Natural Alternatives for the Industrial Marketplace

Newark, N.J., August 24, 2016

Andre Patenaude C.E.T. Antonio De Lourdes

Director – CO2 Business Development Senior Project Engineer (R&D) Emerson Climate Technologies Vilter Manufacturing, Emerson Climate Technologies Agenda

Why invest in natural ?

Ammonia applications

Key industrial trends

CO2 system architectures

Strategies for warm ambient operation

Summary Why Invest in Natural Refrigerants? Low-GWP Refrigeration?

Step 1: Elimination of -depleting refrigerants (CFC and HCFC) Step 2: Phase-down of global-warming refrigerants (HFC)

Step 3: Ramp-up of CO2 commercial refrigeration equipment

Step 1, completed: Step 2, ongoing: Step 3, ongoing: Thinning of the global warming damage natural refrigerants

caused by CFC and HCFC caused by HFC CO2, , (banned) (phased down / usage bans) (ramping up)

CFC = HCFC = Hydrochlorofluorocarbons HFC = Aggressive European Measures to Reduce and Eliminate HFCs

R-404A Equivalent Threshold vs. CO2

GWP of 3,922

8 oz of R-404A = Global Regulations Confusing Time for End Users 2015 Was Warmest Year Since 1880, – USA Today Article, 1/20/16

• COP21 Meeting in Paris, 12/2015 • Nations agreed to limit global temperature increase to 2 °C • Countries to update reduction pledges by 2020

This means reducing emissions by 40–70% by 2050 compared to 2010! U.S. Environmental Protection Agency (EPA)

• Slide from Tom Land, U.S.EPA, ATMOsphere America, June 17, 2016 Alternatives for Refrigeration Applications

A1 – Non-flammable A3 – Flammable Qualitative; not to scale B2L – Toxic, mildly flam. Pressure A2L – Mildly flammable or capacity CO2

R-446A, R-447A, ARM-71a R-410A R-32/HFO 400-675 R-32 like Blends R410A R448A R-444B = L20 R449A R404A L40, DR7 R449B R22 R507A NH3 ~300 ARM-20b R-404A & R407A <150 R32/HFO Blends < 1500 R-407/22 R407C R32/HFC/HFO (3922) like R-455A (HDR110) R407F, R452A = XP44 R290 DR3 Blends ARM-35 ARM-20a

R-515A R-134a HFO 1234yf HFC/HFOR450A = N13 ~600 like HFO 1234ze Blends R513A = XP10 ARM-42 R134a R-123 like DR2, N12, ARC 1 (v. low pr.) 0 500 1,000 1,500 2,000 GWP level System Architecture Landscape

HFC or natural HFC and/or natural booster / high stage CO2 (no CO2) (no CO2) CO2 subcritical system CO2 transcritical system Single stage High stage

CO2-NH3 (or HFC) cascade system

Booster Volatile brine CO2 booster transcritical Holistic Facility Approach Can Minimize “Unintended Consequences”

Key variables Stakeholders Trends

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

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

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

CO emissions, climate Natural refrigerants, 2 officers Environment change regulations Refrigerants: Impact Comparison

R-290 R-744 R-717 Refrigerant R-404A R-507A R-22 Propane CO2 Ammonia

Ozone depletion potential (ODP) 0 0 0.04 0 0 0

Global warming potential 3,700 3,800 1,810 3 1 0 (GWP)

Safety group A1 A1 A1 A3 A1 B2

Reference: ASHRAE Handbook Ammonia Applications Ammonia Applications

• Food and beverage processing: – Dairy, meat processing, breweries, baked goods, frozen foods • Refrigerated cold storage • Recreational ice: – Hockey rinks, curling, ice skating paths – Olympic speed skating, ski jump, bobsled tracks • Ground soil freezing, mining HVAC • HVAC, district heating and cooling, heat pumps Ammonia Pros

Cost-effective • Ammonia systems cost ~10–20% less than competitive systems using HCFCs and HFCs • Less refrigerant required, smaller pipes required due to less mass flow: over nine times more energy content (Btu/lb) than HFCs • Up to 25% more efficient in energy usage • Excellent refrigerant for heat recovery • Low-cost refrigerant and oils: Reference: ASHRAE Handbook – Mineral and semi-synthetic oils • Low-cost refrigerant and oils: – Mineral and semi-synthetic oils Ammonia: A Natural Refrigerant

Natural refrigerant, environmentally friendly: • One of the most abundant gases in the environment • Exists all around us (air, water, soil, produced by our kidneys) • Approx 1.7 times lighter than air • Breaks down rapidly in the environment

