P.K. MahindraREFRIGERATION & AIR CONDITIONING

MANUFACTURERS’ ASSOCIATION (RAMA)

21-22 Oct 2011, New Delhi

STAKEHOLDERS WORKSHOP ON HCFC PHASE-OUT MANAGEMENT

PLAN (HPMP)

Challenges in Refrigeration & Air Conditioning (R&AC) Manufacturing

sector in India

1

Industry Size (2010 ~ 11) US$ (billion) Air Conditioning Systems 3.2 Dom.& Comm. Refrigeration 2.6 Servicing 0.3

Total 6.1 Growth of over 20% was recorded in major sub sectors during 2000 ~ 05 consequent to economic liberalisation. Industry made large investments on HCFCs based technologies for capacity growth during 2005 & 2006 Capacity expansion was done on the assumption that there shall be no restrains on availability of HCFCs till 2015 as provided under original Montreal Protocol

INDUSTRY BACKGROUND

Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 20112

R&AC Equipments with HCFCs (R22) refrigerant are grouped into following sub sectors:

1.Room air conditioners including non ducted splits upto 5.0 T

2. Split air conditioners with ducts above 3.0 T3. Precision, Telecom Air conditioning including mobile shelters4. Chillers (chilled water for process & air conditioning)5. Commercial Refrigeration (water Coolers, others)6. Cold Storage (refrigeration equipment other than ammonia

based)7.Rail Coach Air Conditioning8.Compressors & Controls9.VRF Products

R&AC SUB SECTORS

3Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

Actual

000 n

os.

Projections

0

2000

4000

6000

8000

10000

12000

14000

16000

Window

Split

GROWTH ESTIMATE Room Air Conditioners including Non Ducted

Splits upto 5.0 T (RAC Sub Sector)

Production: 2009 : 3.0 m (Actual)2010 : 4.0 m (Actual)2013 : 8.8 m (Estimate)2015 : 15.0 m (Estimate)

Annual Demand Growth : 2007 ~ 10 : 22% (Actual)2011 ~ 12: 32% (Estimate)2013 ~ 15: 31% (Estimate)

Penetration Level (p. capita):2009 : 3.0 (Actual)2012 : 3. 5 (Estimate)2015 : 4.5 (Estimate)

Source: RAMA sub sector committee 4Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

REFRIGERANT REQUIREMENT & HCFC AVAILABILITY

Refrigerant Requirement: 2009 : 5,678 MT (Actual)2010 : 6,885 MT(Actual)2013 : 14,825 MT (Est.)2015 : 24,571 MT (Est.)

HCFC 22 availability as % of refrigerant requirement:2009~12 : 90 ~ 93%2013 : 38%2014 : 30%2015 : 21%

Source: RAMA sub sector committee 5Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

ALTERNATE REFRIGERANTS

CHARACTERISTICS

PARAMETER R 22 R 410A R 407C R 134a R 32 R 290

Safety Category as per ASHRAE A1 A1  A1 A1  A2L A3

Flammable Limits in Air (vol.%) None None None None 14.4 2.1

GWP 1810 2,088 1,774 1,430 675 3

Glide oF 0  0.2 9.7 0 0  0

Compressor Energy Efficiency Ratio HCFC 22 %)

100% 88 – 90% 95 – 101% 95 – 97% Yet to be

established 97 – 99%

Capacity (HCFC 22 %) 100%149 – 155%

98 – 105% 65% 160%  85%

Heat Transfer Baseline  Higher Lower Lower Higher  Same

Pressure Drop Baseline  Lower Same Higher Lower  Lower

Tubing Size Baseline  Smaller Same Larger Lower  Same

System Performance (HCFC 22 %)

100% 98 - 105% 95 – 100% 97 – 98% 95 –97%  100-103%

Redesign Required Baseline  Major Minor Major Major  Major

6Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

7Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

HC-290: SAFETY CONSIDERATIONS

Lower explosion limit (LEL): 2.1% approx. 39 g/m³

Upper explosion limit (UEL): 9.5% approx. 177 g/m³

Minimum ignition temperature: 470 C

Safety Classification: A3

Human occupied space (Max charge) - EN 378 : 1.5 kg

Min room area - EN 378: 57 (m2/kg of HC-290)

Source: GIZ Proklima

Refrigerant Evaluation

8Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

•SEER Comparison (cooling mode) - 3.5kW-Room AC in Europe

•Peak power comparison (R410A ratio) under cooling conditionOutside 35°C, room 27°CDB/19° CWB

R22 (1.14kg)

HFO1234yf (1.32 kg) *2

R32 (0.84kg) *1

Propane (0.37kg) *3

CO2 (0.84Kg) *4

R410A (1.2kg)

0.7 0.8 0.9 1.0 1.1Efficiency ratio Power ratio

0.7 1.0 1.3

In terms of SEER, R32 is best!

CO2 is the worst. In the peak power under cooling condition. R32 is better than R22 & R410A.HFO and CO2 will cause peak power problems in large cities.

