The Case for R-290 in U.S.

Commercial FoodserviceReviewing the pros and cons for wider adoption

of this low-GWP natural refrigerant alternative

February 18, 2016

Allen Wicher

Mike Saunders Emerson Climate Technologies

Agenda

1. History / Industry Background

2. U.S. Regulations

3. Advantages and Applications

4. Challenges and Misconceptions

5. Flammable Refrigerant Evolution

6. Pros and Cons

Refrigerant and Minimum Energy Efficiency Regulations Require Industry to Balance the Equation

Reduce energy consumption with

optimized refrigeration equipment

system performance.

Ensure EPA compliance and

reduce GWP with refrigerant

choices that minimize impact

to equipment performance.

Preserve reliability, serviceability

and safety. Understand the toxicity,

flammability and pressure implications.

Estimate the total cost of ownership

and viability of technology changes.

Best solution for end users.

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

ON

climate change

Regulations

Refrigerant Change Being Driven

by Regulations and Voluntary Actions Environment

Global regulatory actions to ban high-GWP refrigerants

place renewed emphasis on natural alternatives.

EPA’s Final Rule, July 20, 2015,

Changed Listing Status of Certain HFCs*

Phase-out

Refrigerant

Super-

market

New*

Super-

market

Retrofit***

Remote

Cond. Unit

New

Remote

Cond. Unit

Retrofit***

Stand-alone

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/507AJan. 1,

2017

July 20,

2016

Jan. 1,

2018

July 20,

2016Jan. 1, 2019 Jan. 1, 2020

Jan. 1,

2020

July 20,

2016

R-410A OK - OK - Jan. 1, 2019 Jan. 1, 2020Jan. 1,

2020-

R-407A/C/F OK OK OK OK Jan. 1, 2019 Jan. 1, 2020Jan. 1,

2020OK

HFC-134a OK OK OK OK Jan. 1, 2019 Jan. 1, 2020 OK OK

Likely

Alternatives

(Emerson

Perspective)

R-448A/449A OK OK OK OKNeither SNAP-

approved, nor banned

Neither SNAP-approved,

nor bannedOK

OK for LT

only

R-450A/513A OK OK OK OK OK OK OK OK

R-290 - - - - OK OK OK -

R-744 OK - OK - OK OK OK -

R-717

OK(in primary loop

of secondary

CO2 sys.)

-

OK (in primary loop of

secondary CO2

sys.)

- - - - -

* Abbreviated — see EPA final rule for complete listing; Reference: Federal Register / Vol. 80,

No. 138 / Monday, July 20, 2015 / Rules and Regulations, 42870-42959

** 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.

Environment

R-410A

Like

Capacity

R404A &

R407/22

Like

R134a

Like

GWP Level

400-675

< 1500

~600

~300

HFO 1234yf

HFO 1234ze

ARM-42

R410A

R22

R407A

R407C

R407F, R452A

0 500 1,000 1,500 2,000

Pressure

or

R32/HFC/HFO

Blends

R32/HFO

Blends

HFC/HFO

BlendsR134a

CO2

R404A

R507A

DR2, N12, ARC 1

R290

NH3

A1 – Non-Flammable

A2L – Mildly Flammable

A3 – Flammable

R123-Like

(V.Low Pr.)

(3922)

R32

R32/HFO

Blends

R448A

R449A

R450A

R513A

R444B = L20

L40, DR7

ARM-20b

HDR110

DR3

ARM-20a

R446A, R447A, ARM-71a

<150

B2L – Toxic, Mildly Flam.Qualitative – Not to Scale

EstablishedAvailable NowOEMs Testing

Environment

Alternatives for Refrigerant Applications

Many <150 GWP refrigerant alternatives have

increased flammable characteristics.

Summary for Refrigerant

Changes

You Will Continue to See Refrigerant Changes and a

Movement Toward Low-GWP Refrigerants

No Clear Path to a Single Replacement

Many Lower GWP (<150) Refrigerant Alternatives Carry

an Increase in Flammability

More Flammable Equipment May Mean Increased

Regulation, Training and Specialized Handling for

the Market

Environment

No silver bullet refrigerant alternative.

