1. Refrigeration Regulations, Outlook, Transitions & Alternatives Charles Allgood, PhD Senior Technical Service Consultant DuPont ISCEON® Refrigerants ASHRAE Meeting 11 November 2008

2. 11 Nov 2008 2. 59 WEEKS LEFT

3. 11 Nov 2008 3. Agenda Regulatory – Clean Air Act Business Outlook – Managing the R22 phase out Transition – Options and Alternatives Call to Action – The time to act is now

4. 11 Nov 2008 4. R-22 is going away Important Facts 1.62% Supply Reduction Jan 2010 2.2010 demand matches supply  no room for supply error 3.2015 demand exceeds supply by more than 22 Million pounds

5. 11 Nov 2008 5. Compliance Requirements of the Clean Air Act For Systems Containing 50 lb. + Refrigerant Charge Size A 35% Maximum Leak Rate for Refrigeration, 15% AC Maintain Accurate Records When Adding Refrigerant Refrigerant Addition Determines Leak Rate For Example: Top off a charge with 3% refrigerant, if only 30 days since last service this equates to a 36% leak rate Equipment owners legally responsible for maintenance/records but most look to their service contractors for assistance

6. 11 Nov 2008 6. Penalties for Violating the Clean Air Act Equipment Owners: (Example: Supermarkets) Recordkeeping Violation $32,500/day Maximum Fine Leak Rate Violation $32,500/day Maximum Fine Up to $65,000/day Producers and Importers: (Example: DuPont) Consumption Allocation Violation $32,500/kilogram $1.8 Million per 125/lb cylinder of R-22

7. 11 Nov 2008 7. Clean Air Act: Summary of Impacts HCFC supply demand imbalance is likely in 2010 Potential implications of doing nothing: Interruptions to business if R-22 is not available Uncertainty of R-22 price behavior Cost / Availability of retrofit labor Unplanned changes to Maintenance and Remodeling budgets

8. 11 Nov 2008 8. Six R’s for Refrigerant Management Recordkeeping Repair leaks Recover / Recycle Reclaim Retire old equipment; Specify new equipment with Non Ozone Depleting refrigerants Retrofit existing equipment to Non Ozone Depleting refrigerants

9. 11 Nov 2008 9. The Business Case for Switching Out R-22 R-22 is going away 62% Reduction in supply January 1, 2010, R-22 demand is strong “Advanced” Refrigeration is Expensive per Ton CO2e i.e. Secondary Loop Technology Retrofit Refrigerants offer the Lowest Total Cost Invest precious resources in higher ROI actions Retrofits provide a low cost supply of R-22 R-22 Prices in the future likely to be volatile Over 500% price increases in R-22 since January 2003

10. 11 Nov 2008 10. R-22 Prices in the future likely to be volatile R22 prices have increased more than 500% since January 2003

11. 11 Nov 2008 11. Managing the Transition The Value Delivered by Retrofits Refrigerant Options and Performance

12. 11 Nov 2008 12. How Retrofitting Delivers Value Supermarket Example: Replace refrigeration equipment ~ $250,000 / Rack Retrofit refrigeration equipment ~ $13,000 - $35,000 / Rack Use reclaimed R-22 to service another store for ~ 5 years Retrofitting early can help ease potential labor shortage

13. 11 Nov 2008 13. Leading Retrofit Refrigerants for R-22 R-422D and R-422A RefrigerantComposition R-422DHFC-125/HFC-134a/HC-600a (65.1/31.5/3.4) R-422AHFC-125/HFC-134a/HC-600a (85.1/11/5/3.4) R-422D preferred for R-22 systems (no TXV changes likely; Engineering Assessment recommended) R-422A is preferred for R-502/R-402A/R-408A systems (no TXV changes likely); also can be used for low temp R-22 systems (TXV change needed) Advantages: Easy to use Reliable Cost-effective Non-ozone-depleting Compatible with mineral, alkyl benzene and polyol ester lubricants; hydrocarbon aids oil return of mineral oil Provides similar system performance

