Innovative Energy Savings From Danfoss

Danfoss Solutions specialises in an energy-saving system for large industrial consumers, primarily within the food and beverage industry and the manufacturing industry. The system is focused on finding innovative ways to reduce energy consumption.

Danfoss Solutions is based on the idea of delivering guaranteed utility savings to clients. It is a wholly owned subsidiary of Danfoss. This relationship enables the 'mother-company' Danfoss to benefit from the extensive resources and skills which has emerged within the company.

Urgent matters

The need to develop energy-saving tools has been on the public agenda for a few decades along with the growing realization that energy, water, and heating would be scarce resources in the future. This, combined with rising prices on these resources has motivated the production sector to look at new solutions.

Danfoss Solutions is a way of capitalizing know-how within the Danfoss Group and combining it with state-of-art technology from suppliers of energy control solutions. Furthermore, Danfoss Solutions fits well with Corporate Social Responsibility (CSR) strategies of Danfoss, which has put environmental friendly solutions out front. For several years, the company has aimed to be ranked as one of the environmental leaders in their field.

Wider potential

Because Danfoss Solutions seeks to combine methods from different spheres, it has a big potential to influence other markets and technological transfers. One such example is the establishment of the Danfoss Energy Management Institute. This institute aims at providing an internationally recognized education within energy management. The role of the institute is also to offer knowledge-sharing at various levels – at workshops, seminars, and conferences.

What are the results?

Danfoss Solutions' energy-saving system has shown positive results for its clients, from the very specific to general issues. According to Danfoss, its solutions have had a positive impact on our climate and increased sustainability as clients use less electricity, heat, water, gas, and compressed air in the production process.

Furthermore, work environments have been improved as there is less noise, technically upgraded systems, a common focus among the employees and increased team spirit (by creating awareness and motivation campaigns). Danfoss Solutions has carried out 'turnkey' projects on behalf of companies like Carlsberg, Bristol Myers-Squibb, Tulip, FEMSA, SAB-Miller, and Coca-Cola. These projects have in sum resulted in savings worth millions of Danish Kroner, as well as CO₂ reductions of more than 25,000 tonnes per year.

The business case

There is an obvious connection between reducing energy use and increasing profits. Danfoss Solutions reports that those who have purchased products from Danfoss Solutions have seen a positive impact on their operation.

According to Danfoss, the impact of the clients' bottom line (EBIT) has been an average of 3-4%, their total utility costs have been reduced by 10-20%, and there has been a realized internal rate of return well above 30%. These savings have manifested themselves directly in the budget of the clients, and they have even been able to sell of carbon credits. In general, CO₂ emissions have seen an average of 10% drop, and in the process, CO₂ quotas have become a strategic asset for the clients.

The setting up of Danfoss Solutions has also been an advantage for the Danfoss Group. Climate change concerns have resulted in a more narrow focus on how to save our energy resources, and in relation to CSR, this has been a vital issue for the production sector.

Specific concept from Danfoss Solutions

The actual solution from Danfoss Solutions is the EnSave® "product" or concept. The EnSave® system takes 6-24 months to fully implement in a firm before it can realize a 10-20% save in energy consumption.

The EnSave concept is a process. It requires a one-week desk-research period or a full plant utility audit; thereafter further processes of studies and energy-saving mechanisms are required. In total, the company must expect at total process running time of approximately 45 months.

The results of this system have been very positive, according to Danfoss. In 2006, the project resulted in savings of 100 million kilowatt-hours (kWh) (electricity and heat) and 1 million m3 water/wastewater, and 25,000 tonnes less CO₂ emission being imposed on the planet. This is equivalent to the GHG emissions of over 5,000 households.

Danfoss states that by implementing its energy solutions "products," companies can typically cut an additional 10-15% off their total energy bill – with a pay-back period of less than two years – and reduce CO₂ emissions significantly.

Company description

Danfoss is a family-owned global company with its headquarters in Southern Denmark. It was established by Mads Clausen in 1933, and quickly became successful in developing and producing, among other products, room thermostats. By 1953, it employed 2,000 people and, in 1962, set up its own research department. Today, it has more than 23,000 employees worldwide, and has 61 factories in 25 countries. All Danfoss' factories must establish environmental management systems, which must be certified according to the international standard ISO 14001.

Danfoss joined UN Global Compact in 2002, and has signed the Business Charter for Sustainable Development issued by the International Chamber of Commerce (ICC Environmental Charter). It is also the co-founder of the Danish Council for Sustainable Business Development.  As a member of UN Global Compact, Danfoss has signed the voluntary UN initiative "Caring for Climate. "

Pernille Husby, Copenhagen Climate Council