Eight Years of Experience in Industry-University Cooperative Research at CPRC--A Reflection

LIU, Henry

Capsule Pipeline Research Center, College of Engineering, University of Missouri-Columbia, Columbia, Missouri 65211-2200, U.S.A., liuh@missouri.edu, http://www.phlab.missouri.edu/~cprc

Abstract: Since 1991, the Capsule Pipeline Research Center (CPRC) at the University of Missouri-Columbia has been engaged in extensive research sponsored jointly by industry, university, a state agency, and the National Science Foundation (NSF). Valuable experiences have been gained in seeking, coordinating, and maintaining industry support for such research. It has been found that industry participation in university research benefits the university not only financially, but also in providing valuable experience to faculty and students in learning how research is approached in industry. This makes research more relevant and productive, and prepares students better for employment by industry.

Keywords: capsule pipeline, experience, industry, research, research center, university

1 Introduction

In 1991, the University of Missouri-Columbia won a competitive grant from the National Science Foundation (NSF) to establish a State/Industry University Cooperative Research Center (S/IUCRC) on capsule pipeline--the Capsule Pipeline Research Center (CPRC). The purpose of this center is to perform extensive research in the emerging technology of capsule pipeline for transportation of freight including coal, other minerals, grain, other agricultural products, hazardous wastes, household goods, etc. The first four-year term of the Center was focused on the coal log pipeline (CLP) technology. CLP is a special type of capsule pipeline in which coal in particulate form at a coal mine is compacted under high pressure to form a solid cylinder--the coal log. The coal logs are then fed into and transported hydraulically in a water-filled pipeline terminating at one or more than one coal-fired power plants. During the second four-year term, CPRC has broadened its research mission to cover another type of capsule pipeline--pneumatic capsule pipeline (PCP)--for intercity freight transport as a general cargo carrier, and to cover compaction of biomass solid wastes for use as a power-plant fuel. The latter is funded by the U.S. Department of Energy. According to NSF policy, S/IUCRC centers can have at most two four-year terms. CPRC will reach the end of its second four-year term on August 31, 1999. Thereafter, the Center must function without NSF and State funds; it will rely on industry and government funding from other sources.

2 Industry Participation

CPRC is governed by a "University Policy Committee" which consists of relevant university administrators--deans and chairpersons of divisions and departments having faculty participation in the Center's research. The Center is also governed by an Industrial Advisory Board (IAB) consisting of one representative from each sponsor--industry or government. The chairperson of the IAB is an industry member elected by all members. The IAB meets twice a year, in which the Center Director and participating faculty members report research progress to IAB members, and discuss essential matters and future plans. Additional contacts are maintained with industry sponsors by holding occasional work sessions on special topics, such as economic modeling of coal log pipeline, by visiting companies, and through communication using mail, phone, FAX and e-mail. Some salient features of industry participation in CPRC are discussed next. Because capsule pipeline is an emerging technology not yet used commercially and hence does not have an industrial base, support of research and development (R&D) in this technology came from potential future users and those industries that may benefit from future use of capsule pipelines. Due to the initial emphasis on coal log pipeline (CLP), a CLP Consortium was formed in 1991 to provide the matching fund required by the National Science Foundation. The members of the Consortium over the last eight years include electric utilities, coal companies, pipeline companies, machine companies, pipeline equipment manufacturers, and consulting firms. The first three groups (i.e., utilities, coal and pipeline companies) are large companies each having over 500 employees. Generally, the other groups consist of small companies, each having fewer than 500 employees, some only a few employees. While the large companies pay an annual fee in cash ($15,000 for each Member and $30,000 for each Principal), small companies provide annual in-kind contributions by donating equipment, materials and services needed for CLP research and development. The minimum annual contribution for each small company is $5,000. Table 1 lists the industry participants of CPRC since 1991. The period of participation of each company is also listed in the table. A total of 26 companies supported CPRC in the last eight years.

A second form of industry participation was achieved during the last two years of CPRC. There was a need for testing a large pilot plant before the CLP technology can be commercialized, and the cost for constructing such a pilot plant was high--in the neighborhood of $1 million. Such a costly facility could not be built without industry donation of the materials, equipment and services needed for the pilot plant. So, an effort was launched to solicit major equipment, materials and services needed for the pilot plant--mainly the pipeline part of the system. Each company contacted was told of the uniqueness and significance of the project, the opportunity that it provides for testing the provided components or materials and for a potential new market or new business, and some other benefits that may result from participation. The campaign was long but successful. Most of the expensive materials, equipment and services needed for constructing the pilot plant pipeline were obtained through donations. The donated items include 4000 ft (1220 m) of 6-inch (152 mm) diameter steel pipe, three slurry pumps, motors and motor speed controls for the pumps, more than twenty valves, valve actuators, electromagnetic flow meters, pressure transducers, pipe fittings, and the services needed for bending, coating and constructing (welding and laying) the pipe. The donated items and companies are listed in Table 2. So far, sixteen companies have donated; the total worth of their donations is approximately $400,000. As a result of these donations, the pilot plant is now under construction and is scheduled for completion before September 1, 1999.

