As a result of the feasibility study, it can be concluded that the business related to the CCR compressors commercialization is feasible. Business related previous unknowns have been cleared and the path to reach commercialization stage has been marked.
There is enough market for the application of CCR: 10.000 compressors/year in targeted Oil & Gas market segment + 1.500 compressors/years in current markets (Pet Blowing and CO2 Brewers) with CAGR between 5-7%.
There is clear differentiation from current solutions, providing 20% of reduction of energy consumption for compressing processes as well as other benefits (elimination of water phases, size, price, etc.) and there is no other evolutions in market that could jeopardize the introduction in the market. The concept is patented and CCR has total Freedom to Operate worldwide.
As being CCR a new concept of compressor, there is currently no API standard for CCR. As being CCR a piston compressor, an extension of actual API 618 or new standard for this kind of new concept has to be seek. To get this approval, a workgroup must be open with API experts, so demonstrable performance on compressors in other industrial markets (PET, CO2, etc.) will be key for API approbation.
Product scan have been done for manufacturing needs identification and to stablish product pricing for being profitable for the company as well as acceptable price for the market. As being ABC a compressor manufacturer that sells over 200 reciprocating compressors per year, it eases the launch of the business as first sales can be benefited from current manufacturing and sales structure without big investments. Anyway, growing demands have been studied and scaling needs have been studied in all business key activities.
Sales projection have been made assuming a penetration of 5% in Oil & Gas market and 20% in current markets for tenth year, rising the turnovers of the company to 188 M€ and employing to 315 persons. A sensitivity analysis of the business has been made bringing the business into stress (reduction of the market penetration, growth of manufacturing costs or reduction of the price of the product), so the business boundaries are clear and are assumable.
So, the key step to overcome for the business to come true is the ‘demonstration project’ that will demonstrate the technology, thus, enabling them to get over the ‘traditional fears’ of a new product. This way, in first instance clients for traditional markets can be convinced to acquire CCR compressors and this results and introduction in these markets will ease the API standard obtention or creation to introduce in Oil & Gas market.
Funding support of SME Accelerator t will be a key aspect to maximize the impact of the CCR advantages and minimize the ‘time to market’. Thanks to the EC support, the demonstration project development and dissemination of results will be quicker.
