While travelling through Oragadam, one is sure to witness a line of factories buzzing with manufacturing activity. They produce products ranging from motor cycles, trucks, wheels, glass, phones, and all that we come across every day. Amidst this industrial landscape lies a striking green area that immediately captures attention, akin to an oasis in a desert. At first glance, one might mistake it for a recreational area, but surprisingly, it’s yet another factory. A closer look reveals the name, Danfoss.
Offering a wide range of products that meet the growing demands for infrastructure, food supply, energy efficiency and climate-friendly solutions, Danfoss globally celebrated its 90th anniversary and the 25th year of establishment in India recently. The company has reinforced its leadership in sustainability and continues to be the preferred partner to several customers, in enabling their decarbonisation journey, in an intelligent and cost optimal manner.
90 per cent energy from renewable sources
With sustainability at the core of its operations, be it manufacturing, new product development, supply chain operations and campus infrastructure, 90 per cent of Danfoss’ energy consumption is met through renewable sources. This results in substantial decrease in their carbon footprint. Solar energy powers the campus’ cooling and lighting systems while wind power is harnessed to decrease the reliance on fossil fuels to a minimum. With a prestigious LEED Zero Water certification recognised by the US Green Building Council, the facility uses IoT to optimise water usage and also creates awareness among employees on conservation too.
The headquarters in Chennai also leads the way. A 3600 KL rainwater harvesting pond, zero liquid discharge, miyawaki forest and use of Danfoss’ own energy efficiency products and solutions have enabled a green transition. Around 12,000 tonnes of carbon foot print has been reduced in the last two years.
Time for district cooling solutions
India’s energy demand is set to skyrocket, leading to a substantial increase in oil and natural gas. This is where the greatest challenge and the opportunity lies. As temperatures soar, electricity demand for cooling surges. Nearly 10 per cent of total electricity consumption is attributed to space cooling. Household air conditioner ownership is projected to increase ninefold by 2050. This trend will further peak electricity requirements, necessitating significant investments in infrastructure. Governments too are looking for alternative sustainable solution in the form of district cooling. The working principle of the system is simple. A centralised chilling plant produces chilled water that is transferred to various buildings or facilities through an underground network of insulated pipes. A control system regulates the temperature of the water and monitors the flow rate.
A feasibility report on district cooling in collaboration with UNEP has been prepared by the Tamil Nadu state planning commission. A roadmap is being prepared along with the Department of Energy, Industry and Environment. With this system, multiple buildings can share the cost of a centralised plant, resulting in significant energy savings.
Danfoss’ expertise also lies in intelligent and integrated energy system, at a municipality level. In this, various sources of energy and sectors connect in a flexible network that works precisely. For example, houses can be heated by surplus heat from local companies, electric cars can be charged when there is less energy demand,… Data is analysed and used to ensure that energy is efficiently utilised in the best possible way. This system makes it possible to reduce the costs of decarbonisation by up to 50 per cent.
Danfoss collaborates with national and state level smart city and sustainable climate action projects for creating energy efficient and green infrastructure. This will help transform our cities into more livable, healthier and sustainable places.
Decoupling growth and emissions
A highly debated question has been if growth and emissions can be decoupled. From the past, it is evident that growth has been powered only through emissions but with rising climate concerns, the business-as-usual approach can no longer be continued. When embracing sustainability, capital investment may be required for technology upgrades which can affect the bottom line, but in the long run, will lead to cost-saving opportunities. For example, energy-efficient technologies can significantly reduce energy consumption and lower utility costs. Green manufacturing initiatives often go hand in hand with process optimisation and automation. Streamlining workflows, eliminating redundancies and reducing downtime can contribute to overall cost savings and enhanced profitability. In addition to cost savings, sustainable practices also create new business opportunities. Aligning with growing customer needs that value these principles, can expand market reach to drive top-line growth.
Danfoss, in its process and products has successfully demonstrates that decoupling is possible and decarbonisation leads to cost savings. The drives produced by Danfoss globally in 2021, reduced about 135 million tonnes CO2 for its customers during the products’ lifetime. While growing at 76 per cent over the past five years, the company managed to decouple environmental impact from business growth, by decreasing scope 1 and 2 emissions by 7 per cent. The energy intensity of Danfoss’ operations globally has been reduced by 45 per cent since 2007 while energy productivity has increased by 80 per cent in the same period.
The company has also announced that all new products will have circularity embedded in them by 2030. The recently refurbished drive production line at the Chennai campus and returnable packaging solutions initiative are concerted efforts to promote circularity. All Danfoss locations and factories will go carbon neutral by 2030. This will be achieved through a energy strategy that focusses on reduce (minimising energy consumption), reuse (eg. waste heat recovery), and resource (carbon credits and power purchase agreements).
