Masthead - Climate Control Journal

Science Based Targets initiative approves Danfoss’ climate targets

NORDBORG, Denmark, 23 June 2022: Danfoss said its science-based target has been approved by the Science Based Targets initiative (SBTi). Elaborating, Danfoss said the Science Based Targets initiative (SBTi) has validated that the corporate greenhouse gas (GHG) emissions reduction targets submitted by Danfoss A/S are in conformance with the SBTi Criteria and Recommendations (version 4.2).

According to Danfoss, the science-based target provides a clearly defined pathway for companies to reduce GHG emissions in line with the goals of the Paris Agreement and to help prevent the worst impacts of climate change.

The SBTi’s Target Validation Team has determined that Danfoss’ scope 1 and 2 target ambition is in line with limiting warming to 1.5 degrees C. As part of the science-based target, Danfoss said, it will reduce absolute scope 1 and 2 GHG emissions by at least 46.2% by 2030 from a 2019 base year. In addition, Danfoss has committed to being carbon neutral in scope 1 and 2 emissions by 2030. Danfoss said it will reduce absolute scope 3 GHG emissions by 15% in the same time frame.

Kim Fausing, President & CEO, said: “We have built a strong foundation to achieve our science-based target, an important pillar of Danfoss’ new 2030 ESG ambition. Our science-based target expands our GHG emissions reduction goals beyond our own business, across the entire value chain. It reflects our continued dedication to taking action on climate change and becoming the preferred decarbonization partner to our suppliers and customers.”

Danfoss announced in March 2022 that it had reached its 2030 target of doubling the energy productivity in its factories globally – nine years ahead of time. Energy productivity improved by 104% in 2021 from the baseline year 2007, and energy intensity was halved between 2007 and 2021, Danfoss said, adding that it produced twice the output in 2021 as in 2007, with the same energy consumption. Subsequently, Danfoss had said it would put sustainability at the centre of its Core & Clear 2025 strategy and has the ambition to take leading positions in decarbonisation, circularity, diversity and inclusion.

Martin Rossen, SVP, Head of Group Communication & Sustainability, Danfoss, credited by the company as responsible for developing Danfoss’ ESG strategy and setting the ambition for reducing emissions across the business, said: “The validation of our science-based target confirms that Danfoss’ climate ambitions are in line with science and the goals of the Paris Agreement. But it’s more than order in our own house. Customers, employees, and the public increasingly demand transparency and reward action on ESG. For good reasons. Companies can’t simply get away with saying that they act, they need to document it. The science-based target provides a level playing field. It gives a competitive edge to the companies that truly care and take action. United Nations Secretary-General Kofi Annan once said, ‘Who cares wins’, and we believe that companies that care will win.”

Danfoss said it is on track to making its 250,000 m2 headquarters in Nordborg, near the city of Sønderborg, carbon neutral in scope 1 and 2 in 2022 by implementing available energy efficiency solutions and sourcing renewable electricity and heating.

The Danfoss headquarters campus was one of the field trips taken by ministers during the International Energy Agency’s 7th Annual Global Conference on Energy Efficiency in the City of Sønderborg, Denmark, which ran from June 7 to 9. Dubbed “The Global Capital of Energy Efficiency” by Dr Fatih Birol, Executive Director, IEA, Sønderborg acted as a global showcase of energy-efficient solutions when more than 300 leading politicians, government officials and business leaders joined the conference on energy efficiency.

Frascold, Solid Energy in district energy initiative

MILAN, Italy, 19 April 2022: District heating systems could be a key technology in achieving the international climate mitigation goals, both those laid out in the Paris Agreement and the more stringent ones set by the European Green Deal. Saying so, Frascold, which manufactures semi-hermetic compressors for the industrial refrigeration and air conditioning sectors, said it has combined with Solid Energy, which specialises in heat pumps powered by renewable energy sources, to contribute to the diffusion of district heating and pave the way to an ecological transition by signing up to numerous projects in Denmark. 

Amongst the most recent partnerships, upgrading the Galten plant in the Scandinavian country stands out, Frascold said. The plant has been in operation since 1964 and is capable of powering approximately 2,130 homes, Frascold highlighted.

The collaboration between Frascold and Solid Energy for the Galten facility began in 2019 with the creation of a system able to produce 45,000 MWh per year, obtained from 6 Frascold CXH screw compressors, suitable for use with HC, for 3.5 MW of overall power. The subsequent expansion, in 2021, saw the addition of 12 CXH compressors for an increase in power of 7 MW, Frascold said.

