ODS Bank Management and Actions in Taiwan

Ozone Layer Protection–

Import HCFCs CFCsHCFCs

Recycle

Waste

DestructionExport

Servicing

Used in Industrial Process

The Refrigerant Circulation in Taiwan

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ForewordDespite being unable to become a Signatory Party to

the Montreal Protocol due to political reasons, Taiwan has complied with the regulations for Non-Article 5 countries, the developed countries, so as to fulfill its obligation to protect the ozone layer. As such, Taiwan has managed to reduce and abolish the use of various ozone depleting substances (ODS).

The Taiwan ODS bank mainly includes the refrigerants in the refrigeration and air conditioning equipment (including CFCs, HCFCs), foam blowing agents in insulation materials for refrigerators and building(including CFCs, HCFCs), and Halon extinguishing agents. In addition to controlling the consumption of ODS through strict controls on import and production quantities, the government has also established relevant regulations on ODS recovery to avoid emissions from waste equipment due to improper dismantling.

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Current Status of ODS ControlThe use of CFCs in Taiwan peaked at 16,255 metric

tonnes in 1988. The main applications were refrigeration and air conditioning systems, foam blowing, electronics cleansing and spray can propellants. In line with the Montreal Protocol timetable, Taiwan has phased out CFCs since 1996 by stopping production and importation.

Accordingly, the relevant industrial processes switched to adopt HCFCs. In compliance with the reduction control under the Montreal Protocol, the Taiwan Environmental Protection Administration (Taiwan EPA) promulgated the " Regulation for the Consumption Management of Hydrochlorofluorocarbons" to control the production, importation and use of HCFCs by domestic industries through a quota allocation system. During the period from 2004 and 2011, through assessing the situation of domestic use, the maturity of alternative

CFCs and HCFCs Consumption Reduction

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Stop producing CFCsand reduce consumptionof CFCs to zero

Stop producingHCFCs

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technologies and the cost, the ban on HCFCs for PU foam blowing, electronics cleansing, refrigerants in window mounted air conditioners as well as separation type below 7.1 kW stepwisely took effect in Taiwan, leading to control the annual upper consumption limit of HCFCs under the Montreal Protocol. In 2010, Taiwan's consumption volume of HCFCs, 152.56 ODP tonnes, was already lower than 25% of the baseline, which is 159.539 ODP tonnes regulated by the Montreal Protocol, and expectedly total phase-out by 2030. Furthermore, Taiwan is currently reviewing the control timetable for a total ban of the new air-conditioning and refrigeration facilities adopting HCFCs starting in 2015.

In addition, Taiwan banned the import and export of halon agents in 1994, and prohibited the import of fire extinguishers containing halon in 2000. To promote the proper disposal and reuse of halon used in essential domestic applications, the National Halon Management Center was established by the Industrial Technology Research Institute in 2005. It assists the government in handling surplus halon, as well as reducing improper

discharge through recovery, purification and recycling.

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The Achievements in ODS Recovery

Additional to proactively pursuing reduction control in compliance with the Montreal Protocol, Taiwan also focused on recovering ODS to reduce atmospheric emissions and protect the ozone layer. To this end, the EPA promulgated the " Regulation for the Management of Controlled Chemicals Under the Montreal Protocol " and "Regulation for the Consumption Management of Hydrochlorofluorocarbons". These require the use of recycling and recovery equipment when handling refrigerants in the filling and dismantling of freezers, refrigeration and air conditioners, as well as the use of recovered CFCs only in the service and repair of existing equipment. Moreover, the EPA promulgated the "Standard Treatment and Facilities for Recycling, Recovery, Storage and Clearance of Waste Electrical, Electronic Equipment and Information Technology Products" and the "Standard Treatment and Facilities for Recycle, Recovery, Storage and Clearance on

Refrigerants Recovered from Vehicles

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Waste Automobiles and Motorcycles". Under the full management of the EPA’s Recycling Fund Management Board (RFMB), these regulate the recovery of refrigerants and foam agents from waste refrigerators, air conditioners and vehicles. In 2011, the EPA specifically issued monthly average minimums for CFCs recycled from abandoned equipment at the processing plants in order to strengthen recycling measures for refrigerant:

✔ �Insu lat ing foam blowing agents f rom waste refrigerators: an average of 0.07 kg recycling volume from each end-of-life fridge with monthly report.

✔ Refrigerant from waste refrigerators: an average of 0.03 kg recycling volume from each end-of-life fridge with monthly report.

✔ �Refrigerant from waste air-conditioners: an average of 0.2 kg recycling volume from each end-of-life air-conditioner with monthly report.

✔ �Refrigerant from waste vehicles: an average of 0.09 kg recycling volume from each end-of-life vehicle with monthly report.

