Creating the right business climate for innovation – A CO2 success story

1. Creating the right business climate for innovation – A CO2 success story Bruxelles OCT 2009 Torben M Hansen

2. The history of refrigerants in Denmark – back to the future • Up to 1930: Ammonia, carbon dioxide, methylchloride, sulfur dioxide … • 1920-1980: Ammonia and ozone depleting refrigerant CFC’s R11,R12 etc. • 1980-1990: Ammonia and ozone depleting refrigerant: HCFC’s R22 and others • 1990-2006: Ammonia and heavy green house gasses: HFC’s R404a, R134a, R407C and others • 1996: The Ministers’ Vision: No use of synthetic refrigerants by 2006!!! • 2000-2010: Ammonia, carbon dioxide, hydro carbons and still a few HFC’s

3. The situation in refrigeration in 1996 • General opinion of the industry • HFC is green – the Danish model is pure madness • Components: compressors, valves, heat exchangers, controls, line component, oil management etc… • Few components were availible and only as prototypes • Know how • Major uncertainty: Many indirect solutions were presented • Mainly lab systems were in operation • Market strenght • Danish market is too small to create a pull • Myths • ”It will never work!” • Willingness • Strong governmental (financial) support for development and demonstration

4. Refrigerants and implications anno 1996 • Natural refrigerants: • Ammonia: Long experience, high skills, proven and efficient solutions • Flammable, poissonous, leaks cause irritation of respiratory • Strong position in industrial systems • Hydrocarbon: The perfect drop in alternative – unfortunately very flammable • Carbon dioxide: Critical point low at 31C, very high pressure,no recent experience with lubriucation, material selections. Only few components, lots of safety issues. • Air: Joule cycle processes: low energy efficiency • Water: theoretically very good cycle performance. Vacuum operation, very high swept volumes required. No suitable compressors on the market. • There was single no obvious and easy solution

5. Ingredients to facilitate a success with natural refrigerants • Governmental support • Strategic R&D programmes • Funding of R&D and • demonstrations • Taxation of GWP equivalence • Ban on undesired chemicals • Industrial capabilities • R&D willingness • Highcompetencelevel • Planning step by step • Identifyadvantages • Involving international players • Important single incidents/actions: • GWP equivalent tax on refrigerants • Ban on all HFC charges > 10 kg from jan. 2007 • Important single incidents/actions: • Highpressurecomponents • Market break through in commercial systems

6. Denmark 2009: How does it look • Natural refrigerants has been adapted widely • Ammonia, hydrocarbon and carbondioxide • Many companies building and installing systems with natural refrigerant • Pack builders: More than 20 • Installers: probably 80% being capable to handle natural refrigerants • Wide spreed use of HFC • Multiple parallel units with less than 10 kg

7. Systems for supermarkets – trends of development

8. Energy consumption for simple single stage Reference: DTU, Technical University of Denmark (IPU)

9. CO2-emissions

10. Why has CO2 become a success in Northern Europe • No chemical hazard • Low Carbon Footprint • Low energy consumption • Low GWP of refrigerant emission • Simple system design • Ease of use • Similarity to traditional refrigerant system • Low est total cost of installation compared to alternatives • Tax on HFCs

11. CO2 market share is growing • CO2 has proven reliable and efficient • Supermarket applications has been the main market driver • Other applications are increasingly gaining market • Light Industry • Air conditioning • Heat pumps

12. Some end users dedicated to carbon dioxide

13. Conclusion • Natural refrigerant solution exist • Natural refrigerants can effectively reduce the carbon footprint from refrigeration • Northern climates: No HFC are necessary • Warm climates represents a challenge • Coexististence of CO2 and HFC /HC may be an option • CO2 has proven a reliable and substainable solution in many application

14. About ADVANSOR www.advansor.dk • ADVANSOR is specialized in CO2-technologies within the fields of refrigeration and heat pumps • Founded 2006 • ADVANSOR has 9 employees and a turnover of € 3½ mill. • ADVANSOR develops, manufacturers and sell projects within • Combined Heating and Power • Process industry • Food industry • Supermarkets • Our products are: • Heat pumps 20-1500 kW • Chillers / AC-systems 80-400 kW • Supermarket refrigeration 6/15 – 50/250 kW • Light commercial 100-1000 kW • Costumer specified products Engineering, design, production of series of 5-10 units

15. ADVANSOR’s products compHEAT: High temperature heat pumps Advansor develops heat pump solutions dedicated to power plants and industrial applications. The heat pump produces hot water up to 90°C which enables direct pipe connection to the external district heating grid. compBINE: Combined heating and coolingCombined heating and cooling - produce hot water up to 100°C and get ice water for free or counter wise. Advansor’s product line is highly suitable in connection with pasteurisation, CIP systems and other application in food industry where coinciding demands for heating and cooling exist. Combined heating and cooling saves both capital investment and energy cost. compFORT: Chiller applications and AC systemsAdvansor offers highly compact air cooled chillers and AC systemsin the range from 100 to 400 kW. With natural refrigerant, no toxic risk and no flammability this is a safe and economical feasible choice. compSUPER: Refrigeration applicationsAdvansor offers refrigeration systems (compressor rack’s) for supermarkets and other commercial/ industrial applications. The units work with as the only refrigerant. Main focus are placed on reliability, ease of service and low energy consumption.