From spin-out to international player

Christian Hackl at TUM-Tech and Thomas Bereuter at the EPO discuss the role that IP played in Orcan's dynamic growth in generating power from waste heat

---

Share

Christian Hackl and Thomas Bereuter

---

Renewable energy company Orcan Energy AG1 is a former university spin-out that commercializes innovative waste-heat power generators comprising standard components and designed for a broad range of applications. Due to market entry barriers, the company had to make an early pivot from a technology provider to a business model oriented towards product sales, taking the arduous path of developing and installing standalone products by themselves.

The focus moved to fully integrating Orcan’s products into the installations of large players. Sales developed dynamically, resulting in solid growth rates, although many generators in Europe still had to be sold one by one, limiting growth rates.

As its technology has a much larger market potential, Orcan decided to enter the Asian market. After about three years, Orcan managed to set up a joint venture with a Chinese partner and investment fund. Large volume sales were triggered, initiating the dynamic growth Orcan was intent on achieving to help reduce CO2 emissions and fight global warming. Its patent portfolio, acquired from TUM (Technical University of Munich in Germany) and then dynamically expanded, has proved crucial at all stages of the evolving business model, in particular when:

• obtaining funding; • communicating the company’s technical advantage and innovation skills in order to build up its trade mark; • partnering with suppliers and R&D partners; • keeping copycats at bay; • maintaining freedom to operate; • and founding a joint venture to enter Asian markets

Orcan uses standard industry components to design and construct its power generators that recycle waste heat by converting it into electricity, using the Organic Rankine Cycle (ORC), a process similar to that used in steam engines. Having started as a spin-out from TUM in 2008, Orcan now has 60 employees. Patents are important, particularly because Orcan’s use of standard components means its power generators are at high risk of being copied. Eight early patents filed by TUM were subsequently acquired by Orcan. Ownership of these patents was vital in attracting funding.

• Christian Hackl is managing director of TUM-Tech GmbH, Munich, Germany and Thomas Bereuter is innovation support programme area manager, European Patent Academy, EPO, Munich, Germany. Their full article on Orcan's path from spin-out to international player appears here.