No Pane, No Gain
05-Nov-07
Swedish technology firm ChromoGenics has just taken on second round funding and already has the backing of both Volvo and DuPont. What is it that makes key industry players like these so keen to invest? A patented green technology – with far-reaching implications for energy consumption – is the answer. We spoke to company CEO, Bengt Åkerström.
Green is the philosophy defining our age. It dominates a global environmental agenda which is now driven by those five little letters, as well as recent Nobel prizewinner Al Gore’s soundbytes and advertising campaigns whose central propositions are no longer about price but about being, well, ‘Green’. Going green, being green, aspiring to be green – all represent major business opportunities. ChromoGenics is a Swedish firm employing what are termed electrochromic materials – which have an application for windows as well as eyewear (ski goggles, motorcycle helmet visors come to mind).
Now here’s the science bit: Chromogenics produce ultra-thin plastic foils, which are applied to glass or used as laminates between layers of glass and which in turn vary their degrees of darkness. The result? The amount of light and heat radiation that passes through them can be regulated by diff erent stimuli. Translated to a practical context, this means that when the foils are used in buildings and vehicles, the energy requirements for air conditioning can be majorly reduced. Cost savings may also be accrued in relation to lighting and heating.
This unique patented technology – recipient of the Most Promising Technology Award at this year’s Cleantech Forum XIII in Frankfurt – delivers markedly lower running costs for any parties involved in the construction, maintenance or upkeep of a modern building. The innovation chimes spectacularly with a global agenda dominated by issues surrounding the cost and supply of energy consumption.
In Europe alone between 1995 and 2003, energy consumption directly related to air conditioning rose by an average 17% per year. The rewards for manufacturers who can harness technology and deliver energy savings are likely to be spectacular.
The company’s CEO, Bengt Åkerström, is suitably bullish as he reflects on successful second round funding and a product that has the capacity to revolutionise energy consumption worldwide. He has every right to be. ChromoGenics’ technology directly addresses a market estimated to be worth $20bn by 2017. ‘Our company is based on 20 years of intensive research at the Ångström Laboratory, Uppsala University,’ says Åkerström, ‘the driving force of which is Professor Claes- Göran Granqvist. He claims to be the first person in the world to have used the term ‘smart windows’.’
As a trading entity, the company is relatively new. ChromoGenics was registered way back in 2003 for the purpose of storing intellectual rights and finally became operational on 1st January 05 when the founders left the university.
SMART WINDOWS TECHNOLOGY
What it is: Smart glass can allow users to control the amount of light and heat passing through: with the press of a button, it changes from clear to dark (as a pair of sunglasses), partially blocking light while maintaining a clear view of what lies behind the window. The use of smart glass can save costs for heating, air conditioning and lighting. Electrochromic smart glass also blocks most UV in both clear and dark states, thereby also reducing fabric fading.
Where does Åkerström fit into all this? Is he a scientist? Seemingly not, but his background is heavily marketing based and offers a glove-like fit for a company now in a hurry to fully exploit its impressive arsenal of technology. ‘I was bought in by one of the owners who wanted help to shape the organisation and to start commercial activities,’ he says. ‘The first thing we had to do was to find finance and I was helped in this by the chairman, who was majorly involved in the venture capital scene in Sweden.
‘We looked for industrial investors. Volvo were heavily involved in the transport sector and a producer of heavy vehicles. DuPont were already involved in the supply and manufacture of windows. They liked the technology. (The company is already involved in innovations with laminated safety glass). In each case, both companies offered good access to the market,’ says Åkerström.
He continues: ‘Back in November 05, we did our first financing to help us show we could build prototypes able to upscale to larger surfaces and volumes. With the latest funding we are able to invest further in production and increase the surface area we can work with further. Right now, we’re working with a surface area of about one square foot. With the new equipment we will be able to produce devices almost two square metres, but we need to go larger for really big buildings.
‘We can’t promise to fulfil the needs of industry for the next 20 years, so we need new equipment to help demo them and to show the material being used in real life situations and practical daily usage.’
He expects to be able to deliver a final product to market by 2010. ‘Next year we will have new equipment and will be able to put up demonstrations of our new technology and learn from seeing it in practical usage.’
One final round of funding is anticipated. ‘This will be around the end of 2008,’ says Åkerström. His ambitions for the company are varied and extensive: ‘Our technology is light in weight and easy to transport as opposed to large pieces of glass. We really want to take the technology so it becomes the standard technology for the future. The US is a key territory for us and we’re getting very positive feedback from there. According to a survey, we could look forward to the support of 80% of the building companies there.’
It seems what is termed an ‘electrochromic glazing’ process is hard to resist. Indeed, eminent scientist Stephen Selkowitz at the highly regarded Lawrence Berkeley National Laboratory in the US describes it as currently ‘the most promising switchable technology for use in buildings’.
What is Åkerström’s dream scenario for the company? ‘Our vision is to be the ice-breaker for this technology and to make it aff ordable for a mass market. Tje technology is already used in Maybach and Ferrari cars, which indicates the cost of it right now,’ he says. ‘Our intention is to break this technology into the mass market. We are also looking to grow substantial licensing businesses. We will also look at IP rights on a global basis. Finally, we will seek to develop our technology even further.’
He continues: ‘We have lots of interest from prospective customers. Our key market is windows because of the energy cost reductions we can offer. Our smart window technology can off er potential energy consumption savings of up to 50%.’ These figures are borne out by research at Lawrence Berkeley.
‘Depending on climate, the figure could be higher. In the Emirates it could be up to 70%,’ he says.
So. Exciting times for a relatively small company enjoying the traction benefits of association with global brands like Volvo and DuPont and a technology that is surely of its time.
Bengt Åkerström’s window on the future looks very bright indeed.
