hfc workshop india
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HFC Workshop India. Tom Catania Vice President Government Relations Whirlpool Corporation February 2011 . Why is Whirlpool still using HFCs in USA?. Cost of transition Energy efficiency advantages of HFC 245fa trumps GWP impact - PowerPoint PPT PresentationTRANSCRIPT
HFC Workshop India
Tom Catania Vice President Government RelationsWhirlpool CorporationFebruary 2011
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Why is Whirlpool still using HFCs in USA?
- Cost of transition- Energy efficiency advantages of HFC 245fa trumps GWP impact
- Cheapest and least consumer utility compromise for achieving high efficiency- HFCs can be used responsibly and recovered
- HCs still are subject to VOC emissions rules- Even modest litigation risk in USA when using isobutane refrigerant in a no-frost
refrigerator can not be taken lightly in the US litigation, class action environment
- Most importantly, new chemicals/technologies on short term horizon that may have positive characteristics of HFCs without the negatives of HCs or HFCs
- “RETOOLING FATIGUE”
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Simple Message: TEWI (Total Environmental Warming Impact)
The “Use” Phase of a long lived residential refrigerator and the power plant emissions associated with that use has a more significant environmental impact than the manufacturing phase or end of life—especially if the refrigerants and blowing agents are responsibly managed and recovered.
The ideal combination of refrigerants and blowing agents in residential refrigerators would have zero ODP, very low GWP, low toxicity, be safe AND BE ABLE TO DELIVER THE HIGHEST POSSIBLE LEVEL OF ENERGY EFFICIENCY AT THE LOWEST POSSIBLE COST OR COMPROMISE OF CONSUMER UTILITY
HYDROCARBON FOAM INSULATION AND BLOWING AGENTS MAY NOT BE THE BEST/LAST ANSWER
Refrigeration manufacturers have “retooling fatigue.” - CFCs-HCFCs-HFCs-HCs-HFOs-?- continuous retoolings steal capital from investment in new environmental breakthroughs in the important areas of energy efficiency and smart products on smart grids, for example
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HC
Foam HFC / HCFC / NEW TECHNOLOGY?
High
GWP Energy
ODP GWP ENERGY EFFICIENCY
CFC
HCFC
HFC
HFO
HFC
HCFC
CFC
HC
HFO
HFO
HCFC
HFCCFC
Zero High Low Best Worst
HC
Ideal Equation for longer run would be 0 ODP , Low GWP , High Energy Efficiency
Foaming agents used today have element’s of all 3 , but not all the best characteristics
Managing proper disposal & usage of VOC’s ( Hydrocarbons ) during service , transport etc
HFC’s have been used extensively , however have a high GWP impacting the environment
HFO’s to provide the best new solution moving forward for energy & environmental benefits
Ideal Opportunity
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GDP / GROWTH / PENETRATION / POTENTIAL – India Case
Refrigerators are a ~6.2 mn units industry, growing aggressively YOYCurrently, only 14% of the market is penetrated, expected to grow to 25% by 2015
Most of the Indian market is Direct Cool (78%)DC market is growing faster than the Frost Free market,
driving refrigerator penetration in India
Growth of low income purchasers and total volume requires solutions that don’t drive the wrong behavior
CAGR 11.5%
CAGR 8%
India’s Economic Prosperity
Indian Consumer’s buying potential
Higher sales of refrigerators ( e.g. DC ) products
on the market
Need to make the right selection of Blowing Agents and
refrigerants with the broader & longer environmental picture in
mind
+
=
Potential Equation
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Providing value to the masses
Entry-level consumers for both Direct Cool and No Frost are extremely price-conscious, seeking ‘value for money’
Energy efficiency / Eco moved up from 8th to 4th place in importance in purchasing an appliance (behind brand, price & color)
HC’s significantly increase the GWP effect on the environment moving forward Early tests not in optimized refrigerator and assumes full venting of HFCs
Consumers Understand Energy Efficiency, not GWP… Continue To Seek ‘Value’
Direct Cool sales in INR No Frost sales in INR
BULK SALES ON ENTRY LEVEL
PRICES POINTSSource : DuPont
HFO HFC - 245 HC HFC - 134
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Risk of converting too early?
