New survey sees market growth for CO₂ in North America

Danfoss – a worldwide manufacturer of high-efficiency electronic and mechanical components and controls for air-conditioning, heating, refrigeration, industrial, and water systems – conducted the online survey to gauge industry acceptance of CO₂ refrigeration systems in North America, where CO₂ has struggled compared to Europe.

Current estimates – from shecco’s market development in mid 2016 – put the total number of CO₂ transcritical systems in North America at over 300 compared with Europe’s 8,732.

The Danfoss survey collected input from commercial and industrial refrigeration OEMs, consultants, contractors, and end users – revealing the market will move in a big way.

The commercial refrigeration industry sees CO₂ as a viable mainstream technology for refrigeration, according to the study. 82% of OEMs and 91% of consultants and end users agree with the statement that CO₂ is a viable mainstream technology for refrigeration. Half of the OEMs surveyed see CO₂ refrigeration representing at least 16% of their business within the next five years. 

This marks a major evolution from 2012; when Danfoss estimated less than 20% of OEMs saw CO₂ comprising at least 16% of their business. Back then; they identified high initial system costs as a barrier. 

According to the study, most commercial refrigeration consultants and end users are today engaged in some type of CO₂ project. They cite legislation and regulations, like the U.S. SNAP program, and corporate sustainability goals as key drivers in why they are choosing CO₂.

Peter Dee, sales and services director – food retail, Danfoss says, “the results of this survey validate the on-going growth we are seeing in CO2 projects across North America”.

Danfoss is attempting to move the market in this direction and “recently launched the CO₂ Mobile Training Unit to address the critical need for training” in the North American market, Dee said.

Industrial refrigeration goes CO₂?

The survey also identified the industrial refrigeration market as another potential market for CO₂. 57% of responding OEMs and contractors and 43% of consultants and end users said they have already either been involved in an industrial CO₂ refrigeration project or have plans to be.

Though they did not see CO₂ becoming “a significant part of their business” in the near future.

OEMs and contractors see ammonia safety concerns, along with the move to reduce ammonia charges, as key drivers of the switch to CO₂ in primary or just the secondary circuits of bigger refrigeration systems.

OSHA and the EPA in the US both have strong regulation on ammonia systems, with a charge greater than 1,000 lbs., which has already pushed a growing number of industrial refrigeration OEMS to manufacture low-charge ammonia packaged units.

These systems usually contain a secondary circuit using CO₂ in a cascade or secondary circuit system. 

Consultants and end users agreed in the Danfoss survey that CO₂ is moving into this market. In contrast to the commercial refrigeration industry, industrial refrigeration respondents said the primary barrier to further CO₂ use is the result of end user and contractor familiarity and training.