Commerce
Craft IndustryTo make this measure more effective and tailored to the specific context of your company, we recommend that you first perform an overall analysis of your energy situation.
The project involves replacing an existing conventional, centralised, or direct expansion installation with a refrigeration system using CO2 as a fluid which is transferred in a transcritical or subcritical cycle (cascade or refrigerant) to the units diffusing the cold (refrigerated units, cold room evaporators, etc.) for a positive or negative application, or both.
This system applies to existing commercial buildings, particularly food distribution premises. This includes spaces intended for the display or self-service of fresh products for the public, such as hypermarkets, supermarkets, and small food stores. Drive-through facilities and click and collect points allowing the public to pick up their purchases without actually entering the store (the “drive-through” concept) as well as refrigerated warehouses.
Setting up this new technology will allow the company to save electricity, while reducing its carbon footprint. However, implementing this measure can be complex and requires the temporary shutdown of production during the technical installation stage.
This technology will replace positive or negative refrigeration facilities using R404A as a refrigerant. These refrigeration installations are centralised or decentralised (direct expansion) and often, the positive and negative refrigeration circuits are separate. It is important to know that R404A is a widely used refrigerant that will no longer be available on the market from 2030.
In a subcritical CO2 refrigerant plant, the condensation process takes place in a two-phase refrigerant, the vapours of which are recondensed by a primary ‘synthesis’ fluid or ammonia, to produce refrigeration at a positive temperature.
In a subcritical CO2 cascade system, condensation takes place in cascade on a production unit using a primary “synthesis” fluid or ammonia for negative temperature refrigeration. In a transcritical CO2 system (booster), condensation takes place in direct expansion using CO2 as refrigerant in a transcritical cycle. In this latter configuration, the plant performance can be optimised by installing parallel compression and ejectors
The use of subcritical or transcritical CO2 offers several advantages.
First, the refrigeration cycle is optimised compared to a standard system, which limits the space requirement. This system also offers the possibility of recovering a significant quantity of heat during desuperheating. In addition, the use of a weak fluid contributes positively to lessening global warming.
Estimated annual electrical savings can reach up to 20% with CO2 booster technology and up to 36% using CO2 booster technology combined with parallel compression and ejectors.
Source: ADEME. (January 2020). Refrigeration plant using subcritical or transcritical CO2. File BAT-EQ-117. Association Technique Énergie Environnement (ATEE).
Please note: any application for government or non-government subsidies must comply with the “incentive effect”, subject to compliance with the subsidy conditions.
To ensure that the ‘incentive effect’ is respected, no binding commitment (signing a quotation; paying an advance) may be made BEFORE submitting the application file or receiving the agreement in principle from the State or the electricity and natural gas supplier following an application for subsidies.
Aid for environmental protection
The law of 8 December 2025 on the renewal of the aid scheme for environmental and climate protection provides for the granting of investment aid to SMEs and large companies established in Luxembourg, with a business licence, and carrying out projects that contribute to environmental or climate protection.
This aid supports investments aimed at improving energy efficiency outside buildings. It is intended for initiatives that either reduce energy consumption by at least 20% or achieve energy savings of at least 250 MWh per year.
The following maximum rates apply:
| Activity | Company size | ||
|---|---|---|---|
| Small | Medium | Large | |
| Energy efficiency outside buildings | 25 % | 20 % | 15 % |
When equipment is added to an existing installation and there is no counterfactual investment that is less environmentally friendly, the aid rate shown in the table above is doubled.
SMEs may receive aid upon request if they meet the conditions set out in Article 7 of this law, provided that the aid is less than €100,000 and more than €50,000.
Large enterprises, as well as SMEs, will also be able to participate in regular calls for projects, which will be announced below when they become available.
The General Directorate – State Aid and Company Financing will verify the eligibility of applications.
Call for projects for measures promoting energy efficiency outside buildings
A call for projects is open from 5 January 2026 to 30 June 2026 to support measures that promote energy efficiency outside buildings.
This call will be conducted on a ‘first come, first served’ basis, i.e. aid will be granted in the order in which applications are received, until the €15 million budget is exhausted. No specifications have been published; only the conditions specified in the law of 8 December 2025 on the renewal of the environmental and climate protection aid scheme will apply.
N.B. State subsidies cannot be combined for the same project
Since 2015, natural gas and electricity suppliers are required to make energy savings for consumers under the obligation scheme. Since then, energy suppliers have been offering support and advice, as well as subsidy programmes for consumers to implement energy efficiency measures.
The following suppliers offer this service for companies:
N.B. Supplier subsidies can be combined with any state subsidies for the same project.
The tax relief is calculated based on the investments and operating expenses incurred as part of an ecological and energy transition project.
The tax relief rate is set at 18% and is applied directly to the amount of tax due.
This deduction can be combined with standard state subsidies.
For the project to be eligible, it must meet at least one of the following objectives:
For certain objectives, minimum thresholds must be met.
To verify your eligibility and ensure that these thresholds are satisfied, it is recommended that the impact of the measure on one of the above conditions be certified by an expert or a design office.
Further details and conditions: Guichet.lu
For questions: Ministry of Economy – Bonus
I would like more information on:
I would like more information on:
