The use of transcritical CO2 (R744) refrigeration in commercial and industrial applications continues to rise in both Australia and New Zealand, according to ATMOsphere’s report “Refrigeration: Commercial and Industrial Refrigeration with Natural Refrigerants.”
As of December 2025 roughly 400 of Australia’s supermarkets and grocery stores use CO2 refrigeration, representing a 21% increase from the 330 outlets in 2024. The number of New Zealand retail outlets using transcritical CO2 increased by 4%, from 240 to 250 during the same period. ATMOsphere is the publisher of NaturalRefrigerants.com.
An estimated 70 industrial sites in New Zealand use transcritical CO2 systems as of December 2025, up 16% from the 60 locations at the end of 2024. In Australia, the number of industrial sites using CO2 grew 25%, from 20 locations in 2024 to 25 in 2025.
The full report can be downloaded for free here.
The Australia market
There were an estimated 4,700 supermarkets and grocery stores in Australia in December 2025, with retailers Woolworths and Coles dominating the market. The penetration of transcritical CO2 in the Australian supermarket sector is 8.5%, up from 7.7% in 2024.
With the absence of government mandates, corporate sustainability goals have been a primary driver for natural refrigerant adoption in Australia. Woolworths, which operates in Australia and New Zealand, has said that moving to natural refrigerants will help cut its emissions by 89% by 2030 compared to a 2006 baseline. Coles aims to fully transition to low-GWP or natural refrigerants by 2050, with plans to convert 20 to 30 stores each year.
In 2025 Woolworths added transcritical CO2 refrigeration to 26 new and existing stores, raising its total to 127 CO₂ sites, or about 7% of its 1,715 grocery stores and distribution centers. Meanwhile, Coles installed natural refrigerant systems in 26 supermarkets and 24 liquor stores, bringing its total to 184 natural refrigerant-based sites, representing about 10% of its store portfolio.
The use of ammonia (R717) in industrial applications continues to grow in the region, outpacing transcritical CO2 in the segment. As of December 2025, there were an estimated 75 industrial sites using low-charge ammonia systems, a 15% increase from the 60 sites in December 2024.
The New Zealand market
There were 1,090 supermarkets and grocery stores in New Zealand as of December 2025, with Woolworths and Foodstuffs brands holding the majority of the market share. The penetration of transcritical CO2 in the New Zealand supermarket sector is 23%, up from 22% in 2024.
Market drivers for the uptake of CO2 refrigeration in New Zealand include levies on synthetic refrigerants, corporate sustainability commitments and the country’s mild climate, which supports COPs typically ranging from 4 to 5.
As an early adopter of CO2 refrigeration, Woolworths first started using the natural refrigerant in 2016. Foodstuffs South Island, with 185 grocery stores and 179 liquor stores, operates CO2 systems across all 12 of its Pak’nSave stores and 33 of its 39 New World locations, representing 84% of the banner.
On the industrial side, Foodstuffs North Island said it plans to invest NZ$70 million (US$42 million/€35.6 million) in a new CO2-based chilled and frozen distribution center in Mangere, with the floor fully convertible between chiller to freezer. In 2025 Danish shipping giant Maersk opened a cold storage facility near Hamilton, with CO2 racks supplying 0.9MW (256TR) of cooling capacity, 2.1MW (597TR) of blast freezing, 1.7MW (483TR) of freezing, 0.15MW (43TR) of air-conditioning and 2MW of heating.
