Dr. Berry has overseen the industrial application of his numerous inventions. He is the author of more than eighty peer-reviewed publications and patents. The prestigious 2009 Nano-industry award from NanoQuébec was given to him for his exceptional contribution to the development of Nanocrystalline Cellulose. The initiatives Dr. Berry has spearheaded in recent years have allowed Canada to position itself as a world leader in the development of this new nanotechnology industry.

Now for the  interview:

Q: In light of the new Domtar-FPInnovations plant [mentioned here in my July 16, 2010 posting] which is going to be built in Windsor, Québec, could you tell me a little about nanocrystalline cellulose (NCC). I have looked at your information sheet which notes that cellulose is: milled then hydrolyzed with the NCC separated and concentrated so it can be treated chemically for new uses.  In layperson’s terms, what’s cellulose?

A:         Cellulose is the most abundant polymer on earth and is the major constituent of all plants; cotton is 100% cellulose. Cellulose is made of chains of glucose molecules and these arrange into amorphous (soft) and crystalline (hard) regions. These structures provide flexibility and strength respectively to the fibres that are made of cellulose.

The hard crystalline regions are separated from the soft amorphous regions in the process that we are using which also causes the separation of the crystallites in the crystalline regions. These crystallites are nanocrystalline cellulose and have a needle shape approximately 200nm in length and 10 nm in diameter

Q: What does hydrolyze mean, in simple terms?

A:         Hydrolyze in this process means that we break the bonds between the glucose molecules. This reaction occurs far more rapidly in the soft amorphous regions of the cellulose structure leaving the hard crystalline regions largely intact

Q: After [Edited for grammar, July 7, 2011] all this processing, do you have nanocrystalline cellulose and how would you describe what nanocrystalline cellulose is?

A:         The process is to produce nanocrystalline cellulose but many of the processing steps are to ensure that the process is closed cycle and that the acid used is recovered and that the dissolved glucose can be separated to make energy, ethanol or higher value chemical products.

Nanocrystalline cellulose is the basic physical building block of plants which therefore have used nanotechnology for eons. The crystallites are the reinforcement elements providing strength in wood, paper and fibres.

Q: Does the process use up the entire log or are parts of it left over? What happens to any leftover bits?

A:         We are starting from the bleached chemical pulp which is, to a large extent, cellulose. The left over bits have actually been processed as part of the chemical pulp mill processes. The acid used is recovered and reused and the sugars are converted into other products; in the demonstration plant they will be converted into biogas.

Q: I understand you won’t want to give away any competitive advantages but could you describe at least partially the sort of chemical processing involved for these new applications?

A:         In some applications, there is no processing needed at all. In other applications, the formulation used allows the NCC to be effective. In further applications, surface modification is required to maximize the properties.

Q: Is the new plant (Domtar-FPInnovations) meant to be used for producing nanocrystalline cellulose particles for shipment elsewhere? Or will there be work on applications using the nanoparticles? If so, on which application(s) are you concentrating your efforts?

A:         The plant presently is for producing various grades of nanocrystalline cellulose for shipment elsewhere. The applications are being developed with partners in the new industry sectors that we are targeting. Amongst others, we have partners for applications in coatings, films and textiles.

Q: Is FPInnovations involved with the ArboraNano Centre of Excellence programme and its efforts to encourage NCC use in industries not usually associated with forest products? What might involvement entail?

A:         FPInnovations is one of the founding members and had a significant role in setting up ArboraNano.  Our involvement presently is as a supplier of NCC through our pilot plant in Pointe Claire and as members of both the Scientific Committee and Board of Arboranano.

Q: Assuming FPInnovations is attending the 2010 TAPPI [International Conference on Nanotechnology for the Forest Product Industry] in Finland, can you give me a preview of the company’s proposed presentation(s) at the conference?

A:         Representatives of FPInnovations will be at the conference but our involvement will be limited because much of the material we have developed is proprietary to ourselves and to the partners that we have. Our focus at this stage is commercial development.

Q: What kind of research is being done on possible health, safety and environment issues with regard to NCC?

A:         From the very beginning of our project, 20% of our funding has been spent on these issues. We are glad to say that the research has shown that NCC is in the category of “practically non toxic”, and mammalian studies done to assess inhalation, ingestion and dermal risk have all shown the material to be in the lowest category of risk. These results show that the size of a particle is not a determinant of its risk but as with chemicals it is the specific material that is critical in determining toxicity.

Q: Are there plans, at some point in the future, to list NCC on Charles McGovern’s Integrated Nano-Science Commodities Exchange or will your product be listed on some other commodities exchange?

A:         We do not view NCC at the moment as a commodity; it is a very specialized group of materials. We hope it will take a long time before it becomes a commodity.

Thank you very much Dr. Berry.

On a related matter, I was fortunate enough to receive a copy of the documentation that the Canadian federal government provided in response to Member of Parliament, Peter Julian’s (NDP), question about nanotechnology funding from 2005/6 – 2008/9. The response from Natural Resources Canada highlighted funding provided to FPInnovations in fiscal year 2007/8 of $2,308,000 and in fiscal year 2008/9,  a further, $3,2570,000 for a total of $5,565,000. Natural Resources Canada did not fund any nanotechnology research in 2005/6 or 2006/7.

