Stolz Engineering Targets Cooling Tower Energy Savings With Sensor and AI Retrofit Platform

Singapore-based cooling tower specialist Stolz Engineering is developing an Internet of Things and artificial intelligence platform aimed at reducing the energy consumption of existing cooling infrastructure, as companies across Southeast Asia face growing pressure to improve operational efficiency and lower emissions.

The system, called the Smart Cooling Tower Internet of Things Sustainability Framework, is based on a retrofit-first approach. Rather than replacing aging cooling towers with entirely new equipment, Stolz intends to add monitoring, data analysis, and automated controls to existing systems.

The approach could be particularly relevant for facilities where cooling is critical to continuous operations, including semiconductor plants, pharmaceutical manufacturing sites, data centers and large commercial buildings.

Stolz plans to deploy its AI-integrated platform by the first quarter of 2027. The company ultimately aims to apply the technology across approximately 1,000 cooling facilities that it supports in Singapore, before expanding its use further in Malaysia and Thailand.

Sensors Bring Existing Cooling Towers Online

The framework uses existing equipment sensors alongside additional non-invasive IoT monitoring devices installed on cooling towers.

These sensors can collect information including temperature, water consumption, pressure, weather conditions, and the mechanical health of cooling equipment. The data is transmitted through an IoT gateway to a cloud-based platform where it can be analyzed.

Artificial intelligence is then used to interpret operating data and identify opportunities to improve performance. Information can be presented to operators through real-time dashboards, alerts, and reports, while some functions can be adjusted automatically.

One example is cooling tower fan speed. Instead of operating fans at unnecessarily high speeds regardless of cooling demand, the platform can adjust their operation according to actual conditions.

This matters because cooling towers are part of broader chilled-water and heat-rejection systems whose energy requirements can vary considerably as cooling loads and ambient conditions change.

Variable-speed operation is already recognized as an important efficiency measure for cooling systems. Singapore's National Environment Agency has previously identified variable-speed cooling tower fans and pumps as technologies capable of reducing electricity consumption when combined with appropriate temperature controls.

The digital platform adds another layer by continuously collecting operating information and using that data to inform equipment controls and maintenance decisions.

Proof of Concept Indicates Potential Energy Reductions

Stolz tested the framework through a proof of concept involving a cooling tower at Singapore Polytechnic, where the sensors and digital platform were operated under real-world conditions.

Based on the results, the company reported a potential 47.5% reduction in fan energy consumption.

For a large 40-cell cooling tower installation with approximately 60,000 refrigeration tons of cooling capacity, Stolz estimates that the technology could generate annual savings of as much as S$2 million.

The Business Times also reported projected savings equivalent to 836 kWh of energy and 0.36 metric tons of carbon emissions per fan annually. These figures are projections based on the proof of concept and should not be interpreted as independently verified savings across all cooling tower installations. Actual performance would depend on equipment design, operating hours, cooling demand, climate conditions, and the efficiency of the existing system.

The broader value proposition extends beyond electricity savings. Continuous monitoring can also provide operators with information about equipment condition, potentially allowing maintenance teams to detect declining performance or mechanical problems before they result in larger efficiency losses or unplanned downtime.

Extending equipment life could also reduce the materials, capital expenditure and disruption associated with replacing complete cooling tower systems.

Cooling Remains a Major Energy Demand

The initiative comes as Singapore places increasing emphasis on improving the efficiency of existing buildings and cooling infrastructure.

Cooling is particularly important in the country's tropical climate. Singapore's Building and Construction Authority estimates that cooling can account for approximately 40% to 60% of a building's energy consumption. The agency has therefore identified more efficient cooling technologies as an important component of its building decarbonization strategy.

In July 2026, BCA said its Design Prototyping for Decarbonization study found that Singapore's target of improving building energy efficiency by 80% from 2005 levels remains technically achievable for several categories of new and existing buildings.

The study highlighted alternative cooling systems and better management of electrical loads among the main opportunities for further reductions. Alternative cooling technologies assessed by BCA were capable of cutting building cooling energy consumption by around 30% to 50% in certain applications.

Existing buildings are also becoming increasingly important in Singapore's regulatory approach.

Building owners covered by the country's environmental sustainability requirements can be required to conduct periodic audits of cooling systems, submit energy consumption information and, in some circumstances, implement energy efficiency improvements.

Under Singapore's Mandatory Energy Improvement regime, owners of consistently energy-intensive buildings may be required to conduct an energy audit and implement measures intended to reduce building energy consumption by 10% relative to a three-year historical baseline.

This creates a potentially favorable environment for technologies that improve existing assets rather than requiring their immediate replacement.

Retrofit-First Approach Reduces Replacement Barriers

Cooling infrastructure represents a significant capital investment and is frequently connected to processes that cannot easily be interrupted.

Replacing complete cooling towers can therefore involve not only equipment costs but also engineering work, commissioning and potential disruption to operations.

Stolz's strategy instead focuses on extracting additional performance from equipment that is already installed.

The company provides cooling tower installation, testing, maintenance, parts replacement and related engineering services across Singapore, Malaysia and Thailand. Its project portfolio spans sectors including pharmaceuticals, semiconductors, petrochemicals, healthcare and district cooling.

According to The Business Times, facilities supported by the company include operations associated with Pfizer, Lonza, GSK, Global Switch and Singtel, illustrating the range of industries where reliable cooling is essential.

Data centers and semiconductor manufacturing are particularly demanding applications because cooling systems must operate reliably for long periods while managing large and often variable heat loads.

As computing capacity and industrial production expand across Southeast Asia, improving the efficiency of this infrastructure could become increasingly significant for both operating costs and electricity demand.

From Equipment Replacement to Continuous Optimization

The Stolz project reflects a wider shift in industrial energy management from periodic equipment upgrades toward continuous performance monitoring.

Sensors, connected equipment, and automated controls can allow operators to assess how infrastructure performs under actual operating conditions rather than relying exclusively on design specifications or occasional inspections.

For older cooling systems, this can help identify whether poor efficiency results from the underlying equipment itself or from operational factors such as fan speeds, water flow, temperature settings, or maintenance conditions.

However, digital controls cannot eliminate every source of inefficiency. Some systems may still require mechanical upgrades or eventual replacement, particularly where equipment is approaching the end of its operational life.

The potential advantage of a retrofit-first strategy is that it gives facility operators another option between continuing to operate inefficient equipment unchanged and undertaking full replacement.

Stolz now faces the challenge of demonstrating whether the efficiency improvements achieved during its proof of concept can be replicated consistently across a much larger and more diverse portfolio of cooling installations.

If successful, the planned rollout from 2027 could provide additional evidence of how digital monitoring and automated optimization can reduce energy demand from existing cooling infrastructure while extending the useful life of installed assets.

Source: www.businesstimes.com.sg