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If local Marcellus Shale companies want to stay in business, they need to diversify and be very clear about why they exist, according to a report Thursday from The Klaber Group.
Prepared on behalf of the State College-based Ben Franklin Shale Gas Innovation & Commercialization Center, Klaber's report can be seen as both a cautionary tale and a potential lifeline for struggling businesses. In part, the report describes what most local oil and gas companies already know: Low prices of natural gas, natural gas liquids, and oil have forced upstream companies -- the ones involved in drilling and exploration -- to cut back on spending. This has had a huge impact on local small businesses who focus on drilling services. But the midstream business -- the market segment that takes gas from the wellhead to the market -- is booming, the report concludes. If companies want to grow, they need to take advantage of the "many growth opportunities for new technology adoption" in the midstream. The study doesn't exactly tell businesses how to redefine their services, but it does offer fundamental suggestions on how to find a niche outside of the upstream market -- and where to find useful information. “In the last decade, our region has experienced, first hand, a rapid expansion and a contraction of the natural gas industry," the study's author, Kathryn Klaber, said in a statement. "The supply chain companies that are built on a strong business model, and have diversified their products and services, are poised to benefit from the eventual rebound.” Klaber is the former president of the Marcellus Shale Coalition, and a consultant to the natural gas industry. Read the full report here. Matt Stroud is energy reporter for the Pittsburgh Business Times. Original Source: http://www.bizjournals.com/pittsburgh/news/2015/09/03/new-study-offers-potential-lifeline.html STATE COLLEGE, Pa.--(BUSINESS WIRE)--Amid a challenging business environment for the region’s oil and gas industry, the services offered by the Shale Gas Innovation & Commercialization Center (www.sgicc.org) have become even more critical. Using funds provided by the Pennsylvania Department of Community & Economic Development (PA DCED), SGICC commissioned a study on the evolving relationship between Pennsylvania-based entrepreneurs and the companies they serve in the industry. Go to http://www.sgicc.org/dced-grant-white-papers.html to access the report.
“This report has helped our future planning by validating the things we are doing well and highlighting the areas where we can continuously improve our services.” Given the historically low commodities prices, Pennsylvania-based companies are facing new challenges when introducing a new product or service into the upstream markets. This dynamic makes organizations with missions such as the SGICC even more critical, and challenges entrepreneurs to look for more diversified applications of their technologies – ideally resulting in stronger long-term viability. Bill Hall, SGICC Director commented, “This report has helped our future planning by validating the things we are doing well and highlighting the areas where we can continuously improve our services.” The report identified things that innovating companies need to do:
The Ben Franklin Shale Gas Innovation and Commercialization Center (www.sgicc.org), an initiative of Ben Franklin Technology Partners/CNP (http://www.cnp.benfranklin.org) is designed to harness innovation and new technologies as a means to maximize the economic return to Pennsylvania’s citizens from the various shale formations comprise part of the energy reserves of the Commonwealth. The Center also identifies, supports and helps commercialize technologies and early-stage businesses that enhance responsible stewardship of the environment while properly utilizing this transformative energy asset. ContactsShale Gas Innovation & Commercialization Center (SGICC) Bill Hall, 814-863-4881 Executive Director billhall@psu.edu Original Source: http://www.businesswire.com/news/home/20150903005128/en/Ben-Franklin%E2%80%99s-SGICC-Releases-Study-Technology-Adoption#.VhSc6BNVhBd Ben Franklin’s Shale Gas Innovation & Commercialization Center (SGICC) released a study titled “Opportunities to Use Natural Gas and Propane as a Transportation Fuel in Pennsylvania.” The study serves as an educational tool for anyone who wants to convert to CNG, LNG or propane vehicles or install a fueling station for natural gas-powered vehicles.
