Garrett Motion Drives Automotive Tech into HVAC Cooling Revolution

LAS VEGAS, NV – February 02, 2026 – Automotive technology leader Garrett Motion Inc. made a significant move beyond the engine bay today, unveiling a breakthrough oil-free centrifugal compressor technology for HVAC systems at the AHR Expo 2026. The announcement signals a major strategic pivot for the company, aiming to disrupt the commercial cooling market with a solution promising double-digit energy savings and a clear path toward meeting stringent new environmental regulations.

A New Standard for Efficiency and Sustainability

At the core of Garrett's announcement is a portfolio of oil-free centrifugal compressors designed to cover a vast range of cooling demands, from 7 to 500 tons. The technology represents a fundamental departure from many traditional systems, which rely on oil for lubrication—a method that often leads to performance degradation over time. By eliminating oil, Garrett's design promises to maintain its "day one" efficiency throughout its lifecycle, a significant advantage in an industry where long-term performance is paramount.

Trials conducted with leading HVAC system integrators have reportedly demonstrated energy savings of over 10% in real-world use compared to existing solutions. This level of efficiency is critical as building owners and operators face mounting pressure from rising energy costs. The performance gains are largely attributed to the oil-free design, which reduces mechanical friction and prevents oil from contaminating the refrigerant, a common issue that can degrade the heat transfer efficiency of a chiller by up to 15%.

Beyond pure efficiency, the new compressors are engineered to be fully compatible with the next generation of ultra-low Global Warming Potential (GWP) refrigerants, such as HFOs like R-1234ze(E) and low-GWP blends. This is a crucial feature as the HVAC industry races to comply with aggressive regulatory frameworks. In the United States, the AIM Act is mandating an 85% phase-down of HFCs by 2036, while the European Union's revised F-Gas Regulation targets a near-total phase-out by 2050. Garrett's technology provides HVAC manufacturers with a future-proof component that directly addresses these pressing environmental mandates.

From Turbochargers to Rooftop Chillers

Garrett Motion is leveraging seven decades of innovation in the demanding automotive sector to make its mark on commercial buildings. The new HVAC compressors are not a ground-up invention but rather a clever adaptation of technologies already proven in millions of vehicles worldwide. The company is drawing on its deep expertise in high-efficiency turbo machinery, high-speed electric motors, ultra-high-frequency inverters, and sophisticated model-based software—all core components of modern automotive turbocharging and electrification systems.

This cross-industry technology transfer is a cornerstone of the company's diversification strategy. Olivier Rabiller, CEO & President of Garrett Motion, framed the move as a landmark moment. “Garrett is leveraging technologies proven in demanding automotive applications to offer differentiated solutions for the industrial HVAC oil free centrifugal compressor," he stated in the announcement. "This represents an important step towards our ambition to generate $1 billion in revenues outside our Turbo automotive business by 2030.”

This ambition underscores a broader trend of companies seeking to de-risk from a singular reliance on the internal combustion engine market. By applying its core competencies to a new, high-growth vertical like HVAC, Garrett is not only creating a new revenue stream but also reshaping its identity from a pure automotive supplier to a diversified technology leader.

Navigating a Competitive Cooling Landscape

Garrett is not entering an empty field. The commercial HVAC market is dominated by established giants like Carrier, Daikin, and Johnson Controls, many of whom have already introduced their own highly efficient oil-free chillers using magnetic bearing technology. These systems, such as Johnson Controls' YORK YZ and Daikin's Magnitude series, have set high benchmarks for performance, claiming annual energy savings of up to 35-40% over older, conventional chillers.

However, Garrett's market entry is powerfully amplified by a strategic, exclusive partnership with Trane Technologies, a global climate innovator. Under the collaboration, Trane will be the exclusive provider of commercial HVAC systems featuring Garrett's new compressor technology. This alliance effectively provides Garrett with an express lane to market, leveraging Trane's vast distribution network, system integration expertise, and established customer relationships. Instead of competing directly with Trane, Garrett's technology will now power a new generation of its partner's rooftop units and chillers.

This partnership mitigates the immense challenge of building a brand and distribution channel from scratch, allowing Garrett to focus on its core competency: advanced component technology. The collaboration will see the two companies engage in joint engineering, design, and field testing, with jointly developed products expected to enter production in 2026.

The Economic and Environmental Case for Upgrades

For building owners, facility managers, and financial decision-makers, the ultimate appeal of Garrett's technology lies in its compelling economic case. The promise of over 10% energy savings translates directly into lower utility bills and reduced operational expenditures. Furthermore, the oil-free design significantly cuts down on maintenance requirements and costs associated with oil management and disposal, improving the total cost of ownership.

Crucially, the compact and lightweight nature of these compressors makes them ideal for retrofitting existing HVAC installations. This dramatically expands the addressable market beyond new construction, offering a pathway for the vast stock of older, less efficient commercial buildings to upgrade their systems. The company claims that the energy and maintenance savings can deliver a fast payback on these retrofit investments.

The technology is particularly well-suited for applications with high and continuous cooling loads, such as data centers, where energy for cooling is a major operational expense. As the demand for data processing and storage continues to explode, so does the need for more efficient cooling solutions. Other target applications include battery energy storage systems, which require precise thermal management, as well as standard comfort cooling for commercial and institutional buildings.

With samples currently available for customer testing and full production slated for late 2026, the industry will be watching closely. The partnership with Trane ensures this technology will not remain a niche product but will be integrated into one of the market's leading portfolios, potentially accelerating a new wave of efficiency and sustainability across the entire commercial building sector. The move is a clear indicator that the future of cooling may be driven by innovations born on the racetrack and perfected for the rooftop.