Introduction
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Which types of knowledge are used in demonstration plants and what is the role and purpose of each type?
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What are the key knowledge-based challenges in demonstration plants so that technologies can progress towards commercialization?
Theoretical background
The role of demonstration plants in technological development
Knowledge types in demonstration plants
Method
Research design
Research setting and data collection
Demonstration plant | Classification* | Short description |
---|---|---|
GoBiGas | Industrial-scale verification, still in technology verification stage | The municipal energy company, Göteborg Energi, is the owner of the GoBiGas Demonstration Plant located in the industrial area, Rya Harbour, in Gothenburg, Sweden. The plant demonstrates indirect gasification of biomass for the production of biogas (synthetic natural gas quality, SNG). The gas from the plant is injected into the existing natural gas grid and can be used for a number of different purposes (transportation, feedstock in the chemical industry, production of power and heat, etc.). In early 2014, the plant was established with the initial intention of working as a phase 1 demonstration. So far, the plant has verified gasification of pellets and is presently being converted to manage more diverse feedstock such as forest residues. |
LignoDemo | Industrial-scale verification PDP developing towards a permanent test center | The LignoDemo Demonstration Plant was established in 2007 and is located close to the Nordic Paper pulp mill in Bäckhammar, Sweden. The owner of the plant is LignoBoost Demo AB, a subsidiary of the research institute RISE. The LignoBoost process, extracting lignin from the chemical pulping process, was verified in this plant, which is currently in the process of transforming into a permanent test center as part of an initiative called LignoCity, focusing on evaluation and verification of new processing concepts for lignin. Extracted lignin has a wide range of possible uses from bulk applications such as fuel for boilers to high-value applications such as carbon fibers. The technology can also be used to unburden the recovery boiler and, by so doing, facilitate higher production capacity without investment in additional boiler recovery capacity. |
LTU Green Fuels | Permanent test center, but presently in a mothballed state | The LTU Green Fuels Demonstration Plant is owned and managed by Luleå University of Technology and works on the gasification of biomass, mainly black liquor but also co-gasification of pyrolysis oil. The gasification plant was set up in 2005 and was supplemented with a unit for dimethyl ether (DME) production in 2010. The facilities are located next to the Smurfit Kappa pulp and paper mill in Piteå, in close proximity to ETC, which hosts a laboratory and a number of pilot plants. DME and methanol produced in the plant have been used in demonstrations of downstream auxiliary technologies, e.g. fleet trials of DME trucks. In late 2016, the decision was taken to mothball the plant in 2017,and this was duly implemented. |
Biorefinery Demo Plant (BDP) | Permanent test center | The Biorefinery Demo Plant (BDP) is part of a biorefinery initiative located in Örnsköldsvik, Sweden. The plant was inaugurated in 2004 and is today co-owned by Luleå University of Technology, Umeå University and the technology developer, Sekab (minority share), but it is managed by RISE. The plant initially focused on the development of technology for ethanol production based on lignocellulosic feedstock (for use as transport fuel or as a chemical) but has over time developed into a broader biorefinery plant based on the so-called sugar platform (i.e. the transformation of lignocellulosic raw materials into sugars and thence into a range of products). Since late 2013, the plant has been operated as an open test center. |
NR | Respondent | Plant | Date | Duration (h:m:s) | Words transcribed |
---|---|---|---|---|---|
1 | Professor | LignoDemo Demo Plant | 151,008 | 52:39 | 6076 |
2 | Manager | LignoDemo Demo Plant | 151,015 | 51:28 | 7481 |
3 | Industrial manager | LignoDemo Demo Plant | 151,125 | 58:28 | 6687 |
4 | Industrial manager | GoBiGas | 150,908 | 45:24 | 5334 |
5 | Industrial manager | GoBiGas | 150,910 | 1:17:43 | 10827 |
6 | Industrial manager | GoBiGas | 151,008 | 1:06:26 | 6207 |
7 | Professor | GoBiGas | 151,010 | 46:06 | 5088 |
