Alberta marries sustainability with a positive business atmosphere

Posted on 06/02/201705/22/2017 by Ben Debski

While Alberta’s abundance of natural resources forms the base of its economy, this foundation has been expertly built upon by the Alberta Government. Competitive business rates and modern infrastructure have enabled Alberta-based firms to compete on a global scale, which is significant given the province’s strategic access to the North American free trade zone and northern Asia.

This ideal business environment is made all the more attractive by the large pool of highly qualified personnel available within the province, and also by its lack of healthcare premiums, provincial sales tax or payroll tax.

Alberta has an abundance of biomass in the form of residual material left over from forest harvesting, forest product manufacturing, and as a by-product of the harvesting and processing of agricultural crops

Though Alberta’s economy contracted 3.6 percent in 2015 due to weak oil and gas prices, the province still led Canada in economic growth over the past 20 years, with an average annual GDP growth of 3.2 percent. Despite its economic downturn, Alberta’s per capita GDP of CAD 78,100 ($57,884) in 2015 was the highest of any state or province in North America.

Economic diversity
The Alberta economy is currently seeing slower growth, but it is once again forecast to expand in 2017, growing 2.6 percent. It will continue to thrive over the long term on the strength of its expanding oil sands sector, and the development of its supply chain manufacturing and service sectors. Advanced technologies, meanwhile, are another important driver for the local economy, which includes clean energy, ICT, life sciences and nanotechnology. In fact, in 2015, Alberta’s revenues in ICT industry alone totalled around CAD 16bn ($12bn).

Of increasing significance is Alberta’s bio-industrial sector, which has grown considerably in recent years. Alberta has an abundance of biomass in the form of residual material left over from forest harvesting, forest product manufacturing, and as a by-product of the harvesting and processing of agricultural crops. “Alberta companies have recognised the market value of green products and are willing to invest in new opportunities. Researchers supported with Alberta Innovates funding have investigated new and innovative processing methodologies and new bio-products, and are working with private sector companies to bring these to market”, said Steve Price, Executive Director of Bioindustrial Innovation at Alberta Innovates.

This trend began in 2008, when bio-industrial development was elevated as a provincial priority during the economic downturn. “The forest and agriculture sectors were hit hard, and companies operating in Alberta sought out opportunities for diversification”, said Price. Government research organisations, ministries and academic institutions turned their attention to new products and processes utilising Alberta’s vast biomass resources. “Today, Alberta’s focus on climate change mitigation and greenhouse gas reduction has created renewed interest in the bio-economy”, Price added.

Local innovation
Also behind this is Alberta’s strong culture of innovation and entrepreneurship. For example, Alberta Innovates is funded by the Alberta Government to accelerate research and innovation within the province. “We work in lockstep with academia, industry, entrepreneurs and the government in order to transfer knowledge across sectors and address global challenges”, said Price.

The Alberta Bio Future programme is an initiative funded by the province and delivered by Alberta Innovates to support collaborations that target new and improved bio-industrial products and technologies. “The vision driving Alberta Bio Future is economic diversification and stability through the full use of provincial biomass resources, and the development of new revenue streams”, Price explained.

Part of the programme’s focus involves raising awareness, which is why Alberta Innovates has partnered with another provincially funded organisation, Emissions Reduction Alberta, to co-host a cleantech innovation conference, Spark 2017, in Edmonton from November 6-8. The programme will include internationally known speakers and presenters, and is expected to receive attendees from across Canada and beyond.

Uber forced to sack star engineer in legal battle with Google

Posted on 05/31/201706/01/2017 by Ben Debski

Uber has sacked the former head of its autonomous driving division, star engineer Anthony Levandowski, over his refusal to cooperate in a court case relating to the company’s alleged theft of trade secrets from Google.

Levandowski, one of Silicon Valley’s top autonomous vehicle specialists, was a pivotal force in Google’s pioneering self-driving project from its inception in 2009. He left the Google outpost, now known as Waymo, to found his own company called Otto in May 2016.

Levandowski, one of Silicon Valley’s top autonomous vehicle specialists, was a pivotal force in Google’s pioneering self-driving project

Hoping to use Levandowski’s expertise to advance an ambitious plan to roll out driverless cars for its service, Uber bought Otto a few months after it was founded for $700m, and appointed Levandowski as head of its autonomous vehicles division.

The court case revolves around 140,000 documents that Levandowski downloaded before leaving Waymo, an action his old employer alleges amounts to stealing trade secrets. Google claims that technology developed by Waymo is now in use in Uber’s Lidar feature, which enables cars to detect the position of the road and obstructing objects using reflected pulses of light. Uber denies this.

