November 2, 2011

Dear Readers,

already fitted your winter tires? – Not that we want to give you a bad conscience, but the question in itself shows just how much we take our cars for granted. However, while we are all familiar with the seasonal tire change, we are less aware of the ever increasing importance of nanotechnology in this context. You can find more on this topic in our feature on nanotechnology in cars. Read the interview with Dr. Jürgen Hofinger, CEO of our holding, Namos. We also talked with Lutz Bungeroth, CEO of Nanostart holding, ItN Nanovation, about why the company’s technology is held in such high esteem in the Middle East. Finally, we have a report on our visit to Rusnanotech in Moscow. You’ll find all of these featured in this newsletter.

We hope you enjoy reading it!

Yours sincerely,

Dr. Hans Joachim Duerr
Head of Corporate Communications

• “Our Filters Are Between 4 and 5 Times More Efficient than Conventional Water Filters” - An Interview with Lutz Bungeroth, CEO of ItN Nanovation AG
  In October, ItN Nanovation AG reported that the contracts for the joint venture in Saudi Arabia had been signed with Saudi partner Juffali and German industrial investors. The purpose of the planned joint venture is to distribute CFM systems, nanoceramic flat filters, as well as accessories in the Middle East and North Africa (“MENA region”). The region is one of the core markets for drinking water treatment. The products from the joint venture will be used particularly in pre-filtration for reverse osmosis to obtain drinking water. We spoke with Lutz Bungeroth, CEO of ItN Nanovation AG, about the use of the CFM technology in the MENA region >>

• From Transparent Solar Cells to Self-Repairing Paint Systems: Automotive Nanotechnologies
  Anyone buying a new mid-range car every few years will discover new fun features every time – many of them based on nanotechnology: Nano-impregnated upholstery, for example, allows liquids to roll off surfaces without leaving traces behind. Or the latest display technology, such as in the on-board computer or navigation system based on organic light-emitting diodes, or OLEDs, with sharper colors than ever before, which are even clearly legible in bright sunshine. This development is another success for nanotechnology >>

• More Time Needed than Originally Planned: “We Are Expecting Our First Customers Next Year” - Interview with Namos CEO, Dr. Jürgen Hofinger
  This year’s International Motor Show (IAA) once again demonstrated the speed with which developments in terms of safety, environmental compatibility and comfort are advancing thanks to nanotechnology. And this applies to both vehicle operation and manufacture. Namos GmbH, a Nanostart portfolio company, is in possession of a technology that can improve the catalytic converter production. We talked with Dr. Jürgen Hofinger, CEO of the Dresden-based company >>

• Nanostart at Rusnanotech 2011: “We are in exactly the right place”
  “As far as nanotechnology is concerned, there is a real spirit of impending change in Russia, and our expertise means that we are in exactly the right place here at the moment.” Marco Beckmann, CEO of Nanostart, ended his speech at this year’s Rusnanotech in Moscow with this conclusion >>

• Stopover at Nanostart AG: On their business trip around Europe the delegation from the Chinese nanotechnology stronghold of Suzhou visited Nanostart’s office in Frankfurt
  In late September, the Nanostart AG team welcomed a delegation from the Chinese technology stronghold of Suzhou at its offices in Frankfurt. The aim of the meeting with representatives of the Suzhou Industrial Park (SIP) and the Nanopolis nanotechnology center that is based there was to get to know each other and exchange ideas on potential future cooperation projects >>

• Press releases >>

• Upcoming events >>

“Our Filters Are Between 4 and 5 Times More Efficient than Conventional Water Filters”

In October, ItN Nanovation AG reported that the contracts for the joint venture in Saudi Arabia had been signed with Saudi partner Juffali and German industrial investors. The purpose of the planned joint venture is to distribute CFM systems, nanoceramic flat filters, as well as accessories in the Middle East and North Africa (“MENA region”). The region is one of the core markets for drinking water treatment. The products from the joint venture will be used particularly in pre-filtration for reverse osmosis to obtain drinking water. We spoke with Lutz Bungeroth, CEO of ItN Nanovation AG, about the use of the CFM technology in the MENA region.

Why is the Middle East and North Africa region a core market for drinking water treatment?

Bungeroth: With annual precipitation of around 100 millimeters, which is common in this region, there are virtually no natural surface waters such as lakes or rivers. Some 80% of drinking water in Saudi Arabia is obtained from fossil ground water, i. e. prehistoric groundwater supplies. The wells from which it is retrieved can be as far as 1,200 meters underground. This water requires treatment, as it is not of drinking water quality. The problem is exacerbated by fast population growth. However, the water supply is expected to last for approximately another 300 years.

Why in particular does the water have to be treated?

