Table of Contents // 1 SPRING 2018
ADVANCING HVAC&R NATURALLY A U S T R ALI A & N Z
READY MADE, NATURALLY COOL
Kishore Matta Managing Director ewel Fine Foods
p 20
Spring 2018 // Accelerate Australia & NZ Natural refr
sheccoBase
The world’s largest database on natural refrigerants
Base
For more information on sheccoBase contact us at [email protected] Editor's Note // 3 BREAKING NEW GROUND
— Editor's Note by Andrew Williams
Andrew Williams Editor
ompetition between different natural Beyond these shores, this issue's refrigerant-based HVAC&R solutions is price theme continues with a look at C becoming fiercer than ever – not just soaring prices of HFCs under the in commercial applications, but in European Union’s F-Gas Regulation.
industrial systems too. CO2 transcritical and Perhaps Australia can expect to low-charge ammonia options are shaking up an experience similar price changes industrial market for natural refrigerants in which in future resulting from its own traditional ammonia systems have long legislation (p. 14). held sway – hence this issue’s focus on industrial refrigeration. This issue also looks at two foreign retailers that have embarked on
Growing competition between CO2, ammonia natural refrigerant journeys. Germany- and hydrocarbons was very much apparent headquartered food wholesale at Chillventa 2018 in Nuremberg, Germany, specialist METRO AG opened its first
with visitors to the world-leading HVAC&R two CO2 transcritical-based stores in tradeshow discovering how natural refrigerants Russia this year (p. 42), while Casa have become mainstream options as HFCs are Ley has become one of the first
phased down (p. 44). food retailers in Mexico to install a CO2 transcritical system, in a supermarket This issue’s Technology Focus, meanwhile, in Culiacán (p. 38). takes a closer look at the increasing competition
between ammonia and CO2 in industrial In the Swedish city of Malmö, E.ON is applications in Australia. The low-charge harnessing waste heat from sewage trend is attracting new customers to ammonia, treatment and waste incineration
while new technology is helping to bring CO2 to plants for district heating – thanks to higher capacities (p. 60). ammonia heat pumps (p. 30).
Closer to home, Jewel Fine Foods is striving International cooperation between to provide Australia with the freshest and Germany’s GIZ, the Indonesian highest quality ready meals. This commitment government and local manufacturers, to excellence extends to production, where the meanwhile, is helping Indonesia to food manufacturer is turning to ammonia to adopt propane chillers (p. 32). improve sustainability (p. 20). Reporting from our ATMOsphere Emergent Cold, one of the country’s biggest Asia conference reveals that interest cold storage providers, is considering in natural refrigerant technology riding the low-charge ammonia wave as a and its potential to increase energy means of improving efficiency in industrial efficiency while reducing greenhouse refrigeration systems (p. 16). gas emissions is rapidly growing throughout Southeast Asia (p. 48). Faced with the need to reduce operating costs And the Gustav Lorentzen conference amid rising energy prices in Australia, Drakes in Valencia in June showcased Supermarkets is turning to natural refrigerants the latest research into natural for its new Adelaide distribution centre (p. 28). refrigerants from leading experts around the world (p. 52). Indeed, as gas prices in Australia continue
to rise, so too is interest in CO2 heat pumps – Enjoy the issue! with local suppliers ready to meet the demand.
Automatic Heating has installed a CO 2 heat pump that is delivering energy savings at a residential complex in Melbourne (p. 56).
Spring 2018 // Accelerate Australia & NZ 4 // Table of Contents
In this issue
Editor's Note HFC prices skyrocketing in 03 Breaking new ground. 14 Europe Study reveals impact of EU F-Gas Regulation.
About Us // Policy // 06 About the Accelerate family.
Events Guide 08 Cold storage firm mulls Important industry events 16 low-charge NH3 move from November to March. Emergent Cold considers riding low-charge ammonia wave.
Australia & NZ in Brief Ready made, 10 ARC re-awarded licence 20 naturally cool scheme contract; CO2 heat pump in Tasmania; U.S. Jewel Fine Foods turns Supreme Court won't hear to ammonia to improve HFCs case; & more. sustainability.
