PRODUCT SERVICE SYSTEMS FOR BOILERS; TOWARDS A CIRCULAR ECONOMY

Abstract

Every year around 375.000 boilers are being discarded and end up as waste in the Netherlands. This is not in line with a circular economy. Product Service System Business Models (PSS BM) have great potential to increase the circularity performance in a business, which can reduce the impact on the environment. The heating sector in the Netherlands has potential to become more circular through servitization. This thesis aims to answer the following research question: “Which PSS BM for boilers could be implemented to enhance the transition towards a circular economy?” This thesis uses a case study approach, semi-structured interviews and a Multi-Criteria Analysis (MCA) to answer the main research question. The case study provides in-depth information on the current BM and alternative PSS BM’s for boilers. The semi-structured interviews present the needed insights from the perspective of multiple actors relevant in the current BM, whilst the MCA allows for the transformation and comparison of the collected data to alternative scenarios. The case study is Energiewacht, a company that sells boilers and provides product-related services. The analysis shows that the current BM of Energiewacht focuses on the product while services are an addition. Three alternative PSS BM types are identified. In every alternative, the level of service increased. The analysis shows that an increased level of service results in an increased level of circularity strategies that are present in the BM. The current BM and alternative BM’s are compared based on a set of values that are obtained from the interviews. These values indicate what actors perceive as important to be present in a BM. The product lease BM and the functional result BM scored the highest for these values. Additionally, the circularity performance of each BM is calculated, which shows that the functional result BM has the highest circularity potential. Thus, the functional result BM can be implemented to enhance the circular economy for boilers. To increase circularity performance in the heating sector, this thesis recommends trialing the implementation of the functional result BM for boilers.