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Case

Resource efficient production

Smart energy systems

Decarbonizing Danfoss factories in Wuqing, China towards carbon neutrality

21 July 2025

Solution provider

Danfoss

Danfoss engineers solutions that increase machine productivity, reduce emissions, lower energy consumption, and enable electrification.

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Challenge

Industry accounts for one-third of global energy consumption and remains one of the most difficult sectors to decarbonize. Industry has a unique role to play in the battle against climate change.

Solution

Welcome to the Danfoss campus, Wuqing, China. In the last eight years, we have managed to increase energy productivity by 53% and decrease CO2 emissions by 30% at our 87,000m2 campus. We have done this by applying the Danfoss three-step approach. We call it: Reduce, reuse, re-source. First, we apply energy efficiency to bring our energy consumption down. Secondly, we reuse the energy that we have already used once. Finally, we look into how we can source what we need from renewable sources. In the last few years, we have implemented more than 100 energy-saving initiatives at this campus.

Danfoss Campus production, Wuqing, China

Result

Since 2016, the factory output has increased by 46% while total energy consumption has decreased by 5%. The annual electricity consumption at Danfoss’ Wuqing campus today is 45 million kWh, which will be fully covered with a power purchase agreement that we made in 2023. The renewable power is produced at a newly constructed solar park located about 20 kilometers from our campus. This power purchase agreement will reduce 28,000 tons of CO2 annually – which means a 23% reduction of Danfoss total scope 1 & 2 emissions in China. This and more efforts will help Danfoss to become CO2-neutral in our global operations by 2030.

Products in this solution

Danfoss Sustainability Paper No.1

Reduce, Reuse, Re-source