(Roughly) Daily

Increasingly, as Patrick Sisson explains, that’s literally true…

If you had to identify a specific type of real estate that has seen its value increase because of changing consumer eating habits, global demographic shifts, worldwide pandemic preparedness, and US export policy — while its importance to reducing global carbon emissions and adapting to climate change rise in tandem — refrigerated warehouses may not be your first pick.

But there’s a strong case to be made that the expansion and evolution of the cold-storage industry — often called the “cold chain” — will play a significant role in energy, environmental, and economic news in the 21st century. Cold storage facilities aren’t fun places to visit; some are kept so frigid, at minus 50 degrees Fahrenheit, that the workers who toil in these windowless spaces rotate in 15-minute shifts, despite their heavy protective gear…

… refrigerated warehouses are great to build and own. Investors and developers expect 8 to 10% annual growth in this specialized real estate, according to Adam Thocher, SVP of Global Programs and Insights at the Global Cold Chain Alliance (GCCA). That’s made it a profitable real-estate niche…

The ability to more easily cool and freeze food for storage, preparation, and distribution has revolutionized grocery shelves, home cooking, and restaurants for decades, and will continue to do so for years because it taps into every trend all at once. Growing fast-casual restaurant chains, last-mile delivery, a surging global middle class seeking more protein, and the explosion in healthy, organic produce and industrialized frozen food, all need cold storage…

The pandemic accelerated these trends, spiking frozen-food sales in the US to over $74 billion in 2023, a $10 billion increase in just three years, and leading to a wave of refrigerator purchases by Chinese consumers. The need to refrigerate Covid vaccines underscored how important these sites are to global health. Even Ozempic and similar blockbuster anti-obesity drugs need to be stored at 46 degrees F. And the rest of the world is increasingly asking why, if you can always get a Granny Smith apple in New York, can’t you get one in Beijing or London?…

The GCCA estimates there is at least 7.4 billion cubic feet of cold storage worldwide, and 3.7 billion in the US alone, but that’s a vast understatement, Thocher said. The alliance only looks at partial data from 92 countries (not including China) and governments tend to be cagey about sharing his kind of data because of economic and food-security concerns, since these sites are crucial parts of food infrastructure and can reveal levels of economic activity…

Food security has become a global challenge with a growing population, Peters said, especially since roughly 30% of global food production is lost, making increasing supply and reducing food waste imperative. That’s extremely tricky when the critical loss of arable land and desertification, due to climate change, strengthens the case for cold-storage warehouses, which, because of their vast energy use, contribute to that very problem. A 2023 Columbia University study found the sector responsible for 3.5% of total global emissions. The cold-storage industry has responded with more energy-efficient designs and less harmful ammonia-based refrigerants, but it adds an additional challenge to efforts to ramp up sustainable energy production.

“This is a real system-level challenge, a wicked problem,” [Toby Peters, professor of the cold economy at the UK’s Birmingham Energy Institute] said. “My exam question is, how do we feed 9 billion people while economically empowering 400 million small farmers, all without using diesel?”…

Diets, demographics, desertification are all fueling “The Hot Business of Cold Storage,” by @patrickcsisson in @sherwood_news.

* John Harvey Kellogg

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As we chill, we might recall that it was on this date in 1903 that Carl von Linde received two U.S. patents for his Linde oxygen process and associated equipment (Nos. 728,173 and 727,650). Linde had already invented the first industrial-scale air separation and gas liquefaction processes, which led to the first reliable and efficient compressed-ammonia refrigerator (in 1876).

In 1901, Linde had began work on a technique to obtain pure oxygen and nitrogen based on the fractional distillation of liquefied air. His 1903 patents were steps in that direction.

Linde founded a company to commercialize access to these pure gases. Now known as Linde plc (but formerly known variously as the Linde division of Union Carbide, Linde, Linde Air Products, and Praxair), it has become the world’s largest producer of industrial gases– and ushered in the creation of the global supply chain for industrial gases that serves the global cold chain.

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