How to Evaluate Refrigerants? >Global Warming Impact > Energy efficiency & Peak Load >Flammability

1. How to Evaluate Refrigerants?>Global Warming Impact 　>Energy efficiency & Peak Load 　>Flammability & Toxicity　>Affordability - “Quick Gain”

2. How to Evaluate Refrigerants? – Global Warming Impact - LCCP comparison (3.5 kW Room A/C) based on cooling and heating Total Emissions = (1)Indirect emissions (2)Direct emissions (3)Emissions during refrigerant production 3.5kW Room A/C in Europe – EuP Average Condition (EU Average = 0.43Kg/kWh) (Kg = Charge volume) R22 (1.14kg) (1) 12000 (2) 1800 (3) 390 HFO1234yf (1.32 kg) (*2) (1) 13000 (2) 4 (3) 23 Disregarding IEC, the charge volume is 0.58Kg, and Indirect impact could be reduced by 16% R32 (0.84kg) (*1) (1) 12000 (2) 480 (3) 12 R290 (0.37kg) (*3) (1) 14000 (2) 1 (3) 0.5 R744 (0.84Kg) (*4) (1) 15000 (2) 1 (3) 0 R410A (1.2kg) (1) 12000 (2) 2100 (3) 23 (Kg･CO2)　 0 7000 9000 11000 13000 15000 （Precondition for Calculation） - Recovery rate = 30%, Leakage rate= 5%/yr, Source of Emissions during refrigerant production is JRAIA 2004 Kobe Symposium GWP=IPCC 4th (the EU F gas regulation, the GWP of the IPCC1 apply where R410A is 1975) 　　 *1 Taking low pressure loss into consideration, narrower heat exchanger was used to reduce charge volume. *2 To improve efficiency, HX size was increased : Indoor HX x 1,1 + Path x 2, Outdoor HX x 1.2, and connecting pipe increased from 3/8=> 5/8 *3 To meet IEC requirements, charge volume was reduced: Indoor HX x 0.8, Outdoor HX x 0.5, narrower piping was used. *4 To Improve efficiency: Outdoor unit HX was increased x 1.1 November 13th, 2010 Daikin Industries, Ltd.

3. How to Evaluate Refrigerants? – Global Warming Impact - GWP Charge ratio % Modified GWP 75% reduction • The direct global warming effect of R32 is only 26% of R22, and 24% of R410 • Could be much lower by using micro channel heat exchanger GWP values are based on IPCC 4th report. (Note : for the EU F gas regulation, the GWP values of the IPCC1 apply where R410A is 1975) November 13th, 2010 Daikin Industries, Ltd.

4. How to Evaluate Refrigerants? – Energy-efficiencies - • SEER Comparison(cooling mode) • HPs （Reversible）- 3.5kW-Room AC in Europe • Peak power comparison • (R410A ratio) under cooling condition • Outside 35°C, room 27°CDB/19° CWB R22 (1.14kg) HFO1234yf (1.32 kg) *2 R32 (0.84kg) *1 Propane (0.37kg) *3 If disregard IEC, the charge volume is 0.58kg, and SEER could be same as R22 CO2 (0.84Kg) *4 R410A (1.2kg) 0.7 0.8 0.9 1.0 1.1 0.7 1.0 1.3 Power ratio Efficiency ratio Consideration: In terms of SEER, CO2 is the worst, and the rest of candidates are equivalent to R410A. Consideration: A big difference exists in the peak power under cooling condition. HFO and CO2 will cause peak power problems in large cities. (Precondition for Calculation)Note: HX= Heat Exchanger *1 Taking low pressure loss into consideration, used narrower heat exchanger to reduce charge volume. *2 To improve efficiency, changed sizes: Indoor HX x 1,1 + Path x 2, Outdoor HX x 1.2, and connecting pipe => 5/8 *3 To meet IEC requirements, charge volume was reduced: Indoor HX x 0.8, Outdoor HX x 0.5, and used narrower piping. *4 To Improve efficiency: Outdoor unit HX x 1.1 November 13th, 2010 Daikin Industries, Ltd.