Drakes opts for ammonia to 28 cool new warehouse Food retailer turns to natural refrigerants for new Adelaide distribution centre.
Sweden gets the ammonia 30 30 treatment The city of Malmö harnesses
NH3 for district heating.
Rolling out propane chillers 32 in Indonesia Pharma giant PT Phapros installs R290 chillers made by local manufacturer AICOOL.
Mexican retailer pilots CO2 38 transcritical Casa Ley becomes one of the country's first food retailers
to install an all-CO2 system.
Moscow calling 42 German food wholesale specialist
METRO AG opens its first CO2
// End User // transcritical stores in Russia.
Accelerate Australia & NZ // Spring 2018 Table of Contents // 5
Natural refrigerants shine at 20 44 Chillventa Competition between CO2, hydrocarbons and ammonia is more fierce than ever.
Full steam ahead: 48 NatRefs in Southeast Asia Reporting from ATMOsphere Asia event in Singapore.
NatRef innovators take to 52 Gustav Lorentzen stage Industry experts explain
effectiveness of CO2, ammonia and hydrocarbons at event
// Events named for CO2 pioneer.
44
Supplying domestic hot 56 water with CO2 heat pumps Automatic Heating commissions
CO2 hot water heat pump for Melbourne apartments. // Market
Industrial refrigeration: A 60 competitive market Innovation with natural
refrigerants CO2 and ammonia is growing. // Technology // 60
66 Editorial Corner
Spring 2018 // Accelerate Australia & NZ 6 // About Us
Accelerate Australia & NZ Spring 2018 Volume 4, Issue #11
Publisher About Marc Chasserot Accelerate Australia & New Zealand [email protected] @marcchasserot Brought to you by shecco, the worldwide experts in natural refrigerant news, Accelerate Australia & NZ is the first quarterly news magazine Editor written for and about the most progressive business leaders working Andrew Williams with natural refrigerant solutions in all HVAC&R sectors. [email protected] @a_williams1982 The Accelerate family of magazines includes editions in Europe, America, Japan, China, Asia, and Australia & New Zealand. North America Editor Michael Garry Printed copies are available to pick up at leading HVAC&R tradeshows [email protected] and are posted to key end users and industry professionals. @mgarrywriter www.accelerateAUNZ.com Reporter Devin Yoshimoto Accelerate publisher shecco's network spans the globe with offices in [email protected] Brussels, Tokyo, New York and Sydney. Contributing Writers Marie Battesti Dario Belluomini Jan Dusek Charlotte McLaughlin
Advertising Manager Caroline Rham [email protected]
Events Coordinator Caroline Rham
Art Director Anna Salhofer
Graphic Designers Charlotte Georis Juliana Gómez
Photographers Simon Anders Automatic Heating Global Ben Beech Marty Pouwelse Photography METRO AG César Rodríguez Angie Tao
WANT TO ADVERTISE? GOT A STORY IDEA?
/ Ad sales / Editor The views expressed by the contributors are not necessarily Caroline Rham Andrew Williams those of the Publisher. Every care is taken to ensure the [email protected] [email protected] content of the magazine is accurate but we assume no +39 331 961 395 +32 (0)2 899 25 63 responsibility for any effect from errors or omissions. Published by shecco SPRL. All rights reserved. Reproduction in whole or in part is prohibited without prior written permission of the copyright owner. Accelerate Australia & NZ // Month 2018 Table of Contents // 7
Month Month 2018 YEAR // // Accelerate Accelerate Australia Europe & NZ 8 // Events Guide
13-15.11 CIAAR 2018 Shanghai, China The Shanghai International Automotive Air-Conditioning and Refrigeration Technology Exhibition 2018 focuses on product innovation and industrial upgrading in China’s mobile refrigeration and air-conditioning industry.
