budapest, 19th october 2015 hilde dhont environment research center daikin europe examples of...

Budapest, 19th October 2015 Hilde Dhont

Environment Research Center Daikin Europe

Examples of Daikin’s contribution to the global energy

& climate change challenges

Daikin provides homes, businesses and industries worldwide with a wide variety of cooling and heating solutions for a comfortable living and working environment

Daikin products

Daikin productsWe also produce fluorochemicals for a wide range of applications such as solar panels, storage batteries, protective coatings, automotive parts and refrigerants

Communications-electronics

Smart grids Semiconductors

Living and medical

applications

ZEFFLE IR CoatingThermal control coatings helping reduce your energy consumption and carbon footprint

ZEFFLE IR Coating

Construction

Automotive

The Daikin company

Head office : Osaka, Japan

55,000 EMPLOYEES

The energy & climate change challenge :Role of the heating & cooling industry

• Heating and cooling play a major role in the energy and climate change impact of countries.

• For example, in EU heating and cooling represents around half of the EU energy consumption. More than two thirds of heating and cooling (84%) is still generated from fossil fuels; only around 16% is generated from renewable energy

Source : EU Commission - the contribution from heating and cooling to realising the EU's energy and climate objectives http://ec.europa.eu/smart-regulation/roadmaps/docs/2015_ener_026_heating_cooling_strategy_en.pdf

20% reduction by 2020

80% reduction by 2050

Source: EU low carbon roadmap 2050

EU targets to reduce greenhouse gas emissions

• 40% reduction by 2030

Targets will be mostly achieved by the change of electricity generation & by reducing energy consumption. For example, emissions from houses and office buildings need to be cut by around 90% in 2050

Fluorinated greenhouse gases such as HFCs used as refrigerants in air conditioners and heat pumps belong to the group of “non CO2 other sectors”6

Title - Internal use only 7

The climate change challenge : impact of refrigerants in EU

In the EU, emissions of “fluorinated greenhouse gases” (HFC+PFC+SF6) account for 2% of the total EU greenhouse gas emissions.

Nearly 80% of these F gas emissions are due to the emissions of HFCs used as refrigerants in air conditioners, heat pumps and refrigeration products

2 Reasons of emissions : 1) Leakage during the lifetime2) Non recovery (venting) at the end of the lifetime

3 pillars of F-gas legislation

8

I Prevention of Leakage and

emission through certification

& maintenance

II Phase down

of HFCs consumption

throughquota

allocation

IIIBans (GWP limits) on

certain types of products

EU F-gas legislation

F gas emissions in the EU (HFC + PFC + SF6)

9

Without existing F-gas legislation

With existing 2006 F-gas legislation& MAC Directive

Additional potential from New F-gas Regulation

Legislation from 2006 can achieve a stabilization of emissions , reducing emissions by almost 50% compared to business as usual

Not sufficient for EU climate goals, Roadmap

New F-gas Regulation (effective from 2015) will decrease emission by >70 Mt CO2eq. (two –third of today !)2000 2050

Targets of the EU F gas legislation

F gas legislation = F gas Regulation + MAC directive

10

Worldwide impact of growing HFC emissions

Global HFC emissions in 2050 are equivalent to 9–19% (CO2-eq. basis) of projected global CO2 emissions in business-as-usual scenarios (=SRES range).

Appr 75% of the global HFC emissions will occur in emerging economies, mainly due to the growing use of air conditioning and refrigeration products.

Source : Velders et al. _PNAS_2009Source : Ökorecherche

Business as usual scenarioglobal greenhouse gas emissions

Potential reduction targets

Estimated impact of HFC emissions

Daikin actions to lower the environmental impact of cooling/heating products

• Daikin has a long history of continually improving the energy efficiency of our cooling & heating products.

• We promote heat pump technology as alternative for gas/oil boilers as heat pumps create a triple effect of “using renewable energy”, “energy saving” and “CO2 emissions reductions”. In addition, heat pumps have great potential for energy storage and smart grid projects.

