HFC Workshop India

louisianabodyElectronics - Devices

Nov 21, 2013 (3 years and 11 months ago)

69 views

HFC Workshop India


Tom Catania Vice President Government Relations

Whirlpool Corporation

February 2011


2

Why is Whirlpool still using HFCs in USA?

-
Cost of transition

-
Energy efficiency advantages of HFC 245fa trumps GWP impact

-
Cheapest and least consumer utility compromise for achieving high efficiency

-
HFCs can be used responsibly and recovered

-
HCs still are subject to VOC emissions rules

-
Even modest litigation risk in USA when using
isobutane

refrigerant in a no
-
frost
refrigerator can not be taken lightly in the US litigation, class action environment


-
Most importantly, new chemicals/technologies on short term horizon that may have
positive characteristics of HFCs without the negatives of HCs or HFCs


-
“RETOOLING FATIGUE”



3

Simple Message: TEWI (Total Environmental Warming Impact)

The “Use” Phase of a long lived residential refrigerator and the power plant emissions
associated with that use has a more significant environmental impact than the
manufacturing phase or end of life

especially if the refrigerants and blowing agents are
responsibly managed and recovered.


The ideal combination of refrigerants and blowing agents in residential refrigerators would
have zero ODP, very low GWP, low toxicity, be safe AND BE ABLE TO DELIVER THE
HIGHEST POSSIBLE LEVEL OF ENERGY EFFICIENCY AT THE LOWEST POSSIBLE COST
OR COMPROMISE OF CONSUMER UTILITY


HYDROCARBON FOAM INSULATION AND BLOWING AGENTS MAY NOT BE THE BEST/LAST
ANSWER


Refrigeration manufacturers have “retooling fatigue.”


-

CFCs
-
HCFCs
-
HFCs
-
HCs
-
HFOs
-
?


-

continuous
retoolings

steal capital from investment in new environmental
breakthroughs in the important areas of energy efficiency and smart products on smart
grids, for example




4

HC

Foam HFC / HCFC / NEW TECHNOLOGY?

High

GWP

Energy

ODP

GWP

ENERGY EFFICIENCY

CFC

HCFC

HFC

HFO

HFC

HCFC

CFC

HC

HFO

HFO

HCFC

HFC

CFC

Zero

High

Low

Best

Worst

HC


Ideal Equation for longer run would be 0 ODP , Low GWP , High Energy Efficiency



Foaming agents used today have element’s of all 3 , but not all the best characteristics




Managing proper disposal & usage of VOC’s ( Hydrocarbons ) during service , transport etc



HFC’s have been used extensively , however have a high GWP impacting the environment



HFO’s to provide the best new solution moving forward for energy & environmental benefits

Ideal
Opportunity

5

GDP / GROWTH / PENETRATION / POTENTIAL


India Case

Refrigerators are a

~6.2

mn units industry, growing aggressively

YOY

Currently, only 14% of the market is penetrated, expected to grow to 25% by 2015


Most of the Indian market is Direct Cool (78%)

DC market is growing faster than the Frost Free market,


driving refrigerator penetration in India

Growth of low income purchasers and total volume requires solutions that don’t drive the wrong behavior

CAGR 11.5%

CAGR 8%

India’s Economic Prosperity

Indian Consumer’s buying
potential

Higher sales of refrigerators
( e.g. DC ) products on the market

Need to make the right selection
of Blowing Agents and
refrigerants with the broader &
longer environmental picture in
mind

+

=

Potential Equation

6

Providing value to the masses

Entry
-
level consumers for both Direct Cool and No Frost are extremely price
-
conscious,
seeking ‘value for money’

Energy efficiency / Eco moved up from 8
th

to 4
th

place in importance in purchasing an
appliance (behind brand, price & color)















HC’s significantly increase the GWP effect on the environment moving forward


Early tests not in optimized refrigerator and assumes full venting of HFCs



Consumers Understand Energy Efficiency, not GWP… Continue To Seek ‘Value’

Direct Cool sales in INR

No Frost sales in INR

BULK SALES ON
ENTRY LEVEL
PRICES POINTS

Source : DuPont

HFO

HFC
-

245

HC

HFC
-

134

7


Risk of converting too early?

