The Future of Refrigerants: Where Do We Go From Here? Mike Thompson Global Leader of Refrigerant Strategy Trane, Ingersoll Rand, Thermo King

Options For HVAC Refrigerants Fluorocarbons “Natural” Refrigerants Ozone Depleters (Montreal Protocol) Non- Ozone Depleters (Kyoto Protocol) Class 1 High ODP CFC’s Class 2 Low ODP HCFC’s Lower GWP Higher GWP R-134a R-410A R-407C R-32 R-152a Propane Butane CO2 Ammonia R-11 R-12 R113 R-500 R-22 R-123 There are a number of options today in the are of refrigerants. The most commonly used flourocarbons are broken into two categories- non ozone depleters, and ozone depleters. The ozone depleters have been addressed by the Montreal Protocol. The non-ozone depleters are now being looked at under the Kyoto protocol due to their impact on global warming. There are also what is referred to as the “natural” refrigerants, such as propane, butane, CO2 and ammonia. In the 70’s and 80’s, it was easy to determine what the good and bad refrigerants were- there was only one issue- ozone depletion. Today, it is not nearly as easy. Now we know that global warming is a factor, and many chemicals with a high global warming potential are getting phase out in some location, such as Europe for automotive applications. Then, some of these chemicals, and flammable, so there use get much more complex in large quantities, some of these refrigerants have toxicity concerns, and there are also efficiency and cost concerns as well. In the end there is no “perfect” refrigerant choice- any refrigerant we choose is an effort in compromise. A more thorough review of these chemicals will help us understand the impacts of these comprimises.

Timeline of Refrigerant Usage Montreal Protocol Signed Kyoto Protocol Signed No new R-22 for service No new equipment with R-123 in developed countries All CFC production Stopped (R-11,R-12) in developed countries No HCFC production in developing countries No new R-123 for service in developed countries, no HCFC’s in new equipment in developing countries No CFC’s for developing countries 1990 2000 2010 2020 2030 2040 2050 No automotive use of R-134a in Europe Continued use of recycled R-22, R-123 for developing countries No new equipment with R-22 This chart shows a summary of most of the legislative actions in place for refrigerants today in developed and developing countries, both due to the Montreal and Kyoto Protocol, and localized legislation. The specific dates in some developing countries vary, but these are the dates in the US and Canada. Note that, as with the CFC’s, even when production of the refrigerant is stopped, there is continued use of recycled, recovered, and stockpiled supplies of these refrigerants without restriction. The CFC’s stopped production in 1996, now 11 years later, stocks of these refrigerants are readily available. R-12, drove up significantly in price after 1996 due to automotive use, but has reduced in price in recent years as automotive use has declined. R-11 has remained available at a low price. Continued use of recycled R-123 Today Continued use of recycled R-22 Continued use of recycled CFC’s Note: Included in the use of “recycled” refrigerants is also the use of stockpiled supplies of the refrigerant produced before the phase out date. In addition, there is no restriction on the importation of recycled and recovered supplies of refrigerants.

Current Refrigerant Pricing January 2011 This is a current snapshot of refrigerant pricing as of December, 2007. These prices can vary by location and time of the year, but it is a good representation of typical prices out there today. *Source: WWW.r22.org

Trane’s position on refrigerants has been consistent over the years Trane’s position on refrigerants has been consistent over the years. This magazine article written for HPAC magazine in April of 1991 is a great example. Even back in 1991, Trane was telling the industry that the important issues in the future to determine what refrigerants we would be using would be a balance approach to ozone depletion, global warming, and energy efficiency. The title “Refrigerants: The Future In The Balance” is even more apparently true today than is was in 1991 when it was written.

