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Opportunities for Natural Refrigerants in Small-Format ApplicationsE360 Webinar • May 16, 2017
Andre PatenaudeDirector, CO2 Business DevelopmentEmerson
Allen Wicher Director, Refrigeration MarketingEmerson
Speaker
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Andre PatenaudeDirector, CO2 Business DevelopmentEmerson
Andre Patenaude, director of CO2 business development at Emerson, is responsible for developing the global strategy around the company’s CO2industry stewardship, marketing initiatives and channel training as it relates to CO2 refrigeration systems.
Previously, Andre led Emerson’s Canadian market strategy, planning and implementation of programs for its refrigeration and air conditioning business. In total, he possesses 33 years of marketing, sales, and technical service experience working directly with end users, contractors, wholesalers and OEMs.
Speaker
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Allen Wicher Director, Refrigeration MarketingEmerson
In his role as director of marketing in foodservice, Allen Wicher is responsible for leading the business strategy and planning for growth in restaurants, convenience stores and commercial kitchens. Here, he leverages Emerson’s product and system solution development capabilities to support OEMs and end users. Allen has more than 25 years of progressive experience at global manufacturing companies in B2B and B2C markets, crossing multiple channels and influencers.
This presentation is intended to highlight changing developments in the law and industry topics. The law is frequently evolving and information and publications in this presentation may not reflect the latest changes in the law or legal interpretations. The statements and information provided in this presentation should not be construed as legal advice or legal opinion regarding any specific facts or circumstances, but is intended for general informational purposes only. The views and statements expressed during this presentation are the personal opinions of the presenter and do not represent those of Emerson Climate Technologies, Inc. or its affiliated companies. You should consult an attorney about your situation and specific facts and you should not act on any of the information in this presentation as the information may not be applicable to your situation. Although all statements and information contained herein are believed to be accurate and reliable, they are presented without warranty of any kind. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such use is free of patent infringement and are not recommendations to infringe on any patents. This presentation may not be copied or redistributed without the express written consent of Emerson Climate Technologies, Inc.
Disclaimer
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Agenda
Evolution of Natural Systems
Market Dynamics
Regulatory Implications
Commercial
Q & A
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Evolution of Natural Systems
Full Circle for Natural Refrigerants
Natural Refrigerants
CO2, NH3, Propane
CFCR-12, R-502
HCFCR-22
HFC R-404A, R-507, R-134a, R-410A
1980s1990s
1930s2005+
Technical IssueSafety
Ozone DepletionMontreal Protocol
(1987)
Current Drivers:Refrigerant Regulations
o Banso Taxeso Incentives
Energy Regulation
Global WarmingKyoto Protocol, COP21 Kigali Amendment (MP)
F-Gas 2006F-Gas 2014
Europe: policy action at the National level
Slide design compliments of AHT7
Refrigerant Change Being Driven by Regulations and Voluntary Actions
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Global Regulatory Actions to Ban High-GWP Refrigerants Place Renewed Emphasis on Natural Alternatives.
Organizations
Montreal Protocol Targets Ozone Depletion (R-22) Signed in 1987
North American Proposal Targets CO2 Emissions (High Global Warming)
F-Gas RegulationCarbon Tax
HFC Ban & Tax
INTERGOVERNMENTAL PANEL ONclimate change
Regulations
Kigali Amendment to the Montreal ProtocolOctober 15, 2016
Global Agreement on HFC Phase-Down Reached by 197 Countries of the World,in Kigali, Rwanda, on October 15, 2016
0
20
40
60
80
100
120
2010 2015 2020 2025 2030 2035 2040 2045 2050 2055
A2 Countries(U.S., Canada, etc.) A5
CountriesGroup 1
A5 Countries Group 2
(India, Iran, Pakistan, Iraq,
GCC)
A2 Countries(Belarus, Russian
Federation, Kazakhstan, Tajikistan, Uzbekistan)
2024 Freeze
2028 Freeze
BaselinesA2 countries (U.S., Canada, etc.)•Avg. HFC consumption 2011to 2013 + 15% HCFC baseline
A2 countries (Belarus, etc.)•Avg. HFC consumption 2011 to 2013 + 25% HCFC baseline
A5 countries (Group 1)•Avg. HFC consumption 2020 to 2022 + 65% HCFC baseline
A5 countries (Group 2)•Avg. HFC consumption 2024 to 2026 + 65% HCFC baseline
GW
P W
eigh
ted
CA
P (%
of B
asel
ine)
Ref: http://conf.montreal-protocol.org/meeting/mop/mop-28/crps/SitePages/Home.aspx
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Market Dynamics
Poll Question 1
• Consultants• Contractors• End Users• Government/Trade Associations• Original Equipment Manufacturers• Other• Utilities• Wholesalers
What part of the industry do you represent?