Levandowski is not a defendant in the court case, but was ordered by a judge to hand over the documents in March. He refused, evoking his Fifth Amendment right to avoid self-incrimination, and has been under pressure from Uber to testify ever since.

In a letter filed to a US federal court on May 30, Uber said that it was firing him for failing to comply with an internal deadline to hand over the documents.

Uber had tried to avoid severing Levandowski’s employment, while complying with the investigation, by replacing him as head of the driverless division and preventing him from working directly with Lidar technology. Judge William Alsup criticised the company for its approach, asserting that Levandowski was still a legal liability if he used the documents while in Uber’s employment, even if Uber had no access to them.

The race to put the first self-driving cars on the road is heating up, and skill as specialised as Levandowksi’s in this field is very rare. Competition from established software giants such as Google and Apple, newer start-ups such as Uber, and hardware heavyweight Tesla, has pushed the salaries of autonomous engineering talent skywards, into the tens of millions of dollars according to a New York Times report. Losing Levandowski’s expertise at this stage in development will be a blow to Uber’s efforts to launch a self-driving service.

Top 5 aviation innovations for the future

Posted on 05/30/201703/26/2018 by Ben Debski

Some of the most important adaptations in the history of manned flight occurred in the back of an Ohio bicycle shop in 1896. While R&D has become somewhat more complex since the Wright Brothers’ time, the underlying principle remains the same: innovation is the beating heart of the aerospace industry.

With many customers now willing to look beyond the price of a ticket, particularly on long-haul flights, airlines are investing heavily in efficiency, sustainability and cutting edge technologies to set themselves apart. Here, The New Economy considers five of the most important changes that could shape commercial aviation in the not-so-distant future.

Green power
In a world where air travel makes up between four and nine percent of all man-made greenhouse gases, it is more important than ever to find sustainable ways to propel people through the air. One of the most exciting solutions is electric-powered flight, which sees loud, gas-guzzling jet engines replaced with clean, quiet motors.

Photon-powered planes, such as the Solar Impulse craft that flew around the world last year, have been promising, yet are still too rudimentary to be viable in the short term. For now, battery-powered aircraft offer more realistic remedies. In April, a company called Zanum Aero unveiled plans for a battery-powered commercial jet that is backed by both Boeing and JetBlue Ventures, and should yield a working hybrid prototype by 2020.

Meanwhile, an even more conservative solution to the industry’s carbon conundrum is biofuel, which is not limited by battery storage concerns. In 2012, Dutch airline KLM successfully sent a bio-powered plane on a 6,000-mile journey between Amsterdam and Rio de Janeiro. Although biofuel has not been applied to commercial air travel yet, it certainly could be, with only a few adjustments to existing engine designs.

Smart materials
Even though new types of aeroplane are rapidly emerging, there is nothing to stop innovation within classic models as well. One of the most exciting trends in the aviation sector is the move towards smart materials, which have the potential to cut fuel consumption, boost aerodynamics and make planes faster by giving them stronger, lighter bodywork.

In the long term, graphene is the most exciting of such prospects. At just one atom thick, this modern super metal was discovered at the University of Manchester in 2004 when two scientists isolated it by peeling away layers of graphite. Their Nobel Prize-winning creation has applications everywhere, including in planes, where it can be used to line wings and prevent them taking on water: a job heavier carbon fibre and fibre resins are currently tasked with.

Since 2013, there have been efforts by US regulators to end the prohibition on mobile phone use on planes

Still, graphene remains a long way off, meaning more conventional solutions may be better in the short term. One of the best examples is Boeing’s Microlattice, which is a light, flexible yet extremely strong material that can be used in non-structural parts of the plane such as seats and interior environments. Rather than being a solid metal, it is made of many strands of hollow tubes and is, Boeing says, 99 percent air. As such, the Microlattice is capable of both protecting an egg from a 25-storey drop and sitting on top of a dandelion without breaking the seeds.

Very high flying
In 2004, Richard Branson inaugurated the Virgin Galactic project, with the goal of offering commercial spaceflight to wealthy customers. For the past five years, there have been promises that ‘maybe this year’ things will finally take off. Still, numerous setbacks, including the death of a test pilot in 2015, have given rise to an unwritten rule that its engineers and PR staff should avoid talking about timetabling.

Obstacles aside, the concept behind Virgin Galactic could have huge implications for commercial air travel. Aeroplanes that fly at the very top of the ozone layer can take advantage both of unique gravitational forces and the extremely low drag afforded by the lack of atmosphere to travel very quickly and with relatively little fuel consumption. The result, Branson reckons, is the potential to hop from London to Sydney in two hours flat.

