A pair of researchers from Dalhousie University has struck a partnership with a venture capital fund from Toronto to commercialize their pneumatic rotary engine and develop other projects.

Braden Murphy, a Masters student in mechanical engineering, and Assistant Professor Darrel Doman designed the technology at the university, and announced at a reception yesterday that they have partnered with York Bridge Enterprises of Toronto to form Scotia Motor Works, which will bring the product to market. The company has signed a licensing agreement with Dalhousie and the researchers to develop the product.

Murphy came up with the idea for the motor when he was 16, and he has been tinkering with it for several years. In 2009, he and Doman began to put together designs and develop prototypes.

Pneumatic  engines operate on compressed gas rather than a fossil fuel, and are frequently used in industrial settings where any sort of spark could prove dangerous, such as the oil and gas industry. However, the engines have a tendency to be cumbersome or have weak torque. Murphy and Doman have produced a working prototype that is compact and produces surprisingly strong torque, even at low speeds.

They sought funding for the project from various programs during development, and what’s interesting is they produced a prototype ready for investment on about $100,000 of funding over about 18 months. “To produce what we have in such a short time and with that amount of funding is a testament to the work Braden has done,” said Doman, adding that Murphy practically lived in the lab while he was developing the product. 

Meanwhile, Ken Richards, a Dal alumnus and former Managing Director of CIBC World Markets, along with former Ontario Deputy Premier George Smitherman were putting together York Bridge with a view to investing in young commercial ventures. Richards’ network of contacts led him to the Industry Liaison and Innovation Office of his alma mater, which led him to the technology being developed by Murphy and Doman.  Stephen Hartlen, Executive Director of the ILI Office, said he was especially pleased that the whole deal was put together in a couple of months.

Smitherman and Richards are now raising $25 million for a venture debt fund, which will lend startups as much as $2 million for as long as two years. Yet they saw an opportunity with the Dalhousie technology, so they are making an equity investment of about $500,000 to take control of Scotia Motor Works. Smitherman will be the CEO, Richards the CFO and Murphy and Doman will hold VP positions.

Another interesting point is these two Dal researchers are the first Nova Scotians this year to attract VC funding from outside the Atlantic area.

Smitherman said that over time, the company will need “millions” in investment.

Scotia Motor Works is considering an application for the pneumatic rotary engine, and is examining using it in a tractor lawnmower. The prospect of a low-noise, zero-emission lawnmower could be attractive in large cities where noise and air pollution are problems, said Smitherman.

In total, the company will work on the development of three of four products at the outset, and is looking at both licensing and manufacturing opportunities, depending on the project, said Doman.

Murphy and Doman were helped by: Springboard Atlantic; Innovacorp’s Early Stage Commercialization Fund and the Natural Sciences and Engineering Research Council of Canada.