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Global Market Dynamics
• Smaller Retail Formats– Deep Urban Markets– Convenience– Speed of Delivery
• Millennials– e-commerce– Clicks vs. Bricks
• Fresh– Buy Local– Natural and Organic
• Sustainability
• Regulations
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Balancing Four Basic Variables to Solve Customer Needs
0
50
100
150
200
250
HFC CO₂
Component electronics are a larger spend
% of top 50 retailers testingrefrigerant alternatives
$K
6%
83%+
0%
20%
40%
60%
80%
100%
2010 2015
Optional
Mechanical
Electronics
0%
20%
40%
60%
80%
100%
Sales % Margin %
Fuel andtobacco
Food and bev.
Other
C-stores targeting foodservice for growth
DOE regulations require new system designs
Now '17 Now '18 Now '20
% E
nerg
y -37%-35%
-17%
Reach-In Ice Walk-In
The Next Four Years Will Be the Most Dynamic Period of Change in the History of Our Industry
83%
Store Type andSurface Area (ft²) Trend Architecture and Refrigerant Toward 2020
Warehouses and Large Supermarkets
>40k ft²
Medium-Size Supermarkets
10k to 40k ft²
Small Supermarkets and Hard Discounts
6k to 10k ft²
C-Stores
1.2k to 6k ft²
Restaurants
<1.2k ft²
Refrigerant and Architecture Decisions in Context of Store Format
Centralized Architecture: NH3, Cascade and Booster CO2
Centralized: HFO/CO2 or Booster CO2
Centralized: HFO or CO2 Distributed HFO or CO2 Integrated Display Cases R-290
Integrated Display Cases R-290/Plug-Ins
Integrated Display Cases R-290
Semi-Centralized/Distributed HFO or CO2
Distributed HFC/HFO/CO2
Distributed HFC/HFO Multiple Units
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Holistic Facility Approach to Equipment Selection Can Minimize “Unintended Consequences”
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Toxicity, flammability,
working pressures
Heat transfer, latent heat
Revenue, first cost, total
cost of ownership
CO2 emissions, climate change
Legal, operations
Energy mgr.,design eng.
CEO, merchandising,
finance
Sustainability officers
Lack of technicians,performance specs and
service contracts
Utility incentives,continuous commissioning,
integrated HVACR
Millennials, fresh, urban stores
Natural refrigerants, regulations
Key Variables Stakeholders Trends
Developing a TCO Model, Regardless of Architecture
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Assumptions• 40,000 ft2 (2.0 million kWh)• 60% refrigeration • 1.2 million kWh @ $0.10• Year 1 = $120k energy• 7%/year energy increases
Unknowns• HFC taxes? • Future regulations?• Carbon credits?• Technology
advancements?
20Year 1
MaintenanceEnergy SpoilageLeaksInstallEquipment
2 3 4 7 8 9 10 14 15 16 17 18 195 6 11 12 13
$120k($0.10 kWh) $0.28/kWh $0.39/kWh
$562k
Typical Retail Cascade System — Schematic
Med-Temp.R-448A or R-449A
Low-Temp.R-744
HFC,NH3, R-290
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CO2 Transcritical Booster Operation
700 -1500psig
510psig
510psig
200psig
420psig
Must Use• Facility Management System• Electronic Expansion Valves• High-Pressure Gas Cooler
Controls• High-Pressure and Bypass
Valves• Superheat/De-Superheating
Valves• Pressure Transducers/Temp.