www.autocoolexpo.com/en
15.11 26-27.11 AIRAH Awards World Summit on Climate
NOV— Melbourne, Australia Change & Global Warming Built on a history of recognising Tokyo, Japan excellence and achievement, the The theme of the conference series AIRAH Awards will return in 2018 is 'Climatic Change: Happening to honour those who have made Here and Happening Now'. significant contributions to the HVAC&R industry. The Awards
presentation dinner hails high www.meetingsint.com/conferences/ achievers, stand-out projects climatechange and ground-breaking research.
www.airah.org.au/awards 28-30.11 Asia Cold Chain Show 2018 (ACCS 2018) Bangkok, Thailand The Asia Cold Chain Show (ACCS) is an exhibition and conference on the cold chain, cold logistics, cold transport, cold storage, material handling and cold supply chain sectors.
www.asiacoldchainshow.com 22-24.11 REFCOLD India Gandhinagar, India REFCOLD, an initiative of ISHRAE & NurembergMesse India, is India's first event on refrigeration and the cold chain.
www.refcoldindia.com/event
Accelerate Australia & NZ // Spring 2018 Events Guide // 9
6-7.12 28.02-02.03.19 13th International Symposium ACREX India 2019 on New Refrigerants & Mumbai, India Environmental Technology ACREX India returns to Mumbai Kobe, Japan to celebrate its 20th edition. JRAIA is hosting the International Participants from more than Symposium on New Refrigerants 25 countries will attend the and Environmental Technology, the buildings and HVAC exhibition. so-called Kobe Symposium, which has been held every two years since
1994. Symposium topics include www.acrex.in the latest developments in HVAC&R equipment, and international and domestic legislation. Japanese-English translation is available in all sessions.
www.jraia.or.jp/english/symposium/ index.html — FEB
13-15.12 India Cold Chain Show 2018 Mumbai, India Running in its 7th edition, the India Cold Chain Show (ICCS 2018) is the leading exhibition and conference for the cold storage, cold logistics, temperature controlling, refrigeration, storage, distribution and cold supply chain sectors in India.
http://indiacoldchainshow.com
12.02.19 ATMOsphere Japan 2019 Tokyo, Japan The natural refrigerants conference returns to Tokyo the day before the Supermarket Tradeshow, Japan's largest retail exhibition.
www.atmo.org/events.details. php?eventid=74
Spring 2018 // Accelerate Australia & NZ 10 // Australia & NZ in Brief AUSTRALIA & NZ IN BRIEF
HC charge limit U.S. Supreme ARC re-awarded increase to go Court won’t licence scheme to final IEC vote hear HFCs case contract
In a move that could widen the use of The U.S. Supreme Court on 9 October The Australian Refrigeration Council hydrocarbons as natural refrigerants declined to hear the appeal of a 2017 (ARC) has been re-awarded the worldwide, a crucial subcommittee Court of Appeals case that restricted contract to administer the country’s of the International Electrotechnical the Environmental Protection Agency’s refrigeration and air-conditioning Commission (IEC) on 20 October ability to regulate HFCs under the (RAC) licence scheme for up to nine approved advancing to the decisive Significant New Alternatives Policy years. The ARC has administered the next stage in a standards process that (SNAP) program, according to multiple scheme successfully – in partnership could increase the charge limit on A3 published reports. with industry and government – since (flammable) refrigerants from 150g to its inception in 2005. 500g under the standard 60335-2-89. The ruling coincided with the first day on the Supreme Court of newly ARC Chairman Kevin O’Shea said the IEC subcommittee SC61C analysed confirmed justice Brett Kavanaugh, hard work of industry and the vital comments received from national who, in his former role as a judge on the role that climate control plays in the committees during the CDV or U.S. Court of Appeals for the District modern world had paved the way for Committee Draft for Vote stage into of Columbia, wrote the 2-1 decision in the licence scheme to continue. IEC standard 60335-2-89. the HFCs case, Mexichem Fluor v. EPA. Kavanaugh did not participate in the “The RAC industry is vital to modern The subcommittee has now decided Supreme Court's decision to decline life. Without it, surgery can’t be that the charge-limit draft should go to hear the case. performed, and supermarkets and to a final vote phase (FDIS) by the end laboratories won’t function properly. of 2018, paving the way for the final In addition to coinciding with Our industry also