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Announcing NASRC's 2022 Annual Report

Connecting the Pieces for Sustainable Supermarket Refrigeration

NASRC is proud to release our 2022 Annual Report, Connecting the Pieces, which summarizes our collective progress to advance natural refrigerants in supermarkets. With support from our members and partners, 2022 was marked by tremendous progress to increase:

  • Funding options for natural refrigerant technologies

  • Natural refrigerant technology options 

  • Service workforce readiness

  • Education & awareness to support the industry

We hope you take a moment to celebrate our shared accomplishments to connect the pieces for supermarket refrigeration solutions. None of this would be possible without your support. 

Want to support our work further? Consider making a tax-deductible donation to NASRC.

NASRC's Top 10 From 2022

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NASRC Top 10 Accomplishments

As 2022 comes to a close, we're celebrating a year of incredible support and engagement from our members, which allowed us to accelerate our mission more than ever before! 

Here's a snapshot of our top 10 collective accomplishments from 2022:
1. New Educational Resources

Developed a suite of new educational resources, including but not limited to:

 
2. State Incentive Programs

Supported the development and implementation of state incentive programs, including:

  • Securing $65M in funding in California (2022-2024)
  • Supporting MassDEP's Commercial Ref. Grants (Applications due Feb 3!)
  • Working with other states to share lessons learned and inform future incentive programs. 
 
3. Carbon Financing Pilot

Successfully implemented our Refrigerant Carbon Financing Pilot Program - which provided funding for 5 natural refrigerant projects - in partnership with Therm. Supported Therm's broader refrigerant carbon offset development program, which now has nearly 700 projects under development. Read more.
 


4. New York State Demonstration Project

Secured a $250K grant from the New York State (NYS) DEC to coordinate a full or partial remodel to a natural refrigerant system in an existing store serving a disadvantaged NYS community. The project will also include an M&V study, workforce training & development opportunities, and information sharing activities. Read more.
 


5. Sustainable Refrigeration Summit

Hosted our 2nd annual Sustainable Refrigeration Summit, which brought together over 1,000 stakeholders from the commercial refrigeration, policy, energy, and environmental sectors to solve the puzzle of sustainable refrigeration in supermarkets.

View our top 5 Summit takeaways and watch our Summit session recordings.
 


6. Policymaker Engagement

Facilitated industry engagement with state and federal policymakers to inform effective strategies to achieve HFC reduction goals. Strengthened relationships with policymakers, which was evidenced by the 70+ policymaker attendees at our Sustainable Refrigeration Summit.

View the latest HFC policies here.
 


7. Retailer Leak Reduction Initiative

Published a Leak Reduction Guide outlining the significant sources of refrigerant leaks in existing systems. The guide also proposes equipment specification measures for new refrigeration systems to minimize leaks and reduce overall greenhouse gas emissions, which were developed by NASRC retailer members. Read more
 


8. Performance Validation Studies

Facilitated M&V studies at 10+ sites on natural refrigerant technologies to better understand energy performance and other ongoing costs. Published a CO2 Case Study comparing the costs, energy performance, and total emissions of a new CO2 transcritical system to an existing HFC system.
 


9. Strengthened Member Network

Grew our membership network to over 150 organizations representing more than 38,000 food retail locations. Experienced unprecedented member support for NASRC initiatives and engagement in member activities, such as Progress Group meetings and monthly End-User Roundtable meetings. Learn more about membership.
 


10. Workforce Development Assessment

Completed a workforce development assessment to evaluate challenges and opportunities to grow the technician workforce. Conducted interviews and surveys with 100+ stakeholders in the refrigeration workforce and training sectors to characterize challenges and identify solutions. Assessment report and next steps coming in 2023!
 


Thank you to our members, who are behind all of these achievements!
We look forward to building on the momentum we've created together in 2023.
Support NASRC This Holiday Season

As a 501(c)(3) nonprofit organization, NASRC's work relies on the generous support of our members and donors. Consider making an individual donation to support our work to address the barriers to natural refrigerants in supermarkets. 100% of your gift will contribute to our mission, and 100% of it is tax-deductible. 

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Groundbreaking Refrigerant Carbon Credit™ Pilot Program Rewards Grocers for Climate-Friendly Refrigerant Choices

North American Sustainable Refrigeration Council Pilot Program announced the issuance and retirement of carbon credits on behalf of grocers

LAKE FOREST, ILLINOIS: Therm, North America’s leading refrigerant carbon offset developer, today announced the successful sale and retirement of its issuance of Refrigerant Carbon Credits™ from the North American Sustainable Refrigeration Council Pilot Program. Carbon financing allows grocery retailers and other foodservice providers to switch to climate-friendly refrigerants at lower capital costs by selling the credits created by the projects through the voluntary carbon market. These projects’ Refrigerant Carbon Credits sold at a significant premium to the current rate of similar credits. Projects included refrigeration rack replacements to CO2 as well as micro-distributed and stand-alone cases.

