TANFAC announced the signing of a US$81M framework agreement with one of the leading Japanese specialty chemical companies to supply refrigerant gas over the next five years, starting in the second half of 2025-26. 

To support this agreement, TANFAC announced the expansion of its Cuddalore facility in India to accommodate refrigerant gas manufacturing, emphasising the company's move into the fluorinated gas industry. The move will allow TANFAC to have a stake in the fluorinated gas market that’s being led by leading manufacturers such as Honeywell International, Arkema Group, Koura, The Chemours Company, and Linde.

TANFAC specialises in producing hydrofluoric acid (HF), which is used to create fluorocarbons for direct applications like air conditioning and refrigeration. Project Blue estimates a 2.1% overall CAGR in refrigerant gas demand between 2023 and 2034, with increased supply expected to meet the demand over the next decade.

The HF market is expected to grow rapidly with various chemical applications that are key to energy transition technologies, covering everything from electronics to Li-ion batteries and industrial applications.

With a requirement for rapid supply growth, there is scope to restructure the flows of existing HF value chains as regional demand adjusts, opening up the opportunity for HF producers such as TANFAC to integrate operations downstream. With higher prices for acidspar, the feedstock for HF, on the cards according to Project Blue forecasts, companies will also look to connect their supply upstream to secure supply amid developments in China limiting supply and requiring growing import volumes.