the case for r-290 in u.s. commercial foodservice · the case for r-290 in u.s. commercial...
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The Case for R-290 in U.S.
Commercial Foodservice
E360 Forum • Chicago, IL • October 5, 2017
Bryan Tonn
Senior Engineering Manager
H&K International
Allen Wicher Director, Marketing — Foodservice
Emerson
This presentation is intended to highlight changing developments in the law and industry topics. The law is frequently evolving and information and publications in this presentation may not reflect the latest changes in the law or legal interpretations. The statements and information provided in this presentation should not be construed as legal advice or legal opinion regarding any specific facts or circumstances, but is intended for general informational purposes only. The views and statements expressed during this presentation are the personal opinions of the presenter and do not represent those of Emerson Climate Technologies, Inc. or its affiliated companies. You should consult an attorney about your situation and specific facts and you should not act on any of the information in this presentation as the information may not be applicable to your situation. Although all statements and information contained herein are believed to be accurate and reliable, they are presented without warranty of any kind. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such use is free of patent infringement and are not recommendations to infringe on any patents. This presentation may not be copied or redistributed without the express written consent of Emerson Climate Technologies, Inc.
Disclaimer
2
Global Market Dynamics
• Smaller Retail Formats
– Deep Urban Markets
– Convenience
– Speed of Delivery
• Millennials
– e-commerce
– Clicks vs. Bricks
• Fresh
– Buy Local
– Natural and Organic
• Sustainability
• Regulations
3
Summary* of EPA’s Refrigerant SNAP Approval and De-listings
4
*Abbreviated – For complete listing, see EPA website.
** Includes ice machines connected to a supermarket rack refrigeration system.
*** EPA uses term “retrofit” to indicate the use of a refrigerant in an appliance that was designed or originally operated using a different refrigerant. Term does not apply to upgrades to existing equipment where the refrigerant is not changed .
Final Rule: July 20, 2015 Final Rule: September 26, 2016
Refrigerant GWP
Super-
market
(New**)
Supermarket
(Retrofit***)
Remote
condensing
unit
(New)
Remote
condensing
unit
(Retrofit***)
Stand-Alone
Refrigerated food
processing and
dispensing
equipment
(New)
Cold storage
warehouses
(New)
Ice machines
(New)
Very low-temp
refrigeration
(New)
MT < 2,200 BTU/hr.
and not contain
flooded evap.
(New)
MT ≥ 2,200
BTU/hr. with or
without flooded
evap.
(New)
LT
(New)
LT and MT
(Retrofit***)
R-404A/507A 3,943 Jan. 1, 2017 July 20, 2016 Jan. 1, 2018 July 20, 2016 Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 July 20, 2016 Jan. 1, 2021 ^Jan. 1, 2023 OK OK
R-452A 2,140 - - OK OK - - - - - - - -
R-410A 2,088 OK - OK - Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 - Jan. 1, 2021 ^Jan. 1, 2023 OK OK
R-407A
R-407C
R-407F
1,923
1,624
1,674
OK OK OK OK Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 OK ^Jan. 1, 2021
R-407A:
^Jan. 1, 2023
R-407C/F OK
OK R-407C only
HFC-134a 1,300 OK OK OK OK Jan. 1, 2019 Jan. 1, 2020 OK OK OK OK OK -
R-448A
R-449A1,282
1,296OK OK OK OK
Neither SNAP-
approved, nor banned
Neither SNAP-
approved, nor bannedOK
OK for
LT only- - OK -
R-513A
R-450A573
547OK OK OK OK OK OK OK OK OK OK OK -
R-290 3 - - - - OK OK OK - - - OK OK
R-744 1 OK - OK - OK OK OK - OK OK - OK
R-717 0
OK (in primary loop
of secondary
system)
-
OK (In primary loop
of secondary
system)
-OK
(in primary loop of
secondary system)
OK (in primary loop of
secondary system)
OK (in primary loop of
secondary system)
OK (in primary loop of
secondary system)
OK (in primary loop of
secondary system)
OK OK -
Refrigerant Change Being Driven by Regulations and Voluntary Actions
5
Global Regulatory Actions to Ban High-GWP Refrigerants Place Renewed Emphasis on Natural Alternatives.