14. 11 Nov 2008 14. Refrigerant Safety/Environmental Properties ASHRAE Refrigerant:ODPGWP (SAR 100yr.)Safety Group R-220.0551500 A1 R-422D 02232 A1 R-422A 02532 A1 R-404A 03260 A1

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16. 11 Nov 2008 16. Evaporator Pressure vs Evaporator Temperature (based on 105°F Condenser, subcool liquid to 95°F) 0 20 40 60 80 100 120 -30-20-1001020304050 Average Evaporator Temperature (°F) Evaporator Pressure (psia) R-22 R-404A R-422A R-422D

17. 11 Nov 2008 17. Summary of Calorimeter Data with 10ºF SC *Results with reciprocating compressor. Represents performance based on compressor capacity only; does not include heat transfer effects, etc. R-22 assumes liquid injection at low temp. No liquid injection for R-404A, R-422A, or R-422D. Cooling Capacity vs R-22 EER vs R-22 Low Temp (–25º/105ºF) R-404A +33% +15% R-422A +29% +13% R-422D +8% +14% Med. Temp (+20º/120ºF) R-404A +7% -3% R-422A Same as R-22 -7% R-422D -5% Same as R-22

18. 11 Nov 2008 18. Summary of Retrofit Procedures 1.Establish Baseline Performance with Existing Refrigerant & repair if necessary 2.Remove Existing Refrigerant from System 3.Replace Filter Dryer, Elastomeric Seals/Gaskets, & Other Equipment/Components Identified in Preplanning (Ball Valves, Schrader Cores, TXV’s, etc.) 4.Evacuate System and Check for Leaks 5.Charge with R-422D or R-422A (Remove liquid only from cylinder) 6.Start up System and optimize performance (adjust TXVs, refrigerant charge, etc.) 7.Monitor oil levels to maintain desired level in oil reservoir 8.Label System for R-422D or R-422A

19. 11 Nov 2008 19. Discharge pressure (psi) +10 - low temperature* +12 - medium temperature** Discharge temperature (°F) -31 - low temperature* -66 - medium temperature** Estimated cooling capacity (%) +8 - low temperature* -5 - medium temperature** Estimated EER (%) +14 - low temperature* same - medium temperature** *low temp: -25°F evaporator; 105°F condenser; 65°F return gas; 10°F subcooling. **medium temp: -20°F evaporator; 120°F condenser; 65°F return gas; 10°F subcooling R-22 assumes liquid injection at low temp *** Based on thermocycle model calculations and calorimeter data. Actual results may vary due to system design and operating conditions. What to Expect After Retrofit from R-22 to R-422D ***

20. 11 Nov 2008 20. R-422D Retrofit from R-22 - Medium Temp Rack (NE US Supermarket) Energy Consumption 200 300 400 500 600 700 800 7/27/127/228/18/118/218/319/109/209/3010/10 Date Compressor kWh/day 0 10 20 30 40 50 60 70 80 90 100 Temperature (°F) Compressor kWhAmbient T Retrofit 8/20-8/21/06 No TXV Change No Oil Change R-22R-422D Comparable Energy Consumption for MT

21. 11 Nov 2008 21. R-422D Retrofit from R-22 - Medium Temp Rack (NE US Supermarket) Compressor kWh vs Ambient T 0 100 200 300 400 500 600 700 800 0102030405060708090100 Ambient Temperature (°F) Compressor Energy Consumption (kWh/day) R-22 kWh R-422D kWhPoly. (R-422D kWh)Poly. (R-22 kWh) Comparable Energy Consumption With R-422D

22. 11 Nov 2008 22. R-422D R-22

23. 11 Nov 2008 23. Total Energy Consumption R-422D vs R-22 Low and Medium T (SW US Supermarket) 7500 4045505560657075808590 Ambient Temp (ºF) kWh/day R-22 R-422D

