Vessel operators face rising refrigeration costs as UK aligns with EU F-gas phase-down

UK vessel operators using conventional refrigeration gases face a tightening cost and compliance squeeze as the UK government moves to accelerate its F-gas phase-down. Fluorinated gases (F-gases) are man-made gases used in a range of industrial applications – for example, included in refrigeration units on commercial boats.

DEFRA’s consultation on new UK regulations signals a shift towards the faster EU timetable, increasing the risk of higher refrigerant prices, limited supply and unplanned downtime for operators who delay action.

This means operators still running legacy refrigeration systems need to act now, as the window for cost-effective transitions is closing.

Paul Antley, director at Star International and a marine refrigeration engineer, warns: “If you’re still running older refrigeration systems and haven’t looked at switching, you need to act now. The proposed changes mean the phase-down is speeding up significantly and those without a transition strategy will find themselves with limited options and higher costs.”

Refrigerants play a critical role onboard commercial vessels, supporting cargo refrigeration, provision storage, HVAC systems and engine room cooling. However, many of the hydrofluorocarbon (HFC) gases commonly used are already becoming harder to source as environmental regulations restrict supply.

Both the UK and the European Union have operated HFC phase-down schedules since 2015, gradually reducing the volume of high global warming potential refrigerants allowed on the market. The UK reached a 69 per cent reduction in HFCs in 2024, with the next major scheduled cut due in 2027.

In the European Union, the revised F-Gas Regulation that came into force in March 2024 accelerates that timeline sharply. Quota allocations fall to 60 per cent of 2011–2013 production volumes in 2025 and decline further to just 15 per cent by 2036. DEFRA is now proposing to adjust the UK schedule to match, and potentially exceed, the EU’s approach.

Antley says the impact is already being felt in the marine sector. “We’re already seeing this with some legacy gases. R404A and R507 are heavily squeezed, with supply relying on reclaimed stocks. Operators who haven’t planned ahead are paying a premium when systems fail,” he says. “The DEFRA consultation makes it clear this squeeze is coming for mid-range refrigerants like R410A, R407A/F and R134a – gases many operators currently consider ‘safe’.”

Operators who delay may face a combination of rising refrigerant prices, reliance on reclaimed gases of uncertain quality, tighter compliance and tracking requirements, and higher emergency repair costs when systems fail and replacement gases are scarce.

According to Antley, most vessels can reduce their exposure through planned retrofits while supply remains stable. “The operators who move first will have the widest choice of options, the most competitive pricing, and the ability to schedule work around their operations,” he says. “The ones who wait until 2027 or beyond will be paying whatever the market demands and working around limited engineer availability.”

For many legacy systems, switching to lower global warming potential alternatives can deliver significant emissions reductions without full system replacement. Systems using the highest-impact gases can typically achieve a 50 to 75 per cent reduction by retrofitting to alternatives such as RS-50, RS-51, R448A or R449A. Mid-range systems, including those running R134A, can cut emissions by more than half by switching to RS-20 or R513A. Equipment designed for newer refrigerants such as R32 can reduce impact by approximately two thirds.

“Even a straightforward retrofit cuts future regulatory risk dramatically,” Antley says. “The exact reduction depends on your specific set-up, but operators who move now will avoid both the availability squeeze and the cost spike.”

Not every vessel requires a full refrigeration overhaul. Drop-in replacement refrigerants can reduce regulatory exposure with minimal system changes and limited downtime. For vessels able to accommodate more extensive modifications, ultra-low global warming potential alternatives and natural refrigerants offer stronger long-term protection against future restrictions.

“The right choice depends on your vessel’s schedule, your system’s age and condition, and how long you plan to keep running the current set-up,” Antley says. “But whatever your situation, doing nothing is the highest-risk option.”