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 Honeywell 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 optimisation 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 optimise a building’s energy use and carbon emissions. Building, Design & Construction Magazine | The Choice of Industry Professionals 

The UK is making progress in decarbonising its economy. In 2022 total emissions fell by 3.4%, and the nation is currently only 19% short of the 2030 target of a 68% reduction of 1990 levels. To achieve the UK’s 2050 net zero obligation, large parts of the economy still require further decarbonisation, especially commercial and domestic heating. According to the Climate Change Committee (CCC) parliamentary report, half of current heat demand must be low carbon by 2035 to reach the 2050 target. Like many sectors, the transition to low carbon is happening through electrification. Gas boilers are already being phased out, and in 2025 the Future Homes Standard will come into force, effectively shutting them out of new build homes. This will make low carbon, sustainable heating a necessity for installers. Electric heating is a future-proof, low carbon solution that will survive the further significant changes in energy mix, market reform, and greater grid flexibility that are bound to come. Energy mix and market reforms demand future-proof electric heating More renewable energy is coming online across the UK. In 2022 40% of electricity was produced from renewable sources. And in May 2022, 73% of the grid’s power came from renewables. This means the overall share of electric energy in the UK is becoming greener. As this trend continues, commercial and residential heating must be prepared to adopt more electric heating. The increase of renewables in the energy mix isn’t the only significant change that will drive the transition to low carbon electric heating methods. The UK government announced and concluded its Review of Electricity Market Arrangements (REMA) last year. The review, touted as the “biggest electricity market reform in a generation,” aims to enhance energy security and cut electricity costs as the UK moves to a cleaner energy system. One of the biggest consequences of the review will be the decoupling of the gas and electricity markets. Currently, the highest gas prices determine the wholesale price of electricity. The consequence is much higher electricity prices, including renewable electricity, which should be significantly cheaper. When the decoupling reforms are enacted, the price of residential and commercial electricity should drop significantly, especially as the renewables mix continues to increase past 40%. This would make electrical heating one of the least carbon intensive forms of heating, as well as the least expensive. Making the most of this by deploying electrical heating is important to ensuring future-proof heating in commercial and residential buildings. Direct electric is best fit for a more flexible grid and the varied UK building stock Future-proofing also requires the right product for the right property. Heat pumps and direct electric are the two most popular forms of low carbon electric heating and the UK’s varied building stock requires both. New homes built after 2025 and spacious, two-storey buildings are suitable for heat pump installation. However, large swathes of the UK building stock are made up of smaller, older, and multi-storey buildings where heat pump installation is not practical. And as former commercial buildings are transformed into residential flats in the wake of the shift to hybrid work, retrofitting increasingly involves smaller heating solutions for multi-storey properties. Research carried out by electrical heating company, ThermoSphere, shows 54% of construction professionals reported that the best low carbon heating solution for smaller homes, apartments, and multi-storey buildings is direct electric heating because it does not require external equipment and has a minimal footprint. The potential REMA reforms will also lead to “increases [in] the participation of low carbon flexibility technologies”, including more electricity storage and wider use of demand side response (DSR). UK homes have recently experienced this with the limited roll out of the National Grid ESO Demand Flexibility Scheme, a residential DSR technology ending in March 2023. As demand side activity increases, giving domestic and commercial properties the ability to receive financial rewards for temporarily reducing their electricity consumption, buildings with low carbon electric heating have the potential to receive the most benefit as they have the most capacity to shut off. In addition, because DSR requires reducing consumption by turning off electrical systems, buildings with direct electric heating can manage this with greater control as direct electric heating does not operate on a central heating system, unlike gas or air-to-water or ground-source heat pumps. This allows for more localised, zone-specific heating. When turning off is required, buildings that don’t use centralised heating systems can choose to shut down specific areas and keep others heated. What’s more, with new underfloor heating products, on average it only takes approximately 20-30 minutes to heat a room, meaning temperature and comfort levels can be quickly restored after a shut off. As the UK continues to further electrify in order to decarbonise, electric residential and commercial heating will be able to endure future changes in energy mixes and market reform. Smaller, older, and multi-storey buildings will also benefit from direct electric heating as the grid becomes more flexible. www.thermosphere.com Building, Design & Construction Magazine | The Choice of Industry Professionals