In 2022, global renewable chemicals market size was around USD 91.7 billion.
Refrigeration plays a crucial role in our daily lives, from preserving food and medicine to creating comfortable indoor environments. However, traditional synthetic refrigerants have raised environmental concerns due to their significant contribution to global warming and ozone depletion. In recent years, there has been a growing interest in natural refrigerants as a sustainable and eco-friendly alternative. Natural refrigerants, derived from naturally occurring substances, offer a promising solution to mitigate the environmental impact of cooling systems while ensuring efficient and effective cooling
R-744, also known as carbon dioxide, is one of the most widely used natural refrigerants in the world. It has a low Global Warming Potential (GWP) (1) and is not toxic or flammable. Carbon dioxide-based refrigerants are mainly used in commercial refrigeration and supermarkets, as well as in heat pumps.
Ammonia has been a refrigerant for more than a hundred years. It has high thermodynamic properties, is energy efficient, and has a GWP (Greenhouse Gas Potential) of 0. Ammonia is widely used in industrial refrigeration, cold storage and large-scale cooling systems. However, it is important to note that ammonia is toxic and requires careful handling and system design.
Propane and Isobutane, both derived from petroleum, are also natural refrigerants with low GWPs and are suitable for a variety of applications, such as domestic refrigerators and freezers, as well as air conditioning systems. However, their flammability necessitates safety precautions.
Natural refrigerants have significantly lower or zero ozone depletion potential (ODP) and GWP, compared to synthetic refrigerants. Their use helps in reducing greenhouse gas emissions and combating climate change. Natural refrigerants exhibit excellent thermodynamic properties, allowing for efficient heat transfer and energy utilization. They contribute to lower operating costs and reduced energy consumption in cooling systems. Natural refrigerants, such as CO2 and ammonia, are naturally occurring substances that are widely found at and can be obtained sustainably, reducing dependence on non-renewable resources.
Canada, known for its commitment to environmental stewardship, is at the forefront of adopting natural refrigerants as a solution to mitigate the climate impact of cooling systems. Canada's increasing awareness of environmental issues, coupled with stringent regulations and a commitment to reduce greenhouse gas emissions, has accelerated the demand for natural refrigerants. The country's refrigeration industry, spanning commercial refrigeration, industrial applications, and residential cooling, is embracing the transition towards sustainable cooling solutions.
Government Support and Initiatives are Driving Market Growth
As a country that values environmental sustainability, Canada recognizes the urgent need to mitigate climate change. Natural refrigerants, with their significantly lower or zero global warming potentials (GWPs), offer a viable solution to reduce greenhouse gas emissions. By transitioning from synthetic refrigerants to natural alternatives, the cooling industry can play a crucial role in combating climate change and meeting Canada's emission reduction targets.
Shifting Consumer Demand is Driving Market Growth
Canadian natural refrigerants market is experiencing a period of rapid growth due to ongoing innovation and technological progress. Research and development (R&D) efforts are aimed at enhancing the effectiveness, safety and compatibility of the natural refrigeration systems, including system design, component optimisation and refrigerant management methods. As natural refrigeration technologies are continually developed, they become more accessible, dependable and economical, thus promoting their use in a wider variety of applications.
Collaborations and partnerships among industry players, government agencies, and research institutions are vital growth drivers for Canada's natural refrigerants market. These partnerships foster knowledge sharing, research initiatives, and the development of best practices. They also contribute to the establishment of training programs and certifications that enhance the skill set of technicians and ensure the safe and efficient operation of natural refrigeration systems. The collective efforts of these collaborations strengthen the market ecosystem and accelerate the adoption of natural refrigerants.
Major Challenges Faced by Canada Natural Refrigerants Market
While natural refrigerants are generally safe, certain refrigerants, such as ammonia (NH3), require careful handling due to their toxicity. Ensuring the safety of technicians and end-users is crucial. Adequate training programs, certifications, and safety guidelines need to be established to educate industry professionals about the proper handling, maintenance, and emergency protocols associated with natural refrigeration systems. Strengthening training initiatives will help address safety concerns and build confidence in the industry.
In certain areas of Canada, natural refrigeration equipment and components may be difficult to obtain. The natural refrigeration market is still in its infancy, and businesses may find it difficult to find equipment that is both accessible and cost-effective. To bridge this gap, it is recommended that equipment manufacturers collaborate with one another and that research and development (R&D) initiatives be implemented to expand the range of natural refrigeration options found at to businesses..
Navigating complex regulatory frameworks and standards can pose challenges for businesses transitioning to natural refrigerants. While Canada has regulations in place to support the phase-out of high-GWP synthetic refrigerants, there is a need for harmonization at the provincial and federal levels to ensure consistent regulations and facilitate market growth. The establishment of clear guidelines, standards, and certifications specific to natural refrigerants, will provide businesses with a more streamlined and supportive regulatory environment.
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Recent Trends and Developments
- In
Canada, the regulatory framework governing the use of refrigerants, has
undergone notable transformations to promote the adoption of natural
refrigerants. In 2018, the country ratified the Kigali Amendment to the
Montreal Protocol, committing to gradually phase down the production and
consumption of hydrofluorocarbons (HFCs) with high GWPs. This global commitment
has spurred the adoption of natural refrigerants, such as hydrocarbons (HCs),
ammonia (NH3), and carbon dioxide (CO2), which have significantly lower or zero
GWPs.
- The
utilization of natural refrigerants has seen a surge in Canada, with
supermarkets and convenience stores leading the way in the adoption of systems
based on natural refrigerants. Transcritical CO2 systems have become
increasingly popular due to their high energy efficiency and minimal
environmental footprint. Additionally, a number of companies have begun to
incorporate high-temperature hydrocarbons (HCs) into their refrigeration units,
such as R-290 propane and R-600a isobutane..
- Ammonium
remains a preferred source of energy in the industrial sector due to its
advantageous thermodynamic characteristics and low Gross Wholesale Product
(GWP). The utilization of ammonia systems in food processing facilities,
distribution centers and breweries has seen a rise in recent years.
Additionally, CO2 utilization in industrial applications has seen an increase
due to its low Gross Wholeness Per Unit (GWP) and its accessibility as a
by-product of industrial processes, such as cold storage warehouses or ice
rinks.
Market Segmentation
Market Players
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Attribute
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Details
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|
Base Year
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2022
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Historic Data
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2018 –
2021
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Estimated Year
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2023
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Forecast Period
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2024
– 2028
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Quantitative Units
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Revenue in USD Million and CAGR for 2018-2022
and 2023-2028
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Report coverage
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Revenue
forecast, company share, competitive landscape, growth factors, and trends
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Segments covered
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Type
Application
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|
Regional scope
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Quebec,
Ontario, Alberta, British Columbia, Saskatchewan, and Manitoba
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Key companies profiled
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CIMCO
Refrigeration, Embraco, Mayekawa Canada, GEA Refrigeration Canada Inc,
Danfoss Canada, BITZER
Canada Inc., Systemes LMP Inc., Hussmann Canada Inc., Carnot Refrigeration
Inc., Emerson Climate Technologies Canada
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|
Customization scope
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10%
free report customization with purchase. Addition or alteration to country,
regional & segment scope.
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|
Pricing and purchase
options
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Avail customized purchase options to
meet your exact research needs. Explore purchase options
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Delivery Format
|
PDF
and Excel through Email (We can also provide the editable version of the report
in PPT/Word format on special request)
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