One final note, former president and chief executive officer of FPInnovations, Ian de la Roche, PhD, will be the keynote speaker at the 10th Pacific Rim Bio-Based Composites Symposium Oct. 5-8, 2010 in Banff, Alberta. (Thanks to Joel Burford at Alberta Innovates Technology Futures for the information.)

Update on INSCX (Integrated Nano-Science and Commodity Exchange)

They’ve been doing a lot of work on the INSCX (Integrated Nano-Science and Commodity Exchange)  since I interviewed the Chief Executive Officer, Charles McGovern this last May (part 1, part 2, part 3). The newly re-launched site features registration information (from the news release I received),

INSCX exchange is the world’s commodity market for trade in accredited, compliant and validated engineered nanomaterials. The exchange’s formal trade platform is scheduled for live launch first quarter 2011.

Registrations are currently being processed for organisations seeking to use exchange facilities.

Membership is defined into five categories;

Permit Holder:

Organisations seeking to supply and/or source engineered nanomaterials listed by the exchange. Permit Holder members are charged a once-off registration fee of GDP £550 to access exchange facilities. This category of membership will relate to commercial organisations active in the supply and/or purchase of materials for trade purposes.

Principal:

Organisations seeking to supply a materials specification for listing as a PCMS (Principal Materials Contract Specification) on the exchange. Principal memberships are set at GDP £5,000 per annum in addition to the registration fee. This category of membership will relate to commercial organisations active in the supply of materials for trade purposes.

Brokers:

Approved Commodity Brokerages accepted to provide agent execution and/or advisory services to customers of INSCX exchange. Broker memberships commence at GDP £10,000 per annum in addition to the registration fee.

Broker/Dealers:

Approved Securities & Commodity trading organisations accepted to act as agent and/or principal on behalf of customers of the exchange. This category of membership would be best suited to global investment banks active in the trading of commodities. Broker/Dealer memberships commence at GDP £25,000 per annum in addition to the registration fee.

Affiliate:

Category of membership reserved for institutes, insurance syndicates, professional organisations – accounting and law, and investment banks active in the research and/or provision of services to emerging nanobusiness. Affiliate memberships commence at GDP £2,500 per annum in addition to the registration fee.

I received this about the:  “summary guides  as to the exchange and a registration document “Web-PRQ” which needs to be completed by all market participants regardless of membership status” but I can’t find them on the website.  I didn’t spend a lot of time searching but did find a registration page here.

Interview with Charles McGovern, Chief Executive Officer, INSCX (part 3 of 3)

This is part 3 of Charles McGovern’s interview. I’ve copied the following paragraphs over from part 1 of the series.

I’ve been curious about the Integrated Nano-Science and Commodity Exchange (INSCX) since it was announced in February 2010 (first mentioned on this blog, Feb. 3, 2010) and on learning that the CEO (Chief Executive Officer), Charles McGovern, would be presenting at the Nano Materials 2010 Conference (June 8 – 10, 2010, London, England), I sent him a series of questions about this new exchange.  He very kindly answered my questions and supplemented them with more questions and answers for a comprehensive view of the proposed INSCX.

I am posting all my questions (italicized) and many of the additional questions in this series of interview postings. (The entire set of questions and answers will be available at the INSCX website prior to the Nano Materials conference in June.)

In the document I received from Charles, there is a legal disclaimer which I’m reproducing here,

This document reflects views held by INSCX exchange in response to questions posed by the interviewer. The replies should not be construed as a formal invitation to use engineered nanomaterials for the purposes of speculative investment. INSCX exchange is primarily a commercial exchange which permits non-commercial memberships for the purposes of agency broking and qualified speculative investment fully appreciative of risks to capital committed for such purposes. In addition the exchange expresses the view that comments other than those expressed herein listed in any published interview should be noted as attributable to observations expressed by the interviewer where appropriate.

So, here is part 3: the international scene, how INSCX is being funded, a  preview of Charles McGovern’s Nano Materials 2010 presentation, etc.,

Q: Are you expecting participation from countries outside the EU? If so, how have you prepared for that?

A: Yes we do expect and invite participation from outside the EU. INSCX will operate as a global market in the Asian, European and North American time zones. It follows therefore the exchange will ensure member compliance with both its own rules and regulations and whatever legislation and regulation is applicable in the countries where members supply and/or receive engineered nanomaterials. INSCX are  obligated to ensure member and customer compliance with existing and future national and international regulations pertaining to the manufacture, use, application and/or exchange of engineered nanomaterials. This compliance apart from being a commercial necessity for any industry expecting capital support to drive supply capacity and demand is also law.

Q: Can you tell me something about or offer a preview of the topic for the speech you will deliver as a keynote speaker at the NanoMaterials 2010 event?