• NH3 (R-717): Nitrogen and hydrogen

• Ozone-depletion potential (ODP) = 0 • Global warming potential (GWP) = 0 N Reference: ASHRAE Handbook

Human production: 198 million tons annually (2012) • Second-most produced chemical (after petroleum) • ~80% is produced for fertilizer

• NH3 R-717 refrigerant 99.98% pure ~ 2% of H total production

Reference: ASHRAE H • Cheap, affordable refrigerant Handbook

H 150 Years of Ammonia Refrigeration

Well known: • Ammonia used for more than 150 years in refrigeration • 1850s in France, 1860s in U.S., first patents in 1870s • Consistently used for large industrial refrigeration for over 100 years • Most common refrigerant for food and beverage production, cold storage, recreational refrigeration • Proven safe track record Key Industrial Trends Key Industrial Refrigeration Trends

• Safety and environmental requirements – OSHA requirements – Low-charge ammonia systems – Moving ammonia out of occupied spaces

– Cascade systems using CO2 in the low stage

– Booster transcritical CO2 architecture for MT and LT

– Increased use of R-744 (CO2) and a volatile secondary fluid

• Increased emphasis on total cost of ownership – Equipment cost – Maintenance costs

– Energy cost (improved performance of CO2 at LT such as -40 °F) Key Industrial Refrigeration Trends

• Safety and environmental requirements – OSHA requirements, 10,000-lb threshold

The burden of compliance will continue to be significant, with OSHA’s National Emphasis Program (NEP) inspections, audits and regulation changes related to the OSHA 1910.119 PSM program and the U.S. Environmental Protection Agency’s (EPA) 40 CFR Part 68 Risk Management Plan.

PSM programs (process safety and risk management) Key Industrial Refrigeration Trends

• Safety and environmental requirements – OSHA requirements – Low-charge ammonia systems Key Industrial Refrigeration Trends

• Safety and environmental requirements – OSHA requirements – Low-charge ammonia systems – Moving ammonia out of occupied spaces Key Industrial Refrigeration Trends

• Safety and environmental requirements – OSHA requirements – Low-charge ammonia systems – Moving ammonia out of occupied spaces

– Cascade systems using CO2 in the low stage Key Industrial Refrigeration Trends

• Safety and environmental requirements – OSHA requirements – Low-charge ammonia systems – Moving ammonia out of occupied spaces

– Cascade systems using CO2 in the low stage

– Increased use of R-744 (CO2) and a volatile Contained in secondary fluid equip room

Med-temp

Low-temp Ammonia Evolution: The Future

Ammonia technology trends: • Lower-charge systems, critically charged systems – DX ammonia increasingly possible thanks to electronic controls, valves

• Combined ammonia / CO2 cascade • Ammonia / pumped glycol secondary Med-temp

• Ammonia / pumped CO2 secondary • Consistent development of ammonia and equipment … • Removes ammonia from occupied space

Low-temp CO2 System Architectures CO2 System Architectures — Booster vs. Cascade vs. Secondary

Transcritical Secondary Cascade booster

CO2 DX

CO2 DX

CO2 DX CO2 Secondary System — Schematic

The CO2 would typically be cooled to -20 °F (200 psig) for the LT load +20 °F (407 psig) for the MT load The high-stage system is a simple type system, typically running on an HFC or HC or ammonia.

+20 °F

-40 °F CO2 pumped as volatile brine

CO2 direct expansion Metro Distribution Centre, Laval, QC: Ammonia / Secondary CO2 System

Facility • 240,000 square foot cold storage warehouse • 1000 TR ammonia refrigeration with efficient Emerson / Vilter single-screw compressors

• Distributed CO2 brine throughout the building Emerson solution • Vilter compressors delivered superior part-load efficiency • Expensive VFD drives would have been required with competitor’s twin-screw compressors End user benefits • Reduced ammonia charge • Lower and facility energy costs • Non-ozone depleting refrigerants with zero global warming potential • Vilter dual-slide valve technology avoids more than $100,000 of compressor VFD drives What About CO2? R-744 vs. HCFC/HFC

