In a consortium with SIJ, Metal Ravne, the local community of Ravne na Koroškem and the public research Institut Jožef Stefan, with its registered office in Slovenia, Petrol Energetika, d.o.o. set up a technical&technological platform of an innovative energy case for a transition of steel industry into circular economy with a complete energy solution called »Utilization of Waste Heat from Metallurgical Processes for District Heating of Ravne na Koroškem«. This is the first such project designed for a useful utilization of waste heat in steel industry which uses modern technology and innovative system solutions for an integration of a smart, efficient and sustainable heating system and which shows a growth potential. This will allow the industry and cities to make energy savings, to improve the quality of air and to increase the benefits for the society we live in. On the basis of circular economy, we designed a target-oriented co-operation of economy, local community and public research institute to produce new business models where end consumers are put into the centre. This innovation opens the door for steel industry and local community to a joint aim ie. a transition into efficient low-carbon energy systems which are based on involvement of natural local conditions, renewable energy sources, the use of waste heat and with respect for the principles of sustainable development.