Industrial Chillers for Decarbonisation: How to Meet ESG Goals in India

Industrial Chillers for Decarbonisation: How to Meet ESG Goals in India

Dec 08, 2025
10 min read
Decarbonisation

Industrial Chillers for Decarbonisation: How to Meet ESG Goals in India


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The ESG Revolution: Why Chillers Matter

The conversation in boardrooms has changed significantly. What used to focus solely on quarterly profits now also includes carbon footprints, sustainability goals, and ESG (Environmental, Social, and Governance) ratings. For industrial facilities in India often overlooked, a major energy consumer has become a key concern: the chiller system.

πŸ“Š Critical Insight: Industrial chillers account for 30-50% of total electricity use in process industries, making them both a challenge and an opportunity in decarbonisation efforts.

Here's how forward-thinking companies are upgrading their cooling systems to achieve ambitious ESG goals while also ensuring operational efficiency.

Understanding the Decarbonisation Challenge

Decarbonisation isn't just a trendy term; it's a measurable goal to cut carbon dioxide emissions in industrial operations. For manufacturing facilities, this involves tackling two main sources:

Emission Scope Source Impact on Chillers
Scope 1 Emissions Direct emissions from owned or controlled sources (on-site fuel burning) Direct-fired VAM chillers reduce by using natural gas
Scope 2 Emissions Indirect emissions from purchased electricity Primary targetβ€”replacing electric chillers with waste-heat VAMs
⚑ The Coal Connection in India:
  • Coal produces approximately 70% of India's electricity
  • Each kilowatt-hour consumed = ~0.82 kg of COβ‚‚ emissions
  • For a facility using 1,000 TR of conventional electric chillers: Over 5,000 tons of COβ‚‚ annually

The numbers are alarming, but solutions are becoming more available.

Why Industrial Chillers Are Decarbonisation Priorities

Chillers represent a large portion of energy use in industries crucial to India's economy. Understanding their footprint is essential:

πŸ’Š Pharmaceuticals

Temperature-sensitive manufacturing and storage facilities operate chillers around the clock, consuming 40-60% of total electricity.

πŸ₯› Food Processing

From cooling dairy products to cold storage, the food sector uses one of the largest chiller fleets in India.

πŸ›’οΈ Petrochemicals

Process cooling often requires refrigeration capacity exceeding 5,000 TR per plant.

🧡 Textiles

Precise temperature control is vital, with chillers making up 35-45% of total energy expenses.

πŸ–₯️ Data Centers

Energy used for cooling nearly equals that of IT equipment, making chillers key to decarbonisation.

πŸ“ˆ Competitive Edge

Decarbonising cooling systems leads to immediate, measurable emissions cuts and lower electricity exposure.

Vapor Absorption Machines: The Game-Changer

The most game-changing technology for reducing chiller emissions is vapor absorption cooling, especially when paired with waste heat recovery or renewable thermal energy sources.

Unlike standard electric chillers that rely on compressors and grid electricity, vapor absorption machines (VAMs) use thermal energy to power the refrigeration cycle. This essential difference opens up various decarbonisation pathways:

♻️ Waste Heat Utilization

BROAD's exhaust-fired VAM chillers convert waste heat from industrial processes, generators, or boilers into usable cooling. Energy that would typically escape into the atmosphere is used productively, decreasing overall facility carbon intensity.

πŸ”₯ Natural Gas Integration

Direct-fired VAM chillers that use natural gas emit fewer emissions per cooling unit than coal-powered electric chillers. Emission reductions range from 35-50%, depending on grid emission factors.

β˜€οΈ Renewable Energy Compatibility

VAM systems work well with solar thermal energy, biomass boilers, or biogas systems, enabling truly zero-carbon cooling when connected to renewable heat sources.

πŸ“Š Grid Independence

Non-electric cooling lessens peak demand, allowing facilities to decrease grid consumption during high-tariff periods when emissions from coal plants peak.

