Why Dairy Farms Are Ditching Gas Heaters for CO2 Cooling Systems
How smart farms are cutting heating costs to zero while preparing for new environmental regulations
Dairy farms across America are making a surprising switch that’s saving them thousands of pounds annually while helping them stay ahead of environmental regulations. Instead of separate gas heaters and traditional cooling systems, forward-thinking farm operators are installing CO2-based cooling systems that eliminate heating bills entirely.
The Hidden Cost of Farm Heating
Most people don’t realise how much hot water dairy farms use. Between equipment sanitisation, cleaning protocols, and daily operations, a typical dairy farm can spend thousands monthly on gas or propane heating. This expense has been accepted as a necessary cost of doing business – until now.
Jim VanderGiessen Jr, whose family has been in refrigeration for three generations, explains how his company PRO Refrigeration became the first US manufacturer to develop commercial CO2 cooling systems. The results have been game-changing for their customers.
How CO2 Cooling Systems Work
Unlike traditional cooling systems that waste heat energy, CO2 cooling systems capture and reuse nearly all the heat they remove. When cooling milk or beer, these systems can recover 100% of the waste heat compared to just 40% with conventional equipment.
“We’re taking the heat that we’re removing from the beer or milk and converting that into hot water,” explains VanderGiessen. “They’re generating all of their facility’s hot water by recovering the waste heat off the cooling system.”
The temperature difference is significant too. While traditional systems can only heat water to 135-140°F, CO2 systems reach 180°F – nearly boiling temperature and hot enough for any farm application.
Real-World Cost Savings
The numbers speak for themselves. At a brewery in Alaska where power costs are extremely high, the improved efficiency of CO2 cooling made an immediate impact on energy bills. But the waste heat recovery delivered the biggest savings.
CO2 refrigerant itself costs about one-tenth the price of comparable synthetic refrigerants. For systems that typically hold 500 pounds of refrigerant, this represents substantial ongoing savings as systems inevitably need refrigerant top-ups over their lifetime.
Regulatory Changes Coming in 2026
New environmental regulations are forcing equipment manufacturers to phase out many synthetic refrigerants. Starting January 2026, companies like PRO Refrigeration will no longer be able to manufacture systems using current synthetic refrigerants.
“We’ve had to re-engineer all of our equipment every seven to ten years as regulations have changed and tightened up,” says VanderGiessen. “It will be nice to finally get to a natural solution and not have to keep making incremental steps.”
The regulations aren’t just affecting manufacturers. Businesses using synthetic refrigerants face increasing paperwork, reporting requirements, and compliance costs. CO2 systems fall outside EPA jurisdiction for synthetic refrigerants, eliminating much of this administrative burden.
The Investment Reality
CO2 cooling systems do cost more upfront – typically 30-50% more than traditional systems. A synthetic system that costs £200,000 might require £300,000 for the CO2 equivalent. However, California’s incentive programmes are helping bridge this gap, sometimes covering nearly the entire cost difference.
The higher initial investment comes from more complex control systems and higher-pressure components. CO2 operates at much higher pressures than synthetic refrigerants, requiring more robust piping and advanced control systems.
Why the Technology Is Spreading
Several factors are driving adoption beyond cost savings. The reduced regulatory burden appeals to business owners who want to focus on their core operations rather than compliance paperwork. The reliability of natural refrigerants provides peace of mind about future regulation changes.
Service requirements, while different, aren’t necessarily more complex. PRO Refrigeration provides training for technicians, and many customers have trained their own staff to handle routine maintenance on CO2 systems.
Industries Leading the Change
Dairy farms and craft breweries are at the forefront of CO2 cooling adoption because their operations have such high hot water demands. The waste heat recovery delivers immediate, measurable value that justifies the higher equipment costs.
Supermarkets and data centres are also driving innovation in CO2 cooling technology. Data centres particularly are investing heavily in efficient cooling solutions to handle increased demand from AI and cloud computing.
Looking Ahead
VanderGiessen predicts that within five years, his company will manufacture many more systems using natural refrigerants. Smaller systems will likely use propane, while larger installations continue using CO2.
The trend extends beyond commercial applications. CO2 heat pumps are becoming popular for apartment heating, and electric vehicles are incorporating CO2-based climate control systems.
Practical Advice for Farm Owners
For businesses considering the switch, VanderGiessen recommends studying what supermarkets and data centres are doing with CO2 technology. These industries have significant resources for testing and development, often leading to innovations that benefit other sectors.
“Don’t sacrifice too much performance or efficiency,” he advises. “If you have to sacrifice too much, probably don’t make the move yet. But if you can find a good business case, the positives are definitely there.”
Most importantly, verify that any new system delivers promised performance. The technology has matured enough that businesses shouldn’t have to accept reduced capacity or efficiency when switching to CO2 cooling.
The Bottom Line
CO2 cooling systems represent a practical solution for businesses facing rising energy costs and tightening environmental regulations. While the upfront investment is higher, the combination of operational savings, regulatory advantages, and future-proofing benefits make them increasingly attractive for larger operations.
As regulations continue tightening and energy costs rise, more businesses are likely to follow the lead of smart dairy farms and breweries already benefiting from this technology. The question isn’t whether natural refrigerants will become standard, but how quickly businesses adapt to this changing landscape.
For farms and breweries evaluating their cooling infrastructure, CO2 systems offer a path to reduce costs, simplify compliance, and prepare for whatever regulatory changes lie ahead.
Listen to the full conversation with Jim VanderGiessen Jr on GreenTech Pulse. Subscribe for weekly episodes covering practical green technology solutions that work in the real world.
Connect with PRO Refrigeration:
- Website: www.prochiller.com
- LinkedIn: Search for Jim VanderGiessen Jr
- Explore their PRO Green Solutions page for case studies and updates