The installed air-water heat pumps absorb heat from the outside air with 34 air coolers for a total of 3,215,000 m3/h and cover 98% of the district heating system’s power consumption – that is, 44.343 MWh with a SCOP (Seasonal Coefficient of Performance) of 3.11, Frascold said. The plant provides a discharge temperature of 70 degrees C with a return of 38 degrees C, thus achieving a COP of 3.4 calculated by considering an outside air temperature of 8 degrees C, which is the annual average in Denmark, Frascold said. 

“We think HC heat pumps are ideal for helping reduce the comfort sector’s environmental impact,” said Karsten Pedersen, Technical Director, Solid Energy. “Cascade systems with R290 and R600a guarantee the best balance of lowering direct and indirect consumption, flexibility of use and costs.

So, for this project, we relied, once more, on Frascold, which has supported us throughout each phase, and thanks to the constant dialogue with the Competence Center team, we have designed the ideal system to respond to the three challenges: Sustainability, performance and efficiency.

The partnership with Frascold is also based on the certified reliability of its wide range of hydrocarbon solutions: It is, in fact, the only manufacturer on the market with compressor sizes around 1,000 m3/h, which are perfect for our project and comply with ATEX directives for use in zone 2.” 

Fabrizio Diotallevi, Frascold Sales Area Manager, North Europe, said: “Denmark is one of the most advanced countries in terms of district heating, and approximately 1.7 million homes, or 64% of the total, are powered by these systems, of which 61% already use energy from renewable sources.

A continuous improvement process is in line with the objective to completely eliminate fossil fuels in the segment by 2030. With the numerous plants brought online with Solid Energy, we are proud to contribute to this ambitious project, which we hope will be replicated in other countries.

This new success story with Solid Energy is another example of our expertise in building heat pump compressors, which we have gained through years of international partnerships using this technology that, in the near future, will be the basis for virtuous heating and zero environmental impact.”  

Frascold SpA – www.frascold.it/en 

Frascold is a leading player in the development, production and marketing of semi-hermetic, piston and screw compressors, at the service of the refrigeration and air conditioning industry. A company in continuous evolution, with its gaze always directed toward the future, which has built, over time, its competitive positioning on the value of the dynamic efficiency paradigm in which the company becomes the very engine of change, playing a propositional and proactive role towards the demand.

With headquarters in the province of Milan, in a facility occupying 53,000 m2 in total. Frascold Spa closed 2020 with a consolidated turnover of 55 million Euro. The Company boasts a well-balanced competitive position, thanks to the complete control of the value chain and a careful internationalisation strategy, which is expressed in significant investments in direct bases in China, India and the USA and agreements with Distributors in 86 countries. 

Solid Energy A/S https://www.solid-group.dk/en  

Solid Energy A/S is a cleantech company founded in 2015 in Denmark. It specialises in designing and installing heat pumps for district heating power stations and for large plants in, for example, the industrial sector. Solid Group has 35 employees and implemented 13 turnkey projects, for an overall total power of 40 MW. 

Frascold, Solid Energy in district energy initiative

MILAN, Italy, 19 April 2022: District heating systems could be a key technology in achieving the
international climate mitigation goals, both those laid out in the Paris Agreement and the more
stringent ones set by the European Green Deal. Saying so, Frascold, which manufactures semi-
hermetic compressors for the industrial refrigeration and air conditioning sectors, said it has
combined with Solid Energy, which specialises in heat pumps powered by renewable energy
sources, to contribute to the diffusion of district heating and pave the way to an ecological
transition by signing up to numerous projects in Denmark.

Amongst the most recent partnerships, upgrading the Galten plant in the Scandinavian country
stands out, Frascold said. The plant has been in operation since 1964 and is capable of
powering approximately 2,130 homes, Frascold highlighted. The collaboration between
Frascold and Solid Energy for the Galten facility began in 2019 with the creation of a system
able to produce 45,000 MWh per year, obtained from 6 Frascold CXH screw compressors,
suitable for use with HC, for 3.5 MW of overall power. The subsequent expansion, in 2021, saw
the addition of 12 CXH compressors for an increase in power of 7 MW, Frascold said. The
installed air-water heat pumps absorb heat from the outside air with 34 air coolers for a total of
3,215,000 m 3 /h and cover 98% of the district heating system’s power consumption – that is,
44.343 MWh – with a SCOP (Seasonal Coefficient of Performance) of 3.11, Frascold said. The
plant provides a discharge temperature of 70 degrees C with a return of 38 degrees C, thus
achieving a COP of 3.4 calculated by considering an outside air temperature of 8 degrees C,
which is the annual average in Denmark, Frascold said.

