Breaking into a large and established market such as the oil and gas industry is always a challenge.
Smaller companies in particular often find that the large oil and gas players struggle to deal effectively with them.
However, with Scottish Enterprise's wide-ranging support, including funding, advice and access to experts, Zilift experienced a smoother journey through the crucial development stages.
Holders of a brilliant idea and associated IP, Zilift faced significant challenges of commercialisation and market entry. The Aberdeen-based firm was formerly part of the Norwegian company Ziebel but fully demerged in 2010 to allow the company to focus on its artificial lift technology.
Used in driving the production of oil and gas, Zilift's technology assists in gas and oil extraction particularly in later life wells.
They recognised that there was a market need for small diameter pumps that can be installed within the production tubing without the need of expensive drilling rigs. The company also recognised that there are no artificial lift solutions for small diameter, deeper or horizontal wells.
While Zilift held the great idea and associated IP, the company recognised that they lacked some of the expertise to enable them to develop a commercial product and bring it to market. Scottish Enterprise became involved with the company in the run-up to the demerger.
The early support provided by Scottish Enterprise focused on the development of Zilift's product lines. Key to driving this activity was the award of a SMART grant. Two products have emanated from this grant: TorqueDriveTM for heavy oil production which has entered field trials, and SpeedDriveTM for conventional oil production.
Additional R&D funding allowed for the development of the prototype down-hole linear motor. Further support from the Scottish R&D and Innovation scheme provided material assistance in the development and testing of a full-size down-hole linear PM motor. This funding not only accelerated the rate of product development, but also meant that trial testing could occur sooner.
The Scottish Manufacturing Advisory Service (SMAS) engaged with Zilift during the R&D stage to independently evaluate the pilot of a simple planning tool "People Planner"; this aimed to optimise the allocation of the engineering resource amongst the project portfolio.
In addition, SMAS carried out a manufacturing review, evaluating future requirements and assessing whether manufacturing in Scotland would be possible and commercially viable.
Following the SMAS review, Zilift received further help with remodelling the factory layout to provide a lean manufacturing and assembly area. The award of a Scottish Enterprise mini-capex grant for the first production line will lead to the commercialisation of the first of the company's artificial lift solutions.
Alongside product development and manufacturing support, Scottish Enterprise has also assisted across a number of other areas of the business. In particular, when Zilift needed to acquire and implement a SAP-based business system, Scottish Enterprise was there to help, providing the advice and support of an external ICT expert consultant.
Additionally, and as part of the Talent Scotland scheme, funding was made available to employ a member of staff to implement and embed the system.
Following an introduction through account management signposting, Skills Development Scotland has provided Zilift with support in training and in the design and development of the most effective team structure for the company.
Recognising the international market scope for the Zilift technology, Scottish Development International has worked with the company to provide networking opportunities and introductions.
Iain Maclean, managing director of Zilift, said: "My eyes have been opened to the amount of support that is available to a company such as Zilift. There are few areas of the business and its development that have not been influenced by Scottish Enterprise; from product development, through manufacturing and now into commercialisation, sales and marketing."
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