Redesigns are widespread. Results require system-wide

optimization.

Where We Are: Regulations and Refrigerants

Today 2019

EPA Refrigerants

Low GWP Blend

CO2

Low GWP Blend

R-290

Low GWP BlendR-290

Low GWP Blend

% M

ark

et

100%

40%

100%

50%

Today Voluntary Today 2018 Today 2017

0

20

40

-37%-35%-17%

-25%

Today 2017

SupermarketCA Title 24

Walk-InIceReach-In

DOE Energy

% E

ne

rgy

2012 2013Today 2018 Today 2020

EnergyEnvironment

Economics

Equipment

2016 2017 2018 2019 2020

Supermarket (Rack)

Walk-In (Remote CDU)

Cooler

Freezer

Reach-In (Stand-Alone)

Cooler <2,200 BTU

>2,200 BTU

Freezer

Ice Machine

Compliance Will Not Be Easy

<2,500 GWP

<2,500 GWP

20–40%

<600 GWP

<600 GWP

<1,500 GWP

30–50%

5–15%

EPA Refrig.

DOE Energy

1/1/17

1/1/18

3/27/17

Awaiting Final Court Sign-Off

1/1/18

1/1/20

1/1/19

1/1/20

20–30%

EnergyEnvironment

Economics

Equipment

Opportunity to comply with one

design cycle change

The Industry Is Going Through a Refrigerants Transition Phase

Factors Influencing the Choice of New / Alternative

Refrigerants

Investment Cost

Regulations

Components Availability

Operational Cost

SafetySystem

Architecture

In Natural Refrigerants,– R-744 (CO2) Has Been Gaining Good Market Acceptance and Proven

to Be a Good Alternative

– R-290 (Hydrocarbons) — With Excellent Thermodynamic Properties

Can Be Another Attractive Candidate

EnergyEnvironment

Economics

Equipment

Decreasing alternative refrigerant minimum GWP thresholds

likely to drive market development of naturals.

U.S. R-290 Adoption

EPA SNAP approved, very-low GWP Alternative Refrigerant

Efficiency Benefits

Foodservice Market Leaders Driving OEM’s

http://www.fierceenergy.com/story/mcdonalds-

eyeing-net-zero-energy-restaurants/2015-02-03

Environment

Energy

OEM’s working directly with End Users on integrating

renewable energy solutions like R-290 where applicable.

Other Use Conditions and

Recommendations

– Color-coded hoses and piping: To indicate use of a flammable refrigerant that will help technicians identify the use of a flammable refrigerant

– Labeling: Warning labels featuring letters at least one inch high must be permanently affixed to the equipment until their end of life.

– Unique fittings: Household and retail refrigerators and freezers using HCs must have fittings unique to flammable refrigerants.

– Small containers: To prevent purchase by untrained people, the hydrocarbon refrigerants will not be sold in containers in quantities of less than five pounds (2.8 kg).

– Handling by trained personnel only: EPA recommends that only technicians specificallytrained in handling flammable refrigerants undertake the servicing or disposal of equipment containing hydrocarbon refrigerants.

For New Equipment Only

– Not intended for use as a retrofit

alternative

Safety Standards

– HC Refrigerant (propane) may be

used only in equipment that meets

all requirements in UL Standard

471 9th edition regarding propane

in retail stand-alone equipment.

Refrigerant Charge Size

– Retail food refrigeration in stand-

alone units: 150 grams (5.3 ounces),

in line with the IEC 60335-2-89

standard for commercial appliances

EPA’s ‘SNAP’ Program for Hydrocarbon Refrigerants in Commercial Refrigeration

EnergyEnvironment

Economics

Equipment

Various use conditions to consider.

Results from Emerson’s test labs, comparing the Energy Efficiency Ratio (EER) of R-404A to R-290 in medium and low back pressure (MBP), show a significant improvement when using R-290.

R-404A and R-290 EER Comparison Environment

Energy

R-290 yields 20%+ better EER efficiency over R-404A.