“We think HC heat pumps are ideal for helping reduce the comfort sector’s environmental
impact,” said Karsten Pedersen, Technical Director, Solid Energy. “Cascade systems with R290
and R600a guarantee the best balance of lowering direct and indirect consumption, flexibility of
use and costs. So, for this project, we relied, once more, on Frascold, which has supported us

throughout each phase, and thanks to the constant dialogue with the Competence Center
team, we have designed the ideal system to respond to the three challenges: Sustainability,
performance and efficiency. The partnership with Frascold is also based on the certified
reliability of its wide range of hydrocarbon solutions: It is, in fact, the only manufacturer on the
market with compressor sizes around 1,000 m 3 /h, which are perfect for our project and comply
with ATEX directives for use in zone 2.”

Fabrizio Diotallevi, Frascold Sales Area Manager, North Europe, said: “Denmark is one of the
most advanced countries in terms of district heating, and approximately 1.7 million homes, or
64% of the total, are powered by these systems, of which 61% already use energy from
renewable sources. A continuous improvement process is in line with the objective to
completely eliminate fossil fuels in the segment by 2030. With the numerous plants brought
online with Solid Energy, we are proud to contribute to this ambitious project, which we hope
will be replicated in other countries. This new success story with Solid Energy is another
example of our expertise in building heat pump compressors, which we have gained through
years of international partnerships using this technology that, in the near future, will be the
basis for virtuous heating and zero environmental impact.”

Danfoss implements planned generational shift in ownership

NORDBORG, Denmark, 23 March 2022: Former Danfoss CEO, Jørgen Mads Clausen has informed the Board of Directors that he will resign as Chairman of the Board of Danfoss A/S with effect from the Annual General Meeting to be held on March 25, 2022. Making the announcement through a Press release, Danfoss said Clausen will remain a member of the Board of Directors until the Annual General Meeting on March 25, when his current term expires.

According to Danfoss, the Board has nominated current Vice Chairman, Jens Bjerg Sørensen to succeed Clausen as Chairman of the Board after the Annual General Meeting.

Clausen said: “Danfoss is now a stronger, bigger and more global company, but also one with a clear goal of contributing to the green transition and combatting climate change with our energy-efficient products and solutions. This is a result of our business strategy, which is now being updated with an ambitious sustainability strategy. It has been a pleasure to safeguard my parents’ life work for the benefit of Southern Jutland, Denmark and the world. Now it’s time for the next generation to take the lead. The timing is right for me.”

According to Danfoss, Clausen was CEO of the company from 1996 to 2008 and Chairman of the Board since the 2009 Annual General Meeting. Despite stepping down from the Board, he intends to maintain his strong commitment to Danfoss, the company said. This follows the tradition that started with Bitten Clausen, who was one of the world’s first female board chairs from 1966 to 1971 and, later, Danfoss’ Vice Chair until 1989, the company added.

Clausen said: “I will continue to be available to the company and represent the family to employees and business associates. But both my siblings and my wife and I are delighted that the third generation of the family is showing their commitment to Danfoss by taking on greater responsibility. At the same time, we couldn’t ask for a better chairman than Jens Bjerg Sørensen. Jens has the right skills, experience and understanding of Danfoss and our culture. He can take Danfoss to new levels, together with the rest of the Board, management and our employees.”

Sørensen said: “I am honored to be nominated as the new Chairman of the Board. Danfoss has an impressive history. The foundation based long-term ownership and the family’s strong values are one of the main reasons why Danfoss now has a decisive influence on whether the world succeeds in the green transition. Danfoss is financially stronger than ever and has developed significantly during Jørgen’s time as Chairman. As Vice Chairman, I have followed the close collaboration between Jørgen and Danfoss’ CEO, Kim Fausing, which I consider crucial to Danfoss’ success. I intend to maintain this together with the new Board of Directors.”

‘The UAE leadership has a view of the future – and it is not just tomorrow’

Climate Ambassador Tomas Anker Christensen

Congratulations on your appointment as Denmark’s Climate Ambassador. Could you speak on the potential areas of cooperation between the UAE and Denmark?

I think it’s remarkable the far-sighted leadership the UAE has taken as an oil- and gas-producing country. The leaders have a view of the future – and the future that is not just tomorrow, not just five or 10 years, but they are thinking ahead to 20 or 50 years from now.