Organizations
Montreal Protocol Targets Ozone
Depletion (R-22) Signed in 1987North American Proposal
Targets CO2 Emissions
(High Global Warming)
F-Gas RegulationCarbon Tax
HFC Ban & Tax
INTERGOVERNMENTAL PANEL ON
climate change
Regulations
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
6
R-452A
2,140
R-404A and R-290 EER Comparison
7
R-290 Yields 20%+ Better EER Efficiency Over R-404A.
Results from Emerson’s compressor test labs, comparing the Energy Efficiency Ratio (EER) of R-404A to R-290 in medium and low back pressure (MBP), show a significant improvement when using R-290.
+10%
+21%
+13%
+23%
+22%
+22%
Industry Efforts Are Increasing Around Flammable Refrigerants
8
Building Codes for Mildly Flammable (A2Ls) Refrigerants Eligible for
Fast-Track Adoption in 2018–2021 ICC Building Code Cycle
AHRI Flammable Refrigerants Research Subcommittee
• Identify gaps in flammable refrigerant research
• Develop road map to complete critical research for safe use
• Focus on A2L and A3 refrigerants
• Pushing for closure on items by end of 2017
Underwriters Laboratory and ASHRAE
• Safety standards under revision to include mildly flammable refrigerant (A2L) accommodations
• Charge increase proposal for A3 and A2L
• Targeting end of CY 2017– U.S.: UL 1995, ASHRAE 15, 34
– International: ISO 5149, IEC 60335, EN378
U.S. EPA SNAP-Approved End Use Applications for R-290Increasing Charge Limits and Resulting Codes/Standards, Revisions Evolving
9
ASHRAE/UL Working With Industry on Flammable Research Sub-Cmte. and Completing Charge Limit Increase and Safety Standards Proposal.
Effectivity of an R-290 Charge Limit Increase Could be 2018 for Stand-Alone Equip.
R-290: U.S. 300–500 gram charge limit in proposal
A2L: U.S. 1 kg charge limit in proposal IEC/UL/ASHRAE/ICC:
1/8HP 1/6 1/4 1/3 1/2
Domestic Refrigerators (53g)
Vending Mach.
Bev. Dispensers
UC/Prep
Bottle Coolers
3/4 1
1DS 1DG 2DS 3DS 3DG
X = Applications Not Approved by EPA SNAP Final Rule
X
Ice
Walk-Ins (Remote)
Commercial Reach-Ins
X2DG
150g Charge Limit Current
Larger Units Achievable With Multiple Systems
300+ g Charge Limit in ProposalIn Proposal
(stand-alone, OK)
R-290 U.S. Stand-Alone End Use Applications Did You Know?...
10
EPA
UL 427 Charge
Limits
DOE
Waivers
End Use SNAP-Approved
Can use multiple 150g. refrig.
systems in a single appliance
End Use SNAP-Approved
Can use multiple 150g refrig. systems in
a single appliance.
Must mitigate 150g to 300g charge:
a. WICF volume min. per SA3.3.1 OR
b. Refrigerant detection per SA4.3 AND
c. Class 1, Div. 2 components
Test Procedure Exists
Waiver not needed
Test Procedure Does Not Exist
Yes, OEM needs DOE waiver approval
to sell.
Be Sure to Consult Authority Having Jurisdiction (AHJ) for Additional Code/Standard Requirements Before Installing.
Store Type and
Surface Area (ft²)Trend Architecture and Refrigerant Toward 2020
Warehouses and
Large Supermarkets
>40k ft²
Medium-Size Supermarkets
10k to 40k ft²
Small Supermarkets and
Hard Discounts
6k to 10k ft²
C-Stores
1.2k to 6k ft²
Restaurants
<1.2k ft²
Refrigerant and Architecture Decisions in Context of Store Format
Centralized Architecture: NH3, Cascade and Booster CO2
Centralized: HFO/CO2 or Booster CO2
Centralized: HFO or CO2 Distributed HFO or CO2 Integrated Display Cases R-290
Integrated Display Cases R-290/Plug-Ins
Integrated Display Cases R-290
Semi-Centralized/Distributed HFO or CO2
Distributed HFC/HFO/CO2
Distributed HFC/HFO Multiple Units
11
The Recent Evolution of R-290
• AHT began exploring natural refrigerants for
self-contained in the 1990s
• Began serial production with R-290 in early
2000s
• More than 500,000 installations globally
• Thousands of installs all over North America
• Many other manufacturers online in recent years,
with others to follow
12
Flammable Refrigerants Create Challenges
Refrigerants Approved by the EPA Under Significant New Alternatives
Policy (SNAP)
Limitations
• No retrofitting of equipment to R-290 allowed, only new equipment
• Stand-Alone Equipment Only
• Charge Limit of 150 Grams (5.3 Ounces)
• Currently No Formalized Certification of Service Technicians Required
• No Channel Developed for Service Replacements for Compressors
• AHJ (Authority Having Jurisdiction)
– Local Authorities Such as State, Local, as Well as Fire Marshals May Have Other
Restrictions
R-290 (Propane)
R-600a (Isobutane)
R-441A (a blend)
Guideline for technicians
with info on best practices
Servicing Infrastructure Needs Development;
Be Sure to Check AHJ Before Installing Equipment. 13
R-290 Servicing
• Specialized Training for R-290 Is Not Required, but Highly Recommended
– Refrigeration Service Engineers Society, RSES.org
• Flammable Refrigerant Leak Detector Required
– Leave on While Servicing
• Place Safety Placard Advising No Smoking or Open Flames
• R-290 May Be Recovered, But Is Not Required. It Can Be Vented to the Atmosphere.
• Adhere to Proper Brazing Recommendations
• Charging Procedures Are Same for R-290 as HFC Refrigerants
• Copeland Has Published Service Bulletins for Use
• Wholesaler R-290 Stocking Plan Templates for Compressor and Units Can Be
Established Upon Request
Adherence to Servicing Procedures a Must.
Wholesaler R-290 Stocking Plans Can Be Accommodated. 14
The Case for R-290 in U.S.
15
Charge Limit Increase in U.S. Will Bring a Revision Iteration of All Regulations Impacted.
Advantages• Hydrocarbon-based, non-synthetic
substance
• EPA-approved in commercial refrigeration applications
• Very low environmental impacts: GWP = 3; ODP = 0
• High-efficiency, high-performance, reliable
• LT and MT applications that address EPA and DOE compliance challenges
• Safe when proper protocols and procedures are followed
• Hydrocarbons can be used in multiple applications such as secondary systems, self-contained cases and condensing units
Challenges• Classified A3 flammable refrigerant
• Not a “drop-in” refrigerant; equipment and components designed for R-290
• Globally mandated low-charge limits of 150g restrict application range
• Difficulty getting approved in fire and building codes
• Lack of trained and certified technicians
• Market is currently missing a complete product and safety training course
• Charge limit, safety and related legislations/regulations are the key areas to address for hydrocarbons
The Case for R-290 in U.S.
Commercial Foodservice —
An H&K Story
E360 Forum • Chicago, IL • October 5, 2017
Bryan TonnSenior Engineering Manager H&K International
H&K International
• Kitchen equipment supplier for commercial food service industry
• Started in 1975
• Turnkey operation
• Corporately based in Ireland, with engineering and manufacturing in:
– Mesquite, TX
– Rugby, UK
– Jakarta, Indonesia
– San Luis Potosi, Mexico
• 1,500 employees worldwide with 12 distribution centers globally, and sales support on six continents
• Servicing McDonalds, Braum’s, Burger King, Chipotle, IHOP, KFC, Whataburger, Costco, Popeye’s, Subway, and others
• Ships to more than 102 countries annually
17
The Case for R-290 — An H&K Story
• What challenges did H&K face relating to refrigerants?
• What factors did H&K consider when making a refrigerant change?
• What influenced H&K’s decision to use R-290?
• What challenges did H&K have with R-290?
• What were H&K’s end results with R-290?
17
What Were the Challenges?
• Customer requirements for lower-GWP refrigerants
• 2017 DOE regulations and efficiency limits of existing refrigerants
• EPA/SNAP and de-listing of existing refrigerants
• Manufacturing with multiple refrigerants
• International and domestic marketplaces
• Competition in the marketplace
19
• Regulatory
• Energy
• Customer requirements
• Engineering resources
• Manufacturing
• Cost
• Safety
• Availability
• Global market consideration
• Long-term plan
What Were the Factors?
20
Major Influences
21
Experience in Europe
Environmental Impact
Impacts of Future Rulings
Energy Savings
Industry Trends
Customer Requests
Major Influences (cont’d.)
22
Experience in Europe
Environmental Impact
Impacts of Future Rulings
Energy Savings
Industry Trends
Customer Requests
R-290
R-290 Design Challenges
• Design
– Component selection and layout
• Separate electrical and refrigerant-carrying components
• Minimize copper tubing runs
– Very sensitive charge
• 5g can be critical
– Limits with 150g charge
• Limited to ½-HP low-temp application
• Multiple refrigerant circuits challenging
– Safety certifications
• Additional requirements to meet UL471, SB1
24
R-290 Supply Chain and Manufacturing Challenges
• Supply Chain
– Component lead time and availability
– Inventory control/change-over
• Manufacturing
– Improved leak detection
– Dedicated charging system
– Multiple refrigerant product lines
25
http://www.galileotp.com/products
R-290 Service Challenges
• Service
– Certified technicians
• Shortages already
• Process changes specific for propane
– Design for service
• Mobile units
• Cartridge design
26
R-290 Customer Challenges
• Customers
– Education/direction
• New for most customers
• Leadership required
– Communication
• Why are we doing this?
• When will they start seeing these?
• How will they know it is R-290?
27
• Performance Impact of R-290
– 36% (avg.) energy savings with R-290
change only
– Additional savings from other changes possible
• Cost Savings Impact of R-290
– $168K in utility costs in Europe since 2013
• Additional $151K in Europe over the
next three years
• $50K each year units stay in operation
– Projected $769K savings for U.S. over
next three years
R-290 Results
28
Questions?
DISCLAIMER
Although all statements and information contained herein are believed to be accurate and reliable, they are presented without guarantee or warranty of any kind, expressed or
implied. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments, and the user assumes all risks and liability for
use of the information and results obtained. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such
use is free of patent infringement and are not recommendations to infringe on any patents. The user should not assume that all toxicity data and safety measures are indicated
herein or that other measures may not be required.
Thank You!
29
Allen Wicher
Emerson
Director, Marketing — Foodservice
937-493-2496
Bryan Tonn
H&K International
Senior Manager — Engineering
214-818-3580
• Court Ruling
• Mexichem and Arkema challenged the EPA’s SNAP refrigerant delisting in the D.C. Circuit Court of Appeals arguingi. the EPA had no authority under
the Clean Air Act Section 612 to require the replacement of HFCs
• Court ruled in favor 2:1 against the EPA and found that Section 612 only had congressional authority to phase out ozone-depleting substances and not HFCs, which are non-ozone depleting substances and deciding that– the July 2015 SNAP rule 20 is
vacated or eliminated altogether
– 45-day appeals window is open
• Response and Next Steps
• There will likely be appeals by chemical companies in the next 45 days for various reasons at the Circuit Court of Appeals and/or Supreme Court.
– The court could possibly grant a “stay” of the rule while the appeals process proceeds that would continue the refrigerant delisting’s as it stands.
– Successful appeals could take up to a year.
• States like California may act to fill the void and potentially create regulations on HFCs.
• AHRI and other industry bodies have yet to officially respond to this.
July 15, 2015 — EPA SNAP Rule Delisting Refrigerants for Commercial
Refrigerants Vacated per Court Order Decided August 8, 2017
30
Emerson Position
Message
• Emerson maintains neutrality on this court ruling.
• Emerson serves globally, and lower-GWP refrigerants are required investments.
• Emerson serves as an HVACR industry leader and will continue to provide compression technologies qualified for lower-GWP refrigerants, including:
– R-448A, R-449A, R-450A, R-513A and R-290
– R-452A is actively being planned for.
Customer FAQ
• Am I (remote CDU) going to be affected starting 1.1.18?
–Unclear at the moment, given there will likely be an appeal within the 45-day window.
