F-Gas Regulation Update Dr Rob Lamb FInstR CEng Group Sales & Marketing Director Welcome F-gas regulation has been in operation since 2006? Last revision at the end of 2014 and into law in 2015 Sees a phase down in the use of fluorinated refrigerants based on their GWP We’ll run through phase down time line, affects on the use and service of refrigeration plant with f-gas refrigerants and alternative solutions

F-gas ‘phase down’ timeline Key changes to the regulation Overview F-gas ‘phase down’ timeline Key changes to the regulation Refrigerants at risk Replacement options

F-gas Phase Down Timeline Average GWP 2250 1450 1000 700 <500 Phase down timeline sees a reduction in availability of high GWP refrigerants as limits are set on production based on the CO2 equivalent rather than kg. The regulation isn’t refrigerant specific but looks at overall CO2 across all gases manufactured. This will encourage manufacturers to move to lower GWP gases in order to product the same kg/yr There was a small 7% reduction in CO2 equivalent volumes in 2016. The first major reduction comes in Jan 2018 when CO2 equivalent production will be down to 63% of levels in 2015. This continues over the next 12 years until 2030 when the CO2 equivalent will be 21% of that in 2015. By 2030 manufacturers will need to reduce the average GWP value of their products to <500 to keep up the same kg/yr of production.. Manufacturers are already move away from high GWP refrigerants towards lower overall GWP values through the use of both pure fluids but also mixtures of low and high GWP refrigerants.

F-gas Pricing The cost of the lower GWP refrigerants is significantly higher that the fluids they are replacing and already this year we’ve seen an unprecedented increase in refrigerant pricing. Following a number of years of minor increases, the cost of high GWP f-gas refrigerants has increases between 50% and 100% in just 5 months. This wasn’t the case for CFC or HCFC (R22) phase out and is already causing concern in the industry as to how high prices will get and when increases will stop.

F-gas Pricing > When it comes to cost, we need to wake up to the importance of leak tight systems. In the past, gas has been cheap but we are now at a point where 1kg of HFC is more than the hourly rate of an engineer. It is also coming harder to source as production reduces. Now more than ever, we need to focus on making synthetic systems leak tight.

Equipment Ban Product/Equipment Year Refrigerant affected Refrigerators and freezer for commercial applications (hermetically sealed) using HFCs with GWP ≥ 2500 2020 R404A, R507, R417B, R422D As above but HFCs with GWP ≥ 150 2022 R134a, R407A/C/F, R410A, R417A, R427A Stationary refrigeration using HFCs with GWP ≥ 2,500 except below -50°C Multipack centralised refrigeration equipment ≥ 40kW using fluorinated gases with GWP ≥ 150 (cascade systems GWP < 1,500 permitted) R404A, R507, R417B, R422D, R407A/C/F, R410A, R417A, R427A (R134a permitted in cascade) In addition to gas phase downs, bans will be coming into place on the use of high GWP gases in system from 2020. The top two sections of this table relate to small refrigerators but you’ll not the ban on the use of HFCs>2500 in stationary refrigeration systems from 2020 which means no more R404A. There are even stricter requirements from 2022 when the use of refrigerants >150 GWP will be banned except when used in cascade with a low GWP secondary. This means no more R134a/R404A/R407F.... central refrigeration systems (e.g. multi compressor systems with >40kW capacity)

Minimum Charge Size (kg) Service Ban Service Ban from 2020 Service/maintenance > 40 tonnes CO2-eq GWP ≥ 2,500 Refrigerant GWP Minimum Charge Size (kg) R404A 3922 10.20 R422D 2729 14.66 R507 3985 10.04 Exemptions Reclaimed refrigerant ≥ 2,500 until 1 Jan 2030 Recycled refrigerant ≥ 2,500 until 1 Jan 2030 Used in existing equipment Recovered from refrigeration equipment A more pressing matter is the service bans which come into force in the next two years. From 2020, it will no longer be possible to service systems using refrigerants >2,500 GWP that have 10kg to 15kg of charge unless using reclaimed or recycled refrigerants. Most R404A and R507 condensing unit systems have a charge in excess 10kg and similarly for R422D and 15kg. Unlike with R22, there is unlikely to be large quantities of recycled or reclaimed refrigerant available as there aren’t the same number of large volume, pumped recirculation systems to reclaim from. So where do we go from here?