We are talking about the major transformation of energy systems. The largest solar farms in the world are in the UAE, and a lot of investment is being done in this area. The country is taking energy efficiency in buildings seriously and addressing the challenge of having had, years ago, the highest carbon footprint per inhabitant.

In that sense, cooperation between the UAE and Denmark on energy and other topics related to food and maritime issues makes imminent sense. We are the country in the EU with the largest oil -production. We have oil and gas in the North Sea. But we are slowly ending our exploration of that oil and gas, and in December 2020, the Danish Parliament decided to end fossil extraction in the North Sea by 2050 with a plan for the just transition of impacted workers and a conversion of the oil and gas fields to Carbon Capture Utilization and Storage (CCUS)].

There is also a huge market for renewable energy, globally, as this transformation [can be seen] worldwide. In Denmark, we are building better and taller wind farms and offshore wind farms, including over the next two years in two new energy islands. As a result, there has been global interest surrounding Danish windfarm operators and wind constructors, many of whom are now in demand in a number of countries such as the US, Korea and Australia.

Could you speak more about the competitive advantage that countries such as the UAE can have from specialising in sustainable cooling solutions, both in terms of developing the expertise within the country and in terms of pioneering solutions? Do you see this to be a growing market?

The world is undergoing an energy transformation, and the UAE is also very well positioned to be part of it and, in some instances, to lead this transformation. As such, a partnership with a country like Denmark makes great sense.

When it comes to the development of cities, it’s clear that if you look at trends as a whole, [the population] is moving from the countryside to cities at an increased rate. I think the latest figures from UN Habitat and other global organisations is that almost half of the human population lives in cities. We have been going from 30-40% of the population to half, and the trajectory is pointing towards a world where most of the people are in cities.

There have been large movements in the Global South. In China, you have more than 70 cities with more than one million inhabitants, and many are newly constructed with poor quality of buildings that need to be retrofitted and rebuilt. In India, you have a growing middle-class population, and this has led to growth of new buildings in new cities or more modern buildings in new parts of the city. The same trend can be seen in the Gulf region. For a very long time, Dubai was home to most of the cranes in the world. In Africa, large cities that are already big, continue to grow. In Indonesia, we see a population in the process of moving Jakarta to a new island, because it is sinking.

Basically, in many places, the built-environment is not a done deal. We are at the beginning, not at the end. It’s only in older industrial countries in the West that the city structure is permanent. I would think the opportunities for both new buildings and retrofitting are very large, especially in warmer climates, where expertise is needed in challenging environments.

For us, in Denmark, it’s more about reverse engineering our experience with energy efficiency and insulation, and usinge and applying them in the UAE. Also, there would be solutions we need to develop from scratch, based on the circumstances and the physical environment. 

It’s clear that cooling also has some attributes different from heating. [In Denmark], some companies are experimenting with district cooling, but most are district heating, with a lot of combined power and heat plants. Also, some of them are doing this with garbage waste disposal and heat and power. With the more recent climate law, because of the move towards circular economy, we are now looking at recycling and reusing our waste rather than incinerating it.

What can further drive the development of expertise and solutions in the sustainability arena in a country?

A combination of energy pricing and embedding efficiency in building codes and regulation by central and local governments are key here. The building owner and operator might not be interested in building more efficiently because of the perceived cost, and they will try to defer the cost onto the tenants. That means rent goes up, bills go up, and they are not too happy either. That’s always a question for the less well off, that’s also the question of the fair and equitable distribution of the cost and benefit, [[when it comes to implementing sustainable solutions.].

In Denmark, people have been investing in energy efficiency because of energy cost and due to strict regulation since the 1970’s. Because of the cost of energy, there are huge paybacks at a shorter time.

In what ways can the public sector in the GCC region incentivise sustainability initiatives in the built-environment, both in terms of introducing retrofit targets and also ensuring new buildings adhere to higher energy- efficiency goals? 

For one, I would say that educating the general public is extremely important, in terms of the cost, economy, sustainability and potential social benefits.

The very practical education of engineers and economists, integrating energy efficiency into curricula in the built-environment, so that you have your own skilled engineers and technicians ¨to operate systems, do the buildings and learn from it. It is a mentality and way of thinking. We have done it for the last 50 or more years; we didn’t do it before that. It took us a long time and heavy regulation, strong incentives and a lot of private discussion among government and private sector and institutions of higher education to get that sector to operate in an efficient and integrated way. I would encourage public policy makers to think through different dimensions of how to establish a cluster of knowledge and expertise. The young students of today will be the leaders of tomorrow, and they have to make it work 10-15 years down the road.

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