Construcciones Yamaro: MHIAA launches large-capacity R32 VRF systems in Australia

Specification of heating, ventilation and air conditioning (HVAC) systems on commercial construction projects is now being guided by operational carbon, regulatory compliance and life cycle asset performance, an area where Mitsubishi Heavy Industries Air Conditioners Australia (MHIAA) is seeing stronger engagement from project teams. Long considered a downstream technical package, HVAC today is evaluated against emissions modelling, NABERS projections and long-term ownership strategy.

Roy Arindam, national commercial manager at MHIAA, says the energy profile of modern buildings is a primary driver of this change.

“Commercial buildings make up roughly 30 to 40 per cent of national energy consumption,” he says. “Within those buildings, HVAC alone can account for 40 to 50 per cent of total energy use. As such, any efficiency gains made through HVAC can materially reduce overall carbon emissions. That means the sector has a big influence on national emissions outcomes.”

Rising regulatory pressure is another element at play. Arindam says the initial push to reduce operational carbon emissions was led by government clean targets and international commitments, such as the Paris Agreement, before filtering down into the HVAC sector and into project-level specifications. That policy direction is now intersecting with higher environmental, social and governance (ESG) expectations, stronger NABERS targets and Green Star requirements written into design briefs.

Refrigerants enter the conversation

For many construction decision makers, refrigerant terminology has sat outside core project conversations. That is changing as low-emission building performance is prioritised.

VRF, or variable refrigerant flow, refers to a centralised air conditioning system that uses refrigerant as the primary cooling and heating medium, distributing it across multiple indoor units while modulating output to match real-time demand. This flexibility makes VRF systems suited to commercial environments such as offices, hospitals, clean rooms and large tenancy fit-outs where loads fluctuate throughout the day.

Roy Arindam, national commercial manager at MHIAA.

Within that system architecture, refrigerant selection carries implications for emissions and compliance. Traditional systems commonly used R410A, a high global warming potential (GWP) refrigerant, with greater environmental impact if released. By contrast, R32 is classified as a low-GWP refrigerant, aligning closely with emerging regulatory frameworks and carbon reduction strategies.

“Government policy is a major driver in this transition,” says Arindam, noting that the push towards a low-GWP economy has already informed regulatory timelines and industry direction.

The United States, the United Kingdom and much of Europe have already transitioned to R32-based systems, shaping Australian adoption.

“R32 can reduce CO2-equivalent emissions by about 70 per cent while improving thermodynamic performance. As a refrigerant, it also allows for a reduced refrigerant charge and more efficient system design,” says Arindam.

“Typically, with an R32 design, the physical size of the unit can be smaller, which is one of the key advantages it brings.”

Another term entering specification discussions is A2L, the safety classification applied to mildly flammable refrigerants such as R32. Arindam emphasises that this classification does not prevent deployment in commercial buildings but does require additional safety protocols including refrigerant leak detectors, safety alarms, shut-off valves and ventilation measures that align with ISO, international and Australian standards. These design considerations are now being integrated into early-stage engineering assessments.

Performance-led system selection

NABERS and Green Star benchmarks are exerting growing influence over system selection, particularly on premium commercial developments targeting long-term tenant retention and asset value. Arindam notes that Green Star aligns with design and construction sustainability targets, while NABERS evaluates ongoing operational performance once a building is occupied, meaning HVAC decisions need to support both design intent and life cycle efficiency.

Because of this dual lens, project teams are setting targets early and allowing those benchmarks to guide system specification. Cost remains a factor, but it is now weighed against long-term operating efficiency and compliance. Arindam describes this as a balancing act between delivery cost, product cost and the performance outcomes that developers and asset owners are targeting.

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Landlord expectations are also influencing decision-making. He points to post-COVID competition among CBD asset owners to position premium properties with strong performance ratings to attract anchor tenants.

“One of the key ways to do that has been to improve building performance and star ratings,” he says.

Life cycle planning further supports the adoption of low-GWP systems. Arindam says installing legacy refrigerant systems in new buildings does not align with long-term ownership strategies, particularly for assets expected to operate for 10 to 20 years or more.

“The expectation is that the refrigerant and system will remain compliant, relevant and aligned with regulatory frameworks and operational targets,” he says. “That is where the focus on alignment and future-proofing comes in, ensuring the system supports the long-term needs of tenants, occupants and asset owners.”

Filling the large-capacity gap

MHIAA has introduced the KXZ3 R32 VRF system alongside the established KX Micro R32 VRF system, creating a pathway for both smaller and larger applications transitioning away from R410A.