“We’ve been closely following the acceptance and conversion to the use of natural gas or propane in the United States’ transportation market – especially in our region over the last few years,” says Bill Hall, SGICC director. “There are many options available, which can create confusion and uncertainty. But there are niche opportunities that definitely make economic sense for companies to switch to using natural gas or propane to power their vehicles, even with the relatively low price of gasoline and diesel.” According to the study, natural gas and propane are gaining a foothold as alternative fuel sources for Pennsylvania’s transportation sector. Transit agencies and other large fleets have been converting from gasoline to natural gas or propane across the state because of cost and environmental benefits. The study reports natural gas and propane opportunities also exist for small fleets and individual vehicles such as mid-size delivery vans and trucks, taxis and high-mileage commercial vehicles in Pennsylvania. The study is available to download on the SGICC website. By Megan Wilkinson Original Source: http://www.lpgasmagazine.com/study-explores-autogas-as-a-transportation-fuel-in-pennsylvania/ STATE COLLEGE, Pa.--(BUSINESS WIRE)--Using funds provided by the PA Department of Community & Economic Development (DCED), the Shale Gas Innovation & Commercialization Center (www.sgicc.org) commissioned a study regarding the “Opportunities to Use Natural Gas and Propane as a Transportation Fuel in Pennsylvania”.
“Opportunities to Use Natural Gas and Propane as a Transportation Fuel in Pennsylvania” The SGICC commissioned the study in an effort to offer an educational tool for anyone considering purchasing or converting to CNG/LNG or propane vehicles, or installing a fueling station for natural gas powered vehicles. Gannett Fleming, a full service consulting and engineering firm headquartered in Camp Hill, PA was chosen to author the study, with assistance from the Ben Franklin Technology Partners of Central & Northern PA’s Transformation Business Services Network. Bill Hall, SGICC Director noted, “We’ve been closely following the acceptance and conversion to the use of natural gas or propane in the United States’ transportation market - especially in our region over the last few years. There are many options available which can create confusion and uncertainty. But, there are niche opportunities that definitely make economic sense for companies to switch to using natural gas or propane to power their vehicles even with the relatively low price of gasoline and diesel. It’s our intention to supply a resource that companies can use to educate themselves and help them consider the options.” Hall also noted that the study should be considered just one resource available for interested parties to use as a reference guide. The study is posted on the SGICC web site at http://www.sgicc.org/dced-grant-white-papers.html. The Ben Franklin Shale Gas Innovation and Commercialization Center (www.sgicc.org), an initiative of Ben Franklin Technology Partners/CNP (http://www.cnp.benfranklin.org) is designed to harness innovation and new technologies as a means to maximize the economic return to Pennsylvania’s citizens from the various shale formations that comprise part of the energy reserves of the Commonwealth. The Center also identifies, supports, and helps commercialize technologies and early-stage businesses that enhance responsible stewardship of the environment while properly utilizing this transformative energy asset. ContactsShale Gas Innovation & Commercialization Center (SGICC) Bill Hall/Executive Director, 814-863-4881 billhall@psu.edu Original Source: http://www.businesswire.com/news/home/20150707006091/en/Ben-Franklin%E2%80%99s-SGICC-Releases-Study-Opportunities-Natural#.VhSe_BNVhBd Ben Franklin’s SGICC Releases Study on the Small Scale Conversion of Natural Gas to Methanol6/5/2015
Using funds provided by the Pennsylvania Department of Community & Economic Development (PA DCED), the Shale Gas Innovation & Commercialization Center (SGGICC) commissioned a study on the potential to convert natural gas to methanol on a small to medium size plant scale.
