University project gets $800,000 grant

Press, 25 November 1982, Page 28

University project gets $800,000 grant

PA . Hamilton The Government will invest $BOO,OOO in a University of Waikato microbiological research project expected to earn millions of dollars in overseas exchange. According to the Minister of Science and Technology, Dr Shearer, the grant could be followed by a $lO million investment from two American companies — and a new Hamilton-based industry. The $BOO,OOO has : been allocated to build; and equip a laboratory, specifically for research into extreme thermophiles 'r-j heat-resistant bacteria with potential in a wide, range of hew and existing industries.

The bacteria were discovered in Rotorua hot pools by two university scientists, and the export potential of the Organisms and their enzymes resulted in a unique business partnership between the uni- . versity and the Development Finance Corporation. Since then, a number of research contracts have been placed with the team, includ- < mg $250,000 from British Petroleum (UK), Ltd to study i; the bacteria’s ability to ex- 5 tract oil from spent wells. A case for financial supt ; .' .. port was put before the Government two. months ago by the uhiversity-D.F.C. part- j] nership, known as 'N.Z.;;Enzymes, Ltd. • . ' !

. The plea, was for $700,000 to build, a laboratory, plus almost $2. million to cover operating costs over the next five years.' Dr Shearer said that the money would be transferred to thg: university from the Department, of Scientific and Industrial Research -..vote, which would mean deferring part’, of that department’s buiidingiprogrammd. i . “It- was. a^matfer,of decidr * . ing what was more important,', and I am convinced the thermophile project: is,” he i said. ' >■ - i . The project’s .' operating ;: ■budget, however, would have A, id’ come from whatever rela- j tionship the university i

formed' with' -/private enterprise, he said. ’ , . Already, two American companies — Bendex, involved in a large number of enterprises including biotechnology, and Genex, a company specialising in genetic engineering — had shown interest. They had made a joint approach on the university project, and would be back in New Zealand , next month to discuss future moves. Z >• Dr Shearer said that. an investment as high as 'slo million was likely, and there jvere,.indications that an industry based on the versatile bacteria-could be established at. Tp Rapa; in Hamilton.