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In this issue...

Innovation – the centre of corporate strategiese
Lord Sainsbury, UK Minister for Science and Innovation
British Innovations
On the road again
Christopher Macgowan, Chief Executive, Society of Motor Manufacturers and Traders
Fossil Fuels – An Energy source for the Future
Greg Lewin, President, Shell Global Solutions
Chain of success
Kenny McKay, Director, and Will Wright, Manager, Restructuring practice at KPMG
Innovation and the Patent Office
Lawrence Smith-Higgins, Head of Awareness Information & Media The UK Patent Office
Benefits of association
Dr Michael Moore, CEO, PIramed Ltd
Innovation and strength in the UK biotech sector
Aisling Burnand, Chief Executive, BioIndustry Association
Simfonec: Helping make good research BIG business
Heron Evidence Development: Successful deal of missed opportunity
Springwell Ltd: Match-maker for Innovative Technologies
Korn/Ferry International: Pharmaceutical companies desire to break the mould
A quality core interface
Dominique Kleyn head of BioPharma Business Development, Imperial College London
Evolutec Group: Creating a range of commercial options
Moving forward
Dr Ceri Williams, Senior Manager, Science and Innovation at Yorkshire Forward and Dr Danielle Hankin, Bioscience Cluster Manager
Oxitech: Revolutionising SIT Programmes
Oxford Expression Technologies: Meeting the needs of the post-genomic era
Business Services
Innovating business related services
Norma Rose, Director-General, Business Services Association
BT: Innovation Strategy and Innovation Continuum
UK Film Council: How the UK wins in the international film industry?
On the defence
Major General Alan Sharman CBE, Director General, Defence Manufacturers Association
ProEtch: Precision parts of quality
Wallop Defence Systems: Aircraft Countermeasures and the Dual Spectral Threat
Education, Education, Education
Ruth Kelly, Secretary of State for Education and Skills
Applied Sciences at Wolverhampton - Innovation in Higher Education Professor Trevor Hocking, Associate Dean, International Development
Wind energy
Marus Rand, Chief Executive, British Wind Energy Association
Vital energy
Ian Leitch, Commercial Director, Energy Industries Council
Waterman Group: Solutions to solve climate control legislation
Winning the war against germs
Dr Ron Mitchell, Managing Director, GB Environmental
Show me the money! Funding for innovation – who can help?
UK: Innovation Nation?
Launching the “Innovation Nation?” initiative
Innovation in the 21st Century
Gemma Harman, Director of Strategy & Media, BT Chief Technology Office
UK Manufacturing - a driving force for innovation
Andrew Manly, Director General, Manufacturing Technologies Association
Waterman Group: Single project model 3D
Renishaw: Achieving global manufacturing competitiveness in the UK
Yorkshire Forward
The European Nanotechnology Trade Alliance
Del Stark, Chief Executive, European Nanotechnology Trade Alliance
University research drives a new wave of innovation
Omar Cheema, Nanotechnology Business Development, Imperial College London
Oxford Instruments: Enabling nanoscience and nanotechnology
Semefab (Scotland): A real driver of change
Metal Nanopowders: New products that meet your needs
Regional Development
London Development Agency: One jump ahead
91Advantage West Midlands: At the heart of it all 95


Fossil Fuels - An Energy
Source for the Future

As an energy business, our success depends on providing the types of fuels that society demands ? now and in the future. Consumers are gradually moving away from conventional fuels such as coal, to those containing lower levels of carbon such as natural gas. We expect this trend to continue, as governments, industry and society take on the challenge of sustaining economic growth, preserving the quality of the environment and maintaining international security of energy supplies. Shell remains committed to being a key player in new energies. This article highlights the contribution of future fuels, innovation in the energy industry and why it is best placed to deliver the solution to the carbon challenge.

Greg Lewin, President, Shell Global Solutions

Almost every global scenario indicates that fossil fuels will dominate world energy supplies for several more decades before hydrogen, renewable or other sustainable fuels begin to make a major impact. Heavily populated and fast-developing countries such as China and India will be big players in driving demand upwards. By 2050, we are likely to be using twice as much oil as we use today.

Genuine leadership

Keeping pace with increasing energy demand while mitigating the effects of energy production on the environment will require clear thinking and a deep commitment to technological innovation. Fortunately, these are established features within the oil industry, which I see as providing genuine leadership in the years to come.