leads the world document and standard to be prepared Kavanaugh’s installation on the in environmental stewardship, with for the final vote. Assuming this vote Supreme Court, the high court’s access to cutting-edge technologies,” is positive, the standard could be decision to decline to hear Mexichem said O’Shea. published in early 2019. Fluor v. EPA came in the wake of a new report from the Intergovernmental Panel “The higher skill levels within industry “Most of the CDV comments on Climate Change (IPCC) highlighting have directly delivered improved proposed by WG4 were accepted, the environmental hazards posed by environmental outcomes, consumer except the maximum charge of A2L, greenhouse gases like HFCs. protection and energy efficiency, which will remain 1.2 kg,” said Marek through better quality services and Zgliczynski, who chairs the IEC “Coming only a day after the world’s work practices,” he said. SC61C subcommittee on adopting the leading climate scientists called proposed update. This means the IEC for urgent action to curb dangerous The RAC licencing scheme is is likely to approve the propane charge carbon pollution, the court’s decision administered by the ARC on behalf limit increase from 150g to 500g. lets irresponsible companies of the Australian Government, continue harming our planet — even under the Ozone Protection “Now it will take 2-3 months [to move though safer alternatives exist," and Synthetic Greenhouse Gas to the] final vote, where we will need said David Doniger, an attorney and Management Regulations 1995. the support of all,” said Zgliczynski, senior strategic director for NRDC, DY manager of commercial refrigeration quoted by TheHill.com. product engineering for Embraco. In reaction to the Appeals Court decision The vote represents the latest and the EPA’s subsequent actions, four milestone in a lengthy standards states – California, New York, Maryland process that will determine whether and Connecticut – have committed the higher charge limit is ultimately to preserving the EPA’s original enacted as an international standard. HFC restrictions at the state level. MB MG
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Tasmanian distillery Hillphoenix has Japan's environment installs CO2 heat 400+ transcritical ministry requests pump sites in North A$101m NatRef America subsidy
Located in Pontville, Tasmania, Over 400 Hillphoenix transcritical CO2 Japan's Ministry of Environment (MOE) in the 199-year-old Shene Estate and systems have now been installed in September asked for ¥8.1 billion (A$101 Distillery uses locally sourced North America, the most of any supplier, million) in natural refrigerant subsidies ingredients and traditional methods said Scott Martin, director of business for the 2019 financial year (FY). The to produce some of Australia’s best development and industry relations for budget request has been submitted to gin and single malt whiskeys. the Conyers, Georgia-based OEM. the Ministry of Finance for review.
It installed installed Mitsubishi Heavy “When you walk into our factory, The Japanese government is expected
Industries’ Q-ton, CO2 air-to-water hot the [transcritical CO2] units are to confirm the actual budget amount in water heat pump in July 2017. everywhere. It’s exciting!” said Martin early 2019. during an interview at the Food Conventionally, the water used in the Marketing Institute’s Energy & Store The FY 2019 natural refrigerant subsidy distillation process is heated using Development Conference in Atlanta, will continue to be available in the same an instantaneous electric hot water Georgia, held on 23-26 September. industrial sectors: cold storage, food heater. However, in an era of increasing manufacturing and food retail. electricity prices, this was becoming The total number of transcritical expensive and unsustainable for systems from all suppliers in North For FY 2018, the MOE asked for ¥9.4 billion the business. America is 615+, according to (A$118 million). The actual confirmed estimates from sheccoBase, the amount was ¥6.4 billion (A$80 million). Gas was also under consideration market development arm of Accelerate at first. But given that the estate is Australia & NZ publisher shecco. In July, Japan's Ministry of Environment not currently connected to the gas (MOE) announced the first round of grid, this option was ultimately ruled ALDI US has been the leading user of companies to be awarded subsidies for out. This led the business to look for Hillphoenix’s transcritical units. As