Market Trends for Natural Refrigerants in North America and Globally

1
Market Trends for Natural Refrigerants in
North America and Globally
April 2, 2019

Accelerate America © — All rights reserved!shecco © — All rights reserved! sheccobase.com!
Market Trends for Natural Refrigerants in
North America and Globally
Greenchill Webinar
April, 2 2019
Klara Zolcer Skacanova, shecco

!shecco © — All rights reserved! sheccobase.com!
POLICY
1

U.S.: STATES TAKING THE LEAD
US Climate Alliance - a coalition of
23 governors (22 U.S. states +
Puerto Rico) - announces
commitment to phase-down
hydroﬂuorocarbons (HFCs)
Already 4 of the states in the Alliance
- California, New York, Maryland and
Connecticut - have announced
concrete plans to reduce HFC
emissions
With 22 States, U.S. Climate
Alliance represents 51% of U.S.
population, and 36% of U.S.
greenhouse gas emissions
California
•  HFC bans in supermarkets as of
2019 + additional bans to be
ﬁnalized this year
•  Incentives for natural refrigerants –
possibly starting in 2020

U.S.: CALIFORNIA TAKING THE LEAD
HFC bans:
•  January, 1 2019: HFC bans in
supermarkets begin in California - Rule
derived from EPA’s Significant New
Alternatives Policy Program Rule 20 &
21. Rule 20 was vacated in 2018 by a
U.S. Court of Appeal ruling.
•  Additional HFC bans [with global
warming potential (GWP) limits] to be
finalized this year
Incentives for natural refrigerants:
•  In 2018, California passed Cooling
Act: State-wide law to authorize financial
incentives for low-GWP refrigeration
systems;
•  Mid-2019: Legislature decides on
Greenhouse Gas Reduction Fund
funding, incl. the HFC incentive program.
Those grants would start in 2020.
California has the world’s 5th
largest economy.!
California has the ambition to
become the leader in cutting HFC
emissions globally and has already
inspired other U.S. States to take
action too. !

EUROPE: HFC PRICES GROWING
At the beginning of 2018,
high GWP HFCs reached
price peaks → similar
“wave-like” price trends
expected in the future
Recent price increases
much stronger for R134a/
R410A than R404A [based
on carbon dioxide (CO2)
equivalent]
Price increases have been
completely passed on end
users
Natural refrigerants still
available at low prices
Development of purchase prices at
original equipment manufacturer level
(price index, 2014 = 100%)
Source: Öko-Recherche, Q3 2018!

EUROPE: GETTING READY FOR HFC
BANS
2020 and 2022 will see the entry
into force of some key HFC bans
Transition to natural refrigerants
[CO2 and hydrocarbons(HCs)] in
refrigeration is underway on a wide
scale across Europe
Standards and certain national
codes pose a barrier to
introduction of HCs in higher
charges
→ standard reviews will unlock the
potential of HCs and ensure the
compliance with ﬂuorinated-gas
legislation in the long-run
* except for equipment designed for temperatures < -50 °C
** with capacity > 40kW, except in the primary refrigerant circuit of cascade systems
where HFCs with GWP < 1 500 may be used

CANADA: HFC PHASE-DOWN IN PLACE
April 2018: Launch of
Canada’s HFC phase-
down plan to limit HFC
consumption by 85% by
2036
Plan starts in 2019 with
10% cut to 2011/2013
baseline level of HFC &
hydrochlorofluorocarbon
(HCFC) consumption
Sector-specific bans in
specific products and as of
a certain year
Product
GWP of refrigerant in
product
Date
Stand-alone medium-
temperature
refrigeration system
1,400 Jan. 1, 2020
Stand-alone low-
temperature
1,500 Jan. 1, 2020
Centralised
2,200 Jan. 1, 2020
Condensing unit 2,200 Jan. 1, 2020
Chillers 750 Jan. 1, 2025
Mobile refrigeration
system
2,200 Jan. 1, 2025
Motor vehicle air-
conditioning (MVAC)
150
Jan. 1, 2021 model
year of vehicles
Domestic
refrigeration
150 Jan. 1, 2025

