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Danfoss: A Pioneer in Decarbonisation and Renewable Energy

Danfoss is a Danish multinational corporation that specializes in manufacturing and supplying heating, ventilation, and air conditioning (HVAC) systems, refrigeration and air conditioning, and other building products. The company was founded in 1933 by Mads Clausen in Nordborg, Denmark, and has since grown to become a global leader in the HVAC industry. With a presence in more than 100 countries and over 28,000 employees, Danfoss is committed to providing innovative and sustainable solutions that help customers reduce their carbon footprint and contribute to a more sustainable future.

Decarbonisation and Corporate Energy

Danfoss is a company that is deeply committed to decarbonisation and reducing its carbon footprint. The company has set ambitious targets to reduce its carbon emissions by 50% by 2030 and become carbon-neutral by 2030. To achieve this goal, Danfoss has implemented a number of measures to reduce its energy consumption and increase the use of renewable energy.

One of the key initiatives that Danfoss has undertaken to reduce its carbon footprint is the implementation of energy-efficient technologies in its manufacturing facilities. The company has invested heavily in energy-efficient lighting, heating, and cooling systems, as well as in the optimization of its production processes. This has resulted in significant energy savings and a reduction in carbon emissions.

Another important aspect of Danfoss's commitment to decarbonisation is its focus on renewable energy. The company has set a target to source 50% of its energy from renewable sources by 2025. To achieve this goal, Danfoss has invested in a number of renewable energy projects, including wind and solar power. The company has also implemented a corporate power purchase agreement (PPA) strategy, which involves purchasing renewable energy directly from producers. This allows Danfoss to reduce its carbon footprint while also supporting the growth of the renewable energy industry.

Corporate PPA and Renewable Energy

Danfoss is a pioneer in the use of corporate PPAs to support the growth of renewable energy. A corporate PPA is a long-term agreement between a company and a renewable energy producer, whereby the company agrees to purchase a certain amount of renewable energy at a fixed price over a specified period of time. This provides the renewable energy producer with a stable source of revenue, which in turn helps to support the growth of the renewable energy industry.

Danfoss has implemented a number of corporate PPAs to support its goal of sourcing 50% of its energy from renewable sources by 2025. One of the most significant of these is a 20-year PPA with the Kriegers Flak offshore wind farm in Denmark. Under this agreement, Danfoss will purchase 70% of the wind farm's output, which will provide the company with a stable source of renewable energy for the next 20 years. This will help Danfoss to reduce its carbon footprint and contribute to the growth of the renewable energy industry in Denmark.

Renewable Energy and HVAC Building Products

Renewable energy is a key driver of innovation in the HVAC building products sector, and Danfoss is at the forefront of this trend. The company has developed a range of innovative products that are designed to work seamlessly with renewable energy systems, including heat pumps, variable speed drives, and energy-efficient refrigeration systems.

One of the most innovative products that Danfoss has developed in this area is its heat pump technology. Heat pumps are a highly efficient way of heating and cooling buildings, and they work particularly well when combined with renewable energy sources such as solar power. Danfoss has developed a range of heat pumps that are specifically designed to work with solar power systems, which can help to reduce energy consumption and carbon emissions in buildings.

Another important area of innovation for Danfoss is variable speed drives. These are devices that are used to control the speed of electric motors, which are used in a wide range of HVAC building products. By using variable speed drives, it is possible to reduce energy consumption and improve the efficiency of these products. Danfoss has developed a range of variable speed drives that are specifically designed to work with renewable energy systems, which can help to further reduce energy consumption and carbon emissions.

Conclusion

Danfoss is a company that is deeply committed to decarbonisation and reducing its carbon footprint. The company has set ambitious targets to reduce its carbon emissions by 50% by 2030 and become carbon-neutral by 2030. To achieve this goal, Danfoss has implemented a number of measures to reduce its energy consumption and increase the use of renewable energy. The company has also pioneered the use of corporate PPAs to support the growth of renewable energy, and has developed a range of innovative products that are designed to work seamlessly with renewable energy systems. Danfoss is a true pioneer in the HVAC building products sector, and is leading the way in the transition to a more sustainable future.

✓ Current offtaker under Corporate PPA's
✓ Re100 member
✓ Science Based Targets member