The SGICC commissioned ADI Analytics, a boutique consulting firm focused on oil and gas, energy, and chemicals to perform the study which addresses the techno-economic feasibility of various smaller scale operations that could convert natural gas to methanol serving a regional market while also addressing the market needs for methanol in the northeast. Natural gas conversion to methanol is a mature technology used worldwide to produce methanol, but there currently is no production in the northeastern U.S, and only minimal production currently in North America. Due to the surge in the availability of low cost natural gas, several plant expansions and plans for new plants have been announced in the Gulf Coast region of the United States over the last few years, but none have been publicly announced in the Northeast to date. In addition, typical methanol plants are very large “world scale” operations, producing on average 2500 to 5000 Metric Tons/Day. Over the past five years, ADI Analytics has completed more than 120 projects for both large and small companies, investors, and government agencies that had a variety of needs including market research, strategic planning, economic analysis, competitive landscaping, and technology assessments. The company’s CEO, Uday Turaga commented, “Our team at ADI Analytics has enjoyed working on this assignment. Conceptually, small-scale methanol plants offer advantages including lower capital costs in comparison to traditional large plants and a liquid, easily-transportable product with many applications. So it should offer potential to monetize natural gas from fields that are remote, have limited pipeline connectivity, or have relatively poor production or economics. But, as with all opportunities, these potential advantages should be assessed against risks around technology, market demand, and competition from large plants.” Bill Hall, SGICC Director commented, “Key to the ongoing success of the shale energy industry in the Commonwealth is finding outlets for the significant quantities of natural gas being produced here that are currently overwhelming the available pipeline take-away capacity. Our initial analysis of ways to use the gas uncovered the conversion to methanol as one avenue worth further investigation, and the report validates this opportunity as something worth analyzing by anyone seriously considering investing in downstream uses of the gas.” Go to http://www.sgicc.org/dced-grant-white-papers.html to access the report. The Ben Franklin Shale Gas Innovation and Commercialization Center (www.sgicc.org), an initiative of Ben Franklin Technology Partners/CNP (http://www.cnp.benfranklin.org) is designed to harness innovation and new technologies as a means to maximize the economic return to Pennsylvania’s citizens from the various shale formations comprise part of the energy reserves of the Commonwealth. The Center also identifies, supports and helps commercialize technologies and early-stage businesses that enhance responsible stewardship of the environment while properly utilizing this transformative energy asset. Original Source: http://extension.psu.edu/natural-resources/natural-gas/news/2015/06/ben-franklin2019s-sgicc-releases-study-on-the-small-scale-conversion-of-natural-gas-to-methanol The Ben Franklin Shale Gas Innovation and Commercialization Center (SGICC) funded a research study that looks at the potential to convert natural gas to methanol on a small to medium size plant scale. The study, titled “Natural Gas Utilization via Small-Scale Methanol Technologies” (copy below) concludes that yes indeed, such a use for potentially significant quantities of natural gas is feasible. Methanol is the simplest alcohol and is a light, volatile, colorless, and flammable liquid with a distinctive odor. Methanol is produced mainly using a two-step catalytic chemical process. It is an important chemical with a wide range of applications and end-uses. The SGICC’s research shows that methanol is priced similar to oil (i.e. much more profitable than regular natgas) and building plants in remote areas without pipeline infrastructure is relatively fast and effective. What’s not to like?…
Original Source: http://marcellusdrilling.com/2015/06/research-says-converting-marcellus-gas-into-methanol-is-profitable/ Shale International Interview - “Is remote monitoring the key to cutting methane emissions?”6/1/2015
 In this week’s interview we talk to Bill Powers, President and CEO of PixController. A recent winner of the Ben Franklin Shale Innovation Awards, PixController were recognized for their self-contained, real-time methane detection and monitoring systems. With regulations pending by the Environmental Protection Agency, that would require the shale industry to reduce methane emissions 45% by 2025, remote monitoring could be key. Monica Thomas (Shale Gas International): One of the reasons we became interested in your company is that it was one of the four technology companies which won the Ben Franklin Shale Innovation Awards. I understand that you were recognised for the methane detection solutions, but that this is not the only thing that PixController does, can you maybe tell us a bit more about