Refrigerant ‘Risk’ High Risk Medium Risk Low/No Risk R404A R507 R417B R422D R134a R407A/C/F R410A R417A R427A R448A R449A HFO HFO/HFC Ammonia CO2 HC High ‘risk’ refrigerants over the next 3 years will become: Harder to source Higher in price The mixture of phase down, price increases and service bans mean that operators need to assess how the regulation will affect their business moving forward. In simple terms, there are high and medium risk refrigerants. The high risk refrigerants will are seeing the fastest hike in price and will be subject to the service ban from 2020. These systems should be assess as soon as possible to decide what action is appropriate and some options will be discussed later. However, operators using lower GWP refrigerants need to see these as under medium term risk. These include R134a, the R407 series and even some of their short term replacement fluids. We saw earlier that the phase down programme means that these refrigerants have GWPs greater than the 2030 average and surpass the average by 2013. This means the price and their availability may come into question. There is more time to decide what to do but we are only 5 years away!

GWP and Flammability Refrigerant GWP Safety Class R22 1780 A1 R32 704 A2L R125 3450 R134a 1360 R290 5 A3 R404A 3922 R407A 2107 R407F 1824 R717 B2L R744 1 R1234yf <1 R1234ze As we move forward, on thing to consider is that the move to lower GWP doesn’t come without its complexities. This table common refrigerants and their flammability classification. Most widely used synthetic refrigerants have be classified as A1 or non-flammable at the asigned test conditions.

GWP and Flammability Refrigerant GWP Safety Class R22 1780 A1 R32 704 A2L R125 3450 R134a 1360 R290 5 A3 R404A 3922 R407A 2107 R407F 1824 R717 B2L R744 1 R1234yf <1 R1234ze However, what we see is that in order to reduce GWP, we need to move away from A1 to the new A2L ‘mildly flammable’ classification or even A3. The only exception is CO2 which is a fire suppressant. The next generation of low GWP, synthetic blends will be classified as A2L due to their high concentration of HFO or lower GWP HFO (e.g. R32). We need to accept this and develop systems to suit. We’ve been doing the same for ammonia for over 100 years!

Refrigerant Replacement Options So what options are available for owners are HFC systems.

Refrigerant Replacement Options Criteria Low GWP Flammability Toxicity Materials of Construction Refrigerant Cost Retrofit Cost New Installation Cost Longevity There are a number of criteria that need to be considered when assess replacement fluids. What is there GWP. Pointless moving to a new fluid. Only to move again in a few years time. Might be an option to buy time but its also delaying the inevitable. There is also the new challenge of flammability and possibly toxicity. Whilst the new synthetics aren’t themselves toxic, there byproducts when ignited can be toxic and highly corrosive. Will a new system be manufactured in a similar manner to the existing? What will the gas cost today an in the future? Could it be retrofitted into an existing system? What additional precautions will be necessary? What are the costs associated with a new system? Any how long with the solution last?

Refrigerant Options – HFC/HFO Blends Benefits: - ‘Designed’ for the application - Low GWP possible with use of HFOs - Temperature glide for save energy Replacements for R404A, R507, R400 series Retrofit or new system Challenges Higher refrigerant cost A1 but high GWP Low GWP but A2L Temperature glide Too many to choose from Sythetic refrigerant manufacturers have been busy producing replacement fluids for the likes of R404A. There are a wide variety available and may have been developed for specific LT, MT or HT operation. They offer reduced GWP through the addition of HFOs and are multi-component blends which boil over a temperature range. This can be uses to reduce energy consumption if systems are correctly design. They provide a retrofit option for the likes of R404A, R567 and R400 series where the existing system is to be retain. However, there are challenges. The cost is relatively high per kg today but what about the future. For the current transition refrigerants, these are unlikely to be the solution in 5 years time and there price will increase. To get to the low GWP required means moving to A2L which brings its own challenges in terms of designing the system to acount for mildly flammability. More on this in a later presentation. Temperature glide is also a challenge if not dealt with correctly and can result in excess energy consumption. A further challenge is the vast number of refrigerants on the market. Which one should you chose? Which one will be the VHS and which will be the Betamax? How will I know which refrigerant is which on an installation what has numerous systems installed

Refrigerant Comparison Criteria HFC/HFO blends Low GWP Flammability Toxicity Materials of Construction Refrigerant Cost Retrofit Cost New Installation Cost Longevity The future is uncertain and hence the amber rating across the criteria. What is certain is that costs are likely to rise further and will be hundreds and thousands of times greater than some alternatives. Retrofit is amber here despite the possibility of using existing equipment. This is because great care will need to be taken to avoid leakage and/or to deal with flammability. The long term future is uncertain.

Refrigerant Options – HFOs Benefits GWPs <1 Replacement for R134a Challenges High refrigerant cost A2L flammability Limited HT applications Question over by-products when released into atmosphere Limited to packaged systems HFOs themselves provide an opportunity to get low GWP and have been used both in blends or pure form as a replacement fro R134a. A major challenge is their cost. They are one of the reasons that prices of new blends are increasing. They are also A2L fluids which means flammability needs to be dealt with. In most applications so far they have been used in outdoor air cooled secondary systems where the issue of flammability is overcome by natural and forced ventilation. There potential use in distributed systems is questionable and to high temperature applications.