The credits were issued by the American Carbon Registry and purchased and retired by longtime voluntary carbon market experts Climate Impact Partners on behalf of an established market participant.

“Climate-friendly refrigerants are the number one way that we can prevent further climate damage,” said Fritz Troller, CEO and co-founder of Therm. “The increasing price of carbon credits, and the undisputed permanence of RCCs, put them at a market premium, and help our retail grocer customers and food distributors by providing meaningful financial incentives.”

The credits were developed for five mid-sized grocery locations in California for customers Grocery Outlet and Raley’s, two members of the North American Sustainable Refrigeration Council. They chose to install climate-friendly refrigeration systems and forgo the use of traditional synthetic refrigerants—short-lived climate pollutants that are thousands of times worse for the environment than carbon dioxide. The impact of these traditional refrigerants is so large that, in 2017, refrigerant management was identified by Project Drawdown as the number one solution to combat climate change.

“We have many clients throughout the world who are looking for innovative new approaches to reducing emissions reaching ambitious climate goals,” said Saskia Feast, Managing Director of Global Client Solutions at Climate Impact Partners. “We are delighted to have partnered with Therm, NASRC, Grocery Outlet, and Raley’s in order to demonstrate how this type of credit can make a real impact right now.”

Cooling and refrigeration system upgrades are typically associated with high capital costs, limiting viable options to reduce climate-polluting refrigerants. Refrigerant Carbon Credits function as a type of rebate for stores, enabling them to lower the capital required to make the change.

“The success of our Pilot Program is a vote of confidence from the carbon market,” said Danielle Wright, Executive Director of the North American Sustainable Refrigeration Council. “We are seeing more and more grocers of this size who are interested in switching to climate-friendly refrigerants but can’t find the capital. This creative structure opens the door for even the smallest stores to finance their refrigerant upgrades.”

Therm works with grocers and foodservice providers of all sizes to implement climate-friendly cooling and refrigeration upgrades through Refrigerant Carbon Projects. Learn more at therm.cool. Watch their presentation on carbon financing at NASRC’s 2022 Sustainable Refrigeration Summit here.


About Therm

Therm is North America’s leading Refrigerant Carbon Credit™ developer, helping the grocery industry adopt climate-friendly systems at a lower capital cost. Therm brings together a team with rich industry backgrounds in HVAC/R, energy efficiency, carbon credits, facilities management, and cooling technology. For more information, visit therm.cool.

About North American Sustainable Refrigeration Council

The North American Sustainable Refrigeration Council (NASRC) is a 501(c)(3) environmental nonprofit working to advance climate-friendly natural refrigerants and reduce greenhouse gas emissions caused by traditional hydrofluorocarbon (HFC) refrigerants. We collaborate with stakeholders from across the industry, including over 38,000 food retail locations, to eliminate the barriers to natural refrigerants in supermarkets. For more information, visit nasrc.org.

Can Carbon Financing Scale Natural Refrigerant Adoption?

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What Is Carbon Financing?

Carbon financing is a financial mechanism that leverages the revenue from the sale of carbon-offset credits to reduce the initial capital costs of projects that result in greenhouse gas emissions reductions, such as natural refrigerant installations. Carbon-offset credits are determined based on emissions reductions that have been quantified and verified by an approved protocol.

Why Is This Important for Supermarket Retailers?

Amidst increasing regulatory pressures to transition away from traditional hydrofluorocarbon (HFC) refrigerants, a growing number of US grocers are looking to climate-friendly natural refrigerants as a future-proof option. But upfront cost premiums associated with natural refrigerant technologies remain the greatest barrier preventing the transition. Incentives and other funding support can offset upfront costs and make natural refrigerants a more feasible business choice, but there are currently no funding sources to support the transition on a national level.

How Can It Apply to Natural Refrigerants?

Refrigerant carbon-offset credits are based on the emissions avoided by installing a natural refrigerant-based system instead of or in replacement of a high-global warming potential (GWP) HFC system. Credits are quantified using the American Carbon Registry’s Methodology for Advanced Refrigeration Systems. The methodology is currently being updated to reflect requirements under the new American Innovation & Manufacturing (AIM) Act, but projects completed in 2020 are still eligible for credits in the meantime.

How Much Funding Are We Talking About?

Carbon-offset-credits are measured in terms of tons of carbon dioxide-equivalent (CO2e). The price per ton will vary depending on whether the credits are sold on the voluntary or compliance market and how much the buyer is willing to pay. Carbon credit prices range greatly but are typically valued between $5 and $25 per ton. We estimate that a typical supermarket system project using natural refrigerants could qualify for $5,000 to $25,000 in carbon financing revenue.

But the real opportunity is the potential future value of the credits. Earlier this year, a senior official with the Bank of England predicted that carbon prices could increase to $100 per ton by 2030 due to more stringent pollution allowances that will result from countries acting on their Paris Agreement commitments. Under those conditions, a typical supermarket could qualify for over $100,000 in carbon financing revenue, which could tip the scales to eliminate natural refrigerant cost barriers and allow for their widespread adoption.

NASRC Carbon Financing Pilot

To stimulate a scalable market of refrigerant carbon-offset credits, NASRC has launched a pilot to establish both a supply and demand for refrigerant carbon-offset credits and demonstrate the potential. To that end, we are applying the methodology to several natural refrigerant systems installed in grocery stores in 2020. We expect to complete the pilot by early next year. The long-term goal is to leverage carbon financing to support the volumes of adoption needed to trigger economies of scale and enable the widespread adoption of natural refrigerants.

Contact NASRC to learn more.

NASRC's Incentive Program Drives $880,000 for Climate-Friendly Grocery Stores

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Mill Valley, California - The North American Sustainable Refrigeration Council (NASRC), a 501(c)(3) environmental nonprofit working in partnership with the grocery industry to advance climate-friendly natural refrigerants, recently announced that they have secured a total of $880,000 in funding support for natural refrigerant grocery projects through their Aggregated Incentives Program (AIP) Pilot.

“We launched the AIP program to support grocers facing increasing regulatory pressure to transition away from HFC refrigerants,” said Danielle Wright, NASRC Executive Director. “Incentives have the power to offset cost premiums and make natural refrigerants a feasible business choice for grocers.”

Launched in 2020, NASRC’s AIP Pilot was a first-of-its-kind, no cost platform through which NASRC coordinated incentive funding for natural refrigerant projects in California grocery stores. The pilot was designed to bolster the California Air Resources Board (CARB) F-gas Reduction Incentive Program (FRIP), which was established to support the transition to climate-friendly refrigerants resulting from CARB’s HFC reduction measures that take effect on Jan 1, 2022.

“NASRC’s assistance was critical in obtaining the FRIP funding,” said Jay Schick, Refrigeration and HVAC Buyer at Costco, a FRIP awardee and AIP Pilot participant. “We hope to see the program grow in the future as this is key to accelerating our transition from HFC refrigerants.”

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FRIP is part of California Climate Investments, a statewide program that puts billions of Cap-and-Trade dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — particularly in disadvantaged communities. FRIP was established to address the fact that upfront costs remain a significant hurdle for grocers to transition to low global warming potential (GWP) refrigerants.

Recently, CARB awarded FRIP grants to 15 grocery projects across California, 12 of which were funded through the NASRC AIP Pilot and represented $880,000 of the total $1 million awarded. The projects funded through the AIP Pilot will use climate-friendly natural refrigerants with near-zero GWP, such as CO2 and propane.

The grants will support innovative projects, including partial transitions to natural refrigerants in four existing Whole Foods Market facilities. Because natural refrigerants are not a “drop-in” solution, they require a full system replacement rather than a simple gas retrofit, representing a much greater challenge for grocers. “There’s no straightforward solution for replacing HFC equipment,” said Mike Ellinger, Principal Program Manager of Engineering, Compliance & Sustainability at Whole Foods Market. “The FRIP funding will allow us to test several innovative approaches and the results will inform our strategy for existing stores in the future.”

ALDI, another national chain grocer, received awards for seven projects through the AIP Pilot, four of which are located in disadvantaged communities that are disproportionately impacted by the changing climate. "The funding ALDI receives through FRIP supports our continued dedication to natural refrigerant technology,” said Dan Gavin, ALDI Vice President of National Real Estate. “At ALDI, we continue to explore new ways to lower our carbon footprint, and we are particularly excited about the energy data we will receive from this outstanding program."

In addition to the grants, FRIP awardees will participate in data sharing and service workforce development activities, further addressing barriers that are slowing the adoption of natural refrigerants in the US. NASRC is supporting the implementation of these activities as part of their AIP Pilot.

Due to the COVID pandemic, the FRIP funding was not renewed in the California 2021 fiscal year budget. NASRC is advocating for the program to receive additional funding in the future to support full or partial system replacements in existing stores. There will be opportunities to submit comments in support of renewed FIRP funding later this year, but in the meantime NASRC is thinking bigger.

“Our goal with the pilot was always to expand beyond California,” said Wright. “Given the upcoming federal HFC phasedown, there is a need for national funding support to aid the transition. That’s where we’re looking next.”    


About North American Sustainable Refrigeration Council
The North American Sustainable Refrigeration Council (NASRC) is a 501(c)(3) environmental nonprofit working in partnership with the grocery refrigeration industry to advance climate-friendly natural refrigerants and reduce greenhouse gas (GHG) emissions caused by traditional refrigerants. The organization works with stakeholders from across the grocery refrigeration industry, including over 38,000 food retail locations, to eliminate the barriers preventing the adoption of natural refrigerants. For more information, visit www.nasrc.org.