Foam Blowing Agents Recovery Facilities in the E&E Recycling, Inc. in Taiwan

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To ensure that discarded electrical and electronic equipment are recycled, starting on July 1, 2011, vendors of refrigerators and air-conditioners are required to provide consumers with the "Notice of Consumer Information Confirmation" and the "Recycling, Clearance and Treatment Control Manifest” to fill out on the sales. This provides consumers with a free disposal and recycling service, and they can even track the appliance during the recycling process to make sure it is properly treated. The implementation of this new system will ensure the proper recycling and treatment of the end-of-life electrical and electronic equipment and avoid environmental pollution from hazardous substance emissions.

With the regulatory requirement on recycling ODS refrigerants and the efforts of relevant industries in recent years, ODS recovery in Taiwan reached a peak in 2010, with the most ODS coming from end-of-life air-conditioners, followed by end-of-life vehicles.

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The Status of ODS Recovery in Taiwan

Refrigerants from Waste Vehicles

Foam Blowing Agents from Waste Refrigerators

Refrigerants from Waste Refrigerators

Refrigerants from Waste Air-conditioners

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The Implementation on theDestruction of ODS

In 1994, Formosa Plastics Corp., the sole ODS manufacturer in Taiwan, built an CFCs incinerator for destroying contaminated CFCs and HCFCs. The annual treatment capacity of the incinerator was 1,000 tonnes in design, with liquefied natural gas as fuel, and operating temperature of about 1,400℃. The intake CFCs was almost completely broken down into CO2, H2O, HCl, HF and small quantity of Cl2, and with appropriate treatment, the emissions and waste water could all meet the environmental standards, above 99.9% in destruction removal efficiency (DRE).

In the past, the illegal import of ODS blocked and confiscated by the Customs and the Coast Guard were consigned to the Formosa Plastics Corporation for destruction after the judicial process. From 1995 to 2005, a total of 714 tonnes of ODS were destroyed, including 591 tonnes of CFC-12, 81 tonnes of CFC-11, 1 tonne of HCFC-22, and several tonnes of other ODS, while another 5 tonnes of greenhouse gas HFC-134a were on the list.

CFCs Incinerator in HCFCs Production Plant of Formosa Plastics Corp. during 1994 to 2005.

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Formosa Plastics Corporation shutdown its HCFCs plant in 2005, and there is currently no specialized facility for ODS destruction. The EPA is looking for a replacement, with referring of the ODS destruction technologies assessment of the Technology & Economic Assessment Panel (TEAP). In 2011, test incinerations on eight tonnes of CFC-12 were run, and the EPA will continuously proceed with the relevant researches.

In addition to their ozone-depleting properties, ODS are also characterized by their high global warming potential (GWP). It is estimated the accumulated ODS volume destroyed in Taiwan could reduce about 7 million metric tons of carbon dioxide equivalent emission, which has helped mitigate global warming.

CFC-12 Incineration Test in Domestic Destruction Facilities in Taiwan in 2011.

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The Operation of HalonManagement Center

In compliance with the Montreal Protocol, Taiwan stopped importing halon in 1994. In line with practices in other countries, it then established the Halon Management Center, in 2005, to coordinate halon recycling, purification and meet demand for essential uses.

For years, the EPA has been making efforts to promote the recycling and replacement of Halon in the fire suppression systems or extinguishers, and providing the recycled, good conditioned Halon agents to aircrafts, defense and military facilities, preservation of relic and other essential uses. For those surplus or unusable Halon agents, proper storage and destruction has been implemented to avoid the improper Halon emissions leading to ozone depletion. For example, in 2008 the Halon Management Center assisted the public sector organization to ship the replaced and contaminated Halon-1301, about 7 tonnes in total, to Australian DASCEM Halon Bank for destruction and the proper disposal.

Seven tonnes Halon-1301 were shipped to and destroyed in Australia's National Halon Bank DASCEM

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As of October, 2011, the recycled Halon for further purification and reuse accumulated in the Halon Management Center, Halon-1301 is about 23 tonnes, Halon-1211 about 6 tonnes, and there were 7 tonnes of Halon-1301 destroyed. It is estimated that the total recycled and destroyed volume of the Halon has reached an equivalence of about 168 thousand tonnes of carbon dioxide equivalent reduction, benefitting mitigation of global warming. Currently, the Halon-1211 contained in Taiwan's existing equipment is estimated to be about 3,000 tonnes, and Halon-1301 about 2,000 tonnes. The Halon Management Center will continuously implement the Halon recycling tasks of replaced fire suppression systems or extinguishers, maintenance management, recovery and purification, mainly including as follows:

(1) Offering technical consulting service for the place using Halon, such as knowledge of domestic and oversea related regulations, fire-fighting capabilities, environmental characteristics and replacement assessment of alternatives to Halon.

(2) Implementing the recovery and testing of Halon, assisting requests from essential users in demand and establishing the Halon recycling and reusing process.

(3) Implementing the purification operation of Halon, providing the demanded Halon to essential users on site, and step wisely to help replace the Halon agents, reducing replacement cost.

(4) Offering education, training and chemical analysis of Halon to blockade the illegal smuggling of Halon, as well as accelerate the work of Halon abolition.