Energy as a Service for Industrial Heat Recovery
Rising gas prices, ambitious decarbonization targets, and stricter emission limits are pushing industrial manufacturers to rethink how they generate and use heat. At the same time, most large sites still vent enormous amounts of low-grade waste heat through scrubbers, dust collection systems, and process exhausts.
Energy as a Service (EaaS) from JOA Air Solutions turns this untapped waste heat into guaranteed energy performance, without upfront CAPEX. You pay only for verified heat recovery, energy savings or CO₂ reduction
Energy as a Service for industrial manufacturers, combines:
Waste heat recovery from wet scrubbers and dust collection systems
System integration of industrial heat exchangers, high-temperature heat pumps and heat storage
Heat electrification for process heat, steam, drying, building heating, district heating and more
What is Energy as a Service (EaaS)?
In industrial Energy as a Service, you buy a guaranteed energy outcome instead of buying equipment. Instead of owning scrubbers, heat pumps, heat exchangers and associated infrastructure, you pay a recurring fee linked to:
€/MWh of heat recovered
€/MWh of energy saved
€/ton CO₂ avoided
The Energy as a Service provider, an SPV created together with JOA and a financing partner, owns and maintains the assets and assumes the performance and technology risk. This model is widely recognized in the market to deploy low-carbon technologies faster and off-balance sheet. Public sources such as Redaptive’s Energy as a Service overview describe similar pay-for-performance, outcome-based structures.
In short, Energy as a Service for industrial heat means:
You buy a service, not hardware – guaranteed energy output, energy savings or CO₂ reduction.
The SPV invests in, installs and owns the energy infrastructure (scrubbers, heat exchangers, heat pumps, storage, piping, controls).
You pay per unit of performance (MWh recovered, MWh saved, ton CO₂ avoided), optionally plus a fixed base fee.
Your upfront CAPEX is minimized, improving cash flow and leaving your budget for core process investments.
How JOA’s Energy as a Service model works
Data-driven Energy Audit and/or Pre-Engineering
For complex industrial sites, a good Energy as a Service contract starts with a technical and financial baseline. JOA performs:
An Industrial Energy Audit, focusing on heat suppliers (scrubbers, dust collectors, process exhausts) and heat sinks (process heat, dryers, building heating, steam, district heating, etc.).
Where useful, a thorough Pre-Engineering Study to validate process constraints, integration options and CAPEX/OPEX scenarios.
The result is a quantified potential for:
Waste heat recovery (MW, MWh/year)
Gas and electricity savings (MWh/year)
CO₂ reduction (t/year)
This step creates the reference case against which performance will be measured during the EaaS contract.
Data-driven Energy Audit and/or Pre-Engineering
Based on the audit, JOA develops a concept design for:
Wet scrubbers (including Energy Recovery Scrubbers) as combined emission control and heat recovery units
Dust collection systems as robust heat suppliers
System Integration of Heat exchangers, heat pumps and heat storage to upgrade, buffer and deliver the recovered heat where it’s needed
For each scenario we quantify:
Thermal capacity and profiles (MW, hours/year)
Temperature levels (e.g. 30–40°C residual heat upgraded to 80–140°C). For example, realized in the PMI Italy steam-producing heat pump system, which upgrades residual heat from 36°C to 80°C and then to 139°C at ~3.5 bar(a) for drying steam.
Expected energy savings (MWh gas saved, electricity use of heat pumps, etc.)
CO₂ reduction (t/year, based on current or agreed emission factors)
Financial KPIs: €/MWh heat recovered, €/MWh saved, €/t CO₂, payback vs. a traditional CAPEX investment
These KPIs become the basis for performance-linked remuneration in the EaaS contract.
Special Purpose Vehicle (SPV) and contracting
To separate assets and risks from your balance sheet, JOA structures the project in a Special Purpose Vehicle together with financial partners (e.g. infrastructure funds or specialists like Kyotherm, Adven, Redaptive or Skyven). The SPV:
Finances 100% of the project CAPEX for the EaaS scope
Owns the emission control, heat recovery and electrification assets
Contracts JOA as specialist EPC and long-term Operations & Maintenance (O&M) partner, with performance obligations
For you as manufacturer, this has several implications:
Investments in EaaS structures can often be treated off-balance sheet.
