The potential for hydrocarbon refrigerants as HCFC-22 replacement in air conditioning

1. The potential for hydrocarbon refrigerants as HCFC-22 replacement in air conditioning PROKLIMA Atmosphere 2009 Bussels, 19-20 October 2009 Volkmar Hasse GTZ-Proklima

2. Overview of Presentation PROKLIMA Room Air Conditioner Situation Substitute Technologies GTZ-Proklima Demonstration Project Policy Development Market Potential

3. Statement PROKLIMA Hydrocarbon refrigerants are an excellent alternative to HCFCs. Hydrocarbons are used safely in all walks of life from hairspray and cooking gas to fuels for cars and airplanes. Hydrocarbon based technologies have to be designed to operate safely, and they are indeed safe."

4. Overview of Presentation PROKLIMA Room Air Conditioner Situation Substitute Technologies GTZ-Proklima Demonstration Project Policy Development Market Potential

5. Types of room air conditioning equipment

6. Room Air conditioners Worldwide PROKLIMA

7. Historical and forecast production of RAC equipment in China (for domestic consumption) Increase is nearly exponential !

8. HCFC demand (new equipment and servicing) in A5 countries, 2009 HCFC banks in A5 countries, 2009

9. Overview of Presentation PROKLIMA Room Air Conditioner Situation Substitute Technologies GTZ-Proklima Demonstration Project(s) Policy Development Market Potential

10. Substitute Technologies PROKLIMA R 410A: GWP 2100 R 407C: GWP 1800 R 290: GWP 3 - Technical development: energy efficiency - Safety standards: flammability - Comparison with R600a refrigerators: Safety discussions 12 years ago Lessons learned?

11. Success of Greenfreeze Technology-Diffusion in China PROKLIMA 1995: Company Quingdao Haier introduced Greenfreeze Technology, supported by GTZ 1997: Company Kelon changed its production to Greenfreeze 2008: 75% of Chinese production uses Greenfreeze Technology We did it once. Can we do it again?

12. Success of Greenfreeze Technology-Diffusion Worldwide PROKLIMA Now, even in USA, introduction of HCs in some domestics and trials in ice cream freezers and bottle coolers

13. Overview of Presentation PROKLIMA Room Air Conditioner Situation Substitute Technologies GTZ-Proklima Demonstration Project(s) Policy Development Market Potential

14. Production of R290 Room air conditioners to at Gree Electric Appliances Inc • Gree is worlds largest manufacturer of room air conditioners • Developed range of R290 splits • Efficiency higher than equivalent R22, R407C and R410A products • Details on the Gree AC Unit (refer to exhibition)

15. Comprehensive training for production engineers and service technicians needs to be implemented • Marketing strategy for new models • Prices? Every company introducing the technology will have to make serious research and development efforts to make the technology safe and cost-effective • After mass-production starts, the prices of R290 units should however be very competitive • GREE cannot do it alone. There must be other equipment manufacturers to follow suit. GTZ-Proklima Demonstration Project PROKLIMA

16. Emission Reduction Scenario PROKLIMA Potential for China (60% of world‘s A/C production) Diffusion rate based on experiences with R 600a Greenfreeze technology

17. Overview of Presentation PROKLIMA Room Air Conditioner Situation Substitute Technologies GTZ-Proklima Demonstration Project Policy Development Market Potential

18. Policy Development PROKLIMA Over 100 countries will place import quotas to meet 2013/2015 MP obligations Europe: reconsidering EN 378 International: reconsider IEC 60335-2-40? China: RAC industry safety standards USA: Clean Air Act / ASHRAE Safety considerations depend on: - appropriate industry standards- appropriate service technician education Montreal Protocol Example: CFC phase out

19. Estimated annual (reported) emissions from China RAC equipment (no R-22) • Additional emissions from each years production, eligible for reporting • With HFCs only, emissions increase by over 10 times by 2020 • With natural refrigerants, 2007 levels are maintained by 2020

20. Policy Development PROKLIMA Destruction and recycling of CFCs, HCFCs and HFCs Most developing countries have no facilities (too expensive, no infrastructure) Recovered stocks – ultimate fate is atmosphere Entire problem can be avoided with HCs (may be vented) This policy situation may translate into sooner and higher market demand for natural refrigerant based solutions

21. Overview of Presentation PROKLIMA Room Air Conditioner Situation Substitute Technologies GTZ-Proklima Demonstration Project Policy Development Market Potential

22. Room Air Conditioner Situation 2009 PROKLIMA approx. 1 billion HCFC-22 units worldwide about 100 million units added annually average HCFC-22 charge about 1.6 kg approx. 1’600’000 tonnes HCFC-22 contained in existing equipment HCFC-22 GWP: 1’810 2’896 MtonnesCO2eq. Servicing needs: approx. 800’000 tonnes/yr 1’448 MtonnesCO2eq.

23. Market Potential PROKLIMA Major development in tropical countries:- Energy efficiency, direct emission reductions Major countries: China, India, Gulf, ASEAN, Latin America LVCs: Island States, Africa Developing gap between market demand for air conditioners and availability of HCFC air conditioners due to freeze in 2013 and subsequent reduction steps Precondition: Availability of HC refrigerant gas

24. Thank you for your interest and support replacing HCFC 22 with an environmentally friendly substitute Thank You! PROKLIMA volkmar.hasse@proklima.org