COPENHAGEN (June 13, 2012) – Danfoss and COWI signed a strategic agreement with the government of Anshan as a part of the deals signed by the Chinese and Danish government during Chinese President Hu Jintao’s state visit to Denmark.

According to the agreement, Danfoss and engineering design firm COWI will implement the first district heating system fully designed with Danish standards in Anshan, to help the city cut energy consumption and reduce emissions by 240,000 tons of CO2 annually. In addition to this significant savings for electricity and water will be made. The project will also lead to a more stable heat supply, noticeably cleaner air and a better indoor climate for the more than 1.8 million residents living in Anshan since the new heating system will use non-utilized surplus heat from nearby steel production facilities and substitute coal powered heat generation to a wide extent.

The project, with a total value of several hundred millions of DKK in the next few years, will turn Anshan into a world-leading city for district heating, at an energy efficiency level higher than Copenhagen today. Danfoss has partnered up with COWI which provides design for the heating system in Anshan while Danfoss will produce and deliver all of the components needed to get the heating infrastructure up and running.

This strategic agreement will be signed in the presence of visiting Chinese Vice Premier Wang Qishan and Minister of Commerce Chen Deming and their Danish counterparts Vice-Premier Margrethe Vestager and Minister for Trade & Investment Pia Olsen Dyhr, at a business conference in Copenhagen on June 15 during Chinese President Hu’s state visit to Denmark.

In connection with the signing, Pia Olsen Dyhr, Danish Minister for Trade comments: “As minister, I am well aware that China wishes to move towards environmental sustainability. My ambition is therefore to strengthen and maintain the large interest for Danish cleantech solutions among decision makers in the Chinese business community and within government. The agreement signed between Anshan, Danfoss and COWI is an exemplary case of what the Danish government wanted to pursue when we launched the growth market strategy for China.”

“Anshan is one of the leading traditional industrial bases in Northeast China with environmental challenges. We have a population of 3.65 million and have a great demand for heating during the long winter similar to Denmark. We look forward to working with our Danish partners to provide better living condition for citizens with less energy consumption and carbon emission,” said Wang Shiwei, mayor of Anshan.

“We value China’s support for our energy-efficient products and solutions. It is recognition of Danfoss’ strength in the climate and energy industry. Based on this agreement, we will help Anshan City to save energy and emission with our knowledge and experiences and to meet the green goals laid down by the 12th Five-Year Plan. This will be a win-win deal for the Denmark-China relationship,” said Lars Tveen, Divisional President for District Heating in Danfoss.

“Danfoss and COWI have joined forces and agreed upon a strategic partnership in China. We are starting out with the district heating system in Anshan, but more projects are already in the shared pipeline. Our goal is to create energy-efficient solutions for Chinese cities, which will lead to many new jobs - both in Denmark and in China. Our joint declared vision is to put energy-efficiency on the international agenda and drive innovation through world class solutions," says Anders Thyge Egeberg, Managing Director COWI China.

Danfoss is one of the largest companies in Denmark and a world leader in climate and energy.

It has a long track record of collaboration with China in improving energy efficiency and access to alternative energy sources. Since it began doing business in China in the mid-90’s it has grown to employ 4786 employees across six factories and 16 sales offices across the country. In fact China is now regarded as the ‘second home market’ by Danfoss. Danfoss has a wide portfolio of products and services that can save energy and cut carbon emission. District energy, which serves as the backbone of energy efficiency on large scale at municipal levels, is an example of this.

COWI is a leading international consulting firm that provides state-of-the-art services within the fields of engineering, environmental science and economics. COWI’s first project in China in the early 80’s was to develop district heating and energy infrastructure. The services of COWI today remains within the same field. COWI provides a whole range of energy solutions that can help decrease carbon emissions in a city from heating and cooling supply, industrial energy efficiency to sustainable buildings and carbon emission calculation and control. This is accomplished through integration of advanced and well documented technologies and innovative conceptual designs.