(R)evolutions in refrigeration.Can we make things cold without turning up the heat?

The Past: Evolutions of a Revolution.

The Present: Minimising Our Impact and Enabling Better Business.

The Near Future: HFC Phase Down

The (R)evolution to come.

Matthew DarbyOwner EcoChill, Chair Climate Controls Companies Association (NZ)

THE PASTEVOLUTIONS OF A REVOLUTION

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17481805

1850-1870

1914 1920/ 30s

The Evolution of Refrigeration

1000 BC

REVOLUTION EVOLUTION

THE PRESENTMINIMISING OUR IMPACT:

RESPONDING TO ENVIRONMENTAL

LEGISLATION

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Legislation to meet New Zealand's international treaty commitments for Net 0 emissions by 2050…

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1996NZ implements Ozone Layer Protection Act & Regulations

2oo8Climate Change Response (ETS) Act

2010New HCFC Imports reduced on yearly basis by 63%

2015NO new HCFC’s imported: R22

2019HFC PHASE DOWN

BEGINS

NZ Regulatory change focused on restricting F gas refrigerants.

NOT A USE BAN

1987Montreal Protocol

1992 United Nations Framework Convention on Climate ChangeObjective: Global warming 2º minimum by 2030.

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The NZ Emissions Trading SchemePrinciple tool to control emissions impact and meet global warming targets.

Carbon Pricing

• NZ Carbon unit price:$18NZD

• To achieve a 2°C global warming limit by 2030 -Est: $80 -$120NZD

¹March 2017

The cost of the ETS on refrigerants in New Zealand.

Refrigerant Carbon cost alone.

R-404a $403.78

R-410A $220.15

R-134a $182.44

• Significant additional bottom line

costs for companies.

• Estimated additional $11,000,000 to

WHOLESALE costs in 2016.

• Estimated increase 33.33% annually

for next 3 years as “2 for 1” subsidy

removed.

Source: Dave Nicholls IRHACE

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Approx. 925 ton across the board.

New Zealand consumed • 500 ton to March 2015.• 22% increase on 2014.• Estimates of annual leak

rate as high as 70%.

Yet despite growth in natural refrigerants, demand for F gases continues to rise across industries and products.

Bulk importation

54%Contained -HVAC&R all

use27%

Mobile AC -134a19%

SYNTHETIC REFRIGERANT USE 2015/16 (KG)

500T

175T

249T

Source: • EPA Synthetic Greenhouse Levy 2015 Report• Dave Nicholls IRHACE/ Refrigerant Recovery

MANAGING HFC PHASE DOWN

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NZ: HFC Phase Down Timetable

“We will work with industry to develop a regime to phase down HFCs which is:

–workable –environmentally effective –consistent with any international obligations”. Jean Le Roux,

Manager International Team, Ministry for the Environment.

NB: As required by Kigali; NZ domestic policy TBA.

Questions for MfE? Contact the Montreal

mailbox Montreal@mfe.govt.nz .

Cost/ Penalties: Emissions Trading Scheme.

Refrigerant phase down and bans.

Energy efficiency benefits.

International legislation & impact on suppliers

Consumer pressure

End Users.

HVAC&R Industry.

Lack of strategic/ refrigerant only focus.

Unregulated industry.

Lack of incentives.

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Decrease GWP

IncreaseGWP

Factors impacting HFC phase down objectives:

Factors for success

GWP Objectives

Regulation

Industry Education &

Training

End User Buy In

Health & Safety

Containment strategy

Disposal strategies

Comm’s, Tools & Support

R&D

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Comes down to 3 options to :

Retain

Keep current system

Retrofit

Keep plant and replace with a synthetic refrigerant

Replace

Build new plant with synthetic or natural refrigerant

Capital Cost

Low

Strategy

Low

Capital Cost

Med

Strategy

Med -High

Capital Cost

Med -High

Strategy

High

Safety

Performance

Economics

Environment

Retrofit or Replace: Choosing a Refrigerant

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REFRIGERANT SELECTION

Toxicity, Flammability

WorkingPressures

Physical Properties

Energy

Technology Changes

EnergyEfficiency

Global Warming Potential

(GWP)

????