Sensors• Electronic Oil Controls• VFD Condenser Fans• Digital or VFD Compressor
1/suction group18
Scalable CO2 (R-744) System for Any Application
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Large
Medium to Small
C-Store / Restaurant
The Recent Evolution of R-290
• AHT began exploring natural refrigerants for self-contained in the 1990s
• Began serial production with R-290 in early 2000s
• More than 500,000 installations globally
• Thousands of installs all over North America
• Many other manufacturers online in recent years, with others to follow
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R-290 Micro-Distributed Architecture
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Images supplied by GreenChill Partnership Webinar on June 4, 2015, on “Supermarket Experiences with Micro-Distributed Refrigeration System Architecture”, Presented by Hussmann and Lowe’s Market
Life Cycle Climate Performance
DirectEmission
IndirectEmission
Refrigerant Leakage
Atmospheric Degradationof Refrigerants
Energy Consumption
Material Manufacturing
Material and RefrigerantRecycling
Refrigerant Manufacturing
LCCP
August 8, 2017ORNL’s Experiences Conducting Life CycleClimate Performance Test on Commercial
Refrigeration SystemsBrian Fricke (ORNL)
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Emerson “Enterprise Refrigerant Phase Down” Calculator
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Emerson “Enterprise Refrigerant Phase Down” Calculator (cont’d.)
(-71.7%) (-75.0%) (-77.3%)
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Regulatory Implications
Poll Question 2
• Very familiar
• Moderately
• Not very
How familiar are you with regulations pertaining to natural refrigerants?
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EPA Final Rules: July 20, 2015, and September 26, 2016Changed Listing Status of Certain HFCs*
*Abbreviated – For complete listing, see EPA Final Rule at: https://www.gpo.gov/fdsys/pkg/FR-2015-07-20/pdf/2015-17066.pdfSee EPA Final Rule; go to: https://www.epa.gov/sites/production/files/2016-09/documents/snap_status_change_rule_2_2060_as80.pdf
Final Rule: July 20, 2015 Final Rule: September 26, 2016
Phase-outrefrigerant
Supermarket(New**)
Supermarket(Retrofit***)
Remote condensing
unit(New)
Remote condensing
unit(Retrofit***)
Stand-AloneRefrigerated food processing and
dispensingequipment
(New)
Cold storage warehouses
(New)
Ice machines(New)
Verylow-temp
refrigeration(New)
MT < 2,200 BTU/hr.and not contain flooded evap.
(New)
MT ≥ 2,200 BTU/hr.with or without flooded evap.
(New)
LT(New)
LT and MT(Retrofit***)
R-404A/507A Jan. 1, 2017 July 20, 2016 Jan. 1, 2018 July 20, 2016 Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 July 20, 2016 Jan. 1, 2021 ^Jan. 1, 2023 OK OK
R-410A OK - OK - Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 - Jan. 1, 2021 ^Jan. 1, 2023 OK OK
R-407A/C/F OK OK OK OK Jan. 1, 2019 Jan. 1, 2020 Jan. 1, 2020 OK ^Jan. 1, 2021R-407C/F OK
R-407A:^Jan. 1, 2023
OK R-407C only
HFC-134a OK OK OK OK Jan. 1, 2019 Jan. 1, 2020 OK OK OK OK OK -Likely alternatives(Emerson perspective)
R-448A, 449A/449B OK OK OK OK - - OK OK OK - OK -
R-450A/513A OK OK OK OK OK OK OK OK OK OK OK -
R-290 - - - - OK OK OK - - - OK OKR-744 OK - OK - OK OK OK - OK OK - OK
R-717OK
(in primary loop of secondary system)
-OK
(In primary loop of secondary system)
-OK
(in primary loop ofsecondary system)
OK (in primary loop ofsecondary system)
OK (in primary loop ofsecondary system)
OK (in primary loop ofsecondary system)
OK (in primary loop ofsecondary system)
OK OK -
** Includes ice machines connected to a supermarket rack refrigeration system.*** EPA uses term “retrofit” to indicate the use of a refrigerant in an appliance that was designed for and originally operated using a different refrigerant. Term does not apply to upgrades to existing equipment where the refrigerant is not changed.
