Hot issues in the cooling and freezing sector

There are many changes taking place in the cooling and freezing industry. Which trends are visible, and what are the most pressing issues in this sector where everything revolves around cold—colder—coldest? We discuss this with four specialists who know the industry inside out.

A story about cold storage facilities quickly turns out to be about much more than just temperature, as becomes clear when the four experts sit down together. Erik Hoogendoorn, Manager of Technology and Innovation at Equans, kicks things off. He notes a high level of uncertainty among entrepreneurs: “This is caused in part by geopolitical unrest and wars, constantly shifting trade tariffs, and ever-changing legislation such as the European F-gas regulations and CSRD, which businesses must anticipate. The uncertainty surrounding the future of the electrical infrastructure in the Netherlands clashes with companies’ sustainability ambitions. Entrepreneurs are holding back. We cannot eliminate the sources of uncertainty, but we can create opportunities to move forward.”
Davey Gerlings, CEO/Director of Nekovri, the trade association for Dutch cold storage companies, picks up on this. He sees major shifts in global trade flows, which are having a significant impact on the sector. “For example, our exports to China have partially dried up because that country has rapidly become self-sufficient,” he explains. “Fortunately, our sector is agile; companies switch to other products almost immediately.” The next trend he highlights is increased supply chain integration. “Transport companies are also taking on storage, and retailers are opening their own cold storage facilities. At the same time, a wave of consolidation is taking place. The global population is growing, and we want more convenience. Cold storage facilities play an essential role in this. The vast majority of Dutch food and horticultural products go directly from the field into the cold chain. Despite the bottlenecks, we are a stable growth sector that is attractive to investors. Large players are making acquisitions, especially in the mid-market. At the same time, a group of smaller niche players remains, with specific knowledge and expertise for products that require specialized storage—such as apples and pears, bulbs, planting material, and butter.”
“Those acquisitions are driving a large number of expansion projects,” says Gerard Scherff, Commercial Director at K.I.M. Nederland. “As long as municipalities allow it, entrepreneurs prefer to build upwards—you can only use the land once. That works fine for us. We thrive on highly specialized food projects. The bigger, the better.”

Erik Hoogendoorn (©Equans)

Savings

“In the food industry, refrigeration systems traditionally expelled a lot of heat outdoors. Refrigeration technology is essentially nothing more than extracting heat from one space and transferring it elsewhere. A cooling unit is therefore essentially a heat pump,” Erik explains. “In recent decades, awareness has grown that this residual heat can be put to better use—for heating buildings or cleaning water, for example. This becomes even more interesting as energy prices continue to rise and government pressure increases to phase out gas: if you replace an installation with a new, more efficient one, your required connection capacity can be reduced. By tackling these kinds of changes in phases, you safeguard business continuity while still making the necessary transition from an old to a new system. This approach requires both the customer and us as a supplier to be creative and flexible in planning and logistics. But we are happy to think along with the customer. Together, we focus on what is possible and what options are available.”
“Better insulation also saves money,” Gerard adds. “By choosing panels with higher insulation values, you automatically improve sustainability due to lower energy consumption. Compared to three years ago, insulation performance has improved by as much as 10% thanks to our Quadcore panels. This hybrid insulation core technology is a more sustainable and higher-quality successor to traditional PUR and PIR insulation boards. Some cold storage facilities now have such strong insulation that cooling is not needed, or is needed far less, during the day. The evaporators only run at night. Smart.”
Davey laughs: “Keeping doors closed, or at least closing them as quickly as possible, also saves a lot of money. It sounds obvious, but in practice it’s not that simple. Nekovri even launched a ‘Close the doors’ campaign to encourage behavioral change within companies.”
“Managing temperature differences can save a great deal of energy,” adds door specialist Bert Verrips, Head of Industrial Sales at Hörmann. “The faster a door can close again, the better you can control that process. A serious challenge is ensuring that a door continues to open and close 200 times a day, even with large temperature differences between two areas. That requires innovative solutions, such as the right heating elements or an insulating air layer between door sections. Smarter dock station design can also deliver major gains. There are various solutions to prevent cold bridges, such as inflatable shelters. Even better is the ‘docking before opening’ system. This allows trucks to dock with their rear doors closed. Only after sealing is the trailer opened from inside the facility. In addition to lower energy costs, this reduces waiting times and damage, and creates a safer working environment at the loading dock.”

Davey Gerlings (©Jurgen van Hoof)

Move to minus 15

Preventing cold loss is not the only way to save energy; setting the thermostat slightly higher could also help. Is that really possible? And what are the implications? These questions are being investigated within the FROSTEQ consortium, which includes Nekovri, stakeholders from across the entire cold chain, and Wageningen University & Research. Is it possible to raise the temperature in cold storage facilities from the current standard of -18 degrees Celsius to -15? The answer appears to lean toward “yes, it is possible” Many industry organizations, including European ones, have already joined the ‘Move to minus 15’ initiative. Understandably so, as the potential energy savings and CO₂ reduction across the entire chain are substantial: a preliminary estimate suggests energy savings of 7%. “Although this could be a major breakthrough, we have deliberately not joined as Nekovri,” says Davey. “Such a change affects the entire chain. Food safety must never be compromised; it always comes first. It is far more complex than it seems at first glance, especially when it comes to liability.”