Retrofit or Replace: Changing Refrigerants

Synthetic

CFC’s (Phased Out)

HCFC (Importation

Ban)

HFC’s

HFO’s

Natural

Ammonia

CO2

HC

Water

Air

1Secondary Systems

Commerciallyviable

Retrofit or Replace Refrigerant: Synthetics

Ref. Safety Performance Economics*EnvironmentGWP (100Y)

404A $119 kg 3922

438A $119 kg 2264

407F $80 kg 1824

134A $80 kg 1430

417A $85 kg 1950

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*Generalized NZ market prices March 2017

Legend0 = Poor1 = OK

Not one meets <150 GWP

criteria.

2= Good3 = Excellent

Replace Refrigerants: Naturals

Ref. Safety Performance Economics*EnvironmentGWP (100Y)

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$6.50 kg 1

3

0

$ 82 kg

$14 kg

CO2(R744)

Ammonia (R717)

HC /mix (e.g.

R290)

Legend0 = Poor

1 = OK2= Good

3 = Excellent

*Generalized NZ market prices March 2017

Replace Refrigerants: HFO 1234yf

Safety

Low toxicity (?), flammable, toxic on

combustion.

PerformanceNo installs within

NZ.

EconomicsNot currently

available.

Enviro.(GWP 100Y)

4

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“No current

NZ installs.”

HFO 1234yf

Replace Systems: CO2

Advantages

• Uses a single refrigerant.

• Increased energy efficiency.

• Low cost of CO2.

• Safe refrigerant.

• Environmentally good choice.

Disadvantages

• Requires specific knowledge and skill to install and maintain.

• Performance in warmer climates.

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“Capital and servicing costs gap closed.”

Replace Systems: Standard Secondary

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• Reduce amount of primary stage refrigerant.• Reduce leakage rate of primary stage refrigerant.• Reduced primary system size.• Easier maintenance.

Why?

• Smaller primary circuit compared to DX.

• Uses a secondary fluid as main cooling medium.

What?

Replace Systems: Advanced Secondary

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Features Standard Secondary Advanced Secondary

Expansion Valves Typically Mechanical Electronic

Capacity Control Typically Unloaders VSD

Primary Circuit Size Typically Larger Optimised for Critical Charge

Primary Refrigerant Quantity Typically Higher Minimised through design

Replace Systems: Advancements in Secondary Systems

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• Reduced refrigerant charge.• Increased energy efficiency.• Increased system reliability.• Reduced operating costs.• Reduced stored product risk.• System safety and compliance.

The Next R(evolution) in Refrigeration

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Electro-caloric

Magnetic SonicHydraulic Optical Cooling

Acoustic

Lowering impact is not just about refrigerant.

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Safety

Charge minimisation,

user error

Energy Efficiency

System, & operational

Retail efficiencies

Space, versatility,

longevity, food trends.

Electronics & Computing

Remote control & maintenance, data.

Integration

Containment

“Contained refrigerants do not cause damage.”

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Real time monitoring AND servicing. Self

service.

First line of site assessments.

Virtual servicing.

System immersion –design and service.

Virtual design –global teams.

Disruption technologies

TURNERS & GROWERS: LOW GWP SOLUTION DRIVES BETTER BUSINESS

Problems• Old R22 systems

• Want to reduce running costs

• Looking for added value

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Solution• Reengineered precooling

• Refurbished R22 coolstores to optimal conditions

• Built new coolstore, same footprint as existing R22

• EcoChill Kiwi using HC/ Glycol Advanced System design.

Kerifresh images courtesy Kerifresh.co.nz

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Store capacity (Pallets)

Cost to Cool(Per Pallet/

Day

% improvement

R22 840 $0.34 Baseline

EcoChill 864 $0.25 36%

Result:

“36% saving on

energy costs while

cooling more

pallets”

Total Equivalent Warming Impact (TEWI)

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948

1,173

1,568

1,1191,228

R290 R22 R404A /R507

R134A R407f

Tons of CO2 over 15 years

“225

tonnes of

CO2 savedor the yearly

emissions

from 43

cars.”

“Refrigeration:

providing

competitive

advantage.”

Maintaining Optimal Conditions

• Pack

• Precool

• Uniform Temperature

• High Room Humidity

• No Air Temp Variations

• Energy Efficient

• Low Maintenance

• Increased margin

• Higher “vine to table” volumes

Zespri images courtesy zespri.com 31

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HFC Phase down – a huge opportunity for the industry.

Everyone knows what CFC’s are – why do people know about a refrigerant but the refrigeration

industry is invisible?

www.ecochill.kiwi

QUESTIONS?