STATE-OF-THE-ART ENERGY EFFICIENCY

IN REFRIGERATED WAREHOUSES

Marcus H. Wilcox, P.E.

Cascade Energy Engineering, Inc.
6½ N. 2nd Ave., Suite 310
Walla Walla, WA 99362

Introduction

This paper presents current state-of-the-art energy efficiency for refrigerated warehouses. These
technologies are applicable to a wide range of facilities, including distribution centers, controlled
atmosphere, freezer warehouses, and cooler warehouses. First, a general summary of
opportunities will be presented. Then, some of the more unique, emerging, or even controversial
opportunities will be discussed in detail. Finally, several case studies will show what levels of
savings and final economics are possible.

Background Information

Despite the promise of an excellent investment, energy efficiency often takes a back seat to other
issues during the design or operation of a refrigerated warehouse. This despite the fact that
energy can gobble up a significant portion of annual warehouse operating budgets.

What is astounding is that through a comprehensive design or retrofit process, energy use can
often be reduced by as much as 50%. With today’s financing, rebates, tax credits and other
options, companies could be aggressively pursuing energy efficiency. In reality, the industry
continues to build and operate facilities that frequently use much more energy than necessary.
Aging design rules-of-thumb based on TR/ft2, established corporate design specifications, and
“stuck-in-the-mud” engineering often result in a facility with a major performance handicap.
Others in the industry that design around energy efficiency are able to offer lower lease rates,
better control, and ultimately a better product.

Consider some statistics. According to the USDA Agricultural Statistics Board1, there is
approximately 2.5 billion gross cubic feet of refrigerated storage capacity in the United States.
Recent IARW2 surveys show an average of 1.6 kWh/ft3-yr in this industry, meaning those
refrigerated warehouses use approximately 4 billion kWh/yr. This is equivalent to all the energy
produced by Hoover dam3 and (based upon statistics from the Department of Energy’s Energy
Information Administration4) 0.4% of all electricity used in the U.S. industrial sector. With an
average industrial energy rate of 5.5 ¢/kWh2, the annual cost for this energy is approximately
$220,000,000/yr.

These numbers make it clear that the potential for energy savings in the refrigerated storage
sector is dramatic. The questions are; 1) how to make efficiency a priority during new
construction, and 2) what is the current state-of-the-art when it comes to energy efficiency in
refrigerated warehouses?

1
General Categories

Most energy efficiency measures (EEMs) that are applicable to refrigerated warehouses fall into
one of three categories:

1. Simple or Obvious EEMs: Additional insulation, increased coil & condenser surface area,
efficient motors, reduced head pressure and the like. These improvements have always been
around, and continue to be worth consideration. In general, economic analysis and industry
acceptance are simple and well known, respectively.

2. Generally New EEMs: Computer control, thermosiphon oil cooling, fast-acting doors and
the like. These technologies have really come into their own in the last 5 to 10 years. Still,
whether on a retrofit or new construction-basis, these technologies are often discarded in the
interest of being low bid, staying within budget, or other common and frequently
understandable circumstances.

3. Cutting-Edge EEMs: Technologies such optimized control algorithms, defrost heat pumps,
bi-level lighting, and variable frequency drive (VFD) control on evaporator fans, screw
compressors, and condenser fans. Despite excellent case studies, research and other evidence
of promising performance and economics, these technologies have yet to significantly
penetrate the refrigerated warehouse market.

Discussion of Opportunities

At this point, let’s generate a list of candidate EEMs:

• Upgraded Insulation
• Fast-Acting Doors
• Bi-Level (Dimming) Lighting
• 15°F Design Evaporative Condenser Approach
• 8 to 10°F Design Coil TD
• Diverse Selection/Sizing of Compressors
• Diverse Suction Systems
• Selecting Condenser at 300+ MBH/hp
• Thermosiphon vs Liquid Injection Oil Cooling
• Aggressive Minimum Condensing Pressure
• Defrost Heat Pump
• Computer Control
• Condenser Fan VFD Control
• Evaporator Fan VFD Control
• Screw Compressor VFD Control

Although this list is not exhaustive, it does provide a general roadmap. Highlights and design
issues will now be briefly discussed for each improvement.