You sign a multiyear EaaS contract is commonly aligned with a technical lifetime of 20–30 years.
Payments are linked to measured performance, not to theoretical design values.
Engineering, installation and commissioning
JOA Air Solutions is a specialized EPC for industrial emission control and heat recovery:
Design and delivery of wet scrubbers (or upgrades from standard wet scrubbers to Energy Recovery Scrubbers)
Design and delivery of Dust Collection Systems
System Integration of heat exchangers and (high temperature) heat pumps into existing process and utility systems
Thermal storage where load profiles require buffering
Civil, mechanical, electrical and automation integration with minimal downtime
Unlike suppliers offering EaaS models driven purely by finance, JOA’s core differentiator is that technology and process performance come first; finance is a tool to derisk and accelerate implementation.
Operation, remote monitoring and preventive maintenance
During the contract period, JOA is incentivized to keep the system running at or above the guaranteed performance:
Remote monitoring of key parameters: flows, temperatures, pressures, energy balances, availability, CoP, etc.
Preventive and corrective maintenance, spare parts and life-cycle planning
Measurement & Verification (M&V) of:
MWh of heat delivered to sinks
MWh of gas/electricity avoided (versus agreed baseline)
CO₂ emissions avoided
JOA already offers Remote Monitoring Solutions and Service & Spare Parts for scrubbers and dust systems; EaaS simply formalizes this into a pay-for-performance framework. Existing capabilities from our Energy Recovery Scrubber and Industrial Energy Audit solutions form the technical backbone here.
What do you pay for in Energy as a Service?
In JOA’s Energy as a Service model, the manufacturer typically pays:
- A variable fee, linked to agreed performance indicators:
- €/MWh of useful heat recovered
- €/MWh of net energy saved (e.g. gas savings minus electricity use of heat pumps)
- €/ton CO₂ avoided
- Optionally, a fixed monthly service fee to cover base O&M, remote monitoring, and financing overhead.
Fuel and energy commodity costs (gas, electricity) normally remain with the client. This is also how most EaaS competitors structure their offers: they reduce your consumption and may help you lock in tariffs or improve rate security, but the actual energy bill is still paid by the end-client.
Mitigating energy price risk in a reasonable way
Energy price volatility is a real concern for both sides. Reasonable options to handle this within an EaaS contract include:
Indexing the performance fee to an agreed energy price index (e.g. TTF gas or a regional power index), so that:
If prices rise, your absolute savings increase, and the EaaS fee may increase proportionally within an agreed band.
If prices fall, the fee decreases, but the technical system still provides structural efficiency.
Banding with floors and caps: Define a price band within which the performance fee is indexed to energy price, with minimum and maximum €/MWh to avoid extreme exposure on either side.
Baseline price for CO₂ and energy: For KPIs like €/t CO₂ avoided, you can agree on reference CO₂ and fuel prices for the contract duration.
This approach intends to reflect reality: if you had bought the equipment yourself, you would also face higher absolute energy costs when prices go up. EaaS doesn’t remove commodity risk, but it can smooth the relation between savings, fees and market prices.
Why choose Energy as a Service for Industrial Heat Recovery?
Financial and strategic benefits
No or low upfront CAPEX: The SPV finances the system, allowing you to preserve capital for core production lines.
Off-balance-sheet treatment: Like leading EaaS models in the market, assets can often remain on the SPV’s books, not yours.
Predictable, performance-linked costs: Payments follow real energy performance, not theoretical catalogue values.
Improved total cost of ownership: Tailor-made equipment may be more expensive than standard units, but OPEX and TCO are significantly lower over time.
Technical and operational benefits
Higher energy efficiency: By using Energy Recovery Scrubbers and integrated heat pumps, you clean exhaust gases and recover low-grade waste heat in one system.
Heat electrification: Electricity-powered heat pumps replace part of your fossil fuel demand, reducing exposure to gas markets and enabling higher shares of renewable power, as also emphasized in broader electrification strategies.
Reduced CO₂ emissions and improved ESG scores:
At PMI Bergen op Zoom, the heat pump project is projected to deliver about 13 GWh of heat savings per year and reduce CO₂ emissions by over 2,500 t/year.
