The Case for R-290 in U.S. Commercial Foodservice

Transcription

1 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

2 Disclaimer 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. 2

3 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

4 Summary* of EPA s Refrigerant SNAP Approval and De-listings Final Rule: July 20, 2015 Final Rule: September 26, 2016 Refrigerant GWP Supermarket (New**) Supermarket (Retrofit***) Remote condensing unit (New) Remote condensing unit (Retrofit***) MT < 2,200 BTU/hr. and not contain flooded evap. (New) Stand-Alone MT 2,200 BTU/hr. with or without flooded evap. (New) LT (New) LT and MT (Retrofit***) Refrigerated food processing and dispensing equipment (New) Cold storage warehouses (New) Ice machines (New) Very low-temp refrigeration (New) 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, OK OK R-410A 2,088 OK - OK - Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 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-449A 1,282 1,296 OK OK OK OK Neither SNAPapproved, nor banned approved, nor Neither SNAP- banned OK OK for LT only - - OK - R-513A R-450A OK OK OK OK OK OK OK OK OK OK OK - R OK OK OK OK OK R OK - OK - OK OK OK - OK OK - OK R 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 (in primary loop of (in primary loop of secondary system) secondary system) OK (in primary loop of secondary system) OK OK - *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. 4

5 Refrigerant Change Being Driven by Regulations and Voluntary Actions Regulations Organizations Montreal Protocol Targets Ozone Depletion (R-22) Signed in 1987 North American Proposal Targets CO 2 Emissions (High Global Warming) INTERGOVERNMENTAL PANEL ON climate change HFC Ban & Tax Carbon Tax F-Gas Regulation Global Regulatory Actions to Ban High-GWP Refrigerants Place Renewed Emphasis on Natural Alternatives. 5

6 Likely Refrigerant Alternatives Emerson s Perspective and Development Path A1 Non-Flammable A2L Mildly Flammable A3 Flammable B2L Toxic, Mildly Flam. Volumetric Capacity/ Pressure Naturals Mildly Flammable (A2L) HFO and Blends Lowest GWP Non-Flammable (A1) HFC/HFO Blends Today s Non-Flammable (A1) HFCs Elevated R-744 (CO 2 ) 1 Medium R-404A Like R-290 (Propane) 3 R-717 (Ammonia) 0 R-455A (HDR-110) 146 R-454C (DR3) 146 R-449A (XP40) 1,282 R-448A (N40) 1,273 R-407C 1,624 R-452A 2,140 R-407A 1,923 R-407F 1,674 R-507A 3,985 R-404A 3,943 Low R-134a Like HFO-1234yf <1 HFO-1234ze <1 R-513A (XP10) 573 R-450A (N13) 547 R-134a 1,300 GWP ,300 1,300 4,000 In Production Not SNAP Listed, Next in Development Approved or in Development In Production This List Is Subject to Change. Please Contact Emerson Representatives for the Most Current Status. 6

7 R-404A and R-290 EER Comparison +22% +23% +13% +10% +22% +21% 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. R-290 Yields 20%+ Better EER Efficiency Over R-404A. 7

8 Industry Efforts Are Increasing Around Flammable Refrigerants 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 Building Codes for Mildly Flammable (A2Ls) Refrigerants Eligible for Fast-Track Adoption in ICC Building Code Cycle 8

9 U.S. EPA SNAP-Approved End Use Applications for R-290 Increasing Charge Limits and Resulting Codes/Standards, Revisions Evolving X = Applications Not Approved by EPA SNAP Final Rule Domestic Refrigerators (53g) UC/Prep X Vending Mach. Bev. Dispensers 150g Charge Limit Current In Proposal Larger Units Achievable With Multiple Systems 300+ g Charge Limit in Proposal Bottle Coolers Ice Commercial Reach-Ins 1DS 1DG 2DS 2DG 3DS 3DG X Walk-Ins (Remote) (stand-alone, OK) HP 1/8 1/6 1/4 1/3 1/2 3/4 1 IEC/UL/ASHRAE/ICC: R-290: U.S gram charge limit in proposal A2L: U.S. 1 kg charge limit in proposal 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. 9

10 R-290 U.S. Stand-Alone End Use Applications Did You Know?... EPA UL 427 Charge Limits DOE Waivers End Use SNAP-Approved Can use multiple 150g. refrig. systems in a single appliance Test Procedure Exists Waiver not needed 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 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. 10

11 Refrigerant and Architecture Decisions in Context of Store Format Store Type and Surface Area (ft²) Warehouses and Large Supermarkets Trend Architecture and Refrigerant Toward 2020 Centralized Architecture: NH 3, Cascade and Booster CO 2 >40k ft² Medium-Size Supermarkets 10k to 40k ft² Centralized: HFO/CO 2 or Booster CO 2 Semi-Centralized/Distributed HFO or CO 2 Small Supermarkets and Hard Discounts Centralized: HFO or CO 2 Distributed HFO or CO 2 Integrated Display Cases R-290 6k to 10k ft² C-Stores Distributed HFC/HFO/CO 2 Integrated Display Cases R-290/Plug-Ins 1.2k to 6k ft² Restaurants Distributed HFC/HFO Multiple Units Integrated Display Cases R-290 <1.2k ft² 11

12 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

13 Flammable Refrigerants Create Challenges Refrigerants Approved by the EPA Under Significant New Alternatives Policy (SNAP) Guideline for technicians with info on best practices R-290 (Propane) R-600a (Isobutane) R-441A (a blend) 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 Servicing Infrastructure Needs Development; Be Sure to Check AHJ Before Installing Equipment. 13

