The Application of the Business Model Canvas. Joseph Kelly Eoin Moynihan

Transcription

1 The Application of the Business Model Canvas MaREI, 18 th April 2016 Derek Dalton Joseph Kelly Eoin Moynihan

2 MARIBE is a Horizon 2020 project that aims to unlock the potential of multi-use of space in the offshore economy (also referred to as Blue Economy). This forms part of the long-term Blue Growth (BG) strategy to support sustainable growth in the marine and maritime sectors as a whole; something which is at the heart of the Integrated Maritime Policy, the EU Innovation Union, and the Europe 2020 strategy for smart, sustainable growth.

3 Within the Blue Economy, there are new and emerging sectors comprising technologies that are early stage and novel. These are referred to as Blue Growth sectors and they have developed independently for the most part without pursuing cooperation opportunities with other sectors. MARIBE investigates cooperation opportunities (partnerships, joint ventures etc.) for companies within the four key BG sectors in order to develop these companies and their sectors and to promote the multiuse of space in the offshore economy. The sectors are Marine Renewable Energy, Aquaculture, Marine Biotechnology and Seabed Mining.

4 MARIBE links and cross-cuts with the Transatlantic Ocean Research Alliance and the Galway Statement by reviewing the three European basins (Atlantic, Mediterranean, and Baltic) as well as the Caribbean Basin.

5 J.J. Campbell & Associates Structural and civil engineering consultancy with public and private sector clients. Established in 1995 Expertise combines practical construction knowledge with state of the art computer analysis and designs, in particular analysing special structures having complex geometries and requiring sophisticated structural analysis. Skilled staff include experienced structural and civil engineers, experienced CAD technicians, all IEI members having special expertise in steel and concrete design, FEM analysis, amongst others. However, to date they have not place anything in the water.

6 CÚNAMARA CÚNAMARA Wave Energy Converter (WEC) is a V shaped floating structure. Constructed from concrete with steel superstructure. Incorporates oscillating water columns (OWC) chambers integrated into the structure. Image: J.J. Campbell & Associates

7 After first becoming involved in wave energy research in 2001, the earliest iteration of the current device was conceived in 2008 Wave Energy Ireland Ltd., a sister company was incorporated in 2009 and an initial feasibility study funded by Enterprise Ireland was completed As part of the first milestone, the company undertook to design and build a number of 1:50 scale OWC devices to be test in MaREI On the back of this study, the company secured funding from the Ocean Energy Development Unit (ODEU), a division of the Sustainable Energy Authority of Ireland (SEAI) The company engaged with he Centre for Renewable Energy at Dundalk IT (CREDIT) to perform numerical modelling. This was funded though another EI Voucher.

8 The company worked on the second milestone between mid and late-2011, designing and constructing a 1:50 scale model. At this time the concept envisaged stainless steel as the primary construction material. In December 2011, this model was installed in the ocean basin test facility at the HMRC and testing began in January Company joined the Irish Wave Energy Developers Association Report on model testing delivered.

9 At the start of 2014, the company was awarded a further grant by the ODEU to conduct a number of desktop studies. This allowed the company to investigate a number of mooring solutions. A number of possible construction sites and techniques were explored. The report on this work was delivered in June A third grant was awarded by SEAI to the company in late-2015 to conduct testing to optimised chamber geometry and analyse the structural integrity in response to extreme loads Black and Veatch engaged to independently assess the report on the model testing. This report confirmed the validity of the testing techniques and data processing, and was broadly positive about the device. Following delivery of these reports, the company considers that is has demonstrated proof of concept and proceeded through TRL1/2, and into TRL 3 Upon completion of this phase of the project, expected mid to late 2016, the company believes it will have completed TRL 3. Efforts to develop a work package to progress the project to TRL 4 is currently ongoing.

10 Market Analysis and Competition Identifying the potential market size Irish Market UK Market

11 Irish Market Overview of the Irish Market Ireland currently offers FIT s for wave energy generation valued at 0.26/kWh up to 30 MW. No current FIT in place for offshore wind but this is possible in the medium to long term.

12 Irish Market Overview for combination devices of floating offshore wind and wave technology Wave Floating Offshore Wind Irish Market Overview 2050 Ambitious Plan Plan Unit Irish Market Potential Installation Capacity (GW) 34 1,875 3,750 Market Size in # of CÚNAMARA units Total energy generated by all CÚNAMARA devices (TWh/year) TBD TBD Market size in CÚNAMARA sales ( ) 3 Ocean Energy Road Map for Ireland, SEAI 4 Irelands Wind Energy Road Map, SEAI

13 UK Market Overview of the UK Market UK is in the process of switching from a FIT system to a Contracts for Difference (CFD) system. Supports in place for offshore wind and wave

14 UK Overview for combination devices of offshore wind and wave technology UK Market Projection 2050 Wave Floating Offshore Wind Scenario 1 Scenario 2 Scenario 3 Scenario 1 Scenario 2 Scenario 3 Unit ,125 30,625 UK Market Potential Installation Capacity (GW) 9 Market size in # of CUNAMARA units TBD TBD TBD TBD TBD TBD 9 The offshore valuation: A valuation of the UK s offshore renewable energy resource Total energy generated by all CUNAMARA devices (TWh/year) Market size in CUNAMARA sales ( )

