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Niels B. Christiansen

While others are chasing windmills

November 25, 2009
By Niels Bjørn Christiansen, Danfoss President & CEO

If I say “solutions to the global climate challenge”, what images appear in your mind? If you see wind mills, I cannot blame you, because they have been at the centre of media attention more than anything else.
But wouldn’t it be more appropriate if instead we all had a clear image of energy efficiency? The simplest efficiency improvements, in general, do not require as much investment as wind mills and a much faster result is realized on the economic and CO2 emission bottom lines, thereby giving room for long-term investments in cleaner energy sources.

But, what does energy efficiency actually look like? Maybe you get images of the moralizing information campaigns of the 1980s? Or perhaps the only thing you see before you is a question mark? However, if you take a look at a bank note, you’ll see what energy efficiency really looks like!

Efficiency is not only about our personal moral conduct – remembering to turn off lights and boiling potatoes until done, using the after-heat. No, saving energy is very much a matter for society, where the current focus on the climate has a bearing on the economy – and ultimately – our welfare. And if we immediately begin to apply the most efficient technology, the efficiency potential within key areas such as the building, industrial and retail sectors is huge.
Energy efficiency comes first
Well-proven efficiency solutions are already at hand. At Danfoss, we have produced efficient solutions over the past 75 years. We have continuously developed new ones and scrapped the old. But, our starting point has always been to obtain a high technical performance using as few resources as possible. One example is the radiator thermostat: the installation of a thermostatic control on a single radiator results in average annual savings of energy equivalent to 80 litres of oil and yet, there are still hundreds of millions of radiators all over the world without thermostats – in the EU alone, there are more than 500 million.

Why not take advantage of these simple technology efficiency improvements in society and industries, before investing in long-term new development projects? This is how we balance things at Danfoss.

It’s good to have ideals, and wind mills and other sustainable energy sources are necessary and relevant both now and in the future. However, the road to the ideal goal must go hand in hand with common sense and that means the realistic administration of funds and resources. This is when energy efficiency comes first.
Comments
jens krogh December 1, 2009
Dear Niels Bjorn,

Danfoss has execellent energy saving products and know how to their customers how come they dont implement their own energy saving knowledge/know how in their own factories like Danfoss Nordborg when savings has been shown in other plants like carlsberg, danisco and Flensburg to have significant savings up to 25 % of utility consumption reduction, Why not take your own medicin to save the environment

br. Jens
Niels B. Christiansen December 2, 2009
Dear Jens
As you may know we have formulated a climate strategy for Danfoss, aimed at reducing Danfoss’ total carbon emissions with 25 % by 2025 compared to 2007 level. This plan is so far on track, even though we have had many other challenges to address in Danfoss in the past year. Until now we have been running efficiency pilots in selected factories with great results. For the rest of Danfoss the plan is to continue the existing focus on process improvements that we have had through our Lean program for the past five years. Once we have gained the full potential of that – expected within 2-3 years – we will gradually start to shift technologies in order to meet our 2025 objectives. This will of course both involve use of our own technical “medicine”, but hopefully also challenge us to develop new ideas, which will not only benefit ourselves, but also our customers.

Niels
Jay Herbert December 7, 2009
Leading by example is certainly important! At Danfoss Scroll Technologies Engineering Management and the DPP team worked together to significantly lower the facilities electrical usage. Changes in types of lighting, lights out for off shifts in non-operational areas, even simple things like putting orange "lights out" decals next to office light switches made a very big impact. It is great to see managers lights turned off when they are not in their offices. These types of positive examples will lead to our employees taking the energy conservation vision home with them..... which will magify the savings.
Erik Roels December 10, 2009
Danfoss has an excellent service with daily deliveries from CDC towards customers in Europe...but would it not be enough to limit the transport towards customers to 1 à 2 times a week in order to reduce the C02 emission by transport ? So it's not only C02 emission by production we can look at, it's also the C02 emission in the sales & logistic process afterwards.
D.ANNA SWAMY December 15, 2009
With my experience of Danfoss VLT products, they are trying to run the machines with min. power, which no other drive able to do.
Jack December 17, 2009
Dear Niels,
you are right , we need to improve the efficiency as well as using the sustainable energy, like wind energy!

in your speech, you mentioned that there is 500 million radiators didn't use the new technology of Danfoss, and this new technology will not only reduce the carbon emissions but also economic, which can save equivalent energy of 80 liters of oil. but i think why there is so many radiators didn't use the radiator thermostat, i think there is several possible reasons:firstly,the end user may don't know the advantage of the radiator thermostat, even if they know , they don't konw where to buy it or how to install it by themselves. secondly, the OEMs which producing the radiators don't have clear image of this new technology. or they can't balance the new thchnology and the cost and hesitate to use it . third, the government or the industrial association is not familiar with this technology and don't have the drive to popularize it . all in all , the technoly is not successfully commercialized. so Danfoss should spread the idea, technology, and advantage to the end user, raidator producer, and the industry association and improve the needed resources like after-service, training, etc to popularize this tech. hope i can see this fantastic technology popularized in china soon.
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