In Italy, a steam-producing heat pump supplies over half of the dryers’ heat demand from recovered energy, with a CoP up to 2.5 despite a large temperature lift to 139°C.
Stronger process stability: Tailor-made system integration typically results in fewer unplanned shutdowns, lower fouling and reduced maintenance compared to piecemeal installations.
Regulatory and sustainability benefits
Alignment with EU and national decarbonization targets (e.g. Fit for 55, national climate laws) and corporate Net Zero trajectories.
Support for CSRD/ESG reporting: EaaS models naturally generate metered data on energy use and CO₂, similar to what is highlighted in EaaS literature around ESG reporting and climate disclosures.
Futureproofing against stricter emission and efficiency requirements, especially in energy intensive process industries.
Typical applications & industries for Energy as a Service
Ideal heat suppliers (sources):
Wet scrubbers, including Energy Recovery Scrubbers (clean + cool exhaust while capturing heat)
Dust collection systems with high-temperature exhausts
Drying processes (spray dryers, fluid bed dryers, belt dryers, tobacco dryers, paper drying, food and pet food dryers)
Ovens, fryers, extruders and other continuously operated thermal processes
Ideal heat sinks (consumers):
Process hot water (e.g. 60–90°C)
Steam generation for dryers and process heating (like the PMI Bologna case)
District heating or supplying heat to neighboring facilities
Building and office heating
Preheating combustion air or feed streams
Energy as a Service from JOA is aimed at medium to large industrial sites in:
Food & beverage
Dairy
Chemicals & Plastics
Paper & Pulp
Defense & Ammunition
Tobacco and other materials processing
When is Energy as a Service the right choice?
Energy as a Service becomes attractive when:
There is a continuous recoverable heat load and sufficient operating hours.
The site has a long-term production outlook (multiyear commitment).
The manufacturer prefers to avoid CAPEX on non-core assets.
There is a clear regulatory or corporate decarbonization driver.
Suggested minimum project size:
Based on typical engineering and transaction costs in industrial heat recovery:
A reasonable lower bound for a full EaaS / SPV structure is around 0.5–1 MW of continuously recoverable thermal power, preferably:
With >5,000–6,000 operating hours per year, and
A clear, stable heat sink (process hot water, steam for drying, district or building heating).
Below this range, a conventional CAPEX purchase or smaller service contract may be more economical. Above ~1–2 MW, especially in multiMW cases, the EaaS model becomes highly compelling.
Start improving your Industrial Process!
Start with an Energy Audit Use an Industrial Energy Audit to map your waste heat sources, heat sinks and potential Energy as a Service business case.
Talk to our engineers about Energy as a Service Share your challenge, site data and decarbonization goals with JOA’s engineers and explore whether an Energy as a Service structure is the right fit for your process and scale.
Energy As a Service (EaaS) FAQ
Energy as a Service is typically suitable when you have at least 0.5 to 1 MW of recoverable waste heat and significant annual operating hours. It also helps if there is a clear heat sink, for example a process, steam demand, buildings, or an external heat user. A multiyear contract is usually required, plus access to data for measurement and verification. If your site is smaller or highly intermittent, a standard CAPEX project or a simpler service model can be more economical.
A Special Purpose Vehicle is a dedicated legal entity created for the project. In JOA’s Energy as a Service model, the SPV owns and finances the heat recovery and electrification assets. JOA is contracted by the SPV as the EPC and O&M provider. You sign a service contract with the SPV and pay for verified performance.
An SPV can enable possible off-balance-sheet treatment of assets, depending on your accounting position. It also ringfences technical and financial risk for both parties. Another advantage is that it can make it easier to bring in institutional investors or infrastructure funds that specialize in long-term energy assets.
Technically, equipment such as scrubbers, dust systems, heat exchangers, and heat pumps can have lifetimes of 20 to 30 years. Commercially, Energy as a Service contracts are often structured as a 10 to 20 year base term with extension options. They can also be aligned with your internal asset strategy or site strategy.
