Department of Industrial Works

March 21, 2018

Bangkok, THAILAND

Thailand: HCFC Phase-out Management Plan Stage II

Viraj Vithoontien Montreal Protocol Coordinator The World Bank Group

• Preparation of HCFC Phase-out Stage II • Background of HCFC Phase-out Program; • Achievement of HCFC Phase-out Stage I; • Current HCFC Consumption; and • Priority Sector to be Addressed Under Stage II;

• Linkage of HCFC Phase-out and HFC Phase-Down • Phase-Down Schedule; • Current HFC Consumption; • Policy and Regulations in Developed Countries; • Potential Economic Impact; • Commercially Available Alternatives; and • HFC Enabling Activities.

Outline

• HCFC Phase-out Program • Stage I HCFC Phase-out Project for Thailand approved in December

2012: • Objectives – To assist Thailand to meet its freeze and consumption reduction

by 10% from the baseline level by 2013 and 2015, respectively;

• Scope – To eliminate the use of HCFC-22 in the manufacturing of residential air-conditioners with cooling capacity up to 50,000 BTU/hr and the use of HCFC-141b in the manufacturing of polyurethane foam (except spray foam);

• Phase-out Amount: 219.54 ODP tons (1,234 MT of HCFC-22 and 1,380 MT of HCFC-141b from the 2012 level).

Preparation of HCFC Phase-out Stage II

HCFC-22 Consumption (MT)

11,446

16,821

12,318 11,984

10,365

7,921

5,923

2011 2012 2013 2014 2015 2016 2017

HCFC-141b Consumption (MT)

1,620

2,029 2,028 1,830 1,818

1,353

715

2011 2012 2013 2014 2015 2016 2017

HCFC Consumption (ODP tons)

811.3

4 1

,153.0

9

904.0

8

864.3

6

773.1

8

588.0

0

406.6

9

92

7.6

92

7.6

78

8.4

6

78

8.4

6

78

8.4

6

60

2.9

30

1.4

7

2011 2012 2013 2014 2015 2016 2017 2020 2025

HCFC MP Limit

2017 HCFC Consumption (MT)

- 1,000 2,000 3,000 4,000 5,000 6,000 7,000

HCFC-22

HCFC-141b

HCFC-142b

HCFC-123

HCFC-124

HCFC-225ca/cb

• HCFC-22 • Commercial and Industrial Refrigeration Manufacturing; • Servicing of Air-Conditioning and Refrigeration;

• HCFC-141b • Spray Foam; • Solvent Cleaning;

• HCFC-123 • Portable Fire Protection Equipment; • Installation and Servicing of Commercial Air-Conditioning Equipment;

• HCFC-225ca/cb • Electronic Cleaning; • Manufacturing of Medical Device; • Refrigeration/Air-Conditioning Part Cleaning.

Remaining HCFC Consumption

• HCFC-22 • Servicing of Air-Conditioning and Refrigeration;

• HCFC-141b • Spray Foam;

Priority Sectors for Stage II

Decision XXVIII/2

Energy Efficiency

• To request the Executive Committee to develop cost

guidance associated with maintaining and/or enhancing the

energy efficiency of low-GWP or zero-GWP replacement

technologies and equipment, when phasing down

hydrofluorocarbons, while taking note of the role of other

institutions addressing energy efficiency, when appropriate.

In 2018

• Ozone Secretariat to hold EE workshop in the margin of the OEWG meeting;

• TEAP to assess what it would take to maintain or enhance EE during HFC phase-down:

• Technology and funding needed;

• Incremental capital and operating costs;

• Capacity-building and service sector requirements;

• Relevant funding and activities of other institutions applicable to refrigeration, air-conditioning and heat pump sectors.

Linkage of EE and HFC Phase-Down

In 2018

• The Executive Committee of the Multilateral Fund is tasked to develop cost guidelines for maintaining/enhancing energy efficiency when phasing down HFC:

• Applicable to refrigeration and air-conditioning sectors;

• Tasks would need to be completed before the next meeting of the Parties.

Linkage of EE and HFC Phase-Down

Current Consumption of HFC Bulk

0

5000

10000

15000

20000

GWP 2012 2013 2014 2015 2016

HFC-134a HFC-23 HFC-32

HFC-125 HFC-152a HFC-143a

HFC-245fa HFC-43-10mee HFC-227ea

Current Consumption of HFC Blends (R-404A, R-407C, R-410A, R-407F, R-507A)

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2012 2013 2014 2015 2016

R-404A R-407C

R-410A

HFC Consumption in mtCO2 equiv.