what the company does in general? Bill Powers (President/CEO, PixController): Sure. In general we develop wireless technology that lets people connect to devices in remote areas that don’t require power or internet. And that’s kind of what our niche in the market is, so with that we are able to connect not just sensors but we can connect cameras and monitor in ways that you typically cannot do with the current technology. A lot of technology that is currently used today – especially in the gas industry – is legacy technology that they’ve used since the 1970s and they try to innovate a lot of these big, antiquated solutions but they just don’t work well in remote areas. Our forte is being able to take smaller technologies and more current technologies and apply it to not just to the gas industry but also to other environmental monitoring, also wildlife monitoring. MT: When I did research on your company I found something about Bald Eagles? BP: Yes, we got a chance to stream bald eagle cameras – the first time that eagles were nesting in Pittsburgh, Pennsylvania in over 200 years. Pittsburgh, as you know, was a very industrialised city at the turn of the century, all of the way through the 60s and 70s and it pretty much destroyed the city environmentally so when we had this opportunity, when bald eagles came back, we were able to stream that and it went viral. It became a big national event here in Pittsburgh. It was an interesting opportunity. MT: I did have a look at the camera but unfortunately the eagles were not there. BP: Yes, we had a bad spring this year and they only laid two eggs and they were not viable – both eggs broke, so last year there was a big event; but this year nature kind of took over. MT: That’s such a shame. Coming back to shale gas and your methane detection system; can you maybe tell us a bit more about why methane emissions are a problem? Is it a concern with active wells or is it across the board with abandoned wells as well? BP: Methane is becoming a big issue because it is a big greenhouse gas. The concern before was carbon dioxide, but methane itself is twenty-one times more potent than carbon dioxide is, so the Obama administration in the United States has now put together what they call a “Climate Control Action Plan” and the public will get to see the first regulations this summer. These regulations are going to go into effect next year, I think, so they are really trying to curb the oil and gas industry in the United States because it is such a methane emitter and it’s unregulated at this point in time. What they are trying to do is cut emissions by 45 per cent from a study they did in 2012. So, they’re going to try to monitor that and figure out ways to cut the emissions by 2025. A lot of techniques that are used today are basically manual methods; you send a linesman out, he monitors a site to look for emissions and you get one data-point. Whereas our technology, which is much cheaper for the industry to afford, gives you a lot more data and it really shows you what the true emissions are. It gets you real finds, because a lot of the controversy is that the study that was done wasn’t done properly because it used methods that don’t really give a true idea of what the current methane emissions are. Our technology lets the gas industry and environmental firms monitor emissions in real-time. We also take into account the environmental and atmospheric conditions because methane gas moves with barometric pressure, temperature, maybe even humidity, so we record all this data so they can get a lot of correlation. I think that scientists in general are going to learn a lot from being able to study methane emissions in real-time with our technology. MT: Do you also do baseline monitoring, before exploration takes place, or only during exploration and production phase? BP: Yes, that’s a great question. You do baseline monitoring beforehand because if you don’t then there is no way of proving that the shale gas provider actually caused the problem, or if it was a naturally occurring problem. A lot of methane is naturally occurring, especially in some areas in the north-east of the United States. You have old abandoned wells that cause problems, you have migration from shale layers up into the aquifers that might be naturally occurring so there’s no way of proving of whether drilling for shale gas actually caused the problem. So a baseline definitely has to be done and it has to be done as a continuous process – probably a couple of years after the well has gone from the place. MT: So before actual exploration takes place, do you just take one set of measurements? I remember being told by a monitoring company that to do it properly you should do it over twelve months before actual exploration takes place, because seasonal factors can affect the measurements, is that correct? BP: Yes, that’s correct. The problem is that the regulations here only require three or four months, but you’re absolutely right, you really should do it for a whole year. We’re actually monitoring a couple of abandoned wells now that have naturally occurring paths from the shale gas layer up into the atmosphere and we’re seeing a tremendous