Greenhouse Gases

Author: Ray Gluckman

Organisation: SKM Enviros
Created: December 2012
Last updated: May 2013

Action Plan
Optimising refrigeration in the food and drink sector
This Action Plan is intended to be used by a senior individual within an operations function in
the food and drink sector.
Key Messages:
 Save up to 40% on energy costs and related CO2e emissions through better operation,
maintenance and technical improvement
 Save up to 100% of refrigerant related CO2e emissions through improved leak
management and use of alternative refrigerants

Overview
Refrigeration is used in many areas of the grocery supply chain; in particular in manufacturing, transport, bulk
storage and retail. In terms of both energy use and CO2e emissions, refrigeration is the most important utility
in food and drink manufacturing and retail operations. This action plan explains how to improve the
management, operation, maintenance and design of refrigeration systems so you can benefit from significant
cost savings, as well as large reductions in CO2e emissions.

Refrigeration systems create two distinct types of CO2e emission. The largest is the “indirect” emission from
the electricity used. The remainder is the “direct” emission from refrigerant leakage. Refrigeration creates
i ii
over 50% of the CO2e emissions of supermarkets and up to 80% in frozen and chilled food manufacture, meat
processing and cold storage. It is also significant in sectors such as confectionery, brewing, soft drinks and
dairy. With increasing energy prices, and new refrigerant regulations, there are strong drivers for
improvement which will deliver both reduction in impacts and lower costs.

Opportunities
There are a number of areas where refrigeration efficiency can be improved, including:
 Behavioural changes to improve plant operation (e.g. better temperature control) and maintenance
 Technical changes to existing plants and to new equipment being purchased
 Interactions with your upstream and downstream supply chain (e.g. harmonisation of temperatures)

Direct Emissions Indirect Emission

(refrigerant leakage) (energy efficiency)
Saving potential: 50%iii Saving potential: 25%iii
Existing Key measures: Key measures:
Systems a) Management to reduce leakage a) Better operation and maintenance
b) Investment to convert from R404A b) Investments to improve efficiency
iii
Saving potential: >90% Saving potential: 40%iii
Key measures: Key measures:
New
a) Use of very low global warming potential a) Optimisation / reduction of cooling loads
Systems (GWP) refrigerants b) High efficiency system design
b) Use of very low leakage design
 Author: Ray Gluckman
Organisation: SKM Enviros
Created: December 2012
Last updated: May 2013
Understanding Refrigeration Opportunities
To maximise these opportunities, it is useful to categorise them in the framework of the above table i.e. you
should separately identify refrigerant leakage and energy efficiency opportunities and be aware that the
greatest opportunities exist when new plant is being purchased.

a) Direct Emissions from Refrigerant Leakage

The most widely used refrigerants in the grocery sector are hydrofluorocarbons (HFCs), such as R404A and
R134a. HFCs have very high Global Warming Potential (GWP) as greenhouse gases – up to 10,000 times the
impact of carbon dioxide – and hence even small losses can result in a significant impact. Many refrigeration
systems have significant refrigerant emissions through leakage during operation and losses at end of life. You
should consider both of the following approaches to reducing direct emissions:

 Leak reduction campaigns. Levels of leakage may be high, especially for older retail and industrial
systems. Behavioural changes including better leak checking and maintenance will reduce leakage
quickly and cost effectively – and ensure compliance with the EU F-Gas Regulation. When purchasing
new equipment a few small design changes can ensure that leakage is much reduced from the levels
found in older equipment.