-

20.00

40.00

60.00

80.00

100.00

120.00

140.00

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

mtCO2 equiv.

Components of HFC Bulk/Blends

HFC GWP

HFC-134a 1,430

HFC-23 14,800

HFC-32 675

HFC-125 3,500

HFC-152a 124

HFC-227ea 3,220

HFC-143a 4,470

HFC-245fa 1,030

HFC-43-10mee 1,640

HFC Blends GWP Composition

R-404A 3,922 125/143a/134a 44/52/4

R-407C 1,774 32/125/134a 23/25/52

R-407F 1,825 32/125/134a 30/30/40

R-410A 2,088 32/125 50/50

R-507A 3,985 125/143a 50/50

Main applications of HFCs and HFC Blends:

• Air-Conditioning;

• Refrigeration;

• Foam;

• Solvents;

• Fire Protection.

Current HFC Applications

EU: F-Gas Regulation • EU first legislated to control emissions of HFCs in 2006,

adopting a regulation on emissions and a directive on mobile air-conditioning

• Regulation 842/2006 on certain fluorinated greenhouse gases aimed only at containment, through measures such as control of leaks, proper servicing of equipment and recovery of the gases at the end of the equipment’s life

• In May 2014 this was replaced by the much more ambitious Regulation 517/2014 on fluorinated GHGs (the F-Gas Regulation), which entered into force on 1 January 2015. ) This was the first regulation in force anywhere in the world applying a phase-down schedule for total consumption of HFCs

• It is aimed at achieving a reduction in sales of HFCs on the EU market by 79 per cent (GWP-weighted) from 2009–12 levels by 2030, with interim reduction steps starting in 2015 and applying roughly every three years

• Directive 2006/40, the Mobile Air-Conditioning (MAC) Directive first adopted in 2006, remains in force. This prohibits the use of F-gases with a GWP of more than 150 (including HFC-134a) in new types of cars and vans introduced from 2011 and in all new cars and vans produced from 2017

EU F-Gas Regulation HFC phase-

down schedule

Cap on volumes of HFCs placed

on the market by producers and

importers as % of baseline

2015 100

2016–17 93

2018–20 63

2021–23 45

2024–26 31

2027–29 24

2030 21

Application Containing or using HFCs of

GWP

Banned from (1 January of)

Domestic refrigerators and

freezers

>=150 2015

Refrigerators and freezers for

commercial use

>=2500 2020

>=150 2022

Stationary refrigeration

equipment

>=2500 2020

Centralised refrigeration

systems for commercial use

with capacity =40kW

>=150 2022

Movable room air-conditioning

appliances

>=150 2020

Single split air-conditioning

systems containing <3 kg of F-

gases

>=750 2025

Foams

>=150 Extruded polystyrene: 2020

Other foams: 2023

Technical aerosols >=150 2018

Important measures of F-gas regulation:

• Quota system: reduction of HFCs placed on the market down to 20% as compared to the average of 2009 – 2012 baseline

• Electronic registry for quota allocations – all suppliers of F-gases must be registered

• Reporting on production, imports, exports, feedstock uses and destruction of HFCs

• Quota obligation also applies to equipment containing HFCs

United States: Significant New Alternatives Policy (SNAP) • Under Section 612 of the Clean Air Act (CAA), EPA’s SNAP established to evaluate and regulate

ODS replacements; publishes dynamic lists of acceptable and unacceptable substances. • EPA lists these substitutes as acceptable, acceptable subject to use conditions, acceptable subject

to narrowed use limits, or unacceptable (prohibited) for specific uses • Recent action includes:

• October 2014 – expanded the list of acceptable substitutes for refrigerants, foam-blowing agents and fire suppressants

• February 2015 – changed the listing status of some HFCs in various end uses in the aerosols, refrigeration and air-conditioning and foam-blowing sectors from acceptable to unacceptable, and restricting the use of HFCs as aerosol propellants where there are no environmentally acceptable substitutes available

• July 2015 – removed a long list of high-GWP HFCs from the SNAP list of acceptable substances on schedules comparable or slightly later than the EU’s F-Gas Regulation (first time SNAP used for a non-ODS)

• September 2016 – second round of revisions to SNAP list of acceptable substances and acceptable alternatives (for high-GWP HFCs) . New leak-prevention requirements for handling and using HFC refrigerants

• August 2017 – US Court of Appeals rejected EPA’s authority to include HFCs as part of SNAP program • Feb 2018 - A bipartisan effort is being explored in Congress to enable the contents of the EPA rule to go into

effect. California is also exploring legislation for restricting HFC use.

