Pioneering Natural Refrigerants: A Grocery Case Study

E360 Webinar • April 26, 2018 Speaker

Andre Patenaude, C.E.T. Director – Food Retail Marketing & Growth Strategy, Cold Chain Emerson

Andre is responsible for developing the North American marketing and strategy pertaining to Emerson’s food retail and chiller market. He was most recently responsible for Emerson’s global CO2 development. Andre has more than 34 years of industry experience in sales, marketing, training and business development of HVACR system architectures and applications with compression and component technologies.

2 Speaker

Tristam Coffin Director – Sustainability & Facilities Whole Foods Market

Tristam Coffin is the Director of Sustainability & Facilities for Whole Foods Market’s Northern California Division. Among his responsibilities, Tristam oversees the implementation of environmentally responsible programs and sustainable engineering initiatives for the 45 stores, regional office, distribution center, and 5 future stores that make up the company’s Northern California Region.

Mr. Coffin is a LEED Accredited Professional, expert in resource management and holds a broad array of environmental expertise in areas including refrigeration systems, distributed energy resources, and energy efficiency. He is also a member of the company’s Global Green Mission Leadership Team. Prior to being employed by Whole Foods Market, Mr. Coffin worked in alternative energy and transportation for the Transportation Research Center of Vermont as well as in natural sciences and advocacy in Yellowstone National Park, Montana. Mr. Coffin holds a Bachelor’s Degree in Environmental Studies from the University of Vermont.

3 Speaker

Drew Tombs President AHT Cooling Systems USA

Drew has been working in the Refrigerated Equipment business since 2007. It began with ATC Group, a family business with AHT Cooling Distribution Rights for products in the C- Store and Consumer Goods channels. In 2012, upon AHT Cooling Systems acquisition of ATC Group, Drew became the Co-President of AHT USA with a focus on Sales and Service Operations within the company. Drew’s experience has been solely focused on Plug and Play, Self-Contained models for the Supermarket and Convenience Store industry with a shift in product offering from our standard core products to Self-Contained, Propane based Store Systems.

In 2016, AHT USA began the process of planning and executing the ramp up of our 4th Facility in Charleston, SC. The organization transitioned to the new facility in March 2017 and began initial Vento Multi-deck assembly in April. In addition to our current staff, AHT USA expanding dramatically including key hires in Operations, Production, Store Planning, Field Installation and Service and Procurement.

Prior to his current role, Drew worked as a Vice President in the Marketing and Advertising industry in Atlanta GA. Drew is based in Charleston, SC.

4 Disclaimer

This presentation is intended to highlight changing developments in the law and industry topics. The law is frequently evolving and information and publications in this presentation may not reflect the latest changes in the law or legal interpretations. The statements and information provided in this presentation should not be construed as legal advice or legal opinion regarding any specific facts or circumstances, but is intended for general informational purposes only. The views and statements expressed during this presentation are the personal opinions of the presenter and do not represent those of Emerson Climate Technologies, Inc. or its affiliated companies. You should consult an attorney about your situation and specific facts and you should not act on any of the information in this presentation as the information may not be applicable to your situation. Although all statements and information contained herein are believed to be accurate and reliable, they are presented without warranty of any kind. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such use is free of patent infringement and are not recommendations to infringe on any patents. This presentation may not be copied or redistributed without the express written consent of Emerson Climate Technologies, Inc.

5 The Latest Global Regulations Governing R-290 Use

Andre Patenaude Director of Food Retail Marketing and Growth Strategy Emerson Full Circle for Natural Refrigerants

No ODP No ODP Low to Very Low GWP Today Very Low GWP HFOs & Natural HFO Blends Refrigerants R1234yf, R448A, R513A CO2, NH3, Propane

2005+ 1930s

HFC CFC R-404A, R-410A R-12 No Chlorine Chlorine

No ODP High ODP High GWP 1990s 1980s Highest GWP

HCFC R-22 Less Chlorine

Lower ODP; High GWP

Slide design compliments of AHT 7 Global Refrigerant Regulations Overview

CARB Rulemaking #1: CARB Rulemaking #2: Adoption of EPA’s SNAP Rules 20 and 21 SLCP Strategy to Reduce HFCs