• We also play a pioneering role in adopting refrigerants with a lower environmental impact

Promoting energy saving “inverter compressor technology” worldwide

Contributing to CO2 Emission Reductions through Daikin Products*1

*1 Estimate of CO2 emission reductions from the use of energy-efficient inverter

products sold by Daikin, compared to CO2 emissions from the use of non-inverter

products. The emission reductions figure is annual reduction amount multiplied by product lifespan.

Daikin in Smart Communities Project with Heat-Pump Type Space and Hot Water Heaters

Worldwide first introduction of equipment using HFC-32 refrigerant

Daikin press release 27 Sept 2012 :

launch of world’s first air conditioner on the Japanese market using refrigerant HFC-32

Benefits of HFC-32 refrigerant

Key Characteristics HFC-32 (R32) is a next generation refrigerant that addresses a range of environmental considerations :

Not depleting the Ozone layer Lower Global Warming Potential

(GWP) – about one third of R-410A More energy efficient Easier to reclaim, recycle and reuse Allows to reduce the refrigerant

quantity in air conditioning or heating products

Global benefits of HFC-32

The avoided carbon emission benefits of a global transition to HFC-32 would be very significant : If all presently used R-410A refrigerant is replaced by HFC-32, the total CO2 equivalent impact of HFCs could be reduced by up to 24% in 2030, compared to business as usual scenarios

Compared to BAU 2030 scenarios, up to 24% reduction possible if R-410A is replaced by HFC-32

Daikin contribution to other industry players

• On 10 September 2015 , Daikin announced it is offering worldwide free access to 93 patents for the use of HFC-32 in air conditioning, heat pump and refrigeration equipment

• Already in 2011, Daikin had offered these patents to industries in emerging markets who wanted to accelerate their phase-out of ozone-depleting refrigerants.

• Given the urgent need to address climate change, Daikin believes that it is the right time to extend free access to these 93 HFC-32 equipment patents to manufacturers worldwide

More info

• More information can be found on Daikin’s press release : http://www.daikin.com/press/2015/150910/index.html

• Note 1 : There is no patent that covers the HFC-32 chemical itself and it is readily available from suppliers other than Daikin. This free access to certain patents allows manufacturers to utilize Daikin's technologies for air-conditioning, cooling and heat pump equipment using HFC-32 single component refrigerant and encourages the global industry to grow responsibly as well as meet rising demand.

• Note 2 : Companies interested in obtaining access to these patents should contact Daikin Legal department : R32-op-legal@daikin.co.jp

• At the request of the World Bank and the Thai government, Daikin is taking part in a support project launched by the Ministry of Economy,Trade and Industry (METI) of Japan under which Japanese manufacturers volunteer to help Thai manufacturers convert to HFC-32

Supporting local manufacturers in emerging economies

Installation and repair training for service engineers at a manufacturer in Thailand

White House event

Washington, DC [October 15, 2015] - At the White House earlier today, the Obama Administration recognized Daikin Industries, Ltd. and other private sector businesses for their continuing commitment to reduce emissions of hydrofluorocarbons (HFCs), and other powerful greenhouse gases that can contribute to climate change. The White House event was hosted by Dr. Ernest Moniz, U.S. Secretary of Energy, and Gina McCarthy, the Administrator of the U.S. Environmental Protection Agency

Worldwide use of HFC-32

• HFC-32 is currently being used in millions of air-conditioning units in more than 40 countries worldwide, including Japan, India, Australia, Thailand and several other Asian, Middle East and European countries

• Many other industry players are now offering HFC-32 based equipment to the market

Thank you !

ANNEX

Basic Environmental Policy of the Daikin Group

• In all aspects of our business operations, including product development, manufacturing and sales, we take initiatives to sustain and improve the environment

• We are also mindful of the energy & climate change impact of cooling and heating buildings and are committed to delivering cost-effective solutions to meet these challenges.

Minimizing Environmental Impact from Production in Daikin factories