Written evidence submitted by the Centre
for Process Innovation
1. The Centre for Process Innovation (CPI)
1.1 CPI is the Technology Innovation Centre (TIC)
that serves the process and chemistry using industries. It is
strongly focused on the "green" or "clean technology"
sector in its target markets of sustainable processing and printable
electronics. It works with public and private partners to develop
processes that drive the more efficient use and reuse of increasingly
scarce sustainable natural resources. More information about CPI
can be found in section 7 and at www.uk-cpi.com.
2. The significance of barriers or market
failures requiring the establishment of a Green Investment Bank
(GIB) and the risks of not getting this done quickly
2.1 There is a significant opportunity for the
UK to increase the availability of investment to businesses, particularly
start-ups and SMEs, that are developing innovative green technology.
Raising funds, both capital and revenue for this type of business
is very challenging in the current environment.
2.2 There is an appetite for green investment
opportunities, but many opportunities are at an early stage of
development and appear risky to the investment community, one
of the roles of a Green Investment Bank (GIB) would be to create
mechanisms that de-risk these investment opportunities.
2.3 CPI meets, creates and works with many innovative
green technology businesses that are seeking investment. If a
GIB is not created quickly many of these businesses will fail
or will move out of the UK to secure investment.
3. The objectives and roles the Green Investment
Bank should assume, the areas it should operate in and how its
lending and investment decisions should balance green benefits
against financial risks
3.1 CPI feels that a GIB would create benefit
if it were to focus on the development and funding of early stage
businesses between technology readiness levels 4 and 7.
3.2 A GIB could de-risk and support early stage
businesses to ensure that investment opportunities and technology
developments are being lost.
4. The Green Investment Bank's investment
priorities and whether and how the bank should support and foster
areas where the UK has emerging green technology strengths
4.1 There is an opportunity to create a partnership
between open access technology innovation centres (TICs), such
as the Centre for Process Innovation (CPI) and a GIB to work together
to de-risk early stage opportunities to create investable technical
and commercial cases.
4.2 CPI would support a role for a GIB that provides
early stage and follow-on finance for UK based technology development
businesses that have the technical and business skills to create
viable businesses.
4.3 To have greatest benefit a GIB should cover
the whole green technology sector with a particular emphasis on
technologies and businesses that reduce the use of natural resources,
either by using resource more efficiently or by using wastes as
part of the process.
4.4 The GIB's investment priorities should be
in sound technology and infrastructure that can economically satisfy
the UK's future needs. These priorities should include the priorities
of BIS and the Technology Strategy Board. CPI has a particular
interest in supporting industrial biotechnology, anaerobic digestion,
sustainable engineering, smart chemistry and printable electronics.
5. The funding and governance structures required
to create an effective and accountable body including the role
of green bonds
5.1 The most effective role for a GIB would be
to offer services and investment products that are not currently
available. In CPI's view support is most needed to cross the funding
gap between research and mainstream profitable businesses.
6. Summary
6.1 As the TIC supporting the process industries
CPI strongly supports the creation of a GIB and would be very
happy to work collaboratively with Government and the Investment
Community to create an innovative partnership between the finance
and technology communities that can de-risk early stage investment
opportunities to increase the success rates of early stage investments.
6.2 CPI also supports the development of an integrated
mechanism for public sector intervention that supports and nurtures
invention and the conversion of ideas into viable businesses.
This development of the existing mechanism would make funding
available to support research and discovery (through the Research
Councils), technology development and innovation (through the
Technology Strategy Board) and early stage finance (through a
Green Investment Bank). We feel a model of this type would increase
the success of public investment and create a public private partnership
that brings viable businesses to profitable commercial reality.
7. Introduction to the Centre for Process
Innovation
7.1 CPI is the Technology Innovation Centre (TIC)
that serves the process and chemistry using industries. It is
strongly focused on the "green" or "clean technology"
sector in its target markets of sustainable processing and printable
electronics. It works with public and private partners to develop
processes that drive the more efficient use and reuse of increasingly
scarce sustainable natural resources.
7.2 It does this by combining market knowledge
and technology understanding to develop and prototype products
and processes quickly and efficiently with minimal risk to its
public and private sector partners. The organisation supplies
its advanced manufacturing products and services internationally.
7.3 The company works in the innovation space
between the discovery of an idea and the delivery of a product
or service to the commercial market. In technology readiness levels
(TRL) CPI works from level 4 to level 7. The business model has
delivered substantial benefit because it links the needs of business
to CPI assets and technology expertise.
7.4 The CPI team has consistently delivered innovation
assets and leading edge development programmes on time and to
budget. In its six years of existence it has grown at over 60%
per year and now serves major clients such as Arup, Corus, Akzo
Nobel, Croda International, Ensus, DeLaRue, Dr Reddy's, Johnson
Matthey, Unilever and Thorn Lighting. It has an international
reputation in two main technology areas:
Advanced Manufacturing for the Process Industries
- Markets served include energy, high value chemicals, carbon
capture and pharmaceuticals. This business unit is home to the
National Industrial Biotechnology Facility and Anaerobic Digestion
Development Centre.
Printable Electronics - CPI targets barrier coatings,
advanced material deposition processes, printable electronic materials,
printable circuits for high resolution display and smart packaging
applications, solid state lighting and organic photovoltaics.
7.5 The CPI model has been developed and tested
to serve the process industries. It is currently also developing
innovation opportunities for a range of markets from high temperature
processing to zero carbon communities. The CPI approach can readily
be applied to set-up and grow technology innovation centres for
other market sectors that are of strategic importance to the UK.
15 October 2010
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