Arindam explains that while the KX Micro R32 has been deployed for five years in residential and smaller-scale projects, a gap remained in the higher-capacity condenser range for typical commercial environments.

“The KXZ3 series was introduced to support that transition in larger commercial applications. It is designed to suit environments such as office buildings, tenancy fit-outs, hospitals, data centres, clean rooms, medical facilities, airports, councils and other complex buildings,” he says.

“Our KXZ3 series provides high performance and excellent energy savings. This is achieved through an optimised heat exchanger, an advanced energy-efficient compressor and a sophisticated capacity control system.”

Physical design is another advantage for builders and developers.

“We are seeing a reduction in unit size of about 28 per cent, which lowers the amount of plant space required,” says Arindam. “This means less physical real estate is needed for large mechanical equipment, allowing building owners to allocate that space more efficiently within the asset.”

Deployment and market confidence

Market confidence in low-GWP systems is growing. KX Micro R32 systems have already been installed across more than 100 buildings in Australia and New Zealand, including projects delivered by developers such as Meriton and Mirvac, providing evidence of R32 readiness in commercial environments.

“KX Micro R32 has been deployed for the past five years across a range of projects, including apartments, schools, offices, hospitals and clean rooms,” says Arindam.

Through these installations, clients have observed efficiency and operational performance in real-world conditions, which has helped address early resistance often associated with new refrigerant technologies.

Arindam adds that most new deployments are now being delivered with R32 systems, reflecting growing acceptance as contractors and consultants gain familiarity with design tools, installation methods and safety protocols.

“Initial market resistance is typical with any new product, but ongoing deployments have demonstrated that the systems perform reliably in live environments,” he says. “These installations have effectively future-proofed assets and buildings well before broader market discussions around refrigerant transition became more prominent.”

Early Australian projects deploying KXZ3 are already underway across various applications, including a commercial office and community facility, with clients deliberately selecting newer refrigerant technologies to maintain compliance and relevance over the long term.

“We are seeing strong interest in the product, with enquiries coming from consultants, landlords and developers. At present, part of the process involves working with building owners and the development community to understand what adjustments may be required to accommodate R32 systems within new or upgraded assets,” says Arindam.

“Fortunately, the required changes are generally not extensive, and improvements in unit size and efficiency support the long-term value proposition. Interest is continuing to grow across both the private sector and government, with public sector bodies acting as an active driver of adoption.”

Collaboration and education

Accelerating adoption of R32 systems requires coordinated engagement across the project ecosystem. Arindam describes consultants and engineers as a bridge between manufacturers, developers and builders, translating technical direction into system specifications while also educating stakeholders on refrigerant transition and compliance requirements.

He adds contractors, in most cases, deliver in line with consultant and developer requirements, meaning awareness, product availability and cost considerations all influence uptake. MHIAA has responded by increasing product availability and providing design software tools that allow engineers, consultants and contractors to model systems and assess safety measures aligned with applicable standards.

“There is still a need for ongoing education and upskilling as adoption increases,” says Arindam. “We run multiple training and education sessions throughout the year for consultants, engineers and contractors, including in-office presentations focused on knowledge sharing and system understanding. We also support consultants and engineers through system design and selection, which helps inform decision-making on projects.”

Hands-on access to modelling tools, he adds, reduces mistakes and improves understanding of A2L refrigerant requirements during system design.

“For us, being an early mover in bringing R32 low-GWP refrigerant solutions to the Australian market makes education and communication especially important,” he says. “At present, some contractors are still assessing the risks associated with deploying newer refrigerant systems. However, with clear guidance mechanisms, structured installation methods and defined safety protocols, the market is becoming more confident in using these systems.”

Broader acceptance is expected as regulatory direction, international precedent and local project experience converge.

“We are seeing the change happening now, and over the next three years there is likely to be much more acceptance,” says Arindam, with new commercial building designs already specifying R32 systems, including large-capacity solutions for complex assets.

As sustainability targets, energy costs and regulatory frameworks evolve, HVAC selection will play a key role in operational carbon performance.

Large-capacity low-GWP VRF systems such as MHIAA’s KXZ3 provide a practical pathway for consultants, developers and builders seeking to reduce emissions while maintaining performance, safety, reliability and occupant comfort across the life cycle of modern commercial buildings.

The post MHIAA launches large-capacity R32 VRF systems in Australia appeared first on Inside Construction.

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Construcciones Yamaro, by Armando Iachini