NERA Innovation Cluster Workshop Miranda Taylor, November 2016
National Energy Resources Australia Our Vision To maximise the value to the Australian economy by having an energy resources industry which is globally competitive, sustainable, innovative and diverse. Our Mission Through a national focus, grow collaboration and innovation to assist the energy resources industry manage cost structures and productivity, direct research to industry needs, deliver the future work skills required and promote proportionate fit for purpose regulation. Six Growth Centres (METS) Mining Equipment, Technology and Services
NERA Strategic Themes Manage cost structures and improve productivity Adopt predictive analytics (digital technologies) Drive deeper engagement with the value chain Develop work skills of the future Drive industry-led research Improve industry sustainability (social, environmental, economic) Understanding and unlocking Australia s future resource base Achieve proportionate, fit for purpose regulation
The Need for a Reform Agenda for Australia s Challenges - Energy Resources Sector Australia top producer/exporter of natural gas, coal and uranium. Combined value of sector to the Australian economy is around $67 billion. Anticipated growth in demand presents significant opportunities. for Australia. High project development and operating costs Sunk costs after massive investment Lower for longer commodity prices (or back to normal) Ageing infrastructure/assets Alternative energy sources being quickly developed Decline in onshore energy resources and offshore oil and gas exploration Community support and social license lost Speed of global connections and market disruption
The NERA Opportunity NERA provides an ongoing, independent, third party, not for profit entity through which industry can safely collaborate to: Engage Explore Identify Lead Transfer Innovate, scale, commercialise Identify Problem, Opportunity, Knowledge Priorities Stakeholder agreement established Collaboration, deeper definition & agreement on problem & opportunity Establish best fit delivery mechanisms Projects developed, KPIs set, delivered Evaluation of impact on competiveness and innovation
Collaboration NERA is working to build an energy resources ecosystem to drive collaboration, innovation and unlock commercial opportunities Why collaborate? Because the prize is too great to ignore. Collaboration can create greater efficiencies and cost savings create opportunities for contractors to respond more effectively force-multiply investment and risk reduction as a collective So: Let s try. We have nothing to lose.
The innovation funnel Identify Problem, UnprovenConcept Proven Concept Validated Concept PrototypeTested Environment& SystemTested SystemInstalled& FieldProven NERA guidance and assessment support CRC, CRC-P, ITRP, GIL NERA publication Research Ready NERA financial support for the PhD ATSE mentoring Program NERA Innovation Voucher NERA support for COREHub & SME networking events NERA support for the formation of clusters, living labs, technology competitions & promotion NERA identification of R&D commercialisation gaps, barriers and investment channels Idea Ideas Ideas Market Commonwealth funding, university & industry support resources along the research to market funnel CRC, CRC-P ARC Linkage, ITRP Collaborations Student Projects iprep ATSE Mentoring Hackathons Fedex Days Accelerators PhDs, ECRs, CSIRO CRC, CRC-P University & Commercial Labs Consulting University & Commercial Labs Technology Qualification IPAustralia R&DTax Incentives State Government Funding Programmes Entrepreneurs Programme InnovationWA Accelerators Austrade University& Commercial Labs Angel Investors Venture Capital Classification Societies Facilities & Experts fortesting University & Commercial Labs Austrade Marketing Commercial Labs Angel Investors Venture Capital Classification Societies Customers Clients Sales Marketing Product Cycle EFIC Austrade Australian Landing Pads International Clusters
Future of the Energy Resources Sector
Development of NERA Sector Competitiveness Plan Sector Competitiveness Plan Development Strategic Imperative Strategic Engagement Research Hypotheses Prioritise Socialise NERA s strategic goals established Early engagement with industry Identify global and national themes Sector Competitiveness Six Plan Knowledge Growth priorities, strategies, projects Centres Develop Identify hypotheses, priorities and test and refine initiatives through workshops (METS) Mining Equipment, Technology and Services Further testing and refinement
Levers to a strong energy resources sector future Building contemporary business models New export markets New customers New services through the value chain Enhancing operational models and technology capabilities Standardise operating practices Collaborate on issues Share information Adopt disruptive technology Six Growth Centres Improving capacity, skills and culture Maintain and build skill base (METS) Mining Equipment, Prepare Technology for and Services requirements of operator of the future Build capability in advanced diagnostics and process optimisation Share best practice Addressing the regulatory environment
Global Megatrends Low Carbon Future Urbanization Technological Evolution Asian Century Changing Demographics Globalisation of Business Changing Energy Mix
Levers and Sector Knowledge Priorities Capability and Leadership Work Skills for the future Enabling effective collaboration Understanding Australia s resource base Social license to operate Business and operating models, technology and services Unlocking marginal resources New markets, technologies, and business models Commercialisation of R&D Efficient operations Regulatory environment Regulatory framework optimisation
Economic Clusters/Hubs/Precincts
Global Competitiveness Report GDP per capita
International Cluster Review Increase growth and jobs Each country has a different approach and strong political support - except for Finland. Australia s circumstances are not much different to Europe but characteristics are different. Every country has its own challenges. Clusters can be federal, discipline, industry, cross-industry, state or council based. Embedded cluster funding model highly successful commercialising products. Clusters need to be themed with a well-defined scope. Clusters need a local driving organisation. Clusters require all sectors of society to be involved (triple helix model).
Darwin Oil & Gas hub Darwin supplier hub LNG Broome/Derby Oil & Gas hub Supply chain LNG Port Hedland Oil & Gas hub Supply chain LNG Perth Oil & Gas hub (defence, shipping, fishing) Mining & LNG ITTCs Marine & LNG ITRHs Collie NERA: Regional economic development vision Resource clusters, knowledge economy Western Australia Northern Territory South Australia Queensland New South Wales Brisbane Coal Seam Gas hub UQ CSG Supply chain CSG Remote operations Gladstone Coal Seam Gas hub UQ CSG Supply chain LNG Hunter Coal hub NIER Hunter Valley Coal Chain Coordinator Wollongong Energy Infrastructure CRC Manufacturing ITRH Melbourne Coal hub SW CCS Hub Supply chain Coal Hobart Marine Technology Hub Marine ITTC Mining ITRH Typical Cluster Network: Core Businesses ++ Federal Government, State Government & Local Agencies, Research Institutions, Education & Training, Infrastructure, Related/Supported Businesses, Specialised Services (Financial, Technical, Marketing) Tasmania Victoria Coal hub Manufacturing, Infrastructure, Work Skills CRCs Manufacturing & Mining ITTCs Manufacturing ITRHs Adelaide Uranium and oil & gas hub Adelaide IEMR Supply chain for both industries Defence & Exploration CRCs Mining ITRHs
Thoughts and questions for today How can the sector be economic and create new value opportunities at $50/boe, beyond individual company marginal gains? Which operators are willing to provide field testing opportunities? Which service companies are willing to drive innovation through the supply chain? How are we going to develop and mature technologies and do we have a prototype and test plan for each one? How do we collectively deal with IP to maximise value created? What economic advantages and tax incentives could we access or suggest from within a cluster? Can we agree an aggressive target to deliver value to the local supply chain, and can we identify a local powerhouse industrial business who wish to be the cornerstone of that value creation? How do we define the variable which we will track to describe progress and agree a threshold target e.g. unit technical development cost must be better than $15/boe?
Thankyou