1. The Cold Economy “Doing cold smarter” Professor Toby Peters Visiting Professor in Power and Cold Economy, University of Birmingham Founder & CEO, Dearman t.peters@bham.ac.uk

2. 70% of food is chilled or frozen when produced in UK, Europe 50%+ of a data centre energy demand is for cooling load Refrigeration and air conditioning cause between 7% and 10% of global CO 2 emissions Global air conditioning load projected to grow 33 times this century Lack of cooling costs UK €15.7bn in lost productivity per year 2M die per year from lack of cold chain for vaccines Why Cold Matters?

3. Emerging Markets – Two Extremes 40% of food is lost post-harvest If developing countries had same level of cold chain as UK, could save 200M tonnes of perishable food. Asian Pacific middle class could grow six-fold to 3.2 billion in 2030, two thirds of the global total, and its spending power could rise from $5 trillion to $33 trillion.

4. A transport refrigeration unit: consumes up to 20% of a refrigerated vehicle’s diesel can emit up to 6x as much NOx and 29x as much PM of Euro VI engine produces significant amounts of CO 2 uses HFC refrigerants – leaks up to 30% of their total refrigerant charge each year Why Clean Cold? Transport

5. By 2050, food production globally will need to increase by 70% to feed our growing population By 2050, 66 per cent of the world’s population is projected to be urban; adding 2.5 billion people to the world’s urban population by 2050. The number of transport refrigeration units on the road by 2030 could emit the same amount of pollution as would be created by more than 800 million diesel cars. Why Clean Cold? Transport

6. Developing country aircon energy consumption to rise from 300TWh today to 10,000TWh in 2100. Global space cooling to consume more energy than global space heating by 2060 and 60% more by end of century – heat remains flat. Why Clean Cold? Built Environment

7. Spend on research The European Commission estimates that the demand for cooling in buildings in the EU will increase by more than 70% by 2030. In the EU we currently spend just 0.22% of our total engineering research budget on cooling

8. BP Energy Outlook 2016 Renewables will be the fastest growing energy source over the next twenty years, expanding by 6.6% per year Energy intensity will fall by more than 2% per year, significantly faster than ever before.  Yet emissions still grow by 20% to 2035, as falling carbon and energy intensity are overwhelmed by economic growth with energy consumption increases in the fast- growing emerging economies.  In fact the report states that to prevent energy demand rising over the next 15 years, “energy intensity would need to decline on average by 3.5% p.a. This is far faster than any 20-year rate of decline experienced since at least 1965 (and probably far longer) and more than double the average rate of decline seen over the past 20 years.”

9. Cold Economy – a Systems Approach to Cooling There is a need to re-shape the way we address cold needs Cold demands are embedded in final energy demands for various sectors We are still thinking electrons, we need to think cold We do not think about waste cold It is crucial that the primary energy demand for providing cold does not grow at the same rate as cold demand itself.

10. Making cold Harness waste/unused resources e.g.: ‘wrong time’ renewable energy (e.g. wind), waste cold (e.g. LNG) ambient heat & cold (e.g. ground source) Storing cold Thermal energy storage to warehouse Moving cold New energy vectors and material to shift cold Using cold Reduce cold loads Increase efficiency and reduce GWP of conventional technologies New technologies to harness new stores and vectors Managing cold Monitoring, controls and management A New Integrated System Approach to Cold

11. The Value of the Cold Economy and ‘Doing Cold Better’ Need to ‘do cold better’ Financial savings through rational use of resources Economic growth through step-out innovation Environ- mental improve- ments Growing demand/ need for cold services Features of the Cold Economy include: A service-oriented perspective An energy system view that incorporates cold flows Greater integration between waste cold resources and cold needs Liquid air and other technologies as a means of storing cold and meeting cold needs Benefits of the Cold Economy include: Meeting cold needs in a more resource efficient way Energy resilience Environmental benefits including reduced GHG emissions and improved air quality Lower overall cost New business opportunities and jobs

12. We need to store renewable / waste energy to use on demand in grid or transport applications Liquid air is about storing cold and power Mature industry Rapid filling of liquids through pressure and pumped systems Distribution is through pipeline or road tanker Why liquid air?

13. Liquid Nitrogen Supply UK has 2,000 tonnes a day of spare capacity with good distribution to major cities Top 10 European markets have enough spare capacity for 70,000 vehicles

14. Liquid air supply UK has 2,000 tonnes a day of spare capacity with good distribution to major cities India has 3,500 tonnes a day

15. Dearman Engine - an enabling technology Deliver clean Cold & Power wherever required

16. Auxiliary power and air-conditioning Back-up power and energy services Heat Hybrid Engine Waste heat recovery from internal combustion engine of large vehicles to increase overall efficiency Well suited to vehicles in frequent stop start operation e.g. buses Payback of around 1.5 years in some duty cycles Efficient cooling of bus/trucks Particularly suited to warmer climates, where it could reduce fuel consumption by ~37% Integrates with both conventional buses and the growing electric bus market Projected payback of 6 months for buses Provision of zero emission cooling and back-up power and/or power-on-demand Aimed at refrigerated buildings, data centres and supermarkets (sub 1MW market) Payback of 2 to 3 years without subsidy depending on usage patterns Transport Refrigeration Zero emissions at the point of use; Lower CO 2 footprint; TRU uses 20% of the total diesel of the vehicle Better functionality Cheaper to run, saving upwards of £1,000 operating cost per vehicle per year. Future applications may include provision of combined zero-emission cooling and propulsion, especially last mile delivery vehicles or mining applications Dearman

17. Source: GIIGNL, The LNG Industry in 2013 Global LNG regasification capacity & utilisation Harnessing waste cold Existing LNG regasification capacity is significantly under- utilised. Liquid air can serve as an intermediary between cold sources and needs. Liquid air de-couples the requirement for cold sources and needs to coincide… Liquid air also brings flexibility as it can find uses in multiple static and transport cooling applications. 31

18. The Cold Economy

19. UK Government Attitude The UK government supports liquid nitrogen technologies because they believe in its ability to: Achieve air quality and CO 2 improvement with less state intervention Offer a strong business case for deployment in a range of applications Fuel and operating cost savings available to UK companies Enhanced energy security – liquid nitrogen offers the opportunity to store waste and wrong time energy for use in transport and energy network applications Exploit UK capabilities in mechanical engineering and low temperature systems. Create jobs and export revenues Support demonstrated through ~£40m of government funding to date

20. Energy Research Accelerator Policy Commission – “Doing Cold Smarter” Government committed £60M to Phase 1 of ERA with Midland University hub; develop thermal technologies including cooling Productionisation and Manufacturing Market focused skills base UK hub with integrated demonstration Research pipeline incl. integrated systems A key objective of ERA is to develop a technology roadmap for cooling technologies.

21. Clear challenges Create a coalition of partners from the technology innovators, academic, public, for-profit and not-for-profit sectors to work together to accelerate new science through demonstration, validation and manufacture to deliver workable products into the global market. Think about how to deliver robust and adequate size test beds for validation and to secure customer confidence Along with building competitive manufacturing upstream, also develop great marketing, sales, service and after sales channels downstream. Train the people a radical new innovation needs from manufacture to assembly to after-sales service ahead of, not after, the sales and deployment curve

22. For further information, Professor Toby Peters Visiting Professor in Power and Cold Economy, University of Birmingham Founder & CEO, Dearman t.peters@bham.ac.uk