14 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

15 The Case for R-290 in U.S. 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 Charge Limit Increase in U.S. Will Bring a Revision Iteration of All Regulations Impacted. 15

16 The Case for R-290 in U.S. Commercial Foodservice An H&K Story E360 Forum Chicago, IL October 5, 2017 Bryan Tonn Senior Engineering Manager H&K International

17 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

18 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

19 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

20 What Were the Factors? Regulatory Energy Customer requirements Engineering resources Manufacturing Cost Safety Availability Global market consideration Long-term plan 20

21 Major Influences Experience in Europe Impacts of Future Rulings Energy Savings Industry Trends Customer Requests Environmental Impact 21

22 Major Influences (cont d.) Experience in Europe Impacts of Future Rulings Energy Savings R-290 Industry Trends Customer Requests Environmental Impact 22

23 R-290 Challenges Design Supply chain and manufacturing Service Customers 22

24 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

25 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

26 R-290 Service Challenges Service Certified technicians Shortages already Process changes specific for propane Design for service Mobile units Cartridge design 26

27 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

28 R-290 Results Performance Impact of R % (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 28

29 Thank You! Allen Wicher Emerson Director, Marketing Foodservice Questions? Bryan Tonn H&K International Senior Manager Engineering 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. 29

30 BACKUP 30

31 July 15, 2015 EPA SNAP Rule Delisting Refrigerants for Commercial Refrigerants Vacated per Court Order Decided August 8, 2017 Court Ruling Mexichem and Arkema challenged the EPA s SNAP refrigerant delisting in the D.C. Circuit Court of Appeals arguing i. 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 ozonedepleting 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. 30

32 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 ? 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

33 Other Refrigerant Regulation Activity F-Gas (EU): effective May 20, 2014 Commercial application GWP limit Date Self-contained refrigeration 2, Stationary refrigeration 2, Self-contained refrigeration Centralized refrigeration Except top side of cascade 1, 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? Environmental Canada (EC)**: proposal November 26, 2016 Commercial application GWP limit Date Refrigeration centralized systems (MT/LT racks) 1, Refrigeration condensing units Refrigeration LT stand-alone 1, Refrigeration MT stand-alone Foams Mobile refrigeration 2, AC chillers Domestic refrigeration Phase-down (NAP) option also proposed ( %; %; %; %; baseline ) ** AC (non-residential and residential) 750? Comment period ended Feb. 8, Current Regulatory Proposals Target 150 GWP for Multiple Applications, Creating Demand for Refrigerants With GWPs of Less Than

34 Alternatives for Refrigerant Applications Environment Pressure or capacity R-410A like CO 2 A1 Non-flammable A2L Mildly flammable R-446A, R-447A, ARM-71a R-32/HFO blends R-32 A3 Flammable B2L Toxic, mildly flam. Available now OEMs testing Qualitative; not to scale R410A Established R-404A & R-407/22 like NH 3 R290 <150 ~300 HDR110 DR3 ARM-20a R-444B = L20 L40, DR7 ARM-20b R-32/HFO blends R-448A R-449A < 1,500 R32/HFC/HFO Blends R-22 R-407A R-407C R-407F, R-452A R-404A R-507A (3,922) R-134a like R-123 like (v. low pr.) HFO 1234yf HFO 1234ze ARM-42 DR2, N12, ARC 1 ~600 HFC/HFO Blends R-450A R-513A R-134a ,000 1,500 2,000 GWP level Watch: EPA SNAP, AHRI s A2L Research, Standards and Code Committees, Equipment Manufacturers New Product Launches, CARB Proposal (<150 GWP) 34

35 % Energy Foodservice Channel and Business Dynamics DOE regulations require new system designs -35% -17% -37% 100% 80% 60% 40% % of top 50 retailers testing refrigerant alternatives 83% Now '17 Now '18 Now '20 Reach-In Ice Walk-In 20% 0% 6% C-stores targeting foodservice for growth $K Component electronics are a larger spend 100% 80% Food and bev Optional Electronics 60% Other % 20% Fuel and tobacco Mechanical 0% Sales % Margin % 0 HFC CO₂ Customers Balancing Four Basic Variables for Their Businesses. 35

36 % Market % Energy Where We Are: Energy Regulations and Refrigerants DOE energy Reach-in Ice Walk-in Supermarket CA Title % -17% -37% -25% 0 Today 2017 Today 2018 Today EPA refrigerants 50% 100% Low GWP Blend 100% Low-GWP blend Low-GWP blend 40% R-404A R-290 R-290 CO 2 Today 2019 Today 2017 Today 2018 Today 2017 Redesigns Are Widespread. Results Require System-Wide Optimization. 36

37 Compliance Will Not Be Easy EPA Refrig. DOE Energy Supermarket (Rack) 1/1/ <2,500 GWP Walk-In (Remote CDU) Cooler Freezer 1/1/18 <2,500 GWP 20 40% 20 30% 1/1/20 Reach-In (Stand-Alone) 30 50% Cooler <2,200 BTU 3/27/17 <600 GWP >2,200 BTU 1/1/19 <600 GWP Freezer <1,500 GWP Ice Machine Dispensing 5 15% 1/1/18 R-290 approved 1/1/20 <1,500 GWP CARB: All Commercial Refrigeration <150 GWP, Effective Date TBD. Natural Refrigerant Options Can Be Applied to All Commercial Applications Listed Here. 36

38 Refrigerant and Minimum Energy Efficiency Regulations Require Industry to Balance the Equation in U.S. 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. Seek Best Solution for End Users 38