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Sustaining the Environment
Lower GWP Refrigerants & Options


                             One Company
                              Focused on Climate & Energy




                                                   Date | 1
Agenda

 GHG Impact
 The Industry Challenge
 Options to Take us Closer to Our Goal
      Refrigerants
      Low Charge Systems
      Reduced Leaks
      Energy Efficiency
 Summary
 Danfoss Policy




                                          Date | 2
The Industry Challenge !

Environmental Impact

Challenges
 Limited energy                            Growing
 resources                           Demand population
 Global warming                            Growing need:
                                            comfort & safety


                           Legislation and Regulation
    Demand                 Viable Energy Efficient technology
                           Acceptable low-GWP refrigerants



 Sustainability limit
                                     Demand  High Efficiency
                                                  Low GWP


                                                           Time


                                                                 Date | 3
Refrigeration & Air Conditioning Industry
Impact on Climate Change & Global Warming

                                                                      System operation
                                                                      energy consumption

                                                                 ns
                                                            io
                                                         iss

                                          ir   ec
                                                  t   em
                                                                         80
                                       nd
                                     I
                                                                        /
                                    Di
                                         re
                                                                       20
                                           ct
                                                em
                                                      iss
                                                         io n
                                                             s

      Green House Gasses - GHG
                                                                      Refrigerants
 (CO2, CH4 , N2O, HFCs, SF6) Emissions




                                                                                       Date | 4
What do we do to get closer to the goal?




                          Technology
  Low-GWP                   Options
 refrigerants                                     Improved
                                                    energy
                                                   efficiency

                Minimal charge    Lower leakage
                   systems            rates




                                                                Date | 5
Ozone Depletion and Global Warming
                        Global Warming Potential (GWP)100a
                   20.000
phase down (Proposed)




                        4.000
  Montreal Protocol




                                                Montreal Protocol
                           R404A
                                                   (in force)


                        2.000




 R600a,
       NH3,
          air…


                                                                    Date | 6
Example of a CO2 Solution
Supermarket/Industrial Refrigeration

                                                               The high risk of refrigerant leaks in
                                                                supermarket distribution systems
                          High stage
R717 (NH3)
                          condenser           High stage        calls for an better solution.
R134a, R404A,
           …      High stage                  compressor(s)
                  expansion valve
R290, R1270,
          …
                     Cascade heat exchanger
                                                               Cooling with CO2 has energy
                                                                drawbacks in warm climates, but
CO2                                                             otherwise…
                      Liquid pump
                           Medium temp
                           evaporator                          Cascade systems built on state of
                                                                the art technology are globally
                                                                applicable

Low temp
                           Low temp           Low stage
expansion valve
                           evaporator         compressor(s)




                                                                                               Date | 7
Minimal Charge Systems
Microchannel Heat Exchangers

                       Depending on system design the
                       typical charge amount can be
                       reduced with 30-60 %.
                       COP can typically be increased
                       with 10% due to low pressure
                       drop and increased heat
                       transmission

                       Micro channel technology is not
                       new. This proven technology has
                       been used since 1980 in
                       automotive air conditioning. The
                       same technology is modified to
                       residential and commercial air
                       conditioning systems.


                                                        Date | 8
Lower Leakage Rates

 More sensitive leak detectors
 Minimize joints in the product and installation
 Deploy controls systems for containment strategy to
  isolate leaks & prevent loss of complete charge
 Direct weld & solder components
 Hermetic components
 Preventive maintenance




                                                        Date | 9
Improved Energy Efficiency
Cost



       Legislative
       lever
                                T3



                     T2
                          T4
   T1


                                                  Efficiency

   At the end –
   What matters is the efficiency / cost ratio.