Commercial Application GWP Limit Date • All refrigerant sales * 2,500 2020 • All refrigerant sales * 1,500 2024 • Non-residential refrigeration 150 2021 (> 50 lbs) • Non-residential refrigeration 1,500 2021 (20–50 lbs) • Chiller (refrig or AC) 150 2021 • AC (non-residential and 750 2021 residential) (2 or more lbs) • Sales ban on new and recycled • SLCP: Short Live Climate Pollutants

Findings - Federal • EPA did not have authority to regulate HFCs as ozone- depleting substances • HFCs are no longer delisted • Supreme Court Appeal is expected within 90 days of Feb. 5, 2018

8 Global Refrigerant Regulations Overview

F-Gas Europe (EU): effective May 20, 2014 Environment Canada Effective around April 18, 2018 Commercial Application GWP Date Commercial Application GWP Date Limit Limit Centralized Refrigeration - New 150 2022 Centralized Refrigeration systems – (was 1,500) 2,200 2020 - Except top side of cascade (>40kW) 1500 2022 (MT/LT racks) Self-Contained Refrigeration (Hermetic) 150 2022 Refrigeration – Condensing units 2,200 2020 Domestic Refrigeration 150 2015 Refrigeration – LT stand-alone 1,500 2020 Movable Room AC 150 2020 Single Split AC (<3kg of F-gas) 750 2025 Refrigeration – MT stand-alone (was 700) 1,400 2020 Stationary Refrigeration (<40kW) 2,500 2020 Mobile refrigeration 2,200 2025 Service (Unless Recycled or Reclaimed) 2500 2020 Chillers, refrig. and AC (was 700) 750 2025 Domestic refrigeration 150 2025

9 Refrigerant Properties

Refrigerant GWP Critical LEL UEL Ignition temp. Theor. sys. MT theor. cap. MT theor. EER (safety group) (AR4) temp. (°F) (% vol.) (% vol.) (°F) charge

R-404A (A1) 3922 161.7 Non-flam Non-flam Non-flam 100% 100% 100%

R-22 (A1) 1810 205.1 Non-flam Non-flam Non-flam 101% 113% 91%

R-134a (A1) 1430 213.9 Non-flam Non-flam Non-flam 62% 114% 85%

R-290 (A3) 3 206.1 2.1% 9.5% 878 88% 112% 39% • Refrigerant grade R-290 does not have odorant • R-290 heavier than air Safety Group Higher flammability A3 B3 Lower flammability A2 B2 A2L* B2L* No flame propagation A1 B1 Increasing flammability Increasing * Max burning velocity <=10 cm/s Lower toxicity Higher toxicity

Increasing toxicity

10 Perspective: Burning Velocity and Minimum Ignition Energy

Class 2L

Class 2 Class 3

11 Low-GWP Refrigerant Research

• AHRI Flammability Research Subcommittee (FRS) • Cross-functional team working on several projects related to flammability of low-GWP refrigerants

• ASHRAE and DOE sponsoring several studies

• Other Research taking place through NFPA, AHAM, Japan,

Goal: To Use Science-Based Information To Fill Gaps In Safety Standards

12 AHRTI Final Report June 2017 – Leaks and Ignition Testing of A2Ls

Key Learning out of this A2L Study

Similar Study on A3 ongoing Now!

For WebEx and Copy Of Report go to: https://goo.gl/6oLY6Z

13 The Global Refrigerant Standards and Codes ‘Process’ Revisions to Support 2L, 2 and 3 Refrigerants

Refrigerant Safety Standards Standards/Regulations Equipment Application Building & Other Codes Local Codes

Montreal Protocol IMC/UMC — International rd (GWP) UL 60335-2-40 3 Mechanical Code Heating and Cooling ASHRAE 15 (Developed State, County and City Equipment Safety for Commercial Developing) IRC — International Building Codes Refrigeration Systems Residential Code ASHRAE 34 UL 471 Commercial Refrigerators & IBC/IEBC — International Designation and Safety ASHRAE 15.2 Classification of Freezers Building Codes Safety for Residential Insurance Company Refrigerants Refrigeration Systems IFC — International Fire Rules UL 621 Code EPA SNAP Ice Cream Makers Flammable Significant New DOT Transportation Alternatives Policy Standards NFPA 1 — Fire Code Program ASME Section VIII Refrigerants Pressure Vessels U.S. Specific NFPA 101 — Safety Code Research ongoing Jan. 2018 2018–2021 2018–2029

