Why is the refrigerant recovery volume so low? Given the high cost and technical difficulty, why recover refrigerants at all?

Source: Deng Junmei, Refrigeration Express China’s annual refrigerant emissions amount to several hundred thousand tons, yet only about 50,000–100,000 tons are recoverable. Why is the recovery volume so small—is it due to excessively high technical difficulty? In fact, that is not the case. Mr. Wang Haitao, General Manager of Tianjin Aohong Environmental Protection Materials Co., Ltd., told reporters that refrigerant recovery itself is not difficult—ordinary refrigeration enterprises can perform it. What is complex is the subsequent regeneration of recovered refrigerants. Enterprises engaged in refrigerant regeneration must hold relevant qualifications, such as certifications for special equipment operators, hazardous chemicals trading licenses, and cylinder-filling licenses. They must also possess adequate storage capacity: storing refrigerants—a hazardous substance—requires specialized storage tanks, not just ordinary warehouses. Additionally, enterprises must hold operational qualifications and technical capabilities for pressure vessels and pressure piping; otherwise, risks are substantial. Environmental impact assessments (EIA) and safety assessments (SA) must also meet regulatory requirements. Aohong is currently one of Asia’s largest enterprises specializing in refrigerant recovery and regeneration. Its work has received recognition from officials of China’s Ministry of Ecology and Environment and praise from responsible officers at the United Nations Environment Programme (UNEP). Aohong now recovers 14 million tons annually—surpassing most refrigerant recovery enterprises on the market—and achieves an environmental benefit equivalent to reducing nearly 3 million tons of CO₂ emissions. Beyond the complexity of regeneration, high recovery costs and incomplete supporting policies also contribute to low recovery volumes. As a gaseous substance, refrigerant poses hazards throughout collection and transportation. Moreover, China’s refrigerant treatment technologies lag behind those of developed countries, with shortages of skilled personnel, standardized recycling equipment, and certification systems—factors that collectively drive up recovery costs and hinder enterprise profitability. Additionally, because refrigerants are classified as hazardous goods during transport, enterprises require hazardous goods transportation licenses; installation requires energy system installation qualifications; and handling and sales each demand separate permits. Navigating this full set of procedures is time-consuming and labor-intensive. Furthermore, although national authorities urge against the arbitrary release of refrigerants, no explicit legal provisions govern such emissions—making it easy for individuals with weak legal awareness to ‘exploit loopholes’ and discharge refrigerants indiscriminately. Likewise, groups with low environmental awareness fail to recognize the hazards posed by refrigerant emissions. For instance, when Chinese households discard old refrigerators or air conditioners, they typically sell them directly to scrap dealers, who then dismantle units on-site—releasing all refrigerants into the atmosphere. As a result, over half of decommissioned air-conditioning and refrigeration equipment never enters formal recycling channels. Given the high cost and technical difficulty, why recover refrigerants at all? As China’s economy and society continue developing, the refrigeration industry grows ever more integral to daily life. Refrigerant leakage poses enormous risks—not only to property but also to human life.

Economic analysis of refrigerant recovery and regeneration technologies

• Direct cost reduction: Recovery and regeneration technologies significantly reduce procurement costs for new refrigerants. Regenerated refrigerants cost only 60%–70% of virgin products and can be reused cyclically, lowering enterprise operating expenses. For example, in the air-conditioning repair market, R32 recovery demand already accounts for over 40% of total demand, and regeneration technology can fully meet maintenance needs for existing equipment. • Energy and resource conservation: Heat recovered during the process can be reused in other production stages—for instance, for power generation or heating—further reducing energy consumption costs. Meanwhile, intelligent equipment technologies (e.g., IoT, AI algorithms) optimize recovery efficiency and minimize refrigerant waste. 2. Policy-driven incentives and subsidy support • Environmental regulation requirements: International agreements such as China’s ratification of the Kigali Amendment and the EU’s F-gas Regulation mandate the phaseout of high-GWP refrigerants and promote recovery and regeneration as compliance pathways. Starting in 2024, HFC production quota systems restrict supply, compelling enterprises to fill demand gaps through regeneration technologies. • Government subsidies and market incentives: Regenerated refrigerant producers receive direct government subsidies and are integrated into carbon trading schemes. For instance, the regenerated refrigerant market is projected to reach RMB 2 billion by 2025, growing at over 25% annually—policy benefits directly enhancing economic viability. 3. Market demand and economies of scale • Growing downstream demand: Emerging sectors—including new-energy vehicles (which use twice the refrigerant per vehicle compared to conventional fuel-powered cars), cold-chain logistics, and data centers—are driving surging demand for eco-friendly refrigerants. Rising penetration rates of next-generation refrigerants like R1234yf are boosting demand for compatible recovery equipment. • Economies of scale reduce costs: China’s refrigerant recovery equipment market is expected to expand from RMB 500 million in 2025 to RMB 1.6 billion by 2030. Large-scale production and continuous technological iteration lower per-unit equipment costs—for example, advances in cryogenic distillation and membrane separation technologies improve recovery efficiency.

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