Besides optimal technology for solar process heating solutions, our clients also require suitable financing packages. To meet the later, Industrial Solar has signed a Memorandum of Understanding with Kyotherm to jointly offer industrial companies solar process heat as a service – without capital investment requirements for the end users.
The International Renewable Energy Agency estimates the required investment for industrial decarbonization to be around 5 trillion US$ until 2050. A substantial share will accrue for solar process heating. Often, feasible projects are not realized as access to capital is constrained or industrial companies lack the capacities to price risks appropriately. Accordingly, suitable financing mechanisms are as relevant for industrial decarbonization as technology – for solar process heat this means especially Heat Purchase Agreements which overcome the financing challenges for end users while generating relatively stable returns for investors. Against this background, the cooperation between Industrial Solar and Kyotherm is a major milestone.
Kyotherm is an investment company that specializes in the third-party financing of renewable heat production projects and energy efficiency projects. Kyotherm partners with the sector's project developers (engineering companies, EPC contractors etc.) and finances their projects with an optimized capital cost. Having its headquarters in France, Kyotherm has already financed numerous projects in France but also in other countries, notably outside of Europe.
"Due to its long track record, proven technology and international outreach, Industrial Solar is a key player in the market and we foresee a fruitful cooperation that will lower the cost of solar heat" states Arnaud Susplugas, CEO of Kyotherm. For Christian Zahler, Managing Director of Industrial Solar GmbH, "Kyotherm is the ideal financing partner for us as they have a key focus on thermal projects, international experience and committed investors."
The companies already started to develop joint projects and expect a strong growth in the coming years.