International IEC 60335-2-40 6th B52 (Canada) Heating and Cooling Safety for Commercial Montreal Protocol Equipment Refrigeration (GWP) (Developed ISO-5149 IEC 60335-2-89 Developing) Safety & Environmental Commercial Refrigerating Requirements Local Building Codes? Appliances Country-Specific Building ISO-817 and Fire Codes Refrigerants — EN-378 IEC 60335-2-24 Designation and Safety Refrigerating Systems and Refrigerating Appliances, Classification Heat Pumps Ice-Cream and Ice Makers Insurance Company Rules Country Regulations Pressure Vessel Standard GHS Transportation (i.e., Switzerland, (PED, JIS, etc.) Standards Australia Source: Richard Lord, UTC Building & Industrial Systems 14 Summary Regarding Charge Limits — Now and Proposed

Refrigeration Air Conditioning  UL471 (commercial refrigerators and freezers, incorporated or remote) – UL1995 (heating and cooling equipment), UL 1995 merging into UL2-40, 2020 new products, 2022 all products. • A2/A2L – 500g max. (17.7 oz) – UL 1995 being phased out; 2020 new products, 2022 all • A3 – 150 g max. (5.3 oz) products. Will be replaced by UL 2-40.  UL60335-2-89 (particular requirements for commercial refrigerating • A2/A2L – not allowed appliances with an incorporated or remote refrigerant unit or compress) • A3 – not allowed UL471 merging into UL2-89 in 2020 new products, 2022 all products (particular requirements for electrical heat  UL471 by 2022 for all products will be replaced by UL 2-89. – UL60335-2-40 pumps, air conditioners and dehumidifiers) • A2L: 150g now, 1.2 kg being proposed, A3: 150g now, 500 grams being proposed • A2/A2L/A3 — Based on room size calculations and • Now, charges larger than 150g, use ISO5149 mitigations used – UL: 3 kg for A2Ls, 114 grams for A3s  UL60335-2-24 (commercial refrigerating appliances ; ice makers and ice cream appliances) – IEC is aiming for: ~60–80kg A2Ls and 1 kg A3s • The second edition increased flammable refrigerants – UL484 (room air conditioners), merging into UL2-40, 2020 new from 50g to 150g to harmonize the IEC products, 2022 all products. • Based on room size calculations  UL250 (household refrigerators and freezers) (5/4) • A2 – 225g (8.0 oz.) A3 – 50g (1.7 oz.) – Amin = (M/(2.5 X(LFL) X h0)) – UL1995 (heating and cooling equipment) NOTE: • Refrigeration condensing units use UL471 Flammable refrigerants are only allowed for new equipment, not retrofits, because OEM design modifications will be needed. 15 Training: https://www.rses.org/store/item.aspx?ItemId=2344

Latest Training Manual includes R-290, R-600a, R-441A and also introduces A2L refrigerants

The online course and test can be accessed by anyone (membership not required) via the RSES website rses.org under the “eLearning” tab.

Discounts for contractors with more than 10 technicians are available. 16 Holistic Facility Approach to Equipment Selection Can Minimize “Unintended Consequences”

Key Variables Stakeholders Trends Toxicity, Lack of technicians, flammability, Legal, performance specs and Equipment working operations service contracts pressures

Utility incentives, Heat transfer, Energy mgr. continuous Energy latent heat design eng. commissioning, integrated HVACR

Revenue, CEO, first cost, total Millennials, fresh, urban merchandising, Economics cost of stores finance ownership

CO2 emissions, Sustainability Natural refrigerants, Environment climate change officers regulations

17 Drivers Behind Whole Foods’ Natural Refrigerant Strategy and R-290 Adoption

Tristam Coffin Director – Sustainability & Facilities Whole Foods Market Whole Foods Market & Natural Refrigerants

• Breakdown – 473 stores total – 25 stores utilizing naturals – 15 stores utilizing all natural refrigeration systems – 1 store all natural – synthetic free (R/HVAC)

– 1 store retrofit to natural (low-temp DX CO2) – 100+ stores with self-contained R-290 cases • Objectives – Refrigerant Reduction (GreenChill Partner with 10 Platinum, 5 Gold, and 6 Silver Certifications) – Energy efficiency and overall reduced consumption – Stable System Operation – Reviewing all options available – Different climate zones and building types may call for different solutions

19 Santa Clara Design Initiatives

• Sustainable refrigeration solution

• State of the art and first of its kind system architecture

• High-efficiency and safe design

• Reliable monitoring, alarming, and control of mechanical systems

• SNAP (Significant New Alternatives Policy) test market & industry proving ground

20 Santa Clara Refrigerant Types

Refrigerant Name Refrigerant Number Total Quantity in Design

Carbon Dioxide (CO2) R-744 1600 lbs.

