The global energy parts market is valued at over $90 billion, with the Middle East accounting for approximately 35% of this sector. This domain remains largely untapped by existing ones additive manufacturing and digital inventory platforms which have spread their footprints in medical, aviation, automotive and jewelry industries.
Unlike these industries, which have embraced additive manufacturing and 3D printing for over a decade, energy the sector started adopting it some time ago and one of the startups at the forefront of this innovation is MENA Immense.
Founded by Fahmi Al Shawwathe Dubai-founded startup began operations in 2016, focusing on leveraging additive manufacturing and 3D printing for industrial applications. Two years later, it identified the energy sector as its target market and has now secured $20 million in Series B funding.
Globally, several industries face significant global supply chain issues, as legacy structures often struggle to effectively meet customer needs. Industries such as oil and gas, petrochemicals and power generation have one of the most complex supply chains in the world. In an interview with TechCrunch, Al Shawwa noted that some of the biggest companies, for example, Equinor, ConocoPhillips and the Saudi Electricity Company, have more than a billion dollars worth of parts, most of which are manufactured outside of the their headquarters. What additive manufacturing brings to the fray is allowing these groups to access parts on demand without mass manufacturing in hubs across Southeast Asia, China or Latin America.
In Immensa’s case, it evaluates these parts for its customers and determines the percentage that qualifies for on-demand production. reducing its customers’ heavy reliance on imports. For example, if a factory near London is experiencing turbine problems requiring an impeller replacement, standard procedure involves making a request to the supply warehouse. If the warehouse has the part, it is shipped. Otherwise, contact the manufacturer. The manufacturer, based in Germany, works with a contract manufacturer in China, leading to the production of the part. After quality control in Germany, the part is sent to London and then to the customer. This shipping-intensive process contributes to a carbon footprint that is potentially 50% or more of what local production would entail.
Immensa’s approach is to streamline the process. When a part breaks down, customers can go online, locate the required part and place an order. It can then direct the order to the nearest dedicated 3D printing facility, often around Heathrow or outside London. The part is produced quickly and delivered within days, reducing delivery times. This not only lowers the overall cost, but also removes customs and shipping hassles from the equation.
This reduces substantially the spare parts balance by $200-300 million for most of these energy groups, according to Al Shawwa. annually, these companies face an estimated $30 billion in unnecessary losses. Moving to a digitized supply chain also offers significant environmental benefits, such as minimizing waste and reducing your carbon footprint.
“Today, we are by far the largest company focusing on digital inventory for the energy sector, and the energy sector is essentially oil and gas refineries, petrochemicals, power generation, electricity distribution, utilities, water, nuclear and renewables,” said the founder. , who holds multiple certifications in additive manufacturing and is one of the pioneers of additive manufacturing in the Middle East.
“These all fall within the specifications of the energy industry, and here we focus on what we do to simplify as an offering: We go to large companies, take a look at their physical warehouses and try to assess how much of that can be turned into a digital warehouse or a virtual warehouse where they can push a button and pick up the part produced to order.”
The UAE-based startup claims to be the only company that owns and controls the entire digital supply chain of the energy sector. Operating on the DIS RT platform, it provides end-to-end solutions covering assessment, digitization and on-demand production, effectively addressing the interrelated issues of data security and quality control as all processes are performed in-house or on-site. The company also highlights the integration of proprietary AI tools into DIS RT, enabling extensive data volumes to be managed for real-time information processing. Immensa, which has more than 100 additive manufacturing specialists and engineers, also claims to have developed its proprietary hardware systems, enhancing its competitive edge in the market.
Over the past six years, Immensa has rigorously evaluated over one million parts, producing more than 15,000 components. It started in the United Arab Emirates and Kuwait before expanding to Saudi Arabia. It operates from two main hubs – facilities in Dubai and Saudi Arabia – serving customers across the Middle East, North Africa and soon North America as it prepares to expand access to customers in the US, Al Shawwa said.
Al Shawwa says Immensa’s clientele mainly includes large oil and gas conglomerates, including well-known entities such as Aramco, Adnoc and Schlumberger. While its focus is on quality clients, the seven-year-old has successfully served a significant number in the energy sector, including at least 40 companies, which include end-users and original equipment manufacturers (OEMs), the players whose market is being disrupted.
“Until a year and a half ago, most OEMs used to argue with us and accuse us of counterfeiting and copying,” said Al Shawwa. “We are very careful and we care about not infringing copyright and intellectual property because we also create our copyright and apart from being part of our core values and ethics, if I copy someone’s asset, someone else will copy my own”.
By focusing on obsolete parts and those not covered by warranty or maintenance, Immensa found itself in an advantageous position. Interestingly, by the end of last year, OEMs started approaching the company. Now, it has partnered with four such companies, producing their parts under license, helping them digitize 3D-printed parts, and paying them royalties in return. This shift reflects a positive development in her relationships within the industry.
Revenue for the Dubai-based startup is generated through the evaluation, digitization and platform sharing of these segments. Last year, it hit $10 million in revenue, signaling profitability. plans to double these figures by the end of 2023.
MENA-focused venture capital firm Global Ventures led the latest funding round for Immensa. The investment attracted participation from new backers including Endeavor Catalyst Fund and EDGO and continued support from existing investors including Energy Capital Group (ECG), Shorooq Partners and Green Coast Investments. This comes two years after Immensa raised $7 million in Series A funding.
Immensa says the funds it has secured will propel it from a regional entity to a prominent global solutions provider as it aims to build the largest digital warehouse in the energy sector. The investment will also strengthen DIS RT and enhance its artificial intelligence tools, it said in a statement. In addition, Immensa plans to strengthen its current operations in Saudi Arabia and the United Arab Emirates, with plans to enter at least two additional regional countries within the next six months, with Oman likely to be one of them. The company operates in Kuwait, Bahrain, Qatar and Jordan. Meanwhile, expansion into North America is on the horizon within the next 12-18 months, while potential projects in Southeast Asia are currently under evaluation.
