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The water- and energy-efficiency of commercial ice-makers varies significantly among the many equipment models on the market. In general, however, water-cooled machines are NOT the preferred option, air-cooled machines being more water-efficient, energy-efficient, AND cost-effective for the owner. The trade-offs between water use and energy consumption need to be recognized. A recently completed Potential Best Management Practice study of ice-makers was concluded in 2008 and identifies the energy and water efficiency advantages of air-cooled machines, clearly illustrating why air-cooled machines are more efficient:

PBMP Report: Commercial Ice-Makers (PDF)

More research is required to validate the advantages of air-cooled over water-cooled (open loop) machines. (NOTE: The Hoffman life-cycle cost calculator below shows that when all costs are taken into consideration, water-cooled machines are never the environmentally preferred or most economical option.)

To begin this field research process, a major study commenced in 2006 was completed with a final report by December 2007:

Field Study
A ground-breaking $80,000 field study of commercial ice machines was undertaken by the Food Service Technology Center in San Ramon, CA, on behalf of four financial sponsors: East Bay MUD, Seattle Public Utilities, Eugene Water & Electric Board, and Pacific Gas & Electric. This field study was directed at measuring "real world" water and energy consumption of installed air-cooled and water-cooled equipment at a minimum of eight field locations. Download that final study report here:

Ice Machine Field Study - Final Report - December 2007 (PDF) 

Spreadsheet Calculators of Machine Life Cycle Cost
Bill Hoffman (City of Austin, TX) has kindly allowed us to post his excellent LIFE CYCLE COST CALCULATOR. This small spreadsheet permits you to compare equivalent air-cooled and water-cooled machines to determine the cost to the owner/operator over the expected life of the machine. In order to complete the analysis, you will need to: (1) obtain information from the American Refrigeration Institute database, (2) identify where the machine is to be located (in air conditioned or un-air conditioned space), (3) identify the number of days per year the machine will operate, and (4) identify the cost for local utilities (water, wastewater, electricity). Check it out:
Hoffman Life Cycle Cost Calculator (EXCEL)

For further information on the calculator, contact Bill Hoffman at 512-974-2893.

The FSTC has also developed a calculator that provides annual and life-cycle costs. Access it here:
http://www.fishnick.com/saveenergy/tools/calculators/icemachinecalc.php 

Documents on Ice-Makers
A number of other documents by various organizations could prove helpful in understanding the products in the marketplace and their efficiencies.
Pacific Gas & Electric Report - April 2004 (PDF) 

FSTC comparison of efficiencies- March 2004 (PDF) 
Consortium for Energy Efficiency (CEE) Tiers (PDF)