Repurposed research center becomes Energy Innovation Center of North America – an incubator tasked with launching disruptive tech startups, and providing access to venture capital to quickly monetize new technologies
Taking a page from Silicon Valley, Baker Hughes, a GE company (ticker: BHGE) has launched a tech incubator in Oklahoma. But this one is focused on oilfield and related technologies that aim to boost results for its North American oil and gas customers.
By repurposing its former research center in Oklahoma City “from pure research and development to incubating new technologies and launching them into the marketplace as startups,” the company said it will be able to more quickly meet the evolving needs of its North American customers.
Repurposed research center in Oklahoma City becomes BHGE Energy Innovation Center of North America – an incubator tasked with launching disruptive tech startups, and providing access to venture capital to quickly monetize new technologies. Image: BHGE
Starting in Q3, BHGE said small teams of academic partners, technology developers and entrepreneurs will co-locate in Oklahoma City in an effort to crank out disruptive tech for the oilfield – accelerating the process of getting investment-worthy oilfield technologies into circulation faster.
“The center is focused on collaborating and co-locating with select community partners to commercialize new and existing BHGE technology, rather than putting out a call for external technologies,” a Baker Hughes-GE spokesperson told Oil & Gas 360.
Stepping on the accelerator
BHGE Chief Marketing & Technology Officer Derek Mathieson said a new product can typically take 2-3 years before it can be available for use, but its customers need faster delivery of technology into oilfield operations. The upshot is that BHGE aims to cut that time in half by sending new tech through its new incubator.
“We have repositioned the center to dramatically accelerate technology development for better customer outcomes,” Mathieson said.
Capital from VCs, BHGE and strategic investors
BHGE said the center’s new venture capital vehicle will pair outside VC funding with BHGE capital and strategic investors.
The goal is that after 12-18 months of successful incubation, BHGE will launch the new technology into the market.
BHGE said revenue from a new incubation goes toward subsequent technology development at the center. BHGE will retain an ownership stake in the new ventures.
Some examples include:
- the application of augmented and mixed reality technology to enhance asset management;
- using intelligent automation in the field to increase production through machine learning; and
- providing fullstream enhanced oil recovery services for unconventional reservoirs.
BHGE Director of Ventures and Growth Taylor Shinn said that Oklahoma City’s roots in the energy industry and its proximity to North American oil and gas customers will allow it to create “truly disruptive innovation.”
