Blue Atmos Energy

Brief

Blue Atmos Energy is a San Antonio-based startup working to revolutionize energy harvesting with its next-generation technology. They are dedicated to providing sustainable, alternative sources of energy for residential and commercial customers - like the development of vertical turbines for renewable power production. With prototypes in progress that aim to tackle bottleneck issues within the energy storage sector, Blue Atmos Energy embodies an innovative approach toward a greener future!

• Utilities have so far proved reluctant to invest in wind power in the absence of federal incentives due to its high cost.
• State and federal government energy policies are the primary drivers of demand.
• Due to the industry's high volatility, it has to maintain a flexible workforce.
• Providers will front-load their wind turbine installations before incentives expire.
• Federal incentives have been inconsistent, leading to uneven growth in turbine installations over the years.
• Offshore wind is currently a nascent market that holds enormous potential.

Harnessing the power of nature, from large-scale energy storage to small-scale residential wind turbines, is revolutionizing how we generate and utilize renewable resources.

Problem/Solution

Today's energy industry consists primarily of solar energy solutions, which comprise roughly 2% of the world's energy source. Currently, very few alternative energy solutions exist for homeowners and business owners beyond solar. Many residential and commercial buildings require alternate forms of sustainable energy because they exist in locations where solar energy is less effective in harnessing power. For the world to reach energy sustainability at a global scale, it will require innovative energy technologies in the residential and commercial markets beyond solar power. Blue Atmos Energy's solution to this problem is to pave the future for residential and commercial sustainability by enabling them to harness the power of wind and water. At the same time, the company has plans to help build technologies improving energy efficiency and storage, which has historically been a bottleneck for the sustainable energy industry.

The potential of renewable energy is virtually limitless, with the capacity to drastically reduce our reliance on finite sources and bring about a more sustainable future.

Key factors

Economies of scale: Industry operators that can take advantage of large-scale projects are likely to reduce the per-unit cost of installation and, in turn, generate higher profit margins. 

Ability to pass on cost increases: Due to the size of industrial wind turbines and the technical skill required for the installation, industry operators must be able to pass on unexpected costs to clients. This is particularly applicable to the transportation of turbines. 

Having links with suppliers: Overseas, it is common practice for turbine manufacturers to partner with installers. As this practice becomes commonplace in the United States, companies that can build these relationships are likely to have the greatest success. 

Market Analysis

The wind turbine installation industry is defined as companies that transport, construct, and install wind power systems, such as turbines. According to IBISWorld, in 2020, the industry was valued at $1.8 billion annually, with an expected growth rate of 1.9% through 2025. However, there are very few industry members relative to other industries of similar size. In 2022, it was estimated that there were just 264 businesses operating in the industry in the United States. However, it is expected that many new members will enter this space over the next five years as wind turbine technology begins to mature and become more attractive to residential consumers. The industry is divided into five major segments; assembly and installation, electrical infrastructure, transport, project development, and maintenance. Maintenance is the largest segment, bringing in over 60% of the industry's revenue.

In terms of concentration, Texas has the largest percentage of installed wind turbines due to the region being exposed to strong power-producing winds and access to a substantial amount of open space. Iowa ranks second, accounting for 8.7% of the total wind power generated in the United States. Denser cities and more heavily populated states are expected to experience slight growth in this industry. These areas will require significant innovation, cost reduction, and technology change to make these products cost-effective enough for consumers to receive value.

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Results

Blue Atmos is revolutionizing the renewable energy industry, providing an innovative and groundbreaking approach to creating clean sources of power.

Blue Atmos Energy's primary advantages are its unique solution to the problem at hand and that the company is operating in the largest market in its industry. Most of its direct competitors in its geographic region are offering solar power solutions rather than wind. Another strength is that the business is entering the industry when federal and state assistance is at an all-time high. This provides opportunities to secure funding to finalize the company's research and development efforts, which is a significant barrier for startups entering the sustainable energy market. Differentiating the company's services to include solutions for energy storage is a key opportunity that the company can capitalize on. Having a unique product segment, such as energy storage solutions, also makes the company more valuable during a potential acquisition because it greatly increases the total addressable market for a potential acquirer. Blue Atmos Energy embodies an innovative approach toward a greener future!