Fire safety

Continuing on that topic, he adds: “As a cold storage operator, you act as a ‘good steward’ of the products you store; after all, those products are not your own. That comes with enormous responsibility. Strong terms and conditions are therefore essential for our sector; we actively advocate for them. In fact, these conditions were the reason Nekovri was founded in the first place. For example, owners must insure their products themselves.”
“That is different for the building in which those products are stored,” Gerard continues. “A major bottleneck currently facing cold storage facilities is fire safety. Insurers impose very strict requirements, partly due to several major fires at cold storage and production sites. To meet these new requirements, we must switch to different materials. Stone wool meets fire resistance requirements but is unsuitable for cold storage due to its lower insulation performance.”
“A real hot issue,” Davey agrees. “The investments required to remain 100% insured are enormous. We’re talking millions for a relatively small cold storage facility. Insurers are also asking for the impossible, for example, installing sprinklers in a freezing hall. Not a good idea.”
“Fire curtains and fire-resistant sectional doors are better solutions,” Bert responds. “These are installed on the outside of the cold room, not inside. They only deploy when the fire alarm is triggered; otherwise, they do not interfere with operations.”

Gerard Scherff (©Maartje Smit)

Grid congestion

“Speaking of major challenges,” Gerard continues, “let’s talk about grid congestion in the Netherlands. It is a problem that certainly affects the cooling and freezing sector as well, and I do not see it being resolved anytime soon. Just how often do you see a beautifully sustainable building with a diesel generator running day and night behind it?”
“The core question of the current issue,” Erik analyzes, “is: how do we ensure the grid is not overloaded while still allowing everyone to do what they need and want to do? We are involved in a regional project focused on this question. By intelligently exchanging data among participants, we analyze when and how the grid is most heavily loaded and where demand can be adjusted. We collaborate with an installation company, a grid operator, and various users. These are not issues you can solve alone. You really need to bring multiple parties together.”
Davey: “In times of scarcity, people become highly innovative. Cold storage facilities can play a major role in balancing the grid; they can relatively easily switch off for a few hours thanks to the large thermal buffer in stored products. Whether we can also use chilled storage facilities to balance the grid is currently being studied; that is more complex. What is clear is that we have a lot to offer; to our government, grid operators, and energy suppliers.”

Critical infrastructure

Another major project Nekovri is working on is having the sector designated by the government as ‘critical infrastructure.’ However, that label comes with strict requirements, particularly in terms of cybersecurity and sustainability, making recognition difficult. Reporting obligations in particular create a significant administrative burden, which is especially challenging for smaller family-owned businesses. Nevertheless, the association considers it important to obtain this recognition. “We operate under the radar,” Davey explains. “The value of the goods our members store for their customers exceeds 95 billion euros annually. The total storage capacity of the 150 affiliated companies in the Netherlands is nearly 15 million cubic meters. If we were to collectively strike tomorrow, the impact would be enormous. We won’t, but we do want more recognition for our work. Another aspect, as Gerard rightly points out, is the grid congestion issue. If we are designated as critical infrastructure, we hope to receive priority for grid connections. And support in installing backup batteries in case the grid is hacked.” This brings us to yet another relevant topic: labor, and the associated role of data, digitalization, and cybersecurity.

Bert Verrips (©Aagjesstudio)

Prevention is better than cure

“After energy, labor is the second-largest cost in the sector,” Davey explains. “It is difficult to find staff. Working in extreme cold is tough. In addition, we compete with large distribution centers where the temperature is a comfortable 20°C. As a result, automation and robotics are increasing rapidly in the sector. Newly built cold storage facilities are often already fully automated. We are shifting from logistics companies to technology companies. Instead of forklift drivers, we are looking for operators.”
“Data and data security are no longer optional—they are essential for the continuity of physical processes,” Erik adds. “Fortunately, the integration of AI, sensors, and data is already delivering more value. Think of system monitoring and early warnings when something goes wrong.”

All four emphasize the crucial role of collecting and interpreting data in effective maintenance. “This goes far beyond an annual inspection,” Bert explains. “For example, NEN standards require door maintenance once a year. For some doors, that is more than sufficient; for others, it is far too little. What you need is a maintenance schedule based on actual usage—that is how you truly minimize downtime. With data on usage, maintenance activities, and any repairs, we can manage this much more effectively and also support customers remotely. What we see is that companies are increasingly focused on reducing costs, particularly operational costs. We respond with innovations such as our zipper door, which resets itself after being hit. No call-out fees, no technician, no downtime. Our doors are not the cheapest upfront, but the Total Cost of Ownership over their lifespan is low. That delivers better results in the long run.”

Gerard: “Everyone realizes that preventive maintenance reduces costs. It also prevents inspection bodies from flagging issues that need to be repaired or replaced. You would rather stay ahead of that, right? As Cold Care Services, we will soon start conducting preventive inspections. There is clear demand for this in the market. In addition, we now offer one-stop shopping: within the Cold Care Group, we can provide everything—facades, roofs, walls, ceilings, floors, doors, windows, collision protection, and wall cladding—the complete package. Collaboration? Absolutely. But only with the right partners. Cooling and freezing in the food sector is a true specialty. You cannot step into a food project without experience… unfortunately, we still see that going wrong too often.”