Heat as a service: How to decarbonize commercial and industrial heat use with third-party capital investments

The document identifies industrial heat as a significant contributor to global energy demand and proposes 'Heat as a Service' (HaaS) to address the high capital costs and low returns associated with sustainable heat solutions. Under HaaS, a third party invests in and operates low-carbon assets, selling the resulting energy via long-term agreements.

• Industrial heat represents a substantial portion of global energy needs, accounting for 29% of global final energy demand, yet it has received less focus for decarbonization than electricity.
• The transition to sustainable heat is hindered by financial obstacles, specifically high initial capital expenditures and insufficient returns on investment, alongside internal competition for corporate capital.
• The Heat as a Service (HaaS) model mitigates financial barriers by utilizing a third party to invest in low-carbon assets, guarantee operational performance, and sell energy through long-term offtake agreements.

APA

Davis, L. (2022). Heat as a service: How to decarbonize commercial and industrial heat use with third-party capital investments. We Mean Business Coalition. https://www.wemeanbusinesscoalition.org/blog/heat-as-a-service-how-to-decarbonize-commercial-and-industrial-heat-use-with-third-party-capital-investments/

Chicago

Davis, Luke. Heat as a service: How to decarbonize commercial and industrial heat use with third-party capital investments. We Mean Business Coalition, 2022. https://www.wemeanbusinesscoalition.org/blog/heat-as-a-service-how-to-decarbonize-commercial-and-industrial-heat-use-with-third-party-capital-investments/.

Wikipedia

{{cite report |last1=Davis |first1=Luke |title=Heat as a service: How to decarbonize commercial and industrial heat use with third-party capital investments |publisher=We Mean Business Coalition |date=19 September 2022 |url=https://www.wemeanbusinesscoalition.org/blog/heat-as-a-service-how-to-decarbonize-commercial-and-industrial-heat-use-with-third-party-capital-investments/ |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{davis2022heat, author = {Davis, Luke}, title = {{Heat as a service: How to decarbonize commercial and industrial heat use with third-party capital investments}}, institution = {We Mean Business Coalition}, year = {2022}, month = sep, url = {https://www.wemeanbusinesscoalition.org/blog/heat-as-a-service-how-to-decarbonize-commercial-and-industrial-heat-use-with-third-party-capital-investments/}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }