Refrigerant and Energy
Regulations Update
E360 Forum • Chicago, IL • October 5, 2017
Don NewlonVice President/G.M., Food Retail, Cold Chain
Emerson
The Next Four Years Will Be the Most Dynamic Period of Change
in the History of Our Industry
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Supermarket Architecture Trends Begin Here:
the Kigali Amendment to Montreal Protocol
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• October 15, 2016
• “38th Meeting of the Parties to the Montreal Protocol on Substances That Deplete the Ozone Layer”
• Global agreement on HFC phase-down reached by 197 countries of the world in Kigali, Rwanda
Refrigeration Architectures for the Future Are Linked to Global Regulatory Changes in Selecting Refrigerants With Low Ozone Depletion and GWP.
Other Refrigerant Regulation Activity
Current Regulatory Proposals Target 150 GWP for Multiple Applications,
Creating Demand for Refrigerants With GWPs of Less Than 150. 4
Environmental Canada (EC)**:
proposal November 26, 2016
Commercial application GWP limit Date
Refrigeration – centralized
systems (MT/LT racks)1,500 2020
Refrigeration – condensing units 2,200 2020
Refrigeration – LT stand-alone 1,500 2020
Refrigeration – MT stand-alone 700 2020
Foams 150 2021
Mobile refrigeration 2,200 2025
AC – chillers 700 2025
Domestic refrigeration 150 2025
F-Gas (EU): effective May 20, 2014
Commercial application GWP limit Date
Self-contained refrigeration 2,500 2020
Stationary refrigeration 2,500 2020
Self-contained refrigeration 150 2022
Centralized refrigeration 150 2022
– Except top side of cascade 1,500 2022
CARB: Short-lived climate pollutant reduction strategy
— proposal Nov. 28, 2016
Commercial application GWP limit Date
All refrigerant sales 2,500 ?
Non-residential refrigeration 150 ?
AC (non-residential and
residential)
750 ?
** http://www.gazette.gc.ca/rp-pr/p1/2016/2016-11-26/html/reg1-eng.php
• Phase-down (NAP) option also proposed
(2019 — 90%; 2024 — 65%; 2030 — 30%;
2036 — 15%; baseline 2011–2013)
Refrigerants and Regulations:
10 Significant Targets Over The Next 4 Years
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Breaking News: On August 8, 2017, the U.S. Court of Appeals DC Circuit Vacated the EPA’s Foundational 2015 Rule.
2016 2017 2018 2019 2020
Supermarket (Rack)
Walk-In (Remote CDU)
Cooler
Freezer
Reach-In (Stand-Alone)
Cooler <2,200 BTU
>2,200 BTU
Freezer
Ice
Machines
Soft Serve/Frozen Bev.
<2,500 GWP
<2,500 GWP
20–40%
<600 GWP
<1,500 GWP
30–50%
5–15%
1/1/17
1/1/18
3/27/17
1/1/18
7/10/20
1/1/19
1/1/20
20–30%
<600 GWP
1/1/21
DOE published Final Rule
EPA approved (listed) R-452A 7/21/17
7/10/17
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2
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EPA Is Serious About Enforcing Regulations The Consequences Can Be Significant
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Court Ruling:
• The 2015 SNAP ruling (Rule 20) which de-listed certain HFC’s like R404A was struck down by the court.
• The Court ruled EPA had authority to phase out ozone- depleting substances, but not HFCs which are non-ozone depleting.
• If the court’s ruling stands, the 2015 SNAP Rule 20 is vacated altogether.
• The Court issued an order withholding the decision, so the EPA July 2015 SNAP rule is in place until after the rehearing petition is resolved.
Appeal:
• On September 22, 2017 Honeywell and Chemours filed a petition to the Court request a rehearing of the case.
– The Court could deny the rehearing petition or rehear the case.
– No timeline exists on decision whether or not to rehear case but the Court could provide an indication of which way it is leaning by requesting additional briefing.
