Provide breakthrough to interested companies to stimulate market developmentMEGASeek non-automotive market opportunities; license to product companies; apply new Cu technology developmentsFlat copper HX conduitsEngage tubing companies in development project; quick commercialization if economically viableCopper motor rotorAssist foundries and manufacturers; charge access fee; leverage with government fundsAntimicrobial copper/alloy surfacesSupport with ICA market promotion; push market development in touch surfaces and airconCuprobrazeContinue development to make process more competitive: wider tolerances, more efficient braze coating* Rationale for ICA role to accelerate commercialization

$2 10 million need for technology and market developmentMarket development best pursued by motivated entrepreneurial companyLikely to attract external capital to grow a companySuccess would create substantial new copper useElectronics cooling busFund start-up to demonstrate system; engage industry from the start; possible ownership position through R&D fundingChemically grafted coatingsCoating production source available; coating formulation will be available to members; members involved in projectICA TECHNOLOGY PIPELINEICA pre-competitive R&D funds move technologies towards commercializationCommercializationSemi-solid metal formingForm company to focus solely on Cu alloy SSM; support with market promotion; leverage with government funds*New project sources:R&D networkICA networkMarket intelligenceVenture capital network

New projects not shown:Round tube/plate fin all copper aircon HXPlate heat exchangersLower cost solar thermal systemsThin section extrusionSubsea cablesPlumbing tube coatingWater heating heat pumpEngage fabricators and industry to produce prototypes; aim for widespread application

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EXECUTION PATHSet down principles and socialize themBuy-in from 15 companies with inconsistent outlooksInitiate member-to-member interactionsPush the group just beyond lowest common denominator of acceptanceAssure appropriate level of discomfortGive members time for stress relaxation*Expose to comparable organizations with similar issuesVisit Gas Technology InstituteSoybean Board

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ICAs R&D PRINCIPLESFocus on creating new, high tonnage, global applicationsSupport pre-competitive R&D where ICA funding can make a differenceNo internal resources; global R&D networkInvolve members and customers in projectsTake active role in technology commercializationLeverage with external fundingEach is a difficult sell*

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EXECUTION PATHBuild personal relationships with member firms, end-users organizations and R&D organizationsVisit all ICA members discuss market dynamics and technologyVisit key copper users understand attitude towards copper useVisit universities, research institutes, corporate labs find the leading edge of researchStimulate open debate of relevant issues in Technology Steering CommitteeDemonstrate competence and discretion to gain credibility

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EXECUTION PATHEstablish initial pre-competitive projectsMix of new applications and unaddressed needsMine the bookshelf; identify new challengesSelect high risk, learn-as-you-go projectsOvercome basic obstaclesEngage full supply chainICA members have first access to developments*Deal with major exception: secret project with global automotive OEMInitiate activities to gain co-funding

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COMMMERCIALIZATION CONCEPTSFocus and sustain effort to achieve tonnage impactUnderstand potential market impact and possible commercialization route from the startBuild credibility through co-fundingConnect technology with entrepreneurial effortPrefer technology transfer, licensing or royalty over equity ownershipEquity ownership in business in exceptional casesExit ownership position when strategic benefit achieved

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TECHNOLOGY DEVELOPMENT PROCESSTechnical capabilities Properties ProcessesApplication knowledge Industry pain points Market dynamicsNew copper applicationVenture creation / entrepreneurial effortMarket/business innovationTechnology feasibilitydemonstrationMember/supply chain participation

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ICAs R&D FOCUSCreate and commercialize application-directed technology breakthroughs in a few high potential technology domainsHeat exchange systemsAutomotive Antimicrobial surfacesRenewable energyElectrical energyData communications

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HEAT EXCHANGE SYSTEMSCondensing demand gas water heaterCO2 heat pumpSmall diameter aircon tubesFlat multichannel tubePlate heat exchanger

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AUTOMOTIVE HYBRIDSElectromagnetic transmissionIntegrated starter generator

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Antimicrobial surfacesAntimicrobial aircon heat exchangersANTIMICROBIAL

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RENEWABLE ENERGYGeoSolar systemEmergence BioEnergy

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ELECTRICAL ENERGYDeep sea electrical cable sheathingCopper motor rotor (industrial, appliance and automotive applications)

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DATA COMMUNICATIONSData communications beyond 10 Gbps Power over Ethernet

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UNIVERSITY RESEARCH

Wear-resistant mechanically alloyed alumina/copper dispersionSilicon carbide reinforced copper for high temperature heat-transfer applicationsCopper-based bulk metallic glassCopper sorbents for desulphurization of fuels and natural gas (licensed)Copper catalyst for methanol-to-hydrogen conversion

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CO-FUNDED R&D CONSORTIAEcoSeaGeoSolSuper Calefont