Refrigerant Charge < 150 gm for Retail Stand-Alone Equipment

No Retrofitting of Equipment to R-290 Is Allowed, Only New Equipment

Safety Standards for Equipment Manufacturers

– UL-471

– IEC 60335-2-24: Household refrigerators and freezers

– IEC 60335-2-34: Motor compressors

– IEC 60335-2-89: Commercial refrigerators and freezers

– IEC 60335-2-40: Heat pumps, air conditioners and dehumidifiers

UL 471, SB1 Contains Additional Specifics for Flammable Refrigerants– Fittings Types to Be Used (no quick connect)

– Design Space and Construction Guidelines

– Leaks and Leak Tests to Be Performed

– Ignition Tests to Be Done

– Labels and Markings Required on Equipment

AHJ (Authority Having Jurisdiction)– Local Authorities Such as State, Local as well as Fire Marshals May Have

Other Restrictions

R-290 Codes and StandardsEnvironmentEquipment

Must comply with design and safety standards and be sure to

check AHJ before installing equipment.

Flammable Refrigerants Create Challenges

Refrigerants Approved by the EPA Under

Significant New Alternatives Policy (SNAP)

Limitations

Stand-Alone Units Only

Charge Limit of 150 Grams (5.3 Ounces)

Currently No Formalized Certification

of Service Technicians

No Channel Developed for Service

Replacements for Compressors

Liability ConcernsR-290 (Propane)

R-600a (Isobutane)

R-441A (a blend)

Guideline for technicians

with info on best practices

EnvironmentEquipment

Servicing infrastructure needs development.

Servicing

Specialized Training for R-290 is Not Required, But Highly Recommended

– Refrigeration Service Engineers Society, RSES.org

Flammable Refrigerant Leak Detector Required– Leave on while servicing

Place Safety Placard Advising No Smoking or Open Flames

R-290 May Be Recovered, But Is Not Required. It Can Be Vented to the

Atmosphere.

Brazing Recommendations– Work in well-ventilated, open spaces.

– Eliminate all ignition sources.

– Purge system with dry nitrogen to displace any trapped propane.

– Continue purging during brazing process.

– Tubes should be cut with tubing cutter vs. torch.

– Evacuate to minimum 500 microns.

Charging Procedures Are Same for R-290 as HFC Refrigerants

EnvironmentEquipment

Adherence to servicing procedures a must.

R-290 U.S. Commercial ApplicationsCharge limits/codes/standards evolving

R-290: U.S. 300 gram charge limit in proposal (CE-2020)

A2L: U.S. 500 gram charge limit in proposal (CE-TBD)

1/8HP 1/6 1/4 1/3 1/2

Domestic Refrigerators

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

Commercial Reach-Ins

X2DG

150 g Charge Limit

Larger Units Achievable With Multiple Systems

X

IEC/UL/ASHRAE:

EnergyEnvironment

Economics

Equipment

In U.S, significant headwinds exist to increase charge limits.

Europe: The Usage of Hydrocarbons Has Been Extended to Wider Refrigeration Applications

Self-Contained Cases (MT)

Secondary Systems

Small Cascade Systems

CondensingUnits

Emerging System

Architecture

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

R-290 has a wider market acceptance in Europe vs. U.S.

The Case for R-290 in U.S.

Challenges

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

Difficulty getting approved in fire and building codes

Lack of trained and certified technicians

Market is currently missing a complete product and safety training course

Charge limit, safety and related legislations/regulations are the key areas to address for hydrocarbons

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 addresses EPA and DOE compliance challenges

Safe when proper protocols and procedures are followed

Hydrocarbons can be used in multiple applications such as secondary systems, self-contained cases and condensing units

EnergyEnvironment

Economics

Equipment

Charge limit increase in U.S. will likely

bring increased regulations.

Thank You!

DISCLAIMER

Although 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.

Questions?

Allen Wicher Mike Saunders

Director, Marketing—Foodservice Senior Lead Innovation Technologist

937-493-2496 937-726-4928

allen.wicher@emerson.com mike.saunders@emerson.com