shift in the way the gas moves over the seasons because it won’t move as quickly in winter as it does in summertime. So baseline should be done for twelve months, but as some regulations only require it to be done three months beforehand, I would say that the regulations probably will change here at some point. MT: I imagine that an upstream company would be eager to drill once they’ve secured acreage, telling them that they have to wait twelve months before they can start drilling is probably not what they want to hear. BP: No, but the permit process probably takes a year, so it would be a good idea to start baseline monitoring when a gas driller applies for a permit. It’s just something that is going to be necessary to be done because this is such a potent gas. MT: What about the abandoned wells? You obviously need to monitor them continuously but once they’ve been abandoned, who actually pays for this kind of monitoring? If the company has already completed and abandoned the well and, in some cases may no longer be in existence, how does that work? BP: That’s, kind of, the thousand-pound gorilla in the room, because you are absolutely right. A shale gas company that might come in and has an abandoned well that might be on a 100 acre parcel that would be affected by their drilling, they think that they aren’t responsible for that. Because they are very expensive to cap – typically what they’ll do is they’ll drill all the way down to the bottom of the well – which might be several thousand feet – and fill it with cement, which is a very expensive process. I think that those questions are up for debate right now. In retrospect, if there are any problems, they still need to be fixed. So what we’re seeing, especially in Pennsylvania where a lot of natural gas drilling started over a hundred years ago, are abandoned wells all over the place, where the well integrity, the bore, has broken down. A lot of the piping was used during World War II for scrap metal, so a lot of the wells are just sitting open at this point in time. So that’s a big problem. I don’t think it has been decided yet who is going to be responsible for those, but there’s going to have to be somebody who will fix it. MT: When it comes to measuring methane emissions, can you explain where exactly you take the measurements? Where do you install the meters? BP: We try to measure as close to the source as we can, if we can find it. So we will measure over the whole gas chain, you know, from upstream through midstream. At the well-site, compressor stations, pipeline, especially the exposed parts of the pipeline, because these are the places where you are going to most likely get methane emissions. Methane is a very light gas and as soon as it gets into the atmosphere it tends to rise very quickly, it’s a single molecule. And it’s only explosive when it gets to five per cent in a hundred per cent volume, through to fifteen per cent. The five per cent is what they call the LEL (lower explosion limit), and fifteen per cent is the UEL which is the upper explosion limit. We monitor for that lower explosion limit so we proliferate the area with a lot of sensors, if we get anything near that, that’s when you have a problem and you need to send someone in to fix something. We try to make this sensor technology very inexpensive for the industry to use and be a lot more valuable in terms of the data they collect over the current methods, so that’s how the industry can really use this and monitor a lot of parts of their infrastructure. With that said, it’s real-time data and lets them respond to problems in real-time instead of a month or maybe even a year later. MT: So what happens when a methane leak is detected? I understand that your devices can communicate via the internet but also using a mobile network? BP: Right, we can communicate over a Wi-Fi network, over a mobile phone network and even over a satellite network to transmit all the data to a cloud and you can see all your data in real time as well as your historical data. You can look at that through your cell phone, your tablet, or just through your PC. If something does happen, it will alert you in real-time. Say you have a leak that’s above a certain level of methane, the sensor will send you a text message or an email to let you get on site. You then would send a team of people who would bring in higher-grade equipment to find the exact source. Sometimes they actually look through video cameras – there’s a technology that is called Forward-looking Infrared (FLIR), and that technology is basically a thermal camera that allows you to see the methane plumes through the video camera, and if you see something like this, you can send people in to fix it. MT: In other words, your solution replaces the need to send an employee to the site to carry out these measurements manually. BP: The manual way is very expensive for the industry and it doesn’t give a lot of data either. What we’re seeing in monitoring natural-occurring methane sources is that methane might be moving one day and might not be moving the next, so if somebody is checking something manually, they might not get anything. Those methods of checking methane using a linesman