This document discusses several global policy and market trends related to natural refrigerants. It provides examples of key policy measures in various countries to promote natural refrigerants. It also outlines market trends, including the growth of hydrocarbons in light commercial refrigeration, increasing use of CO2 transcritical systems, and rising competition between natural refrigerant technologies in industrial refrigeration.

2. Global Policy & Market
trends
Jan Dusek, shecco

3. Policy trends

4. Examples of key policy measures
speeding up the uptake of NatRefs
U.S. Climate
Alliance
Canada’s HFC
phase-down plan
EU F-Gas
Regulation
Australia’s HFC
phase-down plan
Regulatory measures
Fiscal measures
Standards
Japan F-Gas Law

5. South Africa’s HFC
tax proposal
France,
Spain,
Norway &
Denmark
HFC tax
Japan’s natural
refrigerants
incentives
New Zealand’s
levy on imported
HFCs
Germany’s
natural
refrigerants
incentives
Regulatory measures
Fiscal measures
Standards
Examples of key policy measures
speeding up the uptake of NatRefs

6. Indonesia’s
revised standard
on flammable
refrigerants
Regulatory measures
Fiscal measures
Standards
Philippines’s
revised standard
on flammable
refrigerants
Colombia’s
revised standard
on flammable
refrigerants
Examples of key policy measures
speeding up the uptake of NatRefs
CAR2018-1 NH3
safety
assessments
methods in China
Ongoing risk
assessment of
HC in LCR in
Japan

7. Kigali Amendment
Countries which
ratified the Kigali
Amendment
The 2 largest
economies and
most polluting
countries have not
ratified Kigali yet

8. IEC standard revision: Removing barriers for flammable
refrigerants
IEC 30335-2-89 for commercial refrigeration
• Current standard limits the charge of all flammable refrigerants to 150g
• The revised standard would increase allowable charge limit for all flammable
refrigerants – up to 500g for hydrocarbons and 1,200g for flammable HFCs (HFOs,
HFO/ HFC blends)
• Allowing higher charge limits for flammable refrigerants is important to ensure that
HFC phase-down under the Kigali Amendment and national / regional regulations can
be implemented
• IEC’s National Committee members have until 12 April to cast their vote
• If passed, new standard would be published in August

9. Market trends

10. Light Commercial Refrigeration
Hydrocarbons in LCR sector - clear winner globally?
Faster growing #NatRefs sector in China
Close to 100% conversion to HC in next few years?

11. Commercial refrigeration: HC solutions for
small stores
• Global market estimate (August 2018) =
2.5 million units
• In early 2017 there were about 1.5 million
units
• Increase of HC charge limits in industry
standards is key for the future uptake of
hydrocarbons

12. Commercial refrigeration:
Hydrocarbon waterloop
Innovative waterloop solutions are gaining ground in different
parts of the world.
There are an estimated 1,900+ stores globally, 1,700+ in
Europe, approx. 100 in the USA
According to manufacturers, waterloop solutions have:
• lower energy consumption - around 25% reduction in
running costs
• faster installation & low maintenance costs
• competitive advantage in warm climates
• flexible store layout changes
• lower total cost of ownership
Main challenge to overcome: R290 charge limits

13. Commercial refrigeration: Hydrocarbon waterloop in SEA
https://freor.com/hydroloop-system-philippines-marketplace-rustan-s-example/
• Opened in 2019 in Manilla

14. China Shop 2018
• 10+ suppliers ready with or preparing R290 line-up
• Will R290 water-loop system debut in China in 2019?

15. CO2 TC stores - from 140 to 20,000 in 10 years

16. CO2 TC stores - from 140 to 20,000 in 10 years

17. Commercial refrigeration: Global share of CO2 TC
stores
• The market transition is still in its early stages
• CO2 TC stores account for about 1% in the
USA (excluding small stores) and 2% in
Canada
• Europe remains leader with more than 10% of
CO2 TC stores
4%
7%
11%
14%
Australia
C
anada
Europe
JapanN
ew
Zealand
South
Africa
U
SA
Europe: EU + Switzerland, Norway - food retail
stores bigger than 400m2
Japan: Supermarkets & convenience stores
combined
USA: Supermarkets
Canada: Supermarkets and grocery stores
Source: Primary research among key industry
players, sheccoBase, October 2018

18. CO2 in China’s food retail
• First major CO2 transcritical in 2018
• Today: 2 CO2 transcritical stores in operation + 2
more being built by METRO in 2019
• Several local CO2 rack manufactures - different
stages of commercialization, support from
established components suppliers
• European (HQ) system manufactures getting ready
to supply CO2 transcritical to Chinese market
• 10 CO2 transcritical stores by 2020?
• Challenges: training, component availability &
cost

19. China Shop 2018

20. China Refrigeration 2018

21. China Refrigeration 2019

22. China Refrigeration 2019

23. China Refrigeration 2019

24. Industrial refrigeration: Competition between different NR
systems has increased
NR cutting edge technologies
becoming strong trend and
competing:
• Ammonia low-charge
• NH3/CO2
• CO2 transcritical
Industrial refrigeration market traditionally dominated by ammonia and H(C)FCs
Key drivers:
• Increased safety - lower risk
• Higher efficiency
• Easier servicing
• Return on investment for the end
user
• Growing competition - prices
pushed down, technology
becoming more available

26. Low-charge ammonia tomorrow
Which world region do you
expect to experience the fastest
growth in low charge ammonia
installations in the next 5 years?
44.2% of respondents expect
Europe to experience the fast
growth, followed by North
America
*Global survey conducted under the ‘World Guide to Low-Charge
Ammonia’ project, sheccoBase, May 2018

27. Industrial refrigeration: the use of CO2
CO2 transcritical - gaining grounds in
industrial refrigeration in different parts of
the world:
• bigger capacity compressors + other
components for larger applications
becoming available from several key
suppliers
• technology especially suitable for small
industrial ref (below 300kW) where
HFCs were traditionally been used, but
also used in larger installations
Refrigerated
warehousing
meat
fish
fruit / vegetable
processing
Cold
wineries,
…and more

28. China Refrigeration 2019 - new-generation
solutions for IR
• 10+ suppliers of #NR based solutions for IR
• NH3/CO2 - secondary or cascade
• HFC/CO2 cascade
• Ammonia low-charge
• CO2 transcritical

29. Low-charge DX ammonia project -
Dongguan, China