Extending the functional lifespan of ETS Colibri expansion valves by utilising SMART cycle monitoring
”The ready2LOOP accelerator programme has provided Danfoss with actionable insights and tools to operationalise our Rethink–Reduce–Recirculate framework for ETS Colibri valves. By identifying recirculation opportunities through SMART monitoring and take-back strategies, we can extend product lifespans, cut raw material dependency, and strengthen our position in sustainable HVAC solutions. This fresh perspective accelerates our 2030 circularity targets and increases revenue streams via increased competitiveness and data-driven reuse.”
- Kabileshkumar Cheetancheri, Senior Manager, Idea Incubation and Technology, at Danfoss
Opportunity
Danfoss can leverage its strong monitoring capabilities to integrate SMART usage tracking for ETS Colibri valves. By launching a pilot take-back and recirculation system through its established B2B network, the company can move from bulk scrapping to high-value component reuse.
Path
The transition starts by logging usage data via existing QR codes to establish a functional lifetime foundation. Parallel to this, Danfoss will launch pilot take-back systems with Italian partners to collect, health-check, and sort valves at the end of an AC unit's life. The path concludes with scaling these "Rethink-Reduce-Recirculate" principles across the global portfolio to offer differentiated, data-backed circular services. This strategy supports Danfoss’s 2030 circularity targets while meeting tightening EU regulations.
Outcome
The primary outcome is market differentiation through a high-trust value chain that ensures reused valves maintain performance standards. This transition reduces raw material dependency and emissions while increasing circular revenue. By proactively aligning with EU regulatory trends, Danfoss strengthens its branding as a sustainable leader in the HVAC sector.
Context
Danfoss is a large, family-owned Danish manufacturer specialising in refrigeration, air conditioning, and heating technologies. This case study targets the “ETS Colibri” electronic expansion valves within the Climate Solutions segment. The geographical focus is the Italian air-conditioning market, where the company must navigate “EU Green Deal” requirements and “the Circular Economy Action Plan”. Danfoss has set ambitious sustainability goals through their “step-change” initiatives – Rethink-Reduce-Recirculate – including a 25% increase in circular business revenue and ensuring 80% of new products follow its circularity framework by 2030.
Opportunity
The ETS Colibri valves are technically ideal for circularity due to their metal-intensive, hermetic design and high cycle capability, which allow for multiple use cycles if their remaining lifetime can be documented. Danfoss has an opportunity to utilise SMART monitoring (tracking operations and cycles) linked to a digital product identity to quantify functional life and enable safe reuse in refurbished AC systems. Currently, Danfoss shows high readiness in monitoring but has not yet applied this to these specific valves.
Establishing a structured take-back system through existing B2B channels – such as OEMs and distributors – would allow the company to sort valves into high-quality recycling or reuse streams. This initiative would differentiate Danfoss in the HVAC market by offering longer-lasting, data-backed components that lower the total cost of ownership for OEMs.
Transition path
The recommended path involves building a data-driven closed-loop system in phases. In the short term, Danfoss should use its existing sensor infrastructure to log basic usage data (cycles and hours) associated with each valve's unique QR code and cloud registry. This foundation allows for the estimation of remaining functional life and the definition of reuse criteria.
Simultaneously, Danfoss should initiate pilot take-back collaborations with Italian OEMs and service partners, using existing service visits and warehouse hubs as collection points for end-of-use valves for AC units. Returned valves would undergo health checks and be sorted for reuse or recycling. Eventually, the model can scale to include commercial offerings, such as discounted pricing for certified reused units (40-60% below new) and warranty-backed resale to support customers with emerging Digital Product Passport requirements.
Finally, scaling the approach across product variants and regions would allow Danfoss to operationalise its Rethink-Reduce-Recirculate principles on a portfolio level, increase circular revenue from valves, and offer OEMs a differentiated, data-backed circular component service. Additionally, extending the initiatives to markets worldwide strengthens Danfoss’ global position in circular climate solutions.
Outcome
Facilitating a take-back system for AC unit manufacturers that purchase ETS Colibri valves, creates value for Danfoss in numerous ways. By extending the lifespan of each valve from the lifespan of the AC unit to the actual functional lifetime of the component, the valve becomes more valuable for the customer. If the reuse and recirculation is made easier for large customers, Danfoss becomes more competitive in the HVAC industry. By leveraging the already existing infrastructure for data logging, high quality performance can be ensured even though the valve has been used previously. Furthermore, buying into the whole Danfoss package solution offers market differentiation and even lower expenses for OEM customers.
Additionally, Danfoss’ sustainable reputation and branding is strengthened by the initiative for various reasons. Firstly, manufacturing processes are reduced through sorted recirculation streams, which reduce Scope 1 emissions from new valve production and Scope 3 emissions from disposal. Secondly, the initiative demonstrates actual commitment to Danfoss’ Circular Economy strategy and Rethink–Reduce–Recirculate principles and moves beyond statements to tangible action. Thirdly, regulatory foresight regarding upcoming ESPR, EPR and other EU regulations helps future-proof Danfoss business models, positions them as an industry role model with a circular image, and increases their competitiveness.
Reflections
The proposal assumes Danfoss can accurately predict valve failure based on usage data and that Italian partners will be motivated by economic incentives to participate. While OEMs must invest in logistics and training, these costs are expected to be offset by the savings gained from component reuse.
Next step
Danfoss should launch an Italian pilot project with two to three OEMs to validate reuse criteria through six-month field tests. Success in these trials will support the development of commercial recirculation models and the expansion of the program to other regions and components.
Micro-Accelerator. January 2026 - offered by ready2LOOP & DTU Course, Design for Circular Economy
Company
Danfoss A/S
Focus area for transition path
Technology & Data
Component Manufacturers
Takeback & End-of-Life Strategies
Component Manufacturers