Kyoto Protocol Greenhouse Gas Coverage Six (6) Gases Carbon Dioxide -- CO2 Methane -- CH4 Nitrous Oxide -- N2O Hydrofluorocarbons -- HFCs Perfluorocarbons -- PFCs Sulfur hexafluoride -- SF6 Base Period 1990 for CO2 , CH4 , and N2O 1990 or 1995 for HFCs, PFCs, and SF6 This chart shows the specific gases to be covered and regulated under the Kyoto Protocol. Note that even though CFCs and HCFCs are Global Warming Gases, they are not covered under this protocol due to their separate coverage already under the Montreal Protocol. Likewise, HFCs which have no ozone depletion are not covered under the Montreal Protocol, but because they do have Global Warming Potential, they are covered here in the Kyoto Protcol. Also, the reduction percentages are not gas specific but are combined. So, for example, greater savings in CO2 can be credited to allow growth in HFC’s, as long as the combined emissions are reduced overall. The Base periods shown are the dates which will be used to determine compliance with the reduction levels agreed to in the treaty. Primarily it will be 1990, except that HFCs will likely use 1995 since not many HFCs were yet in use in 1990.

European HFC Restrictions Denmark General HFC ban in 2006 HFC ban on HVAC equipment in 2007, except if the factory refrigerant charge is <10kg for cooling applications or <50 kg for heat pump applications Austria HFC ban on HVAC equipment, appliances and cars in 2008, except if factory charge is <20kg of refrigerant Switzerland Domestic Refrigeration HFC Ban - 2003 Air Conditioners HFC Ban - 2005 Mobile Air Conditioning HFC Ban – 2008 F-Gases Directive on car air conditioning No new vehicles containing F-gases, with a GWP greater than 150, in 2011 Prohibit sale of vehicles containing F-gases, with a GWP greater than 150, in 2017 Recent moves in Europe with regard to the HFC’s (R-134a, R-410A, R-407C) are quite startling. Denmark, Austria and Switzerland will enact bans on all HFC’s within the next 3 years.

Country GHG Cap & Trade Legislation Japan GHG emissions reduction target of 60-80% by 2050 Will start trial cap & trade program fall of 2009 Govt pressure on GHGs, including HFCs, against industries desires New Zealand Cap & Trade (Legislation in process) Six gases including HFCs All sectors Australia Cap & Trade (Legislation in process) Five gases Separate HFC regulation (25% below 2000 levels by 2020) HFC regulations begin in 2011 European Union (27 countries) - 2008 CO2 only cap and trade, utilities & large industrials HFCs under regulatory pressure

US Legislative Efforts American Clean Energy and Security Act of 2009 (aka: Waxman-Markey Bill) Uses the average of 2004, 2005, 2006 production as a baseline for HFC production (weighted HCFC and HFC volumes) 10% below average in 2012 33% below average in 2020 75% below average in 2030 85% below average in 2033 US State Department Proposal to UNEP Reduce to 2005 levels by 2014 20% reduction by 2017 30% reduction by 2020 50% reduction by 2025 70% reduction by 2029 Developing countries to follow developed countries by 10 years

Balance of Environmental Issues Minimal Ozone Depletion (ODP) Minimal Global Warming potential (GWP) Best delivered efficiency (part and full load) Short atmospheric life Lowest possible leakage rate

Environmental Impact of Refrigerants Ozone Depletion Potential (ODP) Global Warming Potential (GWP) Energy Efficiency (COP) Atmospheric Life (years)

ODP versus GWP CFC-11 12 113 114 115 HCFC-22 123 124 141b 142b HFC-32 125 134a 143a 152a 227ea Next we look at both GWP and ODP together- ODP on the left, and GWP on the right. Balance becomes a factor when we compare ODP and GWP. This chart offers a different environmental impact perspective. It’s clear that there’s no perfect refrigerant for the HVAC industry. However, it’s R-123 that strikes the greatest balance between ODP and GWP. The two other common fluorocarbons on this chart that appear to have good balance are R-32 and R-152a. Unfortunately, their use is limited because they’re flammable. 236fa 245fa 1.0 0.8 0.6 0.4 0.2 0.0 0.0 2000 4000 6000 8000 10000 ODP (relative to R-11) GWP (relative to CO2) J. M. Calm and G. C. Hourahan, “Refrigerant Data Summary,” Engineered Systems, 18(11):74-88, November 2001 (based on 1998 WMO and 2001 IPCC assessments) © JMC 2001

Chiller Operating Pressure Operating pressure tells us how likely or how quickly a refrigerant will escape out of the machine in case of a leak. For HVAC equipment, we look at operating pressure in three different circumstances The operating pressure in the evaporator (blue bar) The operating pressure in the condenser (red bar) The operating pressure when the unit is offline (yellow bar) The bottom line is that higher pressure refrigerant have a higher tendency for leakage.

