Green economy with natural refrigerants

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3 Natural Refrigerants - Technology Transfer in Developing and Emerging Countries: Examples from the Praxis by Alvaro Zurita, GIZ Schaffhausen, Switzerland Friday, June 28th, 2013

4 Contents 1. GIZ - Proklima 2. Emissions from the RAC sector 3. Examples from the Praxis China: AC units with R290 India: AC units with R290 Swaziland: Conversion of domestic refrigeration South Africa: Conversion of supermarket systems Indonesia (Bali): New air conditioning system in a Hotel 4. Final remarks Schaffhausen, 28 June 2013 Page 4

Established in 1975 2,600 development projects and programmes In more than 130 countries With 67

5 Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH An international cooperation enterprise for sustainable development with worldwide operations Owned by the German Government Established in ,600 development projects and programmes In more than 130 countries With 67 own offices. ~17,000 employees, of which 12,000 employed in partner countries Schaffhausen, 28 June 2013 Page 5

6 GIZ Proklima a programme within GIZ Montreal Protocol: since 1996 Implementation of the German bilateral quota (20% of the German contributions to the Multilateral Fund) Advises governments of partner countries, companies on drafting local regulations, setting policies and replacement of ozone depleting technologies. Cooperates with countries in Africa, Asia, and Latin America in the fields of refrigeration, foam blowing, fire fighting equipment and agriculture Our approach: from technology demonstration projects to sector conversion! Schaffhausen, 28 June 2013 Page 6

GIZ - Proklima worldwide Summary 16 years worldwide initiatives ~ 245 projects ~ 40 Partner countries ~ 8,000 ODP tons reduced ~ 100 Mio tons CO 2 eq. reduced ~ 35.

7 GIZ - Proklima worldwide Summary 16 years worldwide initiatives ~ 245 projects ~ 40 Partner countries ~ 8,000 ODP tons reduced ~ 100 Mio tons CO 2 eq. reduced ~ trained technicians Integrated ozone and climate protection with focus on natural refrigerants with low-gwp and energy-efficient applications Schaffhausen, 28 June 2013 Page 7

8 Applications in refrigeration, air conditioning and foam technology Schaffhausen, 28 June 2013 Page 8

9 Direct and indirect emissions indirect emissions direct emissions Schaffhausen, 28 June 2013 Page 9

10 Global relevance ~15% of global energy consumption for cooling (7% growth/year until 2050) [IEA] ~40% of energy consumption in urban areas for refrigeration and air conditioning Up to 40% of goods perish along the (missing) cool chain Refrigerator and air conditioning unit are (next to light and tv) the top investments for poor families Up to 80% of energy costs of poor households come from the household refrigerator GWP! Schaffhausen, 28 June 2013 Page 10

11 Market volume in different applications in refrigeration and air-conditioning [billion EUR] Source: Study for EC F-Gas Review (Öko-Recherche/HEAT GmbH) Schaffhausen, 28 June 2013 Page 11

HFC - hydrofluorocarbons HFCs are widely

the basket of substances under the Kyoto

developing countries Expensive for economies

HCFC Phase out 100% 80% 60% 40% 20% 0% 2010

HFC-Phase down (proposals) 0% 2010 2020 2030

12 HFC - hydrofluorocarbons HFCs are widely neglected powerful greenhouse gases Belong in the basket of substances under the Kyoto Protocol Enormous growth rates in all developing countries Expensive for economies of developing countries HFC days are numbered HCFC Phase out 100% 80% 60% 40% 20% 0% % 80% 60% 40% 20% HFC-Phase down (proposals) 0% NAProposal FSM Proposal Schaffhausen, 28 June 2013 Page 12

13 Climate-friendly, sustainable alternatives for (nearly) all applications and regions! Mobile AC Domestic Ref. Comm. Ref. Industr. Ref. AC Foams CO CO 2, HC HC 2, NH 3, HC HC, NH NH 3 3, HC CO 2 / HC Schaffhausen, 28 June 2013 Page 13

14 The Greenfreeze experience: 20 years after 20 Years of Greenfreeze - Production of 700 Mio. fridges since 1992 Production of Greenfreeze refrigerators 50 to 100 % Production of Greenfreeze and conventional refrigerators No production or no reliable data available Schaffhausen, 28 June 2013 Page 14

China: Development of split AC units on HC-290 Pilot production line

units/year) Production of HCFC-/HFC-free RAC units -> HC Support

training Production capacity: 180,000 AC units per year Emission

15 China: Development of split AC units on HC-290 Pilot production line at GREE (worldwide s largest AC manufacturer - 70 million units/year) Production of HCFC-/HFC-free RAC units -> HC Support provided: Technology transfer, design advise Safety concept and training Production capacity: 180,000 AC units per year Emission reduction: 300 tons HCFC/HFC; tons CO 2 eq / year Schaffhausen, 28 June 2013 Page 15