August 8th Ruling By D.C. Court of Appeals Declares EPA Does Not Have
Authority To Phase Out HFC Refrigerants
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Response & Next Steps:
• In the next few weeks we will have an indication
• Stay tuned for future details on Court process.
• States like California may act to fill the void and potentially create regulations on HFCs.
Development Approach to New Refrigerants
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R-410A
Like
Capacity
R-404A &
R-407/22
Like
R-134a
Like
GWP Level
400–675
< 1,500
~600
~300
HFO 1234yf
HFO 1234ze
ARM-42
R-410A
R-22
R-407A
R-407C
R-407F, R-452A = XP44
ARM-35
0 500 1,000 1,500 2,000
Pressure
or
R-32/HFC/HFO
Blends
R-32/HFO
Blends
HFC/HFO
Blends
R134a
CO2
R-404A
R-507A
DR2, N12, ARC 1
R290
NH3
A1 – Non-Flammable
A2L – Mildly Flammable
A3 – Flammable
R-123 Like
(V. Low Pr.)
(3,922)
R-32
R-32/HFO
Blends
R-448A = N40
R-449A = DR33
R-449B = ARM-32
N20
R-450A = N13
R-513A = XP10
R-444B = L20
L40, DR7
ARM-20b
HDR110
DR3
ARM-20a
R-446A, R447A, ARM-71a
<150
B2L – Toxic, Mildly Flam.
Qualitative — Not to Scale
12013
Legacy22015
32017
A1 – Non-Flammable
A2L – Mildly Flammable
A3 – Flammable
B2L – Toxic, Mildly Flam.
This List Is Subject to Change. Please Contact Emerson Representatives for the Most Current Status.
Likely Refrigerant AlternativesEmerson’s Perspective and Development Path
Volumetric Capacity/
PressureNaturals
Mildly Flammable (A2L)
HFO and Blends
Lowest GWP Non-Flammable
(A1) HFC/HFO BlendsToday’s Non-Flammable (A1) HFCs
Elevated
Medium“R-404A Like”
Low“R-134a Like”
GWP 0–5 0–150 500–1,300 1,300–4,000
R-744 (CO2)1
R-290 (Propane)
3
R-717 (Ammonia)
0
R-455A (HDR-110)
146
R-454C (DR3)
146
HFO-1234yf
<1
HFO-1234ze
<1
R-449A (XP40)
1,282
R-448A (N40)
1,273
R-513A (XP10)
573
R-450A (N13)
547
R-507A
3,985R-407A
1,923
R-134a
1,300
R-407F
1,674
R-407C
1,624
R-404A
3,943
In Production Not SNAP Listed,
Next in Development
Approved or in Development In Production
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R-452A
2,140
Dept. Of Energy Regulations Summary
Energy Mandates Have Evolved To Become Extremely Significant
•Effective March 2017 on New Equipment
•CRE Measured in kWh/24-Hour Day
–Each Equipment Class Assigned
Equation Accounting For Total Display Area
(TDA) or Volume
Industry Reach-In Solid Door Refrigerator Energy Draw
• Effective January 2020 on New Equipment
–MT June 2017: Report AWEF/Label
–MT Jan. 2020: AWEF Enforcement
–LT Jan. 2020: Report/Label/Enforcement
• Measured in 3 Major Components Using
AHRI-1250
• Effective January 2018 on New
Equipment
• ACIM Measured in kWh/100 lbs
Ice
• Each Equipment Class Assigned
Equation
Commercial Refrigeration
Equipment
Walk-In Coolers and
Freezers (WICF)Automatic Commercial
Ice Makers
20% to 86% Energy Reduction Required,
Depending on Class
5% to 25% Energy
Reduction Required
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1.84
Baseline
3.92
“Max
Tech”
4.79
STD
3.12
Final
STD
Each dot represents
an added technology
30% to 37% Energy
Reduction Required
The Markets We Serve Are Significant Consumers of Energy. We Take It Seriously.
Compressors Are the “Engine” of the System
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Industry Preparedness to Meet Compliance Dates
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More Than Half Now Have a Basic Plan in Place, but 80% Are Not Ready for the Change.
