Global policy measures are speeding up the adoption of natural refrigerants. Regulatory measures like HFC phase-downs in various jurisdictions and standards revisions allowing higher hydrocarbon charges are supporting market trends. CO2 refrigeration is growing for supermarkets and industrial use in North America and Europe. Hydrocarbon refrigeration has over 2.5 million units globally and is gaining ground. Low-charge ammonia is emerging for industrial refrigeration. Heat pumps using CO2 or hydrocarbons also show potential. Natural refrigerants are poised to grow as technologies improve and policies further restrict HFCs.

2. Global Policy and Market Trends
for Natural Refrigerants
Klara Zolcer Skacanova, shecco

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

4. Examples of key policy measures speeding up the uptake of
NatRefs
Regulatory measures
Standards
Fiscal measures & incentives
France,
Spain,
Norway,
Denmark
HFC tax
South
Africa: HFC
tax
proposal
Japan:
Natural
refrigerants
incentives
New
Zealand:
levy on
imported
HFCs
California
incentive
program for
green
refrigeration

5. Examples of key policy measures speeding up the uptake of
NatRefs
Regulatory measures
Standards
Fiscal measures & incentives
Colombia:
revised
standard on
flammable
refrigerants
Philippines:
revised
standard on
flammable
refrigerants
Indonesia:
revised
standard on
flammable
refrigerants
CARB2018-1
NH3 safety
assessments
methods in
China
Ongoing
risk
assessment
of HC in LCR
in Japan
IEC: 500g R290 charge approved in commercial refrigeration

6. MARKET TRENDS
CO2 refrigeration

7. CO2 transcritical stores from 140 to > 20,000 in 10 years

8. CO2 transcritical stores from 140 to > 20,000 in 10 years

9. Global share of CO2 TC stores
The market transition is still in early
stages
In the US and Canada, CO2 TC stores
account for about 1-2% respectively
In Europe, the share is about 14%
(food retail stores bigger than 400m2)

10. SUPERMARKETS
U.S.
500+
9 with ejectors; 2 all-in-one
integrated with AC
Mexico
1
265+
20 with ejectors; 45 all-in-one
integrated with AC
Canada
TC CO2 in North America today

11. TC CO2 stores annual growth
0
100
200
300
400
500
600
2012 2013 2014 2015 2016 2017 2018 2019
Canada U.S.
U.S.
1st
all-natural
store
(NH3/CO2)
U.S.
1st
TC
CO2 store
U.S.
1st
ejector in
TC CO2
store

12. SUPERMARKETS
U.S.
500+
9 with ejectors; 2 all-in-one
integrated with AC
Mexico
1
265+
20 with ejectors; 45 all-in-one
integrated with AC
Canada
Other natural refrigerant-based stores in
North America
NH3/CO2 - used in 4 stores in the
U.S. (soon 5)
R290/CO2 - 1 stores in the U.S.
R290 self-contained cases - more
than 2,500 stores in the U.S.
Overall, natural refrigerants are
used in about 8% of U.S. stores

13. CO2 in industrial refrigeration
TC CO2 - 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
‣ More than 25 companies known to be providing TC CO2
systems for industrial applications globally
‣ TC CO2 for industrial refrigeration is expected to grow five-
fold by 2020.

14. INDUSTRIAL
REFRIGERATION
U.S.
40
50
Canada
TC CO2 in North America

15. CO2 in industrial refrigeration
In June of 2018, Henningsen Cold Storage, Hillsboro,
Ore., installed its first transcritical CO2 system – and
one of the first industrial transcritical systems in the
U.S. – at a 111,000-sq-ft plant in Grandview, Wash.
In 2018, MaMa LaRosa dough-making facility in
Michigan installed a state-of-the-art CO2
refrigeration system from Carnot Refrigeration.

16. CO2 solutions for small stores
Using condensing units /
mini boosters in
operation today, mostly
in Japan and Europe
(estimation)
Known to be
providing CO2
condensing units and
mini boosters in the
market today
With CO2 installed
today
6,600+ stores 20+ companies 4,000+ plug-in units

17. DATA CENTERS
50
Canada
TC CO2 in North America

18. & key messages from the event
http://shecco.com
Global report on CO2 transcritical technology
in convenience stores, supermarkets and
industrial refrigeration
- Market analysis
- Technology trends
- Case studies
- Policy updates
World Guide to
CO2 transcritical
refrigeration
2019
OUT IN 2019!

