Kyotherm: the funder of low-carbon heat and energy efficiency projects

Decarbonizing heat production and improving industrial energy performance is the ambition of Kyotherm, which has raised €96 million in less than 3 years, including more than €45 million in February 2022.

Decarbonize heat consumption

Often resulting from the combustion of fossil fuels such as gas or coal, heat is a very significant source of CO2 emissions.

For companies and individuals, this heat is found in the production of domestic hot water and the heating of buildings.

In industry, it supplies transformation processes such as the heat treatment of metals, the drying of materials, the forming of plastics, the dehydration of milk, the pasteurization of dairy products and the distillation of alcohols.

Whether it concerns the production of steel, glass, cement, paper or the chemical, pharmaceutical and agri-food sectors, all sectors are concerned.

For more than ten years, Kyotherm has been offering industrialists, SMEs and communities an innovative financing solution for their energy efficiency projects, process adaptation and transition to low-carbon heat sources.

Kyotherm finances ambitious projects based on proven technologies: biomass, solar thermal, geothermal energy but also waste heat recovery, LED relamping and installation of variable speed drives.

Kyotherm now stands out as a major player in the financing of decarbonization projects.

With a presence on 110 sites in 9 countries around the world, the projects financed by Kyotherm make it possible to avoid the emission of 73,000 tons of CO2 each year (i.e. approximately 1,500,000 tons of CO2 over their lifetime) .

Its portfolio now represents €200 million in assets under management and 130 MW of installed power.

The third-party financing solution

Thanks to third-party financing, Kyotherm's customers such as manufacturers, SMEs and local authorities do not need to mobilize their investment capacity or resort to bank loans.

Developers, energy service companies, design offices or installers can carry out more projects without mobilizing their own resources.

Indeed, Kyotherm finances all the investment costs: from feasibility studies to design-build.

The company may also bear the costs related to the operation and maintenance of the facilities.

Kyotherm allows its customers to benefit from renewable or saved MWh at a competitive price, independent of fluctuations in fossil fuel prices.

For energy efficiency projects,

Kyotherm shares with the customer the economic gains resulting from the reduction of the site's energy consumption.

Kyotherm then does not sell MWh but NWh ("Nega-Watt-Hour"), ie energy savings.

Kyotherm is able to analyze and structure the financing of projects as varied as the development of a reclaimed wood boiler project for an industrialist in France or the establishment of a large-scale partnership with a multinational in the sector. automobile for the reduction of its energy consumption in half a dozen countries.

Kyotherm recently commissioned the largest industrial solar thermal power plant in France for the Axereal Group and financed a waste heat recovery project for the California Dairies company located in California.

Making public aid for the climate more effective

France has allocated more than 100 billion euros in public aid to support renewable electricity (such as photovoltaics or wind power).

Yet the balance for the climate is almost nil because 92% of our electricity was already carbon-free and that for a wind or photovoltaic power plant built, you generally need a fossil fuel power plant nearby for the days when there is no no sun or wind.

It is not a surprise that France does not take its objectives from the Paris Agreements.

France and Europe must target subsidies more according to the greenhouse gas impact of each euro of aid.

This will result in a benefit for the planet and a rebalancing of aid in favor of renewable heat and energy efficiency projects, which have a high impact in avoided carbon.

The future President of the Republic will have to give up supporting certain projects, such as those based on hydrogen, because they have a colossal cost per ton of CO2 avoided, sometimes exceeding 500 €/ton.

Kyotherm, on the other hand, supports the European Commission's project to allocate aid based on a target price in € per ton of CO2 avoided (the "contracts for difference"), an initiative to rationalize public aid which goes in the right direction. senses.