alchemy sought ways to change lead or iron into gold or ... · process is to increase greatly the...

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Business First civil engineers. Accoya, has been examined minutely and tested exhaustively by research institutes and found to meet the various claims made. Interestingly the world’s largest manufacturer of coatings, Netherlands based Akzo Nobel, is prepared to give a twelve year guarantee on its Sikkens range of paints when used on Accoya. Accsys’ business model is that of licensing its technology rather than producing product. “Our focus is to licence the technology to others all over the world” explains Paterson-Brown “thereby keeping ourselves to an asset-light model which is a high-margin generator. It also means that we’re not competing with potential customers, we’re not cannibalising the full scale of our market and we’re also achieving considerable scalability through local partners and licensees. We’re in conversation on five different continents in more than a dozen countries with local operators who will produce Accoya for their own markets and, in doing so, pay us licence fees and royalties on production.” Nevertheless, the company has built a fully operational technology demonstration plant in Arnhem, in the Netherlands, close to its R&D facilities and convenient for sales into western Europe. Building the plant took around a year and produc- tion began in March 2007. The initial capacity was 25,000m 3 but the company is using some recent Euronext funding to double that principally, according to Paterson-Brown, to provide pipeline capacity to licensees while they build new facilities. However, interest in developing new uses for Accoya has led to increasing demand which Titan Wood can also meet using this increased capacity. Accoya replaces steel Although Accoya isn’t available at your local DIY store the UK’s largest sawmilling company, BSW Timber, has taken it on and sells it through a number of specialist joineries and timber merchants. One of the first direct public uses of it has been as cladding for an architect-designed house in Fife but a more spectacular proposed application is in constructing two bridges at Sneek, in the Netherlands. The idea of building heavy traffic road bridges mainly out of wood seems extraordinary and it’s an indication of confidence in the strength, stability and low maintenance requirements of Accoya that it was chosen. Despite being produced from relatively inexpensive wood Accoya isn’t cheap although Paterson-Brown points out, reasonably enough, that if you take into account the very low wastage that occurs with Accoya and allow for the durability and very low maintenance, Accoya’s costs are actually among the lowest over the life of a project. Thermoplastics, and in particular uPVC, have become ubiquitous in the construction industry and have severely damaged the traditional wooden window, door and cladding markets largely because of easy mechanical construction and low maintenance needs. However, quite apart from the dreary appearance they present there are wide concerns around environ- mental issues both as regards production and disposal with particularly strong local government opposition in the likes of the Netherlands, Germany and some Scandinavian countries. Accoya is, of course, simply wood and has far greater thermal resistivity than does PVC meaning that its use helps to keep buildings warmer in winter and cool- er in summer. Further, although the acetyla- tion process gives Accoya far more dura- bility than ordinary softwood it remains inflammable and non-toxic and so can be burnt at the end of its life or recycled. Worldwide market “We’ve concentrated on pointing out the quality of the product: that Accoya is the best wood you can buy for exterior applications, that it performs better than anything Class 1 in the wood industry” says Paterson-Brown “but we haven’t emphasised the environmental benefits. Sustainability is certainly increasingly important and our focus is very much on sustainable forestry, and certifications such as Forest Stewardship Council.” Considering merely the most appropriate uses for Accoya and taking a conservative view suggests that Accoya is competing in a market worth some 100bn although the complete wood industry is worth considerably more. Add in markets such as thermoplastics or metals where Accoya could become a replacement material and a serious rival to steel, and the potential market is huge. Accsys’ market cap has grown from an initial 50m three years ago to some 550m today and is likely to continue increasing given the significant global interest in licensing the technology. Paracelsus probably wouldn’t care much about the economics but, given his important place in the history of science and his interest in alchemy, would undoubtedly be hugely impressed at this modern transmutation of inexpensive and degradable softwoods into a material suitable for use in complex civil engineering projects and a serious rival to steel. “It may be an old process but our approach is a cutting-edge step change, really innovative technology” says Paterson-Brown. “It’s a first class product, environmentally friendly and there’s demand all over the world. All these things make it a really