2
Upgraded Insulation

During new construction, consider upgrading envelope insulation. Often, the incremental cost is
modest and some of the upgrade cost is offset by reduced design loads for evaporators,
compressors and condensers. Be sure that the refrigeration contractor and electrical contractor
provide credit for these changes. In addition, ask the insulation vendor to provide new and
“aged” values for insulation. Anyone willing to put a guarantee of aged insulation R-value is
saying something about their product.

Fast-Acting Doors

Fast-acting doors typically cost $10,000 more during new construction, or between $12,000 to
$14,000 as a retrofit. Double-check door manufacturer’s claims of energy savings by using
ASHRAE-approved analysis methods. Fast-acting doors reduce the time-average peak
refrigeration load, and proper analysis will include credit for reduced design refrigeration loads.
One major caution; carefully examine the requirements for warm air blowers (to defrost clear
windows) as well as resistance heaters for warming gear oil. A single door can have 2500 to
3500 Watts of load, which will completely offset the infiltration savings, or possibly provide a
net energy increase! Push the manufacturer to provide low-temperature oil, and make other
changes to reduce or eliminate these parasitic loads.

Bi-Level (Dimming) Lighting

One of the most underutilized opportunities, bi-level lighting works extremely well in
refrigerated warehouses where lighting requirements are high, yet occupancy can be lean at
times. Both metal halide (white) and high pressure sodium (yellowish) fixtures can be ordered
with bi-level control. These fixtures are equipped with modified ballasts, capacitors and control
modules to respond to motion detectors. When inactivity is sensed for a user-selectable period
(from 1 to 15 minutes), the fixture dims. When traffic is sensed, the fixture quickly comes up to
high output. Although performance varies between manufacturer as well as type and wattage of
fixture, power typically is reduced by 50% or more when dimmed.

Bi-level lighting is provided by a multitude of lighting product vendors, including WideLite, GE,
Holophane, Spartan, Enerex, Duraguard, Lithonia, and others. What is important to note is that
some manufacturers provide fixtures that dim much more effectively than others, that dimmed
wattage can be heavily influenced by lamp manufacturer. Be sure to carefully investigate the
fixture (not lamp) input power when dimmed. In addition, make sure you are comparing
nominal or average watts between manufacturers.

Agressive Evaporative Condenser Approach

Unless carefully spelled out, refrigeration contractors typically select condensers at 95°F
condensing temperature for a 70°F wet bulb area. Selection of the unit at 85°F not only reduces
compressor energy use, but often allows smaller compressor motors and starters to be selected.
Be sure that the refrigeration and electrical contractor provides a bid credit for these changes.

3
8 to 10°F Design Coil TD

The benefit of increased evaporator surface area is twofold. First, a higher design suction
temperature can be used during compressor selection. Smaller compressors are required. In
addition, surface area can be used in lieu of massive coil airflow to provide the required cooling.
Fan savings and a quieter work environment are important. In addition, increased coil capacity
ensures more effective evaporator fan cycling, or trimming with 2-speed or variable speed fans.

Diverse Selection/Sizing of Compressors

Usually, low bid is obtained by providing the fewest compressors to meet the job.
Unfortunately, this typically results in a small number of large compressors that are close in size.
Rather, make a selection of compressors that can be optimally staged. For example, select three
compressors supplying 1/6, 2/6 and 3/6 of total design load respectively. This ensures staging of
compressors with jumps of no more than 1/6 the capacity of the entire system.

