Research Paper on Resolute Marine Energy Inc: A Clean Technology Industry Leader

Introduction

Resolute Marine Energy Inc. creates wave energy converters that generate clean power from ocean waves. The company is focusing on commercializing the world's first WEC-driven seawater desalination system that would displace their competitors who use diesel-driven systems ("Resolute marine energy," 2019). It operates under the clean technology industry with a specific focus in wave and tidal energy.

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Industry Analysis

The clean technology industry involves the application of technologies that utilize energy, water and other input in a more effective and efficient manner. Clean technologies involve solar and wind energy, water filtration, controls of industrial processes and hybrid electric vehicles among others.

The global wave and tidal energy market consist of approximately 200 companies, with most of them increasingly adopting advances in wave energy converter technologies. Most of the players aim at the commercial deployment of wave and tidal energy power plants which are observed in various regions for them to utilize the economies of scale. The leading players in the wave and tidal energy market include Marine Current Turbines Ltd., Aquamarine Power Ltd., AquaGen Technologies, Atlantis Resources Ltd., Ocean Renewable Power Company LLC, Tenax Energy, Pelamis Wave Power and Carnegie Wave Energy ("Resolute marine energy," 2019).

The universal wave and tidal energy market stood at US$ 497.7 million as at 2014 with projections required to go up to US$ 11345.0 million by 2024 ("Grandviewresearch.com," 2018). This shows a market increase of 23.2% of the forecast period between 2016 and 2024. The energy generated is classified into the wave and tidal energy and is expected to control the market through 2024. Among the major facts that account for its attractive growth is the assortment of technologies that would be established by the companies to leverage this type of energy. The growth is powered by the need for governments and economies to adopt low-carbon energy and the various strides taken by the energy sector.

Companies in the industry are unleashing the potential of oceans to generate clean energy. A noteworthy factor boosting the market is the remarkable demand for next-generation technologies to harness renewable energy sources. Advancements in wave energy converter technologies have enabled the market players to recognize the potential of the sources of wave and tidal energy.

Competitor Analysis

The major competitors for Resolute Marine Energy, who were founded in more or less the same time including but not limited to the following:

Carnegie Wave Energy

Carnegie wave energy uses wave energy technology to convert ocean swells into desalinated freshwater and renewable power. The company was founded in 1993, records a revenue of $4.6M, received funding amounting to $23.3M and has 12 employees, just like Resolute Inc.

Ecoult

Ecoult is another major competitor that was founded in 2007. The company also works in the renewable energy equipment and services sector. Ecoult has 32 employees and generates revenues worth $23M.

Dms Energy

Dms Energy was founded in 2007, just like Resolute. The company operates in the renewable energy equipment and services industry. The company has 501 employees and generates approximately $5M in annual revenues.

SgurrEnergy

The company is among resolute's major competitors which were founded in 2002. The company competes in the renewable energy industry. The company generates revenue of $10M and has 153 more employees compared to Resolute Marine Energy ("Grandviewresearch.com," 2018).

Porter's Five Forces

The threat of new entrants

There is a high threat of new entrants into the business, with more economies intensifying in their adoption of low-carbon energy sources and clean water for consumption. Despite their profitability levels, the companies also receive funding from states and various organizations. This makes it easy for new entries since they can easily obtain the financial support that they may require.

Threat of substitutes

There is a very high propensity or substitution in the industry. While there may be few substitutes in the market, the ease of substitution and the availability of a close substitute remains high. An example is Resolute Marine Energy's unique technology that generates clean power from ocean waves using wave energy converters that operate "off-grid" as opposed to the market segment that uses diesel-driven systems. The result is a sustainable, cost-effective and highly scalable solution to "renewable water" that would easily put the competitors out of the market ("Resolute Marine Limited," 2015). The technology designed is a substitute for the diesel-electric systems used which have high-cost water and have significant environmental risks.

Bargaining power of customers

The customers, in this case, have a higher bargaining power due to the variety of product offerings in the market. Despite the various alternatives from other companies, price sensitivity, differential advantage, and customer value analysis would come in handy for Resolute Marine Energy. Its new technology would result in low production costs and product prices and high-quality products that would attract more customers.

Bargaining power of suppliers

The suppliers have low bargaining power. They switch costs at a lower rate compared to the firms since it's up to the company to decide on the costs of supplies or inputs and its resulting impact on prices and product differentiation.

Competitive rivalry

There exists a high competitive rivalry in the wave and tidal energy business. This encourages sustainable competitive advantage for the companies through innovation as evident in the case of Resolute Marine Energy which developed unique technology to harness ocean wave energy as opposed to the normal diesel-electric systems.

References

"Resolute Marine Energy," (2019). Resolutemarine.com. Retrieved from https://www.resolutemarine.com/

"Grandviewresearch.com," (2018). Global Wave Energy Market Size | Tidal Energy Industry Report, 2025. Grandviewresearch.com. Retrieved from https://www.grandviewresearch.com/industry-analysis/wave-energy-market

"Resolute Marine Limited," (2015). MRIA Ocean Energy Industry Forum. Mria.ie. Retrieved from http://mria.ie/documents/503badd7d6904035e510fed4a.pdf