that goes out maybe once a month or once a week are really inadequate for finding these problems. MT: You mentioned legislation – are there any guidelines currently that say how much methane can be emitted? BP: They are really looking for a “zero-emission policy”. In the state of Colorado in the United States right now there is the Bureau of Land Management, or the BLM. They have already put regulations in place, and it has been challenged by the industry, to have a zero-emission policy, especially for new gas wells going in. The current federal regulations by our Environmental Protection Agency, the EPA, would only cover new gas wells that go in – the problem there is that there is so much existing methane that’s emitting and it’s not addressing that. So I think that is something that needs to be looked at as soon as these policies are released this summer. MT: Do you expect your company to benefit from this movement towards more environmentally-conscious regulations within the industry? BP: That’s why we did it, yes, because it is beneficial to us but it is also beneficial to the industry and people in general. It’s something that does need to be addressed, we are just trying to find an inexpensive solution that makes it profitable for gas companies to look into these kind of things. And quite frankly it is a way in which they can curb emissions, but also make more money because they are not losing the gas. I think these companies will really want to comply with these regulations when they come down. MT: Are there many oil and gas companies already using your solutions? BP: We are in pilot programmes with several big energy companies right now, so I would say that within the next few months we will see a lot of other companies coming to ask to use our technology. We are in the infancy stage just now, but we’re getting a lot of great feedback about what we’re doing. MT: So, following on from the previous question, where do you see your company in the next three to five years? BP: I see ourselves developing more products within the oil and gas industry, especially for environmental monitoring. We’re looking at some water quality products at this point in time, but I see shale gas in general being a global issue so I see us expanding globally into this market very quickly. MT: In terms of shale gas outside of the U.S., where do you think it’s going to happen? BP: That’s a tough question! From what I see globally, I would suspect it would happen in Europe first just because it seems to me that Europe seems to buy a lot of its natural gas right now from Russia – which can be an issue – I would think they would want to become natural gas independent, so that would be my first guess. The sources of shale gas are, obviously, global so it’s a fantastic energy source if it can be harnessed and done properly. Original Source: http://www.shalegas.international/2015/06/15/is-remote-monitoring-the-key-to-cutting-methane-emissions/ CANONSBURG – Four companies each walked away with winner’s checks for $25,000 at the 4th annual Shale Gas Innovation Contest Tuesday at Southpointe.
The winners were: • Appalachian Drilling Services, Inc., Beech Creek: Provider of spill-proof, skid-mounted and rig-friendly waste storage units specifically built to withstand life on drilling rigs and mitigate the chances of any type of spill. • EthosGen, Dallas, Luzerne County: Offering systems that convert waste heat to electricity through a unique piston-based Organic-Rankine Cycle scalable power solution available from 12kW to 250kW. • Fairmont Brine Processing, Fairmont, W.Va.: Evaporation and crystallization process that fully treats wastewater, extracting reusable byproducts, and the ability to also formulate fracture stimulation fluids specifically to meet an operating company’s completion design. • PixController Inc., Export: Offering a low-cost methane gas detection system that integrates a digital methane sensor with temperature and barometric pressure data, providing data access via a low-power battery operated wireless monitoring backbone, and ability to integrate optical or FLIR camera technology, full weather station and water quality monitoring to the system “The 14 finalists once again showed the diversity of ideas being brought to the table by entrepreneurs and small companies in the region to help advance the shale energy play,” said Bill Hall, SGICC director noted in a news release. Pix Controller CEO Bill Powers credited SGICC with helping to drive his company’s product development. “The SGICC has been instrumental in accelerating the development of our gas-monitoring products,” he said. “Without the support and guidance of the SGICC and Ben Franklin, we might have missed our window of opportunity to present our solution to the shale gas industry. Entrepreneurs are fortunate to have these organizations in the state of Pennsylvania.” This year, the contest once again included a winner from the state of West Virginia, thanks to a grant provided to the SGICC from the Benedum Foundation. “Winning this award validates the industry’s necessity for an environmentally responsible alternative to deep-well injection,” said Brian Kalt, general manager. “Fairmont