Bungeroth: It is important to know that the water contains a lot of salt, 50% as much salt as sea water. It is also very hot, approximately 45°C. The salts have to be removed. It is undrinkable in its original state. On the other hand, it is biologically dead, which means it does not contain bacteria, viruses or microorganisms that need to be eliminated.

What is the filtration procedure?

Bungeroth: Removing the salts in order to obtain drinking water consists of two stages. To begin with, the ground water is pre-filtered. The quality of the water is then brought up to drinking water standard by reverse osmosis. The membranes used for reverse osmosis are sensitive and very expensive. Their life cycles vary depending on the quality of the pre-filtrate. This is why the quality of the pre-filtration is particularly important. And that is where we come into the picture. Pre-filtration removes dissolved substances such as manganese and iron, in particular, sometimes even radium, from the water. We have developed not only the technology but also the processes required for this. The remaining dissolved salts are removed by reverse osmosis.

How exactly does ItN pre-filtration work?

Bungeroth: The manganese and iron ions are precipitated out as sludge using a precipitation reaction specially developed by us. This is then filtered off. Our patented nanoceramic flat filters, CFM systems, are used in this process. They replace both the simple sand filters and the polymer filters that were previously used for the pre-filtration. We demonstrated their efficiency in a 9-month pilot project on site. We are now reaping the rewards of our development work.

How did ItN convince the Saudi Arabian authorities of the technology? What are the advantages of CFM systems over sand and polymer filters?

Bungeroth: The pilot project impressively demonstrated to our partners and the responsible authorities that our technology is far superior to conventional polymer filters and, of course, the simple sand filters. The ceramic’s robustness enables it to defy the aggressive conditions created by salt and high temperatures. As a result, its lifetime far exceeds that of polymer filters. At the same time, our filters require less maintenance. For example, they can be back-flushed, which is not the case with other filters. All of this means that the specific efficiency of the membranes when used in practice is up to 4.5 times higher than that of the polymer membranes produced by renowned manufacturers that are currently in use. Not least, the excellent quality of the pre-filtrate also extends the life time and effectiveness of the reverse osmosis.

You have reported that official approvals are still required before the joint venture can be established. When do you expect to receive them?

Bungeroth: The Ministry of Water, which is responsible for the project, has already certified our process as a recognized method. The approval, which we expect to receive this year, is the equivalent of registering a business in Germany.

Thank you Mr. Bungeroth.

From Transparent Solar Cells to Self-Repairing Paint Systems: Automotive Nanotechnologies

Anyone buying a new mid-range car every few years will discover new fun features every time – many of them based on nanotechnology: Nano-impregnated upholstery, for example, allows liquids to roll off surfaces without leaving traces behind. Or the latest display technology, such as in the on-board computer or navigation system based on organic light-emitting diodes, or OLEDs, with sharper colors than ever before, which are even clearly legible in bright sunshine. This development is another success for nanotechnology.


Scratch-resistant and self-repairing paints

The same applies to the particularly high-quality paints, which often come at extra cost. After all, the shining outer surface, the clear coat, is enriched with miniscule quartz particles that enhance the paint’s scratch resistance. Thanks to sophisticated processing, paint specialists are able to disperse the particles homogeneously over the surface.

Scratch-resistant car paints have long been a dream, which has now at least partly come true. The next step in the future of nanotechnology is self-repairing systems that can even “heal” their own “wounds.” This is due to ceramic nanoparticles in connection with a flexible polymer matrix. This system can close at least those scratches that are not too deep.

Equally sophisticated are paints that adjust the coating’s reflective properties and heat absorption characteristics during times of strong sunshine in order to absorb less heat. This is easier on the air-conditioning system and saves fuel. Heat-reflective paints of this kind are already commercially available.


Nano fillers in rubber

What a lot of car owners don’t know is that nanotechnology has already been around for years in various applications. Nanoscale fillers such as carbon black and silica, which account for approx. 30% of tire mixtures, are essential if rubber is to have the required properties such as grip, abrasion resistance, tear and tear propagation resistance.

As the components, natural rubber and silica, cannot bind in rubber due to their different chemical properties, they are helped by bifunctional organic silicon compounds, known as organosilanes for short. Although these bridge molecules, which bind the other two substances, have only been available on the market for a few years, they are being used more and more frequently. All three fillers are so effective because they are so nano-small and have high surface areas.


Nano-adhesives instead of welding

Nanotechnology also already plays an important part in car manufacturing. In this case, gluing together large numbers of parts is state of the art. Nanotechnology even makes it possible to glue parts on command. Ferrites – enriched iron oxides which have a diameter of no more than ten nanometers – play a critical role here. These nanoparticles ensure that the adhesive coating is heated evenly and directly by microwaves, thus creating a top-quality adhesive process.


