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NewsHVAC Commercial MarketRefrigeration

FROSTlines

How CO2 Refrigeration Helps Grocers Cut Energy Costs

Ejectors, parallel compression, and heat reclaim improve ROI in CO2 systems

By Senthilkumar K. Shanmugam
HilphoenixAdvansorFLEX_v2.png
Courtesy of Hillphoenix

MANAGE COSTS: CO2 refrigeration systems can help food retailers manage rising operating costs. 

May 25, 2026

It’s no secret that energy costs are rising, putting even more pressure on low-margin industries like food retail.

Optimized refrigeration is a key strategy for keeping energy costs under control, as long as the right technology is applied. Here’s what contractors need to know to help food retailers improve operational efficiency through their refrigeration solutions.

 

Outdated Systems

Traditional HFC refrigeration systems can technically continue to run for decades, but not without a cost. Each component in a system has a life cycle and will eventually need to be replaced. That means food retailers with outdated systems face unpredictable service calls and maintenance downtime, on top of the cost of replacement parts.

Beyond that, systems lose efficiency over time. Compressors have to work harder to achieve the same cooling power, driving up energy use. Plus, HFCs will be significantly phased down under the AIM Act in the coming years. 

With HFC refrigerant costs rising, even newer systems can drive up operating costs. HFC systems also have an average leak rate of 22%, leading to significant losses over time. Upgrading outdated systems is an investment, but putting off their replacement can cost more in the long term.

 

CO2 Technologies

Commercial CO2 refrigeration has changed considerably over the past decade. Unfortunately, some myths from the early days of CO2 have persisted. 

For example, some people still believe that CO2 is complicated, expensive, or ineffective in certain climates. The truth is, CO2 systems have quickly become one of the best ways to maintain energy efficiency and manage operating costs, even in warm climates. Plus, the refrigerant itself (R-744) is cheaper than traditional HFC refrigerants, offering long-term savings.

Looking for quick answers on air conditioning, heating and refrigeration topics? Try Ask ACHR NEWS, our new smart AI search tool. Ask ACHR NEWS →

The latest CO2 technologies boost ROI and deliver efficient performance across all operating conditions in a wide range of store formats.

One such technology is the low-pressure ejector, which can reduce refrigeration-related energy costs by up to 11.5%. By capturing and reusing energy within the CO2 system, low-pressure ejectors increase cooling capacity while reducing compressor workload. Advances such as these have helped eliminate the notion of a “CO2 equator” — the belief that transcritical CO2 systems are not viable in warmer climates south of the equator.

When a CO2 system is equipped with low-pressure ejectors, it operates more efficiently, especially in warm climates and small to medium-sized stores. Low-pressure ejectors also improve reliability and reduce maintenance. 

Another technology is parallel compression, which on average, saves up to 10% on refrigeration-related energy costs. Parallel compression technology uses a dedicated flash gas compressor to boost capacity, reduce wasted energy, and maximize efficiency. It also extends the lifespan of system compressors by reducing their workload. The result is a higher ROI for CO2 systems, particularly in mid-sized and large stores. 

Heat reclaim is another energy-saving technology that leverages excess heat generated by the refrigeration system for in-store comfort heating. When heat is reclaimed from the CO2 system, it dramatically reduces or even eliminates fossil-fuel-based auxiliary heating or electric resistance heating. Heat reclaim from CO2 systems can deliver three times more heat output than traditional coils. It’s also up to six times more efficient than electric resistance heating, offering another powerful way to boost CO2 system ROI in stores of all sizes.

Heat reclaim is just the beginning. New technologies are emerging that reclaim energy from a food retailer’s HVAC system and leverage it to keep the CO2 rack at an ideal temperature, minimizing the use of gas coolers, both water and air. This is especially exciting for markets like California, where water conservation is critical.

 

Other Ways To Boost Efficiency

Upgrading from old HFC systems to more efficient, reliable CO2 systems is a great way to combat rising costs, but it does require an upfront investment. There are a few simple ways food retailers can optimize efficiency while they wait for the right time to invest in new equipment.

For example, adding doors to open refrigerated or frozen cases is a relatively easy upgrade that provides significant energy savings. Plus, when the cases have doors, it reduces the workload on the system, potentially extending its work life. Upgrading a store’s lighting to LED can also lower energy usage, leading to long-term savings.

Working with an experienced refrigeration system supplier is another essential strategy for managing rising refrigeration costs. When food retailers rely on a supplier that truly understands CO2 technology, they benefit from their years of experience. That means more field-tested guidance and less troubleshooting. It also means they have the expertise to help food retailers achieve any refrigeration and efficiency goals.

As energy prices continue to increase, replacing outdated HFC systems with CO2 refrigeration systems is an effective strategy food retailers can use to maximize efficiency and manage rising operating costs.

KEYWORDS: CO2 refrigeration FROSTlines refrigeration equipment refrigeration market refrigeration systems

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Hillphoenix senthilheadshot

Senthilkumar K. Shanmugam currently serves as technical program manager for the CO2 Center of Excellence for Hillphoenix, a Dover Food Retail company located in Conyers, GA. He has more than 16 years of refrigeration industry experience and has been involved in the development of CO2 transcritical systems since the acquisition of Advansor in 2011. He is responsible for supporting the adoption of natural refrigeration systems in North America in the food retail and industrial refrigeration markets and can be contacted at senthil.kumar@doverfoodretail.com. 

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