Diverse Suction Systems

Freezer warehouses and distribution centers are notorious for having ice cream rooms that
require a low suction temperature. To keep cost low, most of these facilities are designed with a
single low-temperature suction serving both the ice cream and main freezer areas.
Unfortunately, this additional 10°F lower suction can increase booster energy by 20%, or single-
stage economized energy by 15%. Instead, install a small, dedicated compressor to handle the
ice cream room, and design the rest of the system around the main freezer. This works
especially well when using a two-stage system.

Selecting Condenser at 300+ MBH/hp

Evaporative condensers come in frame sizes. If one plots the heat rejection per unit fan and
pump horsepower (in MBH/hp), it is easy to see that there is typically a 2:1 ratio between the
units early in the frame size versus the largest unit in the frame size. This is because for the
largest units, additional capacity is being added primarily with airflow. Be sure to specify a
rating of 300 MBH/hp or higher (based on nominal heat rejection ratings), and always choose an
axial fan unit over centrifugal if at all possible. In general, centrifugal fan units can require 50%
to 100% more fan horsepower for comparable heat rejection.

Thermosiphon vs Liquid Injection Oil Cooling

Liquid injection oil cooing can impart a BHP/TR penalty ranging from 1% for booster screw
compressors to over 10% for single-stage economized screws operating at low suction pressure.
However, there is often a greater penalty. Some liquid injection systems require a minimum
system condensing pressure of 125 psig or greater to function properly. This restriction to
minimum condensing pressure will increase compressor energy use.

4
Another option is the use of a closed circuit glycol loop within the condenser. This will
eliminate the energy-related penalties, with the added benefit of reduced ammonia charge and
improved stability.

Aggressive Minimum Condensing Pressure

Standard design procedure is concerned about peak summer condensing pressures. However,
most systems (particularly in moderate to cool climates) spend thousands of hours per year at the
minimum condensing pressure allowed by pressure switches, computer control, or manual
condenser fan operation. It is extremely beneficial that the system be allowed to float down to
90 psig or lower when ambient conditions allow.

Typical reasons for maintaining a higher minimum condensing pressure include hot gas defrost,
liquid feed, and oil separator performance. Fortunately, every barrier to low minimum
condensing pressure has a solution. In fact, during new construction, provide both a maximum
and minimum condensing pressure in the bid specification. Allow the refrigeration contractor to
creatively deal with any potential problem.

Defrost Heat Pump

Hot gas defrost is a common reason why minimum condensing pressure is maintained at an
artificially high level. Despite the fact that most defrost regulators are set in the range of 75 to
85 psig, many of these systems are held at a minimum of 125 psig, 150 psig or even higher to
ensure an adequate defrost. Our experience has shown that most systems can set the defrost
regulators for 75 psig, and operate at 90 psig minimum condensing pressure.

For those systems that have chronic problems achieving adequate defrost, two options are
available. The simplest is to equip one high-stage compressor with a discharge pressure
regulator, and to pipe the defrost gas header to this dedicated machine. When a defrost occurs,
the regulator increases the discharge pressure (typically in response to computer control) of this
one machine, while the rest of the engine room operates at a lower condensing pressure.

The second option is to install a dedicated reciprocating compressor as a “heat pump”. This
machine draws its suction off of the high-stage (or single-stage) discharge header, possibly in the
range of 80 to 125 psig. This compressor then supplies all defrost gas. Even a small machine
will have tremendous capacity for refrigerant flow at this high suction pressure. In this way, the
rest of the engine room can operate at a lower condensing pressure.

Note: Be sure to dump the defrost return into the highest available suction. Dumping into the
intermediate versus booster suction (on a two-stage system) will substantially reduce the energy
penalty inherent in any hot gas defrost.

Computer Control

Although computer control has become common, some control systems perform poorly when
energy efficiency is examined. Issues such as fixed compressor sequencing rather than

5
optimized mix-and-match algorithms are commonplace. In addition, some control system
vendors have little experience with emerging technologies such as VFD control and optimized
algorithms. Make a checklist of important energy-related features, and make sure that the
control system provides more that a functional replacement for the pressure switches on the wall.