If IEC is disregarded, the charge volume is 0.58kg, and SEER could be same as R22

Source: Daikin

OVERVIEW OF

LOW GWP REFRIGERANT OPTIONSRefrigerant type

Safety GWPEfficienc

yCost Others

RAMA Views

HC

Lower Toxicity, Higher Flammability – Changes to system construction MUST be addressed, and reduce charge sizes to mitigate flammability risk;Easier to use in new systems

~3 Good½ to 2 x

R22

Miscible with mineral oils, but should avoid drop-in for safety reasons

* In India over 85% requirement is for air conditioners above 18,000 Btu/hr capacity. No information available on Pilot lot production for these air conditioners* Large Commercial production of below 12000 Btu/hr capacity yet to start though the pilot study is in progress since long* Large refrigerant charge during servicing of above 18000 Btu/hr systems is a serious risk

Unsaturated HFC

Lower Toxicity, Lower Flammability: changes to system construction is necessary (if shifting from R22, few changes from R134a)

~4 Medium >>R22

Very new products, not commercially available yet, many unknown factors

Refer next sheet

Extracts from Summary Report: Barriers to the use of low GWP Refrigerants in Developing Countries & Opportunities to overcome these: UNEP 9

Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

HFO-1234yf REFRIGERANT Extracts from Honeywell Fact Sheet Developed for mobile air conditioning in vehicles Honeywell and Dupont are currently separately preparing

for the commercialization of the product The EU differentiates gases into two categories: highly

flammable and non-flammable. That is why HFO – 1234yf has to be called highly flammable

RAMA Concerns: Not developed for RAC sector. Suitability? Commercialization yet to happen Patented product Extremely high pricing Monopoly of two companies: availability?

10Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

VIABLE OPTIONS FOR

AIR CONDITIONING SUB SECTORS

Sub Sector Application Viable Option

Ductless Room Air Conditioners Home, small offices R -410A (HFC)

Ducted System Institutions, CommercialR- 410A, R-407C (HFCs)

Chiller - Air Cooled Central SystemsR -410A, R-134a (HFCs)

Chiller - Water Cooled Central Systems R -134a (HFC)

Variable Refrigerant Flow(VRF)

Institutions, Commercial R- 410A (HFC)

11Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

VIABLE OPTIONS FOR

REFRIGERATION SUB SECTORS

Sub Sector ApplicationViable Option

Commercial Refrigeration: Potable Water Coolers, Walk-in Coolers, Milk Coolers

Offices, Retail Outlets, Dairies

R-134a, R-404A, R410A (HFCs)

Industrial Refrigeration: Small Appliances: Oil Coolers, Panel Coolers, Refrigeration Air Dryers

Industries R-404A, R-410A (HFCs)

12Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

Over 90% HCFC based Production Capacity: Large investments made in capacity expansion for meeting growing demand during 2005 ~ 07. Investments have to depreciated during short span of five years (2007 ~ 2012) Market Growth & Consumption Control: Non ODS refrigerants requirement shall be 60% in 2013 & 79% in 2015 At present, HFCs are only proven refrigerants: Industry is gearing up to make new investments, product development , production capacities, skill development on HFCs based technologies High GWP of HFCs: Evaluation of refrigerants should be on the basis of Life Cycle Performance and not high GWP alone

CHALLENGES OF CONSUMPTION CONTROLS

13Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

Major tasks to be performed for implementationof consumption controls shall be: Technology tie up / Product development Refurbishing/setting up of new manufacturing, testing, & related production support facilities Vendor development for new components/raw materials Training of technical staff relating to:

- Manufacturing/testing - Servicing (own employees) - Channel partners (distribution/servicing)

Consumer awareness campaigns

All these tasks are to be performed without disturbing present structure to sustain business growth

CHALLENGES OF CONSUMPTION CONTROLS (2)

14Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

CONCLUSIONS (1) HFCs such as R-410A and HFC-134a are the only Technically

proven and Economically viable Alternatives to HCFC-22 for all Air-Conditioning and Refrigeration Applications; however import dependence and high prices are serious concerns

R-290 being highly flammable may be applied for very small capacity units with lot of safety precautions: limited application

There are no other technically proven and economically viable options Available for the industry. Some work is reported on low GWP HFOs and HFC mixtures. The time frame of such R & D work is unknown and may have a number of barriers: Flammability Issues Toxicity issue especially toxicity of products on

dissociation Extremely high pricing Limited availability 15

Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

CONCLUSIONS (2) The phase-out of HCFCs relies only on the use of technically

proven and economically viable solutions ; currently HFCs are the widely used refrigerants to replace HCFCs in most of the developed countries including USA, Japan.

Air-Conditioning Sector is very price sensitive and Refrigeration and Air-conditioning (RAC) Industry is to provide cost effective solutions to cater the needs of Industrial and for GDP growth in the country.

The RAC Industry cannot afford frequent changeovers as it involves huge capital investment

The RAC industry has a very challenging task ahead ; to cater the needs of growing demand and decision of capital investments

16Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011

WAY FORWARD!

Availability of low GWP refrigerants for RAC industry does

not appear viable in the near future

Large capital investments are necessary to switchover and

also to enhance capacity to sustain growth in a growing

economy like India. Comprehensive work is essential to

establish technically proven alternatives at comparable

prices.

Need for a mechanism to fund second transition to low GWP

refrigerants as and when these are viable

17Stakeholders Workshop on HCFC Phase-Out Management Plan (HPMP) - 21,22 Oct 2011