Nordex

Business Innovations for Global Goods

Nordex

Authors

rosalie henry

rosalie henry

Amanda Gaide

Amanda Gaide

edmund widjaja

edmund widjaja

Ming Xiao Xia

Ming Xiao Xia

belen acosta

belen acosta

jennyfer ellis

jennyfer ellis

Schools

University of Guelph

University of Guelph

Universidad de Navarra

Universidad de Navarra

IPMI International Business School

IPMI International Business School

Professors

Ruben Burga

Ruben Burga

Romina Hosseingholizadeh

Romina Hosseingholizadeh

Yang Hoong

Yang Hoong

Amelia Naim Indrajaya

Amelia Naim Indrajaya

Isabel Rodriguez Tejedo

Isabel Rodriguez Tejedo

Global Goals

7. Affordable and Clean Energy 11. Sustainable Cities and Communities 12. Responsible Consumption and Production 13. Climate Action 15. Life on Land

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Summary

Nordex manufactures wind turbines and offers maintenance to their customers. Wind turbines already promote sustainability by generating clean energy, but Nordex has taken their efforts one step further by working towards reducing their carbon footprint in the manufacturing process.


Innovation

To generate electricity using wind power, wind turbines need to be built, distributed and maintained. These are large machines and take lots of resources and power. Nordex has made efforts to reduce their carbon footprint in all steps of the manufacturing process in their plants worldwide.

To properly execute their vision of being as environmentally efficient as possible, Nordex has curated a team of experts worldwide that communicates to the global plants and sets guidelines that include energy deficiency audits of their facilities, bringing in energy experts to analyze installations, and analyzing what improvements can be made to reduce expenses and energy consumption. Don, a Director at Nordex, says that he is involved in global meetings with all the plants trying to reduce their impact on the environment as much as possible. These guidelines vary regionally. An example of this implementation Don provides is that the Brazilian plant is trying to implement a heat conservation technique where heat generated rises and accumulates in the roof area, and would later descend to be used for heating the area where people are working.

A big part of turbine implementation is also strategically planning how and where they will be installed. Nordex uses historical datal and scientific research from the past 2+ years to ensure turbines are installed as efficiently as possible.

Finally, as mentioned, turbines are large and use many resources. Nordex is dedicating themselves to finding ways to recycle destroyed blades so they can be reused. By implementing all of these strategies, Nordex sets themselves as a firm that not only creates a product that provides clean energy but does it in a way that reduces energy consumption and its carbon footprint. This in turn also helps to promote sustainable communities and climate action.


Business Innovations for Global Goods

Inspiration

Nordex is a company that has been dedicated for many years to everything related to sustainable energy production. As a for-profit firm, their main goal is to make money. In their substantive research in creating the most efficient product possible, they are able to also save on costs for them. For example, in the heat saving method I mentioned earlier, Nordex is able to not only save energy but in turn cut on energy costs.

While the monetary payoff is enticing, the real inspiration for the innovation is that Nordex wants to be at the forefront of clean energy generation. To be a leader in this field, they believe that they must not only serve to generate clean and sustainable energy, but that their production method must also be sustainable and efficient. This company mission attracts employees who share these values and want to work towards these goals. Don says, “The main satisfaction of working in a company related to wind energy is that I am contributing to creating something beneficial for the future.” Don also mentions that he believes “renewable energy is something that needs to be implemented and displace all others.” Nordex uses this inspiration to constantly think of new ideas that improve efficiency and develop more efficient technology.


Overall impact

This innovation has greatly positively impacted Nordex, society, and the environment. Firstly, other than accomplishing their environmental goals, this innovation has cut costs for Nordex. They have saved money on electricity costs by installing solar panels on the roofs of their factories. Nordex offers 25 years of maintenance for the turbines they sell. By properly researching installation regions, constantly developing more efficient and durable technology, and coming out with 2 or 3 new models each year that are more efficient, taller and powerful, Nordex provides a product that in turn requires less maintenance. This cuts down on human labour and resource costs. These innovations improve profitability in the short-term and improve customer relations and retention in the long-term.

The impact on society is that the expansion of wind turbines and wind-powered energy provides the opportunity for clean and affordable energy. In 2022, 21.5% of Spain’s electricity used was generated using wind energy. As Nordex expands to create more plants in more countries, this creates more jobs in these communities. This firstly helps the local economies but also promotes sustainable communities.

