A COMPANY that grew out of research at one of the region's universities is close to its first major deal, after only two months in business.

Bioniqs, which started out at York University, has produced a range of environmentally-friendly solvents.

The company chairman is Dr Gwyn Humphreys, who is hoping to repeat the success he enjoyed with Bradford Particle Design, a pharmaceutical technology company from the University of Bradford which he sold in 2001 to San Francisco-based Inhale Therapeutic Systems for $200m.

Professor Neil Bruce, non-executive director, said: "We think we have some really novel technology.

"It is a completely new class of solvents that could impact on a wide range of areas."

Most solvents used in industry, such as hexane and chloroform, are toxic and can cause pollution.

Prof Bruce developed the range with his colleague, company chief scientific officer Dr Adam Walker.

So far, they have produced more than 200 non-toxic, biodegradable and non-flammable solvents.

They can be used in applications such as lubrication, sensor technologies, hydraulic fluids and extraction.

The company, set up in March, is close to a deal that would lead to mainstream production.

"We are in negotiations with a blue-chip chemical company to develop a manufacturing partnership and produce on a very large scale," said Prof Bruce.

"There is a significant amount of interest.

"Now we have to take that and turn it into deals and contracts."

The pair set up the company out of the Centre For Novel Agricultural Products at York, with support from intellectual property businesses Amaethon and IP2IPO.

It is based in the university's £22m biocentre, at the Science Park on the city's outskirts.

The solvents are made from ionic liquids - essentially salts chemically altered to become molten at room temperature.

Certain ionic liquids can dissolve DNA, cellulose and even coal and rocks, without attacking their glass, metal or plastic containers.

By incorporating hydromimetic (water-like) properties, they allow proteins, such as enzymes, to function in the near absence of water.

This offers a wide range of opportunities for biocatalytic processes in industry, particularly in the chemical, pharmaceutical, paper and textile sectors.

"We came at it from a biological perspective, looking at ways of getting biological systems to work in an environment that doesn't contain water," said Prof Bruce.

"Getting enzymes to work in this alien environment means you can make things that you cannot do using existing processes.

"But the solvents may end up being a much more profitable business for Bioniqs."