Solar cells, light-emitting diodes and reflective foils

A glimpse of the future: There are a lot of new ideas in the world of nanotechnology that have already been on display at the International Motor Show (IAA) and which could become reality in the next model. Transparent organic solar cells, transparent and energy-saving light-emitting diodes and infrared light-reflecting foils are only a few of the components used for the first time in the Smart Forvision and presented at the IAA in September 2011.

The hexagonal surfaces on the vehicle roof are particularly noteworthy. These are evenly translucent – a world first – and use the incoming light to generate electricity, which can operate the multimedia components as well as three ventilators inside the vehicle. In technological terms, the special solar cells are based on organic, nano-format dye molecules. Another nano innovation is installed directly under the solar cells: Transparent organic light-emitting diodes (OLEDs), which light up the inside of the vehicle when the door is opened or at the push of a button, while ensuring outside visibility.

Innovative foils create a special heat shield in the windshield and side windows that keeps the sun’s incoming heat outside the vehicle. The highly transparent non-metallic foil, which is placed between the layers of safety glass, ensures a level of reflection of the heat and the sun’s rays never achieved before. At the same time, it allows radio waves to pass through, making it possible to use GPS, Bluetooth and cell phones. All these innovations will soon appear in series model vehicles, which is something to start looking forward to now.

Less fuel and increased safety thanks to nanotechnology

Windows and mirrors that automatically adjust to the light conditions, easy-to-clean coatings for perfect visibility at all times, sensors that predictively change the driving status in accordance with the weather and collision risk – all in all numerous nanotechnological innovations are set to reduce fuel consumption, increase driving safety and enhance longevity.

Reductions in fuel consumption and pollutant emissions are being optimized on an ongoing basis. This is one way to produce vehicles that are as light as possible. What are needed are high-strength steels that allow thinner sheets of metal to be used, thus reducing weight. Embedded nanoparticles made of metal carbon nitrides increase the continuous loading capacity of steel many times over.

Namos GmbH, a Dresden-based portfolio company of Nanostart, can also make an important contribution to greater environmental compatibility. The use of Namos technology, based on bionanotechnological coating of the ceramic catalytic converter support materials, can lead to savings of approximately 50% of precious metals such as platinum, the mining of which also impacts heavily on the environment. This newsletter contains a recent interview with CEO Dr. Jürgen Hofinger.

The car in particular is becoming a “playground” for nanotechnology – the trend to miniscule sizes will increase with every new vehicle generation. The future too holds plenty of surprises.

More Time Needed than Originally Planned: “We Are Expecting Our First Customers Next Year” - Interview with Namos CEO Dr. Jürgen Hofinger

This year’s International Motor Show (IAA) once again demonstrated the speed with which developments in terms of safety, environmental compatibility and comfort are advancing thanks to nanotechnology. And this applies to both vehicle operation and manufacture. Namos GmbH, a Nanostart portfolio company, is in possession of a technology that can improve the catalytic converter production. We talked with Dr. Jürgen Hofinger, CEO of the Dresden-based company.

Reliably, reproducibly and consistently. Although the customer is ultimately unaware of the extreme complexity of the products, we needed more time than originally estimated to gain the full control over the materials during development that is required in order to achieve precisely this reproducibility. The time was well-invested, since we now know all about the various influences and are able to make the concept of saving precious metals visible. As there has been no substantial change in market conditions, we can plan on entering the market with the first customers next year.

 
Who will be the first users, whom are you negotiating with?
 
Hofinger: One of the greatest strengths of the Namos technology in exhaust catalysis is its compatibility with conventional production processes. We are negotiating with coating companies. These are companies that specialize in coating the porous ceramic honeycomb, which is the core of the catalytic converter, with the precious metals responsible for catalysis. Established coaters can integrate our technology into their production without incurring major investment costs. In view of the volumes involved, large companies can benefit in particular from precious metal savings that are easily achieved.

Nevertheless, we are also increasingly interested in smaller coating companies, as they could enable us to enter the market faster. However, in the past we were required to do our homework in the development phase. Our customers themselves must become aware of the special savings effects under their own conditions.

Are you already working on further applications for the technology, for example a further development for catalytic converters or applications for other sectors? Are you also already working on other technologies?
 
Hofinger: A small company like Namos needs a strong focus at all times so as not to lose sight of its goals. This is particularly true with regard to technologies that are to become established in large markets, such as vehicle exhaust gas catalysis.

We have expertise in two areas. First, in using modern molecular biology for technology, a segment in which we regard ourselves as pioneers. Second, in developing catalytic converter technology for gases and liquids. There are new developments in both areas of expertise which we are already evaluating with potential customers at this early stage and which are already extremely promising.

Thank you very much Dr. Hofinger.

