R-22 Allocations Cause Price Hikes; Alternatives Unveiled

April 7, 2015

Facing a phaseout of refrigerant R-22, major manufacturers DuPont, Honeywell and Arkema have all raised prices and set allocations for larger customers this Spring. Airgas Refrigerants is helping customers plan their allocation use based upon historical consumption and anticipated needs to ensure they manage inventory properly and can navigate a year that many expect to be punctuated by price spikes, and perhaps some shortages.

“We’re hearing that companies are taking their entire allocations,” Jay Kestenbaum, Senior Vice President, Sales and Purchasing for Airgas Refrigerants, said. “It’s clear that people are nervous about R-22 and what the phaseout may cause.”

Between 2014 and 2015, the EPA reduced the production allowance for R-22 by 57% percent, which has caused a steady rise in R-22 pricing since Fall, 2014.

Airgas is one of the leading reclaimers of R-22, purifying used R-22 refrigerant gas to AHRI-700 standards. Airgas reminds contractors that it is the law to recover all R-22 refrigerants and that recovered used gases are worth money. Additionally, it’s a good practice to recycle refrigerants as it can help ensure the industry of a strong supply of R-22 long after the 2020 cessation of production.

Customers can receive a no-obligation quote to sell their used refrigerants back to Airgas Refrigerants by calling 1-800-473-3766 or visiting the Airgas quote page.

Leading industry manufacturers have introduced many alternative refrigerants for those who wish to convert systems now. Each company is working on its own line of long-term low global warming potential (GWP) refrigerants for the future. DuPont has introduced R-438A, Honeywell is marketing R-422D and R-407F and Arkema has 427A—all interim replacements for retrofitting R-22 systems. See a full list of approved refrigerants at the EPA’s Significant New Alternatives Policy (SNAP) program site.