There is already much to be positive about, particularly in the transport sector. The advent of clean fuels, some now virtually free of sulphur, has had an enormous impact on the pollution problems of our cities. The efficiency of the internal combustion engine has been improved considerably and hybrid electric vehicles have appeared on the market. Diesel technology, once limited to commercial and industrial vehicles, has advanced a long way.

We must use fuel more efficiently and find new ways of reducing and containing carbon dioxide and other emissions

Technology already exists to extract hydrogen from fossil fuels. However, there is some way to go before hydrogen becomes a commercial reality, including some major technical and economic hurdles to overcome associated with its widespread storage and distribution. And, ultimately, you would want to produce hydrogen via a renewable source and not from fossil fuels. Solar electrolysis of water is often cited, but the economics of this process are currently unattractive.


The use of biofuels in transportation is increasing as a result of governmental pressure. For example, the European Union directive on biofuels asks the 25 member states to achieve 2% biofuel in gasoline and diesel by December 2005 and 5.75% by December 2010. It is sensible to introduce biofuels through blending with fossil fuels rather than trying to use neat biofuels in transport fuel. This will enable seamless introduction, with only minor changes required in the distribution chain and handling procedures. Biofuel components are already on the market.

Making innovative use of Gas

There is worldwide recognition that gas will play a key role in meeting our future energy needs ? sometimes referred to as the ?dash for gas?. Over the past 20 years, worldwide gas demand has increased by 75%. In the coming decades, a growth of around 3% a year is expected, which will result in a doubling of demand within 25 years. Gas is a clean and cheap fuel that is easily accessible once the infrastructure is in place. Another key advantage of gas is its availability.

There are significant known reserves, but there is also a large potential for further discoveries, as the emphasis moves to exploration for gas rather than for oil. All these developments will demand transportation of gas over longer distances by pipeline and, where more economic, as liquefied natural gas (LNG).

Unlocking resources using LNG

Natural gas with its low carbon dioxide emissions per unit of energy, clean nature and high efficiency in power generation will continue to play a major role in meeting the fastgrowing energy requirements of Asia and the Middle East. As the scale of LNG operations continues to grow, economies of scale and technology refinements will reduce costs.

Gas to liquids ? producing a new, cleaner fuel

As well as rapid growth in LNG, this decade will witness the development of large-scale conversion of remote natural gas into gas to liquid (GTL) fuels. Shell has a multi billion-dollar investment to develop a world-scale GTL plant, in Qatar.

Studies show that the entire GTL system has a significantly lower impact on air acidification and smog formation, fewer particulate emissions, less hazardous waste production and no greater impact on global warming when compared with the crude oil refinery system. However, the GTL process is at a comparatively early stage in its development.

With time, Shell expects to reduce GTL process emissions further, and the products will bring efficiency gains of 5 to 10% when engines are better tuned to the properties of GTL fuel. To make this happen, Shell is cooperating closely with original equipment and vehicle manufacturers.

The promise of carbon capture

Shell is developing carbon dioxide capture and enhanced recovery techniques/geological storage to offer a new set of options for reducing greenhouse gas emissions. Shell is also a member of ?The CO2 Capture Project?, an international effort funded by eight of the world?s leading energy companies to find ways of reducing emissions that will contribute to an environmentally acceptable and competitively priced continuous energy supply for the world. It seeks to develop new technologies to reduce the cost of capturing carbon dioxide from combustion sources and to safely store it underground.

There are several options for carbon dioxide sequestration in geological formations, all with different ratings for relative capacity, cost, storage integrity and technical feasibility. The options include storage in active or depleted oil/gas wells, coal beds, deep aquifers and mined caverns/salt domes. In the upstream oil industry, subsurface carbon dioxide sequestration, for instance, in deep saline aquifers, is being actively pursued.

New frontiers in Technology and Innovation

Economic growth and prosperity will drive global energy demand in the coming years; this will be particularly marked in heavily populated and fastdeveloping countries such as China and India. The fossil-based energy sources, gas, oil and coal, offer the only way of meeting this demand and will continue to dominate the energy market for many decades. Fortunately, we have the hydrocarbon resources to meet the predicted growth in demand until at least 2050, but it is important that we use these precious reserves and the intervening time wisely. We must use fuel more efficiently and find new ways of reducing and containing carbon dioxide and other emissions while developing sustainable energy chains based on hydrogen and renewables.

Technology is the source of the solution; scientists and engineers will play a crucial part in developing new ideas to help protect our people and our planet.