While he also plans for space hotels and cruises to the moon, a more conventional mode of ultra-high commercial flight between destinations on Earth will probably come to fruition first.

In-flight apps
As smartphones have become more commonplace, so too have their many applications. Today, even airlines and aeroplane manufacturers are adapting to accommodate their use in-flight; something that was once completely off-limits.

Last year, Boeing launched trials for an app called vCabin that allows passengers to adjust lighting levels in their immediate vicinity, as well as to call flight attendants, order food and even check if the toilet is free. Meanwhile, phones have also been adapted to interior components such as the Recaro CL6710 business-class seat, which is designed to allow mobile apps to recline the chair back and forth.

Since 2013, there have been efforts by US regulators to end the prohibition on mobile phone use on planes, indicating that there are fewer fears of phantom signals buzzing around and knocking out the aeroplane’s communications system. That said, earlier this year, the FCC’s new Chairman, Ajit Pai, launched a new campaign to cull these efforts and safeguard the existing ban. As such, in-flight apps may not be rolled out for few years. Whether R&D in this area will stop, though, is a different matter, as airlines may still feel incentivised to develop services in anticipation of the prohibition eventually being lifted.

JetSmarter
Since about 2012, various app-based start-ups have emerged with a simple business model aimed squarely at the top end of the market: Uber for private jets. Companies such as Airpooler, Freshjets and Ubair have all promised to ‘democratise’ a $40bn industry that, until they came along, was propped up by just 150,000 customers worldwide.

Some have failed, yet others have been wildly successful, opening the industry to CEOs, businesspeople and others who may have been torn between first class and fully private travel. JetSmarter’s app, which is one of the most popular in the industry, enables users to book a journey on a private jet just one day in advance – quickly, smoothly, and with striking resemblance to ride-hailing services.

With JetSmarter’s basic service, $5,000 a year will buy seats on scheduled journeys between certain European cities. Meanwhile, Stratajet, a similar company, has reported 32 percent of its customers are first-time jet fliers; the average was just one percent annually before it emerged. As flights get cheaper and Uber-for-jets companies continue to surface, this luxurious mode of travel could become just a little less exclusive over the next few years.

JenLab offers a new quality check for corneal transplantation

Posted on 05/30/201705/22/2017 by Ben Debski

Corneal diseases are the second biggest cause of blindness worldwide. When conventional treatments fail, a patient’s sight can only be restored through the transplantation of donated human corneas.

Corneal transplantation is the most common transplantation procedure in the world. However, there are not enough donors to satisfy demand, with the waiting time as long as nine months for a donated cornea. Adding to the problem, a large number of donated samples are unsuitable for transplantation due to the donor’s medical record or due to poor tissue quality, such as a low endothelium cell density. Normally, donated corneas are kept for days, or even weeks, in special containers prior to transplantation.

Corneal transplantation is the most common transplantation procedure in the world

Multiphoton tomography
Currently, quality checks on donated corneas are performed by slit-lamp examination, providing information on the corneal anatomy and morphology. At JenLab, we have developed a novel method with better resolution, offering additional information on cell metabolism, as well as on the structural organisation of stromal collagen. The method is called multiphoton tomography (MPT).

MPT based on near-infrared femtosecond laser technology is already in clinical use to provide non-invasive, label-free optical biopsies of human skin. Current applications include early detection of black skin cancer, evaluation of anti-ageing cosmetics, and measurement of skin thinning in astronauts after long-term space travel.

Now, with funding from the EU’s Horizon 2020 programme (grant 726666, LASER-HISTO, phase 2-SME), JenLab is pioneering the use of MPT for the improved quality check of cornea transplants, using optical metabolic imaging, collagen imaging, and lipid/water imaging. The metabolic state can be assessed through the fluorescence lifetime of autofluorescent coenzymes. The network of collagen fibrils can be imaged via second harmonic generation (SHG), where the infrared laser beam is transferred into weak blue light. Chemical information on the distribution of lipids and water content can be retrieved by rapid Raman (CARS) spectroscopy. CARS also opens a path to studying the pharmacokinetics of eye drops.

Clear view into the cornea
In JenLab’s MTP process, multiple detectors allow the simultaneous measurement of autofluorescence, fluorescence lifetime, SHG and CARS with single photon sensitivity. A typical optical section consisting of 512 x 512 pixels takes just six seconds. The intracellular cells and the collagen network can be seen immediately on the screen.

In a first clinical study at Saarland University Medical Centre, we demonstrated MPT images can be used to characterise the morphology of corneal layers, intratissue cells, the collagen network, and the metabolism of human corneas. Furthermore, a bacterial contamination can be detected.

