Market and policy trends for natural refrigerant technology around the world

Klára Skačanová, Deputy Manager, Market Development, shecco about shecco market accelerator for climate friendly technologies, with focus on sustainable heating and cooling with natural refrigerants global trends for HCs in domestic refrigeration global trends for HCs in domestic refrigeration

more than 700 million domestic refrigerators already use hydrocarbons globally

HC is the standard for 50% global production of new domestic refrigeration equipment

by 2020, 75% of new production will use R600a / R290 global trends for natural refrigerants in light- commercial refrigeration

4.3 million HFC-free light-commercial refrigeration equipment global trends for natural refrigerants in light- commercial refrigeration europe: ambitious legislation drives natural refrigerants europe: domestic and light commercial refrigeration

All new domestic refrigerators and freezers use hydrocarbons in Europe - standard use of HFC-free equipment in light commercial refrigeration is becoming a standard across Europe europe: growing appetite for NR light commercial refrigeration

480k+ HC plug-in cabinets (2013 data)

source: shecco, status: end 2013 EU F-Gas Regulation drives naturals

Phase-down of bulk HFCs ! 100% (measured in tonnes of CO2eq) by 79% 93% by 2030 compared to average levels in 2009-2012 63% Bans on high GWP HFCs in new 79% equipment for some sectors 45% 31% Servicing ban on HFCs with GWP > 24% 2500 (by 2022 for virgin refrigerants, by 21% 2030 for recycled & reclaimed)

Training & certification needs to include information on alternatives to HFCs EU F-Gas Regulation: HFC bans

Sector GWP limit Year

Domestic refrigeration 150 2015

Stationary refrigeration (except < -50°C) 2500 2020

Hermetically sealed commercial refrigeration 150 2022

Centralized commercial refrigeration (≥40kW), except in the primary refrigerant circuit of cascade 150 2022 systems where f-gases with a GWP<1500 may be used Movable room AC 150 2020

Single split AC (< 3kg of f-gases) 750 2025 china: changing policy landscape china: domestic refrigeration

nearly all new domestic refrigeration equipment use HC the market also continues to grow as the demand for domestic refrigerators increases, due to the raising of living standards in China china: light-commercial applications

400,000 HC stand-alone cabinets 25,000 CO2 bottle coolers & vending machines

2,500 HC bottle coolers & vending machines 320,000 HC ice cream freezers

source: shecco, status: Feb 2015 china: policy trends

• phase-out of production and consumption of HCFCs by 2030 = global impact

• revised Environmental Protection Law in 2015, after 25 years = increasing accountability of polluters and government for environmental issues

• increasing government support for natural refrigerants in several sectors, especially room AC, heat pumps, commercial & industrial refrigeration china: recommended substitutes for HCFCs (June 2015)

residential air conditioning (R290)

plug-in commercial refrigeration (R290, R600a)

residential heat pump water heaters

commercial & industrial heat pump water heaters

mobile air conditioning

commercial and industrial refrigeration

industrial refrigeration

transport refrigeration

condensing units north america: growing interest in naturals north america: domestic refrigeration

in the USA, the introduction of hydrocarbons in household refrigeration is not yet a standard market taking longer to transition as a result of policy and market- related factors usa: policy for HCs in domestic refrigeration

UL standard - key barrier to introduction of hydrocarbons

• UL 250 allows maximum 57g of A3 refrigerant in household refrigeration equipment

• No revision planned in near future

US EPA SNAP Programme opens door to hydrocarbons

• R600a and R441A were approved for use in new household fridges and freezers already in Dec 2011 (venting prohibition lifted in 2014)

• In Feb 2015, R290 was approved in domestic refrigeration

“I believe the use of R290 could have a major impact in the residential refrigeration sector. The ability to get to lower temperature could be a game changer” True Manufacturing north america: light commercial refrigeration

MEXICO U.S. CANADA 188,371 94,493 8,172 29,064 159,307 17,493 77,000 4,375 3,797

over 291,000 NR stand-alone refrigeration units north america: light commercial refrigeration

current refrigerant use

42.9% 71.4% 95.2%

CO2 HC HFCs CO2 and hydrocarbons are speeding up

BUT large part of the industry still uses HFCs

commitments of large consumer brands will increasingly drive the market towards naturals usa: policy trends

US EPA SNAP Programme

• In Feb 2015, 4 HCs approved in 6 new applications: stand-alone commercial refrigerators and freezers (R600a, R441A); vending machines (R600a, R290 and R441A); residential and light-commercial AC and heat pumps (R290, R441A); very low temperature & heat transfer (R170); household refrigeration (R290)

• SNAP de-listing of certain high GWP HFCs (incl. R134a) in certain sectors - as of 2019 / 2020 for stand-alone units

2017: DOE energy efficiency standards

• upright glass door freezers must achieve 57% less energy use than 2010 standard; horizontal sold door ice cream freezers: 53% less energy use; bottle coolers: 48% less energy use closing remarks

‣ hydrocarbons in domestic refrigeration are a standard in most of world regions, but some are facing policy & market challenges

‣ technology innovations in domestic refrigeration have impact on other sectors, such as light commercial refrigeration

‣ ambitious policy action drives innovation, leads to increased availability, gradually reducing cost of equipment using natural refrigerants shecco - useful links

Industry Platforms: http://www.hydrocarbons21.com shecco Market Development: http://www.R744.com Market Research http://www.ammonia21.com ‣ ‣ Market Development & Consulting Publications http://www.R718.com ‣ ‣ Regulatory Affairs ATMOsphere conferences, ‣ Special Projects side-events & network meetings: contact details: http://www.ATMO.org Klára Skačanová shecco Publications, incl. GUIDEs [email protected] http://publications.shecco.com office: +32 2 230 3700

Accelerate Magazine http://accelerate.shecco.com