16 China - Conversion of production line (AC)

17 India: Development of split AC units on HC-290 The Partner Company Godrej Group: one of the largest privately held Industrial Corporations Godrej introduced 100% CFC free refrigerators in 2000, using HC - the first and only Indian company to do so The Manufacturing Project 2010: Agreement, Ozone Cell/GIZ/Godrej to set up manufacturing facility for annual output of 180,000 Split and Window type AC 2011: Equipment Specifications, Tendering, Equipment Delivery Installation & Commissioning Jan ~ March 2012 TuV Audit of Manufacturing Line March 2012 Indian BEE Certification March 2012 Training of Trainers March 2012 Commercial Production April 2012 Schaffhausen, 28 June 2013 Page 17

with higher efficiency compressors Ozone and Climate friendly and higher energy efficiency R 290: GWP =3 (R22 / R410a,

18 India: Development of split AC units on HC-290 Some technical characteristics Compressor of 10% higher capacity Smaller diameter condenser tubes Micro-channel heat exchangers (brazed aluminium) Use of 50 channel condensers in conjunction with higher efficiency compressors Ozone and Climate friendly and higher energy efficiency R 290: GWP =3 (R22 / R410a, GWP > 1700), design has an energy efficiency at least 12% more than a standard 5- star AC. Schaffhausen, 28 June 2013 Page 18

19 India: Development of split AC units on HC-290 Gas charging station with ventilation ducting & gas alarms Repair area gas recovery system with ducting & gas alarm interlock Schaffhausen, 28 June 2013 Page 19

20 India: Development of split AC units on HC-290 Fire proof junction boxes in Refrigerant charging areas Ventilation system in HC 290 gas charging station with two speed option & gas alarm mechanism and complete power cutoff interlock Schaffhausen, 28 June 2013 Page 20

21 India: Development of split AC units on HC-290 Ducting mechanism for performance chamber Performance testing room with safety ducting & gas alarm interlocks Schaffhausen, 28 June 2013 Page 21

AFTER - The wire strands are connected in a

22 India: Development of split AC units on HC-290 Safety Measures in Product BEFORE - The wire terminal strands were soldered and then screwed to the terminal block. AFTER - The wire strands are connected in a thimble which is covered with an insulating sleeve. Schaffhausen, 28 June 2013 Page 22

23 India: Development of split AC units on HC-290 The Product AC Cooling Capacity : 3375W Compressor details : Rotary Power Supply : 230/1/50 (V/Phase/Hz) Power Input : 912W EER : 3.7 Star Rating : 5 Star AC Cooling Capacity : 4900W (now improved to 5000W) Compressor details : Rotary Power Supply : 230/1/50 (V/Phase/Hz) Power Input : 1325W EER : 3.7 Star Rating : 5 Star Schaffhausen, 28 June 2013 Page 23

Swaziland: Conversion of domestic refrigeration Conversion of production of domestic refrigeration units from HFC- 134a und -404A to HC-600a und HC-290 Support provided: Consulting on implementation

24 Swaziland: Conversion of domestic refrigeration Conversion of production of domestic refrigeration units from HFC- 134a und -404A to HC-600a und HC-290 Support provided: Consulting on implementation Technology transfer Safety concept and training Marketing and public relations (Palfridge) Production capacity: 100,000 units per year Emission reduction: 20 tons HFC; 29,000 tons CO 2 eq /yr Schaffhausen, 28 June 2013 Page 24

25 Swaziland: Conversion of domestic refrigeration production

26 Swaziland: Conversion of domestic refrigeration production

27 Swaziland: Conversion of domestic refrigeration production

28 Swaziland: Conversion of domestic refrigeration production

29 Swaziland: Conversion of domestic refrigeration production

30 Swaziland: Conversion of domestic refrigeration production

South Africa: Conversion of supermarket refrigeration Replacement of conventional centralised HCFC supermarket systems with CO 2 /Ammonia systems Outcomes 20-25% higher energy-efficiency Project

31 South Africa: Conversion of supermarket refrigeration Replacement of conventional centralised HCFC supermarket systems with CO 2 /Ammonia systems Outcomes 20-25% higher energy-efficiency Project avoids emissions of high-gwp, ODS refrigerants Meets all safety requirements of European safety standard Standard technology for new supermarkets Initiator for energy management measures in entire 770 stores Allocations in annual budget Cooperation and exchange with other players in the market Main competitors (Checkers, Spar, Woolworth, Shopwise, Makro) taking up technology and converting stores Schaffhausen, 28 June 2013 Page 31

