CHALLENGES IN MEETING 2020 HCFC PHASE OUT TARGETS Lessons Learned & Insights UNIDO Regional SA Ozone Network Meeting Agra, India 25 May 2017

CONTENTS Status of implementation in the XPS, RAC manufacturing and PU foam manufacturing sectors Technical and Policy Challenges for achievement of 2020 HCFC Phase-out Targets

XPS MANUFACTURING SECTOR -STATUS 29 production lines for conversion to either CO2 or butane or butane mixed with other low GWP blowing agents 10 enterprises converted and introduced CO2 technology 10 enterprises prepared for commissioning Additional technical assistance improvements to the standards for XPS foam products optimization of the CO2 technology good practices for safe production of XPS foam using the CO2 technology

XPS MANUFACTURING SECTOR - CHALLENGES Further improvements needed on thermal conductivity, dimensional stability and flame retardancy Enterprises to use virgin materials, instead of recycled materials in order to stabilize the manufacturing process with CO2 technology Safety considerations necessary due to the introduction of flammable chemicals as co-blowing agents Use of brominated flame retardant controlled by the Stockholm Convention

XPS MANUFACTURING SECTOR – ACTIONS TAKEN Research on optimization of the CO2 and ethanol technology Use of carbonate nucleation agents in XPS foam production Testing of secondary expansion foaming and horizontal vacuum foaming Testing of alternative flame retardants Update of book on safe XPS production with CO2 technology Training workshops on safe XPS manufacturing Assist to achieve time-limited exemption for use of HBCD under the Stockholm Convention

RAC MANUFACTURING SECTOR - STATUS Demonstration projects on split units and compressor production HPMP stage I (2011 – 2016) 13 split lines converted 8 RAC and 3 compressor lines converted Standards for flammable refrigerants Research on risk assessment of leakage and performance optimization

RAC MANUFACTURING SECTOR -FUTURE HPMP stage II (2016 – 2021): 25 RAC manufacturing lines to be converted to R-290 or R-161 (include 5 lines heat pump water heaters to R-744) 4 compressor lines to be converted to R-290 or R- 744 Technical assistance to facilitate technology introduction and support for the conversions

RAC MANUFACTURING SECTOR - CHALLENGES Substantial growth since 2009 (equivalent to 64 % of the total RAC units production) Conversion projects require a commitment to phase-out equivalent R-22 production capacity Rapid growth of residential HPWH Restrictive standards Charge limitations Installation and after-sales service

RAC MANUFACTURING SECTOR -ACTIONS TAKEN Active cooperation with beneficiary industries on standards revision Research undertaken as part of HPMP on charge distribution; maximum leakage; compressor HX design How to handle larger A/C’s; i.e. larger than 2 TR? Installation initially through authorized service companies Informal after-sales still needs to be addressed

ASSISTANCE TO PU FOAM SECTOR Conversion of PU foam manufacturers (sandwich panels, block foam) Conversion of local systems houses Conversion of spray foaming companies Technical assistance to smaller PU foam manufacturers (other than spray foam)

PU FOAM PANEL MANUFACTURERS –PROGRESS 16 PU foam machines in West Asia 6 machines commissioned (2 conti, 1 disco, 1 block foam, 2 machines for RAC manufacturing) 6 machines waiting for installation and commissioning (2 conti, 3 discontinuos, 1 blockfoam)

PU FOAM PANEL MANUFACTURERS - CHALLENGES Compliance with national civil defense regulations Compliance with national building code standards Compliance with existing customs clearance procedures Competition with conversion to high GWP options (not supported by HPMP)

ASSISTANCE TO SYSTEMS HOUSES - STATUS 7 eligible systems houses in West Asia 2 consultation workshops in March 2014 and December 2014 Only one SH was ready for conversion Assistance for conversion to production of pentane pre-blended in polyol (on-going) 4 other SHs now ready for conversion to systems based on new low GWP blowing agents

ASSISTANCE TO SYSTEMS HOUSES - CHALLENGES Possible interventions Upgrading existing mixing devices with safety systems Provision of laboratory testing equipment Storage area temperature control (eligibility?) Cost effectiveness of available low GWP alternatives Synchronization of SHs conversion with conversion of their downstream clients Competition with systems based on HFCs and with imported systems with 141b

ASSISTANCE TO SPRAY FOAMERS - STATUS Numerous eligible spray foaming companies in West Asia Assistance in KSA delayed by the ExCom decision

ASSISTANCE TO SPRAY FOAMERS -CHALLENGES Eligibility of ICC for new low GWP alternatives (temperature control needed to control viscosity and shelf life of low GWP systems) Cost-effectiveness of systems based on low GWP blowing agents Competition with systems based on HFCs due to current price and availability Competition with import of pure/pre-blended HCFC- 141b in the West Asia region

SMALL PU FOAM MANUFACTURERS - STATUS More than 100 eligible small foam manufacturers in West Asia Assistance to be provided through local systems houses Technical support for technology transfer, funding of localized trials and testing

SMALL PU FOAM MANUFACTURERS - CHALLENGES Assistance to be provided separately for each systems house due to commercial sensitivity of information about SH’s clients Design series of training workshops for SHs and their clients Assist systems houses with pilot-scale facilities for demonstration of customized formulations based on low GWP blowing agents

OPPORTUNITIES Recently approved demonstration projects Demo project on use of HFO in the spray foam applications Demo project on HFO-based prototypes for window and packaged AC in KSA PRAHA-II will facilitate development of window A/C with R-290

Thank you for your attention!