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MATRIC November 2009 Newsletter
MATRIC Part of Winning Team to Support NETL
 
MATRIC will participate with a team led by URS Corporation (NYSE: URS) on a contract awarded by the National Energy Technology Laboratory (NETL) to provide research and engineering services to the NETL Office of Research and Development (ORD). NETL is the national laboratory for the U.S. Department of Energy's Office of Fossil Energy. The contract is a two-year contract with options to extend it to five years.

The contract has a maximum value of $322 million to the team over the full five years. The contract team includes URS, MATRIC, Midwest Research Institute, and a consortium of regional universities including West Virginia University, Carnegie Mellon, the University of Pittsburgh, Penn State University and Virginia Tech.

Under the terms of the contract, the URS-led team will be responsible for providing personnel, facilities, equipment, materials, supplies and services to support NETL on the development and implementation of basic and applied energy research. The team will also provide research services; infrastructure support; health and safety and quality control support; and logistical and technical coordination support for the NETL ORD.

“We are pleased to have been chosen for this important assignment to provide the NETL, one of the nation’s premiere energy laboratories, with research and engineering expertise needed to develop, manage, and transfer clean energy technologies,” said Tom Zarges, President of URS’ Washington Division. “URS has a long history of supporting the Department of Energy, including providing management services for four of the largest National Research Laboratories in the U.S., including the Los Alamos and Lawrence Livermore National Laboratories. We look forward to leveraging the diverse core competencies of the team to bring cost-effective services and leading expertise to the NETL’s Office of Research and Development.”

“MATRIC appreciates the opportunity to serve the NETL in its important mission to provide safe, cost-effective and environmentally secure technologies for the long-term use of fossil fuels, such as coal and natural gas,” said Keith Pauley, MATRIC’s President.

MATRIC Highlight - Core Values
 
Several years ago, MATRIC's leadership team was challenged to formulate the core values by which MATRIC the organization would conduct its operations. The team distilled many inputs into five core values that continue to guide our actions today. We will be featuring one in each of the next few newsletters.

Value One

People are our most treasured asset. We treat everyone with respect, dignity and fairness, and we offer opportunities for personal growth. We are an empowered organization, but also highly accountable for all of our actions. Our work culture values internal and external collaboration, open information sharing, continuous learning, fiscal responsibility, transparency in our decisions, and we leverage speed, simplicity, and focus as a part of our competitive advantage.

MATRIC believes that an organization is only as strong as the employees who represent that organization to its customers, vendors and the community. The manner in which a company interacts with its employees often determines the fate of the organization. MATRIC is fortunate to have a highly- dedicated and professional staff at every level that go above and beyond the expected to deliver quality services and products. As a leadership team it is our responsibility to see that people remain our number one priority and that respect, dignity and fairness are the benchmarks against which we measure our interactions.

Technology-Based Economic Development
 
For at least the past fifteen years, West Virginia has strived to create an atmosphere whereby technology companies can start, grow, and flourish. Many organizations exist which provide various components of this atmosphere including technical business assistance to start ups, a large research and development pipeline and even limited investment funds to start up companies. Organizations such as The West Virginia High Technology Consortium Foundation, The Chemical Alliance Zone, The Entrepreneurial League System, West Virginia University, Marshall University, MATRIC and many others have all contributed to the continuing effort to create and nourish this technology based economy in West Virginia.

Why, then, have all of these efforts not generated enough traction to "tip the scales" toward the technology-based economic boom the state so sorely needs?

There have been very recent conversations amongst many of these organizations around how to create a "Tipping Point" for Technology-Based Economic Development (TBED) in West Virginia. An instructive exercise to further this conversation is to take a look at what some argue was the most significant "tipping point" for the Pittsburgh region when it came to TBED. Pittsburgh, a city that was once synonymous with a heavy industrial economic base, recently hosted the G- 20 Summit exactly because of its newly found economic diversity and vibrant economy. One theory around Pittsburgh is that the events which surrounded the establishment and eventual exit of a single technology company, FORE Systems, was the major catalyst for much of the region's TBED success in recent years.