STANDARDS: BARRIER FOR HCS
International Electrotechnical Commission (IEC) 60335-2-89 for
commercial refrigeration
•  Current standard limits the charge of all flammable refrigerants to 150g
•  The revised standard would increase allowable charge limit for all
flammable refrigerants – up to 500g for hydrocarbons and 1,200g for
flammable HFCs (HFOs, HFO/ HFC blends)
•  Allowing higher charge limits for flammable refrigerants is important to
ensure that HFC phase-down under the Kigali Amendment and national /
regional regulations can be implemented
•  This is a unique opportunity to widen the opportunities for HC-based
technologies while maintaining the same level of safety
•  IEC’s National Committee members have until 12 April to cast their
vote
•  If passed, new standard would be published in August

CO2 REFRIGERATION  
MARKET TRENDS
2

TRANSCRITICAL (TC) CO2 STORES:  
FROM 140 TO 20,000 IN 10 YEARS

GLOBAL SHARE OF TC CO2 STORES
The market transition is
still in its early stages
TC CO2 stores account
for about 1% in the U.S.
(excluding small stores)
and 2% in Canada
Europe remains leader
with more than 10% of
TC CO2 stores
0%
4%
7%
11%
14%
18%
Europe: European Union + Switzerland, Norway - food retail stores
bigger than 400m2
Japan: Supermarkets & convenience stores combined
U.S.: Supermarkets
Canada: Supermarkets and grocery stores

TC CO2 STORES IN THE U.S.
First TC CO2
store in the U.S.
was installed in
2013
Annual growth
rate in the U.S. is
higher than in
Canada

TC CO2 IN CHALLENGING
ENVIRONMENTS (2018 DEVELOPMENTS)
Mexico - Casa Ley installed the first TC
CO2 store in Mexico using adiabatic
condenser [5-10% energy savings
expected compared to conventional
direct expansion (DX) system]
Jordan - Al-Salam supermarket opened
first TC CO2 store in Jordan
India - Indian Institute of Technology
tests first TC CO2 system in India
Russia - METRO opened two TC CO2
stores in Russia

CO2 SOLUTIONS FOR SMALL STORES
Mini boosters Condensing units Plug-ins

CO2 SOLUTIONS FOR SMALL STORES
Estimated more than 6,600
stores using condensing units /
mini boosters in operation today
globally – mostly in Japan and
Europe
More than 20 companies known
to be providing CO2 condensing
units and mini boosters in the
market today
More than 4,000 plug in units with
CO2 installed today

UTILITY TESTING CO2 CONDENSING
UNITS IN STORE
Efficiency Vermont, an efficiency utility,
is overseeing a test of a CO2
condensing unit in a supermarket.
Intended to start in the second quarter
of 2019, the pilot will measure the
energy efficiency of the condensing unit
in comparison with that of an HFC unit.
The ultimate goal is to award financial
incentives for purchasers of a more
energy-efficient system.

CO2 IN INDUSTRIAL REFRIGERATION
TC CO2 - gaining grounds in industrial
refrigeration in different parts of the world:
•  Bigger capacity compressors + other
components for larger applications
becoming available from several key
suppliers
•  Technology especially suitable for small
industrial ref (below 300kW) where
HFCs were traditionally been used, but
also used in larger installations
•  More than 25 companies known to be
providing TC CO2 systems for industrial
applications globally
•  TC CO2 for industrial refrigeration is
expected to grow ﬁve-fold by 2020.

CO2 IN INDUSTRIAL REFRIGERATION
More than 25 companies known
to be providing TC CO2 systems
for industrial applications globally;
All major compressor
manufacturers claiming to offer
large-capacity compressors, with
some aiming to push limits even
further (increasingly certiﬁed for
the U.S. market);
TC CO2 for industrial
refrigeration is expected to
grow ﬁve-fold by 2020.