Nanostart at Rusnanotech 2011: “We are in exactly the right place”

“As far as nanotechnology is concerned, there is a real spirit of impending change in Russia, and our expertise means that we are in exactly the right place here at the moment.” Marco Beckmann, CEO of Nanostart, ended his speech at this year’s Rusnanotech in Moscow with this conclusion.

In front of an audience of experts, Beckmann described the Russian situation for investment in nanotechnology and its opportunities and challenges from the viewpoint of a leading international nanotechnology investor. The nanotechnology scene is booming as a result of substantial government funding of nanotechnology. Nanostart’s professional skills in terms of assessing the future potential of young nanotechnology companies and making them successful with commercialization expertise are therefore more sought-after than ever. In Moscow, Nanostart showcased its expertise in these areas while increasing its profile as a reliable partner on the overall Russian nanotechnology scene.


Nanostart with a local presence in Russia

The local presence of Nanostart AG with a subsidiary is an essential condition for doing business in Russia. This is why, in mid-October, Nanostart spent the equivalent of around €2.4 million on buying an asset management company in Moscow that will trade as Nanostart Russia Asset Management Ltd.

Vladimir Bogomolov, Director Eastern Europe at Nanostart AG, commented: “We have acquired a company from a high profile group of investors. Regarding the purchase price, it must be borne in mind that the company has a legally prescribed cash contribution equivalent to around €2.0 million as well as several employees. It also holds the necessary license for managing investment funds. Our local presence is opening up more and more options for activity. Specific projects that result from this will then be managed by the Russian Nanostart subsidiary.”

The first option arose in the spring. Nanostart was selected from a field of international applicants to manage the Kama Fund First, a regional nanotechnology fund set up in the Perm region, in conjunction with Russian partners.


Business options and personal contacts

Although Rusnanotech was held for only the fourth time at the end of October, it is not only the biggest nanotechnology conference and trade fair in Russia, but also one of the biggest in the world. However, its particular importance to maintaining personal contacts and making new ones was apparent once again.

In discussions and meetings, Marco Beckmann and Vladimir Bogomolov were therefore focused on identifying further business options on the Russian nanotechnology scene for the approaching market entry in Russia, enhancing existing contacts and making new ones. Bogomolov commented: “In Russia, it is particularly important to get to know business partners personally, as this is the only way to build up the trust required for the deals.”

Learn more about Rusnanotech 2011.

Stopover at Nanostart AG: On their business trip around Europe the delegation from the Chinese nanotechnology stronghold of Suzhou visited Nanostart’s office in Frankfurt.

In late September, the Nanostart AG team welcomed a delegation from the Chinese technology stronghold of Suzhou at its offices in Frankfurt. The aim of the meeting with representatives of the Suzhou Industrial Park (SIP) and the Nanopolis nanotechnology center that is based there was to get to know each other and exchange ideas on potential future cooperation projects.

“China is an extremely interesting market for us and one that we are observing closely,” commented Dr. Stefan Elsser, Senior Venture Partner at Nanostart AG. “Nanotechnology in China is developing at an extremely rapid pace and is benefiting from extensive government subsidies. The country is creating exciting technologies and products with a huge sales market on their doorstep,” he continued.

The Suzhou Industrial Park (SIP) is a cooperation project between the governments of China and Singapore and is one of the largest modernization campaigns in China. The industrial area to the west of Shanghai covers 288 km². In addition to 20,000 national and multinational companies, the SIP is home to the interdisciplinary nanotechnology center Nanopolis, a government-owned scientific establishment for the research of new fields of knowledge and technology for modern industry.

The equivalent of USD 1.5 billion was provided for the construction of Nanopolis Suzhou, a move that is intended to further develop the city’s high-tech and nanotechnology-based economy.

• October 10, 2011
  Nanostart-holding MagForce AG announces treatment of recurrent glioblastoma patient with NanoTherm therapy >>

• October 20, 2011
  Nanostart holding ItN Nanovation AG: Contracts for joint venture with Juffali in Saudi Arabia finalized >>

• October 21, 2011
  Nanostart AG acquires Russian asset manager >>

• October 31, 2011
  Nanostart-holding MagForce AG announces changes to Supervisory and Management Boards >>

• November 23, 2011
  German Equity Forum; Frankfurt/Germany >>

• November 23, 2011
  Business Day Russia; Mannheim/Germany >>

Contact

Dr. Hans Joachim Duerr
Head of Corporate Communications

e-mail: presse@nanostart.de
website: www.nanostart.de

Nanostart AG
Goethestrasse 26-28
D-60313 Frankfurt am Main
Germany

CEO: Marco Beckmann
Supervisory Board: Dr. Alfred Krammer (chairman),
Prof. Wolfgang M. Heckl (vice chairman), Achim Lindner
Commercial register: Frankfurt am Main, HRB 74535

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