- In a landmark Dutch court decision a few weeks ago, Royal Dutch Shell Plc was ordered to slash its emissions harder and faster than planned. While Shell has pledged to reduce its emissions of greenhouse gasses by 20% by 2030 and become net-zero by 2050, the Hague ruled that it must slash emissions by 45% by 2030 compared to 2019 levels. While this ruling is only legally binding in the Netherlands, it sets a precedent for other nations currently dealing with climate-change related lawsuits against oil and gas producing companies (over 1800 lawsuits). The industrial equipment utilized by oil and gas producing companies are susceptible to methane leaks, flares, fluid overflows, among others. Methane leaks, being the most detrimental to the environment, are currently poorly managed and poorly predicted.
- Andium is a company focused on remote field monitoring of industrial assets, recently narrowing their focus on the oil and gas industry. They are an IoT platform using smart sensors and camera tech to both monitor and make predictive forecasts that target leaks and other issues oil and gas companies may experience. Their marquee service is their flare tracking, which allows clients to track any excessive flaring and be immediately alerted and mitigate unnecessary emissions and gas leaks to stay in compliance, lower emissions, and save money (mostly through regulatory fees).
- The main stakeholders for Andium are oil and gas companies (who are also some of the main investors of the startup), and regulators across the board. In order to market their services effectively to oil and gas companies, Andium must demonstrate an accurate and robust understanding of what emissions regulations are and the alert mechanisms for when a company may be on the brink of failing. In addition, if a possible stakeholder for Andium is ‘The World’, sustainability becomes a lofty goal for the company to aspire too, creating alerts that aren’t solely linked to regulations, but specific emissions benchmarks.
- In context of the Hague’s decision, Andium has positioned itself as a very likely and important partner for oil and gas company. Their IoT technology can make business processes more efficient, while also maintaining a regulatory backbone that can monitor and risks the company may have. A few challenges Andium may face can be related to shifting and constantly changing laws around the world–Andium must maintain and consistently update their regulatory backbone based on judicial decisions around the globe. In addition, there is a high reputation risk if a client ends up emitting too much methane due a failure in Andium’s monitoring technology.