Brine Processing has executed another major step in the commercialization of our patented evaporation and crystallization process, and we are looking forward to developing new opportunities with E&P companies as they seek a long-term solution for the wastewater produced in the natural resource extraction process.” Michael Makowski, manager of new technology initiatives at PPG Industries, a sponsor company and judge, praised the event for its ability to uncover creative new technologies that can positively impact the oil and gas industry. “As a technology scout, there is no better opportunity to see high-caliber innovations on display at a single event focused on adding value to this important growth area,” he said. The sponsors for this year’s contest included Ben Franklin Technology Partners and numerous companies working in the oil & gas sector. The Ben Franklin Shale Gas Innovation and Commercialization Center supports and commercializes early-stage technologies that enhance responsible stewardship of the environment while properly utilizing natural gas as an energy asset. Original Source: http://www.observer-reporter.com/article/20150515/NEWS08/150519639 PITTSBURGH
On May 12th in Southpointe, PA, during the Fourth Annual Shale Gas Innovation Contest, out of 14 finalists, the following four companies each walked away with a winner’s check for $25,000:
The list of the 14 Finalists with a full description of their technologies can be found at: http://www.sgicc.org/2015-shale-gas-innovation-contest.html. The Ben Franklin Shale Gas Innovation and Commercialization Center (www.sgicc.org) supports and commercializes early-stage technologies that enhance responsible stewardship of the environment while properly utilizing this energy asset. Shale Gas Innovation & Commercialization Center Bill Hall/ Director, 814-933-8203 billhall@psu.edu Original Source: http://www.mromagazine.com/press-releases/four-winners-of-100000-shale-gas-innovation-contest-announced/ For More Information:
John Siggins/jes42@psu.edu Ben Franklin’s Shale Gas Innovation & Commercialization Center 814-865-2879/814-404-1952 Many stories have been written about the early innovators that helped launch the shale gas revolution such as George Mitchel who spent decades mastering the hydraulic fracturing process. Others are touted for their tireless efforts perfecting directional drilling, the second key component the industry utilizes today. Companies like Range Resources took early risks experimenting with the drilling and hydraulic fracturing processes, and many current large and small production companies are fine-tuning and improving the extraction process every day. Then, there are the midstream companies rapidly developing improved techniques to separate natural gas liquids and water from the oil and natural gas, and improving methods to move the products to end markets. But, who else is contributing to the shale energy innovation revolution? Who are the next generation of Shale Gas Innovators? On May 15th in Southpointe, PA, just west of Pittsburgh, a group of these entrepreneurs will show off their new ideas and in some cases, commercially available products or services. The Shale Gas Innovation & Commercialization Center or SGICC (www.sgicc.org), a Ben Franklin Technology Partners supported center located in State College, Pennsylvania, is hard at work to help support a myriad of entrepreneurs across the state hoping to launch a new product or service that will have a positive impact on the process of shale energy extraction, resource utilization, and improved safety – not to mention the new environmentally sound practices being used during the process. Bill Hall, SGICC Director, spends his time focused on advancing the most promising ideas. “Until you’ve been in the trenches so to speak, it’s hard to explain how challenging it is to advance an idea all the way to commercial success.” My job is to sort through the dozens and dozens of promising ideas, and identify the ones that we can impact by shining a light on them using a small amount of seed funding and then helping them vet their concept with potential end users.” The shale energy play offers a new playing field for many entrepreneurs. For others it is a new market opportunity for their existing product or service. Take for example KCF Technologies located in State College, PA. KCF has commercialized a low cost, low power sensor that is used for wireless monitoring of rotating equipment, also known as condition-based maintenance. Current customers include the pulp and paper industry as well as the building maintenance sector. In 2013 KCF identified the oil and gas industry as a potential significant market after competing in SGICC’s second Shale Gas Innovation Contest. Now, with the support of SGICC through a seed grant, they are in the middle of a demonstration project to prove the value of their technology to this new market segment. SGICC has developed a simple tool that helps uncover the ideas. Two years ago they held their first Shale Gas Innovation Contest, offering $50,000 in prize money. Now approaching the end of their third contest, the prize money has doubled to $100,000, and the number of entries has