A: The conference organised by IntertechPIRA and NanoCentral is a welcome development in the interests of furthering commercial discussions to explore how best to pursue the safe, beneficial and profitable commercialisation of nanomaterials. The exchange has been invited to address the conference alongside institutions such as Lloyds of London, Cranfield University, Cientifica not to mention corporations of the caliber of Intel and Bayer to name but a few. We are also aware and supportive of the approach adopted in Canada and Australia in addition to the work of platforms such as Minam and NANOfutures. These are collectively very encouraging developments warranting universal industry collaboration.

We already have developed working relations with many of the attendees to NanoMaterials2010 and are keen to explore how best the exchange can drive increased trade flows across engineered nanomaterials. The wider nanobusiness community should be encouraged by the development, as within the body of speakers represents both expertise in nanoscience and commerce. The uniting of both science and business can only be positive for the wider development of the industry. Outside of the EU we are also well aware of similar encouraging developments in the United States and Asia.

As regards our own presentation, this will focus on the commercial merits of the exchange project to suppliers and users of nanomaterials in addition to highlighting regulatory benefit and our efforts to create capital frameworks of excellence to support and nurture emerging nanobusiness on a global scale.

Q: Capital networks of excellence?

A: Capital in our view needs to support nanoscience and nanotechnology, and let’s not forget the broad technology offers investors a lifeline to achieve sustainable returns through the structured investment of risk capital. We fully believe capital can brought to bear to support nanobusiness provided we as an industry act now to put our own house in order. Self‐regulation is the first of many steps we should take. No‐one needs to convince the exchange as to the potential of the industry, and without revealing too much at this stage, a great deal of behind‐the‐scenes effort which already involves the exchange and participants disposed to the workings of Wall Street and the City of London are underway to convince the global capital market to rally to the support of the fledgling industry. More will become apparent as we progress in due course.

Q: I noticed that you have a number of speaking engagements planned for May. Is this for raising awareness or for raising funds?

A: Yes our speaking schedule is busy at present and we have made several presentations thus far both in private within the City of London and to the recent Royal Society UK‐Russia collaborations seminar. Our engagements relate to explaining to the nanocommunity the reasons why it needs the exchange and are

not part of any internal fund‐raising exercise. We are involved with the Scotland based Institute of Nanotechnology and the British Chamber of Commerce to discuss a variety of relevant topics. A more intense schedule of commercial engagements is earmarked in the run up to formal launch of the exchange trading platform both within the UK and overseas particularly within the financial markets of the United States and Asia.

Q: How is a commodity exchange funded?

A: All of the world’s commodity exchanges are managed by commercial corporations. These exchanges are funded in the normal way through capital investment, whether public or private equity and are sustained by deriving revenue through levying exchange clearing and member fees. INSCX exchange has acquired the resource to deliver by first quarter 2011 the world’s first dedicated commodity exchange platform for engineered nanomaterials and the capacity to set industrial specifications for trade. The exchange when it is ready will follow a formal IPO route. In the interim we will be sustained through clearing and member fess derived from increased trade flows across engineered nanomaterials in the same manner as traditional commodity exchanges are.

Q: I noticed that you’ve started a business called Nano Capital Markets, which is related to and in addition to the exchange? Can you explain the relationship? Plus, I notice there’s mention of Assured Nano which applies some sort of vetting process for the INSCX. Is this agency at arms‐length or is this another venture of yours?

A: Firstly, we need to separate AssuredNano from Nano Capital Markets. Nano Capital Markets (NCM) is the brokerage arm of NanoTech Partnership and the first appointed Broker/Dealer to the INSCX exchange. The role of NCM is to act as agent and principal to execute trade in listed instruments based on the physical supply of accredited and compliant engineered nanomaterials. As membership levels on INSCX from within the global securities and commodity industry increases, NCM will be one of a series of approved Broker/Dealers servicing customer requirements in the broad suite of raw materials. INSCX exchange does not trade, nor does any established commodity exchange trade for that matter, rather INSCX provides the facility for member firms of the exchange to trade. NCM is a wholly separate entity from INSCX exchange and will similar to any member of the exchange be held subject to exchange rules and regulations and any legislation governing the manufacture, use, application and/or exchange of engineered nanomaterials.

AssuredNano are wholly independent from both NCM and INSCX exchange and not another business venture as has been suggested. The role of AssuredNano is to coordinate the accreditation of all supply onto the marketplace using standards of evaluation set by AssuredNano itself. AssuredNano offers, for the first time, a way for responsible manufacturers to address nanomaterial SHE concerns based upon the use of good current practice. In so doing it provides a demonstration to all stakeholders in nanomaterials and nanotechnology that SHE issues are being taken seriously and tackled responsibly and that the health and safety of people exposed to nanomaterials or nano‐enabled products will be ensured. Most importantly, AssuredNano is designed by industry experienced SHE experts to deliver a commonsense and realistic approach to nanomaterial SHE.

Q: Who controls INSCX?

