1. Ammonia – Good for Business Great for the Environment Bruce Badger, President International Institute of Ammonia Refrigeration

2. The Business Decision The refrigeration system is a utility service for cold stores, food processors and other industrial users. It is not the primary focus of their business. The refrigeration system is a utility service for cold stores, food processors and other industrial users. It is not the primary focus of their business. Mandate: lower the cost of operation. Mandate: lower the cost of operation. –Most efficient refrigerant = ammonia –Lowest cost refrigerant = ammonia –Lowest leak rate = ammonia

3. The Environmental Decision Reduce environmental impact of business operations Reduce environmental impact of business operations –Select the lowest Global Warming Potential refrigerant = ammonia –Select the lowest Ozone Depleting refrigerant = ammonia

4. Other Considerations (costs) Regulatory Compliance – meeting the obligations for refrigeration system design, operator training, operator certification, refrigerant charge limitations, reports, registrations (filings) Regulatory Compliance – meeting the obligations for refrigeration system design, operator training, operator certification, refrigerant charge limitations, reports, registrations (filings) Sustainability – investment in refrigeration that will continue to be efficient and compliant with regulations for the life of the facility Sustainability – investment in refrigeration that will continue to be efficient and compliant with regulations for the life of the facility

5. Case Study A 150,000 sq. ft. (13935 m2) Central ammonia system VS multiple split halocarbon R-507 system. The distribution center was assumed to be new construction

6. Case Study Considerations Initial Construction Initial Construction Energy and Operating Costs Energy and Operating Costs Maintenance costs Maintenance costs Major Component Replacement Costs Major Component Replacement Costs

7. Simple Payback Initial cost difference – –$ 2,100,000 – $ 1,892,000 = $ 208,000 Operational Cost Difference – –$ 453,663 – $ 329,825 = $ 123,838 Simple Pay-Back – –$ 208,000 first cost difference – –$ 123,838 annual savings =1.68 years

8. 20 Year Life Cycle Comparison Initial Construction Cost Difference – –$ 2,100,000 (Ammonia) – $ 1,892,000 (Halocarbon) = $ 208,000 Total 20 Year Operational Cost Difference – –$ 11,282,147 (Ammonia) – $ 16,161,757 (Halocarbon) = – $ 4,880,610 Investing an extra $208,000 in construction costs results in a $4.88 Million savings over 20 years.

9. Sustainable Benefits Self-alarming odor helps to detect leaks and minimize emissions. Low replacement cost Requires less primary energy to produce a given refrigeration effect than other common refrigerants (highest coefficient of performance) Naturally occurring green substance – –No potential for ozone depletion (Ozone Depletion Potential = 0) – –No potential for direct global warming impact (Global Warming Potential =0)

10. Detailed Case Study Available www.iiar.org