22 July 2024 Success Stories
EIC Survive & Thrive 2024
EIC Survive & Thrive 2024
1 July 2024 75 Success Stories
Story type
Atmos International Innovating to offer greater value to gas and water pipeline operators Jun Zhang CEO How is Atmos thriving? After forging a reputation for itself as the go-to provider of oil and gas pipeline leak detection systems, Atmos knew the fate of its long-term future lay in how well it could diversify into other fields. Investing heavily in R&D has long been a hallmark of the company, and its innovative spirit has resulted in the development of new solutions geared towards the smarter operation of gas and water pipelines. The challenge - Atmos International was founded in 1995 with a clear value proposition to clients – to reliably detect pipeline leaks on operational pipelines. Fast-forward to the present day, and its leak detection technology has been successfully applied to over 1,500 pipelines across more than 60 countries, with a formidable pool of loyal customers providing it with steady custom. That said, recent years have posed challenges, not least around the state of play within the oil and gas industry. The lasting impact of the pandemic on oil prices, combined with the move to net zero and phasing out of fossil fuels, has created uncertainty and reduced the appetite for investment in the field. This prompted Atmos’ leadership to ask where the company might be in 20 years’ time. To make it sustainable in the long term, a rethink was needed, one which triggered a move to diversify into different areas. The solution - Some of the groundwork for the company’s diversification had already been laid by the time the strategy was more formally adopted in 2020. Atmos started innovating new products for the oil and gas market back in 2017 to generate fresh demand, with a focus on bringing value to players in the natural gas segment. This came in the form of the award-winning Atmos Intelligent Optimizer (AIO), which informs control room operators on how to run pipelines in the most optimal way while minimising energy consumption and securing gas supply for all customers. Innovating this, and other solutions for the modern gas sector, has involved numerous investments into R&D and talent. Atmos hired AI specialists from universities to work in tandem with its internal R&D team, with external
funding also being secured from Innovate UK. Existing clients were leveraged as sounding boards to run ideas by, while the company also brought in a new business development director in the US to specifically work on commercialising the AIO product. The impact of this appointment is already being felt, with two projects ongoing with gas pipelines in the country. The other key diversification channel has been water. Another industry heavily reliant on robust pipelines and compliance with regulation, it was a natural step to provide IoT-powered, real-time leakage detection systems to water network operators. Indeed, the water sector in England and Wales loses around three billion litres of water a day due to leakage, a reality which costs around £800m a year and contributes significant amounts of CO2 emissions. In 2020, Atmos began R&D work into how it could serve this huge demand to reduce leakage incidents, factoring in unique challenges such as the need to create new hardware to measure flow and pressure in different types of pipelines. What’s more, systems need to be battery-powered, and therefore extremely energy efficient and cost-effective if they are to be viable. Interest in the concept is growing. Atmos is working with four different UK water companies, including projects with United Utilities and Northumbrian Water. Meanwhile, the UK’s Department for Business and Trade provided a grant for the company to explore its water solution in Brazil. Getting to this point has drawn on all of Atmos’s innovative spirit and culture. The company commits more than 20% of UK annual revenue in R&D, helping it to remain at the forefront of ideas and keep pace with technological change. This is also made possible by a highly talented and creative team of people, the credentials of which have been proven time after time in the form of five ‘Smart Awards from Innovate UK’ and a ‘Queens Award for Innovation’ in 2020. Looking ahead, there is clearly more to come. During 2024, Atmos expects to start taking on revenue-generating work in both of its new lines of business, suggesting that its investment into diversification is on the cusp of paying dividends.
#technology (main category) #diversification, #innovation
Benefits ▸ Atmos’ diversification strategy is expected to generate revenue in 2024. ▸ The company’s R&D was recognised and Atmos was awarded five ‘Smart Awards from Innovate UK’ and a ‘Queens Award for Innovation’ in 2020.
Key findings For industry ▸ Take the opportunity to make a new product or start a new business when you see it. If there is a need: persist, you will succeed. ▸ The key to success is having the right people. It doesn’t matter how big the challenge is because the right people will overcome it. For government ▸ Continue to invest in technology and innovation because the future depends on it.
Atmos International at a glance: Key products and services: technology. Its primary focus is to detect pipeline leaks and pipeline simulation software Main industries served: ▸ Oil and gas – 99% ▸ Others (non-energy: water) 1% Headquarters: Manchester, UK Year established: 1995 Number of employees: 180 Revenue from exports: 77%