INNOVATION CAPITAL

We define innovation capital as knowledge-based intangible assets.

Investments in innovation and advanced solutions drive operational efficiency, contribute to the growth of the PGNiG Group’s business potential and help address new challenges associated with environmental impacts and climate. The PGNiG Group’s priorities are to foster collaborative partnerships with the scientific community and to support and spur growth of small and medium-sized enterprises, start-ups in particular.

Key metrics:

Outcomes:


 

121

innovation projects implemented in 2019 with the participation of the PGNiG Group (132 projects in 2018)

57

R&D projects implemented in 2019 with the participation of the PGNiG Group, including nine projects co-financed by the National Centre for Research and Development (NCBiR) in the 1st edition of the INGA (Innovative Gas Industry) programme

ca. PLN 400m

budget earmarked for innovation projects in 2019 (ca. PLN 349m in 2018)

ca. PLN 13.5m

money spent on R&D projects implemented at the PGNiG Group (PLN 9.7m in 2018)

12

pilot start-up projects implemented in 2019 under the MIT Enterprise Forum Poland acceleration programme

Our approach to performance management:

  • Fostering a culture of innovation across the organisation to raise staff and management awareness with respect to innovation advancement, and undertaking efforts to maintain a network of collaboration with professional entities specialising in cooperation with start-ups and innovative companies
  • A series of research and development activities related to hydrogen technology as a potential new business line were continued
  • Commercialisation of successfully completed innovation and R&D projects – work commenced in 2019 on commercialisation of two innovative solutions, including the Smok 3D liquefied natural gas metering and billing system. 
  • Closing of the 5th edition of the Young Innovators for PGNiG competition.

How does innovative capital affect other types of capital?

Manufacturing capital

One of the key directions for Group-wide innovation efforts is to improve the efficiency of production assets managed by the individual companies.

  • In 2019, PGNiG launched the "Digital field" program - a tool that will enable PGNiG to use its oil and gas resources even more effectively. Integrated field management at the exploration, production and investment stages will contribute to increasing depletion and extending the lifetime of deposits, while reducing production costs and increasing return on investment in mining. 
  • Under the agreement between the National Centre for Research and Development and Gaz-System, the Group is engaged in the largest research programme in its history – INGA (Innovative Gas Industry). Together with external partners, we have been working on such projects as use of methane from decommissioned mining facilities in the Upper Silesian Coal Basin, development of technologies for obtaining dimethyl ether in the context of developing small hydrocarbon deposits, as well as on a gas pipeline monitoring system.
  • In 2019, the cooperation under the MIT Enterprise Forum Poland acceleration program implemented in cooperation with the Foundation for Technological Entrepreneurship ended. As part of the program, 12 start-up pilots were carried out, the solutions of which concerned, among others: the use of drones to create orthophotos or to monitor air pollution, increase the efficiency of oil extraction or the use of virtual reality to train employees on a simulator of a measurement and reduction station.
  • Work on extraction of gas from hard coal beds is continued under the GeoMetan II programme. Its deliverables will include technical solutions which will enable production from new hydrocarbon deposits in partnership with other leaders of Poland’s industry sector.
Human capital

In response to present challenges, PGNiG is looking for new technological solutions and supports the work and professional development of innovators. The Group encourages and rewards intra-Group initiatives, but has also developed a system which generates innovation by tapping the potential of human resources in academic centres and in other businesses, including start-ups. 

We support new entrants in the tech business, offering the expertise, technical infrastructure, office space, administration and operational assistance (including in the field of law and economics) as part of the InnVento business incubator project. Our services are based on the expertise of our staff. 

The Group-wide Talent Identification System serves to identify high-potential employees to include them in the Future Leaders Academy professional development programme, which paves the way for talented employees to assume key functions within the organisation, including managerial positions.

Natural capital

Green technologies and products are one of the key drivers of innovation across the Group. It is PGNiG’s intention to become Poland’s leader in hydrogen technologies. In 2019, the ELIZA research and development project was successfully completed, laying the foundations for the creation of a hydrogen competence program at the PGNiG Group. The ELIZA R&D project focuses on generation of hydrogen from renewable sources through electrolysis and on using in practice the Group’s know-how in gas fuels storage. 

A number of innovative solutions developed under INGA, one of the most ambitious projects on record in the gas industry, as well as the GeoMetan II project, will open access in the near future to new hydrocarbon reserves, which until recently have not been even considered as potentially productive. 
Financial capital

The development activities model which has been deployed and followed at PGNIG SA is among the most extensive and up-to-date R&D&I systems currently in place at large Polish companies. The solutions developed under the model are designed to be commercialised as soon as practicable, leading to tangible financial gains over the short-, mid- and long-term horizon.

The principal goal of the INGA programme, a joint project run by the National Centre for Research and Development, the PGNiG Group and GAZ-SYSTEM, is to enhance competitiveness of the Polish gas sector. PGNiG’s financial contribution to INGA may reach as much as PLN 133m in 2018-2022.

In 2019, a total 121 innovation projects worth approximately PLN 400m were underway at the PGNiG Group.
Social capital

The Group’s main area of impact on its social environment, involving the use of its innovative capital, are education and scientific research. The Company has partnered with universities and vocational schools to prepare highly qualified human resources for itself (so as to manage the generation gap) and works with partners in large research and academic centres to further drive innovation. 

As one of the very first companies in Poland, we tailored our training and recruitment system to bring it in line with the industrial doctorate programme. In addition, over the last ten years PGNiG Termika has partnered with secondary schools under the ‘We Encourage Learning’ programme, offering scholarships to the best students.