Danish Heavyweights Sign Offshore Wind Power Purchase Agreement

Denmark’s Danfoss and Ørsted have signed a corporate power purchase agreement for 27 MW of the capacity of the Horns Rev 2 offshore wind farm.

Danfoss, a global industrial manufacturer of energy-efficient solutions, signed a ten-year fixed price CPPA with Ørsted to offtake the portion of the renewable electricity output of the 209 MW offshore wind farm.

Horns Rev 2 came out of subsidy in October 2020, Ørsted said.

“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,” Rasmus Errboe, Senior Vice President, Head of Region Continental Europe at Ørsted, said.

Danfoss plans to become carbon-neutral globally in 2030. Through this agreement with Ørsted covering all Danfoss’ factories in Denmark and Germany, the company can offset carbon emissions corresponding to approximately 31,000 tonnes a year or about 12 per cent of the company’s total emissions in their scope 2 accounting, according to the green house protocol that regulates carbon accounting globally.

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.”

Inaugurated in 2009, Horns Rev 2 comprises 91 Siemens Wind Power 2.3 MW wind turbines installed some 30 kilometres off the western coast of Jutland.

Back in February, Horns Rev 2 produced its ten billionth kWh of electricity.