8 | Manager | LTU Green Fuels | 150,611 | 1:07:05 | 8300 |
9 | Industrial manager | LTU Green Fuels | 151,002 | 1:37:02 | 11757 |
10 | Senior advisor | LTU Green Fuels | 160,212 | 32:46 | 3550 |
11 | Professor | LTU Green Fuels | 180,208 | 33:36 | – |
12 | Industrial manager | LTU Green Fuels | 180,209 | 22:30 | – |
13 | Manager | Biorefinery Demo Plant | 150,922 | 1:22:01 | 9927 |
14 | Senior advisor | Biorefinery Demo Plant | 151,013 | 40:48 | 4289 |
15 | Industrial manager | Biorefinery Demo Plant | 151,013 | 54:18 | 8400 |
16 | Industrial manager | Biorefinery Demo Plant | 151,013 | 41:23 | 5888 |
17 | Professor | Biorefinery Demo Plant | 180,123 | 30:29 | – |
18 | Manager | Biorefinery Demo Plant | 180,123 | 35:53 | – |
19 | Administrative official | Swedish Energy Agency | 160,209 | 52:20 | 5753 |
20 | Administrative official | Swedish Energy Agency | 151,202 | 56:54 | – |
Data analysis
Sensitizing concept | Definition | What we looked for in the data |
---|---|---|
General knowledge |
Knowledge of a broad range of facts about various subjects, available to everyone.
| Knowledge about the surroundings; business intelligence. |
General knowledge is gained through day-to-day experiences and general education without regard to any specific domain. (
Court
1997
).
| Societal trends. | |
Procedural knowledge |
Knowledge about how to do something, exercised in the performance of some task.
| Know-how about the technological development from ideation to commercialization. |
Knowledge on how to do something gained from the experience of undertaking a task within the domain. (
Ramesh and Tiwana
1999
).
| How to organize the development work. What to do when, how to do it and by whom. | |
Ways of working; how are different types of collaboration executed, how are experiments performed, what inter-organizational forms of working are there and how are they organized etc. | ||
Domain-specific knowledge | Results from development, causal knowledge about how things work. | |
Technological progress: What works and what does not work. | ||
Technical experiments. | ||
Biorefinery activities. |
Becoming familiar with the data
Analysis based upon sensitizing concepts
Reviewing codes
Findings
Plant | GoBiGas | LTU green fuels | Biorefinery demo plant | LignoDemo |
---|---|---|---|---|
Usage of…. | ||||
General knowledge | ||||
To secure funding | X | X | X | X |
To facilitate business opportunity recognition | N/A | X | X | X |
Domain specific knowledge | ||||
Prerequisite to bring about a demonstration plant | X | X | X | X |
The base for technology development | X | X | X | X |
Used for troubleshooting | X | X | X | X |
Used for flexible management of permanent test centers | N/A | X | X | |
Contributes to business opportunity recognition | N/A | X | X | X |
Procedural knowledge | ||||
To manage legal issues | N/A | X | X | X |
Creation of a demonstration plant | X | X | X | X |
Management of inter-organizational teams | X | X | X | X |
Patenting | X | X | X | |
How to operate a permanent test center | N/A | X | X |
The role and use of general knowledge
A commercial company cannot wait two years for these things, it is completely wrong. They [the commercial company] had gone further with other installations that had received this money [that the company originally had assigned for the project that sought public financing]– so it was a failure.
However, luck is not sufficient. Business intelligence (i.e. environmental scanning of opportunities and threats) and domain-specific knowledge (e.g. possible areas for technology applications) contribute to technological development by helping to identify business opportunities. For example, the selling of the LignoBoost patents to Valmet was possible because of i) the business intelligence of the professor involved in the LignoDemo demonstration plant who carried out the screening of possible buyers and ii) the domain-specific knowledge concerning filtering and soda boilers of the professor and the managers at Valmet (at that time called Metso), leading to the creation of the business opportunity. Finally, the findings do not explicitly demonstrate an intended use of general knowledge in demonstration plants, such as the systematization of business intelligence handling.These things depend on beneficial circumstances; I mean you have to have luck. As with the facilities in Bäckhammar, it was very fortunate that Borregaard decided not to proceed with their business and sell out to another company.
