Abstract: The metal shell of a furnace or cupola is cooled by means of water flowing down over the exterior surface of the metal shell. In order to reduce heat loss and thus decrease the energy consumption, the interior surface of the metal shell is lined with a fired refractory shape. The thermal conductivity of the refractory material and its thickness are selected such that the amount of refractory material remaining upon reaching equilibrium conditions will be sufficient to maintain the mechanical and structural integrity of the lining. Refractory materials of different conductivities may be selected for various locations in the furnace depending upon the temperatures to be encountered.