Chiyoda and Novity Partner to Deploy Integrated AI Predictive Maintenance and plantOS® Solution in Japan, Middle East, and North America

Chiyoda Corporation (Headquarters: Yokohama, Kanagawa, President and CEO: Koji Ota, hereinafter 'the Company') has concluded a strategic partnership agreement (hereinafter 'the Partnership') with Novity, Inc. (Headquarters: California, USA, CEO: Markus Larsson, hereinafter 'Novity'), a US-based AI predictive diagnostic technology company, regarding the market deployment of a solution that integrates Novity's AI predictive diagnostic platform 'TruPrognostics™ AI' with the Company's comprehensive O&M (Operations & Maintenance) solution platform 'plantOS® (*1)'.

Through this Partnership, the two companies will jointly promote the provision of integrated solutions that achieve data-driven maintenance optimization, operational stabilization, and equipment reliability enhancement, targeting Japan, the Middle East, and North America.

Under our purpose of 'Engineering a more sustainable tomorrow,' the Company will promote collaboration with Novity as part of co-creation, enhancing customers' Business Safety (*2) through the provision of plantOS®, and contributing to the realization of a sustainable business and society.

(*1) 'plantOS®' is a registered trademark of Chiyoda Corporation. It is a service that supports maintenance and operations by hybridizing the site-centric physical support in the maintenance field for industrial facilities/plants that our group has provided so far, with the latest digital technologies such as advanced analysis, diagnostic services, IoT, Cloud, and AI cultivated over many years.

[Reference] Our press release dated September 4, 2023: https://www.chiyodacorp.com/media/230904.pdf

(*2) 'Business Safety' is a concept advocated by the Chiyoda Corporation Group, meaning 'safe and secure corporate activities capable of adapting to environmental and social changes to maintain and continue business.'

Background and Purpose of the Partnership

In recent years, the industrial equipment sector has faced increasingly serious challenges such as a shortage of labor and the difficulty of passing down skilled techniques, while the need for advanced equipment management is rapidly growing. To address these challenges, by combining Novity's 'TruPrognostics™ AI,' which highly accurately predicts equipment behavior, with our 'plantOS®,' we will provide an unprecedented comprehensive O&M solution, including the prediction of Remaining Useful Life (RUL), precise equipment diagnostics, and actionable recommendations for maintenance and operations.

The main objectives of this Partnership are as follows:

- Creation of an integrated solution for predictive forecasting, diagnostics, anomaly detection, O&M recommendations, and operational optimization - Joint Go-to-Market (GTM) promotion tailored to the market needs of Japan, the Middle East, and North America - Enhancement of safety and reliability in AI and data utilization (strengthening data governance) - Contribution to improving customers' equipment availability, reducing downtime, optimizing maintenance costs, and enhancing safety

Jointly Provided Solutions

This alliance will provide the following values:

- Reduction of unplanned downtime through accurate equipment failure diagnostics and RUL prediction - High-efficiency operation and load adjustment support based on equipment conditions - Digitalization of skilled techniques and support for skill transfer - Strengthening governance through a secure data integration platform

Furthermore, the two companies will jointly prepare a comprehensive roadmap from PoC (Proof of Concept) to commercial deployment, focusing on LNG facilities, refineries, chemical plants, power plants, and infrastructure facilities.

Features of TruPrognostics™ AI

While traditional predictive maintenance tools issue warnings to operators regarding anomalies, they could not answer 'when a failure will occur.' The integrated solution of plantOS® and TruPrognostics™ AI solves this issue.

- Hybrid model fusing physical models and AI — High-precision prediction without requiring massive historical data Unlike conventional data-driven tools that require enormous amounts of training data leading up to a failure, TruPrognostics™ AI achieves a high prediction accuracy of over 90% even in environments with limited historical data by combining physics-based models and machine learning.

- Integration of a series of O&M tasks via plantOS® By embedding TruPrognostics™ AI into plantOS®, RUL prediction is seamlessly linked with maintenance planning and operational tasks, provided as a single integrated workflow.

Comment from Markus Larsson, Co-Founder and CEO of Novity, Inc.

TruPrognostics™ AI is expected to be utilized in industrial infrastructure, including upstream and midstream sectors in the oil and gas industry.