PAUL in ZDF magazine: Energy savings through Artificial Intelligence
Thanks to our innovative AI technology, the Neusser Bauverein has made significant progress in energy efficiency and CO2 emission reduction by integrating our solutions into their existing heating systems. This groundbreaking technology is based on adaptive hydraulic balancing, made possible by our artificial intelligence. What is adaptive hydraulic balancing? Adaptive hydraulic balancing is a process that optimizes the heating systems in buildings by regulating the flow of heating water in radiators. This process ensures that all rooms are heated evenly without wasting unnecessary energy. Traditionally, hydraulic balancing was a time-consuming and complex process that had to be manually performed regularly. The Role of Artificial Intelligence Thanks to our development efforts, hydraulic balancing is now being revolutionized by artificial intelligence. Our intelligent technology enables automated and continuous balancing. The effectiveness and functionality have already been confirmed by TÜV Rheinland. But how does it work exactly? Automation through Artificial Intelligence Our software continuously learns from the data collected by the sensors deployed. It analyzes the system’s behavior and adjusts settings in real-time to ensure optimal performance. This not only eliminates the need for manual interventions but also minimizes potential errors. Advantages of the automated solution The advantages of this automated solution are manifold. Firstly, it leads to significant energy savings as heating systems operate more efficiently and do not waste excessive energy. This directly contributes to reducing CO2 emissions and supports the Neusser Bauverein in its commitment to environmental protection and sustainability. Furthermore, the continuous adjustment by artificial intelligence ensures consistently high comfort for the residents of the buildings. Every room is optimally heated without temperature fluctuations. A partnership for a sustainable future The collaboration between PAUL Tech AG and the Neusser Bauverein demonstrates how innovative technologies can address the challenges of climate change. By combining advanced engineering and artificial intelligence, we create a win-win situation for all involved: we reduce costs, lower emissions, and simultaneously increase comfort for residents. What makes this solution particularly attractive is its seamless integration into the existing heating system. Our team of experts ensured that the technology is smoothly integrated into the existing infrastructure, without causing additional costs or disruptions for residents. This is the path to a sustainable future, where innovation and efficiency go hand in hand. Watch the video now:
The Future of Energy: An Analysis of the New Power Plant Strategy.
The introduction of the term “dark doldrums” into public discourse illustrates the challenges we face. It is undeniable that energy security must be ensured during prolonged periods of low solar and wind output. The new strategy therefore adopts a technology-neutral approach, enabling the exploration and implementation of various solutions. A key aspect of the power plant strategy is accelerating coal phase-out and avoiding fossil energy forms. These measures are crucial for achieving climate targets and reducing CO2 emissions. At the same time, efforts are made to minimize investment uncertainty by establishing clear frameworks. The strategy embraces a technology-neutral approach, allowing for the exploration and implementation of various solutions. Innovative technologies such as green hydrogen and nuclear fusion play a significant role. Green hydrogen, produced by electrolyzing water using renewable energy sources, offers enormous potential to meet energy demands in various sectors, especially in areas where direct electrification is challenging, such as heavy industry and transportation. Nuclear fusion, a technology that harnesses energy generation through the fusion of hydrogen nuclei, has the potential to provide a nearly inexhaustible and emissions-free energy source. Although commercial fusion implementation is still in its infancy, significant progress is being made in research and development, suggesting that fusion could play a significant role in the energy mix in the future. These alternative technologies demonstrate that the power plant strategy not only responds to short-term challenges but also seeks long-term solutions for sustainable energy supply in Germany. By focusing on diversification, innovation, and sustainability, it lays the foundation for a stable and future-proof energy supply. But what does this mean for the real estate industry? Another important step is improving the framework for real estate investments to facilitate the transition to decentralized heating supplies. This also considers the possibility of increased use of robust heat pumps in the real estate sector. These could help supply buildings, streets, and neighborhoods with decentralized, self-generated energy, especially through the use of solar panels on rooftops. These decentralized energy solutions not only offer the opportunity to transition to green energy more quickly but also reduce dependence on central energy supply systems and strengthen local energy autonomy. This combination not only offers opportunities for the real estate industry but can also help achieve climate neutrality by 2045 faster, especially when innovative technologies are utilized. Today, a frequently overlooked area is the enormous potential for energy savings in heating. Studies show that savings can be dramatically higher than previously assumed. Investments in efficient heating technologies can make significant progress toward a more sustainable energy mix. Finally, it is important to emphasize that the goal of reaching 80% renewable energy by 2030 is indeed achievable with innovative technologies. The power plant strategy lays the groundwork for a dynamic and future-oriented energy policy that pursues both ecological and economic goals. Overall, the adopted power plant strategy of the Traffic Light Coalition is a step in the right direction. By focusing on diversification, innovation, and sustainability, it lays the foundation for a stable and future-proof energy supply in Germany. It is time to seize these opportunities and work together for a livable future for future generations.