 Use of alternative refrigerants. It is essential that R404A is avoided in all new equipment as it has both a
high GWP and not very efficient. The best option is to use a very low GWP alternative such as ammonia,
CO2e or hydrocarbons. Unfortunately they introduce a number of potential safety and practical issues, so
they are not suitable for all grocery systems. In such circumstances, “medium GWP” refrigerants can be
considered for new plants; when combined with a low leakage design the direct emissions can be reduced
by a factor of at least five. Existing plants running on R404A may be suitable for conversion to a refrigerant
with about half the GWP of R404A, such as R407A or R407F.

b) Indirect Emissions from Electricity Used

i
Electricity usage creates around 65% of the total CO2e emissions from grocery sector refrigeration. Better
iii
operation and maintenance of existing plants can usually save 10% to 20% of the energy used. Investments in
more efficient equipment can double the saving potential, especially if you are buying new refrigeration plant.
Some key aspects of improved efficiency are:

 Better understanding of current energy use. Given the importance of refrigeration in many
manufacturing and retail facilities, it is recommended that sub-metering of electricity is carried out. This
will provide data not only on the average energy use but also how it varies on seasonal and daily
timescales.

 Better understanding and optimisation of the cooling load. Some loads can be eliminated altogether –
e.g. through “free cooling”, where a hot product can be pre-cooled without refrigeration e.g. using
i
cooling tower water. Adding doors to retail refrigerated displays can also reduce the load by 30% .
Harmonising temperatures across your supply chain can avoid “over-cooling” which is wasteful. Some
loads can be reduced by better temperature control, and efficiency can be optimised by ensuring that
loads at different temperature levels are not cooled with the same system. Most loads vary significantly
on daily and seasonal timescales – if the plant operating regime doesn’t take such variations into account
efficiency is likely to be poor. It is vital to fully understand the nature of the cooling load and the way it
influences energy usage.

 Better maintenance and operation. Frequent maintenance related problems and poor operational
control can cause a significant loss of efficiency. Identifying and fixing such problems creates big savings.

 Better system and component design. Refrigeration systems are complex and consist of numerous
components such as heat exchangers and compressors. Good design of the whole system and good
 Author: Ray Gluckman
Organisation: SKM Enviros
Created: December 2012
Last updated: May 2013
selection of individual components are crucial, especially when purchasing new plant, and expert advice
should be obtained to size plant correctly for the proposed application.

Implementation Process
Aim: 3 key steps will help to minimise direct and indirect CO2e emissions from refrigeration systems and to
reduce energy costs.

Step 1 Step 2
Step 3
Better Actions:
Actions:
Management Existing Plants
New Plants
Information
Establish equipment Improved behaviours: Select plant for low emissions:
inventory and collect Regular leak testing and Use low GWP refrigerant
regular data about use of repair Ensure design is low leakage
Direct refrigerant Appropriate investments:
Emissions Replace “leaky” components
Retrofill R404A where
possible

Regular collection and Improved behaviours: Optimise the cooling

analysis of plant
performance data. In
depth audits of cooling
Indirect
loads, plant efficiency and
Emissions
supply chain
temperatures.
Regular monitoring / analysis
Improve control settings
Improve maintenance
Appropriate investments:
Reduce cooling loads
Invest in new components
requirement:
Minimise cooling loads
Correct operating
temperature
Select plant for highest
efficiency:
High efficiency at part load
High efficiency components

Step 1 – Better Management Information

A crucial start point is to get comprehensive information about your refrigeration plants and the way that they
operate, in order to diagnose problems and to support investment decisions.

 To manage direct emissions requires data about refrigerants being used and leakage rates and causes.
 To manage indirect emissions requires information about the way each plant is operating. This includes
energy data and other measurements such as pressures and temperatures in the system. You should also
seek information about the key “influencing parameters” such as production throughput and the
weather.
 A cooling load audit can help to identify ways of reducing the cooling load and improving operating
settings such as temperature levels.
 A refrigeration plant efficiency audit will identify any maintenance or design problems.
 Check the temperature requirements in your supply chain to ensure your operating temperatures are
harmonised with others.

Step 2 – Actions: Existing Plants

Use the management information to establish and implement an action plan. A business case can be built
around cost savings, reduced CO2e emissions and improved compliance.