Interestingly, the metabolism of a variety of intratissue cells has been found to increase with time after donation, whereas the metabolism of the important endothelial cells decreases. Thus, MPT can be used to optimise the storage procedure and to evaluate the right time for transplantation.

We believe that, within the next few years, MPT may be used for high-level quality checks of donated corneas for transplantation in order to increase the number of positive surgical outcomes. Furthermore, in vivo MPT will also very likely be employed on the human eye to diagnose diseases such as diabetes through a direct view into the body via the human transparent window: the cornea.

Kik leverages messaging app to launch cryptocurrency Kin

Posted on 05/26/2017 by Ben Debski

On May 25, Kik Interactive, the company behind one of the world’s most popular messaging apps, unveiled plans to launch a new cryptocurrency called Kin that will be available to users and private investors later this year. The currency will be created on the Ethereum Blockchain, an online public ledger similar to the one used by bitcoin. Kik will issue a certain amount of Kin to each user. The currency will then be used to buy a range of digital services on the Kik messaging app, such as games and live video streams.

Besides these free gifts, Kik will also offer 10 percent of the 10 trillion new digital coins to private buyers in a so-called “initial coin offering”. Kik hopes the value of each coin will rise as the app gains more users and demand for Kin grows. As such, the launch of the currency is an innovative, long-term fundraising move by the company, which hopes to attract investors who are seeking new opportunities.

“Kik will be the largest install base of cryptocurrency users in the world”, CEO Ted Livingston told Bloomberg News. “Kin, on day one, will be the most used cryptocurrency in the world.”

~10m

people hold a material amount of bitcoin

~300m

people are members of Kik

In January, an ARK Invest/Coinbase report revealed roughly 10 million people worldwide hold a material amount of bitcoin. By comparison, Kik has roughly 300 million members. With the addition of public investors, the coins themselves would indeed be very widely distributed. Furthermore, quirky new virtual currencies like Kin, as opposed to established ones such as bitcoin, may be more appealing to Kik’s specific user base, which is generally comprised of teenagers and other young Millennials.

That said, beyond “day one”, it is hard to guess how regularly the coins themselves may be used. Kik has just 15 million active monthly users, as opposed to Facebook’s two billion, meaning relatively few people are likely to use the coins to purchase services within the app at first.

If the currency does prove popular, app developers could potentially reap substantial benefits. At present, companies that create apps for the likes of Facebook and Google rely heavily on advertising revenue to stay viable. If app users began using Kin, app creators would see direct revenues and would have more scope to think up imaginative ways to get people to buy their products.

By taking the focus away from advertising revenues on a few big websites, Kik hopes Kin will help to decentralise the digital economy. Although this remains a long-term vision, it does have potential to come to fruition as other cryptocurrencies such as bitcoin continue to emerge and rise in value.

AlphaGo defeats world Go champion Ke Jie

Posted on 05/25/2017 by Ben Debski

AlphaGo – an artificial intelligence program built by researchers at DeepMind, a British AI company acquired by Google (prior to its restructuring) in 2014 for $500m – has beaten Chinese world champion Ke Jie in a tournament of the notoriously difficult board game Go.

Last year, AlphaGo became the first AI to beat a human master, winning four of five games against the legendary Lee Se-dol, in a feat most experts assumed was many years further away. Now, by claiming victory in the second of three games scheduled against the world’s greatest living player, AlphaGo demonstrates the rapid progress of AI developments at DeepMind.

Beloved by mathematicians due to its complexity, Go is a two player game that involves placing black and white counters on a grid to seal off territories. It is significantly more difficult for algorithms to master than other board games, such as chess, due to the enormous number of potential moves.

Algorithms are fed enormous datasets of past games and develop their own formulation of the game’s rules

A chessboard has 400 possible initial compositions; a computer can quickly simulate all the possible game scenarios for each of these and select the winning move, easily beating any human with what is known as the ‘brute force’ technique. Go, on the other hand, has 129,960 possible beginnings. Running an old fashioned ‘brute force’ on this enormous number is far too computationally expensive.

To teach a computer to play Go, researchers instead use machine learning; algorithms are fed enormous datasets of past human games and develop their own formulation of the game’s rules. Rather than relying solely on human training sets, AlphaGo also learned partly by playing against itself.

The win is an opportunity for DeepMind to showcase this significant development, which could potentially be applied to teach computers how to do many tasks, such as planning routes for self-driving cars, or sifting through vast databases to find potential drug molecules.

