Refrigerants Market Is Going Natural

Refrigerants

Ammonia, hydrocarbons, carbon dioxide and other refrigerants belonging to the group of the so-called natural refrigerants are gaining ground globally, as more key players on this segment have been using them as an alternative to fluorocarbon refrigerants. In fact, the market for natural gases used in refrigeration is expected to grow 11% by 2020.

The global natural refrigerants market was valued at around USD 750.2 million in 2014 and is expected to reach USD 1,418.20 million in 2020, growing at a CAGR of around 11.0% between 2015 and 2020, according to a new report by Zion Research. Considering the global warming effects caused by fluorocarbon refrigerants, as well as the new EU legislation meant to discourage their usage, natural refrigerants are beginning to be adopted in various industries worldwide, especially in commercial refrigeration.

According to Zion researchers “Natural refrigerants are the best alternatives used for fluorocarbon refrigerants as they can be found both naturally as well as manufactured industrially. Growing awareness about global warming and other environmental issues created due to the synthetic refrigerants like fluorocarbon can be encouraged by the use of natural refrigerants such as ammonia, carbon dioxide, hydrocarbons.”

Ammonia Remains Most Popular

Ammonia was the largest product segment in 2014 and accounted for over 60% share of the total volume consumed. A regional breakdown from the Zion report shows that Europe is the dominant market concerning the use of natural refrigerants and, according to the European Commission, stringent European food laws requirements fuel the type of food refrigerants used in this region. Europe is followed by Asia Pacific, which is expected to witness significant rise in natural refrigerants market, due to large demand from rapidly developing refrigeration industry in emerging countries. Key players operating in this market includes The Linde Group, Airgas Inc., Engas Australasia, Sinochem Group, Tazzetti S.P.A., Harp International Ltd., Shandong Yueon Chemical Industry Ltd., Puyang Zhongwei Fine Chemical Co. Ltd., Hychill Australia Pvt. Ltd., A-Gas International, A.S. Trust and Holdings and GTS S.P.A.

“Commercial refrigeration application emerged as the leading application segment for natural refrigerants market and is expected to maintain its dominance over the forecast period,” says Zion Research. “Increasing consumption and trade of food items which need refrigeration has led to rise in demand for refrigeration across commercial sector. The changing food consumption patterns and the rapid growth of the frozen foods market is prominent factor responsible for fueling the commercial refrigeration industry worldwide.”

Of all known refrigerants, ammonia requires the lowest primary energy input for the “typical” application fields of the refrigeration and air-conditioning technology to create a given refrigerating capacity, thanks to its excellent thermodynamic properties, according to joint initiative project eurammon, the European initiative for natural refrigerants, whose members include some of the most prominent companies in this field, such as Alfa Laval, GEA Refrigeration or Danfoss GmbH.

This means that its indirect global warming potential is also very low. Thus, factories that use ammonia as opposed to other refrigerants have a better TEWI (Total Equivalent Warming Impact). The TEWI is the sum of the direct global warming impact – caused by the refrigerant lost through leakage and recovery – and the indirect global warming impact, in relation to the energy used over the life of the plant.

“Ammonia is sustainable not just from an ecological, but also from an economic point of view. Unlike synthetic refrigerants, it is an inexpensive feedstock and available everywhere,” explains eurammon. “The difference in price becomes evident when initially charging a plant, but also and especially when topping off leakage losses. Experts assume annual losses of between 2 and 17 percent for ramified industrial refrigeration plants, depending on a plant’s age and condition.[1] In addition to the costs of synthetic refrigerants, which are significantly more expensive than ammonia, leakage also puts a considerable strain on our climate whose effects are not yet foreseeable to their full extent.”

Selection Criteria and Benefits

Some of the key advantages associated with the use of natural refrigerants include cost-savings, low to zero impact on the environment, due to minimized greenhouse effects, as well as energy savings. Ideally, the refrigerant used should have great thermodynamic properties, good physical characteristics and should also be chemically stable.

“The decision as to which refrigerant should be used in a refrigerating or air-conditioning system is based on the major criteria of safety, costs and environment protection. But against the background of constantly increasing energy prices, the energy consumption of a system also plays an increasingly important role. The refrigerants should have no or only a negligible impact on the environment, while also being inexpensive and available worldwide,” concludes Monika Witt, Chairwoman of eurammon