19. MARKET TRENDS
Hydrocarbon refrigeration

20. HC-based commercial refrigeration
Global market estimate (August 2018) = 2.5
million units (excl. bottle coolers, vending
machines)
About 1.5 million units in early 2017
HC charge limit increase in IEC standard will open
up new market opportunities
In the U.S. more than 2,500 stores use propane
plug-in cases

21. HC waterloop for supermarkets
There are an estimated 1,900+ stores globally,
1,700+ in Europe, 100 in the U.S.
‣ Lower energy consumption
‣ Faster installation & low maintenance costs
‣ Competitive advantage in warm climates
‣ Flexible store layout changes
‣ Lower total cost of ownership

22. MARKET TRENDS
Low-charge ammonia

23. Low-charge ammonia in industrial refrigeration
Industrial refrigeration traditionally
dominated by ammonia and HFCs is
experiencing transition to ‘next-
generation technologies’
‣ Increased safety —> lower risk
‣ Higher efficiency
‣ Easier servicing
‣ ROI for the end-user
‣ Growing competition

24. Low-charge ammonia use
Global survey for the “World Guide to Low-Charge Ammonia” project
Share of low-charge ammonia systems on
overall projects per company is currently low
for most of the companies
Close to ½ of respondents indicated low-
charge ammonia represents less than 5% of
their projects
Only 15% respondents said it is more than
half of their projects

25. Low-charge ammonia tomorrow
Global survey for the “World Guide to Low-Charge Ammonia” project
Europe identified as the fastest growing
market for low-charge ammonia technology
36.4% of respondents expect North America
to experience fast growth
Which world region do you expect to experience the fastest
growth in low charge ammonia installations in the next 5 years?

26. Low-charge ammonia: recent cases in America
Piggly Wiggly NH3/CO2 cascade
refrigeration system with ultra low
charge of ammonia (24kg), reaching over
28% savings compared to HFC-407A
system
KPAC cold storage replaced R22 system
with ultra-low-charge ammonia system.
Energy costs are about 20% less
compared to the old R22 system, even
though the new building holds 50%
more space.

27. Text
TITLE
Comprehensive guide to the low-charge
ammonia industry.
- Market analysis
- Technology trends
- Code & standards updates
- New applications for ammonia
SURVEY ONGOING
World Guide to
Low-charge
Ammonia
2019
OUT IN 2019!

28. MARKET TRENDS
Heat pumps

29. CO2 heat pumps
Untapped market in North America
APPLICATION: multi-family apartments, restaurants, hotels,
wineries, distilleries…
2,000+ residential CO2 heat pumps and 25+ commercial /
industrial in the U.S.
In Japan, more than 6 mil., other regions picking up
DRIVERS:
‣ Growing movement towards “decarbonisation” and
“electrification” of building heating systems —> low-cost, low-
risk way to reduce GHG emissions
‣ Utilities supporting electric heat pumps to replace gas boilers

30. HC heat pumps
Strong interest in Europe
—> from 12 HC heat pump manufacturers in 2017 to around
30 today
Production level currently low (220k units in the market),
but potential for strong growth
BARRIER: Standards not allowing high enough hydrocarbon
charges

31. Removing barriers for HCs
Improve standards & product design for their safe use
Conduct field study on leak hole size and type per
application + set up public databases
Conduct quantitative risk assessment and develop
prototypes with enhanced product safety features for
5 different types of equipment
Funded by the EU LIFE Programme

32. Concluding remarks
‣ In light of growing legislative pressure on HFCs, natural refrigerant-based technologies
emerge as leading alternatives (not only compliant, but future-proof)
‣ CO2 transcritical refrigeration technology has matured and gaining presence in different
parts of the world and different sizes of applications
‣ Growing competition means the focus will be on improving efficiency, reducing cost,
integrating refrigeration systems with other heating & cooling needs towards net-zero
energy installations
‣ Technology improvements make it possible to use natural refrigerants in applications
where it was not possible before (e.g. low-charge NH3 in HVAC)
‣ The speed of HFC-free technology adoption will be determined by the availability of
technicians able to safely install and maintain the refrigeration equipment

34. Speed Networking