–The court may or may not grant a “stay” of the rule that can affect the date of impact.
• What should I plan for now?
–Continue qualifying for alternative refrigerants, given uncertainty on the appeals process.
31
Other Refrigerant Regulation Activity
Current Regulatory Proposals Target 150 GWP for Multiple Applications,
Creating Demand for Refrigerants With GWPs of Less Than 150. 33
Environmental Canada (EC)**:
proposal November 26, 2016
Commercial application GWP limit Date
Refrigeration – centralized
systems (MT/LT racks)1,500 2020
Refrigeration – condensing units 2200 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 (comments Jan. 17, 2017)
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
Comment period ended Feb. 8, 2017.
• Phase-down (NAP) option also proposed
(2019 — 90%; 2024 — 65%; 2030 — 30%;
2036 — 15%; baseline 2011–2013)
Alternatives for Refrigerant Applications
34
Watch: EPA SNAP, AHRI’s A2L Research, Standards and Code Committees, Equipment Manufacturers’ New Product Launches, CARB Proposal (<150 GWP)
Environment
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
R410A
R-22
R-407A
R-407C
R-407F, R-452A
0 500 1,000 1,500 2,000
Pressure
or
R32/HFC/HFO
Blends
R-32/HFO
blends
HFC/HFO
BlendsR-134a
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
R-449A
R-450A
R-513A
R-444B = L20
L40, DR7
ARM-20b
HDR110
DR3
ARM-20a
R-446A, R-447A, ARM-71a
<150
B2L – Toxic, mildly flam. Qualitative; not to scale
EstablishedAvailable nowOEMs testing
Foodservice Channel and Business Dynamics
35
Customers Balancing Four Basic Variables for Their Businesses.
0
50
100
150
200
250
HFC CO₂
Component electronics are a larger spend
% of top 50 retailers testing
refrigerant alternatives
$K
6%
83%
0%
20%
40%
60%
80%
100%
2010 2015
Optional
Mechanical
Electronics
0%
20%
40%
60%
80%
100%
Sales % Margin %
Fuel andtobacco
Food and bev.
Other
C-stores targeting foodservice for growth
DOE regulations require
new system designs
Now '17 Now '18 Now '20
% E
ne
rgy -37%-35%
-17%
Reach-In Ice Walk-In
Where We Are: Energy Regulations and Refrigerants
36
Redesigns Are Widespread. Results Require System-Wide Optimization.
Today 2019
EPA refrigerants
Low-GWP blend
CO2
Low GWP Blend
R-290
R-404A
R-290
Low-GWP blend
% M
ark
et
100%
40%
100%
50%
Today 2017 Today 2018 Today 2017
0
20
40
-37%-35%
-17%-25%
Today 2017
SupermarketCA Title 24
Walk-inIceReach-in
DOE energy
% E
ne
rgy
2012 2013Today 2018 Today 2020
Compliance Will Not Be Easy
CARB: All Commercial Refrigeration <150 GWP, Effective Date TBD.
Natural Refrigerant Options Can Be Applied to All Commercial Applications Listed Here.
EPA Refrig. DOE Energy
2017 2018 2019 2020 2021
Supermarket (Rack)
Walk-In (Remote CDU)
Cooler
Freezer
Reach-In (Stand-Alone)
Cooler <2,200 BTU
>2,200 BTU
Freezer
Ice Machine
Dispensing
<2,500 GWP
<2,500 GWP
20–40%
<600 GWP
<600 GWP
<1,500 GWP
30–50%
5–15%
1/1/17
1/1/18
3/27/17
1/1/18
R-290 approved
1/1/20
1/1/19
1/1/20
20–30%
<1,500 GWP
36
Refrigerant and Minimum Energy Efficiency Regulations
Require Industry to Balance the Equation in U.S.
38
Seek Best Solution for End Users
• Reduce energy consumption with optimized refrigeration equipment system performance.
• Ensure EPA compliance and reduce GWP with refrigerant choices that minimize impact to equipment performance.
• Preserve reliability, serviceability and safety. Understand the toxicity, flammability and pressure implications.
• Estimate the total cost of ownership and viability of technology changes.