                                                               | 10
Variable Speed Systems Lower Energy Costs


                                                                   Fixed speed 948 hr
                                                                   Modulated compressor 1189 hr
                                                                   Performer VSD 1520 hr

                                     Performer VSD

                          Modulated

                                                                Makes $100 go
            Fixed speed
                                                                considerably further
                                                        HOURS
0                948                 1189        1520


    Source: Results are derived by use of the
    Danfoss HVAC simulation tool for a typical
    air conditioning usages in a Houston
    household from March to June


                                                                                                   | 11
Variable Speed Systems


Scroll 3-5 Tr           Data
with IPM motor
                           Speed range 900 RPM to 4500 RPM
                           High ambient operation up to 137°F
                           All serial communication based


All-in one drive with   Performance
  internal VS cooling
fan                        Over 4 SEER points to modulation
                           Over 10 dbA quieter
                           Exact temp control with +/- 0.2°F
                           Smart compressor protection
Credit card sized
EEV controller with
serial
communication



                                                             | 12
EcoFlow™ Adaptive Distribution




Immediate advantages with EcoFlow™
 Continuous monitoring and optimisation
 Eliminates maldistribution
 Insensitive to variations in air flow over the evaporator
 Enables higher SEER/EER performance

                                                              | 13
EcoFlow™ The Benefits and Opportunities




Efficiency benefits         System opportunities          Environmental benefits
 Increased system capacity  Improved dehumidification    Increased SEER/EER
 Increased COP              Load matching from ultra-    Energy savings from one
 Balanced refrigerant flow   low to maximum capacity       million EcoFlow valves:
                             Diagnostics capabilities      $110 million per year,
                             Defrost by disabling one      equivalent to 85 wind
                              segment at a time             turbines
                                                           One EcoFlow saves 1430
                             Smaller evaporator
                              possible                      lbs CO2 per year,
                                                            equivalent to driving a car
                                                            1600 miles
                                                                                          | 14
Summary & Potential Next Steps:

   Mainstream market is set with HFCs. Until there is a phase down cap with
    deadlines, progress to alternative refrigerants will be very slow.


   A regulatory framework to constrain GHG is not an option any more. A global
    mandate is needed.


   Light commercial systems are well suited for hydrocarbons. Known for almost two
    decades, the trend is now increasing. Demonstration projects in China show
    interest in residential A/C.


   Several applications, especially food retail, are very suitable for CO2 solely or in
    combination with other refrigerants as NH3, HC or HFCs.


   Larger A/C systems will be more challenging to convert to low GWP refrigerants.


   Low flammability refrigerants such as R32 and HFO1234yf will play a significant
    role in the future. R32 will has potential to replace R22. HFO1234yf will be used in
    blends to replace R22 and HFC’s.

                                                                                           Date | 15
Danfoss Policy

   We will enable our customers to achieve refrigerant goals while continuing to
    enhance the energy efficiency of refrigeration and air-conditioning equipment.


   Danfoss will proactively develop products for low-GWP refrigerants, both
    natural and synthetic, to fulfil customers’ needs for practical and safe solutions
    without compromising energy efficiency.


   Danfoss will lead and be recognized in the development of natural refrigerant
    solutions.


   Danfoss supports the establishment of a global regimen (such as the Montreal
    Protocol) to phase down emissions of high-GWP refrigerants … while providing for
    long-term production of small quantities of HFCs for critical needs.




                                                                                    Date | 16

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Sustaining the Environment Lower GWP Refrigerants & Options

