The agreement, now in effect, cuts Danfoss’ US carbon footprint by 75 percent.
A power purchase agreement covering all Danfoss’ US facilities with renewable energy from a Texas solar farm is now effective. Danfoss will buy 185,000 MWh annually as part of the agreement which runs through 2032.
The agreement cuts Danfoss’ U.S. carbon footprint by 75 percent – equal to 66,000 tons of CO2 per year – and our global Scope 1 & 2 emissions by 21 percent.
Danfoss signed the agreement with Axpo, a global energy generation, supply, and trading company with a strong international presence and a growing footprint in the U.S. market. The agreement will provide Danfoss with green certificates, confirming that we are offsetting our electricity consumption by adding an equivalent amount of 100 percent renewable energy to the US grid.
The 185,000 MWh per year, which Danfoss buys via its power purchase agreement, is equivalent to the annual usage of roughly 17,600 US households.
Axpo Senior Originator Luke Tosheff said: "We’re thrilled to collaborate with Danfoss, leveraging our expertise to deliver clean and reliable power that supports their carbon-neutral ambitions. At Axpo, we’re committed to supporting the transition to a sustainable energy future, working in partnership with our clients in the United States, where our presence continues to grow, and worldwide."
The electricity was initially purchased by Axpo under a long-term PPA with Shakes Solar, a 2.8-square-mile solar farm located in Dimmit County, Texas. Shakes Solar is owned by Cypress Creek Renewables, a leading American clean energy company that develops, owns, and operates solar and storage projects across the United States.
This is a significant milestone in our efforts to decarbonize our own operations no later than 2030. The solar facility produces the full amount of green electricity needed to power all our 24 factories and 36 locations in the region. The agreement is the result of great team efforts across the Danfoss organization.”
The agreement reinforces Danfoss’ 2030 decarbonization goals and underlines that sustainability remains a key part of our growth strategy.
Our decarbonization goals involve reductions from what we call Scope 1, 2, and 3 emissions. Scope 1 emissions come from equipment such as boilers and furnaces, which Danfoss operates at its factories. Scope 2 comes from the energy Danfoss buys from utility companies. As part of Scope 1 and 2, Danfoss aims for all its factories to be carbon-neutral by 2030.
Scope 3 emissions are related to Danfoss but occur outside our premises – for example, when suppliers produce the components we buy from them or when customers use our products in their applications. We aim to reduce our scope three emissions by 15 percent by 2030.
In decarbonizing our own operations globally, we apply the same approach that we bring to our customers.
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