Danfoss signs record-setting commercial agreement for its district energy business in China

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Danfoss and the city of Anshan have confirmed their historic cooperation to help Anshan become a world-leading city for district heating.

Following a year of detailed planning, Danfoss has signed a milestone contract with its long-term partners in the city of Anshan. Under the agreement, Danfoss will deploy a comprehensive district heating solution to the city of Anshan with a total value in the hundreds of millions of RMB by 2015. It is the largest commercial agreement ever for a Danfoss district energy project in China. The preparation and implementation of the project is being strongly supported by COWI, with whom Danfoss has a strategic partnership in China.

The Danfoss solution will provide a more stable heat supply, noticeably cleaner air and a better indoor climate for the more than 1.8 million residents living in Anshan. Furthermore, Anshan will be the first city in China to use district heating to provide domestic hot water on a large scale. The new district heating system will use non-utilized waste heat from a local steel plant and will enable Anshan to cut energy consumption and reduce its CO2 emissions by up to 240,000 tons annually. “Anshan will become the ideal case study in which Danfoss can demonstrate leading energy-efficiency solutions. The project will be the first of its kind in China and has already attracted the attention from many other city governments”, says Atli Benonysson, Vice President, Danfoss District Energy.

The energy-efficiency project will be carried out in close co-operation with the Anshan Government, Qianfeng District Heating Company and AnGang Steel. “We are very excited about this project, because it brings together key institutions of Anshan to deliver a significant environmental improvement for our residents”, says Vice Mayor Zhang Shichao, of Anshan Municipality, who adds: “Danfoss is playing an instrumental role in helping the city government reach its goals to turn Anshan into a world-leading city for district heating.”

To be able to support the growing demand for energy-efficient solutions in China, Danfoss will expand it factory and operations in Anshan. “We are thrilled about this opportunity to expand our district energy business in China as it will allow us to engage in closer relationships with additional Chinese cities to help them optimize their energy infrastructure as we draw on our experiences from Anshan,” says Lars Tveen, President of Danfoss District Energy.

The signing marks an important milestone in the cooperation between Danfoss and the city of Anshan as it confirms the strategic cooperation agreement signed by Jørgen Mads Clausen, Chairman of Danfoss, and Anshan Municipality during the state visit of Chinese President Hu Jintao to Denmark in June 2012.

For further information:
Lars Tveen, President of Danfoss District Energy, tel. +45 7488 2142 / +45 2146 9456
Jonna Senger, Communication Advisor, Danfoss District Energy, tel. +45 7488 2038 / +45 4021 0787

Danfoss is a global leader focused on energy-efficient solutions that save energy and costs, and reduce carbon emissions. The company’s wide range of products and services are used in areas such as cooling food, air conditioning, heating buildings, controlling electric motors and powering mobile machinery. The company is also active in the field of solar and wind power as well as district heating and cooling infrastructure for cities and urban communities. Danfoss was founded in 1933 in Nordborg, Denmark. Today, the Group employs around 23,000 employees and sells its products in more than 100 countries around the world. Read more about Danfoss at www.Danfoss.com. Learn about its energy-efficient solutions at: http://www.danfoss.com/SolutionsReady/

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