A: INSCX exchange is to be managed by an independent Board of Governors elected from across expertise in nanoscience, specialist academic disciplines, the professions and the securities and commodity industry. The Honorary Chairman of the Board is a former head of international trading at the Wall Street investment house, PaineWebber who has decades long experience in the securities and commodity markets not to mention playing a pivitol role in developing momentum on Wall Street to use the fledgling NASDAQ market during the 1970s.

The Board also contains an elected representative who acts as a lead consultant on commodities to UNCTAD, another who is the current chair of nanotechnology at one of the world’s most respected business universities. The chair of the Board is the current CEO of NanoCentral, Assurednano are also represented as are specialist academic disciplines in applied mathematics and advanced computing. All Board members are not shareholders in the exchange operating company and are obligated to the exchange membership to ensure the exchange’s rules and regulations are adhered to. Another function of the Board is to further discussion within nanoindustry, industrial demand and national governments to develop further commercial cohesion.

Q: When is the exchange to launch?

A: Formal live trading launch is scheduled first quarter 2011. By June the exchange’s official website will be uploaded at www.inscx.com enabling users to register and to ensure compliance in legislation governing the manufacture, use, application and exchange of engineered nanomaterials. Membership is open to any global organisation that agrees to abide by exchange compliance rules, and dedicated Market Managers are set aside to help registrants regardless of fiscal size use the exchange and its extended networks of capital and business support excellence. INSCX is committed to enabling existing and emerging nanobusiness demonstrate to global capital its true economic value and societal potential and equally committed to ensuring capital is disposed to fully appreciate the significance of the generic fields of nanoscience and nanotechnology. We can only encourage our industry to become involved with the exchange project.

Q: Is there anything you’d like to add?

A: INSCX exchange offers a great deal of commercial flexibility necessary to drive trade flows across engineered nanomaterials and will on launch provide a fast, effective and transparent route to the international physical nanomaterials markets enabling the wider industry to grow reliant first and foremost on its own strengths.

Thank you Charles McGovern, CEO, INSCX.

Interview with Charles McGovern, Chief Executive Officer, INSCX (part 2 of 3)

This is part 2 of Charle’s McGovern’s interview. I’ve copied the following paragraphs over from part 1 of the series.

I’ve been curious about the Integrated Nano-Science and Commodity Exchange (INSCX) since it was announced in February 2010 (first mentioned on this blog, Feb. 3, 2010) and on learning that the CEO (Chief Executive Officer), Charles McGovern, would be presenting at the Nano Materials 2010 Conference (June 8 – 10, 2010, London, England), I sent him a series of questions about this new exchange.  He very kindly answered my questions and added more questions and answers for a comprehensive view of the proposed INSCX.

I am posting all my questions (italicized) and many of the additional questions in this series of interview postings. (The entire set of questions and answers will be available at the INSCX website prior to the Nano Materials conference in June.)

In the document I received from Charles, there is a legal disclaimer which I’m reproducing here,

This document reflects views held by INSCX exchange in response to questions posed by the interviewer. The replies should not be construed as a formal invitation to use engineered nanomaterials for the purposes of speculative investment. INSCX exchange is primarily a commercial exchange which permits non-commercial memberships for the purposes of agency broking and qualified speculative investment fully appreciative of risks to capital committed for such purposes. In addition the exchange expresses the view that comments other than those expressed herein listed in any published interview should be noted as attributable to observations expressed by the interviewer where appropriate.

So, here is Part 2:  self-regulation and paradigm shifts:

Q: What do you mean by Self‐Regulation?

A: All commodity exchanges have developed through a process of self‐regulation. National governments have never in the history of capitalism developed the industrial process of trade, using commodity exchanges. Rather they have encouraged interest in a given resource to first come together to agree working processes of trade using the commodity exchange methodology and then sought to develop a legislative framework based on the outcome. Self‐regulation is the process where trade Supplier, Purchaser and Investor have come together since the 16th century to agree standards and trade process across metals, grains, polymers, fibres, fuels, electricity and several other raw materials holding universal application across the world of global business. It is not a new concept in a business context, and certainly one nanoscience and nanotechnologies needs to embrace in the context of the raw nanomaterials base underpinning either.

Q: Commodity exchanges are regulated?

A: Yes primarily by those who participate using the commodity exchange in question in accordance with the respective exchange’s rules and regulations. Government in the context of financial regulation relates in the main toward ensuring the interests of private investment capital committed to speculative gain trading listed raw materials or commodities is safeguarded. Private capital being individual savings invested with mutual or specific commodity funds who in turn invest for return in commodities, or shares using individual savings. The New York Stock Exchange opened for business in the 1790’s, but the Securities and Exchange Commission did not materialise until the 1930s in the aftermath of the Great Depression where individuals had lost their savings in the 1929 crash. Similarly the US Congress created the Commodity Futures Trading Commission (CFTC) in 1974 as an independent agency with the mandate to regulate commodity futures and option markets in the United States, while the world had used commodity exchanges for centuries prior to this legal development.

Q: Will INSCX be regulated?