Value depreciation and fear of stranded assets
In the real estate industry, the term “stranded assets” refers to properties or real estate projects that lose value or become unprofitable due to various factors. This can have several reasons: Overall, the term “stranded assets” in the real estate industry refers to certain properties or real estate projects losing value or becoming unprofitable due to external factors. Climate change and the associated energy transition pose enormous challenges. Global economic and financial policy developments, as well as high energy prices, add additional difficulties. In this uncertain environment, real estate industry stakeholders face the growing risk of value losses of their assets. The situation is further exacerbated for real estate investors and owners by the recently expanded EU ESG regulations as well as increasing credit levels, which additionally complicate the financing of investment properties. Therefore, the real estate industry is faced with the question: “How can investments be permanently protected against value depreciation while simultaneously modernizing and maintaining profitability of portfolios?” PAUL provides answers amid current challenges. The energy efficiency of buildings proves to be a crucial factor in their profitability. Recently, the American consulting firm JLL found a value loss of up to 28% in energetically inefficient properties compared to their “clean counterparts.” However, while conventional renovation measures such as insulation, new windows, etc., are usually associated with immense investment costs, PAUL’s smart solution does not incur additional costs for the property operator. The trick: PAUL finances itself through a percentage share of the energy savings. The AI-driven combination of specially developed software and hardware enables significant energy savings of up to 40% and dramatically improves the energy efficiency class of buildings. For example, an old building classified as class G or H (< 200 kWh/m²a) can be upgraded to class E with PAUL – a quantum leap for the building stock. Equipped with smart technology, PAUL not only enables its customers to digitize building management but also offers a significant increase in the value of the investment property and additional cost savings, quickly amounting to tens of thousands of euros per building. A convincing solution. PAUL is aimed at real estate investors, private and municipal housing companies, as well as companies with portfolios for which the real estate sector is not the primary core business. Our solutions work for buildings with 6 residential units as well as for portfolios with tens of thousands of residential units and for properties in all asset classes such as commercial, office, hotel, hospitals, and even ships. PAUL, with its currently unique complete solution, is not only an available response to current challenges but also a measure with a future due to forward-looking planning and continuous optimization. Artificial intelligence promises continuously optimized heating systems, regardless of changes in tenant structure or building conditions. In a time of unpredictability, where stranded assets pose a growing threat to investors, PAUL is the solution that not only reduces CO2 emissions but also sustainably increases the profitability of real estate.
PAUL Performance achieves TÜV Rheinland Certification for hydronic balancing
In this interview, Timo Jäger, Head of Technical Engineering, who accompanied the certification process, explains the importance of hydronic balancing in buildings and why PAUL Performance is a significant breakthrough. PAUL Tech offers a new solution for optimizing building energy efficiency to minimize CO2 emissions. Why the focus on hydronic balancing? The building sector is a significant consumer of energy and producer of the associated CO2 emissions. Central to this issue is the energy required for heating and hot water. Inefficiencies in this area are often caused by problems, such as oversized, defective or poorly maintained boilers, hot water storage tanks and pumps. An additional challenge is inadequate hydraulic balancing of the system or subsystem. When not correctly executed, this can result in less-than-ideal heat distribution, which has several adverse effects: it increases overall energy consumption, causes inconsistent heating across different rooms and places an extra burden on heating components. These issues lead to energy wastage and can diminish the longevity of heating systems, creating unnecessary costs. By addressing and refining these aspects, we can significantly lower CO2 emissions and enhance energy efficiency in the building sector. What is hydronic balancing, and why does it need to be carried out? The VdZ describes hydronic balancing as ‘adjusting the volume flows in various subsystems to align with the planned target volume flows.’ Essentially, this process ensures the precise distribution of water and energy, to every part of the system, ensuring that the correct volume is available at each location whenever needed. As water flows through a pipe system, it encounters resistance and subsequent pressure loss, primarily due to friction on the pipe walls and various fittings within the pipe installation. The distance a consumer is from the heat source or pump plays a significant role; the greater the distance, the higher the resistance created by the existing pipe network. In an unbalanced system, water naturally follows the path of least resistance, leading to the most distant consumers receiving an inadequate heating water supply. In the unregulated state, water distribution follows the hydraulic principle where the largest water volume flows through the shortest heating pipes offering the least resistance. The longest pipes receive the least water. In such systems, consumers with hydraulically favored rising pipes experience an oversupply due to high differential pressure. This causes the water to move too rapidly across the heat exchange surface, impeding efficient heat transfer to the surrounding air. Consequently, the return temperature in these favorably situated lines is significantly high, often showing a temperature difference of less than 10 Kelvin and sometimes even below 5 Kelvin. This high differential pressure can also lead to noticeable flow noise at the radiator valves due to the high velocities. Conversely, hydraulically disadvantageous pipes are undersupplied because of pressure loss in the pipes, which prevents the necessary water flow. This results in insufficient volume flow, and individual consumers receive a poor heating performance. Why is PAUL Performance the best solution for carrying out hydronic balancing? Our unique blend of custom-built IoT-capable hardware and advanced artificial intelligence (AI) ensures that the heating and hot water system operates within an optimal and highly efficient range. The heating network continuously adjusts to match the real-time needs of users. PAUL consistently provides adaptive hydronic balancing, digitizes heat distribution within the building and substantially lowers energy consumption. PAUL detects and rectifies imbalances in the system, thereby tackling energy efficiency problems. PAUL has proven its capability to sustain the performance expectations of the system and its subcomponents, enhancing the energy efficiency of the heating process. This leads to optimized energy efficiency, resulting in significant savings in energy, emissions and costs. Many customers require proof that they have carried out hydronic balancing in accordance with the VdZ. Can PAUL provide such proof? Yes, PAUL can provide such proof. Our control method is TÜV-certified and recognized as being at least equivalent to hydronic balancing according to methods A and B of the VdZ. The PAUL Performance regulation is therefore regarded as an equivalent procedure in accordance with GEG § 60c (3). Additionally, as an authorized specialist company, we can confirm this with a signature from our experts. Would you like to know what advantages you can achieve with PAUL Performance? Then read on here. Timo Jäger has been at PAUL Tech AG since 2021 and is Head of Technical Engineering. He completed his studies in Bingen and Mainz, specializing in supply engineering and technical building management. Before joining PAUL, he held positions at LUWOGE Consult and BALCK+Partner. Timo on LinkedIn
Neusser Bauverein and PAUL Tech are moving forward together
For this purpose, the 245 heating systems are currently being equipped with new, intelligent valves and sensors. These record data and send it to a master computer, which then analyzes it with the tenants’ consumption patterns, weather data and the building’s orientation. The artificial intelligence (AI) then ensures that the heating and hot water systems always run in the optimum and highly efficient operating window. The tenant does not have to contribute to the costs of installing the new heating technology. “I am very pleased with Neusser Bauverein’s commitment. This is not only something that is being done to protect the climate, but above all, it will save 22,000 tenants money on their second rent, the heating costs,” says Heinrich Thiel, Chairman of the Supervisory Board. Artificial intelligence is used to permanently adjust the heating network to the actual requirements of the connected tenants. “This permanent hydraulic balancing not only ensures optimum heat distribution in the building, but also significantly reduces energy requirements. At least 15 percent energy can be saved in this way. This also means a reduction of 860 tons of CO2 per year,” says Dirk Reimann, CEO of Neusser Bauverein. The artificial intelligence processes the data and creates a dynamic building and usage profile. It recognizes potential savings and regulates the valves. The AI learns independently, constantly optimizes and manages to process trillions of pieces of data. The new technology is already being used in 170 heating systems. “First the AI has to be trained. But energy is already being saved: 18 percent at Hoher Weg, for example. The AI even predicts potential savings of up to 30 percent,” says authorized signatory Niki Lüdtke, Head of Portfolio Management. The installations will continue in the coming months. “So far, sensors have been installed in 70 percent of our heating systems. By September, every heating pipe that leads into the apartment will also be installed,” says Niki Lüdtke. A total of 4,300 apartments will be operated with the new technology in future. www.neusserbauverein.de/paul
