Seite 1 GTZ PROKLIMA INTERNATIONAL PROKLIMA The potential for hydrocarbon refrigerants as HCFC-22 replacement in air conditioning Atmosphere 2009 Bussels, October 2009 Volkmar Hasse GTZ-Proklima PROKLIMA

Seite 2 GTZ PROKLIMA INTERNATIONAL PROKLIMA Overview of Presentation o Room Air Conditioner Situation o Substitute Technologies o GTZ-Proklima Demonstration Project o Policy Development o Market Potential PROKLIMA

Seite 3 GTZ PROKLIMA INTERNATIONAL PROKLIMA Statement Hydrocarbon refrigerants are an excellent alternative to HCFCs. Hydrocarbons are used safely in all walks of life from hairspray and cooking gas to fuels for cars and airplanes. Hydrocarbon based technologies have to be designed to operate safely, and they are indeed safe." PROKLIMA

Seite 4 GTZ PROKLIMA INTERNATIONAL PROKLIMA Overview of Presentation o Room Air Conditioner Situation o Substitute Technologies o GTZ-Proklima Demonstration Project o Policy Development o Market Potential PROKLIMA

Seite 5 Page 5 PROKLIMA GTZ PROKLIMA INTERNATIONAL April 2008 PROKLIMA GTZ PROKLIMA INTERNATIONAL Types of room air conditioning equipment

Seite 6 GTZ PROKLIMA INTERNATIONAL PROKLIMA Room Air conditioners Worldwide PROKLIMA

Seite 7 Page 7 PROKLIMA GTZ PROKLIMA INTERNATIONAL April 2008 PROKLIMA GTZ PROKLIMA INTERNATIONAL Historical and forecast production of RAC equipment in China (for domestic consumption) Increase is nearly exponential !

Seite 8 Page 8 PROKLIMA GTZ PROKLIMA INTERNATIONAL April 2008 PROKLIMA GTZ PROKLIMA INTERNATIONAL HCFC demand (new equipment and servicing) in A5 countries, 2009 HCFC banks in A5 countries, 2009

Seite 9 GTZ PROKLIMA INTERNATIONAL PROKLIMA Overview of Presentation o Room Air Conditioner Situation o Substitute Technologies o GTZ-Proklima Demonstration Project(s) o Policy Development o Market Potential PROKLIMA

Seite 10 GTZ PROKLIMA INTERNATIONAL PROKLIMA Substitute Technologies o R 410A: GWP 2100 o R 407C: GWP 1800 o R 290: GWP 3 - Technical development: energy efficiency - Safety standards: flammability - Comparison with R600a refrigerators: Safety discussions 12 years ago Lessons learned? PROKLIMA

Seite 11 GTZ PROKLIMA INTERNATIONAL PROKLIMA Success of Greenfreeze Technology-Diffusion in China o 1995: Company Quingdao Haier introduced Greenfreeze Technology, supported by GTZ o 1997: Company Kelon changed its production to Greenfreeze o 2008: 75% of Chinese production uses Greenfreeze Technology We did it once. Can we do it again? PROKLIMA

Seite 12 GTZ PROKLIMA INTERNATIONAL PROKLIMA Success of Greenfreeze Technology- Diffusion Worldwide PROKLIMA Now, even in USA, introduction of HCs in some domestics and trials in ice cream freezers and bottle coolers

Seite 13 GTZ PROKLIMA INTERNATIONAL PROKLIMA Overview of Presentation o Room Air Conditioner Situation o Substitute Technologies o GTZ-Proklima Demonstration Project(s) o Policy Development o Market Potential PROKLIMA

Seite 14 Page 14 PROKLIMA GTZ PROKLIMA INTERNATIONAL April 2008 o Production of R290 Room air conditioners to at Gree Electric Appliances Inc o Gree is worlds largest manufacturer of room air conditioners o Developed range of R290 splits o Efficiency higher than equivalent R22, R407C and R410A products o Details on the Gree AC Unit (refer to exhibition)

Seite 15 GTZ PROKLIMA INTERNATIONAL PROKLIMA GTZ-Proklima Demonstration Project PROKLIMA o Comprehensive training for production engineers and service technicians needs to be implemented o Marketing strategy for new models o Prices? Every company introducing the technology will have to make serious research and development efforts to make the technology safe and cost-effective o After mass-production starts, the prices of R290 units should however be very competitive GREE cannot do it alone. There must be other equipment manufacturers to follow suit.

Seite 16 GTZ PROKLIMA INTERNATIONAL PROKLIMA Emission Reduction Scenario o Potential for China (60% of worlds A/C production) o Diffusion rate based on experiences with R 600a Greenfreeze technology PROKLIMA

Seite 17 GTZ PROKLIMA INTERNATIONAL PROKLIMA Overview of Presentation o Room Air Conditioner Situation o Substitute Technologies o GTZ-Proklima Demonstration Project o Policy Development o Market Potential PROKLIMA

Seite 18 GTZ PROKLIMA INTERNATIONAL PROKLIMA Policy Development o Over 100 countries will place import quotas to meet 2013/2015 MP obligations o Europe: reconsidering EN 378 o International: reconsider IEC ? o China: RAC industry safety standards o USA: Clean Air Act / ASHRAE o Safety considerations depend on: - appropriate industry standards - appropriate service technician education o Montreal Protocol Example: CFC phase out PROKLIMA

Seite 19 Page 19 PROKLIMA GTZ PROKLIMA INTERNATIONAL April 2008 PROKLIMA GTZ PROKLIMA INTERNATIONAL Estimated annual (reported) emissions from China RAC equipment (no R-22) o Additional emissions from each years production, eligible for reporting o With HFCs only, emissions increase by over 10 times by 2020 o With natural refrigerants, 2007 levels are maintained by 2020

Seite 20 GTZ PROKLIMA INTERNATIONAL PROKLIMA Policy Development o Destruction and recycling of CFCs, HCFCs and HFCs o Most developing countries have no facilities (too expensive, no infrastructure) o Recovered stocks – ultimate fate is atmosphere o Entire problem can be avoided with HCs (may be vented) This policy situation may translate into sooner and higher market demand for natural refrigerant based solutions PROKLIMA

Seite 21 GTZ PROKLIMA INTERNATIONAL PROKLIMA Overview of Presentation o Room Air Conditioner Situation o Substitute Technologies o GTZ-Proklima Demonstration Project o Policy Development o Market Potential PROKLIMA

Seite 22 GTZ PROKLIMA INTERNATIONAL PROKLIMA Room Air Conditioner Situation 2009 o approx. 1 billion HCFC-22 units worldwide o about 100 million units added annually o average HCFC-22 charge about 1.6 kg o approx tonnes HCFC-22 contained in existing equipment o HCFC-22 GWP: 1810 o 2896 Mtonnes CO2eq. o Servicing needs: approx tonnes/yr o 1448 Mtonnes CO2eq. PROKLIMA

Seite 23 GTZ PROKLIMA INTERNATIONAL PROKLIMA Market Potential o Major development in tropical countries: - Energy efficiency, direct emission reductions o Major countries: China, India, Gulf, ASEAN, Latin America o LVCs: Island States, Africa o Developing gap between market demand for air conditioners and availability of HCFC air conditioners due to freeze in 2013 and subsequent reduction steps o Precondition: Availability of HC refrigerant gas PROKLIMA

Seite 24 GTZ PROKLIMA INTERNATIONAL PROKLIMA Thank you for your interest and support replacing HCFC 22 with an environmentally friendly substitute Thank You!