The SME instrument Phase 1 grant allowed INECO to conduct an elaborated feasibility study and facilitate commercialization strategy development. During the project the following four workflows were performed: market research, detailed user needs research and partnership development, IPR strategy development, business model and in-depth business plan development.
Market research revealed that OILCS technology for all stages of oil production and transportation is a unique solution that can disrupt existing market of sorbents and technologies of utilization oil spill
The fundamental novelty aspect of OILCS technology allowing to produce high quality, ecological sorbent directly near the of oil spills. This contrasts with the traditional technologies which are characterized by the use of natural and synthetic sorbents, the sorption and performance and cost characteristics of which are much lower than the TEG which is proposed. And the main thing is that the ability to quickly get to the site of spills and produce exactly the amount of sorbent that is needed in a particular situation, the ability of the sorbent to remain on the surface of the water for a long time, And most importantly, the ability to recover up to 80% of oil from the collected sorbent. Therefore, OILCS is the first project to offer such a solution to the market and can ultimately become a leading player in the market segments of oil spill tools and technologies saving the costs of oil production&transportation.
The feasibility study of the market validated that the TEG sorbents market saw a growth during the previous few years. The analysts forecast global petroleum sorbent pads market it is expected to grow at a CAGR of 3.98% during the period 2018-2021.
Competitors’ analysis has shown that potential substitutes and alternatives do not fully satisfy customer needs and there is a significant technological gap between OILCS and closest competitors. Rigorous country-by- country research enabled to outline OILCS priority markets and select countries for market entrance.
During our research, we have conducted more than 100 interviews with potential clients, equipment producers, distributors and governmental authorities, which provided us with valuable feedback on the product and essential insights for our go-to-market and pricing strategy. The active participation in conferences and exhibitions has enabled INECO to create a network of commercialization and distribution partners to promote the company on the priority markets. Furthermore, INECO began the process of OILCS product adaptation according to the customers’/ potential customer’s feedback.
Within the last 6 months, INECOs team identified and classified IPR strategy performed the audit of the product and the technologies implemented.
Finally, OILCS developed detailed business plan and financial model that will be used as a roadmap for commercialization as well as for the further development of the business. This exercise allowed to adjust our business model, improve product-market fit, get a better understanding of cost-side of the business and of the most profitable revenue streams. We have decided that OILCS revenue streams come only from the sales manufacturing equipment to B2B customers (oil spill response companies, seaports and ship & tankers), while leasing of OILCS turned to be impractical due to extensive requirements in working capital l and difficulties in changing existing plans and measures for the liquidation of oil spills, which are approved and adapted for each company on the basis of state and local legislation.
All the tasks completed during the feasibility study allowed to develop a proper pricing strategy, a commercialization plan (in a form of a comprehensive roadmap consisting of interrelated plans of final product design development, market expansion and related with them certification and dealership and partnership growth in each market).
At this stage, OILCS is primarily focused on the design of the final for B2B market product for serial manufacturing as well as on the commercialization plan implementation. Upon obtainment of certification OILCS will start its global expansion in 2022. The ambition of OILCS is to allow the customers easily and safely to dispose oil spills with minimal negative environmental impact and minimal financial and resource losses.