The role and use of domain-specific knowledge
In order to develop a technology and verify its functionality, there are invariably many technical problems to solve, which emphasizes the need for domain-specific knowledge. To expedite development and to get the demonstration plant up and running, a so-called ‘task force’ involving participants from the owner of the GoBiGas demonstration plant, university representatives, and the contractors was created; its discussions and the results that flowed from its work is yet another example of domain-specific knowledge in a demonstration context. The following quotation by the former project manager of the plant is an example of how such ‘task force’ discussions can prove beneficial:Most of the problems concerned the pumps, and there were no real surprises...we had done our homework and knew how it would be connected. Then it worked out pretty well, great fun actually, once we started.
The work of the task force can also be seen as a way of learning-by-doing that takes place in demonstration plants.Why do we get so much tar; that is not the case at the reference plant, which has been up and running for 10 years. Why don’t they get a lot of tar? Because they have more ash, it has to be something to do with the ash.
When it comes to identifying business opportunities, data analysis shows that domain-specific knowledge is useful for both the technology developers and the commercial companies. This is exemplified by a manager at a commercial company:One example that is really good is this fish food that they created a technology for, where they cooperate with Sekab during pretreatment and, using this Sekab pretreatment technique, make a solution for growing proteins from which you can make fish food.
A very important goal that we saw right from the beginning was to unburden the soda boiler. We are suppliers of soda boilers, we build and rebuild soda boilers, and there is considerable value in being one of the few in the world, not so many are doing this. There is absolutely no doubt that we saw the potential for this.
The role and use of procedural knowledge
Another example of procedural knowledge is how to establish a demonstration plant. Respondents from GoBiGas provided the principal reflections on this since, at the time of the interviews, some project work from the initial construction of the plant was still ongoing; consequently, memories were still very fresh. One of the interviewees reflected on the difficulties over cooperation and finding suitable mechanisms to undertake the project work so that the construction of the demonstration plant could be expedited. A former project manager of GoBiGas expressed it thus:We put the patents in a subsidiary of Innventia, LignoBoost AB. The operations of the demo plant became LignoBoost Demo AB, of which we still owned 100%. So, the idea was that, by putting patents in LignoBoost AB, we would have a commercial, saleable asset.
Another example of procedural knowledge in a demonstration plant context is the management of inter-organizational and cross-functional teams. This way of working was identified as a success factor in getting the plant up and running and in facilitating technological development. A former project manager from GoBiGas explained:You then buy a design and a license to use this design, then you have to find someone to implement the project in detail, someone who can buy, someone that can keep the assembling process running smoothly. It is a completely different logic concerning how work should be carried out, and that skill set is largely unknown in the energy business.
The management of patenting provides another example of procedural knowledge, featured in all demonstration plants in this study, which influences the advancement and dissemination of technology. A manager of a commercial company connected to the LignoDemo demonstration plant exemplifies the point:When we started this task force with Chalmers, we were able to find correlations and then with Metso, they had also been involved, the right people from Metso, there are really skillful people there who took on real responsibility and generated action to make things happen.
However, managing confidentiality appears not only to be an issue in patenting but also in the utilization of demonstration plants. Procedural knowledge on how to operate a type IV plant is also a topic of reflection by interviewees from those types of plant (with the exception of GoBiGas). However, a manager involved in LignoDemo reflected upon possible future operations in a permanent test center since, at the time of the interviews, the demonstration plant was not yet operating as the permanent test center that had been envisaged and to which the company was still committed. The handling of neutrality when running permanent test centers was given considerable attention since it was held to be crucial in a facility where customers may well have competing interests. A manager working as the mandator for the SP Biorefinery demonstration plant provided an example of how type IV operations function:It is also a matter of keeping and sustaining patents, so one alternative to not taking patents is to allow the knowledge to enter the public domain, to publish it because no one else can then take out patents on it. The knowledge and strategies of the patenting team ensure proper control and exploitation of our intellectual property.
