Why is propane gaining share?
R-290 combines very low GWP, high efficiency, and low cost per kilogram, and it is not subject to HFC quotas or the uncertainty of PFAS regulations. Under the EU F-gas Regulation, small monoblock heat pumps and air conditioners must phase out fluorinated gases by 2032 and split systems by 2035, so manufacturers are redesigning products around R-290. Its high efficiency also helps meet energy labelling and ecodesign requirements. For equipment buyers, choosing propane today avoids the risk of future restrictions or price spikes affecting fluorinated refrigerants.

How large is the heat pump opportunity?
Heat pumps are the fastest-growing R-290 application. The European Heat Pump Association reported 2.88 million heat pump sales in 21 European countries in 2025, up 13%, with France and Italy the largest markets. Many new air-to-water monoblock heat pumps use R-290 because the refrigerant circuit is sealed outdoors, which reduces flammability risks. Panasonic’s AQUA-G EVO R-290 chiller can be cascaded in up to eight units for about 880 kW of heating capacity. Heat pump makers have also invested in new European production lines to meet demand for propane models.

How is R-290 used in room air conditioners?
Room air conditioners with R-290 are produced in large numbers in China and India, with charge limits set by safety standards such as IEC 60335-2-40. Midea calls itself the world’s leading R-290 air conditioner manufacturer and says its R-290 products deliver about 10% higher energy efficiency. Updated standards that allow larger charges in well-designed systems are expected to widen the range of R-290 split air conditioners in coming years. Window and portable air conditioners with small sealed propane circuits are also available in several markets.

What role does R-290 play in commercial refrigeration?
Propane is widely used in plug-in display cases, bottle coolers, ice cream freezers, and vending machines, where small charges are sealed in factory-built units. Many large food retailers and beverage companies have standardized on R-290 for these products. Water-loop systems using multiple R-290 units connected to a shared water circuit are also being adopted as an alternative to centralized HFC racks. These systems allow supermarkets to avoid large centralized refrigerant charges while keeping the efficiency benefits of propane.

What are the safety considerations?
Because R-290 is highly flammable, systems must limit charge, avoid ignition sources, and include leak detection or ventilation where required. International standards such as IEC 60335-2-40 for heat pumps and air conditioners and IEC 60335-2-89 for commercial refrigeration set maximum charges. Technicians need specific training and tools to install and service R-290 equipment safely. Most incidents involving flammable refrigerants are linked to poor installation or servicing practice, which is why certification programmes are a priority for industry associations.

How is R-290 supplied?
Refrigerant-grade R-290 must be very pure, typically 99.5% or higher, with low levels of moisture, sulfur, and other hydrocarbons, which differs from fuel-grade propane. Specialist suppliers such as Harp International, A-Gas, Linde, and other industrial gas companies purify and package R-290 in cylinders for OEMs and service technicians. OEMs typically buy in bulk directly from suppliers, while technicians buy through distributors and wholesalers. Consistent purity is essential because impurities can affect compressor reliability and system performance over long equipment lives.

What components are being developed for R-290?
Compressor and component makers are expanding R-290 product lines. Danfoss offers VZN inverter scroll compressors for R-290 heat pumps with up to 70 kW of heating capacity and less than 5 kg of charge. Secop, Embraco, and other compressor makers offer R-290 compressors for commercial refrigeration, and heat exchanger suppliers are developing low-volume designs that reduce charge. Valve and sensor makers are adding leak detection and safety shut-off devices designed for propane systems.

What is happening in industrial applications?
R-290 is used in industrial chillers and heat pumps, often in packaged units installed outdoors or in machine rooms with ventilation and gas detection. Larger systems may use multiple circuits to keep each charge within limits. Industrial users value R-290’s efficiency and freedom from F-gas restrictions.

What challenges could slow growth?
Building codes in some countries still limit R-290 use in occupied spaces. Training gaps among installers, insurance concerns, and higher component costs for safety features can slow adoption. Competition from R-32 and HFO blends in markets with less strict F-gas rules also limits growth. Insurers and building authorities are gradually updating guidance as experience with propane equipment grows.

Which R290 refrigerant market segments are growing fastest?
Air-source heat pumps and heat pump water heaters; residential air conditioning; commercial refrigeration including plug-in and water-loop systems; R-290-based mixed refrigerants for specialized uses; and direct sales to OEMs are the fastest-growing segments. Water-loop commercial refrigeration and heat pump water heaters are also showing strong growth as retailers and homeowners look for efficient low-GWP options.