Chiller Emissions Study Number of Trane R-123 CenTraVacs 2768 Total Pounds of Charge 3,547,612 lbs Total Pounds of Charge Added 16,229 lbs/yr Annualized Total Loss Rate 0.4575 % Do low pressure chillers really leak less? This Trane study conduction in 1997 took every single R-123 chiller that Trane had under service contract at the time. This study included all leaks- accidental discharge, servicing, and normal operation. In real world applications, R-123 have low leakage rates. Trane 1997 Survey Results Study corroborated in “Impact on Global Ozone and Climate From Use and Emission of (HCFC-123)” By Calm, Wuebbles and Jain

What Is Important Over the Life of a Chiller? Cost of Energy (94.5%) First Cost of Chiller (5.18%) Cost of Initial Charge Of Refrigerant (0.25%) We need to put everything into proportion, and focus on what really is important over the life of a chiller. -The cost of energy to operate the chiller over a 30 year life is almost 95% of the total life cycle cost of a chiller - The initial cost of the chiller is only a little more than 5%. The cost of the initial refrigerant charge, which included in the purchase price of the chiller, only amounts to ¼ of 1% of cost When you are looking at refrigerant costs, the important factor is what it costs to add refrigerant that leaks over the life of the chiller. With average leakage rates of 0.5% per year, the cost of additional refrigerant over the life of the chiller is only 0.04% of the total life cycle cost. Refrigerants with a higher pressure, and resulting higher leakage rates will certainly be higher. Don’t let minor issues like the refrigerant type cause you to ignore what is really important. Refrigerant Added Over 30 years (0.04%)

The Future Emissions Energy Efficiency This is the key focus for the future. Whether you an equipment manufacturers, an engineer, or an owner, the focus of achieving the best possible energy efficiency, with the lowest possible refrigerant emissions is the key to being both environmentally responsible, and economically responsible. Focusing on Emissions and Efficiency is fundamental to doing what’s right

Options For HVAC Refrigerants Fluorocarbons “Natural” Refrigerants Ozone Depleters (Montreal Protocol) Non- Ozone Depleters (Kyoto Protocol) Class 1 High ODP CFC’s Class 2 Low ODP HCFC’s Lower GWP Higher GWP R-134a R-410A R-407C R-32 R-152a Propane Butane CO2 Ammonia R-11 R-12 R113 R-500 R-22 R-123 GWP GWP ODP GWP ODP GWP GWP ODP ODP There are a number of options today in the are of refrigerants. The most commonly used flourocarbons are broken into two categories- non ozone depleters, and ozone depleters. The ozone depleters have been addressed by the Montreal Protocol. The non-ozone depleters are now being looked at under the Kyoto protocol due to their impact on global warming. There are also what is referred to as the “natural” refrigerants, such as propane, butane, CO2 and ammonia. In the 70’s and 80’s, it was easy to determine what the good and bad refrigerants were- there was only one issue- ozone depletion. Today, it is not nearly as easy. Now we know that global warming is a factor, and many chemicals with a high global warming potential are getting phase out in some location, such as Europe for automotive applications. Then, some of these chemicals, and flammable, so there use get much more complex in large quantities, some of these refrigerants have toxicity concerns, and there are also efficiency and cost concerns as well. In the end there is no “perfect” refrigerant choice- any refrigerant we choose is an effort in compromise. A more thorough review of these chemicals will help us understand the impacts of these comprimises. GWP GWP ODP GWP ODP -Toxicity Concerns -Efficiency Concerns -Cost Concerns -ODP Concerns -GWP Concerns - Flammable ODP GWP

Summary All fluorocarbon refrigerants in use today are under legislative jeopardy The balanced approach to refrigerant selection is the best way to protect the environment Ozone Depletion Global Warming Energy Efficiency Short atmospheric life Low pressure (low tendency for leakage) Chiller selection should focus on: High Energy Efficiency Minimal leakage rates Superior technical design