 To reduce direct emissions there should be a programme of leak testing and repair. “Rogue” plants and
components can be identified and given extra attention. All R404A plants should be reviewed for the
possibility of retrofilling with a medium GWP refrigerant such as R407A or R407F. These refrigerants
have less than half the GWP of R404A and can often deliver a 10 per cent to 15 per cent improvement in
 Author: Ray Gluckman
Organisation: SKM Enviros
Created: December 2012
Last updated: May 2013
efficiency in a well-managed retrofit programme. In many situations this efficiency improvement will
provide sufficient energy savings to give a good payback period on the investment required to convert to
a new refrigerant – and the GHG emissions can be reduced at the same time
 To reduce indirect emissions requires a well-coordinated programme that uses monitoring data to assess
plant efficiency and to identify operational or maintenance issues. A plant efficiency audit can be used to
prioritise capital investments that can reduce cooling loads and improve refrigeration efficiency.

Step 3 – Actions: New Plants

It is important to recognise the extra opportunities when purchasing a new plant which can consider things
that are impossible or not cost effective on existing systems. Ensure the business case for “smart purchasing”
is given high priority – i.e. before buying a new plant carry out a thorough appraisal of design options and take
a whole lifetime cost approach, taking account of the operational costs as well as the capital cost of new
equipment. Avoid using high GWP refrigerants and design the system for low leakage. Ensure the plant is
designed for maximum efficiency – extra capital to improve efficiency is usually a very worthwhile investment.
 Author: Ray Gluckman
Organisation: SKM Enviros
Created: December 2012
Last updated: May 2013

Benefits
Benefits Supply Chain Sector
Environment Cost Other Producer Manufacturer Distribution Retailer
 Refrigerant (CO2e) – reduced  Lower energy costs (25% to  Increased compliance On-farm systems e.g. Process cooling and Large cold stores and Retail displays
“direct” emissions via lower 40% saving potential) with refrigerant milk cooling, crop bulk storage refrigerated In-store bulk
leakage and use of low GWP  Lower refrigerant costs Regulations cooling transport storage
alternatives (50% to 100% saving  Lower breakdown costs  Improved plant
The benefits are similar in all parts of the supply chain. Refrigeration systems on farms
potential)  Lower capital costs for reliability
are generally quite small and form a very small % of CO2e footprint. In manufacture,
 Electricity (kWh) – reduced some efficiency measures distribution and retail refrigeration is highly significant in terms of CO2e and cost.
“indirect” emissions and energy (e.g. doors on display cases)
use via better energy efficiency
(25% to 40% saving potential)

Barriers
Barrier Description
Financial The main financial barriers are the lack of funds for investment and the demand for short
Barriers payback periods. Also, there is a reluctance to switch to more expensive new technologies.
Lack of A key issue is lack of awareness of the best opportunities amongst end users of
Awareness refrigeration in the food chain. Many end users are confused by the range of different
opportunities and unable to select those that are most relevant to their circumstances and
will give them the most benefit. This problem is exacerbated by the rate of technological
change in relation to both refrigerants and energy saving technologies.
Technological Substantial technological barriers include shortages of technicians and engineers skilled in
Barriers producing or maintaining alternative technologies, lack of information on emission
reduction opportunities and little UK manufacture of novel refrigeration technologies.
Commercial Some end users are concerned about the impact of efficiency measures on business and
Barriers sales. This especially relates to opportunities such as retail display case doors. It also
relates to techniques such as free cooling, with concerns about product quality.
Mitigation
Producer Manufacturer Distribution Retailer
Longer term view on payback periods (e.g. four years instead of two). More
sophisticated financial projections including likely increases in energy costs.
Better information from Government, Trade Associations etc. Collaborative
initiatives across supply chain to share information and success stories. Good
independent monitoring of new technologies to help with commercial
development and rapid uptake.
More encouragement of technician training, especially in new technologies
such as CO2e refrigeration. Better information for professional engineers
involved in refrigeration plant design / selection or operation / maintenance.
Regulatory or voluntary initiatives related to technologies such as display
case doors. Sharing of information about free cooling opportunities.
 Author: Ray Gluckman
Organisation: SKM Enviros
Created: December 2012
Last updated: May 2013
Case Studies

ASDA: Refrigerant Leakage Reduction

ASDA have undertaken a very successful programme to reduce leakage from their retail refrigeration systems.
This programme was applied across their whole retail estate and has included:

 Collection and analysis of refrigerant usage data for each piece of equipment
 Regular leak testing and repair of all leaks identified
 Extra investments in “rogue” plants with high leakage
 New low leakage specifications for all new systems and improved management of installation
 Avoidance of R404A in new systems and conversion of some existing systems to R407F

The results have been dramatic, as illustrated below. Current average leakage for the whole estate (2012) is
8%. CO2e emissions have fallen by nearly 70% since 2005. Systems built with the new low leakage
specification have, since 2007, reduced CO2e emissions to 90% below the 2005 average.

