What we learned from doing a cross-offices research on biogas markets in Europe.
Conclusion from The Norwegian Water resources and energy directorate (NVE) was that there are good possibilities to increase the use of waste from fish farms, sewage heat, agricultural residues and macro- and microalgae. By developing a Norwegian system solutions, companies can both incorporate European experience in the field and think international already at the early stage. We believe that there are a lot of opportunities for the Norwegian companies out there in Europe.
Last year, five Innovation Norway offices abroad in Europe united to explore opportunities abroad for the Norwegian companies in the field of biogas. Italy, Poland, Germany, Sweden and Russia were involved.
We started by asking already established companies in Norway about what they consider to be the critical success factors for entering foreign markets and then compared these success factors in the selected European markets.
Our main findings are:
1 European markets are generally of two categories. Ones that are far ahead like Germany, Sweden and Italy and emerging markets like Poland and Russia where biogas is not widespread.
2 Different countries see the application of biogas differently: transportation (biogas as fuel), producing electricity and/or heating.
What’s in it for you:
While immature markets are interested in delivery of the technology and the whole value chain, mature markets are looking to increase profitability and efficiency of already running plants.
Mature markets may require some reengineering of the their current system with new subsystems and new components. Then the customers are primarily the owners of the existing plant, like in Germany.
Emerging markets may aim for a total systems delivery, maybe as a part of a waste management plant. The road to these end-customers may often be via a local Engineering Procurement and Construction (EPC) company or Systems integrator, like in Poland and in Russia.
A “take away” from the study:
Be aware of what your company can offer in countries priority field and whether this market’s need is consistent with what you can supply. For example, Italy is aiming at transport, Germany has its focus on heating and electricity, Poland is an emerging market focusing on electricity and heating in order to be less dependent on traditional sources of energy.
For full reports, please contact Project manager Ludmila Tolstova, Innovation Norway Russia firstname.lastname@example.org