The switch from fossil fuels to renewables requires significant investment, which can be difficult to justify using existing economic models. Decarbonisation “as a Service” offers an innovative and agile solution for businesses.
Manufacturing businesses face major challenges in the current context of ecological transition. To phase out highly carbon-emitting fossil energies, which still represent over 80% of the worldwide energy mix,* will require a radical transformation.
Methods already exist for decarbonising the economy, and industry in particular: electrification, use of renewable and low-carbon energies, heat pumps, clean energy storage, etc. But the challenges that industry must address if it is to make this transition are many and complex.
The many challenges of energy transition
The first challenge concerns the difficult balance between competitiveness and sustainability. The pressure to reduce greenhouse gas emissions while maintaining profitability is intense.
The need for large-scale investment is another major issue. Decarbonisation and the adoption of renewable energies tend to require very large capital investments (CAPEX). These investments may be needed to purchase new technologies, modernise existing infrastructure, or train personnel.
The third challenge to overcome involves the financial risks inherent in this energy transition. Significant investment spending may represent a financial risk to businesses, especially if the expected benefits are not reaped quickly. Businesses also have to manage their operational costs (OPEX) in connection with maintaining and operating the new technologies.
Lastly, manufacturers face increasingly stringent regulatory and social pressures pushing them to comply with new environmental standards. There is also growing pressure from consumers and investors for businesses to adopt more sustainable practices.
DaaS – an outsourced and flexible service
In these circumstances, Decarbonisation “as a Service”, which allows the purchase of low-carbon energy services from a partner without having to financially support investment in the required infrastructure, is an innovative and tempting solution for many businesses. This outsourced service model offers a flexible and efficient way to achieve sustainability targets.
DaaS operates in partnership with specialist providers of customised decarbonisation services, such as Greendeed, which offers an on-demand service called EaaS (Energy as a Service) to enable customers to accelerate their energy transition without having to draw on their CAPEX (investment spending).
By lightening the financial and technological burden of energy transition, DaaS represents an effective solution for industrial companies.
This allows them to benefit from the advantages of new technical solutions and respond to constantly changing regulations. There are numerous advantages, since the service becomes a cost that can be completely deconsolidated in the company’s accounts and thus reduce their tax burden while maintaining greater borrowing capacity for expanding their core business.
This type of solution begins with expert analysis of a company’s specific decarbonisation needs and the creation of a bespoke plan to maximise effectiveness and minimise costs.
The technologies and solutions required are then deployed by the service provider. These may include energy management systems, carbon capture technologies and renewable energy sources. Lastly, performance is continuously monitored and improved, optimising processes to ensure sustainable results. Regular progress reports are provided so that strategies can be adjusted as necessary.
Substantial benefits for businesses
The adoption of DaaS offers numerous benefits. A business may significantly reduce its greenhouse gas emissions with no significant up-front investment. This helps it achieve sustainability targets and comply with environmental regulations.
Another considerable benefit lies in gaining access to advanced technologies with the expertise and cutting-edge solutions offered by DaaS providers, which can be difficult to implement internally.
DaaS offers flexibility, allowing businesses to adapt services to their changing needs. Solutions can be scalable, enabling growth with no major constraints.
The ability to adapt is the key to success
While DaaS offers numerous benefits, there are other issues that manufacturers must address once they have adopted this solution.
The integration of new technologies may require organisational changes and training. Resistance to change can be another obstacle that takes some effort to overcome. In addition, while the initial investments are reduced, operating costs may still be significant. It is important to plan carefully and budget for these costs to avoid any financial surprises.
One final point to consider is the changing market. The market for decarbonisation is evolving rapidly with new technologies and regulations. Businesses therefore need to remain well-informed and responsive if they are to take full advantage of DaaS.
Ultimately, Decarbonisation as a Service represents a viable, effective solution for businesses seeking to reduce their carbon footprint. By lightening the financial and technological burden that this transition can impose, DaaS enables them to remain focused on their business model while subcontracting the energy dimension to a specialist, just as digital infrastructure can be subcontracted to a cloud service provider.
01/16/2025
*Statistical Review of World Energy (2024, 73rd edition). Energy Institute