A: Yes INSCX will be regulated by its members as a commercial commodity exchange following the historical Self‐Regulatory approach. Self‐regulation is by definition much stronger than a reliance of formal legislation. Speculation on INSCX will only be permitted by qualified funds set aside solely for the purpose of speculation, to be used by professional investors who fully understand risk to investment capital, and not personal savings of individuals held in various investment funds which invest for gain in traditional listed commodities. INSCX will of course follow appropriate industry standards as established within the financial community, but is primarily a commercial as opposed to investment marketplace meeting the needs of trade interest in nanomaterials. The exchange will by definition also ensure member adherence to any formal legislation and regulations governing the manufacture, use, application and/or exchange of engineered nanomaterials. As global capital support for nanomaterials develops traction INSCX will move to structure the regulated listing of engineered nanomaterials as investment‐grade commodities in their own right. Progress toward investor acceptance of nanomaterials as investment-grade commodities can only develop gradually. INSCX as a commercial exchange initially is the point of departure toward that aim.

Q: Nanotechnology is not the new asbestos?

A: No‐one is saying that it is least of all INSCX exchange. What is being said it simply that it becomes easier for ill‐informed opinion to snipe at the wider industry when we ourselves fail to develop self‐regulatory frameworks, practically ignore government requests for collaboration, waste scarce capital convening talking to ourselves conferences whilst continuing to develop universal trade associations that are akin to having a coffee producer talking to a wheat farmer or a steel magnate in a practical commercial context. We need to accept a need for change as opposed to waiting for national governments to tell us we have to change, and adopt a maturity that can openly embrace criticism however genuine, ill‐informed or loaded against the development of the wider industry.

Q: Regulation is developing in nanoscience, how can INSCX help?

We are fully conscious of the economic infancy of nanoscience and nanotechnologies and applaud the efforts of nanobusiness, academia and regulators to date. The lack of an industrial self‐regulatory framework is a constructive criticism expressed in the common interest and should not be construed as a loaded side‐swipe. Bear in mind it took centuries for society to achieve the trade efficiencies we have today in the context of traditional materials and assessing our current industry situation in light of the historical fact is warranted. INSCX exchange is disposed to bring into being the missing component of selfregulation.

The exchange will reflect the interest of business engaged in the supply and use of engineered nanomaterials and is uniquely capable of reflecting business and capital concerns to government given the fact we have the input of expertise in nanoscience and capital investment within the ruling body of the exchange. All established commodity exchanges regularly liaise with national governments reflecting business concerns. Suppliers and Purchasers of engineered nanomaterials can use INSCX to present a unified and specific voice to national governments. The fact our interest in seeking to secure increased trade flows across engineered nanomaterials meets with the common shared interest our industry has with capital and national government, that being to ensure exploitation to benefit both commerce and society is a feature of all business.

No responsible industry has a commercial interest in pursuing a course of action which opens the door to the possibility of future legislative sanction arising from negligence or unsafe products. It is not a matter where nanoscience and nanotechnology can afford to pontificate any longer as to whether or not it should work with government, it is a necessity dictated through any sensible appreciation of commercial logic.

Q: Nanoscience and nanotechnologies will create a paradigm shift?

A: Yes neither the paradigm shift, nor the accelerating nature of nanoscience and nanotechnology cannot and is not being played down or ignored by the exchange. In fact the opposite is the case insofar as we understand the significance both in the context of science and more importantly as regards how the innovations can be structured to sustain commercial and societal benefit. INSCX is geared to encourage innovation fully appreciative of the radical nature of nanoscience and nanotechnology. The question is not will a paradigm happen, but when and how?

Q: How will INSCX solve the paradigm dilemma?

A: To assume INSCX exchange alone can solve the paradigm dilemma is to belittle the efforts of science and national governments who have grappled with the dilemma for the best part of a decade. How does society structure a technology that threatens to move in effect from the wheel to the jet engine to the space station in a decade never mind over a few centuries? How do we deal with issues such as molecular self‐assembly, the use of programmable matter, or at the more simple level with a throw‐away culture in society which is confronted by materials that have better wear, tear and abrasion qualities? These are all exciting developments of fundamental concern to more than just ourselves here at INSCX. What INSCX exchange can do is add another means for vested interests to assess and structure toward the inevitable paradigm shift.

Q: How can INSCX help?

A: In the first instance all business requires the scarce resource of capital, to further investment in plant capacity all the way to the product delivery to the shop counter. Capital reallocation is always a protracted process. Despite ambitious and inflated assumption to the contrary, world capital resource is acting out a watching brief toward nanoscience and nanotechnology. There has been selective as opposed to universal capital support, while most nanobusiness remains cash‐starved reliant on public as opposed to private sources of funding. Equally the industry has not reached a position where it can withstand the conditions of private capital investment as displayed by the IPO performance of many nanobusinesses throughout the past decade. There have been notable collapses and stock price performance has generally been discouraging. We personally believe nanobusiness is adopting too keen a disposition toward seeking third‐tier equity listings. This is not the way forward in our opinion, and actually not necessary, as there are other options which should be obvious to our industry.

The exchange process followed by INSCX will provide a basis for capital to first assess the merits of reallocation in favour of nanoscience and nanotechnologies by proving the fundamental economic value to attribute the raw nananomaterials base underpinning nanoscience and nanotechnologies. Secondly, the commodity exchange process will provide industrial demand with the opportunity to quantify the essential commercial variables of price, standard, supply and indemnification delivering into being an efficient process of global trade based on the increasing use of engineered nanomaterials. Increased demand and access to exchange facilities such as hedging, syndication of supply and trade finance will benefit nanoproducers. Thirdly, INSCX have contracted a leading global measurement and characterisation company to establish industrial standards in characterisation methodology and practice alongside industry and established links with ISO Committee 229 for the purposes of developing more uniform materials specifications. Finally, INSCX within the UK already work with DEFRA to deliver into being a working reporting structure similar to that employed by the US CFTC in the context of engineered nanomaterials. The reporting structure will enable market participants to trade anonymously with full provision for legislative inquiry when ordered in law to reveal counterparties to any trade executed on the exchange.

The cumulative effect will be to present a situation where capital reallocation and national governments can be disposed to structure the economic usefulness of innovation. The market process has been used as the core foundation through which society has sought to achieve an orderly transition from old to new  innovation all throughout economic history. INSCX exchange cannot alone solve the dilemma, it can provide a further basis to move toward a solution.

Tomorrow is part 3: the international scene, how INSCX is being funded, a preview of Charles’ Nano Materials 2010 presentation, and more.

Interview with Charles McGovern, Chief Executive Officer, INSCX (part 1 of 3)

I’ve been curious about the Integrated Nano-Science and Commodity Exchange (INSCX) since it was announced in February 2010 (first mentioned on this blog, Feb. 3, 2010) and on learning that the CEO (Chief Executive Officer), Charles McGovern, would be presenting at the Nano Materials 2010 Conference (June 8 – 10, 2010, London, England), I sent him a series of questions about this new exchange.  He very kindly answered those questions and added more questions and answers for a comprehensive view of the proposed INSCX.

I am posting all my questions (italicized) and many of the additional questions in this series of interview postings. (The entire set of questions and answers will be available at the INSCX website prior to the Nano Materials conference in June.)

In the document I received from Charles, there is a legal disclaimer which I’m reproducing here,

This document reflects views held by INSCX exchange in response to questions posed by the interviewer. The replies should not be construed as a formal invitation to use engineered nanomaterials for the purposes of speculative investment. INSCX exchange is primarily a commercial exchange which permits non-commercial memberships for the purposes of agency broking and qualified speculative investment fully appreciative of risks to capital committed for such purposes. In addition the exchange expresses the view that comments other than those expressed herein listed in any published interview should be noted as attributable to observations expressed by the interviewer where appropriate.

So, here is Part 1 (this part is a primer for someone like me, someone who doesn’t know much about commodity exchanges):

Q: I have a nebulous understanding of commodities exchanges. Could you explain the purpose of a commodity exchange and how it differs from a stock exchange?

A: The fundamental difference between a stock and a commodity exchange relates primarily to what is permitted for trade. A stock exchange such as the New York Stock Exchange (NYSE) facilitates trade in equity, shares of listed corporations such as IBM, whereas a commodity exchange, the Chicago Mercantile Exchange (CME) for example, facilitates trade in commodities, fuels, grains, agricultural produce and so forth.

Q: Why a Nano Commodity Exchange now?

A: The answer relates to what engineered nanomaterials are, and the role commodity exchanges play in the business world. We have filed intellectual property to create a commodity exchange dedicated to facilitate trade in accredited materials derived in whole or in part from application of nanoscience and nanotechnologies.

Nanomaterials, while being precision engineered, are nonetheless in a commercial context raw materials, in much the same context as Crude oil, wheat or metals are raw materials used to manufacture, or refine fuels, flour, or base metals used across many sectors of industry. Many commentators have trumpeted the commercial potential of nanoscience and nanotechnologies, but few have focused on what global business actually needs to make industrial use the technology platform a commercial reality.

Q: What do you mean by a Commercial Reality?

A: There is no doubt that nanoscience and nanotechnologies are finding applications in today’s business world, but in a fragmented manner which threatens commercial sustainability of individual and collective nano‐business models. Common sense dictates that nanomaterials being the raw materials base of nanoscience and nanotechnology are regarded for what they are, namely raw materials used to further process toward application and/or product and not something because of scientific nomenclature that remains beyond the comprehension of global business leaders. Wonder solutions are nothing new in the business world, what translates wonder to commercial fact, i.e. world industry actually using the wonder solution as opposed to viewing with mere incredulity and of late some annoyance, is how a trading model can operate to use the wonder solution to make commercial progress whilst also serving to sustain any business model engaged in the supply of the wonder resource.

Q: What relevance then is a Commodity Exchange?

A: The role of any commodity exchange is to structure the trade process to facilitate the allocation of competing interest across resources and materials, raw materials or commodities to use the more general term.