5. How to Evaluate Refrigerants – Safety: Flammability - Consideration on the use of 2L refrigerants classified by ASHRAE 34 and ISO 817 ASHRAE 34: Class 1 = Non flammable, Class 2L Mildly flammable Class 2= Flammable, Class 3 = Highly Flammable 1. Flammability of Class 2L is similar to ammonia. Consideration is ongoing to clarify the safety requirements to use 2L refrigerants 2. Commercial refrigeration and MAC (wrong use) which employed R290 caused fire accidents in the field 3. ASHRAE 34 recently reclassified R32 & HFO 1234yf down to new Class 2L (Lower flammability, low burning velocity) <Fire accident examples> Beer cooler incident in Australia 10/19/95, CA: charging while engine was still hot 8/18/96, MS: low pressure hose from evaporator blew off 9/27/96, AR: torch used on truck AC unit after venting refrigerant Source: US-EPA in Bogota 2008 Propane explosion in a New Zealand supermarket. Source: EFCTC newsletter Fire accidentｓ in case of HC use for cooking & heaters : ave.68/yr, death: ave.1.3/yr (01-06) ,:Source METI Japan November 13th, 2010 Daikin Industries, Ltd.

6. While risk of R290 (propane) can be addressed with several measures (eg forced fan operation to lower concentration below LFL),repair and disposal risks remain considerably high. Source : Risk assessment work on HC refrigerant carried out by JRAIA Non Fluorocarbon Refrigerant WG in 1999-2000. Estimated Incidents/year in Japan with R290 room air conditioners, after Measures 60 • Reason : • Human errors during repair & disposal, which is beyond the control of manufacturers • During repair & disposal there is no power supply for the unit, so measures such as forced fan operation do not work. 50 Pessimistic 40 30 Optimistic 20 10 0 Transport Installation Use Repair Disposal November 13th, 2010 Daikin Industries, Ltd.

7. Propane (R290) R32 HFO1234yf CO2(R744) Refrigerant price Cheap Cheap Expensive Cheap Cost for performance Compressor, EX, etc. Modification required Same as R22 Near as R410A Same as R410A Larger comp. Larger pipe etc. Two-stage comp. High-pressure etc. Cost for safety Charge reduction Joint Electronic parts Leak detector Ventilation Important (ex.230g) Special joint Sealing etc. Necessary Necessary Necessary Special joint Unnecessary. Unnecessary Unnecessary Necessary Special joint Unnecessary Unnecessary Unnecessary Necessary Unnecessary Unnecessary Unnecessary Unnecessary Cost for handling Manufacture Supply chain Installation Service Disposal Special facility Qualification Qualified person Qualified person Qualification Modified facility Modification Modification Modification Modification Modified facility Modification Modification Modification Modification Modified facility Qualification Qualified person Qualified person How to Evaluate Refrigerants– Cost up Factors - Component which increases cost The Example of Room A/C Required in Japan Consideration: Propane requires additional cost when taking safety measures in application and handling. Consideration: CO2 requires significant cost for performance improvement. November 13th, 2010 Daikin Industries, Ltd.

8. How to Evaluate Refrigerants –Early Implementation - *1: The figures are by ÖkoRecherche • Early Implementation in Developing Nations is Most Important • Change over to lower environmental impact refrigerants ASAP. • Establish containment measures for further mitigating the impact. “Quick Gain” To significantly reduce future global warming impact Use Technology Available “NOW” November 13th, 2010 Daikin Industries, Ltd.

9. Refrigerant application map for ACs and HPs (Daikin’s assessment for the time being) Today’sFocus Chiller Water heater Room split CO2 R32 ? HFO CO2、NH3 R32 ? HFO Daikin does not produce Mobile Commercial split Refrigeration November 13th, 2010 Daikin Industries, Ltd.

10. Conclusion

11. 1. Evaluate not only GWP but also the total GHG emissions (LCCP) In case of R32, higher efficiency and less refrigerant charge will lead to lower greenhouse gas emissions. Additional leakage prevention measures will contribute to emission reduction further, as is the case of all refrigerants. 2. A2L Class refrigerants for all capacity ranges can be used with only minor modifications 3. Peak load should be considered when choosing candidates. Not only seasonal energy efficiency but also efficiency in extreme temperature conditions (peak load) should be taken into consideration. It is important for the power supply infrastructure. 4. Earn “Quick Gain” for lowering future global warming impact. To address climate change issues, quick actions are required. We are confident that R32 technology is one of the solutions that can quickly reduce greenhouse gas emissions from refrigerants, in both developed and developing countries. Conclusion November 13th, 2010 Daikin Industries, Ltd.

12. Thank you for your kind attention