Global Market Outlook on HFO-1234yf Refrigerant 

The HFO 1234yf market is oligopolistic with only two players, Chemours and Honeywell. R-1234yf or HFO 1234yf is a refrigerant with low Global Warming potential (GWP), developed jointly by Chemours (DuPont) and Honeywell

R-1234yf is a patented technology, and the patents are held by Chemours and Honeywell. HFO 1234yf patents held by Chemours and Honeywell expires only in 2023

Current Market for HFO 1234yf

  • About 18 million cars are currently equipped with HFO 1234yf and is expected to reach 50 million cars by 2025 
  • Regulations and incentives in countries like EU, US, Japan, and Canada is driving auto sector to shift to HFO-1234yf, which has GWP<1
  • Production of HFO 1234yf is possible only if Chemours (or) Honeywell licenses a contract to a manufacturer. However, the rate of capacity expansion or licensing has been slow; and hence, the supply is tight at present
  • MAC Directive by European Union has set the standard that all cars sold after 2017 should have refrigerants with GWP less than 150. Automakers in the US are also adopting R1234yf to help comply with Corporate Average Fuel Economy (CAFE) and vehicle greenhouse gas standards
  • Prices of HFO 1234yf is 6-8 times more than that of the current refrigerants in use. Prices are determined by Chemours and Honeywell

HFO 1234yf – Manufacturers

  • There are only two product owners in the market: Chemours and Honeywell. Few other companies have received the license from the product owners to manufacture HFO 1234yf
  • Arkema has filed a complaint with the European Commission that Honeywell is denying license to produce HFO 1234yf. Arkema has stated that Honeywell is creating an unfair market dominance with the patents. If Arkema is given the license, then it would build two plants in Changshu City, China, and Europe