Danfoss and Ørsted Sign Corporate Power Purchase Agreement
Danfoss, a world-leading industrial manufacturer of energy efficient solutions, has signed a 10-year fixed price corporate power purchase agreement (CPPA) with Ørsted to offtake the renewable electricity output of 27 MW of Ørsted's 209MW Danish offshore wind farm Horns Rev 2, which came out of subsidy in October 2020.
Rasmus Errboe, Senior Vice President, Head of Region Continental Europe at Ørsted, said: "We're very happy to have signed this CPPA with Danfoss, who's one of an increasing number of companies taking a conscious choice to buy renewable energy. This is our first CPPA for an offshore wind farm that's coming out of subsidies and we see a strong potential for these late-life assets to secure stable revenues for Ørsted, making it possible for us to take on more risk elsewhere in our portfolio as part of our plan to invest DKK 200 billion in green energy between 2019-2025."
Torben Christensen, Senior Vice President and Head of Danfoss Global Services, said: "Through signing this Corporate PPA, we're covering all of our electrical consumption in our factories in Denmark and Germany with offshore wind energy equal to 25% of our global electricity consumption. We are determined to deliver on our ambitious sustainability target of becoming carbon-neutral in 2030 while at the same time continue to grow Danfoss. This is only possible if we decarbonize our operation and demonstrates that "green growth" is indeed possible."
Danfoss' target to become carbon-neutral globally in 2030 is built on three main strategies. Firstly, Danfoss continues to invest in energy-efficient solutions significantly lowering the heating and electricity consumption in all factories worldwide. Secondly, Danfoss will pursue opportunities to connect its factories to local district heating networks to purchase heat produced from renewable energy sources and thereby phase out the use of natural gas and other fossil fuels, but also to recover excess heating from Danfoss' production processes and feed it back into the district heating network - often referred to as sector coupling.
Thirdly, Danfoss wants to buy green electricity from professional partners like Ørsted, who can guarantee the electricity originates from renewable sources. Through this agreement with Ørsted covering all Danfoss' factories in Denmark and Germany, Danfoss can offset carbon emissions corresponding to approx. 31,000 tonnes a year or about 12% of the company's total emissions in their scope 2 accounting, according to the green house protocol that regulates carbon accounting globally.
About Horns Rev 2
Horns Rev 2 is situated approx. 30 km off the western coast of Jutland and has a capacity of 209MW. The offshore wind farm consists of 91 wind turbines, each with a capacity of 2.3 MW. Horns Rev 2 covers an area of 35 km2 and was inaugurated in 2009.
Danfoss engineers advanced technologies that enable us to build a better, smarter and more efficient tomorrow. In the world's growing cities, we ensure the supply of fresh food and optimal comfort in our homes and offices, while meeting the need for energy-efficient infrastructure, connected systems and integrated renewable energy. Our solutions are used in areas such as refrigeration, air conditioning, heating, motor control and mobile machinery. Our innovative engineering dates back to 1933 and today Danfoss holds market-leading positions, employing 28,000 and serving customers in more than 100 countries. Danfoss is privately held by the founding family. Read more about us at www.danfoss.com.
The Ørsted vision is a world that runs entirely on green energy. Ørsted develops, constructs, and operates offshore and onshore wind farms, solar farms, energy storage facilities, and bioenergy plants, and provides energy products to its customers. Ørsted ranks as the world's most sustainable energy company in Corporate Knights' 2021 index of the Global 100 most sustainable corporations in the world and is recognised on the CDP Climate Change A List as a global leader on climate action. Headquartered in Denmark, Ørsted employs 6,179 people. Ørsted's shares are listed on Nasdaq Copenhagen (Orsted). In 2020, the group's revenue was DKK 52.6 billion (EUR 7.1 billion). Visit orsted.com or follow us on Facebook, LinkedIn, Instagram, and Twitter.
Tweet me: Two of Denmark's largest companies, @Danfoss and @Ørsted, have signed a corporate power purchase agreement for 27 MW of the capacity of Horns Rev 2 Offshore Wind Farm. https://bit.ly/2P8H1XP #PPA
KEYWORDS: CPH:ORSTED, Orsted, Danfoss, Ørsted, power purchase agreement, ppa