Danfoss Commits to Solar Energy for North American Operations by 2025
Global powerhouse in climate and energy technologies, Danfoss, has recently unveiled an ambitious plan to energise all of its North American facilities exclusively with solar power by 2025. This move cements Danfoss as a leader in sustainable innovation in the industrial sector.
Danfoss has entered into a power purchase agreement (PPA) with CIG Capital Advisors, a project financing firm based in the U.S. The agreement outlines the purchase of 75 megawatts (MW) of solar power originating from a new solar farm situated in the Texas Panhandle. The farm, projected to be operational by 2025, will produce enough electricity to power Danfoss’ entire North American operation, encompassing 24 factories and 36 locations.
This significant investment into solar energy is a cornerstone of Danfoss’s broader sustainability strategy. The company has made a firm commitment to curtail their greenhouse gas emissions by 40% by 2030. With a track record of substantial progress in emission reduction, the solar energy initiative will significantly bolster Danfoss’s ongoing efforts to reach these lofty goals.
Kim Fausing, CEO of Danfoss, expressed the company’s unwavering commitment to combat climate change, stating, “This solar power project is a major leap forward in our sustainability journey, and it will expedite our mission to reduce our emissions and create a cleaner future.”
Furthermore, the solar power project is expected to be a significant job creator, providing hundreds of employment opportunities during its construction and operation phases. It will also facilitate a shift away from fossil fuel dependence in the region.
John Hearne, CEO of CIG Capital Advisors, shares the excitement surrounding the partnership with Danfoss on this crucial initiative, stating, “This solar farm will not only help Danfoss achieve its sustainability goals but also stimulate job creation and bolster the local economy.”
So, how will Danfoss Power its North American Facilities?
The strategy involves a combination of on-site and off-site solar projects. Solar panels will be installed on the roofs of Danfoss factories and buildings, with a total of 1.5 million square feet of roof space slated for solar panel installation. This initiative alone is expected to generate approximately 20% of the electricity required for Danfoss’s North American operations.
Simultaneously, Danfoss will purchase solar power from the off-site solar farm in the Texas Panhandle, which will be constructed and operated by CIG Capital Advisors. Upon completion, the farm’s capacity will stand at 75 megawatts (MW), providing sufficient electricity to power the entirety of Danfoss’s North American operations.
What are the Benefits of this Initiative?
The benefits that this initiative is set to deliver are manifold. Firstly, it will substantially reduce greenhouse gas emissions, thereby helping Danfoss to meet its ambitious emission reduction target. Secondly, it will promote energy security by decreasing the region’s reliance on fossil fuels.
On the economic front, the project is poised to stimulate job creation during both the construction and operational phases of the solar farm, thereby contributing to local economic growth. Moreover, it will generate tax revenue, providing an additional boost to the local economy.
From a broader perspective, this move by Danfoss represents a significant stride towards the promotion of renewable energy in the industrial sector. It highlights the feasibility of powering large-scale business operations with renewable energy and provides a benchmark for other businesses contemplating a similar transition.
Danfoss’s commitment to solar energy also sends a powerful message to the world about the role of businesses in combating climate change. By showing that it’s possible for a multinational company to operate sustainably, Danfoss is setting an example that others can follow. As we collectively strive to create a more sustainable future for our planet, it’s initiatives like these that will light the way.