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2006 TECHNOLOGY PROGRAM

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CURRENT SITUATIONActive for ~4 yearsICA funding: ~$12 M cumulativeExternal funding attracted: ~$12 M cumulativeEstimating 2006-2010 impact of 200,000 tonnes ($1.6 billion)Major growth opportunities coming from TechnologyGlobal R&D Network established (140 active researchers in 2006)Commercializing R&D results

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SYSTEM ARCH. FRAMEWORK _________________________________________________Source Ed Crawley, MIT, ESD34.J

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Example Project

Copper Alloy Fish Cages

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BEYOND R & DTraditional CTO management roles: R = Research (market and technical)D = Development (leadership)E = EngineeringAdditional disciplines required at CTO levelC = Connect (partner selection, contracts, IP, value sharing and motivation matching)M = Commercialization (funding, business development)New opportunities and innovations arise from making creative connections and moving to market

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TECHNOLOGY TRANSFERCopper alloy enclosures for the cultivation of marine organisms in their natural habitatsNeeded in ChileSalmonProven in JapanYellow tail

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AQUACULTURE CAGESFish cages made of copper alloysResist foulingHave low corrosion ratesResist attack by marine mammalsMay prevent growth of infectious bacteriaAre recyclable at end of lifeReduce operating costs

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1976 INCRA PROJECT

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RATIONALE IN 1976Farmed fish production doubled 1970-1975Production at 4.5 million kg/year; 10% of global fish supplyUS alone is $800 million retail industryGrowth should continueOpen ocean fish stocks declining due to pollution and over-fishingWestern countries more health conscious and eating more fishPrice of fish rising making farming potentially more profitable

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RATIONALE IN 1976Fast growth has been in low labor cost countries with traditional practicesSlow growth in technologically intensive countriesLittle scientific research focused on making aquaculture a profitable ventureLarge companies not willing to take the risks involved in investing in large-scale aquaculture businessesINCRAs floating copper-nickel fish cage could accelerate growth of aquacultureMore cost-effective technologyFocus on luxury crops such as salmon, trout and oysters

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ADVANTAGES OF Cu-Ni CAGESNo biofoulingAvoid the costs, fish stress and nuisance of net changesHealthy fish - maintain level of oxygen and water-borne nutrients5% blockage after 18 months of submersion vs 75% blockage for nylon net with copper antifouling coatingMore fish per cage Avoid predator attacksReduced labor costs

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CAGE CONSTRUCTIONExpanded 90/10 copper-nickel sheet76% open areaProven anti-foulingRigid modules with fiberglass frames1 x 3 meter panelsAssembly into different shapes as neededFloats covered with 90/10 copper nickel

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WHY EXPANDED METALMany material forms consideredWire mesh (welded and woven)Fine braided wire woven into nettingPerforated sheetExpanded metal selected because it gave lowest cost cage$26.23/m3

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WHAT WENT WRONG?Expanded metal rigid cages cost effective but not the right choice for the applicationFlexibility importantSome biofouling caught in corners of expanded metalNot easily scaleable to large enough volumeIndustry grew faster than expected and needed proven, risk-free technologyCost analysis based on 10-year cage life and no end-of-life valueNo entrepreneurial drive

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EXPERIENCE IN JAPAN

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JAPANESE TECHNOLOGYNetting material provided by SAMBO (Japanese subsidiary of Mitsubishi Materials)Second generation materialUnique alloy: low corrosion, antifouling, high strength, abrasion resistantChemical composition (wt. %)64 Cu, 35 Zn, 0.6 Sn, 0.3 NiFormed into woven wire net200 current net installations

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JAPANESE TECHNOLOGYCage design, construction and installation by Ashimori12m x 12m x 10m deep

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JAPANESE TECHNOLOGYUR30 net after 4 years in JapanUR30 net after 5 months in Chile Nylon net after 5 months in Chile

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REAL BENEFITS IN JAPANNO maintenance or net changes over 4 yearsNo cleaning costsNo cost for disposal of biofouling on nylon netsNo net change costs No loss of fish due to stress of net changesNO antibiotics NO diseaseNO parasites NO fresh water immersionNO predator perimeter net required

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REAL BENEFITS IN JAPANLower environmental copper releaseConstant low level release (about 30% of nylon nets coated with copper-based paint)50% more fish per cage10-15% faster fish growthMore profit at lower costA clean technologyHigher consumer acceptanceLower environmental impactMore profitable

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A HAPPY FISH FARMER

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AN OPPORTUNITY FOR CHILETransfer of Japanese technology to Chilean industryWoven brass alloy cage well suited to salmon cultureAll production, from metal mining to installed cage, by Chilean companiesCage leasing to overcome high initial costCleanTech approachReduced environmental impact from salmon productionComplete metal recyling at end of cage lifeStrong economic benefitsMuch better than copper antifouling coatings!!!

