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Georgia, Tbilisi
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Manufacture of Natural Gas Odorizers
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Title |
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Manufacture of Natural Gas Odorizers.
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Objectives |
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- To built plant for serial production of natural gas odorizers.
- To create 12 permanent jobs, including 7 jobs for SIPT staff.
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Background |
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To reduce the risk of accidental explosions, natural gas for domestic use is normally odourized by
the addition of small quantities of a strongly-smelling substance (typically ethyl mercaptan) so
that householders become aware if a gas tap has been left on or if a leak develops. This is a
pressing issue as there have been several cases of fatal accidents relating to domestic gas leaks in
Georgia in recent years. Odourization is undertaken by the supplier at a local or regional centre.
In Georgia, and indeed in many parts of the world, the equipment used to do so is out-of-date,
is inconvenient to operate, and gives an unpredictable dose of the odourizing material. SIPT has
developed and patented a new design of Automated Natural Gas Odouriser and has made an experimental
prototype, which recently installed at a customer site for test and evaluation. The design of the
odouriser is based on a calibrated vessel - a vessel with a known volume enclosed between two level
sensors. The volume of odouriser held between the two sensors is sufficient to odourize a certain
volume of natural gas, and is released on a command from the control processor in atomized form, in
response to a measurement of the volume of gas which is passing. The processor analyses the ratio of
gas to odour, and if it detects an error in the ratio, it corrects it in the following cycle, so
that a high accuracy of odourisation is achieved. The controlling processor is manufactured by
Siemens: it is suitably programmed, and is connected to the odouriser using spark-proof electronics.
Although originally designed for use in odourizing domestic gas, this odouriser could have
applications in other industries, including the food and pharmaceutical industries, because of its
fine unit of dosage (2-7 µl), and high accuracy of odourization. The SIPT design is considered
easier to use and more accurate than alternatives manufactured in the FSU and can be sold a price
substantially lower than the price charged for odorisors imported from Europe. In remote locations,
the device could be powered by a solar battery.
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Plan |
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The purpose of this project is to establish a facility to manufacture automated natural gas
odourisers aiming to produce 105 units by the end of the second year. Initially, 8 members of SIPT
staff who are currently engaged in this work would set up the business. The plan covers the
production of 25 units under the project. SIPT planned sales of £ 75,000 pa in 2011, increasing to
£ 240,000 pa in 2012. They then planned to reinvest profits and build up production further.
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Market research |
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From an initial market study, SIPT estimated that demand in the Georgian and regional markets as
about 200 units. The Georgian Gas Transportation Company has expressed its readiness to purchase 50
units. SIPT eventually expect to export the device to "AzTransGas" and similar companies in the
countries of Central Asia. Their key selling points are that it is fully automated, can deliver a
highly accurate dose (with consequent savings in the consumption of odourant) and is highly
energy-efficient (5 times better than competing products).
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Leadership |
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The proposed work is carried out at SIPT. The project leader is Nodor Kikilidze elderly professor who has played a leading part in developing this technology. He appears to be an effective leader for the project and has a good understanding of the Georgian market for the product.
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Marketing and sales |
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The device, with higher specifications, could be sold for $5,000 compared with $12,000 for odorisors
imported from Russia. Demand in Tbilisi is estimated at 50 units and a further 50-70 in the rest of
the country. Dialogue is maintained with the Georgian gas supply company. The commercialisation Unit
is providing support and accompanying members of the team on sales visits.
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Jobs |
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7 new jobs (including 4 jobs for SIPT staff) had been created by the end of Q 1, 2011-2012.
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Forthcoming activity |
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SIPT's commercialisation Unit is seeking customers of the odorisers in Georgia and abroad. An advertisement of the odoriser will be placed on the SIPT's web-site. |
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Cost |
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The DECC's contribution is £ 37,300. DECC's contribution includes: Procurement of equipment and materials (notebook, simulator module, USB prommer); Certification; Business travel; Labour costs.
SIPT's contribution includes (in-kind): facilities in their own building, workshop, office equipment, and IP.
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Beneficiary |
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Sukhumi Institute of Physics and Technology, Tbilisi
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