enjoyable company to develop. We’re having fun with it!” Business First The modern alchemist Hardwoods have been used for thousands of years as building and cladding materi- als. Earlier generations worked their way through ancient oak forests or stands of chestnut, beech or elm and shipped across the world vast quantities of exotic woods like teak or mahogany, valuing them for their beauty and their durability. Some of these sources have now vanished completely while others have become unsustainable at previous use levels. Hardwoods are expensive and increasingly scarce. Time to maturity is generally much longer than that of softwoods. Hardwoods are typically denser and heavier and so more costly to transport and to machine. For these reasons hardwood use has declined greatly. Softwoods have few of these disadvantages. They’re fast growing and can be managed easily like any other crop. The wood is generally easy to work and relatively cheap. Their major disadvantage, however, is being susceptible to decay. Softwoods used in construction invariably need to be protected in some manner, usually with a coating such as paint or varnish to protect them or through some toxic treat- ment which makes the wood unsuitable as a food source for micro-organisms. Softwoods also flex, expanding and contracting with the seasons, and so paint flakes off and maintenance of wooden window frames or doors becomes a continuing chore. Where woods are treated with toxic materials such CCA (chromated copper arsenate) or creosote there are potential health risks and the use of such treatments is increasingly banned across the world. “Today you have a very limited capability of using hardwoods for external commodity -based applications, such as windows, doors and cladding,” explains Willy Paterson-Brown, Executive Chairman of Accsys Technologies. “It’s expensive, supplies and quality are unreliable and there are issues around sustainability and environ- mental legislation. Softwoods used outdoors are prone to decay and have a limited life span.. There is strong demand for a reliable alternative.” Transmuting wood by acetylation Accsys, and its wholly owned subsidiary, Titan Wood, had for some time been researching wood preservation processes and had investigated modifying cellu- lose, the primary structural component of green plants including trees. Part of this work included looking at acetylation, a well established process. Acetylation turns the naturally occurring salicylic acid into aspirin, for instance, or mor- phine into heroin and is used in many other processes. The chemically functional group acetyl occurs naturally in many plant substances and the essence of the Accsys process is to increase greatly the acetyl content of the wood used. “Perhaps you left conkers in a glass of vinegar overnight to harden them.” says Paterson-Brown. “That’s a simple form of acetylation. Our innovation is the development of a complex technology that improves the performance of wood, turning a historically good idea into a commercially practical one, the economics of which are very, very exciting and profitable.” Wood cellulose has a large number of hydroxyl groups which adsorb and release water according to climatic conditions and are thought to be the sources of decay initiated through enzyme action. In the Accsys process the wood is brought into contact with pressurised and heated acetic anhydride, the condensation product of two molecules of acetic acid. The acetyl group bonds with the problematic free hydroxyl groups and increases significantly the acetyl content of the wood. For instance pine has an acetyl content of 2% and oak 4% whereas the percentage for acetylated wood is higher, sufficient to give it the best durability rating – Class 1. Changing the wood species “Fundamentally you change the core molecular structure of the wood during the process.” explains Paterson-Brown “You’ve effectively created a new wood species which we’ve named Accoya™. You take a piece of pine, for example, and modify it to a point where it will perform at least as well as the best tropical hard- woods. It has greater stability, durability, UV resistance and swelling and shrinkage are reduced by 75% or more so you get better coatings adhesion.” “The new structural stability means that you’ve literally changed a piece of fast growing, low cost, low quality wood into something that that can be guaranteed for a performance of more than fifty years. Moreover, the wood is modified right through the cross section, not just at the surface, and its quality can be measured after the process has taken place, providing additional quality assur- ance. The innovation here is that there’s a type of alchemy, both in performance quality and in the economics.” These are strong claims but Accsys is attracting significant support both from companies seeking to licence the technology across the world and from actual or potential users such as municipal and national governments, architects and Alchemy sought ways to change lead or iron into gold or silver and to find the mysterious elixir of life conferring longevity. Murdoch Mactaggart learns from a modern day Paracelsus how Accsys works its alchemical miracles on wood. Business First-PMM:Business First-PMM 26/11/07 11:11 Page 22

