Japanese HVAC&R manufacturer Daikin showcased an expanded portfolio of propane (R290) technologies at the ISH 2025 trade show as part of its “unique and flexible” refrigerant strategy, developed to “support the European decarbonization agenda.”
“By carefully selecting the most balanced refrigerant for each application, we prioritise energy efficiency, affordability and safety throughout the entire product lifecycle, from production and installation to maintenance and decommissioning,” said Carl Lievens, General Manager Residential SBU at Daikin Europe, in a statement. “Meanwhile, we consider the European regulations on F-gases.”
Among the R290-based solutions on display at ISH 2025 were Daikin’s EWYK-QZ commercial heat pump chiller, the Altherma 4 HS-S+ series of residential heat pumps and a new single split AC unit for domestic heating and cooling. The company’s new CO2 (R744) VRF system for commercial HVAC applications was also on display, as were several products using HFC and HFO refrigerants.
None of these products are yet commercially available. Daikin has announced that its CO2 VRF system is scheduled for release in June 2025, while its commercial and residential R290 heat pumps are expected to enter the market by late 2025. The launch timeline for the single split AC unit remains unconfirmed; NaturalRefrigerants.com has contacted Daikin for further details.
“We’ve always had the policy of developing multi-refrigerant solutions, and we still do,” Patrick Crombez, Deputy General Manager of Daikin Europe’s Environment Research Center, told NaturalRefrigerants.com in an interview at the trade show.
“Propane has a certain role to play,” he added. “It is quite a good refrigerant for some applications, but it also has its downsides. Our intention is to try to cover all the applications.”
ISH 2025 took place March 17–21 in Frankfurt.
Current challenges
While the adoption of heat pumps in Europe has been growing, the market has encountered significant challenges over recent years. According to the European Heat Pump Association (EHPA), residential heat pump sales fell 47% in the first half of 2024 compared to the same period in 2023, due to factors such as fluctuating government policies, economic uncertainty and rising electricity prices.
“In the residential sector, high upfront costs and high electricity prices slow down the shift from fossil fuel-based heating to heat pumps, despite EU mandates pushing for greener energy,” explained Lievens.
The commercial sector faces similar barriers, added Crombez, emphasizing that unfavorable gas-to-electricity price ratios negatively impact the business case for heat pumps. In multi-family housing and other commercial applications, complex decision-making structures and ownership models further complicate the transition, he noted.
Despite these challenges, Daikin remains optimistic about the long-term market outlook, predicting a 250% growth by 2030.
With regards to propane heat pumps, Crombez said that Daikin is seeing varying levels of interest between countries, with some displaying some hesitance due to its flammability. For instance, Germany has shown particular interest in R290 technologies, while Spain has been less enthusiastic, he noted.
“Nordics are interested, but they also have CO2,” he added.
Daikin is not alone in expanding its R290 portfolio. Competitors such as Carrier, Viessmann, Clade and Clivet are also developing commercial propane heat pumps in response to growing demand for sustainable solutions. In the residential market, several manufacturers – including Samsung, Aira, Viessmann and Carrier – now have propane units commercially available.
