If you want to know where the natural refrigerants industry is going, talk to a components supplier. The companies manufacturing heat exchangers, valves, vessels and more have their finger on the pulse of the HVAC&R industry and can tell you where it’s headed next. Some of them, like Sanhua, are taking an active role in deciding the direction.
In the past few months Sanhua has announced new components packages for CO2 (R744) and propane (R290) commercial refrigeration systems along with a new electronic expansion valve (EEV) compatible with propane-based commercial air-conditioning and heat-pump systems. The company is doubling down on CO2 components as it seeks to support condensing unit manufacturers and is seeing growing demand from the commercial HVAC sector, according to Federico Bisco, Technical Director EMEA at Sanhua.
We spoke with Bisco about the company’s recently released products, the trends it’s watching and its recent decision to join the NaturalRefrigerants.com marketplace.
This interview has been edited for length and clarity.
In 2025 Sanhua announced “complete packages” of components for CO2 and propane refrigeration systems. What motivated this packaged approach?
Federico Bisco: At Sanhua, the development of components for cooling systems operating with natural refrigerants can be considered cross-functional across different applications. For example, components certified for use with A3 refrigerants can be used in air-conditioning applications such as heat pumps, chillers or in commercial refrigeration units. Sanhua’s commercial approach is not to position itself as a simple component supplier but rather as a technical partner supporting the design of machines operating with natural refrigerants across various applications.
In commercial refrigeration, the gradual transition to natural refrigerants can be considered irreversible, and the predominant technology and refrigerant for each sub-application are now becoming clearly defined. However, the situation is not yet clearly defined for convenience stores. In this case, waterloop with a remotely located R290 refrigeration unit or a direct-expansion transcritical R744 system compete on equal footing in terms of both cost and efficiency, at least in continental climates.
The variable for one solution or the other is the average outdoor temperature. Sanhua’s strategy is not to favor a single natural refrigerant but to offer complete solutions for both carbon dioxide and hydrocarbons, including R290, R600a and R1270.
More recently, Sanhua released the DBF series electronic expansion valve compatible with R290 and designed for commercial air-conditioning and heat-pump systems. Can you describe the growth Sanhua has seen in commercial R290 heat pumps?
FB: All Sanhua EEVs are designed for interchangeable use with synthetic refrigerants and hydrocarbons, primarily R290. These valves are certified according to EN60335-2-40, ensuring safe operation in heat pumps using A2L and A3 refrigerants.
From a commercial perspective, the gradual transition in heat pumps from HFCs (R410A and R32) to R290 is barely noticeable. Our customers use the same EEV product ranges without needing to redesign their systems or adopt new, specialized drivers or control algorithms. Demand for Sanhua components in the commercial heat pump segment has grown steadily over the past two to three years driven by the expansion of energy‑efficient HVAC solutions and supported by EU policies accelerating adoption in commercial buildings.
What percentage of Sanhua’s business comes from natural refrigerant products, and how has this grown in the past few years?
FB: The most significant shift from synthetic to natural refrigerants is observed in the commercial refrigeration sector. Currently, when weighing the share of line components intended for natural refrigerants, the figure stands at around 80% of the total. This refers to countries within the European Union, and around 10 years ago these percentages were reversed. In other markets, such as Turkey or the Middle East, the share of components for natural refrigerants does not exceed 40%, with an almost complete predominance of propane, with R744 nearly absent.
“Sanhua is expanding its R744 product portfolio with the goal of completing its commercial offering within a couple of years.”
Federico Bisco,
Technical Director EMEA at Sanhua
What trends in natural refrigerants is Sanhua keeping an eye on?
FB: Our original natural refrigerants strategy was built around flammable refrigerants, with a particular focus on R290. The rationale was grounded in sales volume: Propane is a cross-application refrigerant, adopted across commercial refrigeration, residential heat pumps and commercial air-conditioning systems, making it commercially attractive to develop a single, comprehensive component portfolio that serves multiple sectors simultaneously. The current strategic priority is to replicate that breadth for carbon dioxide.
Sanhua is expanding its R744 product portfolio with the goal of completing its commercial offering within a couple of years. The focus is on introducing advanced products such as transcritical line components, electronic expansion valves, flash gas valves, solenoid valves, heat exchangers, ejectors and more at competitive price points. Our explicit objective is reducing the cost gap between R744-based systems and equivalent systems using synthetic refrigerants, particularly in applications such as condensing units, where that gap has historically been most significant.
In addition to Europe, Sanhua is also active in the Middle East. How is the natural refrigerants market developing there?
FB: Although Middle Eastern countries are still not at the same level as Europe in adoption of natural refrigerants, the roadmap typically follows this path for both AC and refrigeration: HFC/HCFC refrigerants to low-GWP alternatives and then natural refrigerants.
We expect system development to increasingly focus on high-ambient-temperature countries:
- The HVAC segment is moving from R410A to R32 (residential) and HFO blends such as R454B (commercial). Large chiller systems are considering R1234ze/1233zd to replace R134a.
- The commercial refrigeration segment is focusing on R290, especially in plug-in cabinet applications, to replace R404A.
- CO2 adoption is at an early stage with a few projects in the UAE and Jordan featuring transcritical CO2 systems.
- Ammonia [R717] is already widely used for large industrial refrigeration applications.
Why did Sanhua decide to join the NaturalRefrigerants.com marketplace?
FB: NaturalRefrigerants.com is the right marketplace, as natural refrigerants are a key topic for all HVAC&R professionals, and this platform is ideal for sharing our latest solutions and innovations in natural refrigerants. By joining, we can connect with experts, showcase new products and support sustainable HVAC&R technologies.