• The US also provides manufacturers of cars and light trucks the opportunity to earn credits toward their compliance with CO2 emission standards and corporate average fuel economy standards by employing low-GWP substitutes in mobile air-conditioning systems

Japan

• Japan originally legislated to control leakage of HFCs and to improve the rate of recovery.

• In 2013, the government decided to adopt a more ambitious approach, and the Act on the Rational Use and Proper Management of Fluorocarbons entered into force on 1 April 2015.

• The new legislation requires manufacturers and importers to replace high-GWP products with low-GWP or non-fluorocarbon alternatives. Target GWP values and years have been set for each application – (e.g., substances used for RAC must not exceed a GWP of 750 by 2018; for commercial AC a target of 750 by 2020; and for mobile AC, a target of 150 by 2023.)

• Manufacturers and importers will also be required to draw up plans to conduct an HFC phase-down; guidelines are available from the government setting five-year targets against which their performance will be assess

• Mobile Air-Conditioning; • HFC-134a;

• Residential Air-Conditioning; • HFC-32;

• R-407C

• R-410A (HFC-32 and HFC-125);

• Commercial and Industrial Air-Conditioning: • HFC-134a;

• R-410A (HFC-32 and HFC-125).

Air-Conditioning

• Domestic Refrigeration: • HFC-134a;

• Commercial/Industrial Refrigeration – Cold Food Chain: • Food Retail;

• Food Service;

• Food and Drink Manufacture and Cold Stores; and

• Food Transport.

Refrigeration

The 6 Food Chain Refrigeration Market Sectors

1. Agriculture 2. Processing 3. Storage

4. Retail 5. Food Service

6. Refrigerated Transport

4 Generations of Fluorocarbon Refrigerants (dates apply in non-A5 countries)

30

1st Generation: 1940 to 1990

CFCs were dominant

CFCs developed in the 1930s Well suited to RAC Non-toxic, non-flammable, very high GWP

2nd Generation: 1990 to 2005

HCFC use grew

Much lower ODP than CFCs Interim use in some CFC applications Non-toxic, non-flammable, high GWP

3rd Generation: 1995 to 2020

HFCs become dominant

Zero ODP: good solution to ozone issue Non-toxic, non-flammable High / very high GWP

4th Generation: 2015 onwards

HFOs introduced

Zero ODP and ultra-low GWP Used as pure fluids or in blends with HFCs Most have “lower flammability”

Timeline for non-fluorocarbon refrigerants

31

1st Generation: 1940 to 1990

CFCs were dominant

2nd Generation: 1990 to 2005

HCFC use grew

3rd Generation: 1995 to 2020

HFCs become dominant

4th Generation: 2015 onwards

HFOs introduced

Ammonia

Hydrocarbons

CO2

Currently used / future refrigerants in new

equipment

• the 6 food chain market sectors are not homogeneous groups, in terms of equipment types / refrigerant selection • the refrigerant choice depends on the market sub-sector

• this has a major impact on options for low GWP alternatives to HFCs

• currently used refrigerants in new equipment: • depend on ODS phase-out status

• e.g. in whole of EU no new HCFC systems since 2000 • hence HFCs are dominant in whole food chain

• in A5 countries, widespread use of HCFCs, especially HCFC-22

• future refrigerants in new equipment: • some already in widespread use, especially in Europe

• some just reaching the market

• note: refrigerant lists on following slides give examples • not intended to be an exhaustive list!

32

Food Retail

33

Sealed integral Condensing unit Large centralised pack

Typical charge: 0.1 to 0.5 kg 1 to 10 kg 20 to 200 kg

Typical annual leakage rate: <1% 5% to 20% 10% to 30%

Commonly used 2nd and 3rd generation refrigerants (GWP): R-404A (3922), HFC-134a (1430), HCFC-22 (1810)

Food Retail

34

Sealed integral Condensing unit Large centralised pack

Typical charge: 0.1 to 0.5 kg 1 to 10 kg 20 to 200 kg

4th generation and non-fluorocarbon options (GWP):

R-290, propane (3) R-744, CO2 (1) HFO-1234yf (5)

R-744, CO2 (1) transcritical or

cascade

R-290 (3) integrals, water cooled

R-448A, R-449A (1400) ? R-454C, R-455A (146)

R-448A, R-449A (1400) R450A, R-513A (600) ? R-454C, R-455A (146) ? R-744, CO2 (1) ? HFO-1234yf (5)

