The EIC's Supply Chain Case Study Series highlights key EIC Survive and Thrive Insight Report case studies all throughout COP26, highlighting the success stories of the energy sector in decarbonisation and innovative new energy transition technologies.
On Day 3 we look at DNV's shift from services to solutions.
How is DNV thriving?
Having been in operation for well over 150 years, DNV has always approached the market in a progressive manner: following on from a strong track record in the maritime industry and with the advent of oil production in the North Sea, DNV entered the oil & gas industry bolstered by extensive experience and a strong understanding of hazardous and unique offshore conditions. After the oil crisis sparked in 2014 and with the growing momentum being gathered by energy transition activities, the company was ahead of the game and was already positioned as the road to achieve the goals of the Paris agreement became prevalent for all energy companies. Cue the creation of a ‘lifetime solutions’ approach to business – a move which is still ongoing but already delivering some promising yields.
The challenge
Even the most established of servants to the energy industry have had to adapt, in recent years, as a result of fluctuating market forces. The oil crisis of 2014 coupled with the seemingly unstoppable march of energy transition has brought into question the long-term viability of firms which once almost exclusively catered to the oil and gas industry.
Whilst adapting to the shift, and recognising the opportunities to support oil & gas companies in their decarbonisation challenges. DNV also realised it had to better understand the client journey in order to shift away from a clearly defined service provider into a multi-service solutions company capable of solving complex problems.
The solution
Recent years have seen DNV shift to what it refers to as a lifetime solutions approach to business.
It is very much a gradual process that is still ongoing, an important milestone being the formation of a new Energy Systems division to reflect the changing market where the oil and gas business area was combined with the growing onshore / offshore wind, solar, hydrogen, CCS, power, and energy storage businesses.
The inspiration for the lifetime solutions approach came from listening to existing clients, a process which has revealed the importance of understanding a wider scope of their challenges to present a more relevant, tailored, enticing offering.
Institutionalising the shift in working mindset involved a multi-departmental approach coupled with a recognition of the customer challenge and an ‘all out’ desire to pull the best resources and focus on an efficient result, whilst maintaining a high level of safety and quality.
It was a cultural change that needed to happen for the move to be successful, and benefits were soon realised. The newfound synergy across services removes duplication and enables greater levels of productivity. For example, witnessing traditionally required input from departments such as marine warranty, verification and inspection departments – today, this work can be carried out by one DNV employee, in close collaboration with content experts.
The establishment and development of the Energy Systems division, using this project based cross service way of working has opened up many new opportunities.
An example is the work with a London-based Energy from Waste company, who are licensors of technology which converts waste plastics back into household grade plastics.
The cooperation with DNV GL started in 2018, when DNV worked with them to help secure funding from financial institutions. Since then, the scope has broadened to include operational work, such as assessments of the company’s technology at its facilities.
Another project kickstarted in 2018 and remains ongoing today with a North Sea operator Here: DNV assisted the company in the early stages through provision of traditional oil and gas FEED services, including safety studies, verification and marine warranty services for the platform, pipeline and terminal.
In completing this early-stage work, the firm built up trust and soon realised it could add lifetime project value. Their customer also saw the potential for DNV to add greater input beyond quality and safety services, and DNV in turn began to ask questions, guide and support the client as the nature of the relationship evolved – this proved invaluable in navigating the challenges presented by COVID-19 throughout 2020. The approach has paid dividends, with DNV now also supporting with specific challenges.
A third key customer project is not only providing a range of off-the-shelf services. With ongoing discussions and improvement initiatives in operation, DNV is also engaged in solving specific challenges as part of the customers bid to build environmental, social governance (ESG) compliance.
DNV, with these and several other case studies under its belt, is now well-positioned to attack energy transition challenges head on with a lifetime solutions mindset. The approach is truly collaborative.
About DNV
An organisation present in more than 100 countries with experience dating back to the 19th century, DNV has grown to become one of the world’s leading quality assurance and risk management players. The company provides classification, technical assurance, software and independent expert advisory services primarily to the maritime, oil and gas, power and renewables industries. Focus areas also include digitalisation, ocean space, cities and ports, and life sciences.
A company that invests 5% of its revenue in R&D, DNV is engaged in several joint industry projects (JIPs) in collaboration with customers with a view to develop solutions, standards and practices that help solve industry challenges. JIPs related to the role of natural gas in the energy transition process include the development of a risk evaluation tool for FSRU-to-power projects and the introduction of a quality assurance protocol for the use and transport of CO2, among others.
Read the full EIC Survive and Thrive Insight Report here.