GUIDE TO THE F-GAS REGULATION (EC 517/2014)

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GUIDE TO THE F-GAS REGULATION (EC 517/2014) Mexichem Fluor has been an active supporter of an appropriate revision to the previous EU F-Gas regulation (EC 842/2006) and believes that, while not ideal, the new F-Gas regulation (EC 517/2014) is workable and enables s to continue to be used while at the same time encouraging the use of lower GWP products. Mexichem Fluor will continue to support the implementation of the new regulation and help our customers to enhance their understanding of how the regulation affects them and provide guidance on making the right choice (technically and environmentally) going forward. This short guide is intended to be an aid to our customers in understanding the key facts about the new regulation and will be further updated if and when relevant new information becomes available. In addition our Mexichem Fluor sales team are ready to answer any question that you may have.

Summary of 2014 F-Gas Regulation (EC 517/2014) The new F-Gas regulation came into force in June 2014 and includes the gradual phase down in the placing on the market of hydrofluorocarbons (s) in the European Union. 100 100 93 % of baseline 90 80 70 60 63 50 45 40 30 20 31 24 21 10 0 2015 2016-17 2018-20 2021-23 2024-26 2027-29 2030 o o To implement the phase down, the Commission will allocate quotas (based on GWP) to Mexichem Fluor and the other individual producers and importers for placing the s on the market. The quota allocation to Mexichem Fluor and the other individual companies will be based on the quantities of hydrofluorocarbons they have produced or imported during the previous reference period. 11% of the quota allocation wil be set aside for new market entrants. The regulation exempts certain critical uses from the scope of the phase down, for example, in cases such as asthma metered dose inhalers and for military equipment. o The phase down will be supported by a number of product, equipment, service and maintenance bans (See table 2). The regulation strengthens the existing measures relating to the containment of fluorinated gases through recovery, leak reduction and repair, in addition to minimum training and certification requirements for companies and personnel working with equipment containing fluorinated gases. The regulation also includes restrictions on the use of recycled and reclaimed refrigerants. If you would like more information on this please contact the Mexichem Fluor sales team.

Table 1 Global Warming Potential (GWP) values for Mexichem s current range of KLEA refrigerants under the F-Gas Regulation. KLEA Refrigerant Typical applications 134a GWP above 150 32 Composition 143a 125 23 PFC 116 GWP (Tes CO 2 e) KLEA 32 Low and medium temperature refrigeration and air conditioning 100% 675 GWP above 750 KLEA 134a Medium temperature refrigeration and air conditioning 100% 1430 GWP above 1500 KLEA 407C KLEA 410A KLEA 407A Medium and high temperature chilling, refrigeration and air conditioning Medium and high temperature refrigeration and air conditioning Medium and low temperature refrigeration 52% 23% 25% 1774 50% 50% 2088 40% 20% 40% 2107 GWP above 2500 KLEA 404A Low temperature refrigeration applications 4% 52% 44% 3922 KLEA 507 KLEA 508 KLEA 23 Low temperature refrigeration applications Very low temperature biomedical applications Ultra low temperature refrigeration 50% 50% 3985 39% 61% 13214 100% 14800 Mexichem Fluor is developing a range of lower and low GWP refrigerants, for further information on these please contact your Mexichem Fluor sales representative

Table 2 Schematic of how the bans and prohibitions under the F-Gas Regulation effect the use of KLEA refrigerants in the different sectors and subsectors Ban or Prohibition 2014 2015 2016 2017 2018 2019 Refrigeration Equipment Domestic refrigerators and freezers containing s with a GWP of 150 or more from 1st January 2015 Refrigerators and freezers for commercial use (hermetically sealed) that contains s with a GWP of 2500 or more from 1st January 2020 and with a GWP of 150 or more from 1st January 2022 KLEA 507 Stationary refrigeration equipment that contains or relies upon for its functioning s with a GWP of 2500 or more from 1 January 2020 KLEA 507 Stationary refrigeration equipment that is intended for applications designed to cool products to temperature below 50 o C. No ban or prohibition Centralised refrigeration systems for commercial use with a capacity of 40kW or more using fluorinated gases with a GWP of 150 or more, from 1 January 2022 Primary circuit cascades of centralised refrigeration systems for commercial use with a capacity of 40kW or more using fluorinated gases with GWP of 1500 of more, from 1 January 2022 Centralised refrigeration systems for commercial use with a capacity of less than 40kW. No ban or prohibition

Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 + Refrigeration Equipment KLEA 23 KLEA 508 KLEA 32 KLEA 507

Ban or Prohibition 2014 2015 2016 2017 2018 2019 AC Equipment Movable room air-conditioning appliances (hermetically sealed) that contain s with GWP of 150 or more from 1 January 2020 Single split air-conditioning systems containing LESS than 3 kg of F-gases that contain F-gases with a GWP of 750 or more from 1 January 2025 Single split air-conditioning systems containing MORE than 3 kg of F-gases. No ban or prohibition Extruded polystyrene foams that contain s with a GWP of 150 or more, from 1 January 2020, except when required to meet national safety standards Other foams that contain s with a GWP of 150 or more, from 1 January 2023, except when required to meet national safety standards Technical aerosols that contain s with a GWP of 150 or more from 1 January 2018, except when required to meet national safety standards or when used for medical applications Foams Technical Aerosols Servicing and Maintenance of Refrigeration Equipment The use of fluorinated greenhouse gases with a GWP> 2500 to service or maintain refrigeration equipment with a charge size of 40 tonnes of CO 2 equivalent or more, shall be prohibited from 1 January 2020 KLEA 507 The use of fluorinated greenhouse gases with a GWP> 2500 to service or maintain military refrigeration equipment. No ban or prohibition The use of fluorinated greenhouse gases with a GWP> 2500 to service or maintain refrigeration equipment designed to cool products to temperatures below -50 C. No ban or prohibition

Year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 + AC Equipment KLEA 32 Foams KLEA 32 Technical Aerosols Servicing and Maintenance of Refrigeration Equipment KLEA 23 KLEA 508

This guide outlines Mexichem Fluor s understanding of the F-Gas regulation at the time of going to press, it is not a definitive statement of how the regulations will be implemented. As there is the possibility of a number of implementing and delegated acts the information contained in this guide maybe subject to change. Information contained in this publication or is otherwise supplied to Users is believed to be accurate and given in good faith, but it is for the User to satisfy itself of the suitability for its own particular purpose. Mexichem Fluor gives no warranty as to the fitness of the product for any particular purpose and any implied warranty or condition (statutory or otherwise) is excluded except to the extent that such exclusion is prevented by law. Mexichem Fluor accepts no liability for loss or damage (other than death or personal injury caused by defective product, if proved), resulting from reliance on this information. Freedom under Patent, Copyright and Design cannot be assumed. KLEA and Mexichem are Trademarks of Mexichem SAB de C.V. Mexichem UK Limited is registered in England No. 07088219. Mexichem Fluor 2014. Not to be reproduced without the consent of the copyright owner. Contact details : Stephanie Reiss Regional Sales Manager Mexichem UK Ltd France E-mail: stephanie.reiss@mexichem.com Tel: +33 648 925 994 Martyn Cooper Regional Sales Manager Mexichem United Kingdom E-mail: martyn.cooper@mexichem.com Tel: +44 (0) 7860 378766 Dr. Karsten Schwennesen Sales Manager Mexichem UK Ltd Germany E-mail: Karsten.Schwennesen@mexichem.com Tel: +49 69 5000 6740 Fax: +49 69 5000 6741 Stuart Corr Research Fellow Mexichem United Kingdom E-mail: stuart.corr@mexichem.com Tel: +44 (0)1928 51 8811 Fax: +44 (0)1928 51 8818 KLEA is a registered trademark of Mexichem Fluor. www.mexichemfluor.com Mexichem UK Limited, The Heath Business & Technical Park, Runcorn, Cheshire, WA7 4QX Tel: +44 (0) 1928 514840 E-mail: info@mexichem.com Disclaimer Information contained in this publication, or as otherwise supplied to the Users is believed to be accurate and given in good faith, but it is for the User to satisfy itself of the suitability for its own particular purpose. Mexichem Fluor gives no warranty as to the fitness of the Product for any particular purpose and any implied warranty or condition (statutory or otherwise) is excluded except to the extent that such exclusion is prevented by law. Mexichem Fluor accepts no liability for loss or damage (other than that arising from death or personal injury caused by defective product, if proved), resulting from reliance on this information. Freedom under Patent, Copyright and Design cannot be assumed. KLEA and Mexichem are trademarks of Mexichem SAB de C.V. Mexichem Fluor 2014. All rights reserved. Not to be reproduced without the consent of the copyright owner.