Condenser Fan VFD Control

Most condenser fans cycle hundreds if not thousands of times per year. This is hard on belts,
sheaves, bearings and motors. In addition, the aggregate deadbands of multiple fan stages result
in higher condensing pressures than necessary. Two-speed control is a step in the right direction,
although the best solution is VFD control. In this way, fan speed is continuously varied from 0%
to 100% speed to maintain target condensing pressure.

Two frequent shortcomings in computer control algorithms for condenser fan VFD control
include simultaneous ramping and wet bulb approach. It is extremely important that when
multiple condenser fans or condensers have VFD control, these fans should all be ramped
together at the same speed. This ensures maximum use of surface area and maximum savings
associated with the affinity laws (fan hp is proportional to the cube of speed).

Also, it is important that the control system utilize a wet bulb approach feature for management
of condensing pressure. That is, the system should target a condensing temperature that is a
user-selectable “approach” above the ambient wet bulb. In this way, even on warm days, the
condenser is applying an appropriate amount of condenser capacity to the heat rejection load at
hand. Typical setpoints for the approach are between 12°F and 18°F. Fine tuning this value will
guarantee the minimum combined compressor and condenser fan power.

Evaporator Fan VFD Control

Despite the frequent use of fan cycling, 2-speed fans and even manual shedding of fan capacity
on evaporator coils, the use of VFDs to reduce fan speed has been primarily limited to the Pacific
Northwest. Over 50 refrigerated warehouses now use speed control to trim evaporator fans with
excellent results. Due to the affinity laws, even a modest reduction in fan speed can save
significant amounts of energy. For example, many systems operate with a maximum fan speed
of 90%, and a minimum speed of 40%. Fan input power drops to 75% and 10% respectively at
these points.

This particular VFD application can be challenging for several reasons. The emergence of pulse-
width modulated (PWM) VFDs has placed increased demand on the insulation systems of fan
motors. The combination of fast transistor switching, long lead lengths, and multiple small
motors with a high impedance can create a circuit with voltage levels that can damage motor
insulation. Fortunately, nearly all motor manufacturers have improved existing insulation
systems, or have created entirely new lines of motors to manage the resultant voltage waveforms.
These motors comply with the NEMA MG-1 Part 31 specification for inverter-fed motors. In
addition, filtering products are widely available to ease the voltage-related stress on motor
windings.

6
In general, industry resistance to this technology has revolved around the age-old and often
misused term “throw”. While is some situations it is true that air movement is critical, nearly all
warehouses can safely and effectively utilize speed control with excellent results. In fact, in
areas with high electrical peak demand charges, entire facilities are often turned off for half a day
or more. Certainly, if all air flow can be turned off for this amount of time, a modest reduction
in speed could be considered?

Screw Compressor VFD Control

Screw compressors can have poor part load performance, particularly at low suction pressures.
A fully-unloaded compressor may draw 35% of full-load when unloaded with a suction pressure
of 30 psig. However, a single-stage economized screw operating at –40°F suction may draw
50% or more of full-load power when fully unloaded. In fact, some screw compressors utilizing
inlet throttling use 90% power when fully unloaded!

In general, screw compressors can be operated in the range of 1200 to 4500 rpm. Speed control
is desirable in that it allows trimming in capacity with a proportional reduction in shaft
horsepower. A VFD can be used to trim a compressor from 3600 rpm to 1800 rpm or lower
(depending on the manufacturer’s limit). Once at minimum speed, the compressor will continue
at the minimum speed and use the slide valve for additional capacity reduction. The improved
part-load curve can save substantial energy in systems where a compressor operates unloaded.

Two-speed motors have also been used in this category. Generally, two-speed motors and
starters cost slightly less than application of VFD technology. However, the trade-off is
flexibility.

The List Goes On……….

