Project description
Pioneering hydraulic solution improves machine performance
The EU-funded Norrdigi project is supporting Finland-based company Norrhydro in developing a digital hydraulic actuator that improves machine productivity while also largely reducing fuel costs and CO2 emissions. Thanks to its multi-chamber cylinders, intelligent motion control, advanced accumulators and directional control valves, the actuator will deliver only the necessary power at any given time. The initial target market for the technology comprises crawler excavators and large material-handling equipment, which incur high costs annually. The company has set the goal to increase its sales from EUR 19 to 260 million by 2025. The team also plans to expand the scope of potential applications to include earth-moving machines and forestry machines.
Objective
Norrhydro Oy is a Finnish hydraulic cylinder manufacturer. Since 2007, Norrhydro has developed a technology, NorrDigiTM, that has the ability to regenerate, store and share energy by the functions on mobile equipment, such as excavators, the largest market for cylinders. The economic effect of NorrDigiTM is very significant. It requires less space, is cost neutral and has proven 45-60% fuel efficiency improvement and 5-12% productivity gains in side-by-side tests with a standard excavator. NorrDigiTM is a modular control system made of highly engineered hydraulic cylinders, control valves, sensors and electronics in an integrated control package and is patented in all major countries. The initial target market is crawler excavators and large material handling equipment. The current addressable market size is 4,0 billion euros yearly. The first goal is a 5,6% market share by 2025, which means total sales will grow from 19 to 260 million euros in that period. The next target is 15% market share by 2028, which coupled with growth in adjacent markets will amount to over 800 million in annual sales. The imminent market launch is based on finalizing the product designs, testing, production investments and increased marketing. The solution is scalable, and Norrhydro performs an internal investment and LEAN improvement program to meet the increased volume demands. The other main components are modular and come from suppliers who have ample capacity. The direct effect on employment goes from 126 people in 2017 to 700 people by 2025. The SMEI-funding will assist in speeding up the launch, reduce risks, and improve the economics and the environment due to the drastically reduced fuel consumption (emissions). The funds will help securing additional financing which is planned as an IPO in 2020. The team leading the effort consists of dedicated, motivated and highly experienced professionals with long international track records of successful product and technology launches.
Fields of science
- engineering and technologyelectrical engineering, electronic engineering, information engineeringelectronic engineeringcontrol systems
- social scienceseconomics and businesseconomicsproduction economicsproductivity
- engineering and technologyelectrical engineering, electronic engineering, information engineeringelectronic engineeringsensors
- social scienceseconomics and businessbusiness and managementemployment
- engineering and technologyenvironmental engineeringenergy and fuels
Programme(s)
Funding Scheme
SME-2 - SME instrument phase 2Coordinator
96300 ROVANIEMI
Finland
The organization defined itself as SME (small and medium-sized enterprise) at the time the Grant Agreement was signed.