Embraco recently announced that it would enter the residential and commercial HVAC markets with a new line of scroll compressors offering 1.2 to 35HP that support propane (R290), R410A, R404A, “low-GWP options” and A2L refrigerants. While propane is the only natural refrigerant currently offered, it has shown great growth potential in both residential and commercial HVAC in Europe.
This past June, IKEA announced it had started selling R290 home heat pumps in Germany built by the Swedish startup Aira, which has received €243 million ($280 million) in funding. Residential propane heat pumps have been on an upward trajectory for the past few years and dominated the showfloor at ISH 2023. However, at ISH 2025, the story shifted to commercial propane heat pumps and chillers.
While some models were new offerings on display for the first time, propane has already begun to carve out a niche in commercial HVAC in Europe. Radisson recently completed two net-zero hotel retrofits, with its Oslo location equipped with an Enerblue propane chiller for space cooling. Skadec, a German manufacturer of hydrocarbon heat pumps and chillers, has built two 1.5MW (426.5TR) propane chillers designed for commercial HVAC or industrial applications.
“In the HVAC sector, this shift [to propane] is still developing,” Tom Bourquin, VP of HVAC at Nidec Global Appliance, the parent company of Embraco, told NaturalRefrigerants.com. “However, anticipating this trend, we have developed a product line ready to support air-conditioning and heating applications.”
NaturalRefrigerants.com recently spoke with Bourquin about the company’s outlook on R290 HVAC and what equipment types and regions it’s bullish on.
This interview has been edited for length and clarity.
What opportunities in HVAC does Embraco see for propane?
Tom Bourquin: R290 has already established itself as a proven solution in the light commercial refrigeration segment thanks to its well-documented advantages in capacity, energy efficiency and environmental sustainability. Looking ahead, we anticipate a broad industry shift toward natural refrigerants across most applications, although some segments will transition more quickly than others.
To stay ahead of this evolution, Embraco is ensuring the portfolio will support these next-generation refrigerants. This ensures that as the market transitions, we are positioned not just as a component supplier but as a comprehensive solution provider for manufacturers navigating this change.
What specific equipment types and regions is Embraco keeping an eye on?
TB: Embraco is observing a strong market trend toward the use of R290 in heat pump applications, driven by its high specific capacity (compared to other low-GWP refrigerants) and superior heat-transfer efficiency. Due to its flammability, broader adoption still depends on regulatory evolution and industry adaptation.
Markets with a strong commitment to ecological transition, such as the European Union, Japan and possibly even the United States, will lead the way in integrating natural refrigerants into HVAC applications. Embraco is closely following these developments and aligning its product roadmap to support this transition.
Regarding heat pumps, does Embraco expect the majority of the demand for its new R290 scroll compressors to be for residential or commercial applications?
TB: The heat pump segment represents a new and promising market for Embraco, and we are currently assessing demand and growth potential. We believe that in the long term, many segments will transition toward natural refrigerants.
We expect faster adoption of R290 in residential systems with lower refrigerant charges and greater influence from environmentally conscious end users. In contrast, larger commercial and industrial systems will require more time, as their adoption depends on regulatory advancements and significant changes in system architecture to safely accommodate the higher refrigerant charges.
“With the right regulatory support and market momentum, R290 has the potential to play a major role in the next phase of HVAC innovation.”
Tom Bourquin, VP of HVAC at Nidec Global Appliance
Will these R290 scroll compressors be used in new refrigeration applications?
TB: In larger systems, especially remote-type applications, the transition is still beginning. This is primarily due to larger refrigerant charges, which introduce safety challenges. We do anticipate broader adoption as regulatory frameworks evolve and system architectures adapt. One potential pathway is the use of R290 in chillers where outdoor refrigerant circuits may allow for higher charge volumes while maintaining safety standards.
Your new scroll compressors support multiple types of refrigerants. Does Embraco have an estimate for what percentage of sales R290 will make up?
TB: As Embraco is just entering the HVAC market with its line of scroll compressors, where HFCs still dominate the installed base, the pace of R290 adoption in this segment remains uncertain. However, we anticipate significant acceleration in the near future, particularly in light of the ongoing discussions around PFAS [per- and polyfluoroalkyl substances] restrictions, which could drive the industry toward more sustainable alternatives.
While R290 currently represents a small share of the overall HVAC market, it is a compelling option for short- to medium-term conversion. With the right regulatory support and market momentum, R290 has the potential to play a major role in the next phase of HVAC innovation.
