Honeywell Invests in Energy-as-a-Service Market Leader Redaptive to Drive Private Sector Energy Contracting
Leverages complementary abilities and expertise to enable energy efficiency and sustainability upgrades with little-to-no upfront capital investment for private-sector-owned commercial buildings
ATLANTA, March 29, 2023 /PRNewswire/ -- Honeywell (NASDAQ: HON) today announced a strategic investment in Redaptive, which will accelerate a collaboration to bring Energy-as-a-Service (EaaS) capabilities to private sector-owned commercial and industrial buildings.
This investment helps enable the rapid deployment of technologies designed to reduce carbon emissions across a large portfolio of buildings. This collaboration combines Honeywell's experience in energy savings performance contracting (ESPC) and building controls capabilities with Redaptive's innovative data technology and EaaS platform. It provides customers with more ways to baseline current energy usage and reduce consumption to achieve their sustainability goals - with little-to-no upfront investment.
Terms of the investment were not disclosed.
The energy-performance-contracting market and associated funding mechanisms enable energy improvements without upfront customer capital investment by using the energy savings to fund the work. This approach is well-developed in the public sector, as well as in the education and healthcare markets. However, there remains significant opportunity with private-sector commercial building owners and operators who have traditionally made the full investment in energy audits and upgrades, potentially impeding the opportunity to fully capture energy savings.
This collaboration will create the opportunity for customers to generate meaningful energy savings in a capital efficient manner. It also offers accelerated technology deployment to upgrade existing building infrastructure, support capabilities such as on-site renewable energy assets, and deploy advanced controls software, such as Honeywell Buildings Sustainability Manager powered by Honeywell Forge. As part of the collaboration with Redaptive, Honeywell will deploy the Redaptive platform in its own facilities.
"The time to reduce the energy use and carbon impact of buildings is now," said Del Misenheimer, president of Honeywell Building Solutions. "We must find ways to bring much-needed technologies and capabilities to many more buildings. Our work with Redaptive will enable us to help more commercial buildings deploy energy conservation projects with innovative capital deployment models and efficiently deliver asset-level analytical insights."
With this move, Honeywell and Redaptive will enable customers to improve operational efficiency and better support sustainability goals through rapid deployments and uptime improvement, using technologies designed to lower energy use and improve asset health. Redaptive's data technology is easy to use and deploy at scale, enabling improved energy monitoring and equipment optimization for customers.
"We are thrilled to work with Honeywell to further our shared commitment to boost sustainability efforts in commercial and industrial buildings," said Redaptive Chief Executive Officer Arvin Vohra. "This collaboration enables us to expand our platform to support businesses with real estate holdings of all sizes to reduce carbon emissions and energy use."
Research shows that the building and construction sector accounts for 34% of energy demand and 37% of energy and process-related CO2 emissions. The EaaS market is growing rapidly due to rising energy costs, and Redaptive is a market leader in this space. The collaboration provides the companies with access to each other's capabilities. This includes Redaptive's data technology, energy assessments, and efficient capital deployment to identify the energy conservation measures with the best return on investment, as well as Honeywell Buildings Sustainability Manager to monitor, control and optimize a building's energy use and carbon emissions.
About Redaptive
Redaptive is a leading Energy-as-a-Service provider that funds and installs energy-saving and energy-generating equipment. Redaptive's programs help many of the world's most sophisticated organizations reduce energy waste, optimize cost, lower carbon emissions, and meet their sustainability goals across their entire real estate portfolios. With Redaptive, customers can overcome capital and resource barriers to achieve energy-saving benefits quickly, all with continuous data powered by Redaptive's proprietary metering technology. Redaptive was founded in 2015 and is headquartered in San Francisco, Calif. For more information, visit: Redaptive.com.
About Honeywell
Honeywell Building Technologies (HBT) is transforming the way every building operates to help improve the quality of life. We are a leading building controls company with operations in more than 75 countries supported by a global channel partner network. Commercial building owners and operators use our hardware, software and analytics to help create safe, efficient and productive facilities. Our solutions and services are used in more than 10 million buildings worldwide.
Honeywell (www.honeywell.com/us/en) delivers industry specific solutions that include aerospace products and services; control technologies for buildings and industry; and performance materials globally. Our technologies help aircraft, buildings, manufacturing plants, supply chains, and workers become more connected to make our world smarter, safer, and more sustainable. For more news and information on Honeywell, please visit www.honeywell.com/us/en/news.
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