Why Upgrade Your Existing

Supermarket Refrigeration

Infrastructure Today

E360 Forum • Houston, TX • October 25, 2018

Andre PatenaudeDirector, Food Retail Marketing and Growth Strategy, Cold ChainEmerson

RegulationsF-Gas + EPA + CARB + ECCC+ DOE =

Complexity

Digital ShoppersSeamless Desktop + Mobile + In-Store

Experience

Focused on ConvenienceDo More With Less, Last-Mile Challenge

Experiential RetailRetail-tainment

New Retail FormatsRetail/Foodservice Blurs

Strategic LocationsUrban, Smaller, High-Turnover Products

New System ArchitecturesSteep Learning Curve

IoT and Cloud-Based ServicesSimple, Safe, Sustainable

Technician ShortageComplexity vs. Simplification

Operations-DrivenConsumer-Driven

Energy Costs and IncentivesDemand Peak Charge, Time of Use Rates

Food Retail Is Dealing With Extraordinary Dynamics

2

Indirect Systems / Chillers MT

Integrated Display Cases

Micro Distributed & De-Centralised

A2L

<150

A1

Food Service / Cold Rooms

Centralised Racks

Future Refrigerant Options For “Future Proof”

Systems in North America

A2L <150

Hybride / Cascade

CO2 Booster

A1

CO2

Retail Centralised

A1 Non Flammable

A2L Mildly Flammable

A3 Flammable

Growing/Decreasing

Niche

A1A2L<150

R290

Remote Unit - Cold Rooms

CO2

HFO A2L<150A1

A1

Packaged Units - Cold Rooms

Likely Refrigerant After 2021

CO2 (LT)CO2 (LT)

CO2?

CO2R290

CO2?

A1 (<50lbs) <1500 GWP

A1 (<50lbs) <1500 GWP

R290

CO2?

A1 (<50lbs) <1500 GWPA1 (<50lbs) <1500 GWP

Distributed Units <136MBH (11 tons or 40kW)

A2L <150

A1 CO2 (LT)

A1 (<50lbs) <1500 GWP

R290NH3

Future Future

Future Future

Future

Future

Future

Future

Why Is Power Management Important?

4

Energy and Power

FMI Energy SD 2018, Axiom Exergy 5

6

Trends and Drivers in the Energy Industry

7

Energy markets and demand response programs can generate substantial revenue for participants.

• Rise of renewables and energy storage

• Time of use rate structures

• Beneficial electrification

• Shift from lighting rebates

ISO communicates that price is

about to increase from $0.1/kWh

to $1.0/kWh, unless 100 MW is

removed from the system.

Virtual Power Plant Scenario

Fundamentally, to enable transactions we must

commingle energy + information and assign value.

I’m a hotel with a big conference

underway. I need maximum cooling

for my building. I’m looking to buy

your additional load reduction to

avoid price increases.

I’m a big-box store, with variable-speed fans on

my RTUs. I can run those fans at somewhat lower

speeds for 10 minutes and “sell” you the load

reduction. It will make no noticeable difference

to my customers, and I can make some money

(part of the price increase the other customer

is avoiding).

1

2

3

• Example illustrates

concept of “across the

meter” coordination

• “Real-time” utility

pricing would be a

driver

• Essentially, demand

response on steroids

with autonomous

controls

• DOE supporting the

vision with

demonstration projects

and research

DOE presentation on smart buildings, Nov. 20178

Convert your infrastructure into flexible energy assets and get paid for it.

Refrigeration

Food Waste

Recycling

Supervisory and

Building

Management

Enterprise

Monitoring

Cold Rooms

Lighting

Bakery

Evaporator

Controllers

HVAC

Cargo Monitoring

Ecosystem Management and Energy Costs

9

The user experience is now tailored to specific personas/tasks.

Enterprise-level Software Upgrade OpportunityVisualizations Are Solution-specific

• Provide only required information

– Apply comprehensive filtering criteria• Time, data type, asset type, location, limits, etc.

• Provide highly graphical, intuitive views

– Expand adoption to include non-domain experts

• Complete specific use-cases

– Color-coded map view of sites with two-click navigation to ID root cause• Include prescriptive corrective action(s)

10

Traditional

Centralized DX Rack

Why Upgrade Your Existing Supermarket Refrigeration Infrastructure?