FORE Systems was a leader in internet switching equipment based in Pittsburgh. It was originally founded in 1990 by four professors from Carnegie Mellon University who had been researching the Company’s core technology. The Company was initially founded to supply the Federal government with development services around Asynchronous Transfer Mode (ATM) telecommunications switching technology. The company eventually established a leading position in the market for ATM switching equipment and went public along the way. Eventually, FORE was acquired by Marconi Corporation, which was subsequently acquired by Ericsson. As mentioned above, many felt that the establishment, growth and eventual exit of FORE Systems was one of the most critical points in the development of the technology based economy in Pittsburgh. According to InnovationWorks and the Ben Franklin Funds, many economic development initiatives began in the Pittsburgh region as a result:
  • Even after the Marconi acquisition FORE spun off a number of new technology companies, employing hundreds of people and raising hundreds of millions in venture capital.  
  • An example of just one of the successes of FORE was Spinnaker Networks, which was eventually sold to Network Appliance for $300 million.  
  • FORE repeatedly impacted the Pittsburgh region through the number of seasoned entrepreneurs it brought to the region and many former FORE entrepreneurs channeled their passion into starting new companies, and advising others.  
  • In addition, many of the FORE alumni made generous donations to the arts, education and other nonprofits.  
  • Finally, a new group of wealthy individuals emerged after the Marconi acquisition. These individuals invested in venture funds and made angel investments in other local early-stage companies. And existing organizations enjoyed the additional recognition and credibility to the area.  
 A few things are very interesting to note about FORE Systems and the activities and events that led to this significant “Tipping Point” in Pittsburgh:
  • The initial research came out of a research base funded by Federal resources, the initial research on (ATM) switching (FORE’s primary technology) began in the late 80’s at Carnegie Mellon University (CMU) through government funding.

    The FORE research was able to be commercialized above and beyond its initial government customers largely because Pittsburgh already had a commercialization support infrastructure base through the organizations such as the Ben Franklin Centers and InnovationWorks. These organizations provided much of the initial seed funding and technical assistance.
  • It could be argued that much of the success of FORE was due to perfect timing. ATM became all the rage as the entire concept of “voice/video/data convergence” was overtaking the telecom industry. The telecom bubble of the late ‘90s began as FORE was at exactly the right point. The Company was off the ground, had proven technology and the technology offered many advantages for new applications and technology trends in the industry.

    Even though the big hit with FORE may have been due in part because of great timing – the region had already laid the foundation to do many, many deals through Ben Franklin.    
Of course, to get to this ultimate tipping point, there had to be many other “mini” tipping points in the region. For example, at one point, there had to be full support for the idea of providing infrastructure/capital to help technology companies. CMU had to make a decision to focus on computer science and to pursue federal research in certain areas. FORE Systems issued its initial public offering (IPO) at the beginning of the telecom bubble and sold out at the peak of the bubble, turning some people (founders and regional investors) into very wealthy people. These people had to decide to become angel investors and venture capitalists to increase technology deal flow in the region.  

All of these circumstances were mini tipping points that played a big role in placing Pittsburgh in the forefront of the national conversation about becoming a technology and biotech focused region. With the broad base of deals they were funding, it was only a matter of time before someone hit just the right timing. Even so, it took nearly two decades from the start of the research to the point of exit.   

The lessons to be learned from this example are (1) the region probably had many strike outs, singles and doubles before the FORE home run, (2) simply because of probabilities, a region needs a robust pool of ideas to increase the odds of hitting a homer, and (3) good things come to those who are patient enough to continue working toward their goals.   One of the major goals of MATRIC is the development and commercialization of breakthrough technologies. We are confident that MATRIC’s innovation and commercialization model, in partnership with other state organizations dedicated to assisting new businesses, can contribute to a new “Tipping Point” for technology development in West Virginia.   

Doctoral-level research in chemistry, life sciences, and control system software, a robust professional engineering organization and a full commercialization enterprise are some of the weights that MATRIC is putting on the balance to move the scale toward a healthy, growing technology-based economy in West Virginia.