The high profile tournament held in the Chinese city of Wuzhen is also a PR opportunity for Google, which is attempting to reintroduce services to China. Google exited China in 2010, primarily due to a row over the country’s repressive censorship rules, but is now seeking access to the country’s massive market of internet users; local rivals providing search engine and email services have thrived in Google’s absence.

In a statement after the match, Jei declared he would never again risk the humiliation of defeat by competing against AlphaGo, describing the AI as, “like a god of a Go player”.

Google tracks credit card spending to prove digital ads work

Posted on 05/25/2017 by Ben Debski

Internet behemoth Google is planning to track credit and debit card spending at brick-and-mortar stores, in order to gauge how online advertisements influence sales. A new service, Google Attribution, will allow advertisers to see whether their online campaigns succeed in generating offline sales.

According to a blog post announcing the service, Google already has access to around 70 percent of all credit and debit card transactions in the US. By mining this data, the new feature matches up customers’ in-store purchases with their online activity.

“For the first time, Google Attribution makes it possible for every marketer to measure the impact of their marketing across devices and cross-channel – all in one place”, the announcement said.

Google is now the world’s biggest online advertising network, taking in a staggering $79bn in revenue last year. Using features such as Google Analytics, AdWords and DoubleClick Search, the search giant can effectively mine internet user data and examine the link between online adverts and what has been searched for on Google. The company can also collect location data from users’ phones, enabling it to see where exactly customers are choosing to shop.

The search giant can effectively mine internet user data and examine the link between online adverts and what has been searched for on Google

Google Attribution is not the company’s first foray into tracking customer’s offline habits. Google first started tracking its users’ location data in 2014, introducing store visit measurements to measure the link between in-store traffic and online advertising. Last year, Google also began incorporating adverts into its Google Maps service in order to attract users to nearby stores. In the three years since Google first began mining location data, its advertisers have measured over five billion in-store visits.

“Machine learning is key to measuring the consumer journeys that now span multiple devices and channels across both the digital and physical world”, Google wrote in its blog post.

The announcement has already raised privacy concerns among critics, who are sceptical of Google’s promises to protect customer anonymity during the credit card tracking process. However, Google insists it is committed to protecting user privacy, and maintains no location data will be shared with advertisers. Users worried about security can also delete their location history, and disable personification for all Google ads by adjusting their Google Account settings.

Sulzer Pumpen explains how retrofitting trumps the repair/replace dichotomy

Posted on 05/25/201705/22/2017 by Ben Debski

Pump operators are often confronted with challenges, such as the decreasing reliability or efficiency of their equipment. These operational challenges can be caused by wear over time or by changed operating conditions, e.g. variations in well pressure in oil production or an increasing need for flexibility in power generation.

In such a situation, operators must either repair or retrofit their equipment. Repairs restore the original pump and remedy only the symptoms of the problem. By contrast, retrofits are able to eliminate the root causes of the problem, thereby sustainably improving the reliability and efficiency of existing pumps in operation. Retrofit solutions enable pump operators to keep pace with continuously changing requirements. The mean times between repairs and the operational life of pumps can be drastically increased, with attractive payback periods ensuring a quick return on investment.

Changing conditions are a huge challenge for pump operators. Not only can operating costs skyrocket, but the risk of production downtime can too

Sulzer can perform retrofits on virtually any pump, regardless of its age or original equipment manufacturer. With its global competence and service centre network, Sulzer provides retrofit solutions and 24/7 support for customers worldwide. Sulzer’s broad expertise – which includes advanced simulation capabilities on mechanical integrity and hydraulic design, expertise in materials and coatings, and excellent proficiency in reverse engineering – is the basis for successful and sustainable retrofit solutions, to the benefit of pump operators worldwide.

Case in point
Changing conditions are a huge challenge for pump operators. Not only can operating costs skyrocket, but the risk of production downtime can too, which is unacceptable, especially in critical businesses like oil and gas, power, and water. The example of a water injection pump retrofit shows how Sulzer can help to ensure reliable operation and reduce energy consumption.

A major oil company runs an offshore platform on the Norwegian continental shelf in the North Sea. On this platform, two Sulzer HPcp BB5 pumps have been in operation since 2002. They reinject water produced by the platform into the well to increase the pressure in the oil field and enhance oil production. These pumps were designed for a flow of 331 cubic metres per hour and a head of 1,558 metres. One of the pumps served as a standby unit in case of failure, while the other was in operation. In the years following the installation, it became apparent that the well required less than two-thirds of the originally specified discharge pressure. That meant the pump needed to be throttled, and a lot of energy was lost. In 2009, the situation deteriorated further because the process conditions changed once again. At that point, the required pump flow doubled, while the required pump head further decreased. A single pump could not achieve the higher capacity by itself. However, operating both pumps in parallel was also not an option; without a standby unit, a failure would lead to a considerable production loss. That risk was not one the company was prepared to take.