ASDA Refrigerant Leak Rates

(average across whole estate)
25
% Leakage per year

20
15
10
5
0
2005 2011 2012 New from 2007

Co-Op: Use of Doors on Chilled Displays

Most chilled food is sold from open display cases, causing high energy consumption and often creating a “cold
aisle” which is unpleasant for shoppers. Putting doors on display cases has a dramatic impact – reducing
energy consumption by around 30%. For new stores this measure saves capital cost as the refrigeration plant
can be made smaller. Retailers have been reluctant to use doors, concerned that customers will not feel
comfortable accessing goods behind closed doors. The Co-Operative supermarket saved £50m in reduced
energy costs over a 10 year period by fitting doors at 100 of its stores.

The perceived issue of customer access was resolved by installing LED lighting around the fridge doors.
“Customers said it brought the product to life,” said Dave Roberts, the company’s Property Director. “In no
places where we have put doors on fridges have sales gone down.”
 Author: Ray Gluckman
Organisation: SKM Enviros
Created: December 2012
Last updated: May 2013

Resources
1. British Frozen Food Federation, 2010, “A Food Vision”. An overview of the UK frozen food market.
http://www.bfff.co.uk/sites/default/files/bfff_for_web_new.pdf
2. Defra and SKM Enviros, 2011, “Examination of the global warming potential of refrigeration in the food
chain”. This report provides comprehensive background to the GHG emissions from food chain
refrigeration systems and describes how emissions can be reduced.
http://randd.defra.gov.uk/Default.aspx?Menu=Menu&Module=More&Location=None&Compl
eted=0&ProjectID=17424
3. FDF and others, 2007, “Food and Drink Industry Refrigeration Efficiency Initiative”. This project
provides a range of useful reports including a number of practical guides about ways to reduce energy
use and GHG emissions from food manufacturing refrigeration systems.
http://www.ior.org.uk/VJEQN5TPAG
4. FRPERC and others, 2009, “Study on reducing energy inputs into refrigeration of food”. A university
consortium project investigating refrigeration efficiency opportunities in the food chain.
http://www.grimsby.ac.uk/industry/DEFRA-Dissemination.php
5. IOR, BRA, Carbon Trust, 2010 “Refrigeration road map for the food retail sector”. A detailed review of
opportunities to reduce direct and indirect GHG emissions from supermarket and small retail systems.
http://www.ior.org.uk/OZJ4M5NM
6. IOR, BRA, Carbon Trust, 2011 “Code of Conduct for Carbon Reduction in the Retail Refrigeration Sector”.
a voluntary Code of Conduct designed to help businesses work towards reducing carbon emissions in
retail refrigeration
http://www.ior.org.uk/retail-refri
7. IOR and Real Skills Europe, various dates, Real Zero campaign information and literature on reducing
leakage. A comprehensive range of guidance documents related to reducing leakage from refrigeration
systems. http://www.realskillseurope.eu/
8. SKM Enviros, 2010, “Eco-efficiency study in supermarket refrigeration”. A comparative evaluation of
various design options for supermarket refrigeration systems including CO2 and HFC designs.
http://www.epeeglobal.org/epeedocs/internet/docs/Excerpt_of_Eco-
Efficiency_Study_on_Supermarket_Refrigeration_4472.pdf

You may also be interested in these related Action Plan/Topic Guide(s):

 How to participate in the closed loop economy through waste exchange
 Harmonising smart planning (manufacturers) and demand forecasting (retailers
 Author: Ray Gluckman
Organisation: SKM Enviros
Created: December 2012
Last updated: May 2013

