In the wake of its first acquisition, newly listed turbocharger company Accelleron is preparing to play an even greater role in the maritime energy transition, says new CEO Daniel Bischofberger
When ABB announced its decision to spin off its turbocharging division in July last year, one reason cited was that the business was out of step with the parent group’s focus on electrification. A year on, the newly named Accelleron has capitalised on its independence with electrifying speed, listing on the Swiss stock exchange in October 2022, acquiring fuel injection specialist OMT in May and, at CIMAC Congress in June, revealing a revamped turbocharger offer for low-speed engines that aims to redefine how its products are made, used and serviced; all while driving a 20% increase in revenue in the first half of this year.
Leading the charge is new CEO Daniel Bischofberger, who joined the company in March 2022 from Sulzer’s Rotating Equipment Services. A 14-year veteran of ABB, he was acutely aware of the factors that led to Accelleron’s exit from the group’s portfolio.
“When I joined ABB in 1993 it was all about power generation, and transmission, trains and construction,” he recalls. “Today, it is about electrification and automation and the link to turbocharging became close to zero. In addition, the independence will give us the flexibility and agility to grab opportunities that will come as part of the energy transition in both markets, marine and energy.”
Ship operator customers may not have noticed a difference beyond the name change, as Accelleron was already a separate entity within ABB, with its own global service network.
“Independence will give us the flexibility and agility to grab opportunities”
But Mr Bischofberger notes that the spin-off enables Accelleron to take its own strategic decisions without having to consider alignment to a wider group’s interests.
“We were not lacking investment in ABB; it’s thanks to them that we became the market leader, but it was clear that an acquisition was not on option within ABB,” he says.
Accelleron was quick to use its new-found freedom when it announced the acquisition of OMT, the maker of mechanical and common rail fuel injectors, for an as-yet undisclosed sum in the ‘high double-digit millions’ of euros. With that deal, Accelleron adds another key component of the engine ecosystem, bringing annual sales of close to US$60M to its existing US$780Bn.
Mr Bischofberger reels off a list of criteria that Accelleron considered for the acquisition. Among them are that the product should be high-tech – “we don’t want to be in commodities; turbocharging is high-tech” – and that the business should include a big service component. After-sales service represents around 70% of OMT’s business, compared to around 75% for Accelleron. But more important is that the combination of OMT and Accelleron brings a closer and stronger link to engine builder’s customers. While both turbochargers and fuel injectors are critical components in efficiency, fuel injection comes earlier in the engine development cycle.
Dual-fuel development
As the implications of the energy transition roll through ship technology, both turbochargers and fuel injectors will become even more important to those customers. Accelleron is working on the projection that by 2030 most newbuild marine engines will be dual-fuel. That means more (and more varied) fuel injectors on engines. Accelleron is already exploring how to scale up factory capacity to meet that demand.
As new fuels are likely to be far more expensive, there will also be a greater focus on the efficiency that turbochargers can deliver. Efficiency has been a constant focus in progressive generations of the technology, but the impact of new fuels will go deeper. In its latest X-300 series of turbochargers for low-speed engines, unveiled in June, Accelleron showed the pre-requisite increase in power density. There is also a focus on serviceability and digital integration, two elements that Mr Bischofberger sees as fundamental to successful marine operations in an era of new fuels.
The X300-L series features a modular design which, combined with the reduced weight of core components, means that the turbocharger can be overhauled in a single port call, rather than having to wait until the vessel is in drydock. The new platform therefore makes upgrading turbochargers for new fuels or new efficiency improvements easier, while decoupling services from drydocking schedules means the number of turbocharger service events across an average vessel life can be reduced from five to three.
“Both turbochargers and fuel injectors are critical components in efficiency”
The X300-L series also features Accelleron’s digital optimisation suite, Turbo Insights. Mr Bischofberger notes that data underpins optimisation, both in terms of performance and improvements in service.
“When it comes to service, if you want to optimise the scope of maintenance, or know whether you can extend the overhaul period, you need data. With our Tekomar XPERT software-as-a-service, we also help the customer get a better understanding of their emissions and optimise their engines.”
Extending service
The company also aims to evolve its substantial service business towards more long-term committed service agreements. Currently, around 15% of Accelleron’s service revenue comes from such agreements. But as shipping enters a period where ships may need to switch to new fuels across their lifecycle, and optimisation becomes increasingly important, Mr Bischofberger sees potential for growth.
He sees strong potential for Accelleron to increase its share of the marine engine market – currently standing at around 40% – through the energy transition. He notes that several of the engine projects around new fuels deploy Accelleron turbochargers first, while the company retains a strong position in LNG dual-fuel engines, with listings on around 85% of newbuild LNG carriers in the past year. Through its turbochargers, its digital offering and now its fuel injector business, Accelleron can deliver even greater value to its customers.
“It’s not just about spare parts and better service, it’s about talking on a higher management level with our customers about the energy transition and how we can go through this journey better,” Mr Bischofberger explains.
There is room for growth in other directions, as efficiency and fuel economy become more important. One of these is the diesel/liquid fuel high-speed engine sector, where Accelleron has not previously played a role. Vessels on increasingly highly regulated inland waterways would be potential customers. The company is also exploring how turbocharging can be applied to fuel cells, which also rely on pressurised air flow to improve efficiency.
As for further acquisitions, Mr Bischofberger remains sanguine. His concluding remarks contrast with the pace at which Accelleron has so far capitalised on its independence.
“For the time being we have two good businesses, and we want to grow both,” he says. “If something comes along and ticks all the boxes, fine. But we are patient.”
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