Formed under its exclusive agreement with the University of Sheffield, university IP commercialisation company Fusion IP has announced a new start-up, Seren Photonics, in which it has a 60% holding.

Founded on the work of Dr Tao Wang, reader in the Department of Electronic and Electrical Engineering, University of Sheffield, Seren Photonics will produce ultrahigh efficient light-emitting diodes (LEDs).

Wang is working on III-nitride based optoelectronic devices, and leading a research team that has strong links with the Engineering and Physical Sciences Research Council National Centre for III-V Technogies located in Sheffield.

Wang's processing technique combines nanoscience and fundamental physics to greatly increase the efficiency at which an LED converts energy into light. Demonstrations of the technology have so far resulted in a doubling of the light output compared to untreated devices.

Seren Photonics' technology is targeted at the white LED market, for applications such as TV back lighting and domestic illumination. Worth an estimated $5bn at present, the market is forecast to grow to $12bn by 2013.

"Seren Photonics hopes to unlock the full potential of nitride-based, ultrahigh efficient, white LEDs and complete the illumination revolution, we are currently experiencing," said Wang.

Dr Carl Griffiths, managing director of Seren Photonics, added: "Seren Photonics has the potential to revolutionise the illumination markets, be a key contributor to reducing green house gas emissions and realise a considerable return for all of its shareholders.”