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Page 1: Alchemy sought ways to change lead or iron into gold or ... · process is to increase greatly the acetyl content of the wood used. “Perhaps you left conkers in a glass of vinegar

Business First

civil engineers. Accoya, has been examinedminutely and tested exhaustively byresearch institutes and found to meet thevarious claims made. Interestingly theworld’s largest manufacturer of coatings,Netherlands based Akzo Nobel, is preparedto give a twelve year guarantee on itsSikkens range of paints when used onAccoya.

Accsys’ business model is that of licensingits technology rather than producingproduct.

“Our focus is to licence the technology toothers all over the world” explainsPaterson-Brown “thereby keeping ourselves to an asset-light model which isa high-margin generator. It also meansthat we’re not competing with potentialcustomers, we’re not cannibalising thefull scale of our market and we’re alsoachieving considerable scalabilitythrough local partners and licensees.We’re in conversation on five different

continents in more than a dozen countrieswith local operators who will produceAccoya for their own markets and, indoing so, pay us licence fees and royaltieson production.”

Nevertheless, the company has built afully operational technology demonstrationplant in Arnhem, in the Netherlands,close to its R&D facilities and convenientfor sales into western Europe. Buildingthe plant took around a year and produc-tion began in March 2007. The initialcapacity was 25,000m3 but the companyis using some recent Euronext funding todouble that principally, according toPaterson-Brown, to provide pipeline

capacity to licensees while they build newfacilities. However, interest in developingnew uses for Accoya has led to increasingdemand which Titan Wood can also meetusing this increased capacity.

Accoya replaces steel

Although Accoya isn’t available at yourlocal DIY store the UK’s largestsawmilling company, BSW Timber, hastaken it on and sells it through a numberof specialist joineries and timber merchants. One of the first direct publicuses of it has been as cladding for anarchitect-designed house in Fife but amore spectacular proposed application isin constructing two bridges at Sneek, inthe Netherlands. The idea of buildingheavy traffic road bridges mainly out ofwood seems extraordinary and it’s anindication of confidence in the strength,stability and low maintenance requirementsof Accoya that it was chosen. Despitebeing produced from relatively inexpensive

wood Accoya isn’t cheap althoughPaterson-Brown points out, reasonablyenough, that if you take into account thevery low wastage that occurs with Accoyaand allow for the durability and very lowmaintenance, Accoya’s costs are actuallyamong the lowest over the life of a project.

Thermoplastics, and in particular uPVC,have become ubiquitous in the constructionindustry and have severely damaged thetraditional wooden window, door andcladding markets largely because of easymechanical construction and low maintenance needs. However, quite apartfrom the dreary appearance they presentthere are wide concerns around environ-

mental issues both as regards productionand disposal with particularly stronglocal government opposition in the likesof the Netherlands, Germany and someScandinavian countries.

Accoya is, of course, simply wood andhas far greater thermal resistivity thandoes PVC meaning that its use helps tokeep buildings warmer in winter and cool-er in summer. Further, although the acetyla-tion process gives Accoya far more dura-bility than ordinary softwood it remainsinflammable and non-toxic and so can beburnt at the end of its life or recycled.

Worldwide market

“We’ve concentrated on pointing out thequality of the product: that Accoya is thebest wood you can buy for exterior applications, that it performs better thananything Class 1 in the wood industry”says Paterson-Brown “but we haven’temphasised the environmental benefits.Sustainability is certainly increasinglyimportant and our focus is very much onsustainable forestry, and certificationssuch as Forest Stewardship Council.”

Considering merely the most appropriateuses for Accoya and taking a conservativeview suggests that Accoya is competingin a market worth some €100bn althoughthe complete wood industry is worthconsiderably more. Add in markets suchas thermoplastics or metals where Accoyacould become a replacement material anda serious rival to steel, and the potentialmarket is huge. Accsys’ market cap hasgrown from an initial €50m three yearsago to some €550m today and is likely tocontinue increasing given the significantglobal interest in licensing the technology.Paracelsus probably wouldn’t care muchabout the economics but, given hisimportant place in the history of scienceand his interest in alchemy, wouldundoubtedly be hugely impressed at thismodern transmutation of inexpensiveand degradable softwoods into a materialsuitable for use in complex civil engineeringprojects and a serious rival to steel.

“It may be an old process but ourapproach is a cutting-edge step change,really innovative technology” saysPaterson-Brown. “It’s a first class product,environmentally friendly and there’sdemand all over the world. All thesethings make it a really enjoyable companyto develop. We’re having fun with it!”

