Leading the Way in Decarbonizing Cold Storage

The Energy Challenge in Cold Storage

Cold storage facilities play a vital role in the global supply chain, ensuring the viability of food, pharmaceuticals and other temperature-sensitive products. However, this sector is among the most energy-intensive–with high electricity costs remaining a challenge for operators running refrigerated warehouses, where refrigeration accounts for up to 70% of total energy use.

Cold storage facilities use approximately 25 kWh of energy per square foot for cooling costs annually, making them four to five times more energy-intensive than standard commercial buildings. With thousands of metric tons of CO₂ emissions per facility per year, decarbonization is now a key priority for operators looking to reduce costs, improve resilience and meet evolving sustainability standards and customer expectations.

The Growing Market and Need for Energy Resilience

• The global cold storage market is experiencing rapid growth, driven by activities such as e-commerce grocery delivery, increased food demand and pharmaceutical supply chain expansion.
• As demand for temperature-controlled storage rises, so do energy costs, making energy-efficient solutions critical for profitability.
• Power outages have become more frequent, costing the U.S. economy an estimated $150 billion annually. With cold storage operators facing millions in potential losses per event, energy resilience is no longer a luxury—it’s a necessity.

How Cold Storage Operators Are Reducing Carbon Emissions

To address these challenges, industry leaders are implementing renewable energy and efficiency solutions that reduce emissions while maintaining operational reliability. The most effective strategies include:

On-Site Renewable Energy

Solar energy is an increasingly viable solution for cold storage operators looking to offset high electricity consumption. Installing a solar panel warehouse setup reduces reliance on the grid, helping cold storage operators cut costs while maintaining energy security. Catalyze has exclusively partnered with the largest cold storage company operating in the US to develop and implement a portfolio wide onsite solar program. We have over 70 MW in operation and late-stage development which will collectively deliver 52 tons of C02 savings annually. An example of one of the successful projects now in operation is featured in the case study below: Catalyze Case Study – Jessup Cold Storage Solar Project.

Catalyze’s Jessup Cold Storage Solar Project in Maryland exemplifies how solar cold storage solutions can support energy-intensive facilities. The 268,000-square-foot cold storage facility expects to generate over 2.5 million kWh of renewable energy annually, significantly reducing costs and carbon footprint.

• This project demonstrates how solar solutions can be integrated into energy-intensive operations without disrupting daily workflows. Additionally, the Jessup project benefits from Maryland solar energy incentives for cold storage, making it a financially viable and sustainable solution for the facility.
• The facility benefits from predictable energy costs, ensuring long-term savings and emissions reductions.
• Lessons from Jessup: More cold storage operators can use solar incentives to reduce reliance on fossil fuels and volatile energy markets.

Solar + Battery Storage for Peak Demand Management

Locations investing in industrial solar battery storage enhance solar benefits by storing excess energy for use during peak demand periods, reducing grid strain and improving energy resilience against power disruptions.

• Facilities participating in demand response programs can receive incentives of up to $100 per kW annually by adjusting power use during peak times.
• In states like California and New York, some facilities have cut peak electricity costs by 30-50% by leveraging storage.

Grid-Interactive Solutions

With the rise of commercial solar and energy storage, operators can balance their loads and contribute to grid stability while cutting energy costs.

How Cold Storage Operators Can Monetize Energy

• Incentives in California and New York offer up to $0.20 per kWh for solar-plus-storage projects, accelerating ROI and reducing operational expenses.
• Some facilities return excess energy to the grid, turning sustainability efforts into additional revenue streams.
• Demand response programs reward operators for shifting energy loads, making grid participation financially beneficial.

Catalyze is helping our cold storage clients identify opportunities to integrate battery energy storage systems into their facilities to help offset high demand charges, generate additional revenue and enhance the resiliency of their facilities.

Catalyze’s Role in Cold Storage Decarbonization

Catalyze is taking a leading role in developing onsite renewable energy projects partnering with the (3) largest cold storage companies operating in the US. We are deploying tailored renewable energy solutions, providing financing, development and long-term asset management of solar and battery storage systems.

What Makes Catalyze Different?

Through its   model, Catalyze enables facilities to implement solar and storage projects with no upfront costs, reducing operational expenses while advancing sustainability commitments.

• Turnkey Project Development: From site assessment to installation and maintenance, Catalyze handles the entire solar and storage implementation process.
• Financial Accessibility: Catalyze offers zero upfront cost options, making renewable energy adoption financially feasible for all operators.
• Scalability: Whether operating a single cold storage facility or an entire network, Catalyze creates scalable solutions tailored to specific energy demands.

The Future of Sustainable Cold Storage

Cold storage is at a turning point. As corporate sustainability commitments grow, cold storage operators must act now to future-proof operations while reducing emissions. Industry leaders such as Lineage Logistics, Americold Logistics, and United States Cold Storage have committed to reducing greenhouse gas emissions, reflecting the urgency for decarbonization.

Forward-thinking operators are proving that sustainability and operational excellence go hand in hand. Decarbonization isn’t just a possibility with the right strategies; it’s a competitive advantage.

Interested in learning more about how Catalyze can support your cold storage decarbonization strategy? Contact us today.