The operator asked Sulzer to evaluate the possibility of rerating these pumps to provide more flow so the injection requirements could be met with only one pump. During these discussions, the desired duty flow for each pump was set at 660 cubic metres per hour (or as close as possible) at a discharge pressure of approximately 100 barg (pump head 840 metres, suction pressure 10 barg).

Tailored retrofit
Sulzer conducted a hydraulic study at one of its global retrofit competence centres in the UK. The company’s engineers determined the optimal hydraulic design for the confines of the existing barrel casing, while reusing as many of the existing cartridge components as possible. The components retained from the existing design included mechanical seals, bearings, and coupling assemblies, as well as the electric motor.

Sulzer had several hydraulic designs that were geometrically similar to the one required for this application, but they were too large to fit this injection pump barrel. However, by adopting the proven laws of dynamic similitude, Sulzer physically scaled down the designs so the operating conditions were satisfied. This approach had the advantage of allowing the engineers to reliably predict the new, scaled performance from experience. The effects of incremental changes to this basis are well understood, and allow the base performance curve to be modified to suit individual applications. To accommodate the flow increase, Sulzer had to increase the impeller outlet passage width, which also required an increase of the distance between each stage. Sulzer replaced the following components: all impellers, all series stage diffusers, the last-stage diffuser, the pump shaft, and the balance drum and liner.

Because of the higher velocities in the pump suction nozzle caused by the increase in duty flow, the pump required a new advanced suction inlet casing design. Sulzer conducted a full computational fluid dynamics analysis on this new design to ensure an ideal distribution of flow was achieved from the inlet to the suction impeller eye. To verify the integrity of the pump mechanics, Sulzer performed a full rotor dynamic analysis at the retrofit centre.

Energy savings
Performance testing confirmed the retrofitted pump met the new duty conditions (in compliance with the API 610 technical standard). The retrofit was completed using a reasonable number of the existing cartridge components and without modifying the existing motor. The new cartridges were installed in the existing barrel casings after only one week per cartridge. None of the piping or major site ancillary equipment needed modification. Since the retrofit, the customer has been able to achieve the required water injection performance with one pump alone. One pump is therefore left as a standby unit, and the risk of injection failure – and consequent production loss – is minimised.

The duty flow required to achieve 100 percent operation with one pump was achieved with a significant reduction in pump discharge pressure, meaning surplus pressure no longer has to be throttled down across valves, saving a significant amount of energy. To achieve 660 cubic metres per hour with the two existing pumps operating together, 3,804 kW of absorbed power at the pump coupling would be required. The retrofitted cartridge requires only 1,875 kW to achieve the same flow in singular operation. The energy saving of 1,929 kW in input power amounts to more than 16.8m kWh annually. At an energy unit cost of $0.06 per kWh, the recurring savings translate into more than $1m per year. Thus, the payback period of this retrofit was less than one year. After a Sulzer retrofit, pumps are performance tested at one of Sulzer’s test beds to ensure optimum operation.

Samsung Galaxy S8 iris scanner hacked

Posted on 05/24/201705/24/2017 by Ben Debski

Iris scanning technology may seem like a safe bet for keeping a smartphone secure, but with only a photograph, printer and contact lens, hackers have proven the Samsung Galaxy S8’s system can be easily fooled. This hack proves biometric security systems, or at least those found in consumer products, still have a long way to go before users can confidently replace the traditional password.

In a video released by hacker Jan Krissler, also known as Starbug, a photograph taken using the infrared mode of a standard digital camera is the only personal information needed to perform the bypass. The photo is printed out and a contact lens is stuck over the iris to give the eye an authentic reflective sheen. When held up to the camera, this is enough for the Galaxy S8 to register the image as the smartphone’s owner.

Biometric security systems, or at least those found in consumer products, still have a long way to go

This is not the only biometric security flaw found in the Galaxy S8. In March, the smartphone’s facial scanning technology was fooled with only a photograph, the Verge reported. In response to this, Samsung said facial recognition is a convenient way to unlock your phone and not a complete security feature.

Krissler has a long history of finding flaws in biometric security features. In 2013, he demonstrated a way to bypass the iPhone’s then-new fingerprint scanner by using a detailed photograph of a person’s fingerprint to create a latex mould. In 2014, he claimed to have reproduced German defence minister Ursula von der Leyen’s fingerprint using only photos taken at public events like press conferences. While these techniques are currently impractical for the average hacker, the demonstrations do prove biometric security systems are far from fool proof.

