Aohong Chemical Japan is investing ¥1.8bn ($11.4m) in what is set to become one of Japan’s largest fluorocarbon reclamation facilities, according to Japanese news source the Gas Review.
The site aims to recover refrigerants that would otherwise be destroyed as the country seeks to balance hydrofluorocarbon (HFC) phase-down targets with continued market demand.
The first stage of the project saw a new warehouse building completed at Aohong’s Okayama Plant (Plant 2) in March, which has since begun operations.
The rest of the site is now under construction, with the rectification-based fluorocarbon reclamation facility slated to begin operating in 2028.
“Once operation begins, the plan is to consolidate all fluorocarbon reclamation operations, which are currently conducted at the Okayama Plant in Kume (Plant 1) [and] at the Okayama Plant in Toshima (Plant 2),” said Ryotaro Komatsu, President of Aohong Chemical Japan, in conversation with the Gas Review.
The investment fits with the objectives of the Kigali Amendment, the 2016 international agreement to phase down HFCs signed by nearly 200 countries.
As one of the signatories, Japan is reducing its HFC consumption, aiming to hit a consumption target of about 11 million tonnes of carbon dioxide (CO2) equivalent by 2026. It is pursuing broader national reduction goals of 60% by 2030 and 77% compared with 2013 levels under the amendment.
Demand for HFC refrigerants remains strong because existing equipment is still in service, increasing the importance of refrigerant reclamation.
Japan recovered 6,473 tonnes of fluorocarbons in FY2023, yet only 2,356 tonnes were reclaimed. This means 4,117 tonnes (around 60%) were destroyed instead, according to Ministry of the Environment data.
Aohong argues that much of this is due to mixed or low-purity refrigerants that conventional distillation cannot reclaim. Traditional systems remove contaminants but cannot separate mixed refrigerant streams, leaving them unsuitable for reuse and destined for destruction.
R32, a lower-global warming potential refrigerant widely used in air conditioning systems, is among the refrigerants that can be recovered and reclaimed at the end of a system’s life ©Shutterstock
“Our policy is to resolve this issue by introducing rectification-based reclamation equipment,” explained Komatsu. “We intend to convert low-purity gas … into raw material, thereby increasing the volume of reclaimed fluorocarbons.”
Rectification instead separates individual refrigerants according to their boiling points, allowing mixed gases to be recovered at high purity and returned to the supply chain.
The company believes the technology will increase the proportion of recovered refrigerants that can be reused rather than destroyed.
The new facility will include a 1,500 tonnes per year (tpy) rectification unit alongside two relocated distillation lines with capacities of 700 tpy and 200 tpy.
Together they will create a reclamation capacity of 2,400 tpy, making the site one of Japan’s largest fluorocarbon reclamation plants.
The expansion comes as Aohong continues to grow its fluorocarbon business, with sales rising from ¥3.7bn ($23.5m) in FY2024 to ¥5.1bn ($32.4m) in FY2025. The company forecasts revenue of ¥6.4bn ($40.6m) this year, driven largely by increased handling of hydrofluoroolefin (HFO) refrigerants, which are increasingly being adopted as lower-global warming potential alternatives to conventional HFCs.
Earlier this year, the company also formed a joint venture with China’s Shandong Aofan New Material to expand sales of HFO refrigerants in Japan.
“We will not limit our fluorocarbon business to recycling alone. Instead, we will pursue a comprehensive approach … with the immediate goal of surpassing ¥10bn ($63.5m) in sales by 2031,” said Komatsu.