The spin-off: the step from research to business.

Turcoiu, Titi ; Stanasila, Octavian ; Trifa, Gavril-Ioan 等

1. INTRODUCTION

Through its mission, a university must offer society members education, training and new knowledge. Access to information and knowledge, coupled with innovative, creative spirit of many of its members, especially young people, give the possibility to subscribe the way of becoming a knowledge-based society.

The increasing welfare of this society may become real only by infusion to knowledge, new products and services, technologies, know-how a.s.o results of creative human mind, research-development and innovative activities, all transferred in economical market.

The University POLITEHNICA of Bucharest (UPB) has 13 faculties, 4 departments, 38 research centers and, recently, 2 incubator centers (one of these is our incubator, named Technological and Business Incubator, CPRU-ITA, implemented in 2007) (Turcoiu, 2008b).

The UPB's research activity is funded around 100.000.000 Euro per year, from research-development agreements, research grants a.s.o. innovative activities. Most of this money is used for equipment acquisition, especially of IT, for human and material resources, costs of seminars, conferences, publications a.s.o. But we have one problem: what part of this sum is materialized in transferrable products, technologies and services to increase the welfare of society members? We think that only a small part of it!?

This is a reason for the Romanian Government to open a new financial program to increase economical competitiveness, through research competiveness, technological development and innovation, the operation: support for innovative start-up and spin-off (with Romanian coding: POSCCE- A2-O 2.3.12008), with a budget of 18.500.000 Euro.

2. THE SPIN-OFF ENTITY

As what we up asserted, only innovative companies are eligible for this program, recent setting up, with an activity of 1 to 3 years, named start-up, or what to set up in the same time to develop the financial project, named spin-off.

In conception of this financial program the spin-off is a new or formed by split from a larger one, such as a research group, research institute or, to set up and produce and market one's own results of research-development (Turcoiu, 2008a).

Our spin-off project was set up by three university professors, of course, from University POLITEHNICA of Bucharest, incubated in Technological and Business Incubator, CPRUITA, with recently own patent, emitted of Romanian National Office of Invention and Trade Marks (Stanasila, 1993; 2007). The spin-off project was named by acronym HYFETECH and was entitled: "Ecologic technology to produce of hydrogen".

The budget demanded of this project was of 150.000 Euro, and the duration will be of 15 months.

3. THE HYDROGEN TECHNICAL PROJECT

In the actual techniques, there are many industrial plants, research pilots or solutions to deoxidize the iron ores. The proposed technology, in this project of spin-off, entitled HYFETECH, is based on the treatment of the iron ore at about 5500C, with a gaseous reducer, furnished by a gas producer (from cellulosic residues) and on the iron / steam reaction in order to obtain pure hydrogen, equivalent to that from electrolysis. Usual iron ore under 150 [micro]m, not pelletized, descends in bulk in a reactor and is traversed by the reducing gas. The thermo chemical processes are intensified over 100 times, in comparison with the heat transfer in the case of pellets or balls. The hydrogen is obtained by temporary re-oxidation, with steam from common water, of the iron ore (reduced sufficiently), which subsequently is fully reduced to iron. The production of hydrogen is adjustable, the correlation being of about 1000 m3n [H.sub.2] [left and right arrow] 1 t Fe; the plant can yield only Fe, according to the market requirements.

Among the applications of iron powder: to yield special steels (avoiding the losses due to the oxidation of C and implicitly Fe), in pharmaceutical industry or even in sowing the oceans to increase in a controllable way the aquatic production of hydrogen is adjustable, the correlation being of about 1000 m3n [H.sub.2] [left and right arrow] 1 t Fe; the plant can yield only Fe, according to the market requirements.

Among the applications of iron powder: to yield special steels (avoiding the losses due to the oxidation of C and implicitly Fe), in pharmaceutical industry or even in sowing the oceans to increase in a controllable way the aquatic flora and fauna (with favorable consequences to diminish C[O.sub.2] in the terrestrial atmosphere); in what concerns the hydrogen applications, the main problem is the cost, reduction of which enlarging the applications in the industries of the artificial fuels, fertilizers or in green Energetic.

It is necessary to build a pilot with continuous operation, permitting the design of the further great industrial plants (the profit increasing with the capacity).

Innovative aspects of the technology of this spin-ff project:

--The technology exploits the direct contact between the gaseous redox agents and the iron ore, to make available the great surface of heat transfer of the small granules of ore.

--In the zone of de-oxidation, the reducing gas traverses alternately the bulk. This alternation reduces 5 to 6 times the temperature variation in the mass of ore, creating uniform processes.

--In the next zone, the partially reduced iron ore is traversed, alternately too, by the oxidizing agent (steam prepared in exterior) and one release clean hydrogen. Then, one completes the reduction of the iron ore.

--The technology does not use technical oxygen. Main advantages of the technology that sustain the production:

--The iron powder, practically without carbon, will be welcome in steelworks where the carbon must be extracted, by burning it and the iron with oxygen. For large productions, the iron powder can be briquetted, with no danger of pyrophoricity.

--The resulted iron powder is obtained at a cost price under 60% of that actual one and it can also answer to the exigencies of the pharmaceutical industry.

--The resulted hydrogen is clean, at a price under 70[euro] /1000 [m.sup.3.sub.n].

