Orsted has signed a CPPA with Danish manufacturer Danfoss for 27MW of capacity at the 209MW Horns Rev 2 Offshore Wind Farm.
The Danish offshore wind farm came out of subsidy in October 2020.
Orsted senior vice president and head of region for continental Europe Rasmus Errboe 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 Orsted, making it possible for us to take on more risk elsewhere in our portfolio as part of our plan to invest DKK 200bn (€26.9bn) in green energy between 2019-2025.”
Danfoss senior vice president and head of global services Torben Christensen 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 Orsted, who can guarantee the electricity originates from renewable sources.
Through this agreement with Orsted 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.