International. Danfoss ' North American subsidiary announced the signing of a power purchase agreement with CIG Capital, a U.S.-based project finance company, to acquire, starting in 2025, about 75MW of solar power from a solar farm in Texas.
The initial term of the agreement is 12 years, allowing Danfoss to fully replace its annual electricity use in North America with green energy until at least 2037.
The new agreement will give Danfoss green certificates, meaning they are supplying the North American power grid with the full amount of green electricity needed to power their 24 factories and 36 locations in the region while reducing Danfoss' carbon footprint by 75%.
Soren Revsbech Dam, Head of ESG, Decarbonization and Global Real Estate Services, at Danfoss said: "As part of our ESG goals, Danfoss has committed to achieving carbon neutrality across all our global operations by 2030. This agreement secures green energy in North American operations by lowering global emissions by 21%. This is not only a significant step in our journey to become carbon neutral, but it also demonstrates that we are serious about sustainability and put it at the heart of our business."
CIG Capital will build the six-square-mile farm in the Panhandle area of Texas. Opening is scheduled for November 2023, and the farm will be fully operational by spring 2025. The solar farm's capacity is projected to be 509MW of solar power, of which Danfoss will use 15 percent.
Rick Sporrer, President of Danfoss North America, said, "We are committed to playing a leading role in the energy transition. Achieving our ESG goals and living up to our commitment to combat climate change means developing innovative solutions."
Danfoss has already seen progress in decoupling environmental impact from business growth by achieving a 7% reduction in scope 1 and 2 emissions, while growing 15% organically by 2022.
Danfoss' 250,000-square-meter headquarters in Denmark became carbon neutral in 2022. Carbon neutrality was achieved through energy-saving projects, utilization of excess heat from processes and data centers, green energy sourcing and offsetting residual emissions.