Obviously, this list could include a number of other improvements. Better gas-pressure pumping
systems, two-staging versus economized single-staging, proper volume ratio’s and other issues
can often arise. However, the list above represents issues that could be addressed for most
refrigerated warehouse systems.

Making Energy Efficiency a Priority

Many parties can affect the final design of a refrigerated warehouse. General contractors,
refrigeration contractors, electrical contractors, corporate engineers, and design consultants all
are able to make or break effective energy efficiency.

First, develop a corporate policy concerning energy efficiency. Look at the energy use of your
facility relative to your peers and see where you stand. Revenue can come and go with economic
trends. Energy cost, however, is always there and generally increasing.

Take advantage of utility rebates or financing programs. In addition, state tax credits or federal
grant programs are available to implement or experiment with energy efficiency.

7
Include an energy consultant as part of the design team for any new construction project. If
possible, include an “outsider” who has no interest in how much of, or what brand of equipment
you purchase. Avoid situations where a conflict of interest exists.

Get bids for energy efficiency alternates during the competitive bid process. Don’t wait until a
project is awarded and then ask for pricing on energy efficiency options.

If you are a refrigeration contractor, be open to new things. Often a simple field trial will flush
out the good technologies. A successful customer will expand their facility in the future, which
is good for everyone!

Case Study #1: Henningsen Cold Storage

In the Summer of 1995, Henningsen Cold Storage began the design process for a new 50,000 ft2
refrigerated warehouse. During this process, Henningsen’s corporate engineers hired Cascade
Energy Engineering to identify, assess and recommend any available energy efficiency upgrades
for the facility

An hourly refrigeration model was used to estimate energy use of the baseline building and each
improvement. The following upgrades made the final list for consideration:

Baseline Design Improved Design

4” Wall Insulation 6” Wall Insulation
5” Floor Insulation 6” Floor Insulation
10” Ceiling Insulation 15” Ceiling Insulation
Pull Cord Doors Fast-Acting Doors
Metal-Halide Lighting Bi-Level HPS Lighting
95°F Design Condenser 85°F Design Condenser
Cycling Condenser Fan Control VFD Condenser Fan Control
12°F TD Evaporator Sizing 10°F Evaporator Sizing
Constant Evaporator Fan Operation VFD Evaporator Fan Trimming
Two Large Screw Compressors Diverse Screw Selection
Liquid Injection Cooling Thermosiphon Cooling
Standard Efficiency Motors Premium Efficiency Motors
Electro-Mechanical Control Computer Control System
Slide Valve Computer Control VFD Compressor Trimming

All improvements were chosen for implementation, and in June, 1996, Henningson’s new
facility opened.

Following a rigorous verification process using power transducers and information from the
computer control system, annual energy savings was documented at 1,140,000 kWh/yr, a
reduction of 58% of total lighting and refrigeration energy. At an average energy rate of
$0.037/kWh and $4.20/kW-mo. for peak demand, annual cost savings came to $51,000.

8
The total cost for the energy efficiency upgrades came to $410,000. The Oregon Department of
Energy offered a tax credit worth $128,000 over 5 years, and Portland General Electric offered
an incentive payment of $64,500. Thus, Henningsen’s cost was reduced to $218,000, providing
a simple payback of 4 years.

After the first year of operation, the facility operated at 0.5 kWh/ft3-yr. This is nearly one-third
of the industry standard from IARW surveys. When compared to peer facilities in the range of
50,000 ft2, the facility’s performance is truly astounding. This project has received numerous
awards, and serves as an template for other facilities in the Pacific Northwest.

Case Study #2: Kenyon Zero Storage

Kenyon Zero Storage own several large refrigerated warehouses in Grandview, WA. Kenyon
participated in Pacific Power’s FinAnswer program, which offers free energy consulting and low
interest rate financing.