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ECOSEA PARTICIPANTSICA initiation, organization, research and fundingIntesal Chilean salmon industry research instituteUniversidad de Concepcion research assistanceMitsubishi Materials copper alloys for fish cagesCodelco project managementAshimori fish cage fabrication and installation expertiseMadeco production of copper alloy wire in ChileRivet wire weaving for fish cages in ChileAqua Cards fish cage fabrication and installation in ChileVarious salmon farms in Chile

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COPPER ALLOY SALMON CAGESResist fouling More oxygen equals faster growthHigher conversion factorAllow more fish per cageResist attack by marine mammalsReduce operational complexityAvoid net changesAvoid the need for antibioticsLower environmental impactLower low copper ion releaseNo liquid or solid wastesAre recyclable at end of life

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2006 SUCCESS FACTORSBetter alloy material in better formDeeper understanding of industry needsTechnology proven in use; needs adaptationLeasing business model to lower capital costTechnology transfer to local industryBusiness consortium with government co-funding

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SUMMARY Identify and develop network of relationships Define a vision, processes, and gain buy-inFind opportunities worth pursuingDevote the effort needed to succeedPlan for commercialization early in the processCombine technological advances with business model innovationGain leverage from partnersEncourage entrepreneurial effortsSystems thinking essential

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Creating and Executing a Technology Strategy for a Global IndustryHal StillmanDirector of TechnologyInternational Copper Association, Ltd.

20 October 2006 hstillman@copper.org

MI&E is still accumulating data. Our primary focus is to obtain as reliable a database for China as possible. Therefore, we have commissioned a study to collect that database. We have also commissioned a study in Latin America. Moreover, we are proceeding in the RFP process in the areas of N. America architectural copper usage, Eastern Europe, SE Asia and Japan.Village PowerME&I is collecting information on the International Village Power program. We are looking into the issues of who, what, where and how much. We feel that there is may be a significant opportunity for copper usage for both electric wire installation, solar power and water desalinization. Consequently, ME&I is gathering market intelligence in an effort to provide accurate and current information to the program directors and the opportunities to ICA therein.

MI&E is still accumulating data. Our primary focus is to obtain as reliable a database for China as possible. Therefore, we have commissioned a study to collect that database. We have also commissioned a study in Latin America. Moreover, we are proceeding in the RFP process in the areas of N. America architectural copper usage, Eastern Europe, SE Asia and Japan.Village PowerME&I is collecting information on the International Village Power program. We are looking into the issues of who, what, where and how much. We feel that there is may be a significant opportunity for copper usage for both electric wire installation, solar power and water desalinization. Consequently, ME&I is gathering market intelligence in an effort to provide accurate and current information to the program directors and the opportunities to ICA therein.

MI&E is still accumulating data. Our primary focus is to obtain as reliable a database for China as possible. Therefore, we have commissioned a study to collect that database. We have also commissioned a study in Latin America. Moreover, we are proceeding in the RFP process in the areas of N. America architectural copper usage, Eastern Europe, SE Asia and Japan.Village PowerME&I is collecting information on the International Village Power program. We are looking into the issues of who, what, where and how much. We feel that there is may be a significant opportunity for copper usage for both electric wire installation, solar power and water desalinization. Consequently, ME&I is gathering market intelligence in an effort to provide accurate and current information to the program directors and the opportunities to ICA therein.

MI&E is still accumulating data. Our primary focus is to obtain as reliable a database for China as possible. Therefore, we have commissioned a study to collect that database. We have also commissioned a study in Latin America. Moreover, we are proceeding in the RFP process in the areas of N. America architectural copper usage, Eastern Europe, SE Asia and Japan.Village PowerME&I is collecting information on the International Village Power program. We are looking into the issues of who, what, where and how much. We feel that there is may be a significant opportunity for copper usage for both electric wire installation, solar power and water desalinization. Consequently, ME&I is gathering market intelligence in an effort to provide accurate and current information to the program directors and the opportunities to ICA therein.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.

Many concepts/areas have been on the research agenda for a long time: - bright maintenance-free copper surfaces (first explored in 1960)- thin, thermally conducting insulation for electrical wiring/slot filling in electrical machines (1961 and 1962)- applying coppers antimicrobial properties in the air environment (copper air filters in 1973)- net shape forming of copper and its alloys (1966)- opportunities in alternative energy systems (1961, 1966)- hybrid/electric vehicles (1970)- defending heat exchanger applications against alternative materials innovation efforts (1969)- various types of corrosion (1961-2004)This is a good list of prospective research and development opportunities for copper. The 2004 ICA Technology budget addresses these same areas, and successful results would produce substantial tonnage and value applications.