With demand for temperature-controlled storage soaring worldwide, the cold chain continues to attract major investment. In the U.S., the industry is not only delivering growth through expansion of the physical footprints of storage sites, but operators also are increasing storage capacity with innovative, emerging technologies, like space-efficient pallet systems and automation.

In both designing new warehouses and upgrading existing sites, delivering operational energy efficiency is key, driven both by ambitious targets and managing volatile energy costs.

As the cold storage industry’s second-largest expense after labor costs, even seemingly minor changes in energy price trends can have a major impact on operators’ bottom lines. Although prices in the U.S. have mostly stabilized since the considerable volatility in 2022, in the aftermath of Russia’s invasion of Ukraine, by March, 2024, the average daily electricity use in the U.S. was still 30% more expensive than the previous four years. We must presume that further volatility is possible, if not likely, in coming years.

Recently, cold chain operators have invested in reducing their reliance on grid-procured energy. This has mainly been in the form of investment in renewable energy, particularly solar and other onsite generation. However, there are several frustrating barriers for U.S. cold chain operators looking to make such investments. For example, the requirements to connect generation to the energy grid can be challenging, proving to be slow and complicated to secure necessary zoning permissions or meet other regulatory requirements. This is a significant barrier to investment. GCCA is engaging with federal and national authorities to educate decision makers about the opportunities to reduce and remove these barriers.

Few cold storage businesses can rely on energy they generate themselves and therefore maintaining access to a secure, consistent, affordable energy supply is a business imperative. The U.S. cold chain has not generally been subject to the impacts of blackouts such as those experienced in nations such as South Africa, but there are vulnerabilities. Therefore GCCA will continue to advocate for state and federal governments to recognize the cold chain as critical infrastructure and establish clear prioritization of food and pharmaceutical facilities in crisis planning for future energy shocks so that energy remains consistently available and affordable for cold chain users at times of potential energy shortage.

That said, the best way to control rising costs is to find ways to use energy more efficiently and cold storage operators constantly focus on and look for opportunities in this area.

Key actions include changing to more efficient lighting with motion detectors, improving insulation, and ensuring doors are sealed and no air leaks. An energy audit can help find and close gaps. Alongside these “low-hanging fruit” energy efficiency actions, operators may also consider enhanced refrigeration systems, optimizing temperature control systems and implementing demand-response programs. Fully automated warehouses can be built taller to store more in the same footprint and minimize heat entry via the roof, decreasing the demand on the refrigeration system.

As the cold chain embraces smart technology, use of real-time energy data is increasingly supportive for operators to identify energy inefficiencies and waste. As well as helping businesses to understand which assets are performing well and opportunities to improve, energy management using real-time data can help reduce energy consumption, repair and maintenance requirements, downtime, carbon impact and costs.

GCCA is committed to supporting members' energy-related decisions by offering expert guidance and the latest information on technologies and service providers, creating forums for sharing knowledge and advocating for the cold chain's needs to government at all levels.

We have also created the unique GCCA Energy Excellence Recognition Program (EERP) to help temperature-controlled warehouse operators measure and improve energy efficiency using qualitative and quantitative assessment tools. The EERP not only supports operators in securing significant cost savings but also provides industry recognition for their progress and leadership. Participants can use the program to help identify and change energy usage behaviors, conduct a gap analysis to set goals and chart the course ahead, and access quality resources and templates. The EERP also acts as a tool for cold storage businesses to use to communicate to customers their facility’s progress in meeting sustainability objectives.

Initially launched 2020, more than 200 cold storage facilities are now participating in the EERP.  Learn more about how your company can participate.

Looking to the future, energy efficiency will continue to be a top priority for the cold chain industry. Several potential innovations are poised to have a transformative impact.

First, advancements in grid design will present meaningful opportunities for cold chain operators to engage in demand response. This approach already allows many operators to draw power from the grid during periods of low demand when energy is cheaper and reduce usage when demand is highest from other consumers, facilitating better smart grid integration. We will work with providers and regulators to encourage this innovation across the country in the years ahead.

Second, improving the technology used to monitor and manage the temperature of products through the links in the cold chain could be a game-changer. By smoothing out the fluctuations in cooling temperatures that often occur when products are transferred between different links in the chain, we can enhance overall efficiency. GCCA is engaged in work to help businesses collaborate in data sharing and establish baseline and working protocols to achieve this goal.

Finally, we should remain optimistic about how innovations in building and equipment design and refrigeration systems will continue to drive improvements in energy efficiency, fundamental to generations of cold chain success. GCCA will continue to provide a platform for businesses to learn and share best practices about technology adoption and process innovation, and we continue to encourage investment incentives for businesses looking to access the best technologies for their purpose.

The cold chain industry has much to be proud of. We manage energy in a manner that delivers an efficient, reliable and safe cold chain to food industry customers and consumers. However, we know this requires consistent focus through benchmarking and investing time, focus and money in innovation. GCCA will continue to make the case for the best regulatory and grid infrastructure possible to achieve that goal.