A detailed energy review by Cascade Energy Engineering showed that refrigeration system
energy use could be reduced by approximately 40%. Kenyon decided to implement the
following improvements in three warehouses:

• Computer Control
• Thermosiphon Retrofit/90 psig Minimum Condensing
• Evaporator Fan VFD Control
• Condenser Fan VFD Control

During January and February of 1998, Kenyon had the refrigeration contractor, electrical
contractor and control system vendor install the recommended systems. Since that time, monthly
utility bills were watched closely for each of the three buildings. Savings for each engine room
and associated building over the last 12 months were:

Complex Description Meter Savings

Lettig Complex Engine Room & 1 Storage 34% Savings
Standlee Complex Engine Room & 2 Storages 30% Savings
Building C9 1 Storage Served by Lettig ER 52% Savings

Note that these savings represent the entire building, including lighting and battery chargers.
Actual refrigeration system savings was as good or better than original predictions.

Through Pacific Power’s FinAnswer program, the upgrade cost of $375,000 was completely
financed. The savings over the last 12 months equaled $107,000. This provides a simple
payback of 3.5 years, and a net positive cash flow over the term of the financing agreement.

Kenyon ownership and management have been extremely pleased with the results of the project.
In fact, when building their newest 100,000 ft2 facility in Prosser, WA, they implemented the
same technologies with minimal utility incentives.

9
Case Study #3: A Consortium

A consortium of refrigerated warehouses is made up of 6 companies with a total of 25

warehouses. Although the names cannot be shared, these companies are prominent in the
industry. One of the companies (hereto for referred to as Company “A”) has been aggressively
pursuing energy efficiency within their 6 facilities. For comparison purposes, the corporate
engineer for Company A assembled annual energy use and gross cubic footage for each facility
in the consortium. From this information, kWh/ft3 could be calculated for each.

The results of the informal poll were impressive for Company A. Consider the results in the
following table, sorted by gross volume:

SAMPLE WAREHOUSE CONSORTIUM

Gross Energy Company
Facility Volume Efficiency "A"
3 3
ID (ft ) (kWh/ft ) Facilities
1 377,320 9.60
2 800,000 2.04
3 1,000,000 3.72
4 1,163,800 7.08
5 1,200,000 1.92
6 1,520,000 5.52
7 1,555,200 3.00
8 1,753,108 0.72 !
9 1,984,000 1.44
10 2,176,750 1.20
11 2,310,000 1.32
12 2,345,820 3.00
13 2,660,000 1.80
14 2,750,000 1.20
15 3,384,782 1.68
16 3,473,122 0.72 !
17 3,926,670 1.44
18 4,043,188 1.56
19 4,481,025 1.08 !
20 4,865,404 0.96 !
21 5,040,000 1.20 !
22 5,458,066 2.40
23 6,977,933 0.48 !
24 7,145,415 1.32
25 11,418,024 1.32
Totals: 83,809,627 1.60

This informal poll compares well with the recent IARW surveys showing an average of 1.6
kWh/ft3-mo. What is particularly revealing is the following graphic:

10
 Warehouse Energy Efficiency
Sample Consortium

12

10

8 Company "A"
kWh/ft3

Others
6

-
2

10

12
-

3
Warehouse Gross Volume (1000 ft )

It is clear that Company A excels at energy efficiency. This will translate into lower operating
expense and better lease rates for customers.

Summary

Make energy efficiency a priority for your company. Develop corporate guidelines and practices
that make energy efficiency integral to any new construction project. Reducing your energy use
by 20% to 50% can make the difference in how competitive you can be in the 21st century.

References
1
Capacity of Refrigerated Warehouses, Agricultural Statistics Board, USDA.
2
IARW 1997-1998 “Public Refrigerated Warehouse Operating Ratio Report”.
3
Hoover Dam – How it all Works, http://www.hooverdam.com/workings/main.htm.
4
Electric Sales and Revenue 1997, Executive Summary, Energy Information Agency, DOE,
http://www.eia.doe.gov/cneaf/electricity/esr/esr_sum.html.

11