Refrigeration52%

Lighting16%

HVAC19%

Other13%

Annual SupermarketElectricity Consumption

Supermarkets use

three times more energy

per square foot than other

retail facilities

Typical Centralized DX

Source: ENERGY STAR, AICA ENERGY

• Most common architecture

• Inflexible asset

• Many refrigerant options:– R-22, R-404A, R-407A,F

(high-GWP)

• Thousands of feet of pipe

• 3,000+ pounds per system

• Highest average leak rates:

25% avg. (targeted by global

refrig. reg.)

• Highest CO2e or LCCP footprint

• Familiar, viewed as simple

Peculiarities

71% REF & HVAC

$7.7B in electricity per year

12

Traditional Supermarket System

Parasitic Losses• Flash gas in liquid lines

• Insulation damage or cracking off

• Condensing pressure swings

• Excessive suction line superheat

• Excessive compressor cycling

• Improper TXV SH adjustment

• Hunting EPRs

• Excessive defrost times

• Longer pull-down after defrost

13

Typical Aging Supermarket Racks

• Three old racks, more than 1,000,000 BTU

• 15 RTUs

• 5 cond. units

14

The Journey to Energy Excellence — Effective vs. Efficient

En

erg

y E

ffic

ien

cy

Ongoing Performance Monitoring

Building/System

Project Concept

Design InstallationAdjustment Maintenance

Effective but NOT Efficient

Recommissioning/Optimization

Capital Upgrade

Latest Technology Efficiency

Deviation From Optimum

Lost E

ffic

iency

Time

Today

Maintain Optimum Efficiency and Effectiveness

15

Supermarket Optimization – Case Study

17

Overview:

• 20-year-old, 45,000 sq. ft. grocery located in

southwestern Ontario

• Medium- and low-temperature centralized rack system

• System (total 164 hp) operates with 10 semi-hermetic

Copeland™ compressors

Objective:

• Analyze the energy impact of the medium- and low-

temperature racks of retrofitting one compressor on

each to a Digital Discus™ compressor

16

Step 1

Establish Baseline Energy

Energy Retrofit Opportunities

Journey to Energy Excellence

En

erg

y C

on

su

mp

tio

n (

Eff

icie

ncy)

Time

Current

State

Step 1

Baseline Energy

Audit

• Refrigeration

Setpoints

• Break/Fix Items

Step 2

Recommission to

Factory Specs

Future

State

Step 3

Refrigeration

Technology Upgrades

Step 4

HVAC Technology

Upgrades

Step 5

Lighting and Other

Renewables Upgrades

Step 6

Condition-based

Maintenance

6Energy Savings

• RTU

Upgrade

• Demand

Control

Ventilation• Adding Doors

• EEV, Cases

• ECM in Evaps

• CTES

• Digital

• VFD

• Floating

Head/Suction

• Condensers

VFD

• Click and

Collect

18

Power Monitoring – Basic Need

Emerson

Emerson

19

Traditional Supermarket System

Good Poor

System Efficiency

20

Analysis Tools — Weather-Normalized Power Profile

Must measure baseline to understand effectiveness of upgrades and obtain utility incentives

Pre-optimization Energy Profile

Post-optimization Energy Profile

7°F 12°F 18°F 23°F 28°F 34°F 39°F 45°F 50°F 55°F 61°F 66°F 72°F 77°F 82°F 88°F

21

Step 2

Retro Commission Setpoints

Energy Retrofit Opportunities

Journey to Energy Excellence

En

erg

y C

on

su

mp

tio

n (

Eff

icie

ncy)

Time

Current

State

Step 1

Baseline Energy

Audit

• Refrigeration

Setpoints

• Break/Fix Items

Step 2

Recommission to

Factory Specs

Future

State

Step 3

Refrigeration

Technology Upgrades

Step 4

HVAC Technology

Upgrades

Step 5

Lighting and Other

Renewables Upgrades

Step 6

Condition-based

Maintenance

6Energy Savings

• RTU

Upgrade

• Demand

Control

Ventilation• Adding Doors

• EEV, Cases

• ECM in Evaps

• CTES

• Digital

• VFD

• Floating

Head/Suction

• Condensers

VFD

• Click and

Collect

23

Supermarket OptimizationSetpoint Adjustment, Retro Commissioning – Case Study

Step B Step C Step DStep A

➢ 20-year-old,Toronto-area store identified

➢ 1,000,000 BTU capacity (163 HP: MT and LT racks)

➢ 900,000 kWh total

➢ 5 medium-temp Discus

➢ 5 low-temp Discus

➢ Install energy monitoring equipment to baseline the store energy

➢ Climacheck equipment being used

➢ Measure Weather Normalized Energy

➢ Adjust setpoints, superheat, high/low press. settings, comp. cut in/out, SH, etc.

➢ Spent $3,500 on boards and relays to change form two fans cycling at a time to individual fan cycling to 70 °F min SCT

➢ Use energy monitoring equipment and assure “continuous commissioning”

➢ As soon as readings vary away from energy setpoint,investigate the cause of the variance, re-adjust to original setpoints to maintain optimal energy

Results: 18% saving were maintained for 12-month period before new upgrades were performed.

18% = 162,000 kWh savings 24

Energy Retrofit Opportunities

Journey to Energy Excellence

En

erg

y C

on

su

mp

tio

n (

Eff

icie

ncy)

Time

Current

State

Step 1

Baseline Energy

Audit

• Refrigeration

Setpoints

• Break/Fix Items

Step 2

Recommission to

Factory Specs

Future

State

Step 3

Refrigeration

Technology Upgrades

Step 4

HVAC Technology

Upgrades

Step 5

Lighting and Other

Renewables Upgrades

Step 6

Condition-based

Maintenance

6Energy Savings

Held the Savings12 Months

Saving 18%(162,000 kWh)

$0.14/kWh

$22,680

• RTU

Upgrade

• Demand

Control

Ventilation• Adding Doors

• EEV, Cases

• ECM in Evaps

• CTES

• Digital

• VFD

• Floating

Head/Suction

• Condensers

VFD

• Click and

Collect

25

Step 3

Refrigeration Technology Upgrades Like Digital

What Is Digital?

• Copeland digital technology is fundamentally different from inverter-based modulation.

• The capacity modulation of the digital compressor is achieved by averaging the time between a “loaded state” and “unloaded state”.

• It is unique, reliable and very simple to apply.

Can also add a VFD to Discus (25–60 Hz range) AE21-1369 R4 28

Digital Discus™Digital Scroll™

27

Why Include Digital in Your Refrigeration Retrofit and Remodel Projects?

• Reduces compressor cycling

• Increases contactor life/system reliability

• Improves system load match capability

• Improves suction setpoint range

• Improves energy efficiency

• In some cases, suction setpoints are lowered to compensate for swings in suction pressure due to compressor cycling. By increasing the suction setpoint, an energy savings can be achieved.

• For every 1 PSI increase in suction pressure, compressor power is reduced by approximately 2 percent.

• Up to 30 percent more efficient than using hot-gas bypass

28

Supermarket Applications — Digital Upgrade MT Rack

Significant and immediate

reduction in compressor cycling

Digital Discus activated

72 psi 8 psi

increase

Digital retrofit

89% reduction

in suction

pressure range

2D

3D

6D From 900 starts per day

to 12 starts in four days29

Step 3

Digital Upgrade – Results From Case Study

Supermarket Optimization Digital Discus Upgrade

Step F Step G Step HStep E

➢ Digital upgrade to MT and LT rack

➢ Establish worst-performing MT and LT compressor

➢ Ones with the highest discharge temps were identified as the worst

➢ New Digital Discus were used instead of adding a digital retrofit kit due to high discharge temp. issue

• Ran the new MT Discus Digital and new LT Discus Digital at full load for one month to record the actual energy advantage of two new “fixed” capacity Discus vs. two that were running with elevated discharge temperatures

• 4% savings

➢ Enabled Digital Discus for MT and LT rack using the E2 enhanced suction group

➢ Medium-temp. saving with Digital = 75,000 kWh

➢ Low-temp saving with Digital = 47,000 kWh

➢ 12% additional savings

➢ Further testing was never completed

➢ Plans were to:

➢ Change new condenser, M&V for energy baseline

➢ Upgrade to ECM motors on cond. and compare to baseline

➢ Was also planning to add EEV and case controls and compare to baseline TXV

Total Digital Discus upgrade saving was 16% or

122,000 kWh, $0.14/kWh = $17,080 saving

31

Energy Retrofit Opportunities

Journey to Energy Excellence

En

erg

y C

on

su

mp

tio

n (

Eff

icie

ncy)

Time

Current

State

Step 1

Baseline Energy

Audit

• Refrigeration

Setpoints

• Break/Fix Items

Step 2

Recommission to

Factory Specs

Future

State

• RTU

Upgrade

• Demand

Control

Ventilation

Step 3

Refrigeration

Technology Upgrades

Step 4

HVAC Technology

Upgrades

Step 5

Lighting and Other

Renewables Upgrades

Step 6

Condition-based

Maintenance

6Energy Savings

Saving 18%(162,000kWh)

$0.14/kWh

$22,680

Saving 16%

122,000 kWh

$0.14/kWh

$17,080 • Adding Doors

• EEV, Cases

• ECM in Evaps

• CTES

• Digital or VFD

Compression

• Floating

Head/Suction

• Condensers

VFD

• Click and

Collect

32

Digital Discus Compressor Upgrade Measurement and Verification

00

30.6 psig

31.4 psig

Pre Post

33

Digital Discus Compressor Upgrade Measurement and Verification (cont’d.)

35

58 psig

68 psig

Pre Post

34

Digital Discus Compressor Upgrade Measurement and Verification (cont’d.)

35

Third Party Energy Reporting

36

Digital Discus Compressor Upgrade Measurement and Verification (cont’d.)

Step 3

Other Refrigeration

Additions or Upgrades

Energy Retrofit Opportunities

Journey to Energy Excellence

En

erg

y C

on

su

mp

tio

n (

Eff

icie

ncy)

Time

Current

State

Step 1

Baseline Energy

Audit

• Refrigeration

Setpoints

• Break/Fix Items

Step 2

Recommission to

Factory Specs

Future

State

• RTU

Upgrades

• Demand

Control

Ventilation

Step 3

Refrigeration

Technology Upgrades

Step 4

HVAC Technology

Upgrades

Step 5

Lighting and Other

Renewables Upgrades

Step 6

Condition-based

Maintenance

6Energy Savings

• Adding Doors

• EEV, Cases

• ECM in Evaps

• CTES

• Digital

• VFD

• Floating

Head/Suction

• Condensers

VFD

• Click and

Collect

38

Click and Collect Market Need

Online Grocery Trend

Cons

Consumer

Item PickersWalk-in

Cooler/Freezer

Bin Retrieval and

Car Delivery

…or Delivery

39

The Omnichannel for the Food Retail Industry

6 6.9 8.410.1

1214.2

17.5

22

2629.7

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Online Grocery Sales $B20.4% CAGR Thru 2021

Today 2025

% of Total Food

and Beverage

Sales

4% 20%

Online Sales $14B $50B+

% of North

Americans

Buying Some

Thru

E-Commerce

25% 70%

% of North

Americans

Willing to Spend

25% of Food

Dollar Online

15% 60%

Online Sales by

Equivalent Store

Volume

764 4,000

Source: FMI/Nielsen

https://www.cnbc.com/2017/01/30/online-grocery-sales-set-surge-grabbing-20-percent-of-market-by-2025.html

Source: https://goo.gl/bt79TS

40

42

Separate MT and LT Condensing Units Required

High Volume = Excessive Door Openings

Excessive Moisture – Potential Employee Safety Issue

Increase Consumer Demand Will Necessitate the Need for Walk-in

50% of consumers will not repeat business after a negative experience.

http://multichannelmerchant.com/operations/study-finds-expectations-not-met-ecommerce-delivery41

Emerson Advanced Analytics Capabilities

1. Enhances our understanding on sizing and loading a walk-in box based on door openings and humidity

2. Provides predictive elements to secure peace of mind for the end user

3. Can allow for better moisture infiltration shelving designs

4. Enhances pull-down models by taking into account the floor losses and locations of boxes inside/outside

5. Guarantees “accepted service level” tolerance bands

6. Allows for “better” redundancy designs to capitalize on capacity-load differences for refrigeration redundancy for potential future maintenance problems — cost-effectively oversize and not simply arbitrarily oversize

Capability differentiator

The CFD Model

42

Algorithm Development for Predicting System Health

Able to focus resources on systems with poor health

Variety of Systems

• Different sensor sets

• Different compressors

• Fixed and variable

speeds

• Different coils

• Different system ages

• Different operating

conditions

• Different products

One Emerson

Health Prediction

43

“Lesson Learned” for C&C Volume

Differentiator

Complete Solution

++

Advanced

Condensing Unit

Controls

Remote Monitoring and Predictive Controls

Emerson Will

Work With Your

Preferred W/I Box

Supplier to

Deliver

the Solution

44

Step 4

RTU Upgrades and

Demand Ventilation

Energy Retrofit Opportunities

Journey to Energy Excellence

En

erg

y C

on

su

mp

tio

n (

Eff

icie

ncy)

Time

Current

State

Step 1

Baseline Energy

Audit

• Refrigeration

Setpoints

• Break/Fix Items

Step 2

Recommission to

Factory Specs

• Digital

• VFD

• Floating

Head/Suction

• Condensers

VFD

• Click and

Collect

Future

State

• RTU

Upgrades

• Demand

Control

Ventilation

Step 3

Refrigeration

Technology Upgrades

Step 4

HVAC Technology

Upgrades

• Adding Doors

• EEV, Cases

• ECM in Evaps

• CTES

Step 5

Lighting and Other

Renewables Upgrades

Step 6

Condition-based

Maintenance

6Energy Savings

46

48

Commercial HVAC Solutions Focused the Underserved Units

North American commercial building energy savings potential is sizable. There are ~7.3 M > five-ton rooftop units in North America.

North America Rooftop

Units — Installed Base

Commercial Buildings With HVAC69%

Rooftop Penetration in Commercial Buildings58%

Addressable Market

Food-Related

Non-Food Related

23%

1,029k

77%

3,991k

Transformative Wave

Solution for Rooftop Units

• VFD Control

• Advanced

Economizer Control

• Cloud-enabled

• Fault Detection and

Diagnostics

Rooftop Units~2.9M

Rooftop Units~6.6M

Five-ton Rooftop~2.4M

Five-ton Rooftop~4.9M

A/C Units~3.2M

A/C Units~11.0M

25–50%

Energy

Savings

RTU Fault Detection and Monitoring

Rooftop Upgrade Kit

47

Energy Retrofit Opportunities

Journey to Energy Excellence

En

erg

y C

on

su

mp

tio

n (

Eff

icie

ncy)

Time

Current

State

Step 1

Baseline Energy

Audit

• Refrigeration

Setpoints

• Break/Fix Items

Step 2

Recommission to

Factory Specs

Future

State

• RTU

Upgrades

• Demand

Control

Ventilation

Step 3

Refrigeration

Technology Upgrades

Step 4

HVAC Technology

Upgrades

• Adding Doors

• EEV, Cases

• ECM in Evaps

• CTES

Step 5

Lighting and Other

Renewables Upgrades

Step 6

Condition-based

Maintenance

6Energy Savings

Held the Gainsfor 12 Months

• Digital

• VFD

• Floating

Head/Suction

• Condensers

VFD

• Click and

Collect

48

Open

Closed

End User Benefits

• More than 60% reduction in energy (verified with M&V)

• Utilities rebate

• Tight temperature control

• Improved product quality

• Increased shelf life

• Warmer aisles, increased dwell time in aisles

Contractor Benefit

• Working on securing an additional 160 stores

Customer Pain

• High energy bills on 36’ of dairy case

• Large temperature swings in cases

• Latent pain, product quality and shelf life

Execution

• Added doors to 36’ of dairy cases

• Replaced 10 HP compressor with 5 HP Copeland Digital Scroll

• Added XC634 Digital Scroll controller

Converting “Open” to “Closed” Cases in a Drug Store

49

Cold Thermal Energy Storage (CTES) — “kW” Saving

Axiom Exergy Viking Cold Rebound Technologies

50

52

Regulations

Why Upgrade Your Existing Supermarket Refrigeration Infrastructure?

Refrigeration

Food Waste

Recycling

Supervisory

and Building

ManagementEnterprise

Monitoring

Cold Rooms

Cargo

Monitoring

Bakery

Evaporator

Controllers

HVAC

Leverage IoT

Power Management

1

2

3

Long-range Sustainability4

51

• Opportunities for energy efficiency are real, therefore savings available

• While each store is complex and unique, real-time, data-driven energy program allows for savings to be realized and proven

• Transforming energy-intensive supermarkets into a flexible asset is within your reach

Conclusion

52

• It’s time to start your journey!

Questions?

DISCLAIMER

Although all statements and information contained herein are believed to be accurate and reliable, they are presented without guarantee or warranty of any kind, expressed or

implied. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments, and the user assumes all risks and liability for

use of the information and results obtained. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such

use is free of patent infringement and are not recommendations to infringe on any patents. The user should not assume that all toxicity data and safety measures are indicated

herein or that other measures may not be required.

Thank You!

53