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Other Refrigerant Regulation Activity
Current Regulatory Proposals Target 150 GWP for Multiple Applications,Creating Demand for Refrigerants With GWPs of Less Than 150.
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Environmental Canada (EC)**:proposal November 26, 2016Commercial application GWP limit DateRefrigeration – centralized
systems (MT/LT racks) 1,500 2020
Refrigeration – condensing units 2200 2020
Refrigeration – LT stand-alone 1,500 2020
Refrigeration – MT stand-alone 700 2020
Foams 150 2021
Mobile refrigeration 2,200 2025
AC – chillers 700 2025Domestic refrigeration 150 2025
F-Gas (EU): effective May 20, 2014Commercial application GWP limit Date
Self-contained refrigeration 2,500 2020
Stationary refrigeration 2,500 2020
Self-contained refrigeration 150 2022
Centralized refrigeration 150 2022
– Except top side of cascade 1,500 2022
CARB: Short-lived climate pollutant reduction strategy — proposal Nov. 28, 2016 (comments Jan. 17, 2017)
Commercial application GWP limit Date
All refrigerant sales 2,500 ?
Non-residential refrigeration 150 ?
AC (non-residential and residential)
750 ?
** http://www.gazette.gc.ca/rp-pr/p1/2016/2016-11-26/html/reg1-eng.php
Comment period ends Feb. 8, 2017.
• Phase-down (NAP) option also proposed (2019 — 90%; 2024 — 65%; 2030 — 30%; 2036 — 15%; baseline 2011–2013)
Industry Efforts Are Increasing Around Flammable Refrigerants
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Building Codes for Mildly Flammable (A2Ls) Refrigerants Eligible for Fast-Track Adoption in 2018–2021 ICC Building Code Cycle
AHRI Flammable Refrigerants Research Subcommittee• Identify gaps in flammable refrigerant research• Develop road map to complete critical research for safe use• Focus on A2L and A3 refrigerants• Pushing for closure on items by end of 2017
Underwriters Laboratory and ASHRAE• Safety standards under revision to include mildly flammable refrigerant (A2L) accommodations• Charge increase proposal for A3 and A2L• Targeting end of CY 2017
– U.S.: UL 1995, ASHRAE 15, 34– International: ISO 5149, IEC 60335, EN378
Refrigerant Options
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R-410ALike
R-404A &R-407/22Like
R-134aLike
GWP Level
400–675
< 1500
~600
~300
R-410A
R-22R-407AR-407CR-407F, R-452A = XP44
R-452C = ARM-35
0 500 1,000 1,500 2,000
Pressureor
Capacity
R-32/HFC/HFOBlends
R-32/HFOBlends
HFC/HFOBlends
R-134a
CO2
R-404AR-507A
R-290
NH3
A1 – Non-Flammable
A2L – Mildly Flammable
A3 – FlammableB2L – Toxic, Mildly Flam.
R-123 Like(V. Low Pr.)
(3,922)
R-448A = N40R-449A = XP40R-449B = ARM-32N20
R-444B = L20L40R-454A = XL40ARM-20b
R-455A = L40x (HDR110)R-454C = XL20R-457A = ARM-20aARM-25
R-447B = L41z; R452B = XL55L41y, R459A=ARM-71a
<150
Qualitative – Not to Scale
R-515A
Watch: EPA SNAP, AHRIs A2L Research, IEC, ICC and UL Standards and Code Committee Releases, Equipment Manufacturers’ New Product Launches
R-32
DR2, HFO 1233zd
R-513A = XP10R-450A = N13z
HFO 1234yfHFO 1234zeARM-42
Refrigeration Application Alternatives Emerson’s Approvals in Progress or Complete
Volumetric Capacity/ Pressure
Naturals Mildly Flammable (A2L) HFO and Blends
Lowest GWP Non-Flammable (A1)
HFC/HFO Blends
Today’s Non-Flammable(A1) HFCs
Elevated
Medium“R-404A Like”
Low“R-134a Like”
GWP 0–5 0–150 350–1,300 1,300–4,000
R-744 (CO2)1
R-290 (Propane)3
R-717 (Ammonia)0
R-455A (HDR-110)146
R-454C (XL20)146
HFO-1234yf<1
HFO-1234ze<1
R-449A (XP40)1,282
R-448A (N40)1,273
R-513A (XP10)573
R-450A (N13)547
R-507A3,985
R-407A1,923
R-134a1,300
R-407F1,674
R-407C1,624 R-404A
3,943
A1 – Non-flammable
A2L – Mildly flammable
A3 – Flammable
B2L – Toxic, mildly flam.
