Tourism, Culture, Industry and Innovation
April 17, 2019
Innovation and Business Development Fund Supports Growth and Diversification in Oil and Gas Supply and Service Capabilities
The Honourable Siobhan Coady, Minister of Natural Resources, and the Honourable Christopher Mitchelmore, Minister of Tourism, Culture, Industry and Innovation, today announced approximately $2 million for five projects through the Innovation and Business Development Fund. These projects will help to grow and diversify Newfoundland and Labrador’s oil and gas supply and service capabilities.
Funding recipients include the Newfoundland and Labrador Environmental Industry Association (NEIA), Kraken Robotics, the Newfoundland and Labrador Oil and Gas Industries Association (Noia), Petroleum Research Newfoundland and Labrador (PRNL) and Scanmudring Canada Funding recipients leveraged an additional $3.9 million from other sources, bringing the total value of these projects to approximately $5.9 million. Project descriptions and funding amounts can be found in the backgrounder below.
The Innovation and Business Development Fund is a 10-year, $60 million fund with an annual budget of $6 million. This fund is key in helping to facilitate the necessary collaboration, investment and industry growth required to position this province globally as a preferred location for oil and gas development. Through this fund, government will support projects that expand local supply, export and diversification opportunities; attract investment in areas with gaps in innovation, technology and supply chain capabilities; and improve oil and gas industry competitiveness by reducing costs related to exploration, development and operations.
The fund supports priorities outlined in Advance 2030 – A Plan for Growth in the Newfoundland and Labrador Oil and Gas Industry by investing in innovation and business development opportunities, including enhanced supply and service capabilities and infrastructure that leads to local business growth, joint ventures, and export opportunities.
Support for innovation and technology delivers on commitments in The Way Forward to strengthen the province’s economic foundation. The Way Forward outlines all actions the Provincial Government is taking to achieve a strong, diversified province with a high standard of living, and can be viewed at thewayforward.gov.nl.ca.
“The resource potential in our offshore is incredible with over 650 leads and prospects identified to date. The oil and gas industry also contributes substantially to our economy, it creates jobs, fosters innovation and leverages business opportunities. Through the Innovation and Business Development Fund, we are helping to facilitate the necessary collaboration, investment and industry growth required to enhance our supply and service capabilities and position this province globally as a preferred location for oil and gas development.”
Honourable Siobhan Coady
Minister of Natural Resources
“These investments in innovative technologies, training, and research and development demonstrate our government’s commitment to build capacity and expertise in our oil and gas industry. Through taking action on the priorities in Advance 2030, we are enhancing Newfoundland and Labrador’s competitiveness and strengthening our position as an industry global leader.”
Honourable Christopher Mitchelmore
Tourism, Culture, Industry and Innovation
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Newfoundland and Labrador Environmental Industry Association (NEIA)
NEIA will receive $39,200 in funding through the Innovation, Business and Development Fund to investigate clean technology opportunities in the oil and gas industry. Using this funding, NEIA organized a mission to Norway on clean technology with a number of local firms to develop new business relationships with like-minded potential partners. NEIA will also commission a report which will outline clean technologies that can be applied in the offshore oil and gas supply chain worldwide, and identify emerging technologies and gaps in Newfoundland and Labrador capabilities.
Oil produced offshore Newfoundland and Labrador will continue to be in demand as we transition to a lower carbon economy. A barrel of oil produced offshore Newfoundland and Labrador represents one third less in greenhouse gas emissions at the point of extraction than the world average. Exploring additional clean technology opportunities will lead to further lowering of our carbon emissions and help us to realize our potential for growth in the oil and gas industry.
Kraken Robotics OceanVision™ Initiative
Kraken Robotics will receive $1 million through the Innovation, Business and Development Fund to undertake an offshore technology demonstration project. This involves an ultra-high resolution data collection survey of a sample area of the Grand Banks using underwater technologies including autonomous underwater vehicles, remotely operated vehicles and next generation sonar, acoustic and 3D laser sensors.
The project focuses on two primary areas of innovation, including development of machine learning analytics related to processing, merging and analyzing real-time 3D data; and development of a new data workflow, providing real-time high-definition intelligence of the seafloor and subsea assets.
It will also expand business growth opportunities in emerging offshore technologies, including digitalization, subsea tiebacks, and other technologies to lower costs and improve operating performance in the oil and gas industry.
Newfoundland & Labrador Oil & Gas Industries Association (NOIA)
NOIA will recieve $347,500 through the Innovation, Business and Development Fund for a project titled “Enhancing the Economic Potential of Canada’s Offshore Oil and Gas Industry.”
This project includes an industry baseline study to identify capabilities and gaps in the local service and supply industry, and prepare for growth in the offshore oil and gas industry to maximize their participation in all aspects of the industry.
The project also includes the delivery of a customized Local Content Masterclass to operators, local suppliers, regulators, and other key stakeholders with specific training on policies, regulations, and strategies to minimize risk and optimize local content.
Petroleum Research Newfoundland and Labrador (PRNL)
PRNL will receive $102,970 in funding through the Innovation, Business and Development Fund for a project that will help enable sub-sea tiebacks for marginal field developments in Newfoundland and Labrador’s offshore. Subsea tiebacks connect existing oil platforms to smaller, marginal oil and gas reserves and can extend the life of production of an oil development.
This project includes initial analysis, workshops and planning to develop a roadmap and strategy for subsea marginal field tieback developments, which will support innovation and accelerate development offshore Newfoundland and Labrador.
Scanmudring Canada will receive $500,000 in funding through the Innovation, Business and Development Fund for a project that will demonstrate the applications for Scanmudring’s subsea excavation and trenching technology in the challenging soil conditions experienced on the Grand Banks when preparing for subsea installations for oil and gas development.
Scanmudring will collaborate with industry partners to develop parameters for this technology advancement, monitor progress, and produce an objective and independent assessment of results. This technology is expected to reduce excavation and trenching costs, enabling further subsea developments to proceed and enhancing the global competitiveness of Newfoundland and Labrador’s offshore oil and gas industry.
This project will increase Scanmudring’s local capabilities in subsea excavation and flowline/umbilical trenching and demonstrates operator-supply chain collaboration.
2019 04 16 10:55 a.m.