ATMO America: Independent New York Grocers Embracing CO₂ Refrigeration Ahead of State HFC Regulations

A panel of independent New York grocers from the National Supermarket Association, Aurora Grocery Group and Uncle Giuseppe’s Marketplace highlighted the importance of embracing CO₂ (R744) refrigeration ahead of the state’s HFC regulations at ATMOsphere America Summit 2026.

The event, organized by ATMOsphere, publisher of NaturalRefrigerants.com, took place June 2‒3 in Tarrytown, New York.

In December 2024 New York state enacted 6 NYCRR Part 494, advancing its HFC phase-down schedule, and accelerated the adoption of low-GWP options, including natural refrigerant solutions. Starting in 2034 the regulation requires new supermarket systems, remote condensing units, cold storage warehouses and industrial process refrigeration systems to meet a 20-year GWP limit of 10 or less. 

“Natural refrigerants are here to stay, and it’s better to plan with that in mind and not invest in a system that will become obsolete,” said Edwin Gutierrez, Vice President of Aurora Grocery Group and Managing Principal at Gala Foods Supermarkets. “The closer that we get to New York state’s deadline, the higher [synthetic refrigerant] costs will be. We need to get ahead of it to avoid those costs.”

Michael Nelson, President of Uncle Giuseppe’s Marketplace, and Anthony Peña, President of the National Supermarket Association (NSA) and owner of seven Save A Lot stores, joined Gutierrez to discuss the benefits of CO₂ systems and the challenges independent grocers face in adopting the technology.

Uncle Giuseppe’s: The retailer operates 12 stores, with two more Long Island locations under construction, one of which will use CO₂ refrigeration.

• Working with Hussman, a Panasonic subsidiary, and local distributor Ozone Refrigeration, the CO₂ system for the retailer’s new 47,000ft² (4,370m²) Levittown store carries a 15‒16% CAPEX premium over a comparable conventional synthetic option.
• However, Nelson projects energy savings and lower refrigerant costs to drive an expected six-year ROI, based on his experience with CO₂ in the Midwest 10 years ago.
• Nelson also pointed to the marketing value of natural refrigerants. “You get a little bit of credit with customers when you discuss the benefits and how you’re making things more efficient,” he said.

Aurora Group: The company operates the Compare Foods, Gala Foods, and GalaFresh Farms banners across 42 locations in Connecticut, Florida, Massachusetts, New Jersey and New York.

• The group recently opened a 21,000ft² (1,950m²) store featuring CO₂ refrigeration.
• Supplied by Ozone Refrigeration, the system carries a 15% CAPEX premium and has operated reliably since commissioning, with AAA Refrigeration Service providing ongoing maintenance, according to Gutierrez.
• “I’m a second-generation grocer, and the community is a big part of what we do,” Gutierrez said. “It’s not just providing goods and services but making sure that we leave our neighborhoods in a better place for future generations.”

Building bridges: The NSA represents approximately 600 stores, the majority of which are independent grocery operators based in New York City.

• The association is focused on educating members about regulatory timelines, supporting refrigerant transition and working with policymakers to ensure the financial realities facing NY’s independent grocers are taken into account, according to Peña.
• “We can spend up to $30,000 [€25,900] in a single summer on refrigerant leaks, so we are analyzing each of our seven Save A Lot stores, with plans to convert all of them to CO₂ or something more efficient in the next 5‒10 years,” Peña said. “We are tired of throwing away money.”
• In addition, Peña is evaluating CO₂ refrigeration for a new larger-format store currently in planning.

Financial support: Several organizations providing funding or incentives for adopting natural refrigerants in NY also attended ATMO America 2026, making the event a networking hub for end users, manufacturers, contractors and financiers.

• NY City Energy Efficiency Corporation (NYCEEC) provides financial guidance for energy-efficiency projects. NY City-based nonprofit and Community Developed Financial Institution (CDFI) Accompany Capital offers loans for small business expansion projects and startup costs.
• Working together, the NY State Department of Environmental Conservation (NYSDEC) and the North American Sustainable Refrigeration Council (NASRC) offer grant programs for the installation of natural refrigerant systems in supermarkets serving disadvantaged communities or under-resourced areas.
• When it comes to incentives, VEIC helps retailers secure energy-efficiency rebates for CO₂ systems with demonstrated energy savings. For natural refrigerant installations, Therm facilitates access to carbon credits and utility rebates.