24. 11 Nov 2008 24. Retrofit Cost Example 4 Rack Store with 1.49M Btu/hr load (35% LT/65% MT); 50 TXV/rack Charge Size = 3000 lbAssume 20% annual leak rate Electric Cost = $0.10/kwh EER ((BTU/Hr)/Watt) based on Calorimeter Data at 80°F Condensing R-22R-404A R-422D Low Temp 6.09* 6.28 6.34(-25°F Evap/70°F Liq/65°F Return) Med Temp15.68 15.68 15.52(20°F Evap/70°F Liq/65°F Return) * Liquid Injection used to control discharge T of compressor at 230°F POE Oil Change for R-404A 100% TXV change for R-404A; assume 10% TXV change for R-422D

25. 11 Nov 2008 25. Retrofit Cost $45K Retrofit Cost $14K

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27. 11 Nov 2008 27. Summary – Supermarket Retrofits R-422D is an excellent supermarket retrofit refrigerant option in US R-422D has higher capacity and efficiency than R-22 in low temperature applications; comparable efficiency in medium temperature applications No powerhead change needed with R-22 retrofits to R-422D; likely no TXV change, but need System Analysis to verify post-retrofit TXV loading is adequate Lower Retrofit Cost than R-404A (~$30K savings in typical four rack store) Smaller Carbon Footprint than R-404A (30% lower in typical four rack store) R-422D and R-422A used successfully in supermarket refrigeration systems Low and medium temperature refrigeration Multiple rack and case manufacturers Multiple compressor manufacturers R-22 and R-502 equipment Over 1500 retrofitted systems throughout the U.S.

28. 11 Nov 2008 28. R-22 Alternatives (Air Conditioning Equipment) R-410A R-407C

29. 11 Nov 2008 29. R-410A - General Information Components Composition (wt%) UL Recognized ASHRAE NO. Safety Designation Capacity (Rel to R-22) Efficiency (Rel to R-22) Application R-410A R-22 HFC-32/HFC-125 50/50% Yes R-410A A1 1.4.95 to 1.05 New design only HCFC-22 100% Yes R-22 A1 1.0 --

30. 11 Nov 2008 30. Operating Characteristics R-410A is a “near azeotropic” blend. Temperature “glide” is less than 1 F (0.5C) and is NOT a factor. Leaking R-410A systems can be “topped off” with more R-410A without removing the charge. R-410A should be removed from the cylinder as a liquid.

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33. 11 Nov 2008 33. Suva® 410A Cylinder Design R-22 DOT #39 (DAC) Service Pressure 260 psig Test Pressure 325 “ Burst Pressure 650 “ RV 341 - 520 R-410A DOT #39 (400) Service Pressure 400 psig Test Pressure 500 “ Burst Pressure 1000 “ RV 525 - 800 Do not store ANY refrigerant cylinder above 125ºF.

34. 11 Nov 2008 34. R-410A in AC/Heat Pumps Discharge pressure: + 50 to 70% Capacity: + 40% Discharge temperature: -10F 12 to 14 SEER meets- DOE guidelines Wall thickness increased: compressor, accumulator, cond. tubes, filter drier, reversing valves POE lubricants

35. 11 Nov 2008 35. R-410A - Market Activity OEMs US, Japan and Europe Residential primarily; some Lt. Commercial Benefits vs. 407C: more capacity/smaller package better efficiency Preferred choice by many OEMs OEM use increasing Aftermarket Growing

36. 11 Nov 2008 36. R-410A - Service Equipment Manifold gauge sets R/R equipment FT FM3600-410A; Promax RG-5410 Recovery cylinders DOT 4BA400; 4BW400

37. 11 Nov 2008 37. Summary: R-410A Safe, non-flammable refrigerant Can top off leaks with no noticeable performance change Best performance achieved if removed from cylinder as a liquid High energy efficiency possible R-410A: new equipment only

38. 11 Nov 2008 38. Conclusions R22 is going away The time to act is now Develop a Refrigerant Management Plan Survey Equipment, ID units operating on HCFC’s Know how equipment performs vs. regulatory requirements Develop plan for change out of HCFC’s - consider age and history of equipment - also remodel/shutdown/operation plans