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%.

“As part of our ESG goals, Danfoss has committed to achieving carbon neutrality across our global operations by 2030. This agreement to secure green energy for our North America operations will reduce our global emissions by 21%. This is not only a significant step in our journey to becoming carbon neutral, but it also demonstrates that we are serious about putting sustainability at the heart of our business,” said Soren Revsbech Dam, head of ESG and Decarbonization, Global Services Real Estate at Danfoss.

CIG Capital will be building the 6-square mile farm in the panhandle region of Texas. Groundbreaking is scheduled for November, with the farm expected to become fully operational by spring 2025. The solar farm capacity is projected to be 509 MW of solar power, of which Danfoss will utilize 15%.

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 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.

About Danfoss
Danfoss engineers solutions that increase machine productivity, reduce emissions, lower energy consumption, and enable electrification. Our solutions are used in such areas as refrigeration, air conditioning, heating, power conversion, motor control, industrial machinery, automotive, marine, and off- and on-highway equipment. We also provide solutions for renewable energy, such as solar and wind power, as well as district-energy infrastructure for cities. Our innovative engineering dates back to 1933. Danfoss is family-owned, employing more than 40,000 people, serving customers in more than 100 countries through a global footprint of 97 factories.