Propane R-290 265 lbs.

The R-290 refrigerant is used in a “chiller,” and there are seven independent chillers located on the roof. Each chiller is a sealed system.

The R-290 chiller is responsible for cooling the high temperature CO2 gas. This sustainable design optimizes efficiency and improves refrigeration performance.

21 Santa Clara Design

The below outline displays the independent R-290 chillers coupled via a heat exchanger to the CO2 system. Independent R-290 chiller

22 Santa Clara R-290 Design

23 Santa Clara R-290 Design

24 Santa Clara R-290 Venting

Venting of the R-290 Chiller: Preventing the accumulation of R-290 in case of a leak event

Vent side-grills 8” off-the-ground base

Mesh floor

25 Santa Clara R-290 Safety-Related Features

Pressure safeties of the R-290 Chiller:  Electromechanical: Compressor high pressure safety Pressure ≥ 333 psi = compressor is de-energized  Control System: High pressure bypass safety Pressure ≥ 390 psi = high pressure discharge gas is dumped in the suction  Electromechanical: High pressure disk safety Pressure ≥ 400 psi = ruptured disk = alert to service technician of high pressure occurrence  Electromechanical: High pressure relief valve Pressure ≥ 450 psi = pressure relief valve opens  *Flare Device: Pressure reliefs tied to flare stack Smoke and heat sensors crossed zoned to trigger automatic release and flare

26 Santa Clara R-290 Safety-Related Features

Leak safeties of the R-290 Chiller, respecting Section 606 of the CFC. R-290 ppm LFL (Lower Flammability Limit): 21,000

Leak detection: Each R-290 Chiller is equipped with a leak detection and shutdown system Leak detection relays: Each R-290 Chiller is equipped with two relays that will cut all chiller operational components upon a critical leak detection Leak detection strategy: • At 100 ppm, a notification is displayed in the control system • At 2500 ppm, an alarm is produced and the alarm is sent via email • At 5000 ppm, the entire chiller is shutdown via the leak detection relays

27 Self-Contained Systems

• Benefits R404a R-290 Self- – Very low charge System Type Traditional Contained – Very low leak rates DX – Merchandizing flexibility Refrigerant Charge 110 2,500 – Reduced install and maintenance costs (lbs.) – Energy savings 30-50% over baseline Leak rate 2% 15% • Challenges – 150 gram limit = Refrigerant GWP 3 3,800

Annual Leak (CO2 eq) 7 1,425,000

28 Lessons Learned

• Custom systems, regardless of design, come at a premium, but standardization & wider adoption is driving costs down • Controls collaboration and commissioning are key • Collaborative design/implementation – who drives the process (OEM, EoR, Owner, Installer)? • Authority Having Jurisdiction (AHJ) Engagement • Natural Refrigerant Accessibility • Contractors/technicians are becoming more comfortable, but training is still very necessary • Safety – procedures, contractors, store personnel • Industrial vs. commercial applications • There are plenty of natural refrigeration system options • There is no silver bullet based solely on energy usage, or is there? • The higher the ambient, the higher the energy use • Anticipated energy penalty doesn’t apply – TEWI tells an interesting story

29 An OEM Perspective On Making R-290 the Basis of Its Stand-Alone Units

Drew Tombs President AHT Cooling Systems USA Global Self-Contained Propane Leader

• Global leader of Plug-in modular HC cases

• Early 1990’s started research of natural refrigerants

• 1997 first supermarket installation with propane

• 2002 started serial production with propane

• 2015 first complete market using propane – Single circuit cases with up to 700g charge in EU

• Over 1,000,000 propane cabinets globally

• Over 20,000 propane cabinets in North America

• Over 50 stores with more than 50% of their refrigeration with propane

31 Factories in , China, , and USA

AUSTRIA CHINA BRAZIL USA

Environment Management Quality Management Safety & Health Management Social Accountability According ISO 14001:2004 According ISO 9001:2008 According OHSAS 18001 According SA 8000

32 AHT USA - Facility

142,000 ft2 production facility including assembly, raw materials, spare parts, QA testing, and finished goods warehouse

33 Supermarket Refrigeration

Remote Systems: External Aggregates with Refrigerant Machinery Room Required (Place, noise, fans, AC)

