Carbon dioxide is becoming increasingly widely used in industrial refrigeration applications

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Carbon dioxide is becoming increasingly popular in industrial refrigeration applications. 2025-12-23 18:58 · Chen Jiangyun, Clean Energy. Industrial refrigeration is undergoing the most significant transformation it has seen in decades; carbon dioxide (CO2/R744) systems are on the rise, challenging ammonia’s long-standing dominance in this market. At the same time, regulatory pressure on fluorinated alternatives is increasing. What drove this change, and what hindered it? The industrial adoption of accelerated transcritical CO2 systems is rapidly accelerating in key markets. According to the 2024 ATMOsphere Natural Refrigerants: Industry Status Market Report, there are currently around 4,900 industrial sites in Europe that use CO2 refrigeration technology, representing a 48% increase from 3,300 such sites in December 2023. These industrial facilities account for 5.1% of Europe’s estimated total of 95,600 transcritical CO2 sites. North America is seeing even faster growth, with 870 industrial sites using transcritical CO2 in 2024, a 74% increase from 498 in 2023. These include 380 sites in the United States (an increase from 208) and 490 sites in *** (an increase from 290). Industrial applications now account for 17% of total CO2 installations in North America, far higher than the 5.1% in Europe. The growth trajectory shows continuous acceleration. Since only 1,640 sites were using this technology in March 2021, the installation of industrial CO2 systems in Europe has tripled, with adoption in North America accelerating particularly in recent years. Competing with mature technologies in the industrial refrigeration market, CO2 is increasingly challenging ammonia, a natural refrigerant that has long dominated large-scale industrial applications. Industry experts believe that ammonia’s continued dominance is fully justified. Jeffrey Hinson, vice president of CIMCO Refrigeration in the United States, the largest industrial refrigeration contractor in North America, confirmed that ammonia remains the most common refrigerant in industrial applications in the U.S. “It is a well-established, known refrigerant in the industry. “It has extremely high operational efficiency, as well as the capability to operate in heavy-duty applications and across a wide temperature range,” he explained. Wynand Groenewald, president of the U.S.-based CO2 engineering consultancy Future Green Now, further emphasized this assessment: “Ammonia remains the most popular refrigerant to use, because facilities in the United States are simply too large.” The central ammonia plant remains the preferred solution for large-scale production capacity and process facilities. ”Furthermore, Groenewald pointed out that contractors’ preferences often reinforce this status quo, going beyond technical rationality: “If it’s up to industrial contractors to decide, then it will all be ammonia.” ”Market expansion of CO2: Although ammonia holds a dominant position in this industry, carbon dioxide has made significant progress in various industrial applications. Andre Patenaude, Strategic Director of Copeland Solutions, said: “CO2 is playing an increasingly vital role in the field of industrial refrigeration, and many trends reflect the dynamics of the commercial market.” Environmental, Social, and Governance (ESG) goals are influencing decisions regarding refrigerants, with a transition away from HFCs being seen as inevitable. ”The drivers behind CO2 reduction extend beyond corporate sustainability initiatives to include practical considerations such as safety, compliance, and market dynamics. This shift is also changing the competitive landscape. Hinson observed that the market structure itself is evolving: “Small mechanical contractors have entered this industry, creating a commodity market.” ”This expansion of carbon dioxide in the market, categorized by scale, does not occur evenly across all industrial applications. Hinson observed that CO2 refrigerated warehouses of smaller scale, 200,000 square feet and below, are becoming increasingly common. However, due to limited system capacity or other complexities, processing plants are not common. The adoption of this segmentation is not a wholesale replacement, but rather it creates a strategic positioning that allows CO2 and ammonia to serve different applications. Groenewald provides a comprehensive view of this market evolution: “CO2 has had a significant impact in the industrial sector.” There is indeed a replacement of facilities that primarily use HFCs with CO2 systems, so the adoption of CO2 in the industrial sector is evident. ”The key point is that this growth is directed toward HFC substitution rather than ammonia substitution, reflecting market segmentation rather than direct competition among natural refrigerants. Gronewald pointed out that U.S. facilities are large in scale, and ammonia remains ideal for many applications, but carbon dioxide is finding its niche: \"I think the use of low-concentration ammonia has declined; I believe CO2 is taking over more of the space previously occupied by low-pressure ammonia, while central ammonia plants remain the preferred solution for large-scale and industrial applications.\" ”The regulatory drivers reshaping the market – the significant increase in the adoption of industrial CO2 – are primarily driven by the comprehensive approach adopted by the EU and the significantly different regulatory pressures imposed by various U.S. states. Understanding these regulatory frameworks is crucial for explaining market segmentation patterns in different regions. EU regulations: A comprehensive framework. The EU’s revised F-gas regulations came into force on March 11, 2024, establishing the most comprehensive framework in the world for phasing out fluorinated gases.