2.1.9Innovation

MANAGEMENT approach

The key objective of innovation at SBM Offshore is to bring valuable solutions to market that are in line with SBM Offshore’s strategy, in particular those related to the energy transition. All parts of the organization are encouraged to contribute to innovations in their field of expertise, from ideation to final implementation.

The development of new technology is managed by the Group Technology Department, which ensures that all innovation programs are aligned with the long-term strategies of the Product Lines and with key programs such as emissionZERO® and Fast4Ward®. Development roadmaps are kept up to date with technical and market developments through regular reviews.

SBM Offshore brings new technology to market through a structured stage-gate process to ensure that the technology is properly validated before being offered for sale or introduced into projects. This Technology Readiness Level (TRL) process is based on American Petroleum Institute standards (API RP17N) and includes prototype testing and full FEED level definition of new systems as part of the qualification requirements.

SBM Offshore manages its IP portfolio by registering patents and trademarks, as well as through securing trade secrets and know how. To ensure IP integrity, SBM Offshore manages the classification of documents and non-disclosure agreements with partners and ensures restricted access to technology-sensitive documents. Freedom-to-operate checks are conducted to ensure respect for third-party rights. Through this approach, risks associated with technological developments are mitigated (see section 1.4.2).

2021 Performance

In 2021, SBM Offshore continued to increasingly diversify its development efforts in emerging technologies associated with gas, power and renewable energies, allocating 60% of the Group Technology R&D budget to non-carbon technology. Some of the main development projects undertaken in 2021 include:

  • SBM Offshore’s unique Floating Offshore Wind TLP concept has been adopted by the PGL floating wind farm development project and is progressing through the EPC phase. In parallel, the next generation of this TLP Floating Offshore Wind foundation, achieving lower cost in mass production, is under development.
  • The innovative S3® Wave Energy Converter (WEC) project at SBM Offshore’s R&D Laboratory has made significant advances. Site work and components qualification are under way to deliver the prototype. The project schedule for completion has been extended, owing to the COVID-19 pandemic.
  • SBM Offshore’s emissionZERO® program is on track to deliver the phase 1 emissionZERO® FPSO concept. As part of this roadmap, the design of a topside module to capture CO2 emitted from gas turbine exhaust has been further developed and is expected to be available by 2023.
  • In close collaboration with the newly established gas product line, new technologies and concepts have been developed related to blue and green ammonia and hydrogen.
  • The first Virtual Reality training for offshore personnel has been delivered and rolled out in the fleet, featuring SBM Offshore’s own accumulated operational experience.
  • The Large Diameter High Pressure swivel test bench has been completed in the R&D laboratory. The test bench has been designed and commissioned by SBM Offshore and enables the qualification of new swivel and seal designs.
  • Following the Ocean Code Hackathon last year, work has begun in collaboration with a newly created start-up company to produce an artificial intelligence-based system to detect corrosion in FPSO topsides.
  • Progress was made to diversify and democratize innovation sourcing within SBM Offshore. Main achievements were the hosting of the first Technology Conference open to the entire SBM Offshore community, and the deployment of a crowd-sourced collaborative innovation management platform.
  • SBM Offshore has begun working with external open-innovation platforms to identify promising new technologies under development and potential partnerships with start-up companies, universities, and technology institutes.

Out of the 44 technology development projects that aim to increase Technology Readiness Levels (TRL), 35 have been completed successfully, 3 have been delayed for completion in 2022 and 6 have been cancelled and replaced by more promising non-carbon technology developments.The Company filed 31 new patent applications to strengthen its existing portfolio of 142 patent families; in particular in the area of renewables and digital applications. Over the course of 2021, eleven innovation projects reached TRL 4.This level demonstrates that reliability, function and performance criteria are met in the intended operating condition and the solution can be integrated into a complete system.

Future

SBM Offshore will continue to focus its technology development activities on the energy transition by allocating more than half of its technology development budgets to EU Taxonomy Eligible technology1. This will ensure sustainability of innovations, attractiveness to investors and contribute to a responsible energy transition required to mitigate climate change impact. In addition, SBM Offshore will invest in topside technologies to deliver the ambitions of SBM Offshore’s emissionZERO® FPSO program and developments in alternative energy storage and generation. SBM Offshore will also continue to invest in research and development for its innovative S3® Wave Energy Converter and Floating Offshore Wind solutions.