The findings of this study show that procedural knowledge used in demonstration plants can be of varying kinds, focusing on how to organize development work, how to handle confidentiality and patenting, and how to operate permanent test centers. From this study, the examples of procedural knowledge supplied by respondents barely touch on the idea of how to bring a new technology to market.A customer either comes to us, or we search really hard to find a client. We create the research design, work out the design together with our own or hired development engineers, and then the operational organization performs the experiment on our behalf. Sekab is not in direct contact with the customer. This is regulated; we have a number of agreements, non-disclosure agreements. In principle, a competitor of Sekab could enter this way and carry out experiments in the plant.
Knowledge-based challenges in demonstration plants
In a similar vein, the manager of LTU Green Fuels talked about the constant struggle to keep the plant up and running and how the operation of facilities for demonstration are very dependent upon rules and regulations:We do not know what political instruments will materialize on the way. It is extremely crucial.
Unclear political agendas with short-term rules and regulations have made it difficult to maintain an interest in the market for bio-based alternatives, according to a manager of a commercial company involved in LTU Green Fuels:Because there were no clear tax reliefs, rules of the game, they then realized that there has to be another owner, otherwise they will have to close down the business.
Our findings also show that respondents felt that the problem with commercialization was less to do with the technology itself, or a lack of technological know-how. Typically, they expressed confidence with the technological demonstration but they were less confident regarding the means to bring the technologies to the market. This uncertainty is exemplified by a manager involved in LTU Green Fuels and a manager of a commercial company involved in the Biorefinery demonstration plant:Meanwhile the market has diminished, the prerequisites that were there in 2012 are not the same today and...the interest from these big companies that we really would have liked to have as stakeholders in BioGreen has cooled off, not because of the project...but in general terms.
In addition to unclear regulations, and scant knowledge of their implications, the senior advisor and a manager of a commercial company involved in the Biorefinery demonstration plant expressed a lack of competence in marketing and selling this kind of technology. The senior advisor asserted the need to engage a larger number of people internally who “could spread the word”, while the manager spoke of difficulties in balancing diffusion as a marketing activity with retaining technological knowledge internally.In the absence of a market this is what the reality looks like, nothing happens; it has great potential, the technology is demonstrated and it has shown good functionality, performance, availability but nothing happens.It is a very great deficiency, things just grind to a halt...you’ve got great research reports but then you need half of a billion to take it to the next stage, and unfortunately it is not easy to get the risk capitalists involved.
This example, and several of the earlier ones, can be seen as a lack of procedural knowledge on how to progress the technology further from demonstration to commercialization. Not only was the lack of knowledge on how to commercialize technologies perceived as problematic but also the resources available for doing so, exemplified by a manager of the mandator of the Biorefinery demo plant:It has a lot to do with marketing, we have been wondering, “how do we do that?” We have sort of embarked on it, we have to engage as many people as possible internally and there are many who talk about the BDP when they are outside, but it is an area where we could do better.If it is a future customer and he is here and collects a lot of information, then it is obvious that if we get him as an ‘internal salesperson’, then we have “the wind blowing our way”. Instead of avoiding giving him information and then him thinking that this technology is no good. It is not everyone that understands this and thinks that it should be shared; in that case nobody would know what we are doing, it is a balancing act between marketing and not giving information out, it is subtle and a learning process.
The challenges facing knowledge production identified by this study reflect a constant financial struggle to keep demonstration plants running in conjunction with uncertainty over the political agendas and a lack of procedural knowledge on how to work with commercialization and the requisite competencies needed to implement it.Well, we have a process, we are some personnel that work with this, we have reconciliation meetings regularly when we discuss customer contacts and plan some shorter meetings, so we have like a process for it. But we do not have a person that devotes half his time to the process or… but there are a few of us who split up the task and then it works okay…sometimes it is really intense.