Ming Qi (PhD/CBE, ’13) was a PhD student in the Department of Chemical and Biomolecular Engineering at the University of Tennessee when he made a serendipitous discovery that would lead to launching a startup company.

Qi was researching metal air batteries as a member of CBE Professor Tom Zawodzinski’s group. During that time, he unearthed a catalyst that was very efficient at making hydrogen peroxide.

Qi, who was interested in entrepreneurship, saw the potential to develop a breakthrough product that could revolutionize traditional chemical production. After graduating from UT, he launched Phase Two Chemicals and filled the company workforce with fellow UT CBE graduates.

Now with facilities in Massachusetts, Shanghai, China and Shaoxing, China, Phase Two Chemicals has pioneered on-site, on-demand electrochemical hydrogen peroxide production that is cost effective, safe, and environmentally friendly. The company largely supplies hydrogen peroxide equipment to the pulp and paper mills. Hydrogen peroxide is an important chemical in the pulp and paper industry, where it is used as an environmentally friendly bleaching agent.

Phase Two Chemicals utilizes a proprietary phase dispersion electrode (PDE). Through the company’s electrochemical process, the need for fossil fuels is eliminated, reducing the environmental impact in comparison with conventional hydrogen peroxide production processes. Because the system is located at the pulp and paper mill, shipping and handling isn’t necessary. The company has commercially operating units installed in North America and Asia and is now expanding its efforts into South America and Europe.

“Phase Two Chemicals’ technology is a fundamentally different way of making hydrogen peroxide. Consuming only oxygen from the air, water, and electricity, it is an environmentally benign and inherently carbon-free process depending on the source of electricity,” said Qi, Phase Two Chemicals’ chief executive officer. “We can deliver hydrogen peroxide with reduced environmental impact without a ‘green premium.’ In fact, our process lowers the cost of this crucial chemical compared to the conventional pollutive process.”

Volunteer Ties that Bind

Qi is one of five UT graduates working at Phase Two Chemicals. Alan Pezeshki (PhD/CBE, ’16), who is also an alumnus of UT’s Bredesen Center, is the chief technology officer, Mengqi Zhang (PhD/CBE, ’15) is the director of manufacturing, Asa Roy (PhD/Breseden ESE,’18) is a senior research engineer, and Matt Sodl (BS/CBE, ’17) is a research engineer.

“UT’s training in electrochemistry and electrochemical systems provided a strong basis for the team to develop its innovative technology, which is now providing value in the chemical industry.” Zhang said, “We work together globally, overcoming time zones and culture differences, to meet the needs of customers all around the world, while also ourselves being an international team.”

Pezeshki was given the opportunity to learn electrochemistry and work in electrochemical technologies at UT while working in the Electrochemical Energy Storage and Conversion Laboratory under the direction of his PhD advisor Matthew Mench, now the dean and Wayne T. Davis Dean’s Chair for TCE. When looking for post-graduate employment, Pezeshki consulted Zawodzinski, who told Pezeshki about Phase Two Chemicals. Pezeshki joined less than a month after completing his doctoral work.

“We started in the lab at true bench scale—our test cells could fit in the palm of your hand,” Pezeshki said. “Now, we’ve gotten to the point where we have commercial systems installed comprised of multiple 40-foot shipping container-sized units. We’ve taken the technology from essentially nothing to something tangible that provides real-world value.”

Although building a company from the ground up is demanding, the three co-founders have found the process extremely rewarding and stimulating.

“In developing a new technology for market, there are diverse challenges, whether technical, commercial, or at the intersection of these areas. These challenges push us to iterate and improve our technology and business offerings,” Qi said. “Coming up with creative solutions to overcome these obstacles is one of the most enjoyable aspects of the startup process.”

Inquiring Minds for Business

Entrepreneurship has experienced substantial growth in the United States over the last decade. According to the U.S. Census Bureau, more than 5 million applications for new businesses were filed each year from 2021-2024.

Pezeshki encourages any TCE students interested in launching a startup to follow their heart and utilize the resources available at UT.

“You can do a lot more than you think you’re capable of. If you don’t know something, don’t be afraid to ask questions,” he said. “Be curious, keep an open mind, and learn. You’re not going to know everything, but when you don’t know something, you can find an expert and ask them, and then you’ll eventually become an expert yourself.”

The process of developing Phase Two Chemicals into a legitimate international business has required a lot of time, energy, and hard work. Although productivity is an important component of success, the UT graduates caution it should not come at the expense of personal health and well-being.

“If you’re trying to build a company, make sure to take care of yourself as well,” Pezeshki said. “It’s very easy to become very engrossed and place all your energy and self-worth into a company. But there is a high degree of risk involved. It may be the part society doesn’t want to talk about. But these things fail, and failure is okay. Failure is just another chance to learn.”

Contact

Rhiannon Potkey (rpotkey@utk.edu)