Space quest Nautel is an international exporter of radio transmitters and a leader in digital technology. What’s next? Developing products that could revolutionize space travel by CAROL MOREIRA phototography by SANDOR FIZLI H ackett’s Cove is a tiny fishing village on the South Shore of Nova Scotia. It’s a quiet spot; the only views are of the tree-studded coastline and the little islands that border this part of the Atlantic Ocean. The only main road leads to the famous but remote and scenic attraction of Peggy’s Cove. So it’s no surprise to learn that when Denis Colville launched his engineering company, Nautel Ltd., almost 40 years ago, he figured if business didn’t work out, he could sell the premises as an oceanside home. Fortunately things did work out, and today Nautel (www.nautel.com) is a well-known producer of radio transmitters and is now on the cusp of breaking into the space industry. Nautel staff is buzzing after an unexpected approach just over a year and a half ago by Texas–based Ad Astra Rocket, a company that is developing plasma rocket-propulsion systems that are expected to 12 OPEN TO THE WORLD, AUTUMN 2007 John Whyte (left) and Tim Hardy at Nautel’s seaside location in Hackett’s Cove. OPEN TO THE WORLD, AUTUMN 2007 13 revolutionize space travel. Ad Astra approached Nautel after learning about its expertise in radio-frequency amplification. Nautel exports radio transmitters to 170 countries around the world, using the latest digital technology and producing transmitters that are compatible with all of the digital-transmission methods being used internationally. Digital radio is currently poised to become the greatest revolution in radio broadcasting since the introduction of The technology will mean that spacecraft and satellites will be much more mobile 14 OPEN TO THE WORLD, AUTUMN 2007 FM. The digital signal delivers high-quality audio and allows up to three stations to be transmitted on one signal. It also provides great efficiency; a digital broadcaster can serve a broadcast area using only 1/100th the power required with analog (AM and FM) broadcasting. With this in mind, Ad Astra asked Nautel to create and develop radio-frequency amplifiers for plasma generation and acceleration in the propulsion systems of electric spacecraft. Nautel staff members have been only too happy to take on the challenge. “This technology represents a quantum step forward in spacecraft propulsion. We’re doing world-class work. It is very exciting to be involved,” says Tim Hardy, Nautel’s head of research. “We’ve never developed a product for space before. There’s a lot of new learning. It’s an important step forward in a core technology we have. We’re branching out and applying technology we understand in new ways.” John Whyte, Nautel’s marketing manager, describes the project with Ad Astra as Nautel’s “Honda racing program” because of the way it is pushing the company’s engineering limits. Seven of the company’s 34 research and development staff members are part of the work that involves converting power from solar cells to radio-frequency power, which are then relayed to an antenna that heats plasma. Plasmas are electrically charged fluids that can be heated to extreme temperatures by radio waves and are controlled and guided by strong magnetic fields. The temperature of a plasma starts at about 10,000 centigrade, but present-day laboratory plasmas can be 1,000 times hotter. These temperatures are comparable to those in the interior of the sun. “No known material could survive contact with such plasma, but a magnetic channel can be built that guides the plasma so that it never has to touch material walls,” says Hardy. “Ad Astra uses extremely intense magnetic fields, generated by superconducting magnets, to create a kind of magnetic pipe or nozzle.” Whyte compared the technology to building a microwave oven to cook plasma in space. The device has to be small, lightweight, and hard enough to withstand space travel. When developed, the technology will mean that spacecraft and satellites will be much more mobile because propulsion will be far greater. For example, a mission to Mars would currently take about a year, but the new technology would allow it to be done in one month. Hardy says the cost of keeping the space station in orbit could be greatly reduced because the amount of fuel required could be cut from around 7,000 kilograms a year to around 120 kilograms, with fuel costing $20,000 per kilogram. That’s a savings of 98%, or a potential savings of $1 billion over an eight-year period. “Electric rockets are much more fuel efficient because they use electricity instead of chemical combustion to produce higher-velocity Having so many long-term employees helps with quality control exhaust gases,” Hardy explains. Adds Whyte: “It’s pretty crude the way rockets work today. It’s just a mass of chemicals burning. Plasma will revolutionize space travel. Plasma rockets have exhaust velocities way above those achievable by chemicals, so fuel consumption is very low.” ONE-STOP SHOPPING Whyte says that Nautel is well placed to