FGas Regulation Revision: Industry Impact and Challenges in the Refrigeration Market

1. FGas Regulation Revision : Industry Impact Seamus Kerr BE, MEngSc, MIEI, MIRI seamus@rslireland.com www.instituteofrefrigerationireland.ie

2. Market feedback and challenges • Price of refrigerants • Supply of product • Alternative Refrigerants • HFC Phase Down • Training, Equipment and safety

3. Market feedback and challenges

4. Market feedback and challenges

5. Market feedback and challenges 115MTonnes CO2 equivalent

6. GWP AREA : Fgas Guide

7. Market feedback

8. Supply and demand • Quota • No refrigerant manufacturing or blending in Ireland • Very little Irish held quota • >90% of refrigerant into Ireland based on UK/other quota • Both Germany and Spanish associations have issued warnings about shortages.

9. Supply and demand example • British Refrigeration Association PURR report • Putting into Use Replacement Refrigerants • Estimate 11000 tonnes R404A installed in UK • 43M CO2 tonnes equivalent in R404A alone • R410A, R22, R134a........... • Germany, France, Poland, England + 24

10. Supply and Demand Example 115MTonnes CO2 equivalent UK R404A installed estimate

11. GWP and Phase down • R23 = 14800 • R508B = 13396 (R508A) • R404A = 3922 (R507, R422D,R422A) 2500 • R407A = 2107 (R407F = 1705) • R410A = 2088 • R442A = 1888 • R134A = 1430 • R449A = 1397 • R448A = 1273 750 • R452B = 675 • R32 = 675 150 • R1234yf = 4, AC5 = <100 • CO2 = 1 • NH3 = 0 • R600a, R1270 and R290 = 0

12. Low Temperature Applications -70 o • R23 = 14800 • R508B = 13396 (R508A) • Current available HFO alternatives : None • Quota holders not wasting quota on R508 • Future alternative : • Ethane R170 • Ethylene R1150 • Hydrocarbons, extremely flammable • New system required • Very few systems readily available • Atex Regulations • Engineering support limited • Walk in room, no alternative currently

13. R404A and R507 (R22) Alternatives 75% quota material (Restricted supply chain, shortages already) • R404A = 3922 (R507, R422D,R422A) • R407A = 2107 (R407F = 1705) • R410A = 2088 (not suitable for retrofit) • R442A = 1888 • R134A = 1430 (not suitable for retrofit) • R449A = 1397 • R448A = 1273 • R452B = 675 (not suitable for retrofit) • R32 = 675

14. R404A and R507 (R22) Alternatives • R404A = 3922 (R507, R422D,R422A) • R407A = 2107 (R407F = 1705) • R410A = 2088 (not suitable for retrofit) • R442A = 1888 • R134A = 1430 (not suitable for retrofit) • R449A = 1397 • R448A = 1273 (Patented product, supplies limited) • R452B = 675 (not suitable for retrofit) • R32 = 675 (not suitable for retrofit) • Supplies not guaranteed • Prices will rise • Alternative Lower GWP Refrigerant properties are different • TX valve changes/adjustments • Higher discharge temperatures

15. R410A Alternatives • R410A = 2088 • R452B = 675. A2L aimed at new equipment • R32 = 675 : A2L for new equipment • Supplies not guaranteed • Product most likely to become unavailable (SK) • Most likely first applications needing equipment change. • Prices will rise • Currently no lower GWP retrofit available

16. Alternative long term refrigerants • HFO • R1234yf (ze, zd etc.) • Ammonia NH3, R717 • CO2, R714 • HC (R290A, R600, R1270) • A2L Low GWP refrigerants • Others

17. Alternative long term refrigerants • HFO • R1234yf (ze, zd etc.) • Expensive production process • Unknown long term environmental impact • R134a replacement - HFO blends • Expensive production process • Unknown long term environmental impact • Not readily available on market yet

18. Alternative long term refrigerants • CO2, R714 • Most popular replacement refrigerant so far • 10 yrs experience in Ireland in small % of contractors • Increasing number of contractors “trying it” • Very very high pressures • Poor energy performance (reports of 8 to 14% higher energy usage) • Most solutions aimed at the supermarket sector • Smaller solutions coming • Complete equipment change • Big investment in training needed • Lack of training/experience is dangerous

19. Alternative long term refrigerants • NH3, R717, Ammonia • 80+ yrs experience in Ireland in small % of contractors • Increasing number of contractors “considering it” • Standard pressures • Good energy performance • Toxic • Most new solutions aimed packaged chiller market • Smaller solutions coming (equipment available) • Complete equipment change • Low level of training required

20. Alternative long term refrigerants • Propane, R290 • 40 yrs experience in Ireland in small % of contractors • Increasing number of contractors “trying it” • Standard pressures • Good energy performance • Very flammable • Most solutions aimed at very small applications • Bigger solutions coming (equipment available) • Complete equipment change

21. Alternative long term refrigerants • A2L (Low GWP refrigerants) • Very little experience in Ireland (first plant arriving this summer) • Increasing number of contractors “trying it” • Standard pressures • Good energy performance • Mildly flammable? • Most solutions aimed at split air conditioning (<750 GWP) • Complete equipment change

22. Excerpt from my presentation in April 2012 • Main Challenges • Refrigeration Industry ready? • Skills • Equipment • Training/Certification • Industry ready? • Investment • Safety • Timing • Main Challenges • Time scale • Technology • Supply

23. Future ? • Supply shortages • Massive prices increases • Skill shortages • Technology lag • Training lag • Phase down will be too severe and will have negative economic impact

24. Thank you. seamus@rslireland.com