32 South Africa: Conversion of supermarket refrigeration Abatement options supermarkets Conventional technology Centralised pack concept, HCFC-22 High leakage rate, large refrigerant charge Abatement Option Expected result Reduction of leakages Reduction of direct emissions Introduce Low-GWP refrigerant technology Reduction of direct emissions Improvement of energy efficiency Reduction of indirect emissions Schaffhausen, 28 June 2013 Page 32

33 Energy consumption, kwh/m2 cooled display area Energy consumption, kwh/m2 cooled display area South Africa: Conversion of supermarket refrigeration Energy efficiency: savings in supermarkets after conversion 400 Cape Town 400 Johannesburg/Gauteng Strand Average Cape Town Randpark Ridge Average Gauteng Schaffhausen, 28 June 2013 Page 33

34 South Africa: Conversion of supermarket refrigeration Greenhouse Gas Emission and Electricity Savings (overall calculated averages between project stores and new conventional stores) Strand Capetown Randpark Ridge Gauteng Energy consumption reduction 19% 26% Energy savings (MWh / year) Indirect emissions (tco 2 /year) Refrigerant emissions avoided (tco 2 eq/year) Total emission elimination (tco 2 eq/year) Eliminating refrigerant emissions of ca t CO 2 eq/year compared to the replaced ca. 20 year old refrigeration systems Schaffhausen, 28 June 2013 Page 34

35 South Africa - Supermarket refrigeration (NH3/CO2)

36 South Africa - Supermarket refrigeration (NH3/CO2)

37 South Africa - Supermarket refrigeration (NH3/CO2)

38 South Africa - Supermarket refrigeration (NH3/CO2)

39 South Africa - Supermarket refrigeration (NH3/CO2)

40 South Africa - Supermarket refrigeration (NH3/CO2) South Africa - Supermarket refrigeration (NH 3 /CO 2 )

41 South Africa: Conversion of supermarket refrigeration Upscaling to sectoral approach for supermarkets Ca. 1,500 supermarkets in South Africa Ca million t CO2eq/year Schaffhausen, 28 June 2013 Page 41

Indonesia (Bali): Installation of new air conditioning

42 Indonesia (Bali): Installation of new air conditioning system, Ramada Benoa Hotel 180 Guest rooms, spa, restaurant, etc Energy consumption: 3.2 Mio kwh/yr (old system) Refrigerant: R290 Savings: ca. US$ 15,000/month, 1.8 Mio kwh/yr, Return on Investment: 12 months Save 1,500 tonnes CO 2 eq/yr, between 40 60% lower CO 2 eq emissions Schaffhausen, 28 June 2013 Page 42

43 Indonesia (Bali): Installation of new air conditioning system, Ramada Benoa Hotel Schaffhausen, 28 June 2013 Page 43

44 Further relevant GIZ PROKLIMA projects The Green Cooling Initiative BMU, support the Technology Transfer Mechanism under the UNFCCC accelerated technology transfer (RAC) Establish Road Map for Green Cooling Green Cooling Networks regional technology partnerships sectoral technology partnerships Schaffhausen, 28 June 2013 Page 44

45 Further relevant GIZ PROKLIMA projects NAMAs in the RAC sector Objective: Establish tools and methodologies for NAMAs in RAC&Foam sectors Expected outcome: Enable decision makers to identify and estimate emission reduction potentials of climate friendly alternatives Guidelines for RAC sector specific NAMA preparation NAMAs ready to be submitted for funding (in Mexico, Thailand, ) Activities: Development of methodologies and instruments to inventory HFC production/consumption and to identify potential emission reductions Data collection & - analysis / Building an HFC inventory Ranking of options (taking into consideration technical feasibility, cost efficiency) Analysis of existing regulatory framework and standards, outline of applicable policy instruments and incentive mechanisms Schaffhausen, 28 June 2013 Page 45

46 Final remarks Developing and emerging countries: increasing demand for climate friendly technologies Technologies are proven and available Successful examples of Technology Transfer Challenges for market introduction in developing and emerging countries: removal of technical, cultural, political, and legal barriers Schaffhausen, 28 June 2013 Page 46

47 Thank you! Contact: Alvaro Zurita Proklima International Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Dag-Hammarskjöld-Weg Eschborn, Germany Internet: Schaffhausen, 28 June 2013 Page 47

United Nations Environment Programme

UNITED NATIONS United Nations Environment Programme Distr. GENERAL UNEP/OzL.Pro/ExCom/81/41 21 May 2018 EP ORIGINAL: ENGLISH EXECUTIVE COMMITTEE OF THE MULTILATERAL FUND FOR THE IMPLEMENTATION OF THE MONTREAL