MATRIC Showcases Start-Up Businesses at Annual Meeting
 
MATRIC held its annual meeting reception at The Clay Center for the Arts and Sciences from 5:30 to 7:30 p.m., Wednesday, October 21, 2009. Over one- hundred fifty invited guests were on hand to celebrate the recent successes of some of MATRIC start up businesses and to learn about additional opportunities for regional economic growth through research and development, technology creation and commercialization.

Companies featured included NG Innovations, Inc., Liberty Hydrologic Systems, LLC, Polyplexx, LLC, and Certus Scientific, LLC. "These companies are solving some of the most important environmental and technical issues facing our state and nation, such as selenium in run-off from surface mines and treatment of water from natural gas wells," says MATRIC's CEO and President, Keith Pauley.

Featured speakers were introduced by Mid-Atlantic Holdings President William Goode.

NG Innovations, Inc. has successfully deployed a large-scale treatment system for natural gas produced water. This 2400-barrel per day system is located at CNX’s site in Washington County, southwest Pennsylvania. NG Innovations CEO Mike Gardner explains the importance of water treatment in natural gas production: “Without proper treatment of these brine waters near the source, there is the potential for significant environmental issues or extremely high costs for disposal.”  

Liberty Hydrologic Systems, LLC has successfully deployed selenium removal units in both West Virginia and Idaho. Working with Patriot Coal and JR Simplot, Liberty’s low-cost passive treatment systems bring mine run-off water below the 4.7 parts per billion selenium regulatory limit. Liberty’s Chief Technology Officer, Dr. John Sawyer says that “Liberty’s design may be one of the very few economical methods to treat selenium-bearing waters.”   

Polyplexx, LLC has successfully demonstrated new optically transparent polymer for applications requiring high impact resistance. Recent testing using Department of Defense ballistic methodologies found one polymer superior to currently accepted bullet resistant polymer. Another polymer was found to be superior to any other material in impact resistant ophthalmic applications. Dr. Richard Gerkin, Polyplexx’s founder and president, explains: “These new polymers provide a new platform for addressing impact resistance applications in many areas such as protection of our armed forces and police and in the broad area of ophthalmic lenses.”   

Mary-Margaret Chandler, owner of Certus Scientific, LLC, explains that one of her company’s technical projects will help the next lunar vehicle land safely on the surface of the moon. “The ALHAT project with NASA has successfully demonstrated the fundamental technology to use a laser version of RADAR to locate and track safe landing locations on the lunar surface.” This giant step forward will dramatically increase the safety of NASA’s astronauts or robotic vehicles landing on the moon or other planets, such as Mars.

MATRIC Receives Benedum Grant to Assist New Companies
 
MATRIC, which has started nine entrepreneurial companies since its founding in 2004, has received a major grant from the Claude Worthington Benedum Foundation to develop a Technology Accelerator Program at the Dow Technology Park in South Charleston, WV.

MATRIC is partnering with the Chemical Alliance Zone (CAZ) and the West Virginia High Technology Consortium (WVHTC) to provide entrepreneurs with small start-up grants, office and laboratory space, and professional and technological support services under this grant. The physical location will be at the Dow Technology Park in South Charleston.

"We hope to assist 5-10 new technology companies to begin and grow in our community", says Keith Pauley, MATRIC's president and CEO.

Both CAZ and WVHTC have a history of operating successful business incubator programs and bring a wealth of experience. Kevin DiGregorio, CAZ's executive director, is excited about the prospects of former Union Carbide scientists, engineers and technologists developing new products or processes in the Technology Accelerator. "MATRIC's technical personnel, WVHTC's professional network and CAZ's labs and equipment are powerful assets for an entrepreneur to become a successful business owner," says Dr. DiGregorio.

MATRIC 2009 STARS Introduced at Annual Meeting
 
MATRIC President/CEO Keith Pauley presented awards to one board member and four employees who were recognized for outstanding performance.