R-744 HFC / HCFC Impact on R-744 Systems

Global warming potential 1 1,300 to 4,000 Future proof Ozone-depleting potential 0 0 for HFC / high for HCFC Future proof Saturation pressures Higher Lower Additional safety design Operating pressures Higher Lower Specialized components Standstill pressures Higher Lower Relief valves/tanks, etc. (Power outages) Rapid pressure rise Lower Pressure relief venting Inert gas Yes Yes Copper may be used Flammability A1 A1 Not flammable Toxicity No No Asphyxiate in high concentrations Odor None None Leak detection required Volumetric mass flow Higher Lower Smaller tubes and compressors Heat transfer Higher Lower Better thermal efficiency High ambient performance Lower Higher System design to compensate Low ambient performance Good Good Subcritical cascade favorable Cost per pound Low Higher Economical Complexity of systems Higher Lower Higher first cost, training and experience Adoption Low Higher Higher first cost Legislation / regulations Low Higher Long-term viability R-744 Provides Many Benefits Over HFC Options. Pressure-Temperature Relationship Pressure-Enthalpy Diagram, CO2

Liquid and gas density are the same ONLY at critical point.

https://www.youtube.com/watch?v=-gCTKteN5Y4 Climatic Impact of CO2 System Architectures Industrial CO2 Use – New Space

Transcritical

Secondary Selecting the Best System — Booster vs. Cascade vs. Secondary

Transcritical Secondary Cascade booster

CO2 DX

CO2 DX

CO2 DX Introduction to Cascade — Simple Systems

High stage Simple cascade system comprises: (HFC or ammonia) • Low stage provides the cooling load

It uses CO2 and is always subcritical • High stage absorbs heat from the

condensing CO2 at the cascade HX

• CO2 condensing temperature is always below the critical point • High stage is usually a simple, close- Low stage coupled system CO2 • Typically applied in warm climates NH3/CO2 Cascade

• Move NH3 out of occupied space • Improved efficiency Primary stage • Regulatory NH compliance 3 MT • Natural refrigerant

25 °F = 440 psig Low-temp DX — CO LT 2

-30 °F = 163 psig New CO2 Subcritical Open Drive

• Vilter – division of Emerson Climate Technologies • Founded in 1867 in Wisconsin • Currently in Cudahy, Wis. • Products include: – Recips, single screws, packaged systems for: • Refrigeration, heat pumps • Smart vapor management, gas compression for CHP

Package systems Single screw SVM unit 550 Series 552 Test Site: The Helix, Innovation Center Dayton, Ohio (Startup Sept. 15)

Combined circuit on a common skid with two cylinder compressors working in parallel to provide 50 tons at -35 °F SST 25 °F SCT

Ability to test at “real” conditions Development of the HP Reciprocating Compressor

Vilter 552 Vilter 554 Vilter 556 Vilter 558

1,800 RPM 1,800 RPM 1,800 RPM 1,800 RPM

CFM 56 112 168 224

Capacity 48 97 145 193 -30 °F SST/23 °F (tons) SDT BHP 56 112 167 223

Capacity 23 46 69 92 -58 °F SST/23 °F (tons) SDT BHP 48 96 145 193

Testing stage Prototype Production status Design stage Design stage (Helix) stage Selecting the Best System — Booster vs. Cascade vs. Secondary

Transcritical Secondary Cascade booster

CO2 DX

CO2 DX CO2 DX Transcritical Systems Can “Transition” From Subcritical to Supercritical CO2 Transcritical Booster Operation Strategies for Warm Ambient Operation

Low-GWP Climatic Impact of CO2 System Architectures Time Spent in Transcritical

Atlanta, GA Toronto, ON

1,020 hrs/yr 202 hrs/yr w/std. gas cooler w/std. gas cooler

9 hrs/yr w/adiabatic gas cooler Five Ways of Improving Efficiencies in Warm Ambient Regions

• Spray nozzles

• Evaporative or adiabatic gas coolers

• Parallel compression

• Sub-cooling

• Ejectors Supermarket LCCP Analysis

Annual Energy LCCP LT = Low-temperature Min Cond: 50F MT = Medium-temperature DX = Direct expansion LCCP = Life cycle climate performance

Min Cond: 70F

Min Cond: 70F

Min Cond: 70F

Assumptions LT load: 384 MBTU MT load: 1,250 MBU Leak rate assumptions: 15% for all systems Note: 15% is probably high for the ammonia systems. Even if we use 0% it will not change the results, as the GWP for ammonia is 0.

Electric generation factor: 1.5 lbs CO2/kWh Ammonia system was assumed to be single-stage with no subcooling. Summary of Options

100% ammonia system

Ammonia CO2 transcritical booster system Compressor

CO2 pumped as volatile brine Low-temp only

Ammonia/CO2 cascade with MT pumped secondary

Ammonia +20 °F Compressor

-40 °F CO2 pumped as CO2 pumped as volatile brine volatile brine Medium-temp CO2 direct Medium-temp only expansion Low-temp Thank You!

Questions?

For further details, contact

[email protected] [email protected] 519-717-5282 414-486-2634

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.