  • 1. Sustaining the Environment Lower GWP Refrigerants & Options One Company Focused on Climate & Energy Date | 1
  • 2. Agenda  GHG Impact  The Industry Challenge  Options to Take us Closer to Our Goal  Refrigerants  Low Charge Systems  Reduced Leaks  Energy Efficiency  Summary  Danfoss Policy Date | 2
  • 3. The Industry Challenge ! Environmental Impact Challenges  Limited energy  Growing resources Demand population  Global warming  Growing need: comfort & safety Legislation and Regulation Demand Viable Energy Efficient technology Acceptable low-GWP refrigerants Sustainability limit Demand  High Efficiency  Low GWP Time Date | 3
  • 4. Refrigeration & Air Conditioning Industry Impact on Climate Change & Global Warming System operation energy consumption ns io iss ir ec t em 80 nd I / Di re 20 ct em iss io n s Green House Gasses - GHG Refrigerants (CO2, CH4 , N2O, HFCs, SF6) Emissions Date | 4
  • 5. What do we do to get closer to the goal? Technology Low-GWP Options refrigerants Improved energy efficiency Minimal charge Lower leakage systems rates Date | 5
  • 6. Ozone Depletion and Global Warming Global Warming Potential (GWP)100a 20.000 phase down (Proposed) 4.000 Montreal Protocol Montreal Protocol R404A (in force) 2.000 R600a, NH3, air… Date | 6
  • 7. Example of a CO2 Solution Supermarket/Industrial Refrigeration  The high risk of refrigerant leaks in supermarket distribution systems High stage R717 (NH3) condenser High stage calls for an better solution. R134a, R404A, … High stage compressor(s) expansion valve R290, R1270, … Cascade heat exchanger  Cooling with CO2 has energy drawbacks in warm climates, but CO2 otherwise… Liquid pump Medium temp evaporator  Cascade systems built on state of the art technology are globally applicable Low temp Low temp Low stage expansion valve evaporator compressor(s) Date | 7
  • 8. Minimal Charge Systems Microchannel Heat Exchangers Depending on system design the typical charge amount can be reduced with 30-60 %. COP can typically be increased with 10% due to low pressure drop and increased heat transmission Micro channel technology is not new. This proven technology has been used since 1980 in automotive air conditioning. The same technology is modified to residential and commercial air conditioning systems. Date | 8
  • 9. Lower Leakage Rates  More sensitive leak detectors  Minimize joints in the product and installation  Deploy controls systems for containment strategy to isolate leaks & prevent loss of complete charge  Direct weld & solder components  Hermetic components  Preventive maintenance Date | 9
  • 10. Improved Energy Efficiency Cost Legislative lever T3 T2 T4 T1 Efficiency At the end – What matters is the efficiency / cost ratio. | 10
  • 11. Variable Speed Systems Lower Energy Costs  Fixed speed 948 hr  Modulated compressor 1189 hr  Performer VSD 1520 hr Performer VSD Modulated Makes $100 go Fixed speed considerably further HOURS 0 948 1189 1520 Source: Results are derived by use of the Danfoss HVAC simulation tool for a typical air conditioning usages in a Houston household from March to June | 11
  • 12. Variable Speed Systems Scroll 3-5 Tr Data with IPM motor  Speed range 900 RPM to 4500 RPM  High ambient operation up to 137°F  All serial communication based All-in one drive with Performance internal VS cooling fan  Over 4 SEER points to modulation  Over 10 dbA quieter  Exact temp control with +/- 0.2°F  Smart compressor protection Credit card sized EEV controller with serial communication | 12
  • 13. EcoFlow™ Adaptive Distribution Immediate advantages with EcoFlow™  Continuous monitoring and optimisation  Eliminates maldistribution  Insensitive to variations in air flow over the evaporator  Enables higher SEER/EER performance | 13
  • 14. EcoFlow™ The Benefits and Opportunities Efficiency benefits System opportunities Environmental benefits  Increased system capacity  Improved dehumidification  Increased SEER/EER  Increased COP  Load matching from ultra-  Energy savings from one  Balanced refrigerant flow low to maximum capacity million EcoFlow valves:  Diagnostics capabilities $110 million per year,  Defrost by disabling one equivalent to 85 wind segment at a time turbines  One EcoFlow saves 1430  Smaller evaporator possible lbs CO2 per year, equivalent to driving a car 1600 miles | 14
  • 15. Summary & Potential Next Steps:  Mainstream market is set with HFCs. Until there is a phase down cap with deadlines, progress to alternative refrigerants will be very slow.  A regulatory framework to constrain GHG is not an option any more. A global mandate is needed.  Light commercial systems are well suited for hydrocarbons. Known for almost two decades, the trend is now increasing. Demonstration projects in China show interest in residential A/C.  Several applications, especially food retail, are very suitable for CO2 solely or in combination with other refrigerants as NH3, HC or HFCs.  Larger A/C systems will be more challenging to convert to low GWP refrigerants.  Low flammability refrigerants such as R32 and HFO1234yf will play a significant role in the future. R32 will has potential to replace R22. HFO1234yf will be used in blends to replace R22 and HFC’s. Date | 15
  • 16. Danfoss Policy  We will enable our customers to achieve refrigerant goals while continuing to enhance the energy efficiency of refrigeration and air-conditioning equipment.  Danfoss will proactively develop products for low-GWP refrigerants, both natural and synthetic, to fulfil customers’ needs for practical and safe solutions without compromising energy efficiency.  Danfoss will lead and be recognized in the development of natural refrigerant solutions.  Danfoss supports the establishment of a global regimen (such as the Montreal Protocol) to phase down emissions of high-GWP refrigerants … while providing for long-term production of small quantities of HFCs for critical needs. Date | 16