Phononic, Magnotherm & RMI Target Low-Emission Cooling Tech

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Earth’s average surface temperature in 2024 was the warmest on record since recordkeeping began in 1880
Energy innovators Phononic, Magnotherm and RMI back solid-state cooling to cut emissions as the global air conditioning market is set to grow significantly

Cooling the world is quickly becoming one of the energy sector’s most urgent challenges.

While the climate warms at a pace unmatched in 10,000 years, the need for temperature control systems is climbing sharply.

The global cooling market, currently worth around US$235bn, is set to more than double by 2030, according to Morgan Stanley.

Yet traditional air conditioning technologies are energy-intensive and often dependent on refrigerants with a heavy environmental cost.

To meet this demand sustainably, energy players are exploring next-generation solid-state technologies.

Phononic and Magnotherm, alongside research bodies such as RMI, are developing thermoelectric and magnetocaloric cooling systems.

These approaches promise to eliminate harmful refrigerants and reduce energy consumption across commercial, residential and industrial uses.

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What is the Global Cooling Market?
  • The global cooling market is a significant and rapidly growing sector, driven by increasing urbanisation, economic development and rising global temperatures.
  • This market is projected to reach substantial revenue by 2032, with the district cooling market and data centre cooling market being key drivers of growth.
  • The UN Environment Programme (UNEP) and the Cool Coalition are promoting the use of sustainable cooling solutions, including passive cooling and energy-efficient HVAC systems.
  • Global urbanisation, economic development and changing climatic conditions are all fuelling the need for cooling solutions, according to HSBC.

Cooling demand pressures energy and climate goals

The energy footprint of air conditioning is vast and rising.

Warming temperatures, rapid urbanisation and growing economies are driving demand globally, from high-rise buildings to data centres.

As the United Nations Environment Programme and the Cool Coalition note, this growing need must be met with cleaner, more efficient systems.

The climate cost of conventional cooling systems is already stark.

Air conditioning contributes a sizeable share to global electricity demand and greenhouse gas emissions.

Much of the sector still relies on hydrofluorocarbons (HFCs) — gases with high global warming potential that often leak from ageing or poorly maintained systems.

“Not only do they eliminate those super-polluting refrigerants, but they can also offer improved efficiency to the systems,” says Lindsay Rasmussen, Manager and Building Sector Lead at RMI.

Lindsay Rasmussen, Manager and Building Sector Lead at RMI

With Earth’s surface now about 1.47 °C warmer than the preindustrial average, and the 10 hottest years on record occurring within the past decade, finding low-impact alternatives is no longer optional — it’s essential.

Alternatives like propane, ammonia and carbon dioxide are in use but have limitations: flammability, toxicity and high-pressure requirements respectively.

Industry experts are increasingly clear that merely replacing the gas won’t fix the issue. What’s needed is a new system altogether.

Offering a low-impact alternative

Solid-state cooling systems differ from conventional refrigeration by using no liquid refrigerants.

Instead, they employ physical forces — magnetic fields, electrical currents or mechanical stress — to create temperature changes.

Magnetocaloric cooling, one of the most developed technologies, takes advantage of the magnetocaloric effect.

This occurs when certain materials heat up under a magnetic field and cool down when that field is removed.

Timur Sirman, CEO and Co-Founder of Magnotherm

“With our technology, it's inherently safe because it's not toxic, it's a metal and we operate at very low pressures,” explains Timur Sirman, CEO and Co-Founder of Magnotherm.

Operating without moving parts, solid-state systems are also quieter and require less maintenance.

“That's because there's zero moving parts, the heat is occurring because of the reaction in the material level,” says Lindsay Rasmussen.

Another emerging approach is elastocaloric cooling, where specific materials change temperature under mechanical stress.

Projects like Europe’s SMACool are developing systems using stress-cycling alloys, showing promise as a refrigerant-free cooling solution.

A Hong Kong research team has already demonstrated an elastocaloric system exceeding 1,000W of cooling power.

Innovations like using graphene nanofluids for better heat transfer are helping boost these systems' performance.

Thermoelectric cooling, meanwhile, uses semiconductors to move heat using electricity.

These small, flat devices are easy to integrate and ideal for targeted cooling.

Tony Atti, Co-Founder and CEO of Phononic

“Our chips are really thin, really small, but they get really cold. They consume a small amount of electricity in generating that coldness, but they pack one hell of a punch,” says Tony Atti, Co-Founder and CEO of Phononic.

"Unlike traditional compressors that must run continuously, thermoelectric systems provide cooling on demand, reducing overall energy use.

“We like to present the coolness on demand where you need it.”

Scaling new cooling solutions across the energy sector

Though these systems are not yet as widespread or powerful as conventional alternatives, rapid development is underway.

The challenge lies in scaling production and reducing costs so these technologies can be deployed where they’re needed most — particularly in emerging economies facing extreme heat.

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What are Hydrofluorocarbons?

“Can these technologies scale up to where they could be affordable for those who need it the most and where the greatest demand for cooling is coming from?” Rasmussen asks.

Solid-state cooling technologies offer the energy industry a way forward — cutting emissions while meeting growing demand.

Whether through thermoelectric modules in electronic devices or large-scale magnetocaloric systems in buildings, these innovations may form the backbone of a low-carbon cooling future.

The transition to sustainable cooling is critical not just for environmental protection, but for maintaining public health, economic stability and energy security in a warming world.

The task now is to accelerate adoption before current systems push the climate further off course.


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