--The technology is highly ecological, since all the emissions are well neutralized and carbon dioxide is clean, that simplifying and cheapening the plant.

-Finally, the plants which apply the proposed technology are compact and reliable, at low costs of investment and operation.

4. THE HYDROGEN BUSINESS PROJECT

In order to create a business plan for one industrial installation that produces hydrogen after the HYFETECH technical project, we must consider one quantity of hydrogen and one quantity of pure iron.

All our calculation is done with [+ or -] 10 % error. For this business plan we consider one industrial installation that can produce 1 t / h (ton / hour) Fe (pure iron) + 500 m3n (normal cubic meter) / h (hour) H2 (hydrogen):

4.1 The investment expenses:

--the gas production 200.000 [euro]

--the reactor reducer 150.000 [euro]

--the de-carbonator 40.000 [euro]

--the hydrogen reactor 60.000 [euro]

- the design activity 30.000 [euro]

 Total 480.000 [euro]

At these expenses 150.000 [euro] must be added for the land (arrangement, the pipes, access way a.s.o.), the annexes, service location, fees a.s.o.

So, the TOTAL investment expenses add up to:

630.000 [euro].

4.2 Yearly operation expenses (with [+ or -] 10 % error)

--the pay off (in six years) 480.000 [euro] /6 = 80.000 [euro]

--the fuel (cellulosic residues), at 80 [euro]/ton, with one supplement of 30% for hydrogen obtaining (1,4 t fuel / 1 t Fe x 1.3 x 8000 h/year x 80 [euro]t) = 1.170.000 [euro]

--the superior to milling iron ore (1,7 t iron ore/1t Fe x 1,3 x 8000 h/year x 45 [euro]/t) = 800.000 [euro]

--the electric energy (60 kW x 8000 h/year x 0,1 [euro]/kwh) = 50.000 [euro]

--the maintenance and service (nearly 25% of pay off) = 20.000 [euro]

--the gross salaries (10 persons x 600 [euro]/month x 12 months = 75.000 [euro]

--the overhead (40% of maintenance and salaries) = 40.000 [euro]

--others = 165.000 [euro]

TOTAL yearly operation expenses : 2.400.000 [euro]

4.3 The yearly gross revenues

--hydrogen (500 [m.sup.3.sub.n] / h x 8000h/year x 250 [euro]/1000 [m.sup.3.sub.n]

--the current market price) = 1.000.000 [euro]

- iron powder (1 t/h x 8000 h/year x 350 [euro]/t) = 2.800.000 [euro]

--charcoal (20% of fuel with 90 [euro]/t) = 180.000 [euro]

--steam of drying process = 70.000 [euro]

TOTAL yearly gross revenues: 4.050.000 [euro]

4.4 Yearly net profit (with 19% income tax): (4.050.000 [euro]--2.400.0000 [euro]) x 0,81 = 1.336.500 [euro]

4.5 The pay off duration :

480.000 [euro] x 12 months / 1.336.500 [euro] = 4,3 months.

5. CONCLUSIONS

--The spin-off project HYFETECH constructing one pilot installation to produce hydrogen, using iron ore;

--The HYFETECH technology to produce hydrogen is an ecological technology;

--The hydrogen may be the main or secondary product;

--In the case when hydrogen is a secondary product, its price is very low (nearly 70[euro] /1000 [m.sup.3.sub.n]), practically for free;

--This type of research and project (spin-off) may be one great business, because for a large installation, for example one that produces 10t/h Fe and 5000 [m.sup.3.sub.n]/h [H.sub.2], the yearly net profit it is much more:

--the investment expenses are nearly 2.000.000 [euro]
--the yearly operation expenses are nearly 20.000.000 [euro]
--the yearly gross revenues are nearly 40.000.000 [euro]
--the yearly net profit is nearly 16.000.000 [euro]
And, of course,
--the pay off duration to reduce under 3 months

6. REFERENCES

Stanasila, C. (2007). Method and Installation to Produce Concomitantly Iron Powder and Cheap Clean Hydrogen. Romanian patent no.121605/28th December 2007

Stanasila,C. & Stanasila, O. (1993). Method and Installation to Produce the Hydrogen. Romanian patent no.106721/30th June 1993

Turcoiu, T.; Stanasila, O. & Mirea, A. (2009). Innovative Ideas in the Technological and Business Incubator of University "POLITEHNICA" of Bucharest. Proceedings of The 2nd International Conference,, Entrepreneurial, Innovation and Regional Development, Ketikidis, P. et. al. (Ed),pp 291-297, ISBN 978-960-89629-9-6, Thessaloniki, Greece, 24-25 April, 2009, City Sheffield Thessaloniki

Turcoiu, T. (2008a). HRTC-TBI: One Entity for to Intensify The Innovation and Technological Transfer, The 12th Symposium MATNANTECH-CEEX, Sinaia, Romania, 7-10 May, 2008

Turcoiu,T. (2008b). One Solution for to Intensify the Research-Development, Innovation and Technological Transfer Activities in Romanian Maritime Universities, Proceedings of IMLA 16th Conference on Marine Education and Training, Guldem, C(Ed.), pp 225-234,ISBN 978-975-441 256-, Izmir, Turkey, 14-17,October 2008, Dokuz Eylul Publication, Izmir