HIGH ODP LOW GWP ZERO ODP ZERO ODP . LOW GWP , ENERGY EFFICIENCY
CFC HCFC
HFC
HC
BLENDS
HFO
Manufacturer’s globally as well as in India to comply with global regulations for material usage ( HFC etc )
Every step requires a large investment from a manufacturer that affects product cost , design etc o Investments need to be recouped from sales resulting in possible price increases
Unique situation in India as compared to mid 1990’s CFC phase outo Energy Regulations are very stringent from 2012 – 2014 ( 60% jump )o Environmental regulations force manufacturers to comply for chemical phase out
SHOULD NOT FORCE THE USE OF A CHEMICAL RATHER SUPPORT THE DEVELOPMENT OF THE RIGHT CHOICE FOR THE ENVIRONMENT
Ideal Opportunity
3-4 years until mass
production ( est. 2014 / 15)
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Impact on the Indian energy grid
Analysis of the impact of energy standard changes on the overall energy consumption
Note: Illustrative calculations only, qualitatively correct; Market penetration & growth have been factored in
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
2010 2012 2014
Average energy-star purchases continue at today's levels
Average energy-star purchases change in line with plan (20% in 2012 & 40% in 2014)
Indi
an g
rid co
nsum
ption
(mil.
Kw
hr/y
r.)
Energy regulations impact on the Indian grid
Need to Promote Energy Efficiency & Eco Conscious Lifestyle for the Indian Consumer
Currently, on average, India’s average buying is ~3.7 energy efficiency level
If they move up by 20%, then overall energy consumption will come down (GREEN)
If average buying behavior does not change DUE TO COST, overall energy consumption will increase (RED)
Today
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Conclusion – India should not rush into a sub-optimum solution that limits potential “use phase” emission reductions*
Our Proposal for residential refrigerators: Modest delay (1-2 years) in HCFC phase outIndia could lead rest of the world in development and export of next generation solution
*Or has the unintended consequence of consumers trading down to less expensive, but less efficient models
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Thank you !
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Synergy between Energy Efficiency & TEWI
ENERGY
EFFICIENCY
ATMOSPHERIC
EFFECTS
KEY TAKEAWAY’S
ENERGY EFFICIENCY
20% JUMP IN 2012
40% JUMP IN 2014
RESPONSIBLE USE OF MATERIALS
2013 phase out for HCFC
Overall goal by Montreal Protocol to reduce carbon
emissions by 2030
INDIA FACED WITH CHALLENGES OVER THE NEXT FEW YEARS TO LOWER OVERALL ENERGY INTENSITY WHILE PHASING OUT HCFCS
RIGHT BALANCE NEEDS TO BE
ACHIEVED AND NOT MUTUALLY EXCLUSIVE
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TODAY’S LANDSCAPE BUT NEED TO LOOK FURTHER?
CFC
HCFC
HFCHC HFO
Time
Envi
ronm
enta
l Im
pact
Energy Benefits : Medium HighLow
No ideal BA found that has 0ODP , low GWP , and high
energy benefits
Use of HFC’s growing however still has a high
GWP
INNOVATION UNDER THIS SPACE TO PROVIDE MOST IDEAL BLOWING AGENT SOLUTION FOR THE ENVIRONMENT
Aim to drive right investment’s for an ideal blowing agent !
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Unique Issues to the Indian Market
Supply Base Impact if moved to a foam that impacted energy & environment:
o Use of High Efficiency components like VIP’s , VCC compressor’s to meet energy regulations 2012-2014o Diminishing return’s and high cost’s could potentially lead to higher product costo Consumer’s forced to purchase lower energy efficient producto These step’s would negate entire purpose of reducing energy & environmental impact in the country
Lack of Incentives for higher energy rated & environmentally friendly products
o Lack of incentives by the govt to drive higher sales of energy & environmentally friendly productso Manufacturers forced to comply to standards however unsure on consumer behavioro Funding opportunities present in multiple regions like Mexico ( e.g. UNIDO funding )
Infrastructure Concerns
o Servicing of VOC’so Incremental increase in material costs & import duties
Other?
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Opportunities for India
Infrastructure
Government & Manufacturers partnership in developing low cost components for the “World”o Foam ‘s , refrigerant’s , etc
Providing incentives for manufacturers to assist in the Indian government’s goal to help reduce energy efficiency & carbon emissions part of the 11th five year plan
o Incentivize use of high cost components like VIP’s VCC’s etc
Create an EPR framework for safe disposal of componentso Create awareness amongst Indian consumer for the need of supporting global cause
Look for opportunities beyond regulatory landscape that would help make “India a leader in this space”
o Partner with key leader’s in technology development in new areas like Smart Grid
Consumer Awareness
Creating an awareness for the need & value to purchase energy & environmentally friendly productso Promote the use of product’s with special consideration’s from govt & manufacturerso Tax credit’s / rebates for energy & eco friendly product’s