natural refrigerant system installations alternative energy-efficient solutions of June 2018, the chain had installed for FY 2018 in the cold storage, food capable of operating in the region’s low transcritical CO2 systems – mostly processing and retail sectors. outdoor winter temperatures. from Hillphoenix – in 130 stores, according to Amber Hardy, director of A total of 98 companies with plans to Taking account of the distillery’s energy management for ALDI US. install natural refrigerants in a combined daily water volume and temperature total of 139 locations around Japan have requirements as well as the colder The ability of enhanced transcritical been awarded subsidies. temperatures experienced by the systems to operate efficiently in warm distillery in winter, Shene opted for climates has helped spread sales Notable recipients in the commercial the Q-ton. throughout North America, including sector include some of Japan's largest such hot locales as California, Florida, convenience store chains, among others. The Q-ton achieves a COP (coefficient Alabama and South Texas, said Martin. Examples include retail and logistics of performance) of 4.3 by delivering giants Aeon, COOP, Family Mart, Lawson 30 kW of output power from only Most of the warmer-climate stores and Yamato Transport. 7 kW input. use adiabatic condensers, though Hillphoenix has begun testing other In the cold storage and food processing At the time of installation, the technologies; these include parallel sectors, notable recipients include some distillery anticipated saving 60% compression in a Houston, Texas, of Japan's largest consumer food and per year on energy bills compared store and three others; and an ejector drinks brands such as Asahi Breweries, to an instantaneous heater. in a Sprouts Farmers Market store in Kewpie, Meiji, Morinaga Milk and Maruha DY Woodstock , Georgia. Some of the stores Nichiro, as well as large cold storage with parallel compression also use service providers Yokohama Reito adiabatic compressors, Martin added. and Nichirei Logistics, among others. MG DY
Accelerate Australia & NZ // Spring 2018
14 // Policy
he new EU F-Gas Regulation, finalised in 2014 and in force since 2015, aims to reduce the European Union’s use of HFC prices T hydrofluorocarbons (HFCs) by 79% by 2030. It has already been having a pronounced impact on prices, according to a study by Öko-Recherche and CITEPA. skyrocketing Öko-Recherche and CITEPA, Europe-based organisations dedicated to environmental research, are monitoring HFC prices on behalf of the European Commission to evaluate the effectiveness of the EU in Europe F-Gas Regulation and its quota system. 1 January 2018 heralded a 37% cut in the quota of HFCs available in the European Union.
Hydrofluorocarbon (HFC) prices Average purchase prices of R134a, R410A and R404A were under €2/t CO2eq in 2014, but jumped to between €7/t CO2eq and €23/t rose from less than €2 per ton of CO2eq at the beginning of the first quarter of 2018, the study said.
CO2 equivalent (/t CO2eq) in 2014 In a webinar entitled ‘Monitoring of refrigerant prices against the to an average of €23/t CO2eq at the background of the F-Gas Regulation (EU)’, Barbara Gschrey of beginning of 2018, according to a Öko-Recherche spoke of price increases for R134a, R410A and R404A throughout the supply chain (gas producers, OEMs and study carried out for the European service companies). Commission, the executive For instance, service companies’ selling price for R134a has increased arm of the European Union. by €23 per kilogram (/kg) since the new EU F-Gas Regulation was adopted, while their selling price of R410A has risen by €46/kg. — By Marie Battesti With Europe currently experiencing such dramatic increases in HFC prices, Australia can be expected to experience similar price changes in the near future as a result of its own legislation.
In Europe, soaring HFC prices are creating more opportunities for natural refrigerant-based technologies to serve as inexpensive, future-proof and environmentally friendly solutions for heating, ventilation, air-conditioning and refrigeration (HVAC&R).
In August, EU HVAC&R industry group AREA warned of growing illegal imports and black market trade in refrigerants in some European countries. Higher prices and imminent shortages of these refrigerants have been attracting the attention of criminals, who are increasingly stealing HFC cylinders. MB
Accelerate Australia & NZ // Spring 2018 Policy // 15
HFC PRICE DEVELOPMENT IN EUROPE I