HIGH ODP

LOW GWP

ZERO ODP

ZERO ODP . LOW GWP ,
ENERGY EFFICIENCY

CFC

HCFC

HFC

HC

BLENDS

HFO


Manufacturer’s globally as well as in India to comply with global regulations for material usage ( HFC etc )



Every step requires a large investment from a manufacturer that affects product cost , design etc

o

Investments need to be recouped from sales resulting in possible price increases



Unique situation in India as compared to mid 1990’s CFC phase out

o
Energy Regulations are very stringent from 2012


2014 ( 60% jump )

o
Environmental regulations force manufacturers to comply for chemical phase out

SHOULD NOT FORCE THE USE OF A CHEMICAL RATHER SUPPORT THE DEVELOPMENT OF THE RIGHT CHOICE FOR THE
ENVIRONMENT

Ideal Opportunity

3
-
4 years until
mass
production
( est. 2014 / 15)

8

Impact on the Indian energy grid

Analysis of the impact of energy standard changes on the overall energy consumption














Note:
Illustrative

calculations only, qualitatively correct; Market penetration & growth have been factored in

-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
3,000.00
2010
2012
2014
Average energy
-
star
purchases continue at
today's levels
Average energy
-
star
purchases change in
line with plan (20% in
2012 & 40% in 2014)
Indian grid consumption (mil.
Kwhr
/yr.)
Energy regulations impact on the Indian grid
Need to Promote Energy Efficiency & Eco Conscious Lifestyle for the Indian Consumer


Currently, on average, India’s average buying is ~3.7 energy efficiency level



If they move up by 20%, then overall energy consumption will come down
(GREEN)



If average buying behavior does not change
DUE TO
COST
, overall energy consumption will increase
(RED)

Today

9

Conclusion


India should not rush into a sub
-
optimum solution
that limits potential “use phase” emission reductions*

Our Proposal for residential refrigerators: Modest delay (1
-
2 years) in HCFC phase out

India could lead rest of the world in development and export of next generation solution

*Or has the unintended consequence of consumers trading down to less expensive, but less efficient models

10

Thank you !

12

Synergy between Energy Efficiency & TEWI

ENERGY


EFFICIENCY

ATMOSPHERIC



EFFECTS

KEY TAKEAWAY’S

ENERGY EFFICIENCY


20% JUMP IN 2012


40% JUMP IN 2014

RESPONSIBLE USE OF
MATERIALS


2013 phase out for HCFC


Overall goal by Montreal
Protocol to reduce carbon
emissions by 2030

INDIA FACED WITH CHALLENGES OVER THE NEXT FEW YEARS TO LOWER OVERALL ENERGY INTENSITY


WHILE PHASING OUT HCFCS

RIGHT BALANCE
NEEDS TO BE
ACHIEVED AND NOT
MUTUALLY
EXCLUSIVE

13

TODAY’S LANDSCAPE BUT NEED TO LOOK FURTHER?

CFC

HCFC

HFC

HC

HFO

Time

Environmental Impact

Energy Benefits :

Medium

High

Low


No ideal BA found that has
0ODP , low GWP , and high
energy benefits

Use of HFC’s growing
however still has a high
GWP

INNOVATION UNDER THIS SPACE TO PROVIDE MOST IDEAL BLOWING AGENT SOLUTION FOR THE ENVIRONMENT

Aim to drive right investment’s
for an ideal blowing agent !

14

Unique Issues to the Indian Market



Supply Base Impact if moved to a foam that impacted energy & environment:


o

Use of High Efficiency components like VIP’s , VCC compressor’s to meet energy regulations 2012
-
2014

o


Diminishing return’s and high cost’s could potentially lead to higher product cost

o

Consumer’s forced to purchase lower energy efficient product

o

These step’s would negate entire purpose of reducing energy & environmental impact in the country



Lack of Incentives for higher energy rated & environmentally friendly products


o

Lack of incentives by the govt to drive higher sales of energy & environmentally friendly products

o

Manufacturers forced to comply to standards however unsure on consumer behavior

o

Funding opportunities present in multiple regions like Mexico ( e.g. UNIDO funding )



Infrastructure Concerns


o


Servicing of VOC’s

o


Incremental increase in material costs & import duties



Other?

15

Opportunities for India



Infrastructure





Government & Manufacturers partnership in developing low cost components for the
“World”

o

Foam ‘s , refrigerant’s , etc




Providing incentives for manufacturers to assist in the Indian government’s goal to help reduce energy
efficiency & carbon emissions part of the 11
th

five year plan

o

Incentivize use of high cost components like VIP’s VCC’s etc




Create an EPR framework for safe disposal of components

o

Create awareness amongst Indian consumer for the need of supporting global cause



Look for opportunities beyond regulatory landscape that would help make
“India a leader in this space”

o

Partner with key leader’s in technology development in new areas like Smart Grid




Consumer Awareness



Creating an awareness for the need & value to purchase energy & environmentally friendly products

o
Promote the use of product’s with special consideration’s from govt & manufacturers

o
Tax credit’s / rebates for energy & eco friendly product’s