Yes52%
Not yet44%
Level of Preparedness:
EPA Plan in Place (n=46) DOE Plan in Place (n=47)
13% 52% 15% 17%
Very prepared Somewhat prepared Only slightly prepared Not at all prepared
15% 45% 19% 17%
Yes57%
Not yet36%
Level of Preparedness:
*Source: Emerson ResearchCR1. Does your company have a plan in place to meet the compliance dates?
CR2. Overall, how would you rate your company on being prepared to meet the compliance dates?
Product: The Majority Expect Components
Will Change Based on the Regulations
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Top-2 Box
CP3. Considering the impacts of meeting the new regulations for the DOE and/or EPA, please indicate the extent to which you agree or disagree with each statement below.
(n=51)
I expect some
components will
change.
I expect some of our
products to become
obsolete.
I expect component
costs to increase.
89%
63%
73%
5 = Completely
Agree4 3 2
1 = Completely
Disagree
77%
53%
51%
12%
10%
22%
10%
14%
20%
2%
10%
4%
14%
4%
(n=51)
Plants: Capital Investments Needed to Meet
DOE Regulations
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40%
32%
11%
6%
11%Most foresee needing
capital investments within their organizations to meet
DOE regulations (72%).
Significant investments in capital
Some investments in capital
Limited investments in capital
No investments in capital
Don’t know (n=47)
CP1. Would you say that DOE regulations are creating a need for your company to make…
People: Resource Planning to Meet DOE Regulations
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The majority plan to use existing internal sources and staff;
however, nearly one-quarter plan to hire additional staff in
order to do so.
(n=47)
CR10. In terms of resources needed for any redesigns in order to meet the new DOE energy efficiency
standards, are you…
47%
21%
6%
6%
2%
17%
Planning to use existing internal resources and have the staff
Planning to use internal resources, but need to hire
Planning to use external resources for the redesigns, and feel confident about it
Would like to use external resources, but unsure who to use
Would like to use external resources, but have some reservations
Does not apply to us
A Resource: E360 Is Helping Making Sense of the
Pressing Regulatory Issues in Refrigeration
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Our Industry’s Approach to Innovation Will Need to Change
• Create and foster an environment of disruptive innovation that can help develop “out of the box or no box” thinkers and doers.
• Encourage holistic thinking, with a global systems point of view that can lead to creative solutions for the ultimate user (customer pain points, today and in the future).
• Foster bold collaboration within Emerson, and with academia and industry partners that leads to novel ways to solve our problems.
• Use stimulating real end-use scenarios that can help the thinking process and turn ideas into solutions that work.
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What Is The Helix Innovation Center?
It is a building which fosters an environment for academia and
industry collaboration. The Helix is dedicated to advancing
research and education in heating, ventilation, air conditioning
and refrigeration technologies.
The Modules The center features interactive real-world environments, or
modules, designed to spur innovation and help advance the
technology used in homes, commercial buildings, supermarkets,
restaurants and data centers.
Home Building Data Lab Kitchen Market Chiller
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Ecosystem Approach to Sustainability
Stakeholder
Technology
Environment
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Environment Trends
Environment
Commercial square footage of retail food space
per capita last year set a record, with 4.15 square
feet of food retail per person, nearly 30 times the
amount of space allocated to groceries at major
chains in 1950
“Click & Collect”
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Evolving Technology
Technology
Direct Expansion
Simple, industry standard technology
Booster Self-Contained
Increases efficiency and enables CO2 (low GWP)
Easy install, simple technology, enables low-charge natural
refrigerants
Fresh
Frozen
Fresh
Frozen
Desuperheater
Fresh
Benefits:
BUT … none of the systems meet all the needs.
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Stakeholder Needs
Serviceable Easy to maintain for new & experienced technicians
Simple Less complexity
Safe Customer safety is paramount
Stable Reliable and efficient
Smart Controls are easy and intuitive to use
Sustainable Addresses energy, environment and economicsStakeholder
Questions?
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Thank You!
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