Honeywell (NASDAQ: HON) on March 29 announced a strategic investment in Redaptive, which the company says will accelerate a collaboration to bring Energy-as-a-Service (EaaS) capabilities to private sector-owned commercial and industrial buildings.
Honeywell said the new investment helps enable the rapid deployment of technologies designed to reduce carbon emissions across a large portfolio of buildings.
The collaboration combines Honeywell's experience in energy savings performance contracting (ESPC) and building controls capabilities with Redaptive's innovative data technology and EaaS platform.
The partners says their platform integration 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 strategic investment were not disclosed.
Focus on private-sector commercial buildings
The partners note how 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, Honeywell states that 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.
The companies say the new collaboration will create the opportunity for customers to generate meaningful energy savings in a capital efficient manner. The partnership 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.
Research cited by Honeywell shows that the building and construction sector accounts for 34% of energy demand and 37% of energy and process-related CO2 emissions. The company notes that EaaS market is growing rapidly due to rising energy costs, and that 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.
With the partnership, Honeywell and Redaptive said they will jointly 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 designed to be easy to use and deployable at scale, enabling improved energy monitoring and equipment optimization for customers.
Redaptive CEO Arvin Vohra said:
"We are thrilled to work with Honeywell to further our shared commitment to boost sustainability efforts in commercial and industrial buildings. 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."
As part of the collaboration with Redaptive, Honeywell said it will deploy the Redaptive platform in its own facilities.
Del Misenheimer, president of Honeywell Building Solutions, concluded:
"The time to reduce the energy use and carbon impact of buildings is now. 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."