1. NHA Conference 2010 - Long Beach, California
20 September 2018
Best Practice for Technology Qualification - from Business Idea to Commercial Product
NHA Conference Long Beach, California

2. Integrity at the core Independent foundation established in 1864
20 September 2018
Integrity at the core
Independent foundation established in 1864
Self-owned with no shareholders
Stakeholders are represented in our governing bodies and committees
We use profits to continuously develop our people and our research and innovation
Solid financial background
No single majority group can have control of the foundation

3. Highly skilled people across the world
20 September 2018
Highly skilled people across the world
300
offices
100
countries
9,000
employees, of which 76% have university degree
DNV has more than 9,000 employees in close to 300 offices in about 100 countries. These are approximate figures for DNV in May 2009.
50% in Europe.
We want to stand out by being a trusted and highly competent partner for our customers. That is why we keep a very high level of highly educated staff in DNV, and we put a our resources in ongoing training for our employees.
Background.
The historical growth of DNV followed the coastline, then gradually expanded.

4. The new risk reality 20 September 2018
We live in a world, where businesses, and society at large, is confronted with a set of risks that are not the same as the ones we were facing a few decades ago. We call it the new risk reality.

5. your most critical risks
20 September 2018
It’s how you manage
your most critical risks
ELIMINATING RISK IS NOT AN OPTION
Companies and society are forced to deal with this new risk reality. Eliminating the risks is not an option, but there are ways to manage these risks

6. risk identify assess manage DNV’s core competence 20 September 2018
DNV’s core competency is to identify, assess and manage risk. This competency can be applied in many industries and sectors. Managing risk is more than mitigating risk. It is also about seizing opportunities and turning risks into rewards.

7. What we do - Build and share knowledge
20 September 2018
What we do - Build and share knowledge
We invest 6% of our revenue in research and development
Hydrogen has been a research topic in DNV since 2001
DNV has been active in National, European and International hydrogen projects and networks.
We take a lead role in joint industry research and development projects
Through our standards, rules, recommended practices and software solutions we share knowledge with the industry
Our independent nature, broad involvement with the industry, and our own leading research give us the opportunity to collect and build new knowledge – and not the least to share it. One of DNV’s core activities is to codify our accumulated knowledge and experience in the form of new standards and recommended practices, and provide both software tools and training for capturing and applying knowledge.
Pictures illustrate:
1) Cooperation on HRS safety related user interface issues in cooperation with Statoil – as presented at this conference in 2009
2) DNV participated in Norwegian expert group for hydrogen in the transport sector that gave input to the development of a national hydrogen programme
3) In the European Integrated Hydrogen Project, DNV cooperated with Hydro (now Statoil) on safety issues for the pioneer hydrogen refuelling station on Reykjavik.

8. 20 September 2018
Challenges
Development of and introduction of new technological solutions introduce uncertainties and new risks
Further pre-normative work required - input to harmonised regulations, codes and standards for hydrogen
Limited availability of hydrogen specific experience, data and information
Users demand safe, reliable and user friendly solutions at a competitive price
New demands introduce new challenges:
Higher storage and filling pressure
Requirements for fast(er) filling
Increasing station capacity requirements
Challenges – we are not quite there yet .. (bullet 1..3)
We have come a long way, here exemplified by the DNV Fuel Fighter, a prototype H2FC car that last year set an impressive world record – 1246 km on the energy equivalent of 1 l petrol at Shell Eco Marathon in Germany.
But we want more… (last two bullets..)

9. The challenge The solution
20 September 2018
The challenge
How to introduce new technological solutions that works, at minimum cost?
The solution
Reduce risk exposure and cost by introducing a structured approach to qualifying the new technology.

10. Technology Qualification
20 September 2018
Technology Qualification
DNV’s definition of Technology Qualification:
The process of providing the evidence that the technology will function within specific limits
DNV’s definition of the term Qualification is:
<read the text>
To put this into a context there are in particular two parts of the definition that should be emphasised:
“providing the evidence” implies that technology qualification confines all work done to create the necessary documentation. This differs from DNV’s 3rd party services (verification / certification / classification) which are to confirm that already available documentation complies to given specifications, codes and standards.
“function reliably” tells that technology qualification should focus on functionality, not primarily on compliance. Codes and standards do not necessarily address the functionality of the technology, but primarily concern safety aspects. Compliance to codes and standards do therefore not guarantee the success of the technology. For new technology, in particular, we usually lack relevant codes and standards. Qualification according functional requirements is then the only rational approach.