R-515A392
R-457A (ARM-20a)139
R-449B (ARM-32)1,296
ARM-42131
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This List Is Subject to Change. Please Check Publication, Form 93-11,or With Emerson Representatives for Most Current Approvals in Progress. 31
Compliance Will Not Be Easy
CARB: All Commercial Refrigeration <150 GWP, Effective Date TBD.Natural Refrigerant Options Can Be Applied to All Commercial
EPA Refrig. DOE Energy
2017 2018 2019 2020 2021Supermarket (Rack)
Walk-In (Remote CDU)CoolerFreezer
Reach-In (Stand-Alone)
Cooler <2,200 BTU>2,200 BTU
Freezer
Ice Machine
Dispensing
<2,500 GWP
<2,500 GWP
20–40%
<600 GWP<600 GWP
<1,500 GWP
30–50%
5–15%
1/1/17
1/1/18
3/27/17
1/1/18R-290 approved
1/1/20
1/1/19
1/1/20
20–30%
<1,500 GWP
Withdrawn before publication in Federal Register. Under review by DOE.
Industry Preparedness to Meet Compliance Dates
Yes52%
Not yet44%
More Than Half Now Have a Basic Plan in Place, but 80% Are Not Ready for the Change.
Level of Preparedness:
EPA Plan in Place (n=46) DOE Plan in Place (n=47)
13% 52% 15% 17%
Very prepared Somewhat prepared
Only slightly prepared
Not at all prepared
15% 45% 19% 17%
Yes57%
Not yet36%
Level of Preparedness:
*Source: Emerson ResearchCR1. Does your company have a plan in place to meet the compliance dates?CR2. Overall, how would you rate your company on being prepared to meet the compliance dates?
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Commercial
Poll Question 3
• Safety• Cost• Servicing• Commercial risk• Other
If you have not implemented a natural refrigerant solution, why not?
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Europe: The Usage of Hydrocarbons Has Been Extended to Wider Refrigeration Applications
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R-290 Wider Market Acceptance in U.S. Tracking What Occurred in Europe
Self-contained cases (MT)
Secondary systems
Small cascade systems Condensing
units
• Emerging systemarchitecture
• Low charge allows HC usage• Discounters, supermarkets
• Alternative natural ref. solution• High-charge HC usage• Supermarkets, hypermarkets
• R-290/CO2 solution• Total natural ref. solution• Cold rooms, convenience
• Economical natural ref. solution• Low charge allows HC usage• Cold rooms, convenience
Hydrocarbons already established in low-temperature cabinets successfully
U.S. EPA SNAP-Approved End Use Applications for R-290Increasing Charge Limits and Resulting Codes/Standards Revisions Evolving
37
ASHRAE/UL Working With Industry on Flammable Research Sub-Cmte. and Completing Charge Limit Increase and Safety Standards Proposal.
Effectivity of an R-290 Charge Limit Increase Could be 2018 for Stand-Alone Equip.
R-290: U.S. 300–500 gram charge limit in proposal A2L: U.S. 1 kg charge limit in proposal IEC/UL/ASHRAE/ICC:
1/8HP 1/6 1/4 1/3 1/2
Domestic Refrigerators (53g)
Vending Mach.