The MATRIC STAR Board Member of the year served MATRIC even before its inception. As a member of the BIDCO Board, he was one of the original proponents of creating an R&D entity to create jobs in the region and was one of the three original founders. Because of his long tenure with Union Carbide where he served as Associate Director of R&D and then as Director of Regional Public Affairs, he provided invaluable knowledge of both the process required to build an R&D infrastructure and the importance of community support in those efforts. He has served as MATRIC's Vice Chair and Chair of the Nominating Committee since the formation of the organization in 2003. He was instrumental in recruiting business leaders and educators to the MATRIC Board and has been faithful in assuring that MATRIC's mission and vision were the focus of our efforts. For all of his dedication to what MATRIC is now and for his vision of what MATRIC will be in the future, we honor Dr. Dwight Sherman as the MATRIC 2009 STAR Board Member.

Our first MATRIC STAR Employee of the year so impressed one of our prime contractors by his professionalism that they wrote a letter praising him. This employee took the lead in developing and delivering an excellent product. He made sure all the relevant parties were included in the product review at all stages. As is sometimes the case with the government, when the product was delivered, the government customer indicated that the wrong profile had been used in the development of the product even though they had approved the design and reviewed each stage of the development. Our employee was incredibly gracious, apologizing for “misunderstanding” the design concept and offering to make the changes immediately. In the letter, the prime contractor stated: “The way he stepped up in the situation without a hint of resentment really demonstrates to me that he is focused and dedicated and will not allow anything to stand in the way of delivering a quality product and providing excellent service. If he doesn’t deserve an award, then I absolutely don’t know who does.” Of course, we at MATRIC recognized these qualities in this individual from the beginning of his employment. For his outstanding customer service and dedication to quality, we honor John “Jay” Long as the Advanced Engineering Systems 2009 STAR employee.

The second MATRIC STAR Employee of the year has an outstanding breadth of knowledge of laboratory operations. He was a team member in MATRIC's very first laboratory projects and he has helped to greatly expand our experimental capabilities since that time. He is always upbeat and willing to help anyone in any way. His can-do attitude and his range of experience have contributed greatly to our success, and he is always looking for ways to improve MATRIC's operations. This year he has made excellent contributions to our progress in three major projects, which are expected to lead to further R&D opportunities for MATRIC. For his strong technical contributions and enthusiastic participation in MATRIC’s development, we honor Paul Aubry as a Chemical & Environmental Technologies 2009 STAR Employee.

The next MATRIC STAR employee brings a wide range of engineering capabilities to MATRIC. Over the past year he has been very active in the evaluation of potential new processes through process simulation and economic modeling studies. His contributions have helped guide our R&D efforts to bring the most value to our clients, and he has mentored younger staff members in these techniques. Because of his varied experience, we have asked this individual to change projects, assume leadership responsibilities, and fill in for others. He has accepted every challenge with good grace and professionalism. This year he was instrumental in writing a proposal and winning a major project involving development of a technology licensing package. For his hard work and dedication to excellence, we honor Kevin Roy as a Chemical and Environmental Technologies 2009 STAR Employee.

The last MATRIC STAR Employee of the year has worked diligently and creatively to establish a MATRIC satellite office and to establish MATRIC’s credentials in environmental science. Working alone for most of the year, he actively “bridged the distance” between offices by collaborating with staff across the MATRIC entities to provide opportunities for growth. During the year, he submitted several proposals for joint efforts between the home and satellite office while also developing customers and winning contracts to allow the satellite office to currently support an additional five staff. This individual, in addition to being highly regarded as an environmental scientist definitely portrays the qualities of a true “team player” in his efforts to position MATRIC as a leader and quality service provider. He and his team have also received customer praise for the quality and timeliness of their work. For his leadership and commitment to the organization, we honor Dr. Ken Skinner as a Chemical and Environmental Technologies 2009 STAR employee.

Resources
 
FORE Systems - The Ripple Effect
http://benfranklin.org/news/fore-systems-the-ripple-effect-of-a-pittsburgh-success-story

United States - Wind Resource Map
http://www.windpoweringamerica.gov/pdfs/wind_maps/us_windmap.pdf

Database of State Incentives for Renewables and Efficiency
http://www.dsireusa.org/

 

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