Unehehs_your_eheh
how about a mixture of both and more? environment energy can be used for small and simple things like a small fan or a toy, for bigger things, something like elemental crystals, and industrial sized things like a factory traditional energy sources like coal or electricity(At that point you can also go into politics of Fontaine because ofmarket dominance or environmental damage). My point is don't limit yourself to one energy source and make sure to give them perks and downsides. For example, environmental energy can be an easy but very weak energy source or let the user of the device become the energy source with the perk of it being mobile and cheap but inconsistent in output and being a stamina drain. It gives you the capability to put limits on a creation and gives a reason for upgrades.
I have an idea. How about he tries Harness the elements But he fails. The system gives an emergency quest to save his life. I was thinking he could make his own Iron Man Arc reactor or be a xenoblade chronicles 2 blade eater/ aka be Connect to ryuzu. If you go with option one, he's going to need to keep upgrading his reactor. And with option two train they're connection.