With an eye toward achieving their global decarbonization goals, Danfoss North America recently signed a power purchase agreement with CIG Capital, a U.S.-based project financing firm, to purchase about 75 MW of solar power from a solar farm in Texas, starting in 2025. The initial agreement term is 12 years, allowing Danfoss to fully replace its annual electricity usage in North America with green energy through at least 2037.
The new agreement will provide Danfoss with green certificates, signifying that they are supplying the North American electrical grid with the full amount of green electricity needed to power all 24 factories and 36 locations in North America, and will reduce Danfoss’ carbon footprint in the region by 75%.
The next focus for Danfoss in its decarbonization journey will be on reducing and reusing energy across its North America locations, employing various Danfoss technologies, such as oil-free, variable-speed compressors and other heating and cooling solutions that support heat recovery and energy efficiency.
As part of the Science Based Targets initiative (SBTi), Danfoss is committed to become carbon neutral in its global operations (scope 1 & 2) by 2030 and says it will reduce its value chain emissions (scope 3) with 15% by 2030. This commitment is included in the targets of Danfoss’ three step-change initiatives on Decarbonization, Circularity, and Diversity, Equity & Inclusion.
Already Danfoss has seen progress in decoupling environmental impact from business growth by delivering 7% decrease in scope 1 and 2 emissions while growing 15% organically in 2022.
Additionally, the 250,000 sqm Danfoss headquarters campus site in Denmark became carbon neutral in 2022. Carbon neutrality was achieved through energy saving projects, utilization of excess heat from processes and data centers, sourcing of green energy, and offsetting residual emissions.