Energy as a Service payments are typically based on a pay-per-performance structure, a hybrid structure, or a mix tailored to your preferences. Pay-per-performance options can include a fee per MWh of useful heat delivered, a fee per MWh of net energy saved versus a baseline, or a fee per ton of CO₂ avoided. Hybrid models often combine a fixed monthly fee that covers base O&M, monitoring, and financing, plus a variable fee linked to verified performance. The final setup is usually tailored to your risk preferences, balance sheet objectives, and internal budgeting process.
In most cases, you continue to pay your gas and electricity bills directly to your suppliers. The Energy as a Service system reduces your consumption, and it may also enable tariff optimization or fuel switching. Your Energy as a Service payments are then linked to the avoided costs created by that reduction. This matches how many Energy as a Service offers work in the market, where the provider finances and maintains efficiency and on-site generation assets while the client keeps the utility contracts and the energy commodity risk.
Energy price risk can be managed with a few practical mechanisms. One option is indexing Energy as a Service fees to a gas or power index within minimum and maximum price bands. Another approach is agreeing on reference fuel and CO₂ prices with scheduled review points. A shared-savings formula can also work well, where both parties benefit when prices rise, while caps protect against extreme volatility. These mechanisms aim to keep payments aligned with what you would realistically save in your own CAPEX scenario, while improving transparency and predictability.
Common challenges include grid and net congestion, since increased electricity use from heat pumps can strain existing connections, especially in congested regions. Another challenge is the high upfront CAPEX for heat pumps, piping, storage, and integration. Process integration risks also matter, including temperature levels, reliability, fouling, and space constraints. There is also regulatory uncertainty around long-term policy, carbon pricing, and subsidies. Energy as a Service helps by removing the CAPEX barrier, since the investment sits with the SPV. It also places integration risk with a specialized EPC like JOA rather than with generic financiers without deep technical knowledge. It can also help you commit to decarbonization while keeping flexibility if legislation or market conditions change.
JOA focuses on design, engineering, and performance. For financing, we cooperate with specialized energy and infrastructure investors, such as Kyotherm for third-party financing for industrial decarbonization and heat projects, Adven as an energy infrastructure partner with strong presence in district and industrial energy, and Skyven for industrial heat decarbonization and Energy as a Service. We also work with other partners, including local investment partners. For many suppliers, designing, building, and operating complex process-integrated systems is not their core business. JOA fills this gap as a technology-focused EPC partner.
An ESCO, or Energy Service Company, typically offers energy performance contracts, often with shared savings and sometimes on-balance-sheet improvements. An Energy as a Service provider often goes a step further by offering off-balance-sheet financing, asset ownership, and pay-per-use models. JOA’s Energy as a Service approach combines deep process and air engineering, similar to an ESCO or EPC contractor, with a financial and ownership model tailored to industrial heat and emission control.
Energy as a Service can support EU and national energy efficiency and decarbonization requirements by structurally reducing Scope 1 and Scope 2 emissions. It can also support EED energy audits, since an Energy as a Service project can be a practical follow-up to insights from an audit, such as what is described in JOA’s Industrial Energy Audit. It can also support CSRD and broader ESG reporting by providing continuous, metered energy and emissions data in a standardized format.
Yes, many industrial heat recovery and electrification projects can be eligible for national and EU subsidies or tax incentives, for example for waste heat recovery, heat pumps, or energy efficiency. In an SPV structure, the SPV can apply for or integrate subsidies into the financing plan. This usually lowers the required performance fee, for example a lower fee per MWh or per ton of CO₂, for the same project. The exact schemes depend on the country and timing, and should be evaluated case by case.
Energy as a Service can be closely related to Clean Air as a Service. For emission control equipment such as wet scrubbers, dust collection systems, vapor extraction systems, and odor control systems, you can choose Clean Air as a Service to focus on uptime, emission limits, and workplace air quality. You can choose Energy as a Service to focus only on heat recovery and energy performance of the same or integrated assets. You can also combine both if it fits your procurement and risk strategy. In practice, emission control systems and heat recovery equipment like heat exchangers, heat storage, and heat pumps are frequently combined. In all cases, the technical backbone remains JOA’s tailor-made scrubbers, dust collection systems, heat pumps, and heat exchangers, as demonstrated in projects such as PMI Bergen op Zoom in the Netherlands and Bologna in Italy.
