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Fraunhofer Venture

Fraunhofer Fosters Management (FFM): A Real Opportunity for Fraunhofer Employees and External Managers

Dr. Peter Haug, Managing Director of Greasoline GmbH, a spin-off of Fraunhofer UMSICHT in Oberhausen, Germany, explains how he became Greasoline's Managing Director.

Peter Haug

For years, scientists have been doing research on how to win fuel without the use of fossil fuels. Until now, the focus was on ecological raw materials that do not require extensive processing and are available in large quantities. Researchers of the BIOFUELS division of the Fraunhofer Institute for Environmental, Safety and Energy Technology UMSICHT developed a procedure providing for the production of high-quality biofuel from waste fats and oil residues. The advantages of this process: The raw materials used do not compete with food supplies in any respect and are available in large quantities and short-term – and all with reduced CO2 emissions. With the support of Fraunhofer Venture, the scientists founded Greasoline GmbH in August 2011 with the aim of marketing this patented technology.

 

Dr. Haug, would you please briefly explain Greasoline GmbH's innovation. Is the production of biofuels from waste fats a real alternative for the future?

Yes, sure. The production of biofuels from residues and renewable resources is a real alternative for the future. Existing biofuels such as bioethanol or biodiesel in contrast, are directly competing with the food industry. Additionally, our biofuel meets higher quality standards as it features the same material characteristics as fossil fuels. Another advantage is that we are able to offer our biofuel at the same price as conventional fuels – even without subsidization.

How did you get to know about this spin-off project?

The spin-off was mainly supported by the "founding angel" Gunter Festel, who had already given advice to the engineering team in Oberhausen over a period of three years and was of great help when developing the business plan. The idea of Greasoline GmbH was then implemented by Mr. Festel and myself as external managers and four internal Fraunhofer employees from engineering.

What are the advantages in your opinion of building up a start-up as an external managing director?

External managers often have a business management background, which perfectly complements the scientists' know-how. My natural science and business management background was of course also an advantage for the founding of Greasoline GmbH. The ultimate goal is to make the innovations ready for the market and to put the ideas forming at a university or research establishment into reality. This isn't always easy. Our team is a quite good combination of qualified experts with engineering and business skills so that we are able to bridge the gap between theory and practice.

What is your job at Greasoline like at present?

At present we are looking for investors for first round financing. Next, we want to further strengthen and intensify the business relations to the petroleum industry and find partners for future cooperation.

Who are the members of your team and which positions still need to be filled mid-term?

Our team includes four engineering founders, who actually work for Fraunhofer most of the time and are financed by joint projects. The aim is to finance Greasoline GmbH not only externally but to also bring in the technical Fraunhofer know-how. As regards positions that might become vacant in the future, further positions in the area of business development, raw material sourcing and in technical project management are planned to be created after successfully ensuring first round financing.

What was your professional background before you took on the position as Managing Director of Greasoline GmbH?

I studied natural and management sciences and after that worked for management consultancies for seven years, predominantly in the chemical industry. Before I took on responsibilities at Greasoline GmbH, I developed the area of pharmaceutical toll manufacturing as an investment manager in an industry holding for five years. However, it is nice to participate in the results of your work, which is possible here by means of company shares and was one reason why I accepted the Managing Director position at Greasoline GmbH.

How important was the support through FFM?

With the support of FFM, Greasoline GmbH was in the position to take up its operative business almost one year earlier than planned, even before first round financing had been ensured. The effort required for finding suitable investors in the present environment is very high. The FFM program helped a lot in that context. The contact to investors was supported by Fraunhofer employees and Fraunhofer Venture.

Establishing a new company is a great challenge. To what extent does Fraunhofer Venture support you?

The support of Fraunhofer Venture was particularly important for the agreements on founding the company. The legal advisor for negotiations with the Fraunhofer patent division as well as the support offered when searching for investors really helped the company a lot. The support is given in the form of advice and weekly talks with Matthias Keckl. 
 
What are your corporate goals for 2012?

For the short term we have the aim to sign the license agreement with Fraunhofer, which we have been working on for nine months now. Furthermore, we want to ensure first round financing for the coming two to three years. And we are also looking for a suitable cooperation partner who will search for other suitable opportunities for our technology in industrial applications. This step will either be financed through financial aid programs or through the proceeds from the sale of Greasoline GmbH shares to the respective cooperation partner.

Dr. Haug, thank you very much for the interview.