Real Decarbonisation Outcomes from Indian Industries

Numbers speak louder than theoretical concepts. These outcomes come from real commissioned projects that tracked performance data. Here are real outcomes from BROAD India projects:

πŸ’Š Pharmaceutical Plant, Gujarat
Previous System 500 TR electric centrifugal chillers
New System BROAD steam VAM chillers using waste steam from process boilers
Annual Electricity Savings 2.8 million kWh
COβ‚‚ Reduction 2,296 tons annually
ESG Impact 31% drop in Scope 2 emissions
🧡 Textile Mill, Tamil Nadu
Previous System Multiple electric screw chillers (800 TR total)
New System BROAD hot water VAM chillers using boiler waste heat
Annual Electricity Savings 4.5 million kWh
COβ‚‚ Reduction 3,690 tons annually
Additional Benefit 25% cut in boiler fuel use (better heat integration)
πŸ₯› Food Processing Facility, Maharashtra
Previous System 350 TR electric chillers
New System BROAD exhaust-fired VAM using diesel generator exhaust
Annual Electricity Savings 1.96 million kWh
COβ‚‚ Reduction 1,607 tons annually
Payback Period 3.8 years (from electricity savings and efficiency gains)

Integrating Chillers into Comprehensive ESG Strategies

Achieving ESG goals involves more than just replacing equipment. It requires strategic planning regarding energy flows throughout entire facilities. Here's how leading companies are undertaking chiller decarbonisation:

πŸ“‹ Step 1: Energy Audit & Carbon Baseline

Conduct comprehensive energy audits and establish a carbon baseline for comparison.

πŸ”₯ Step 2: Analyze Heat Integration

Identify available waste heat sources across your facility for VAM integration.

πŸš€ Step 3: Implement in Phases

Roll out VAM chillers in phases to manage costs and ensure operational continuity.

πŸ“Š Step 4: Measure & Report Results

Track emissions reductions and document for ESG reporting requirements.

πŸ”„ Step 5: Optimize Continuously

Use performance data to refine operations and maximize efficiency gains.

Overcoming Common Decarbonisation Barriers

❌ Common Objection #1: "Capital Cost is Too High"

While upfront costs are significant, consider that most VAM systems generate payback in 3-5 years through electricity savings alone. Government incentives (PAT Scheme, PLI) can offset 20-40% of capital costs.

❌ Common Objection #2: "We Don't Have Waste Heat"

Most industrial facilities generate more waste heat than they realize. BROAD's energy audits identify hidden heat sources. If waste heat is truly unavailable, direct-fired VAMs using natural gas still offer 35-50% lower emissions than grid-based electric chillers.

❌ Common Objection #3: "Technology Isn't Proven"

VAM technology has been deployed for decades globally. BROAD has over 30 years of experience with thousands of installations across diverse industries in India and internationally.

❌ Common Objection #4: "Maintenance Will Be Complex"

BROAD VAM chillers use lithium bromide-water refrigerant, requiring minimal maintenance. They operate with less complexity than electric chillers, with no oil contamination risks and quieter operation.

Regulatory Drivers Supporting Chiller Decarbonisation

India's regulations increasingly favor low-carbon cooling options. These policies are turning decarbonisation from voluntary efforts into competitive necessities:

Regulatory Framework Impact on Chillers
Energy Conservation Building Code (ECBC) Sets minimum energy efficiency standards for commercial buildings
Perform, Achieve, Trade (PAT) Scheme Mandates energy consumption targets for large industrial facilities
Carbon Border Adjustment Mechanism (CBAM) Penalizes high-carbon exports; low-carbon industries gain competitive advantage
State-Level Incentives Various states offer subsidies for energy-efficient cooling upgrades
Corporate Reporting Requirements Large corporations must report Scope 2 emissions; VAM systems directly reduce reportable emissions

The Financial Case: Beyond Carbon Credits

Decarbonisation offers clear financial benefits that go beyond ESG ratings:

πŸ’° Electricity Cost Reduction

Industrial rates: β‚Ή6-12/kWh. Replacing 500 TR electric chillers with VAM systems saves β‚Ή60-90 lakhs annually.

