Arla’s consumption of natural gas has already been significantly reduced, but cheaper operation and lower CO2 emissions imply even more electric heat pumps, according to Børsen.

For a number of years, Arla Foods has made targeted efforts to reduce the CO2 footprint of the company’s dairy products. The energy crisis in 2022, as a result of the Russian invasion of Ukraine, significantly accelerated the transition, as the company had just three heat pumps at its disposal in Denmark. Since then, the stock in Denmark has been expanded by two, while three are under implementation, and another two are on the drawing board. This information is provided by Børsen (business news media).

The new heat pumps are intended, among other things, to replace the gas-fired boilers at Arla Foods’ largest processing plant in Denmark, Arla Foods Ingredients in Videbæk – with a total cost of approx. DKK 537 million. Conversely, the pumps are assessed to reduce the Group’s gas consumption by 24 percent by the end of 2026.

– Even though electricity is more expensive to implement at our dairies and has a longer payback time than gas, we already see that it will lead to savings in the long run, Mia Bredal Duus, Director, Head of Supply Chain Sustainability, underscores to Børsen.

In addition to the financial savings, however, the shift to electricity also aims to reduce the dairy Group’s CO2 emissions.

Arla Foods has an ambition to reduce emissions from production by 63 percent by 2030. At the end of 2023, the initial 33 percent had been realized, and with the implementation of the heat pumps, the Group assesses that it will be able to add another 9 percent.

The rapid development may prove extremely valuable in light of the impending CO2 tax on fossil energy, which in Arla Foods’ case means that the company will face having to pay DKK 375 per ton of CO2 emitted in 2030.

Read more about Arla Foods’ energy transition on Børsen HERE (subscription required).