11. Qualification in the Commercial Picture
20 September 2018
Qualification in the Commercial Picture $
New Technology
First
production
REVENUE
Risk exp.
CAPEX
OPEX
Time
development projects are motivated by the potential of profit.
<click now to display “effect” of New Technology>
The objective introduction of New Technology may be to enable the development project, but also to maximise the profit by increasing the revenue and reducing the CAPEX and OPEX.
<click now to display “Risk Expences”>
However, New Technology implies a risk of profit loss due to unforeseen events.
click now to display “Risk Expences”>
So, the aim of Technology Qualification is to reduce this risk to an acceptable magnitude.
Technology Qualification
Profit = Max {Revenue - CAPEX - OPEX}
Profit = Max {Revenue - CAPEX - OPEX – Risk expenses}

12. Qualification Procedure for New Technology – DNV RP-A203
20 September 2018
Qualification Procedure for New Technology – DNV RP-A203
The first, industry-recommended practice for qualifying new technology
Statoil: Implemented as standard for technology qualification
Chevron and Exxon: Basis for development of own technology qualification approach
Applied by DNV on project basis with a series of companies for qualification of new technology
DNV guideline report for qualification of hydrogen production value chains
Based on the generic RP-A203, with focus on wind-hydrogen and natural gas-hydrogen systems
DNV RP-A201 (2001)

13. 20 September 2018
Technology Qualification – Decision support for investment in new technology
Why Technology Qualification (TQ)?
No standards or procedures are available for new technology (Class 2, 3 & 4)
TQ - a systematic approach ensuring that new technology meets defined level of safety and functional requirements
Reduce the time to market
Reduce the development cost
Ensures that functional requirements are met
Increase the market confidence in the new technology
Reduce maximum potential loss – reduce risk exposure
Applicat’nArea
Technology category
Proven
Limited history
New or unproven
Known
Class 1
Class 2
Class 3
New
Class 4
Outcome
Good Bad
Good Bad
Decision
Lucky man
As deserved…
Skill
Bad luck …
1: Proven Technology
2,3,4: New Technology

14. Statements from DNV Qualification Work Process DNV deliverables
20 September 2018
Statements from DNV
Qualification Work Process
DNV deliverables
Qualification Basis
Technology
Assessment
Report
Statement of
Feasibility
Technology Assessment
Failure Mode Identification & Risk Ranking
Technology
Qualification
Plan
Statement of
Endorsement
Selection of Qualification Methods
Data collection (Analysis and Testing)
For new technology, relevant standards and procedures to ensure an acceptable level of safety and functional reliability are generally not available. The purpose of this Qualification Basis is to define the expectations and limits of the technology. The Qualification Basis is prepared at the beginning of the Qualification Process and will be updated on a regular basis.
DNV’s deliverables at each of the milestones are (unless agreed otherwise):
TA: Technology Assessment Report + Statement of Feasibility
TQP: Technology Qualification Plan + Statement of Endorsement
TQ: Technology Qualification Report + Statement of Fitness for Service
For economical reasons technology owners often needs to gain interest from potential buyers before a decision to fully develop and qualify the technology can be made. To gain such interest, it is necessary to convince the buyers that the technology will provide a commercial benefit, but also that the there are no potential “show stoppers” that may prohibit a successful qualification.
The major costs for a complete qualification (maybe 90%) are relate to the Analysis and Testing activities. However, already after having conducted the first steps in the Qualification Work Process, including Selection of Qualification Methods, one will have the necessary insight to identify possible “show stoppers” and eventually carry out the necessary work to eliminate them. At that stage the technology is considered conceptually feasible, and DNV can issue the formal document “Statement of Feasibility”.
After having completed the whole qualification process DNV can issue the formal document “Statement of Fitness for Service”.
Certificate of
Fitness for Service
Technology
Qualification
Report
Functionality Assessment
Technology
Deployment

15. Benefits of Technology Qualification
20 September 2018
Benefits of Technology Qualification
The main benefit of qualifying new technology is to bring the technology faster to the market.
Systematic identification of failure modes
Identify need for design changes at an early stage
Opportunity to improve system design
Optimize qualification testing and analysis
Uncovers interface issues between manufacturer and sub-vendors
Increase the likelihood of delivering on time.
Reduce the risk and cost during operation by reducing uncertainties and increasing reliability.
Improve the end users confidence in the system.
Traceability of qualification efforts.
Allows quicker re-qualification for new operating conditions.

16. Summary The risk of introducing unproven technology can be high
20 September 2018
Summary
The risk of introducing unproven technology can be high
The risk exposure can be greatly reduced using a structured approach in qualifying new technology
Decision gates – for “go / no-go” decisions
Independent statements of confidence - attract investors
Reduced development costs
Reduced time to market
DNV has issued a guideline report for qualification of hydrogen production value chains
Technology qualification is today applied by leading international players

17. Safeguarding life, property and the environment
20 September 2018
Safeguarding life, property and the environment