Ammonia is toxic and, under certain limited conditions, flammable and even explosive. However, with its intense, pungent odor, it is a self-alarming refrigerant. Ammonia has emerged as a refrigerant for water chillers in Europe. These units are entirely self-contained, including a gastight cabinet that houses the entire unit and a water tank to dissolve any ammonia in case of a leak. These measures, to be sure, increase costs considerably.
Hydrocarbons are excellent refrigerants, but they are also flammable and explosive.
In North America, any flammability risk is unacceptable, but some countries in Europe and elsewhere have less-stringent liability laws. Since the mid-1990s, virtually all refrigerator production in Germany has used hydrocarbons as the working fluid. Some heat pump manufacturers whose systems are installed entirely outdoors have followed suit, and some commercial installations have recently become publicly known. Nevertheless, the danger of fire remains an overriding concern. To address this challenge with safety features, the cost of a system would have to be increased by about one-third.