By SIMON COLLINS, science reporter
New Zealand has secured what could become a $300 million industry by winning a 16-year patent fight over a new kind of electrical technology.
State-owned Industrial Research Ltd finally won a US patent last week to a material that it developed in 1988 to conduct electricity without resistance at the "high" temperature of minus 163C.
Its US partner, Nasdaq-listed American Superconductor, is using the material for short lengths of new power lines in New York and China.
A report by NZ Trade and Enterprise says components and machinery for the new industry could eventually earn New Zealand companies up to $300 million a year.
"It suits New Zealand because we are not talking about high-volume production. We are talking flexible production runs," said IRL business development manager Geoff Todd.
"NZTE came along a bit sceptical, but I think they have decided this is quite an amazing opportunity. We have also been surprised at what ancillary skills there are in the engineering sector to help us."
Superconducting materials that conduct electricity without resistance have been known for more than 90 years, but initially they required extremely cold temperatures, close to absolute zero (minus 273C).
A series of breakthroughs in the 1980s culminated in the development by IRL's Jeff Tallon, Bob Buckley and Murray Presland of a new "high-temperature" conductor, named BSCCO after its elements bismuth, lead, strontium, calcium, copper and oxygen.
Seven companies filed patent applications for the material. IRL has finally beaten off the last appeal to prove that it developed it first - a claim originally described and dated by Dr Tallon on a greasy brown paper bag in a lunchroom.
IRL sold an exclusive licence to the material to American Superconductor in 1992, and supplies the US company with components such as magnets and coils on a pilot basis.
It is now forming a new company, HTS-110 (High Temperature Superconductor at 110C above absolute zero), to commercialise these components.
IRL will put up half of the $2 million capital, American Superconductor 20 per cent and Neville Jordan's Endeavour Capital fund 30 per cent.
"There are 10 to 15 companies [in New Zealand] that provide components such as insulation, adhesives and so on - all things that are not normal products because of the high magnetic fields and low temperature," Mr Todd said.
"So we have the beginnings of a specialist industry. The NZTE idea is to have a value chain of activities here in New Zealand."
Electrical technology patent is ticket to riches
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