Finding a secure and effective alternative to passwords has been a steep challenge. While biometrics may be convenient, if a person’s details are compromised they cannot be changed or replaced. Additionally, biometric security features are constantly publicly displayed, unless a person is wearing sunglasses and gloves.

While passwords may be inconvenient and suffer the occasional large-scale breach, they still feature the best mix of effectiveness and convenience for security measures.

Hong Kong authorities arrest Uber drivers

Posted on 05/23/201706/14/2017 by Ben Debski

On May 23, Hong Kong authorities announced the arrest of 21 Uber drivers, the latest legal action in a prolonged crackdown on the taxi app. The arrests, resulting from an undercover operation that began in May, were made for illegally driving a car for hire and driving without third-party insurance.

Hong Kong law states cars for hire must be equipped with a permit and third-party insurance. Authorities say ensuring drivers do not break city laws is Uber’s responsibility, however the company claims it has a ride-sharing insurance policy of up to HKD 100m ($1,300,000) per trip, which complies with Hong Kong’s insurance regulations.

An Uber spokesman said the company was ”extremely disappointed” by the action, and affirmed Uber’s commitment to providing “assistance, including legal support” to the 21 drivers arrested.

In March, Hong Kong authorities fined five drivers HKD 10,000 ($1,300), confiscated their smartphones and revoked their licences for a year

This is not the first time Uber drivers in Hong Kong have faced legal action. In March, Hong Kong authorities fined five drivers HKD 10,000 ($1,300), confiscated their smartphones and revoked their licences for a year. Uber worked with the drivers to successfully force officials to suspend the license ban. Hong Kong’s decision to punish Uber drivers rather than fining the company demonstrates the difficulty in developing robust legal structures to adequately regulate international tech companies.

This action is just the latest in a string of legal challenges faced by the embattled taxi firm in various countries. Last month in the US, a former driver of rival app Lyft filed a suit accusing Uber of implementing a programme called ‘Hell’ to poach Lyft drivers. Uber allegedly tracked which of its drivers were working across both apps and prioritised sending passengers to those also using Lyft, in the hope of coaxing them to abandon Lyft for the seemingly more profitable Uber.

Earlier this year The New York Times reported on a tool called ‘Greyball’, used by Uber to deceive authorities in cities such as Boston, Paris and Las Vegas, where the app is heavily restricted or banned. Greyball uses data to identify officials attempting to hail an Uber, scuppering undercover investigations by presenting them with a fake version of the app populated by ‘ghost’ cars.

Uber’s company culture is also under scrutiny following allegations by several former female employees of endemic sexism. However, the biggest challenge faced by Uber is from taxi industry groups, which have campaigned for transportation network companies such as Uber to be treated as illegal taxi operations. Uber is currently involved in numerous suits across the globe regarding the legality of transportation network companies.

Entrepreneurship thrives in Israel

Posted on 05/22/201705/22/2017 by Ben Debski

For multinational manufacturers, there is often both a physical and logistical distance between the development of a product and its construction. Devices may be designed and built at opposite ends of the world, making feedback and quick iterations in the development process incredibly difficult. In today’s business environment, any chance to accelerate business chains is therefore a golden opportunity. For this reason many companies are looking to bring development and manufacturing much closer together.

Israel has emerged as a destination in which a business can harness a flourishing and innovative development community, while also having access to world-leading manufacturing centres. As a result, more and more multinational companies are flocking to the country to take advantage of its business environment. In light of this trend, The New Economy spoke to Eyal Eliezer, Head of Strategy at Invest in Israel, about the many opportunities that exist for multinational companies that decide to build a presence in Israel.

In recent years, Israel has become a global hub for innovation, thanks to an enabling ecosystem that allows innovation to flourish

Can you give us an idea of the shape of Israel’s economy?
Israel is an increasingly strong, resilient and open economy. For consecutive years, Israel has seen significant GDP growth above that of the OECD and the US, and our unemployment rate of less than five percent is among the lowest in the world.

Despite the regional geopolitical challenges, the Israeli economy has been identified as one of the world’s healthiest and most secure. As an indication of this, all major ratings agencies have recently raised Israel’s credit rating to A+.

How has Israel’s economy – and in particular its technology sector – evolved over the last five years?
I would say that Israel, and especially its tech sector, has changed its orientation from a start-up nation to a scale-up nation. In the start-up phase, companies with innovative technologies were developing products while aiming at a relatively quick exit, such as a sale to a foreign multinational. This was good for the ecosystem in the beginning, and this is part of the reason there are more than 300 R&D centres in Israel today, as these foreign companies often converted their expertise into R&D centres rather than just
taking the IP and leaving.

