The business model of SIMEC Atlantis
- Business Model Shifts
Traditional technology for generating electricity relies on fossil fuels. This production technology generates toxic emissions and pollutes our planet. And, sooner or later we run out of fossil fuel. Demand for electricity is also increasing because of the digitization of the economy. We need to transition to a new energy system based on renewables. Have a look at the business model of SIMEC Atlantis how this can be done.
Power of the tides
Tidal flows are extremely powerful and everlasting. Why not use them to power the planet? Asking this simple question is how Atlantis started working on the idea to generate renewable energy with turbines powered by the tides. Atlantis started in 2002 in Australia with testing and scaling tidal current turbine designs and concepts. Today, they are the largest tidal energy company in the world.
Atlantis ensures a renewable energy project is successful. They reduce the technology risks, complexity and costs of projects, by providing a wide range of services. Atlantis co-develops and co-creates with their customers to achieve their sustainability ambition. Atlantis selects their customers and markets by carefully evaluating a potential project in terms of commercial, financial, political and technical viability. They only work with customers that have big ambitions in powering the world with clean, renewable energy. Scotland is one of their customers working on achieving their circular ambition with them. They are heavily investing in the circular economy with clear targets for reducing waste across the board.
From waste to energy
Shutting down old energy plants destabilizes the grid, which ironically hampers the injection of energy from renewable sources into the grid. Atlantis therefore started a new energy business by acquiring an old coal plant. This Uskmouth conversion project repurposes this plant to turn waste that is now sitting in many landfills across the UK into energy in a clean way. This also fulfils their ambition to participate in the war on plastic. This second business model addresses two of the most important themes in the UK and Europe: reduction in single use and non-recyclable plastics and a rapid transition to lower carbon intense sources of baseload generation. Baseload is the minimum level of demand on an electrical grid over a period of time.
New and clean energy
SIMEC Atlantis has two separate businesses each focuses on providing clean energy. The tidal business offers successful projects, resulting in unlimited and clean energy supply. Their waste to energy business cleans up the UK, stabilizes the energy grid, while meeting increasing demands for energy. Both businesses facilitate growth decoupled from increasing socio-environmental effects.
Business Model Canvas of SIMEC Atlantis
Collaborate to transform
Innovation is difficult for any organization to achieve alone because you need to access a lot of technology and skills from multiple disciplines and fields in different parts of the world at the same time. Atlantis is collaborating throughout the entire supply chain to make renewable energy a success. It is actively building a global network, supplemented with strong local partners. You cannot change an industry on your own. Collaboration is the way to create the (sustainable) future.
This case is part of the research for our upcoming book Business Model Shifts.
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