Refrigerant Comparison Criteria HFC/HFO blends HFO Low GWP Flammability Toxicity Materials of Construction Refrigerant Cost Retrofit Cost New Installation Cost Longevity There GWP <1 means a green low GWP and longevity High pricing means a red for cost For the same reason retrofit is given a red along with the additional requirements associated with A2L

Refrigerant Options – CO2 The phase out of CFCs and HCFCs resulted in a growing interest in the use of CO2. This grew with the f-gas regulation as operators looked to replace R404A etc.

Refrigerant Options – CO2 Benefits GWP =1 Single component fluid A1 safety class Low refrigerant cost Opportunities for heat recovery Widely used for retail applications Challenges High pressure Trans-critical efficiency Longevity of systems As the reference fluid it has the benefit of having a low GWP. It is also a single component fluid which avoids the complexity of glide. Unlike most other replacement fluids it is A1 safety class and can be used for a wide variety of applications with potential for high grade heat recovery. There are know challenges in terms of operating pressures which has resulted in considerable development in components to cope. Efficiency in high ambient conditions (>25degC) is also poor due to the properties of CO2 Most of the large scale development to date has been in retail where system longevity is limited to 5 to 10 years, whereas many industrial users are looking for much longer. However, industrial system have been shown to be reliable and a number have been running for >15 years

Refrigerant Comparison Criteria HFC/HFO blends HFO CO2 Low GWP Flammability Toxicity Materials of Construction Refrigerant Cost Retrofit Cost N/A New Installation Cost Longevity As we move to CO2 we see more green in our table. Low GWP, non-flammible and toxic, low cost and longevity of the refrigerant. Its not really suited to retrofit and install costs are higher due to the higher pressure and high component cost.

Refrigerant Options – Ammonia (R717) Our next fluid is ammonia which has been used in refrigeration for 100+ years. Historically, it’s use has been limited to larger systems but this is changing (see condensing units in this image).

Refrigerant Options – Ammonia (R717) Benefits GWPs = 0 >100 years experience of use Wide application range Good efficiency Low cost refrigerant Development of low charge and packaged systems Challenges Equipment and installation costs Training Toxicity It is the only refrigerant in our table with zero GWP and has been used for many years across a wide range of applications with relatively good efficiency. Ammonia production for agriculture far outweighs that for refrigerant and ensures a low cost/kg. In recent years, there has been lots of development to reduce charge to mitigate concerns over safety and to make ammonia more palatable for smaller installations However capital costs remain relatively high and there are the concerns over flammability and toxicity. This has tended to put people off its use but could this change with the issues associated with synthetics?

Refrigerant Comparison Criteria HFC/HFO blends HFO CO2 R717 Low GWP Flammability Toxicity Materials of Construction Refrigerant Cost Retrofit Cost N/A New Installation Cost Longevity Ammonia has more ambers than CO2 in recognition of its flammability and higher component costs but this could also be labelled a benefit as it typically means a better quality of installation with fewer issues with leakage and greater longevity

Refrigerant Options – Hydrocarbons Benefits GWPs <150 Excellent efficiency Wide application range Compatible with existing materials of construction Challenges Flammability Indoor application Direct systems Hydrocarbons are also a possibility. The have low GWP, good efficiency and can be used across a wide range of applications. They can also use the same materials as synthetics. However, concerns remain over their flammability and this will restrict their use to outdoor packages and typically cooling a secondary fluid.

Refrigerant Overview Criteria HFC/HFO blends HFO CO2 R717 HC Low GWP Flammability Toxicity Materials of Construction Refrigerant Cost Retrofit Cost N/A New Installation Cost Longevity

Summary HFC prices are increasing Availability will reduce New solutions required No single solution Plenty of opportunities Flammability and toxicity awareness Possible energy benefits from glide Growth in use of CO2 and ammonia In summary: The f-gas regulation is starting to have an affect on the industry. Increased prices and questions over availability is bringing the subject to the forefront and there is a recognised need to find new solutions. There is no ‘one fits all’ solution and the right solution for you will depend on your preferences and application. There are lots of options but a common challenge will be the move towards ‘mildly’ flammable and what this means for operators. At the same time their are energy improvement opportunities. The future appears to indicate a growth in CO2 for small to medium sized applications and ammonia coming down into medium sized applications

THANK YOU! Thank You! For further support: T: 01332 756041 M: 07979 705802 E: rlamb@star-ref.co.uk www: www.star-ref.co.uk THANK YOU!