Airborne Oil & Gas becomes Strohm: How a company in transition is reflecting on its name
For the past 10+ years, Airborne Oil & Gas has been at the forefront of bringing disruptive, enabling TCP technology to the marketplace. We are the first company to have developed Thermoplastic Composite Pipe (TCP), introduced it to the Oil & Gas industry successfully and enjoyed its widespread use across the globe. Today, we have the largest track record on TCP in the world, and we see acceptance accelerating every day. We are the recognized technology leader in this field, with zero failures of TCP installed to date*.
We have been successful in working closely with our clients, contractors and operators, taking their requirements as starting point for our product and technology development, communicating openly about our technology and products, making them comfortable about our design, qualification and production methods and working with them all the way to supporting our TCP products in their operations.
It is through this approach that we have witnessed the industry moving through a transition whereby environment, sustainability and governance becomes increasingly important, where Oil & Gas operators are increasingly aware of their responsibility as active stakeholder in society and where they are accelerating their efforts to be a constructive player in the energy transition.
It is the combination of our company’s growth, our DNA to support our clients and our passion to contribute to the sustainability of our society that we have decided to move on beyond Airborne Oil & Gas and become Strohm.
To start: The downturn leads to a temporary step back in the continued growth story of Strohm
The industry is moving through a difficult time which affects everybody. Also in Strohm, we have been affected by project delays that required Strohm to pause our growth and adapt to match the organization to the lower predicted activity levels for the short term. While this reduces the steep growth in capacity for producing TCP, we do retain our core competences, regional presence and continue to invest in new product development, which expand our product offering in our current markets but expand with a stronger focus on sustainability and energy transition.
There are opportunities also in this downturn, that play to the strengths of TCP and Strohm:
- As we passed the pivot point in 2019, we continue to see an increase in acceptance of TCP in the industry, with a focus on “high level” TRL** technology (TRL 5 and higher) which benefits our TCP for we have the largest track record in the world
- We also see a further drive towards standardization in the subsea industry, which plays to the strengths of our TCP Jumper products; this is reflected in 2 contract awards this year alone with more contracts anticipated in the short term
- Where TCP found first applications mainly in the brownfield market, we see this market to continue to develop, with the largest greenfield projects seeing higher impact. The TCP technology and track record is embraced by the industry in this field and we continue to develop this
- We see that, despite the downturn, many key players continue to develop their sustainability agenda and drive forward to reduce their footprint. With TCP we have a technology that enables and supports that drive and we are excited to be able to support our clients here
Where the downturn is a significant deterioration in the Oil & Gas market at large, for a smaller and disruptive new technology player like Strohm, it represents only a temporary halt, which we can weather well with the ongoing support from our shareholders. Moving forward, we continue to grow and evolve as a relevant player in the Energy Transition field, and other markets outside of Oil & Gas.
Passing the tipping point: How we in Strohm break through and grow
Even through the downturn in the industry we have seen TCP accelerating its adoption in the market place. We have continued to be able to land contracts for TCP, expanding our track record in all major oilfield markets, adding new operators and working with most major contractors. With a full overview shown in Figure 1, some highlights:
- We have the world’s first TCP in a permanent installation on Chevron’s Alder field, UK.
- We have track record on hydrocarbons, water injection, gas, methanol injection and chemical injection
- We have completed several flowline installations, in West Africa and Asia Pacific regions
We have seen in the industry how acceptance of new (high TRL) technology grows through a downturn, especially when the technology has a proven impact on the business case. We have had a particular focus on working with our Key Accounts to qualify our products through elaborate and detailed qualification programs, following the DNVGL-ST F119 standard which we initiated in 2014.
Through our work with our clients we have proven that our TCP Jumper and TCP Flowline products have a major positive impact on the project economics. This has led Strohm to pass the tipping point in 2019, leading to a significant increase in production volume as shown in Figure 2.
Figure 1: Track Record Strohm May 2020
Figure 2: Passing the tipping point: Rapid production volume growth
Forward looking: How do we in Strohm look at the Energy Transition and how we can support our clients
In Strohm, we see huge potential in the Energy Transition but also in the sustainability efforts of the Oil & Gas industry today, and we believe we can be an active and enabling partner for the industry. One of our shareholders, Shell, is aiming to decrease the net carbon footprint of the products they sell, with 30% by 2035 (up from 20%) and with 65% by 2050 (up from 50%). The net carbon footprint includes the carbon intensity created by the burning of the fuel they sell. A growing list of operators have similar ambitions to reduce the carbon footprint of their operations and products they sell. As such the oil and gas industry is taking unprecedented steps towards a lower carbon energy system.
Strohm, in our goal to support the industry towards net zero, is working towards reducing the CO2 footprint related to our product, TCP, across the same scopes 1, 2 and 3*** and to report on this on a regular basis. We see that the TCP as a standalone product can have a lower footprint compared to steel, and that installation and operation further reduce the footprint, leading to a 50+% potential in CO2 footprint reduction. We are involved in a Joint Industry Program on this subject with DNV in an industry wide effort to map the CO2 footprint and will continue to develop and implement our sustainability roadmap.
More specifically, we do this through three things:
- We work towards reducing our own CO2 footprint and support our clients in reducing the CO2 footprint of their infrastructure. We commit ourselves to understanding our footprint in detail, certify it, report it in our product datasheets and support industry efforts in improving our understanding.
- We reduce the footprint under our own control step by step. Today we buy 100% green energy, we compensate our air travel 100% and are developing recycling methods for TCP. Having recognized that TCP has a huge potential to reduce the CO2 footprint of a pipeline infrastructure, we develop use-cases and work with our clients on how they can use TCP to reduce their footprint.
- We believe in the future of green hydrogen; it does not create any CO2 when converting to energy, it can be stored, traded, shipped and transported. Through our initial insights we believe that TCP can be an enabler for the offshore green hydrogen future, through a) a drastic reduction of total installed cost, b) no maintenance and c) lower CO2 footprint. We are investing in our product development in order to support this green future.
The case for change: Airborne Oil & Gas becomes Strohm
- With our company having introduced and broken through with TCP technology, with the largest track record in the world with continued growth in acceptance in the Oil & Gas market;
- with yearly growth in revenue and kilometer-pipe made throughout the 5-year period to date;
- with our commitment to sustainability and to reducing the footprint of our products, and
- with new opportunities arising in the energy in transition space,
- we knew the time had come to change our name and move to a name that reflects our future.
Through our new name we wanted:
- to show where we are going,
- to show growth, flow and movement,
- we wanted to show what we do, Now and in the Future
- we wanted to be not English, not Dutch, not German, nor French, but International with European roots
- we wanted to present energy, in flow and transition
- we wanted a name unique, and different
This is how Airborne Oil & Gas became Strohm.
Please contact email@example.com if you would like to discuss how we can support your project.
*TCP have been installed and is in operation in hydrocarbon, water injection, MEG injection and gas lift applications
**Technology Readiness Level
*** As defined in the Green House Gas emissions protocol