Q: What is the business relevance of a commodity exchange?

A: The relevance of the commodity exchange is nothing new. Since the 16th century business has used the methodology of a commodity market to structure the trade processes in raw materials, whether it be metals, oils, grains or products. Industrial suppliers and purchasers of commodities use these exchanges to quantify price, material standard, indemnity and supply capacity, while national governments rely on these self‐regulating markets to shape legislation and supervise national interests in the allocation of raw materials resource. Capital investment bases its perception of risk/reward afforded any economic sector on first establishing the variables of price, supply capacity, indemnity and standard associated with the suite of raw materials any economic sector relies on to further manufacture toward application and/or end‐product. The methodology of a commodity exchange enables these competing interests to interact to ensure commercial cohesion.

Q: Can you provide an example?

A: Several could be provided. Imagine how the world economy would use grains, metals, oils or whatever without some organised process of trade? Imagine a giant such as Boeing continuing its commercial reliance on the raw material of aluminum in the absence of a commodity exchange where the raw material traded openly? A simple example to illustrate the relevance of a commodity exchange would be to assess the relevance in a common business activity, say a transport company reliant on fuel, or a refining company reliant on Crude oil. How could a refining company manage its affairs with cohesion if it could not quantify the commercial variables or price, standard, supply capacity or indemnification associated with Crude oil? Equally, how much would a transport company, reliant on say diesel fuel, a derivative of Crude oil, price a transport business model in a situation where no‐one could guarantee the quality, supply or price of either Crude oil or diesel? How would a capital lender or investor assess the commercial worth of either the transport business or the refinery, and more to the point what government reliant on Crude oil and transport to drive the economic progress of the economy could permit continuance of such as fragmented process or commercial interaction in the interests of sound economic management or societal benefit?

Q: Nanomaterials are different?

A: Exactly how are they different in a commercial context from any other raw material used in a process of manufacture, application or end product? Oil is a different raw material or commodity from wheat, electricity differs from metal, a carbon nanotube differs from Ti02, but all are raw materials used to make some application or product? Granted oil is refined into petrol whereas a Carbon nanotube is derived through CVD. Before the combustion engine arrived few outside of informed circles knew what refining meant as is the case now with CVD. The difference is I can call a broker to tell me the price of oil, I can source well over a hundred different grades if I so desire, the same for several metals or wheats and the exchanges where they trade ensures if I pay for something I am assured quality product, standard, indemnity, delivery whilst not having my business model held to the benign grace of a single supplier. I can also supply or source the material forward, unwind my currency exposure and access trade financing.

Within nanomaterials I cannot do any of this, as these facilities are provided through a commodity exchange, but yet as a business I am expected to transform my business model to rely of these as alternative raw materials. Nanomaterials may be unique, precision engineered enabling a host of applications but these attributes are of no benefit whatsoever if I cannot establish certain variables or adopt trade techniques using these materials to benefit my business model. I can satisfy all my requirements using traditional materials so why should I change to use a suite of materials where I have no assurances? These are often typical of the blunt arguments presented by the real business world when we suggest they consider the wider use of nanomaterials. Sooner rather than later we all need to listen to what exactly is being said instead of burying our heads in the proverbial sand of scientific wonder and wishful thinking.

Q: What is the solution?

A: Solutions in business are never easy. Nanoscience and nanotechnology can help itself to attract hard as opposed to soft investment capital. Our industry needs to develop self‐regulation as a cornerstone of its future development. By hard I mean hands‐on where commercial management deficiencies are addressed and solved so as to ensure commercial sustainability and return for medium to long term value investment. Science and research are vital components toward commercial and societal benefit, but science and research needs to deliver commercial results. Results mean sales, profits and investor returns not just promise of a return.

With all due respect to the scientific community, the art of selling or financial management are not component parts of the scientific curriculum, nor is the appreciation of capital investment. We have to play to collective strengths as investor tolerance of failed technologies has been stretched to breaking point through hard experience this past decade alone. In short we need to employ as many salespeople and investment professionals as we do scientists and researchers who can carry the message of nanoscience into the world of global capital while developing visibility in trade process to gain commercial traction.

Thank you Charles for taking the time to explain the basics of commodities exchanges and why the time is ripe for a nano materials commodity exchange  in such a clear way. Tomorrow there’s commentary on self-regulation and paradigm shifts.

Nanotechnology and site remediation; nano company gives aid to Haiti; nano commodity exchange; new Canadian photovoltaic research network; sensual nanotechnology

Tomorrow morning, Feb. 4, 2010, the Project on Emerging Nanotechnologies (PEN) will be webcasting an event titled, Contaminated Site Remediation: Are Nanomaterials the Answer? It starts at 9:30 am PST and the webcast can accessed from here.  Unfortunately I won’t be able to attend the live webcast but I will try to listen to it when they post the feed on their site a few days later. I did post more information, including a link to PEN’s site remediation map, about this event here.