CASE STUDY: CO2 IN INDUSTRIAL
REFRIGERATION
Henningsen Cold Storage facility in WA embraces
CO2
•  A 111,000-sq-ft facility in Grandview, WA – one of
the first to use a TC CO2 system – running since
June 2018;
•  Supplied by Carnot Refrigeration and installed by
PermaCold Engineering
•  The system comprises about 3,000 lbs of CO2
supplying refrigeration for a freezer and a dock
area
•  Projected electricity savings of 46,000 kWh/yr –
thanks to this the facility earned a $262,000 energy
incentive from a local utility (Pacific Power)

HC REFRIGERATION  
MARKET TRENDS
3

HC SOLUTIONS FOR FOOD RETAIL
Global market estimate (August 2018)
= 2.5 million hydrocarbon-based
supermarket showcases (excl. light
commercial refrigeration such as bottle coolers,
vending machines)
Increase of HC charge limits in industry
standards is key for the future uptake of
hydrocarbons
US
•  Growing number of retailers (e.g.,
Hannaford, Lidl) see R290 self-contained
cases as a suitable partial or full-store
solution
•  Industry observes a marked shift toward
R290 self-contained cases in the past 2-3
years

HYDROCARBON WATERLOOP
There are an estimated 1,900+ stores
globally, 1,700+ in Europe, approx. 100 in
the U.S.
•  Lower energy consumption - around 25%
reduction
•  Faster installation & low maintenance costs
•  Competitive advantage in warm climates
•  Flexible store layout changes
•  Lower total cost of ownership
Main challenge to overcome: R290 charge
limits

CASE STUDY: H-E-B STORE
•  First full-store R290 refrigeration in the
US introduced in the H.E.B. store in
Austin, TX in July 2013
•  346 R290 condensing units in store
(with up to 150g propane) and
packaged condensing units in the
walk-in rooms with up to 350g R290
each à increasing the HC charge
limit to 500g would reduce the
number of compressors at least by
half
•  Zero leaks to date
•  Energy savings on par with other
stores
•  Capital costs comparable to CO2, but
installation costs lower due to
simplicity

HANNAFORD STEPS UP R290
EVALUATION
•  Hannaford is testing R290 low-
temperature cases for new stores
and as a retroﬁt option in existing
stores
•  20,000-sq-ft store in Mechanic Falls,
ME opened in July 2018 – a
complete lineup of low-temperature
R290 cases
•  Excess heat is removed by a loop of
glycol chilled to 45°F by a R407A
rack / chiller à glycol loop allows
R290 cases to be used on a full-store
basis
•  Next: Hussmann to introduce
microdistributed system in 2019 at a
new 39,000-sq-ft store in Ballston,
NY

LOW-CHARGE AMMONIA 
MARKET TRENDS
4

LOW-CHARGE AMMONIA (NH3)
INSTALLATIONS AROUND THE WORLD

CASE STUDY: PIGGLY WIGGLY’S NH3 /
CO2 STORE
•  US retailer Piggly Wiggly has
recorded average savings of
28.5% over 7-month period in
a supermarket thanks to NH3/
CO2 cascade refrigeration
system (compared to
HFC-407A)
•  Ultra-low charge (24kg) of
ammonia
•  NH3/CO2 system accounts for
60% of the store’s electricity
consumption

CASE STUDY: KPAC GENERAL
Konoike Paciﬁc California (KPAC) Cold Storage
replaced R22 system with an ultra-low-charge
ammonia system
•  The 84,000-sq-ft (3.86 million-cu-ft) South Gate
warehouse in Bell Gardens, CA consists of ﬁve
rooms – one large freezer room and four
convertible rooms as well as a dock area
•  Eight rooftop (“penthouse”) NXTCOLD units
were installed with total capacity between 320
TR to 360 TR with a total ammonia charge from
150 lbs to 240 lbs à an ultra-low charge ratio of
between 0.47 to 0.67 lb/TR
•  Energy costs are about 20% less compared to
the old R22 system, even though the new
building holds 50% more space.

THANK YOU!

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