HANNOVER Finanz acquires stake in PAUL Tech AG
This is HF’s second investment in the fast-growing market for innovative solutions and technologies to mitigate climate change, following its investment in First Climate. PAUL will use the newly provided funds in particular for investments and further growth. With its core product PAUL Performance, the company has developed a system that can reduce energy consumption and thus energy costs and CO2 taxes in buildings by up to 40 percent through permanent adaptive hydraulic balancing in real time. This also makes it possible to install heat pumps. The system, which is controlled by intelligent software using AI, enables owners of buildings of all asset classes to improve their energy efficiency class and thus the value of their property and obtain better financing conditions. The hardware is installed directly in the building’s central heating system as part of an “Equipment as a Service” (EaaS) model and is provided for a fee. PAUL’s customers include homeowners’ associations, housing associations, real estate investors and commercial enterprises. “The heating transition in Germany is one of the key challenges to achieving the climate targets and the need for investment in retrofitting existing buildings is huge. With its high-tech solutions, PAUL solves numerous challenges in the housing industry without additional costs for tenants and landlords. PAUL Performance shows that CO2 neutrality can be achieved through technology and not just by doing without. We are therefore very pleased to be able to support the company in its future plans and, due to the high demand, expect the business to grow strongly in the coming years,” says Goetz Hertz-Eichenrode, CEO of HANNOVER Finanz. “With this second investment in the Climate Tech segment, we are also driving forward the further development of our portfolio.” “As an energy platform, we develop innovative solutions and technologies to drive the energy transformation of the real estate market. PAUL’s goal is to achieve CO2 neutrality for all existing buildings, especially those 10 years and older, in a cost-efficient manner before 2045. In order to successfully pursue our growth course even faster, we need sufficient growth capital. However, the financing we have now received not only provides us with capital, but also with a strong partner in HANNOVER Finanz, whose network and expertise will help us move forward,” says Sascha Müller, founder and CEO of PAUL. The Hannover Finanz deal team included: Goetz Hertz-Eichenrode, Mirco Thelen, Dr. Christina Silberberger, Wolfgang Bartels The team worked together with the following advisors during the implementation: Commercial DD: Roland Berger, Technical DD: Invensity, Legal-Financial-Tax DD: Deloitte Hannover Press contactKatrin SlopiankaCorporate Communications0511 / 28 007-25slopianka@hannoverfinanz.de About the HANNOVER Finanz GroupFounded in 1979, HANNOVER Finanz has more than 40 years of experience as an equity capital partner for SMEs. The private equity house with headquarters in Hanover and an office in Vienna is one of the first venture capital providers for the DACH region and is an owner-managed investment company in its second generation. Well-known companies such as Fielmann, Rossmann and AIXTRON have realized their growth with equity capital from HANNOVER Finanz and taken advantage of its entrepreneurial support. Since its foundation, the equity capital partner for SMEs has completed over 250 projects and invested more than two billion euros. The main reasons for investments are growth financing and succession planning for solid medium-sized companies with annual sales of 20 million euros or more. In addition to majority shareholdings, the HANNOVER Finanz Group is one of the few investment companies in Germany that also acquires minority shareholdings. The portfolio currently includes 34 companies.www.hannoverfinanz.de
Solas Sustainable Energy Fund ICAV (SSEF) and PAUL Tech close financing deal
Solas Sustainable Energy Fund ICAV (SSEF), which is advised by Solas Capital AG, based in Zurich and Dublin, has signed a framework agreement with PAUL Tech AG (PAUL Tech) for registered bonds with an initial value of EUR 20 million to be issued in four tranches. The first two bonds in the amount of EUR 10 million have already been issued. The funding will go towards installing PAUL Tech’s PAUL Performance systems. The PAUL Performance systems use software-controlled hydraulic balancing to optimize water volume flow in heating systems in apartment buildings. The solution improves the energy values of the properties and leads to an average reduction in energy consumption of 20-40%. It helps to reduce the pressure of the energy crisis at an individual level by lowering costs for tenants. Sven Degens, Partner at Solas Capital AG: “This partnership is an example of Solas’ commitment to driving change in the heating sector in Germany. We are delighted