Bev. Dispensers
UC/Prep
Bottle Coolers
3/4 1
1DS 1DG 2DS 3DS 3DG
X = Applications Not Approved by EPA SNAP Final Rule
X
Ice
Walk-Ins (Remote)
Commercial Reach-Ins
X2DG
150g Charge Limit Current
Larger Units Achievable With Multiple Systems
300+ g Charge Limit in ProposalIn Proposal
(stand-alone, OK)
R-290 U.S. Stand-Alone End Use Applications Did You Know?...
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EPAUL 427 Charge Limits
DOEWaivers
End Use SNAP-ApprovedCan use multiple 150g. refrig. systems in a single appliance
End Use SNAP-ApprovedCan use multiple 150g refrig. systems in a single appliance.Must mitigate 150g to 300g charge:
a. WICF volume min. per SA3.3.1 ORb. Refrigerant detection per SA4.3 ANDc. Class 1, Div. 2 components
Test Procedure Exists
Waiver not needed
Test Procedure Does Not ExistYes, OEM needs DOE waiver approval to sell
Be Sure to Consult Authority Having Jurisdiction (AHJ) for Additional Code/Standard Requirements Before Installing.
The Case for Naturals: R-290
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Charge Limit Increases Will Open up Market Opportunity for R-290.
Advantages• Hydrocarbon-based, non-synthetic
substance• EPA-approved in commercial
refrigeration applications• Very low environmental impacts:
GWP = 3; ODP = 0• High-efficiency, high-performance,
reliable• LT and MT applications that address
EPA and DOE compliance challenges
• Safe when proper protocols and procedures are followed
• Hydrocarbons can be used in multiple applications
Be Mindful Of• Classified A3 flammable refrigerant
• Not a “drop-in” refrigerant; equipment and components designed for R-290
• Globally mandated low-charge limits of 150g restrict application range
• Authority Having Jurisdiction holds final installation approval
• Lack of trained technicians to service
• Charge limit, safety and related legislations/regulations are the key areas to address for hydrocarbons
The Case for Naturals:
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Advantages• Future-proof from regulations• EPA-approved in commercial
refrigeration applications• Very low environmental impacts:
GWP = 1; ODP = 0• LT and MT applications that
address EPA and DOE compliance challenges
• Proven; efficiency, high-performance and reliable
• Safe when proper protocols and procedures are followed
• Versatile applications: Industrial, food retail, C-stores, commercial and residential heat pumps
Be Mindful Of• Not a “drop-in” refrigerant
• Higher pressures relatives to common refrigerants
• When system is off, mitigation strategies required to manage “standstill pressures”
• Low critical point 87.8 °F, requires gas cooler
• High triple point of 62 psig; need to avoid dry ice
• High ambient regions require specialized strategies to optimize energy
CO2 a Proven Future-Proof Technology for Many Applications
Some End Use Installations of Natural Refrigerants
WalgreensEvanston, ILNet Zero Store, Geothermal, CO2
SproutsDunwoody, GATranscritcal CO2Booster
Piggly WigglyColumbus, GAAmmonia/CO2 Hybrid
H-E-BAustin, TXR-290 Micro-Distributed
AldiBuffalo, NYTranscritical CO2Booster and Propane
MetroMontreal, QCAmmonia/CO2Secondary
IGAMagog, QCTranscritical CO2Booster
Whole FoodsSanta Clara, CAPropane Chiller/CO2Secondary and Cascade
Natural Refrigerants Are Gaining Traction in North America.41
DISCLAIMERAlthough all statements and information contained herein are believed to be accurate and reliable, they are presented without guarantee or warranty of any kind, expressed or implied. Information provided herein does not relieve the user from the responsibility of carrying out its own tests and experiments, and the user assumes all risks and liability for use of the information and results obtained. Statements or suggestions concerning the use of materials and processes are made without representation or warranty that any such use is free of patent infringement and are not recommendations to infringe on any patents. The user should not assume that all toxicity data and safety measures are indicated herein or that other measures may not be required.
Thank You!
More to Come,So Watch This Space!
Andre Patenaude – [email protected]
Allen Wicher – [email protected]
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