Top 5 Leading District Cooling Companies in the World

The International Energy Agency reports that the energy demand has almost tripled since 1990. Globally, the energy for cooling is utilized more than heating. The rising demand for refrigeration and air conditioning is expected to lead to soaring temperatures due to high emission rates. Rapid-paced urbanization and the increasing demand for better climate across commercial and residential infrastructure is propelling the demand for central cooling systems that can provide significant economic and environmental benefits.

District cooling is an efficient way to produce and distribute cooling across commercial applications through a central source. This system offers operational flexibility and convenience of using the same supplier for electricity that allows each building to utilize cooling as required without worrying about chiller size or capacity. According to Fortune Business Insights, the global market size is expected to reach USD 45.61 billion by 2027. Factors such as the increasing concerns regarding carbon emissions and the growing demand for green energy sources are expected to contribute to the market's growth in the near future.

High Demand from Residential Sector amid COVID-19

The lockdown announced by the government agencies has led to the closure of several commercial spaces such as malls, theatres, restaurants, and other industries. They are the biggest utilizers of district cooling systems, and the shutdown has led to a significant reduction in demand worldwide. However, the demand for cooling from the residential building is expected to witness massive growth as people are confined to their home spaces, and remote working has taken a driver’s seat worldwide. With growing digitization, remote working is expected to be integrated into the operational policies of several companies moving forward, which is projected to surge the demand for residential cooling. This translates to the shifting preference for advanced cooling systems from residential sectors amid the novel coronavirus. The companies are likely to seize lucrative opportunities provided by the growing demand for advanced cooling systems to strengthen their positions in the global market. 

Fortune Business Insights lists down the top 5 companies operating in the global market. They are as follows:

1. ENGIE

Engie SA is a French global electric utility company having its headquarters in La Defense, Courbevoie. The company accounts for over 22% of the global market share and is the largest player in the market. Having its presence across 70 countries globally, the company generated revenues worth USD 63.05 billion in 2020. Moreover, Engie operates around 320 heating and cooling systems worldwide that provide sustainable heating and air-conditioning solutions for the public and private sectors.

The company holds the number one position in providing urban cooling networks after securing a 40% stake in the National Central Cooling Company PJSC (Tabreed) from Mubadala Investment Company (Mubadala) in 2017.

2. Empower

Dubai-based Empower holds the second position in our list. Established in 2003, the company is a joint venture between Dubai electricity and water authority (DEWA) and TECOM Investments, a member of Dubai Holding through a Royal Decree issued by the Ruler of Dubai. The company's primary focus is to efficiently utilize energy resources through district cooling services (DCS) across the real estate sector. In 2002, the company generated worth USD 615 million in sales revenue and held around 20% of the market share. The company has a solid presence across the UAE. The company boasts of a repertoire of landmark projects such as Jumeirah Beach Residence, Dubai International Financial Centre, Dubai Healthcare City, Palm Jumeirah, Jumeirah Lake Towers, Business Bay, and Ibn Battuta Mall.

3. National Central Cooling Company

Holding the third position in the global market of district cooling, the National Central Cooling Company, also known as, Tabreed has a strong presence in the GCC countries and UAE. The company delivers around 1.40 million refrigeration tons of cooling across 86 plants located throughout the Middle East region. The company has been proactively working towards expanding its operating networks on the back of the increasing demand for energy that is likely to triple by 2030. Some of the company's iconic projects include Dubai Opera, Cleveland Clinic, Aldar HQ, Marina Mall, and others. In July 2020, the company held an 80% stake in Emaar company Downtown Dubai district cooling business valued at USD 675 million.

4. Emicool LLC

Emicool LLC is one of the leading district cooling service providers in the UAE. The fourth-largest company accounts for over 8% market share in terms of revenues. Dubai Investments P.J.S.C holds 99% ownership & Dubai Investments Industries LLC holds 1% ownership in Emirates District Cooling LLC (Emicool). Having nine operational projects with a total cooling capacity of approximately 179050 refrigeration tons, Dubai Investment Park 2 and Motor City are some of the landmark projects helmed by Emicool. In March 2020, the company implemented Siemens Demand Flow® Solution at its Al Jadaf District Cooling Plant in Dubai. The implementation of the system from Siemens will have a considerable impact on energy conservation.

5. Veolia

The fifth-placed company in our list, Veolia, a France-based multinational company, is one of the global leaders of optimized resource management. The company accounted for over 10% of the market share and generated USD 29.65 billion in revenues in 2020. In March 2021, Veolia secured a place on the latest ETL Net Zero Carbon Delivery (NZCD) framework designed to ensure advancement in the public sector’s carbon reduction targets. Veolia has constantly delivered a wide range of carbon reduction upgrades to the public sector that caters to sustainable development strategies.

Investments Galore - Development of Innovative District Cooling Technologies Prime Focus

At the UAE Innovates Week 2021, Emirates Central Cooling Systems Corporation (Empower), the largest district cooling solutions company, announced its continual investment in developing revolutionary and innovative technologies for this type of cooling sector. In 2020, the company deployed the world’s first-ever district cooling plant equipped with advanced artificial intelligence (AI)-based technologies to serve the residents of Jumeirah Village Circle of Dubai. Similarly, the International Finance Corporation (IFC), in partnership with UAE-based National Central Cooling Company (Tabreed), is planning to establish a district energy investment platform in Singapore.

The global energy demand has experienced an eight-fold increase. In South-East Asia, the demand has been growing twice compared to the rest of the world. For instance, India is the third-largest country in energy consumption. The cooling industry continues to be the largest contributor to energy demand, and the Cooling Action Plan of the Indian Government predicts a significant rise by 2038.

Unlocking the Potential of District Cooling with Advanced Technologies  

The increasing focus on the development of smart cities has propelled the demand for new urban planning solutions. The evolution in the efficient management of supply and distribution systems has led to smart metering solutions and innovations such as adsorption chillers. Moreover, the introduction of advanced technologies such as artificial intelligence and the increasing installations of microgrids to ensure reduced CO₂ emissions and pollution will boost the demand for advanced and sustainable cooling methods. District cooling is expected to play an important role in the conservation of energy and provide a green solution to suffice the increasing energy demand in the forthcoming years.