Food Service

35

Typical charge: 0.1 to 0.5 kg 1 to 10 kg

Typical annual leakage rate: <1% 5% to 20%

Commonly used 2nd and 3rd generation refrigerants (GWP): HFC-134a (1430), HCFC-22 (1810), R-404A (3922)

Sealed integral Condensing unit

Food Service

36

Typical charge: 0.1 to 0.5 kg 1 to 10 kg

Sealed integral Condensing unit

4th generation and non-fluorocarbon options (GWP):

R-290, propane (3) R-744, CO2 (1) HFO-1234yf (5)

R-448A, R-449A (1400) R450A, R-513A (600) ? R-454C, R-455A (146) ? R-744, CO2 (1) ? HFO-1234yf (5)

Food and Drink Manufacture and Cold Stores

37

Typical charge: 250 to 5000 kg 10 to 100 kg 100 to 2000 kg

Typical annual leakage rate: 4% to 8% 5% to 10% 2% to 5%

Large pumped system

Small / medium DX

Chiller + secondary fluid

Commonly used 2nd and 3rd generation refrigerants (GWP):

Ammonia HCFC-22

HFC-404A, HFC-134a HCFC-22

Ammonia, HFC-134a HCFC-22, HCFC-123

Food and Drink Manufacture and Cold Stores

38

Typical charge: 250 to 5000 kg 10 to 100 kg 100 to 2000 kg

Large pumped system

Small / medium DX

Chiller + secondary fluid

4th generation and non-fluorocarbon options (GWP):

R-717, ammonia (0) R-744, CO2 (1)

R-448A, R-449A (1400) R450A, R-513A (600) ? R-454C, R-455A (146) ? R-744, CO2 (1)

R-717, ammonia (0) HFO-1234ze (7) HFO-1233zd (4) R-514A (9)

Food Transport

39

Typical charge: 1 to 8 kg 4 to 8 kg

Typical annual leakage rate: 8% to 20% 3% to 12%

Commonly used 2nd and 3rd generation refrigerants (GWP): R-404A (3922), HFC-134a (1430), HCFC-22 (1810)

Road vehicles Intermodal containers

Food Transport

40

Typical charge: 1 to 8 kg 4 to 8 kg

Road vehicles Intermodal containers

4th generation and non-fluorocarbon options (GWP):

R-452A, (2140) R-744, CO2 (1) ? R-454C, R-455A (146)

CFC-11

HFC-245fa;

HFC-

365mfc/227ea

HCFC-141b

HFO-

1336mzz

HFO-

1233zd

PU Foam

Solvents

HCFC-141b

HCFC-

225ca/cb

HFO-1233zd

HFC-365mfc

HFC-245fa

HFO-

1336mzz

?

Fire Protection

Handheld Fire Extinguisher

Halon 1211

HCFC-123

(77 GWP)

HFC-236fa

(9810 GWP)

HCFC-123 (e.g. Halotron) has also

been used as a clean agent

alternative to halon 1211 in some

countries. It is SNAP listed with

some limitation on applications.

HFC-236fa is used an alternative to

halon 1211. It is SNAP listed by

EPA and has similar performance as

halon 1211. The use of HFC-236fa

was developed and sold by DuPont

under the tradename FE-36. It is

normally used for special

applications where none of the other

non-ODS are found acceptable.

Other alternatives such as ABC and BC powder, foam, water, and CO2 should be considered.

Fixed Fire Extinguishing System

Halon 1301

HFC-227ea

(FM 200)

HFC 125

(FE 25)

Nitrogen Argon CO2

Water Mist Foam Water Sprinkler

NOVEC 1230

Comparison of Clean Extinguishing Agents

Halon

1301

NOVEC

1230

FE-25

(HFC-125)

FM-200

(HFC-

227ea)

CO2

Design

concentration

5% 4.5% to

6%

8.7% to

12.1%

6.7% to

8.7%

35% to

40%

NOAEL 5% 10.0% 7.5% 9% 43%

Global

Warming

Potential

6,290 <1 3,170 3,350 1

OPD 12 0 0 0 0

Snap approved No yes Yes Yes Yes

• Major products exported by Thailand include:

• Air-Conditioning Equipment;

• Vehicles;

• Processed Fish;

• Electronics (Integrated Circuits and PCB); and

• Others

• Export Values of the above are expected to be more than US $37.4 Billion (16% of the total export value)*

Potential Economic Impact

*Source: MIT’s Observatory of Economic Complexity Database

Thank You & Good Luck!!!

Viraj Vithoontien Lead Environment Specialist The World Bank Group 1818 H Street, NW Washington, DC 20433 Tel: 1 202 473 6303 E-mail: vvithoontien@worldbank.org