15 Competition Direction and Indirect Competition

16 Floating Power Plant Poseidon 37 Floating wave platform and also serves as a floating base for multiple wind turbines Pilot device, located in the Baltic Sea near Denmark Installed 33kW from wind and 50kW from wave Installed in co-operation with DONG energy Following pilot, Poseidon 80 model is to have 5MW wind and up to 2.6MW wave Image: Floating Power Plant

17 KNSWING Ship like concept which is also constructed primarily from concrete, incorporating 20 Oscillating Water Columns on each side. Tank tested at 1:50 scale in 2013 Full scale is approximately 150 metres long and estimated to absorb 2,900 kw Image: MARINET

18 Pelagic Power A lightweight semi-submersible floating platform for a combination of wind and wave Platform will be more than 10MW total in areas with a strong wave climate Third corner of platform is reserved for a helipad Wave conversion consists of three lines of free floating wave-actuated hydraulic pumps Image: Pelagic Power

19 Indirect Competition Alternative Renewable Energy Sources (Onshore wind, fixed offshore wind) In the Irish market, main competitor is onshore wind which has a current operational capacity of 3,025MW The UK market s fixed offshore wind is currently on course to deliver 10GW by 2020

20 Conventional Generation from Fossil Fuels Global energy continues to be dominated by oil-based generation sources and coal. These sources currently account for approximately two thirds of all global energy demand. Opportunity available as governments are becoming wary of overreliance of importing these energy sources.

21 Business Model Canvas Application to J.J. Campbell and CÚNAMARA

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23 Customer Segments Who we are creating value for? Who are our most important customers?

24 Customer Segments Potential target customers for J.J. Campbell & Associates once fully commercial. Criteria: Large annual revenue Renewable energy experience (preferably offshore) Interest/experience in wave energy industry EWEA: The European offshore wind industry key trends and statistics, 2015

25 HQ in Sweden Currently operate over 100 wind turbines throughout Europe Expanding offshore operations Total revenue of 18.8 billion with 30,000 employees (2013) Image: Pelamis Wave

26 One of the largest electricity providers in Europe HQ in Germany Total revenue of billion and 58,000 employees (2014) Former partners with Pelamis Wave Power Image: EMEC (European Marine Energy Centre)

27 HQ in Denmark Danish government majority shareholder Over half its income from offshore wind 3,000 MW installed capacity, revenue of 7 billion and 6,700 employees (2015) Dong has previously partnered with Wavestar and Floating Power Plant in combining wind and wave Image: Wavestar Energy

28 Subsidiary of the state owned ESB group 3.4 billion in revenue and 7,870 employees (2013) Deliver large scale, capital infrastructure projects for international clients Setting up West Wave project 5MW capactity Image: Aquamarine Power

29 HQ in Norway Operates oil and gas fields in 12 different countries Revenue of 94 billion with over 2,300 employees (2015) Currently developing floating wind turbine technology Commitment to renewables Image: Statoil

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31 Value Proposition The bundle of products and services that create value for a specific customer segment. What value are we offering to our customers?

32 Value Proposition Construction concrete modular units. Mooring conventional methods of mooring. OWCs one of the most proven forms of wave energy conversion Combination higher load capacity from two forms of resource.

33 Value Proposition

34 Value Proposition Canvas

35 Value Proposition Canvas

36 Value Proposition Canvas

37 Value Proposition Customer Segments JJ Campbell Renewable Energy Developers Gain Creators Pain Relievers Product Gains Pains Job Markets near deep water (Floating Tech) Lower /MW through combination Wave Energy more predictable TRL 9 technology Proven success in construction projects Combination gives a better brand image Access in adverse weather conditions More favourable licencing process New industry will give a JJ Campbell customers a "first to market" advantage Renewable Energy Growth Reduced /MW More predictable energy resource High technology reliability Track record Brand Image Adverse Weather conditions Licencing and consenting Reduced Support for FIT Competitive fixed offshore wind market Generate electricity Decarbonise Electrcity Run at profit

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39 Channels How a company communicates with and reaches its customer segments to deliver value proposition. How do our customers want to be reached? How do we reach our customers?

40 Marketing & Sales

41 Distribution

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43 Customer Relationships The types of relationships a company establishes with specific customer segments. Three main motivations: Customer Acquisition, Customer Retention and Boosting Sales (upselling).

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45 Revenue Streams The income a company generates from each customer segment.

46 Revenue Streams

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48 Key Resources The main inputs the company uses to create its value proposition, service its customer segment and deliver the product to the customer.

49 Key Resources

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51 Key Activities Primarily dictated by its business model. Fulfilling its value proposition Reaching its customer segments, Sustain its customer relationships, Create long-term revenue streams.

52 Key Activities

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54 Key Partners The network of partners that make the business model effective. Can optimize its resource utilization, create new resource streams or mitigate risks.

55 Key Partners

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57 Cost Structure All the costs that a business can or will incur if it opts for a particular business model. Three other building blocks are contributors to the cost structure block. Must evaluate the cost of creating and delivering the value proposition, creating revenue streams and focus on long-term customer relationships.

58 Cost Structure

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60 Further Information: J.J. Campbell & Associates Gordon Dalton, MARIBE Project Co-ordinator Eoin Moynihan or LinkedIn and Facebook Joseph Kelly