Appendix: How to calculate the financial business case

Establishing the financial business case for changing your refrigeration system requires the consideration of a
number of inputs to understand the whole life cost implications of the decision. These considerations are
summarised as being those related to:

1) Recurring annual cost of running equipment

2) System failure cost to the business
3) Intervention cost for the procurement and installation of new equipment

Recurring annual cost

Before you begin assessing the cost of changing to a new system, you should calculate the recurring costs of
running your existing system. This process is important for identifying the current costs to the business, and
for projecting potential savings by switching to a more efficient system.

Cost Area Description

Energy use Cost of electricity (or other energy) required to run refrigeration
Energy

units. Calculation should include the expected change in energy

costs over the period considered.

CRC levy Carbon Reduction Commitment (CRC) levy for energy use.
Calculation should include the expected change in CRC levy over the
period considered.
Taxes

Climate Change Agreement Climate Change Agreement Levy based on CO2e emitted over agreed
levels. Calculation should include the expected change in the levy
over the period considered.
Minor maintenance visits Contractors visiting for regular or irregular minor issues e.g.
Maintenance

fan/evaporator cleaning.
Refrigerant leak Regulatory checking for leaks and replacement of refrigerants.
checking/replacement
Major maintenance events Contractors visiting for major maintenance events e.g. condenser
replacement.
Salaries and management Salary and management costs for the operation of refrigeration
Operating

equipment.
Costs

The same cost analysis model and questions should be applied to the new system’s operation to quantify the
recurring cost of operation.

The outputs of your financial business case analysis should be presented in the context of your business. A key
attribute of any presentation is the assessment of payback periods for investing in a new system. By dividing
investment costs by the estimated savings you will calculate the number of years needed to run your new
system before the investment costs result in a real savings for the business.

Note: Energy price fluctuation and inflation may also have an impact on future cost projections. Where this
may be relevant, consult an authoritative source for estimating impacts (e.g. DECC).
 Author: Ray Gluckman
Organisation: SKM Enviros
Created: December 2012
Last updated: May 2013
System Failure
You may wish to consider including in the analysis the implied costs embedded in the risk of refrigeration
failure. In many cases, a factory line, or supermarket may need to shut down completely if there’s a failure in
the refrigeration plant. This cost can be estimated through assessing the potential cost to the business of a
shut down and combining this with an estimate of the probability of it occurring.

Cost Area Description

Lost revenue The cost to the business as a whole of refrigeration failure (e.g.
supermarket closure) multiplied by its probability of occurring.
Refrigeration
Shut -Down

Calculation should include the expected change in failure probability

over the period considered.
Repair The cost of repairing refrigeration shut-down multiplied by its
probability of occurring. Calculation should include the expected
change in failure probability over the period considered.

Intervention cost
The cost of any required investments for a new scheme will need to be included. These may include
expenditure on new equipment (e.g. monitoring devices, new refrigeration plant), cost of installation of any
new equipment, the cost of disposing of old/existing equipment, and the cost of training new staff and
management to use new systems (including reduced efficiency while workers adjust to new systems).

Cost Area Description

Procurement Purchase and delivery cost of any new equipment/software.
Investment

Installation Contractor labour fees.

Disposal Cost of disposal of old equipment.
Staff training Time spent by workers and management to learn use of new
systems/processes. Cost should include reduced worker/system
utility while adapting to new systems/processes.
See Recurring Annual Cost Projected costs of operating the new and/or improved system.
Operating

section above
Costs

Template
A cost/benefit template spreadsheet can be downloaded from the PSF Knowledge Base, designed to
be used for calculating the business case, and tailored using the considerations mentioned above.

i
IOR, BRA, Carbon Trust, 2010 “Refrigeration road map for the food retail sector”
ii
FDF and others, 2007, “Food and Drink Industry Refrigeration Efficiency Initiative”
iii
Defra and SKM Enviros, 2011, “Examination of the global warming potential of refrigeration in the food
chain”