Annual Report and Sustainability Report 2019

ABOUT KONGSBERG

Next Generation Solutions

Kongsberg Digital

Kongsberg Digital (KDI) was established in 2016 to deliver next-generation software and digital solutions to customers in the maritime, oil and gas and renewable energy sectors. KDI possesses leading domain and digital expertise in areas which support increased automation and autonomous operations in the industry.

Kognifai – Kongsberg Digital Platform

Kognifai is KONGSBERG’s digital, cloud-based ecosystem. Kognifai is tailor-made for industrial use, particularly the part dealing with asset data, time series, alarms and incidents. Kognifai harmonises and standardises information in a structured way, making it easier for customers and third-parties to use the data for value creation.

Maritime Digital Ecosystem and Vessel Insight

Given KONGSBERG’s extensive maritime footprint, it is natural that the group is aiming to create a standardised ship-to-cloud infrastructure and establish a digital ecosystem for the maritime sector. The infrastructure is called Vessel Insight and is based on Kognifai.

In addition to being a data infrastructure, Vessel Insight gives access to an ecosystem of applications and solutions in order to create value. Collectively, Vessel Insight enables customers to connect ships, retrieve data for use in analyses, and develop or download value-creating applications on top.

Kognifai Dynamic Digital Twin for heavy asset industries

In its simplest form, a digital twin is a digital replica of processes and devices. Advanced digital twins, such as Kognifai Dynamic Digital Twin, contain solutions which enable substantial reductions in operating costs, improvement and streamlining of work processes and increased production of oil and gas. Our accurate flow and process simulators, combined with dynamic data from the automation systems, in what is known as “hybrid analytics”, enable the ongoing automatic testing of different operating scenarios, accident and incident prediction and production optimisation. Kognifai Dynamic Digital Twin enables the automation of processes, the remote control of complex installations and a higher degree of autonomy in process control systems.

Kognitwin Energy is our digital twin. The solution enables increased collabora­tion, efficiency and safety for the people working on platforms. 

Remote Drilling Operation for Oil & Gas

KDI supplies systems for data acquisition and the visualisation of drilling operations in real time, as well as applications for operations analysis and advanced decision support. KDI also supplies solutions that increase production efficiency using real-time simulators for design, multi-phase flow and operator training. These systems collectively offer drilling operators much improved well safety and greater efficiency during the drilling process.

Renewable energy and power grid optimisation

In the energy sector, we are working with many major stakeholders in the industry to develop a dynamic digital twin and smart grid functionality for the distribution network operators. KDI uses dynamic physical models, data-driven analyses and virtual sensors in order to provide the distribution network operators with suitable tools for accurate load predictions, decision support concerning grid balancing, and advice regarding possible improvements for improved utilisation and flexibility in the distribution network.

Maritime Simulation

KDI offers market-leading simulator solutions which ensure the authentic and thorough training of personnel and students in the maritime, marine and offshore markets. These simulator solutions are also used for verification and decision support, for example, in preliminary studies and research projects within design, security and cost optimisation.

Vessel Insight collects and structures data from ships and provides access to applications that create value for the crew, ship operator and owner.


Positioned for growth

Hege Skryseth - President, Kongsberg Digital

Positioned for growth

Kongsberg Digital has successfully navigated another important year, with solid developments within the existing businesses and strong progress being made in the newer, strategic initiative areas.

Kongsberg Digital has had a very solid year. Within the existing businesses, we have seen record sales for the LedaFlow flow assurance simulator, a stable trend in process simulator sales, and drilling software sales rising by more than 50 per cent. Within sales of training simulators to the maritime sector, we have also seen a 17 per cent growth in turnover compared with 2018. Overall, the figures reflect very positive developments. Turnover in 2019 amounted to MNOK 800, equivalent to growth of 25 per cent. Moreover, 2019 was characterised by success within the newer, strategic business areas, positioning the company for growth in the years to come.

The first major milestone of 2019 was the launch of Vessel Insight, a data infrastructure solution for the maritime sector, during the Nor-Shipping maritime trade fair in June. KONGSBERG realised at an early stage that it faced an industry challenge as regards making ships “digital-ready”. With Kongsberg Maritime’s position as a major supplier of automation systems for the world's merchant fleets, Kongsberg Digital began developing a standardised data infrastructure for the maritime sector which could make ships “digital-ready” in a simple and cost-effective way. Before the advent of Vessel Insight, this would still technically have been possible, but it would often have been too cost-intensive to be worth the investment for individual ships. In the same way that Ford made the car affordable to the general public by dramatically cutting manufacturing costs, Vessel Insight can facilitate broad digitalisation across the maritime sector. The market’s response has been extremely promising and more and more ships are being connected up every week. We have also established letters of intent with DNV GL, MAN and MacGregor concerning partnerships relating to digital solutions for the maritime sector, naturally with the customer setting the premise as regards the data that is shared.

Over the past two years, we have carried out numerous projects relating to digital twin solutions for operators within oil and gas, both to test the technology and to ensure that the solution is robust. The second key milestone of 2019 was Kongsberg Digital’s first commercial sale of Kognifai Dynamic Digital Twin, with the twin being put into production for Norske Shell’s gas processing plant at Nyhamna. Digital twins are virtual representations of a physical entity, such as a platform or a plant, and are currently a hot topic in the oil and gas sector. Many suppliers have emerged selling different variants of the solution. The spectrum ranges from visualisation and documentation tools for heavy industry, to more advanced digital tools for the optimisation of operations, energy consumption, maintenance, increased remote control and automation. Kongsberg Digital’s version uses historical and real-time data combined with tried and tested physical models in what is known as ‘hybrid analytics’. Hybrid analytics is a prerequisite for using machine learning models, for example, and enables a greater degree of autonomy. We are seeing strong interest in the solution in the market and look forward to an exciting partnership with Norske Shell in the years to come. The contract for Nyhamna runs for five years and is worth MNOK 100.

Facilitating autonomy has also been a focus area for Kongsberg Digital’s maritime simulator business over the past year. The technology, which has been used for crew training purposes for many years, represents a key component in the development of “digital ship’s captains”. Before the autonomous vessels of the future can be launched, the algorithms which will steer the ships must be trained in different scenarios, and the simulator technology in Maritime Simulation provides a natural starting point for this. Alongside the existing businesses, we are now working to develop this in a close partnership with Kongsberg Maritime.

All in all, 2019 was an important year for Kongsberg Digital. The existing businesses have well and truly delivered, while at the same time we have positioned ourselves for growth within the newer, strategic initiative areas. The key milestones that we have reached have given us renewed self-belief as we head towards 2020 and beyond.

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