to be able to support PAUL Tech by improving the accessibility of their cutting-edge heating efficiency technology, which will have a tangible impact on household budgets across the country.” Sebastian Carneiro, CEO of Solas Capital AG: “SSEF is committed to partnering with ESCOs (Energy Service Companies) that offer a broad range of energy efficiency technologies within the EU to provide our investors with a diversified investment portfolio with stable cash flows.” Sascha Müller, founder and CEO of PAUL Tech: “We are honored to receive this substantial investment from our committed green investor Solas Capital. We also see it as confirmation of the confidence in our position as a HaaS provider, which we will revolutionize with our new PAUL Net Zero solution.” With PAUL, existing buildings can significantly save energy and CO2 emissions. For this purpose, the heating and hot water system is digitalized centrally in the basement. The integrated sensors and actuators – motorized valves – automatically carry out adaptive hydronic balancing: The big issue for the housing industry, which is obliged by the Energy Saving Ordinance to carry out hydronic balancing regularly. Doing this conventionally within the required specifications presents the industry with immense challenges. PAUL performs hydraulic balancing digitally and continuously optimizes it with AI. This pioneering PAUL technology ensures hydronic balancing and achieves energy savings by making the use of heat pumps in existing buildings possible. For more information, please visit: www.solas.capital
WBG Fürth relies on PAUL Tech
Fürth’s member of the Bundestag Carsten Träger (SPD), also the environmental policy spokesman for the SPD parliamentary group in the Bundestag, had drawn the mayor’s attention to PAUL at WBG Fürth. The housing industry, politicians and the media can now see onsite how PAUL can make significant energy savings in existing buildings without any investment. Rolf Perlhofer, Managing Director of WBG Fürth, opened his cellar and reported on his successful experience with PAUL. Perlhofer’s WBG Fürth is regarded as a pioneer in the housing industry. He has been in talks with PAUL since 2022 and has now equipped the first 500 units with the system as a pilot project. Perlhoher enthusiastically points to an example, a property with 29% energy savings in the first analysis period – just in time for winter. Savings of up to 20% are expected. Member of the Bundestag Carsten Träger attests to a win-win-win situation: “PAUL is a great for everyone involved. Energy savings of up to 30% are possible without any upfront investment – particularly where we find it hardest, namely in rental apartments in existing buildings. PAUL offers a simple but brilliant solution that needs to be spread. More than half of the people in Germany rent. PAUL offers enormous savings and climate protection potential for all housing providers and tenants.” Head of WBG-Fürth Rolf Perlhofer: “We were enthusiastic about the technology from the start. Solutions for existing properties that have already been modernized and have central heating systems are important. PAUL saves energy in existing buildings in a minimally invasive and cost-neutral way. We are testing this with 500 apartments and are enthusiastic after the initial analyses. After the final evaluations, we will equip our entire portfolio with PAUL.” Maiko Dufner from PAUL Tech: “Germany’s cities are looking to Fürth. We need more pioneers like Lord Mayor Dr. Jung and WBG Managing Director Perlhofer because then Germany will take a significant step forward in the energy transition. The private housing industry has been using PAUL successfully for a long time. With WBG Fürth, PAUL is now also available in the public housing sector – that makes us proud. The PAUL approach is to regulate the grid quickly and cleanly in the basement without losing comfort. We also comply with the GEG and automatically perform adaptive hydronic balancing. This means that PAUL optimizes the pipe networks and permanently adjusts the heating network to the actual requirements of the connected users. It’s easy to save at least 20% of the existing energy without any investment.”
Replenishment for PAUL production
The supplies arrived in time for the installation projects before the heating season. This requires a high degree of flexibility in our teams, which we are very proud of. We develop and manufacture our hardware and work exclusively with European suppliers. Supply chain independence and high-quality standards are crucial to us. And as you can see, the suppliers also have fun with PAUL. Image source: Paul Tech AG
PAUL as a guest at the IHK Frankfurt am Main’s Real Estate Industry Day
The entire event was held under the umbrella of current topics such as ESG, energy efficiency and the heat pump campaign and focused on sustainability aspects such as ESG regulations. Sustainability aspects such as ESG regulations, measures to increase energy efficiency and the circular economy are becoming increasingly crucial for (real estate) companies, property managers and project developers. Read here how PAUL Tech can help your company: PAUL services