High Amount of Refrigerant (Long lines) Additional piping to all cabinets (Mostly in floor  not flexible)

High Leakage Rate (High pressure, a lot of soldering points)

34 Supermarket Refrigeration

AHT “Green” Plug-In Solution:

Plug-In Multidecks with Integrated Cooling Circuit (Only 2 interfaces: power supply and defrost water drain)

Optional Heat Removal via water pipes on the multidecks

Optional External Plug-in Unit for Heat Removal (For “warm” stores; contains no refrigerant or compressors)

Plug-in Deep Freezers (Require only power supply)

35 Green Refrigeration – The AHT Way to Go

“Green” Key Features of the AHT Technology:

• Environmentally Friendly • Hermetic cooling circuit – each unit is manufactured on highest standards • Very low energy consumption

• Future Proof Technology • Main focus on natural refrigerants • Cutting-edge components • Connectable to store management systems

• Holistic Applications • The AHT technology is suitable for a broad field use

36 HC’s – The AHT Experience

AHT is the “green” pioneer – R&D with Natural Refrigerants Since the 1990s:

• Very early focus on natural refrigerants • Exploring and understanding all benefits of natural refrigerants • Implementing of all necessary capacities (legal, technical, and intellectual)

• Seek, find, and use of manageable and save technologies • Step 1: Ice cream chests and bottle coolers (R-600a) • Step 2: Supermarket units (R-290) • Step 3: Refrigerated shelves (R-290, multi-circuit)

37 HC’s – The AHT Experience

AHT is the “green” pioneer – R&D with Natural Refrigerants Since the 1990s:

• Initial doubts and concerns from the market • No long-lasting operation experience in the commercial use • Fear of fire hazards • Health issues

• Different legal foundations • Flammable • Limited filling capacities per cooling circuit (150g-rule)

• Availability of R-290 and R-600a in service and maintenance issues We faced the challenge – successfully!

38 HC’s – The AHT Experience

AHT is the “green” pioneer – R&D with Natural Refrigerants Since the 1990s:

• Very high acceptance in the markets throughout Europe, including , Austria, and Switzerland • Increasing awareness of “green” topics in supermarket refrigeration • Gradually higher customer demand of alternatives to existing and “dirty” systems • Sustainability and “Green Thinking” as market drivers

• Influence from different public and non-government stakeholders in the region • F-Gas-Regulation • Governmental initiatives (ProCool) and incentive programs • Awareness-raising (Greenpeace and other NGOs) • EU-Initiatives

39 Factory Sealed and Tested – Differentiating

Average Supermarket Remote System • 3,000 lbs. of HFC refrigerant • 20% leak rate • GWP of 2,000 – 4,000

Average Supermarket Self-Contained R-290 System • Over 70% less charge than remote • O to less than 0.25% leak rate • GWP of 3 • Minimal maintenance • Flexible • Easy to install and start-up Triple Solution: • No ODP • No GWP • Minimal TEWI

40 Store Remodels or End of Life Replacement

• Portable units can be relocated within store easily

• Cases can be moved to surplus or different stores very easily

• Reduces permitting and engineering timelines

• Easier to make “on the fly” changes to merchandising layout during remodel timeline (sometimes 6-9 months)

• No need to install cases with obsolete refrigerants to match existing racks

• Enhanced phasing for capital planning • Run existing systems / cases to EOL • Replace cases as they “retire” vs entire system

• Allows phase out of complicated EMS Systems • On Board Controls vs re-programming into existing EMS Systems

41 The AHT Advantage

• Factory Sealed, Charged, and Tested • Low Charge (<1 lb. / case, 70% < remote) • Little chance of leak (<1%) • Low maintenance • Eliminate loss of entire runs • Minimize / reduce product loss / shrink • Reduce carbon footprint • Eliminate reporting • High storage capacity • Flexibility • Allows for easy expansion / addition • Eco-friendly / efficient solution • Quiet • Plug all equipment into CMS • Future-proof

42 Thank You!

Questions?

DISCLAIMER Although all statements and information contained herein are believed to be accurate and reliable, they are presented without guarantee or warranty of any kind, expressed or implied. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments, and the user assumes all risks and liability for use of the information and results obtained. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such use is free of patent infringement and are not recommendations to infringe on any patents. The user should not assume that all toxicity data and safety measures are indicated herein or that other measures may not be required.

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