Table 1. Industry Participants of CPRC

A third form (new form) of industry participation is for industry to finance a two-year extensive test program using the newly-built CLP pilot plant--the ”Pilot Plant Test Program." After the proposed two-year testing, the CLP technology should be ready for commercial use. Due to the high cost of the Pilot Plant Test Program, estimated at $1.5 million, and due to the expiration of the NSF and State of Missouri grants to CPRC on September 1, 1999, the Pilot Plant Test Program must be supported entirely by industry. In order to raise the $1.5 million from industry quickly, the University of Missouri took an unprecedented step: to allow industry to share 50% of the royalties generated from all future commercial use of CLP received by the University. Current and past industrial sponsors of CPRC were given the first right to invest in this $1.5 million. Because this is a new measure recently announced by the University, whether it will be successful remains to be seen. If successful, it will pave the way for the rapid completion of the CLP technology development, and early commercial use of CLP--in the next two to three years.

Two other significant acts of industry participation are also worthy of mentioning. The first is testing the coal log pipeline technology in a 6-inch diameter, 5-mile-long industrial water pipeline in Conway, Kansas, in 1994. This pipeline belonged to the Mid- 

Table 2. Industry Donation of Equipment, Materials and Services for Constructing CLP Pilot Plant Facility

*Estimated Value

America Pipe Line Company (MAPCO), a sponsor of CPRC research for five years (see Table 1). The test was rather successful; the best coal logs tested had less than 1% weight loss due to wear in going through this pipeline.

Another significant activity was the determination of potential sites for commercial demonstration of CLP. Approximately two hundred electric utilities and coal companies in the United States were contacted in 1995. It resulted in the submission of about twenty sites for consideration, of which three most promising sites were chosen after evaluation. The selection and evaluation were conducted in conjunction with Williams Technologies, Inc., a company that has extensive experience in evaluating pipeline projects, and in operating the world's longest coal slurry pipeline--the Black Mesa Pipeline in the United States. A similar survey of commercial demo projects will be conducted in 1999 to update the information of the earlier evaluation and to come up with new projects for possible commercial demonstration. Final selection of the demo project and negotiation with the owner will be done in 2000 so that before the CLP pilot plant test program is completed, a commercial demo project can be planned.

3 Experience and Lessons Learned

A great deal of experience has been gained and many valuable lessons have been learned through dealing with industry in the past eight years. These experiences and lessons include the following:

• Industry involvement in University research is highly valuable not only in providing additional funds for research, but also in shaping the direction and manner of the research, making it more practical and better organized. Research becomes more effective and efficient with industry involvement and guidance.
• Students participating in such research learn how industry conducts research. This makes them better prepared for future employment in industry.
• Faculty members on such research projects work harder and are more organized when they know industry is involved and watching them closely.
• Faculty and students learn from their industry contacts about many aspects of engineering and technologies that they would otherwise not know. This broadens their knowledge base in engineering practices.
• Industry wants to hire new employees who worked for the Center, even at the Ph.D. level. Some of these industries never hired Ph.D.s before.
• Industry participation in research also leads to industry involvement in education at universities, which helps to modernize obsolete courses or curriculum.

All the above experiences and lessons are positive in nature. One negative aspect of industry involvement in research centers such as CPRC is that some industry members may put unreasonable demand on the Center in terms of time table or research directions that cannot be met or accepted. This often results from not knowing how a university environment is different from an industry environment. For instance, when industry finds that a given research direction or approach is impractical or not the best, it will immediately change direction and approach. At universities, research is tied to student theses and degrees. When a research is conducted as a thesis research, one cannot discontinue the research and force the student to choose a different topic once the research is underway and approved by the graduate committee. One must wait until the student completes his (her) thesis before a new topic or approach is tried. This is not practical from industrial standpoint but is justifiable from educational standpoint. If such difficulties are not properly explained to the industry sponsor, or not to his (her) satisfaction, he (she) will soon be disillusioned, disappointed, and dropping out. In general, industry is impatient and wants quick results. It does not wish to support research year after year without producing results that they can use or benefit from. Industries also may withdraw their support prematurely due to other reasons, such as company change of president (having a less supportive new president), company economic difficulties, or having reached the four-year participation term specified by the contract (Agreement) with the University. Due to a combination of the various reasons stated above, only a minority of companies supported CPRC beyond four years (See Table l.), and only a few lasted for eight years. This means for centers to last for more than four years, new recruits must be found on a continual basis. It makes recruiting new members a constant task of the Center.

4 Conclusion

Research centers at universities can benefit greatly from industry involvement. Such involvement brings in more money for research and student support, provides more practical research projects, gains greater public confidence in university research, makes research more effective and efficient, trains students in a way better prepared for industry employment, and modernizes university curriculum. Due to these benefits, both universities and governments should provide incentives to encourage more involvement of industry in University research, such as by providing matching funds for such research, or by granting patent privileges to participating companies, and by facilitating and rewarding faculty efforts in industry sponsorship of university research.