The Future of CO₂ Refrigeration in Australian Supermarkets

Walk into a newly built or recently refurbished supermarket in Australia and there's a good chance the refrigeration system keeping your groceries cold is running on CO₂ (R744).

Once considered a technology best suited to Europe's cooler climate, transcritical CO₂ refrigeration has rapidly become the preferred choice for major Australian supermarket chains.

Driven by environmental targets, improved system efficiency and advances in refrigeration technology, CO₂ is no longer an emerging option—it's becoming the new standard.

So, where is the Australian market today, and where is it heading?

Australia's Shift Towards CO₂ Refrigeration

For decades, Australian supermarkets relied on synthetic refrigerants such as:

• R404A

• R134a

• R410A

While these refrigerants perform well, many have high Global Warming Potentials (GWP), meaning even small refrigerant leaks can have a significant environmental impact.

CO₂, by comparison, has a GWP of just 1, making it one of the most environmentally responsible refrigerants available.

Combined with Australia's HFC phase-down and increasing corporate sustainability commitments, this has accelerated the transition to natural refrigerants.

How Many Australian Supermarkets Use CO₂?

The adoption of transcritical CO₂ systems has grown rapidly over the past few years.

Industry data suggests Australia now has approximately 400 supermarkets operating transcritical CO₂ refrigeration systems, representing around 8.5% of the country's supermarket sector.

While that may seem like a relatively small percentage, the growth rate tells a different story.

The number of installations increased by more than 20% in a single year, demonstrating that investment continues to accelerate as older refrigeration systems reach the end of their service life.

Major Supermarkets Are Leading the Transition

Australia's largest supermarket chains have made significant investments in natural refrigerant technology.

Woolworths continues to roll out transcritical CO₂ systems across new stores and major refurbishments as part of its broader emissions reduction strategy.

Coles has also committed to expanding the number of stores operating on natural refrigerants while progressively reducing its dependence on high-GWP synthetic refrigerants.

As these retailers continue upgrading their networks, CO₂ refrigeration is becoming their preferred long-term solution rather than an experimental technology.

Why Are Supermarkets Choosing CO₂?

Several factors are driving the transition.

Lower Environmental Impact

One of the biggest advantages of CO₂ refrigeration is its exceptionally low environmental impact.

Unlike many traditional refrigerants, CO₂ has:

• A Global Warming Potential (GWP) of 1

• Zero ozone depletion potential

• Long-term regulatory acceptance

For large supermarket chains managing hundreds of refrigeration systems, reducing refrigerant emissions can make a significant contribution towards corporate sustainability goals.

Improved Technology

Early CO₂ systems struggled in hot climates because operating pressures increase significantly once ambient temperatures exceed 31.1°C.

Australia's climate initially made many retailers hesitant.

Today's systems are very different.

Modern technologies such as:

• Parallel compression

• Multi-ejector systems

• Adiabatic gas coolers

• Advanced electronic controls

have significantly improved system performance in high ambient conditions, allowing CO₂ refrigeration to operate efficiently throughout much of Australia.

Better Energy Performance

Modern supermarket refrigeration systems are increasingly designed as complete energy management systems.

Many now incorporate:

• Heat recovery

• Space heating

• Hot water production

• Advanced energy optimisation

Instead of wasting heat generated during refrigeration, stores can recover and reuse it elsewhere within the building, improving overall energy efficiency.

What's Slowing the Transition?

Although adoption is growing quickly, several challenges remain.

Higher Initial Investment

Transcritical CO₂ systems generally require a higher upfront investment than conventional HFC systems.

While equipment costs continue to fall, the initial capital expenditure remains one of the biggest considerations for independent supermarkets and smaller retailers.

Demand for Skilled Technicians

CO₂ systems operate at significantly higher pressures than traditional refrigeration systems.

This requires technicians with specialised knowledge of:

• High-pressure pipework

• Commissioning

• Pressure testing

• CO₂ controls

• System optimisation

As demand grows, so does the need for experienced refrigeration professionals.

What Does This Mean for the Refrigeration Industry?

The continued growth of CO₂ refrigeration has implications far beyond supermarket operators.

Demand is increasing for:

• High-pressure copper piping

• CuFe2P (K65) pipe and fittings

• 70 bar and 130 bar fittings

• Pressure-rated valves

• CO₂-compatible components

For contractors and wholesalers, understanding these products is becoming increasingly important as more projects specify natural refrigerants.

Looking Ahead

Industry forecasts suggest Australia's transcritical CO₂ refrigeration market will continue expanding strongly throughout the next decade.

As equipment becomes more affordable, technician expertise grows and environmental regulations continue evolving, adoption is expected to extend beyond the major supermarket chains into:

• Independent supermarkets

• Cold storage facilities

• Food processing plants

• Distribution centres

• Large industrial refrigeration applications

For many new commercial refrigeration projects, CO₂ is no longer the alternative—it is becoming the default choice.

The Bottom Line

The Australian refrigeration industry is undergoing one of its biggest technological shifts in decades.

What began as an environmentally driven alternative has evolved into a mature, reliable and increasingly mainstream refrigeration solution.

For contractors, engineers and wholesalers, understanding CO₂ refrigeration—and the specialised components it requires—is becoming essential.

As more supermarkets transition away from synthetic refrigerants, demand for high-pressure piping systems, pressure-rated fittings and CO₂-compatible products will only continue to grow.