Danfoss North America recently signed a power-purchase agreement with CIG Capital, a U.S.–based project financing firm, to purchase about 75 megawatts (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 […]
Danfoss North America recently signed a power-purchase agreement with CIG Capital, a U.S.–based project financing firm, to purchase about 75 megawatts (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 firm said in a May 1 announcement on its website.
Danfoss North America said it made the agreement with an eye toward achieving its global decarbonization goals.
Danfoss Silicon Power is located at 330 Technology Drive in Marcy with operations in the Computer Chip Commercialization Center (Quad-C). The Quad-C facility is part of the SUNY Polytechnic Institute’s campus in Marcy.
The new agreement will provide Danfoss with green certificates, signifying that it is 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 percent.
“As part of our ESG goals, Danfoss has committed to achieving carbon neutrality across our global operations by 2030,” Soren Revsbech Dam, head of ESG and Decarbonization, Global Services Real Estate at Danfoss, said in the announcement. ESG is short for environmental, social, and governance.
“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.”
CIG Capital will be building the 6-square-mile farm in the panhandle region of Texas. Groundbreaking is scheduled for November 2023, with the farm becoming fully operational by the spring of 2025. The solar-farm capacity is projected to be 509 MW of solar power, of which Danfoss will utilize 15 percent, the company said.
The next focus for Danfoss in its decarbonization efforts 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 wants to become carbon neutral in its global operations (scope 1 & 2) by 2030 and says it will reduce its value-chain emissions (scope 3) by 15 percent by 2030. This commitment is included in the targets of Danfoss’ three step-change initiatives on decarbonization, circularity, and diversity, equity, and inclusion.
Danfoss says it has already seen progress in decoupling environmental impact from business growth by delivering 7 percent decrease in scope 1 and 2 emissions while growing 15 percent organically in 2022.
Additionally, the Danfoss headquarters campus site in Denmark became carbon neutral in 2022. The firm reached carbon neutrality through energy-saving projects, utilization of excess heat from processes and data centers, sourcing of green energy, and offsetting residual emissions.