Twenty percent of global carbon emissions are caused by industrial heat. Manufacturers in the US, and worldwide, are looking for ways to reduce their carbon footprint while battling rising energy costs and adapting to increasingly stringent environmental regulations. Furthermore, these manufacturers cannot risk disruption to their operations or high operational costs, especially when embarking on a decarbonization project.
To address these challenges, Skyven has pioneered the Energy-as-a-Service (EaaS) business model, which provides a unique opportunity to reduce operational risk and increase the profitability of industrial decarbonization projects. Read on to discover how EaaS can help manufacturers lower operating expenses, improve energy efficiency, and reduce emissions, all without upfront capital investment.
What Is Energy-as-a-Service (EaaS)?
So what is EaaS, and how does it benefit industrial manufacturers? Also called Efficiency-as-a-Service and Heat-as-a-Service, EaaS is an innovative business model that enables large industrial projects, including decarbonization and energy efficiency, to be implemented at no capital cost to industrial manufacturers.. Under this model, the EaaS partner provides end-to-end project support and manages design, engineering, installation, and operations at no cost to the manufacturer. The EaaS partner then delivers the energy to the manufacturing facility over the operating lifetime of the project – typically at prices lower than the manufacturers are currently paying.
Traditionally, large emissions reduction projects require significant capital investments in infrastructure and equipment. EaaS shifts the financial burden for manufacturers from capital expenditures (CapEx) to operational expenditures (OpEx), removing the need for them to invest in costly infrastructure upgrades upfront.
In an EaaS decarbonization project, the service provider handles everything from installation to system optimization in close partnership with the manufacturing facility. This allows manufacturers to focus on their core operations, leaving the decarbonization project process with the service provider. The EaaS provider takes full responsibility for designing, installing, and managing the systems being used for the project, enabling industries to adopt smart energy solutions like industrial heat pumps, both lowering energy costs and reducing emissions.
The Benefits of Energy-as-a-Service for Industrial Operations
EaaS helps industrial customers cut operating costs and meet sustainability goals without interrupting core operations. With an EaaS partner, companies can better manage energy consumption, decarbonize their facilities, and ensure compliance with environmental standards.
The Skyven Approach: Energy-as-a-Service for Industrial Decarbonization
Skyven’s innovative, proven EaaS model provides a unique partnership approach that goes beyond traditional energy efficiency projects. By aligning project success with energy savings, Skyven takes on the project’s performance risk—ensuring that the manufacturing facility benefits from immediate cost savings without any upfront investment.
Skyven’s EaaS model provides three significant benefits to industrial manufacturers:
- Unique Partnership Model: Skyven takes a hands-on approach to decarbonization projects. We design, implement, and maintain the entire Skyven Arcturus industrial heat pump solution, allowing our industrial customers to focus on core operations while we handle emissions reduction and energy optimization.
- Access to Cutting-Edge Technology: Skyven’s EaaS model provides a low-risk way to implement cutting-edge innovations like the high-efficiency Skyven Arcturus industrial heat pump. Furthermore, our Galileo modeling tool enables rapid scoping of Arcturus projects that are engineered to maximize energy efficiency and emissions reduction.
- Cost Savings With Aligned Incentives: By aligning financial goals and emissions reductions, a successful project leads to cost savings for the manufacturer and cleaner air for the local community.
EaaS in Action: Skyven and a Major Dairy Manufacturer
California Dairies, Inc, the largest dairy manufacturer in California, had two ambitious sustainability goals: to attain net neutrality by 2050 and a 30% reduction in emissions by 2030.
CDI partnered with Skyven at two of their largest facilities to successfully install six decarbonization projects with no upfront CapEx using the EaaS business model. From these projects alone, CDI has seen annual reductions of over 7,000 metric tons of CO2 and over 110,000 MMBTU in natural gas. The improved energy efficiency and operational cost savings allowed CDI to allocate more funds across their facilities, farmer network, and customers.
Thanks to this innovative partnership, real progress is being made towards improved energy efficiency, real bottom-line savings, and positive environmental impact. Together, Skyven and CDI are making a transformative difference for industrial manufacturing. You can learn more about this exciting partnership in this case study.
