Heat as a service: How to decarbonize commercial and industrial heat use with third-party capital investments
WBCSD
In efforts to reach net-zero emissions by 2050 and combat the climate crisis, many companies have made progress in decarbonizing their electricity use. There has, however, been little focus on decarbonizing heat, even though industrial heat alone accounts for 29% of global final energy demand.
Financial barriers to sourcing sustainable heat are widespread, given many solutions come with significant capital expenditure and sub-par returns on investment. Companies also have competing needs for internal capital. Heat as a Service (HaaS) overcomes these barriers by involving a third party who invests in a low-carbon asset, guarantees its operational performance, and sells the energy generated through a long-term offtake agreement. This WBCSD guide provides an introduction to HaaS, outlines key commercial considerations, and explains how to efficiently develop HaaS solutions.