work on Ad Astra’s specialized project because Nautel does almost everything in-house, so the company’s standards of quality control are first rate. “We’re very innovative with production,” says Whyte. “Lots of companies outsource aspects of production, but we do almost all of it in-house. It gives us control over quality and the ability to tackle very specialized development.” The original building that Colville thought he might one day sell is now being used to house administration, marketing, and sales staff. The former residence is connected by a tunnel to a large green building, complete with an annex that houses a fully integrated, ISO 9001:2000– certified manufacturing facility. “Our staff of 150 works here on everything from R&D, metal stamping, painting, machining, circuit-board assembly, testing, and packing,” says Whyte. “It’s all under our roof.” The wooden boxes that transport Nautel’s products are also made in this complex of buildings. Even the copper coils inside the transmitters are made here; only the little fans nestling nearby them are not. There’s a strong sense of community as employees work on all of the different areas. On one floor, women are moulding piles of delicate, spaghetti-like, co-axle wires for use in circuit boards, while nearby men work on casting many types of metal casings. Having so many long-term employees aids quality control too; until staff recently started to retire, workers in production had an accumulated 500 years of service. Nautel is so much a part of the local scene that it even has its own radio station for research use that transmits to the area. There’s also a fully operational Nautel subsidiary, staffed by 25 employees, in Maine. “By using two facilities, we increase our scheduling flexibility,” says Whyte, OPEN TO THE WORLD, AUTUMN 2007 15 “At Nautel we have a strong culture of self-funding our growth” — Tim Hardy, head of research “guaranteeing on-time shipments to customers.” The partnership with Ad Astra is producing palpable excitement at Nautel because it’s allowing the company to diversify its core business, which is already growing well. Nautel’s revenue is currently in the $20-million to $30million range. Over the past three years, Nautel’s revenues have grown by a total of 50%. The company produces about 30 products, including medium-wave AM and FM radio broadcast transmitters (analog and digital); navigational radio beacons; Differential Global Positioning System (DGPS) transmitters; medium-frequency telegraph and NAVTEX transmitters; and amplifiers for dielectric high-frequency heating applications. The room-sized NA 300 kilowatt AM transmitter is the biggest transmitter it makes. “We’re recognizing we have a relatively narrow market focus,” says Hardy. “The broadcast-radio business is a big part of our revenue, and that makes us a bit dependent on that particular industry. This is a way of diversifying. It’s hard for any business to jump into a new field, but we’re pushing back the boundaries.” The space-linked R&D work has received $1.8 million from the Atlantic Canada Opportunities Agency’s (ACOA) Atlantic Innovation Fund. Hardy notes that repayment of the loan was contingent on making money from the new technology, which he is confident that Nautel will ultimately do. At the moment, Nautel is in the proof-of-concept phase (building a model with mainstream parts to prove their engineers can do the work). Nautel and Ad Astra hope 16 OPEN TO THE WORLD, AUTUMN 2007 that by 2011, the new plasma-propulsion system will be tested on the International Space Station. “It’s higher risk and potentially a higher return on investment, although it will be a few years before we see any revenue,” says Hardy. “Right now we’re working on the performance matrix, which requires small size, high efficiency. When we’ve learned to do this for the customer, we can use the technology in other, more mainstream businesses, such as our core broadcast business.” Nautel hopes to eventually make money from other spin-offs; there are many plasma applications used in the industry, such as semi-conductor processing, waste disposal, and coatings on glass. “At Nautel we have a strong culture of self-funding our growth. It’s rare for us to go out and look for funding,” says Hardy, of the loan from ACOA. “Nautel understands the importance of R&D. Annually, about 10% of our revenue goes toward R&D. The ACOA funding considerably reduces the risk; it would be difficult for us to entirely fund a major project like this at this level of risk.” Franklin Chang Diaz, Ad Astra’s chair and CEO, is pleased to have forged the partnership. “Nautel’s compact and lightweight high-power RF technology is critical to a successful space application,” he says. “In addition, the low-voltage requirements of these RF transmitters make them compatible with the voltage output of space-borne solar-power arrays, eliminating costly and bulky power transformers and other intermediate power-conditioning equipment.” ■ Culture. Art. Living. Subscribe today. www.halifaxmag.com
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