almost doubled as well. On May 15, 2014 at their Finals Event being held near Pittsburgh, four winners will walk away with a check for $25,000. Hall states, “It’s not the money these companies are after; it’s the exposure the contest provides them. We’ve attracted 17 sponsors for this year’s event. The list of sponsors includes many of the largest shale energy players along the value chain; producers, midstream companies, and major vendors involved in the production and environmental management that goes on during the process. Having these companies that also supply the contest judges engaged in vetting the technologies is key to the process.” Steve Winberg, Vice President of Research & Development at CONSOL Energy is one of the contest judges. Steve notes, “We have worked with SGICC for three years now and found their process of uncovering innovations across the Commonwealth to be of real value for the industry.” Dante Bonaquist, Senior Corporate Fellow, R&D at Praxair, another sponsor and judge commented, “Through the Shale Gas Innovation Contest, SGICC brings together a broad range of promising ideas covering production, transportation and utilization. From the technology scouting perspective, there is no better opportunity to see high caliber shale gas related innovations on display at a single event.” One of last years’ winners was REV LNG, a company located in north central Pennsylvania that offers “on-demand” liquid natural gas that they purchase from electric utilities that are required by law to store LNG for use during extreme weather/ peak shaving events. REV LNG delivers the LNG to customers via large refueling trailers. Customers range from trucking companies to drillers wishing to use liquid natural gas to power their equipment used on the drill sites. David Kailbourne, CEO of the company, believes the innovation contest was instrumental in launching the company’s growth spurt over the last year. Kailbourne commented, “The shale gas innovation award gave Rev LNG a tremendous amount of exposure, and we were delighted to participate in the contest. We certainly have received a substantial amount of notice and publicity from being named a finalist and winner, and it provided a valuable platform to expand our business.” Hall notes, “These are the kinds of success stories we like to highlight. And, we know there are many more stories just like this one that can and will be told over the coming years. My objective is to speed up the success process, fast tracking technologies that can make a difference to end-users of the technologies while producing jobs in our state.” Recently SGICC secured a grant from the Pennsylvania Department of Community and Economic Development (PA DCED) through their Discovered and Developed in PA (D2PA) program. The money will fund seed grants to help develop the most promising commercially viable products or services SGICC uncovers. Also included are some funds to provide studies on critical bottleneck areas where the shale energy industry can use new innovations, or where opportunities exist for improvements. Hall said, “We’ve just started to award our first few D2PA grants. These grants can help tremendously by allowing us to nudge opportunities over the hump, either through funding successful demonstrations, or assisting the awardee with solving some challenging issue they may face such as a supply chain, or marketing and sales challenge. One of the grants in process is geared toward a new concept for natural gas utilization, a bottleneck that the industry faces. I can’t divulge any details at this time, but we think this concept can be a game changer, and in an area where innovation needs to occur. There’s so much natural gas being produced in our state, and it would be a tremendous shame if we can’t develop ways to use the resource to benefit industry right here versus piping it all to end users far away from the generation point.” In 2013 the Benedum Foundation recognized the work that SGICC was doing, and the foundation stepped in to offer grant funding to expand the Shale Gas Innovation Contest to include the state of West Virginia. The grant has recently been extended for two more years, so innovators across West Virginia can benefit from the exposure the Innovation Contest provides. “Ask any of the contest finalists the value of having their idea vetted by the caliber of the judges we’ve assembled,” Hall comments. “Ask them the value of the exposure the contest provides. We are thankful that the Benedum Foundation recognized this, and has supported our efforts.” There is no charge to attend the upcoming Shale Gas Innovation Contest Finals Event that will be held at the Southpointe Hilton Garden Inn from 1:00 pm to 5:00 pm on May 15, 2014. Included in the finals event will be presentations by the thirteen finalists, and also special presentations by Chevron Technology Ventures, and GE, both of which are contest sponsors and judges. To view a list of the thirteen finalists and their technologies, see a detailed agenda, and to register to attend the event go to www.sgicc.org and click on the “$100,000 Shale Gas Innovation Contest” button. |
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