πŸ“‰ Peak Demand Avoidance

Cutting peak loads reduces demand charges, which account for 30-40% of industrial bills.

πŸ›‘οΈ Grid Resilience

Non-electric cooling maintains operations during outages, preventing production losses in temperature-sensitive processes.

🌍 Carbon Credit Potential

Emission reduction projects generate voluntary carbon credits. While prices fluctuate, they enhance project ROI.

⭐ ESG Premium

Strong sustainability records attract higher valuations and easier access to green financing at better rates.

πŸ“Š Competitive Advantage

Low-carbon certified products command premium prices in export markets and supply chain partnerships.

BROAD's Decarbonisation Technology Portfolio

πŸ”₯ Steam VAM Chillers
  • Use low to medium-pressure steam (0.2-2.5 kg/cmΒ²) from boilers or process waste
  • Single-effect and double-effect configurations
  • Capacities: 50 TR to 1,500 TR per unit
πŸ’§ Hot Water VAM Chillers
  • Operate with hot water (80-95Β°C) from engine jackets or solar thermal collectors
  • Best for lower-temperature waste heat sources
  • COP values: 0.7-0.75
⚑ Exhaust-Fired VAM Chillers
  • Transform engine or turbine exhaust (400-550Β°C) directly into cooling
  • Ideal for cogeneration systems and generator sets
  • COP values: 1.2-1.3
πŸ”₯ Direct-Fired VAM Chillers
  • Use natural gas, biogas, or diesel fuel directly
  • No waste heat requiredβ€”still deliver 35-50% lower emissions than grid chillers
  • Flexible for facilities without process heat sources

All BROAD VAM chillers use lithium bromide-water refrigerant pairs with non-toxic, zero ozone depletion potential, and zero global warming potential, aligning with international environmental standards.

The Implementation Roadmap

πŸ“… Months 1-2: Discovery & Planning

Conduct energy audits, identify heat sources, and preliminary design. Set carbon baseline and project emissions reductions.

πŸ“… Months 3-4: Design & Approval

Detailed engineering, equipment selection, and financial modeling. Get management approval and arrange financing.

πŸ“… Months 5-8: Procurement & Installation

Equipment procurement, site preparation, and installation. BROAD manages civil works, piping, electrical integration, and controls.

πŸ“… Month 9: Commissioning & Training

Commissioning, performance testing, and operator training. Verify emission reduction calculations against actual performance.

πŸ“… Ongoing: Monitoring & Optimization

Monitoring, optimization, and documentation for ESG reporting. BROAD offers preventive maintenance contracts and remote monitoring services.

Conclusion: Decarbonisation as Competitive Advantage

Chiller decarbonisation is not just about being environmentally responsible; it makes sound business sense. As global accountability for carbon emissions increases and electricity costs keep rising, facilities with low-carbon cooling systems gain a significant edge.

Early adopters enjoy benefits that later entrants will find hard to replicate:

  • βœ” Stable, low energy prices
  • βœ” Established ESG credentials
  • βœ” Better operational resilience
  • βœ” Proven routes to net-zero goals
  • βœ” Competitive advantage in global markets

BROAD India's vapor absorption technology, validated across numerous installations and backed by over 30 years of global experience, serves as a solid foundation for effective industrial decarbonisation.

The shift from conventional electric chillers to waste-heat-powered, low-carbon cooling ranks among the most impactful strategies for reducing emissions in Indian industries today.


Ready to Decarbonise Your Facility?

Let BROAD India assess your chiller systems and design a tailored decarbonisation strategy aligned with your ESG goals.

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