More or less coincident with this event and on a somewhat related note, there is a donation from the company Nanoscale to relief efforts in Haiti. From the news item on Azonano,

NanoScale’s products and expertise in chemical and biological decontamination will provide protection and odor control to those most affected. NanoScale has donated NanoZorb®, a portable decomposition decontamination system based on products originally developed for U.S. military decontamination applications, to selected groups to aid their recovery efforts.

While it is likely as much a public relations effort as relief, bravo!

I’ve come across many comments as to how nanotechnology could be helpful to the environment but most of the examples I’ve seen are in the energy sector (i.e., ways nanotechnology-enabled products can reduce energy use). I’m hopeful these site remediation and decontamination nanotechnology efforts will be helpful and won’t become future problems.

There is a new commodities exchange on the horizon, Integrated Nano-Science Commodity Exchange (INSCX). From the news item on Nanowerk,

INSCX™ – Integrated Nano-Science Commodity Exchange, a patent-pending project to develop a global commodity exchange platform for trade in nano objects, materials and commodities, has formalised an agreement with AssuredNano™ [SHE] to co-ordinate the global accreditation of supply onto the market platform which is scheduled to launch in the UK early 2011.

AssuredNano™ is the premier Safety, Health and Environment (SHE) accreditation scheme for organisations producing nanomaterials, nano-enabled products and users of nanotechnology in general. It promotes the responsible and proactive application of nanomaterial SHE good current practice within the nanomaterials and nanotechnology community.

INSCX™, is designed to provide the “hub to the wheel of nanotechnologies” where the interests of business can co-exist with those of state governments, regional authorities, specialist agencies, research bodies, and consumer groups to deliver ethical and commercial cohesion across nanotechnologies.

I’m trying to figure out how AssuredNano can supply accreditation when there are no internationally accepted standard definitions for terms such as nanomaterials. (The International Standards Organization [ISO] has developed definitions but I have not seen any indication that they have been adopted as standards.) The AssuredNano site does not provide any details about their accreditation scheme, as you can see for yourself here. I hope to see more detailed information before the exhange starts in 2011.

As I noted earlier, most of the nanotechnology environmental news is focused on energy. Canada’s Natural Sciences and Engineering Research Council (NSERC) just this week announced the establishment of a new solar photovoltaic research network headquartered at McMaster University. From the news item on physorg.com,

The Natural Sciences and Engineering Research Council of Canada (NSERC) announced $5 million in funding today for the establishment of the NSERC Photovoltaic Innovation Network. The Network is comprised of 29 top scientists and engineers working in the field of advanced solar cell research at 13 universities across Canada. Eleven private sector companies are also part of the network.

The Network aims to raise the status of solar photovoltaics (PV) as a renewable energy option in Canada by accelerating research and development and commercializing the outcomes.

Now on a completely different note, the sensual side of nanotechnology. From the news item on Nanowerk,

Pin-sharp projections, light that’s whiter than white, varnishes that make sounds if the temperature changes: at nano tech 2010 in Tokyo, Fraunhofer researchers present nanotechnology that is a veritable feast for the senses.

A mystical glow emanates from the display case. A white light appears out of nowhere. And a light source is invisible – at least at first glance. Only upon close examination does the source of the apparently supernatural illumination become visible: a light diode, smaller than a pinhead, passes through thousands of infinitesimal lens structures measuring only a few hundred nanometers, et voilà: beaming white light.

Nanotechnology not only puts an entirely new dimension before the eye, it also makes audible things that no ear could ever perceive before: like changes in temperature. A new varnish developed by researchers at the Fraunhofer Institute for Engineering and Automation IPA ensures that surfaces emit sound if they become warmer or cool off. The trick: carbon nano-tubes embedded in the varnish that conduct electricity …

In addition to sight and sound, I have one more sense to cover, touch. From the news item, Multitouch ‘Skin’ Transforms Surfaces into Interactive Screens, on physorg.com,

The DISPLAX Multitouch Technology, believed to be the first of its kind, has been developed based on a transparent thinner-than-paper polymer film. When applied to glass, plastic or wood, the surface becomes interactive. Significantly, this new multitouch technology can be applied to standard LCD screens as well, making it an attractive choice for LCD manufacturers. The new technology will also be available for audiovisual integrators or gaming platforms to develop innovative products.

The DISPLAX Multitouch Technology dramatically extends the capabilities of the interactive format. It can be applied to flat or curved, opaque as well as transparent surfaces up to three metres across the diagonal. It is hyper sensitive, allowing users to interact with an enabled surface not just by touching it but, for the first time, by blowing on it, opening up new possibilities for future applications. Currently, the technology can detect up to 16 fingers on a 50-inch screen. The number of fingers detected is expected to increase as development progresses.

It may take a while before pure white light or varnish that you can hear comes to market but the multitouch ‘skin’ is here as a harbinger of what is to come. Offhand, I’m not sure I want to hear varnish. It seems to me that it would be like having an alarm that I can’t shut off  which means I could be confronted with any number of products that are emitting sounds because they are too hot or too cold or nearing the end of their product lives or, worse yet, malfunctioning.