Business First

The modern alchemist

Hardwoods have been used for thousandsof years as building and cladding materi-als. Earlier generations worked their waythrough ancient oak forests or stands ofchestnut, beech or elm and shippedacross the world vast quantities of exoticwoods like teak or mahogany, valuingthem for their beauty and their durability.Some of these sources have now vanishedcompletely while others have becomeunsustainable at previous use levels.

Hardwoods are expensive and increasinglyscarce. Time to maturity is generallymuch longer than that of softwoods.Hardwoods are typically denser and heavierand so more costly to transport and tomachine. For these reasons hardwood usehas declined greatly.

Softwoods have few of these disadvantages.They’re fast growing and can be managedeasily like any other crop. The wood isgenerally easy to work and relativelycheap. Their major disadvantage, however,is being susceptible to decay. Softwoodsused in construction invariably need tobe protected in some manner, usuallywith a coating such as paint or varnish toprotect them or through some toxic treat-ment which makes the wood unsuitableas a food source for micro-organisms.

Softwoods also flex, expanding and contracting with the seasons, and sopaint flakes off and maintenance ofwooden window frames or doors becomesa continuing chore. Where woods aretreated with toxic materials such CCA(chromated copper arsenate) or creosotethere are potential health risks and the useof such treatments is increasingly bannedacross the world.

“Today you have a very limited capabilityof using hardwoods for external commodity-based applications, such as windows,doors and cladding,” explains WillyPaterson-Brown, Executive Chairman ofAccsys Technologies. “It’s expensive, suppliesand quality are unreliable and there areissues around sustainability and environ-mental legislation. Softwoods used outdoorsare prone to decay and have a limited life

span.. There is strong demand for a reliable alternative.”

Transmuting wood by acetylation

Accsys, and its wholly owned subsidiary,Titan Wood, had for some time beenresearching wood preservation processesand had investigated modifying cellu-lose, the primary structural componentof green plants including trees. Part ofthis work included looking at acetylation,a well established process. Acetylationturns the naturally occurring salicylicacid into aspirin, for instance, or mor-phine into heroin and is used in manyother processes.

The chemically functional group acetyloccurs naturally in many plant substances and the essence of the Accsysprocess is to increase greatly the acetylcontent of the wood used.

“Perhaps you left conkers in a glass ofvinegar overnight to harden them.” saysPaterson-Brown. “That’s a simple form ofacetylation. Our innovation is the development of a complex technologythat improves the performance of wood,

turning a historically good idea into acommercially practical one, the economicsof which are very, very exciting and profitable.”

Wood cellulose has a large number ofhydroxyl groups which adsorb and releasewater according to climatic conditions andare thought to be the sources of decay initiated through enzyme action. In theAccsys process the wood is brought intocontact with pressurised and heatedacetic anhydride, the condensation productof two molecules of acetic acid. Theacetyl group bonds with the problematicfree hydroxyl groups and increases significantly the acetyl content of thewood. For instance pine has an acetylcontent of 2% and oak 4% whereas thepercentage for acetylated wood is higher,sufficient to give it the best durability rating – Class 1.

Changing the wood species

“Fundamentally you change the coremolecular structure of the wood duringthe process.” explains Paterson-Brown“You’ve effectively created a new woodspecies which we’ve named Accoya™.You take a piece of pine, for example, andmodify it to a point where it will performat least as well as the best tropical hard-woods. It has greater stability, durability,UV resistance and swelling and shrinkageare reduced by 75% or more so you getbetter coatings adhesion.”

“The new structural stability means thatyou’ve literally changed a piece of fastgrowing, low cost, low quality wood intosomething that that can be guaranteedfor a performance of more than fiftyyears. Moreover, the wood is modifiedright through the cross section, not justat the surface, and its quality can bemeasured after the process has takenplace, providing additional quality assur-ance. The innovation here is that there’sa type of alchemy, both in performancequality and in the economics.”

These are strong claims but Accsys isattracting significant support both fromcompanies seeking to licence the technology across the world and fromactual or potential users such as municipaland national governments, architects and

Alchemy sought ways to change lead or iron into gold or silver and to find the mysteriouselixir of life conferring longevity. Murdoch Mactaggart learns from a modern day Paracelsushow Accsys works its alchemical miracles on wood.

Business First-PMM:Business First-PMM 26/11/07 11:11 Page 22