This innovation positively impacts the environment as the efforts reduce Nordex’s carbon footprint. The reduced use of energy and resources helps to further limit their greenhouse gas emissions. As Nordex continues to expand, they are able to produce more wind turbines. Generating electricity using wind turbines is renewable. If there is excess wind some day, this energy can be stored to be used when the wind supply is lower.

Nordex has set a goal to prepare a Life Cycle Analysis (LCA) for relevant turbines. These LCA reports take into account the whole production process up until a turbine can no longer be used and needs to be recycled. They are continually performing these analyses on more of their products to help gauge sustainability and environmental impact. In 2022, they completed an LCA for two more turbines, which concluded very low carbon footprints of 5.5 and 2.7 g CO2e / kWh, respectively.


Business benefit

Nordex’s innovation to sustainably produce renewable energy-producing machinery benefits the firm in generating higher revenues. Nordex’s ultimate goal now is to make money by being dedicated to sustainable energy generation. Our interviewee believes that Nordex had the intuition that energy was going to be a valuable asset over the years because, in the end, energy is like gold. This identification of problems and innovative solutions of Nordex has helped them achieve financial goals.

Innovation and research development have helped Nordex to generate 5.7 Million EUR of revenue in 2022. Most of this revenue is created by producing turbines that generate electricity with wind power. It develops, produces, sells, and installs onshore multi-megawatt wind turbines and complete systems. The company provides the control software and main core components and provides related services to the maintenance and installation of their products. Not only that, Nordex has over 1900 employees in Spain itself. They have influenced employees to use renewable energy too, by providing electric vehicle charging options. This benefits the business as it creates an environmentally responsible image for consumers and their employees, which can build trust and respect for their organization and operations.


Social and environmental benefit

Nordex’s innovation has already impacted the society of various countries and the global environment. This is achieved as they use renewable energy without polluting the environment, unlike competing plants. As a large firm, they have produced hundreds of MegaWatts of power which are produced in an environmentally friendly way. They have operated from Mediterranean operations to solar energy and hydraulic power plants. Instead of using fossil fuels, energy is created in a renewable manner, which is more sustainable in the future and creates less pollution during the production process. In doing so, Nordex reduces their carbon footprint which has a positive impact on the environment.

The utilization of renewable energy sources in generating electricity has impacted society as it stimulates economic growth, generating jobs and attracting investment. Furthermore, by promoting cleaner air and minimizing harmful production processes, it contributes positively to public health. Embracing sustainable practices not only addresses current energy demand but also ensures a greener and more resilient future for society.

Contribution to UN Global Goals for Sustainable Development

Nordex is a leading player in renewable energy and Nordex achieves many of the UN Global Goals for Sustainable Development. One goal that Nordex contributes significantly to is the 7th goal “Affordable and Clean Energy”. Using their innovations of harnessing wind energy, which have been discussed before, they now can supply 3181 MW of electrical power. To put things in perspective, 3181 MW can supply millions of households. It could meet the energy needs of a mid-sized city contributing to residential, commercial and public sector energy demand. This kind of impact helps to achieve SDG 11 “Sustainable Cities and Communities”. By providing efficient and reliable wind turbines, Nordex empowers companies to harness the power of wind, a clean and abundant resource, reducing dependence on fossil fuels. As mentioned before, these renewable energy innovations have helped Nordex to reduce costs, which could enable them to offer lower prices to consumers. Not only that, Nordex’s continuous efforts in research and development contribute to technological advancements that have enhanced the efficiency and affordability of wind energy solutions. All of these factors positively contribute to achieving SDG 12 “Responsible Consumption and Production”.

To conclude, affordable and clean energy is the most related goal for this innovation. Fortunately, this goal has created positive domino effects and has impacted other UN goals too. Clean energy use and the promotion of renewable energy sources help with SDG 13 - “Climate Action”. Nordex’s commitment towards renewable energy and to reducing their carbon footprint has already been proven as they have reduced electricity consumption and the use of non-renewable energy sources in their production methods. The promotion and generation of renewable energy sources is at the forefront of Nordex’s mission and they are making real strides in this industry, highlighting their dedication to achieving these SDGs.


Interview

Don Miguel Angel Jorge, Director

Business information

Nordex

Nordex

Acciona, Worldwide
Year Founded: 1985
Number of Employees: 5001 to 10000

Nordex is a company involved in wind energy and the production of wind turbines. Although wind turbines are a reliable form of clean and sustainable energy, they require an abundance of materials to be built, which can have a negative effect on the environment. Therefore, Nordex is committed to developing innovative and sustainable practices to decrease the carbon footprint of wind turbines in every stage of development. Nordex is committed to achieving a greener future and innovative technologies related to wind energy.