Today, we still have thousands of start-ups, but we also have more examples of mature companies led by seasoned entrepreneurs, with the patience to build and grow. For example, according to research firm IVC, in 2016 late-stage companies raised more than four times the amount they did in 2012. This does not dilute the potential for foreign investment, but adds additional flavour to it; you can now partner with more developed companies and undertake activities in any part of the product cycle.

What makes Israel a good investment destination, and what role does Invest in Israel play in that?
In recent years, Israel has become a global hub for innovation, thanks to an enabling ecosystem that allows innovation to flourish. The cornerstones of this ecosystem are world-class academia, a talented workforce, the presence of hundreds of multinational R&D centres, supportive government policy, very active VC funding and an entrepreneurial culture. This spirit of innovation and entrepreneurship is not just confined to R&D, but pervades other sectors such as manufacturing and, more generally, the whole business ethos of the country.

Invest in Israel offers end-to-end services for interested parties. We are a one-stop shop for foreign investment in Israel. If you are an investor or a multinational company, we will engage with you during conferences both abroad and in Israel, supply information about the Israeli ecosystem, escort you during your visit, answer follow-up questions, help you navigate the Israeli Government and regulations, and much more. In addition, we will be here to assist you even after you have made your investment, in order to ensure that you have the very best experience.

Can you explain the country’s ‘innovation box’ regime?
The innovation box comes as a response to the base erosion and profit shifting (BEPS) project, a G20-led initiative that was designed to address governmental concerns about the potential for multinational corporations to direct profits where they are subject to favourable tax treatment. The essence of guidelines on this issue states that intercompany remuneration of the IP owner should be in line with the locations of its actual functions, assets and risk profile.

The Israeli Government believes that this regime change is an important opportunity for multinationals operating in Israel, and is determined to take the necessary steps to facilitate this opportunity. Following this determination, Israel has launched a new IP tax regime, as part of the 2017-18 state budget. Under the regime, a six percent corporate income tax rate and four percent withholding tax on dividends are expected to apply to qualifying companies with consolidated revenues of over $2.5bn. These companies will be given a commitment of rate stability for at least 10 years, if certain conditions are met.

Other qualifying companies would be subject to a 7.5-12 percent corporate income tax, with lower rates for companies set up in development regions and four percent dividend withholding tax.

We believe that the combination of the new innovation box and the already thriving innovation ecosystem is a very strong value proposition for multinationals; both for those that already have a presence in Israel and those that don’t. The opportunity lies in increasing the value-creating footprint in Israel, alongside shifting IP registration to Israel. Global companies following this path can include Israel’s innovation advantages within their enterprise, as well as enjoying an attractive way of adhering to the new tax regime.

Could you tell us more about Israel’s advanced manufacturing industry?
One of the main reasons that many multinationals have moved to Israel for advanced manufacturing is because the country is a hub for many of their R&D centres. The big plus those companies enjoy is much closer feedback between R&D and manufacturing, thanks to physical proximity, which makes the production process much more dynamic and allows for a far more efficient ‘learning by making’ process.

In addition, the vibrant start-up ecosystem in Israel is producing many technologies that enable next-generation manufacturing in areas such as the Internet of Things, big data and cybersecurity. Furthermore, Israel holds a strategic geographical position in terms of market access, as the country is located at the meeting point of Europe, Asia and Africa. Our country is situated close to the European market and benefits from an open EU-Israel trade agreement. Our relative proximity to Asian markets, which are enjoying spectacular growth, speaks for itself. The emerging African market is also an option.

What future role does foreign investment have to play in Israel’s economy?
We expect an even stronger acknowledgment of Israel as a global innovation hub and higher amounts of capital flowing here. Between 2013 and 2016, the amount of capital raised by Israeli hi-tech companies almost doubled. This flow of capital not only allows more start-ups to enter the space, it also represents a trend of more mature companies that not only aim at a quick M&A process, but are also becoming global enterprises themselves.

We also see an important trend of diversification in terms of sources. A prominent example is China. It is estimated that, in 2016, the vast majority of Israeli venture capital funds had at least one Chinese investor in their financing rounds. This diversification trend makes Israeli innovation more global, helping it to penetrate new markets and become more resilient. In the coming years, we expect more companies to open advanced manufacturing facilities in Israel in order to leverage the R&D-manufacturing proximity advantage. We expect more multinationals to register their IP here, alongside shifting even more value-creating activity in regard to the BEPS guidelines.