Aberdeen-based company secures £1.2 million research and development grant to help boost efficiency in the oil & gas industry.
EastCoast Oil and Gas Engineering Ltd (EC-OG Ltd) aim to create 14 new oil and gas jobs with an investment of £3.9 million to develop their innovative 'Subsea Power Hub' (SPH) technology.
Supported by a £1.2 million R&D Grant from Scottish Enterprise, the investment will help deliver new opportunities for the company and increase efficiency in the oil and gas sector.
SPH is an innovative subsea power generation system, which provides electrical power at the seabed by using an ocean current renewable energy generator.
The systems allows EC-OG to provide electrical power to oil and gas subsea infrastructure where using conventional methods of power generation would be prohibitively expensive or too complicated to implement in the required timescales.
Working with EC-OG
We have enjoyed a strong relationship with EC-OG since the company was founded in early 2013.
EC-OG's success reinforces the opportunities which still exist for Scotland’s oil and gas sector. Innovation, internationalisation and collaboration all play a key role as we drive forward our ambition and deliver a sustainable long term future for the industry in Scotland.
Dr Lena Wilson, chief executive of Scottish Enterprise and chair of Scotland's Energy Jobs Taskforce
Our High Growth Start Up Support team has provided tailored support, helping the young company achieve its international growth ambitions.
And the SPH technology previously received £200,000 SMART: Scotland funding to help the project through the technical viability stage.
Dr Lena Wilson, chief executive of Scottish Enterprise and chair of Scotland's Energy Jobs Taskforce, said:
"Investing in higher levels of innovation is fundamentally important to growing Scotland’s economy, contributing to business growth through improved productivity and increased global competitiveness.
"As the oil and gas sector faces the global challenges of the low oil price, there has never been a more important time for companies to maximise the benefits innovation can bring to their business.
"That’s exactly what EC-OG Ltd has done and as a result will create 14 new jobs over the next three years and offer increased efficiency savings to the industry."
A unique opportunity
EC-OG achieved an annual turnover of £720,000 within two years, with plans in place to increase that to over £5 million in the next five years.
Despite the current challenges faced by the oil and gas sector, the company's bespoke services and reputation for improving efficiency has seen their client base continue to grow in Scotland and in international markets.
Richard Knox, managing director of EC-OG Ltd said:
"The backing of Scottish Enterprise has been pivotal in allowing us to take our prototype forward, and to be able to offer a commercially ready product within an accelerated timescale.
"The SPH fundamentally changes the economics of providing reliable electrical power for subsea systems. This will allow the development of future marginal oil & gas fields and to extend the life of existing infrastructure, prior to decommissioning.
"The current market, while challenging, offers a unique opportunity to bring this technology to market. We also believe Scotland offers a great platform in terms of supply chain and talent, to deliver these new products and export to global markets."
Innovate for oil & gas success
Scotland's oil and gas supply chain, driven by companies like EC-OG, has long been recognised as a global hub for innovation in the oil and gas industry.
Today, with the global industry adapting to changes in market, innovation can play a key role in achieving the efficiency savings that can help secure a bright future for Scotland's supply chain companies.
Scotland's Energy Minister, Fergus Ewing, said:
"We have seen the important contribution that innovation can make towards the current cost and efficiency agenda.
"The Scottish Government will continue to do all that we can within our devolved powers to boost exploration, protect critical infrastructure, and support the oil and gas industry.
"This new subsea power generator system will help to drive the kind of efficiencies which are key to increasing international competitiveness and serves as a further reminder that, although the industry is facing a challenging period, that considerable North Sea opportunities remain."
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