Transcript Slide 1

1
July 2009
Prepared for
CONFIDENTIAL
This Refrigerant Conversion Presentation (the
“Presentation”) is being furnished in strict confidence. This
presentation has been assembled by Source Refrigeration and
HVAC Inc. (“Source”). The sole purpose of this Presentation is to
assist the recipient in deciding whether to proceed with further
analysis of Refrigerant Conversions in conjunction with Source.
Use of this presentation is governed by the terms of this
Confidentiality Agreement, which strictly limits the use,
circulation and copying of the information embodied herein.
Any person in possession of this Presentation should familiarize
himself with this Agreement before reading, circulating or using
the Presentation. This Presentation may not be distributed,
reproduced, or used without the express consent of Source or
for any purpose other than the evaluation of Refrigerant
Conversions by the person to whom this Presentation has been
delivered.
Confidential and Proprietary property of Source Refrigeration and HVAC Inc. May not be
duplicated or disclosed without the expressed written consent of Source Refrigeration
and HVAC Inc.
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Phase-out Timeline
Refrigerant Options
Engineered Solutions
Nuts and Bolts
Developing a Retrofit Game
Plan
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66
Months
or
286
Weeks
(Until 2015 HCFC Phase-out date)
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Why Retrofit HCFC’s (and CFC’s)?
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Montreal Protocol defined phase out requirements for CFC’s and
HCFC’s. There will soon be a shorter supply of HCFC’s, and higher
costs.
CFC’s fully phased out in 1995, but still exist in some stores.
HFC refrigerants don’t contain chlorine, therefore are the only suitable
replacement gases.
A high percentage of new installations include HFC gases, and have
for a few years.
Global Warming becoming a bigger issue now than Ozone depletion.
90% of existing supermarket AC has R-22.
With production decline, concerns exist about plant capacity, and the
desire for the refrigerant makers to re-tool and shut down production
earlier, creating an imbalance in supply.
It’s best to be proactive, and not wait until the last minute!
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HCFC Phase-Out Milestone Dates
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1996: Production rate during this year used as the
basis for determining going forward HCFC production
2004: 35% reduction of HCFC’s from 1996
production rates
2010: 75% reduction (Recent Change from 65%)
2015: 90% reduction
2020: Full Phase Out (Recent Change)
A shortage in supply is expected during 2010, along with steady
price increases of R-22 to phase-out. Higher usage of HFC’s
doesn’t seem to be lowering costs as one might expect. Very little
reclaimed refrigerant is being put back into the market.
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Planned U.S. HCFC Phase Out
2003
R-22 Production
Allocated
2015
Forced
Reduction
Undefined
2004
35% Reduction
8,000
Changed to 75% reduction!!
2010
65%Reduction
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2021
2019
2017
2015
2013
2011
2015
90% Reduction
2009
2007
2003
2001
2005
13 SEER
Standard For
Home
Equipment
4,000
0
Year
120 million pound (est.)
R-22 Service Demand
for Installed base.
Demand likely to grow
through 2009.
Max 2015 consumption
only ~60 million lbs!
2010
No new 22
Equipment
12,000
1999
(1000 KG R-11 Equivalents)
ODP
2003
15,240 ODP
2020
Stop R22
Production
7
8
Millions
Estimated US R22 Supply Demand
for AC & Refrigeration
300
Total R22 Consumption
Allocation (lbs)
Quantity (million lbs)
250
AC & Refrigeration
Service Demand
Estimate (lbs)
Important Facts
1.
58% Supply Reduction Jan 1, 2010
2.
2010 demand exceeds supply by
more than 27 Million pounds
3.
2015 demand exceeds supply by
more than 22 Million pounds
200
150
100
R-22 Estimates based upon EPA Projections in lbs
2010 Supply estimate adjusted to EPA Proposed Allowance
Rule*
110 Million
50
2010 Demand estimate from U.S. Projected Servicing Needs**
137 Million
0
2007
2010
2015
*Based on December 23, 2008 EPA Allocation Draft Proposal to set HCFC limits to meet phasedown caps under the Montreal Protocol.
**“The U.S. Phaseout of HCFCs: Projected Servicing Needs in the U.S. Air Conditioning and Refrigeration Sector,” June 2008
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CFC: Chlouro-Flouro-Carbon refrigerant, still in use in some
retail locations, production stopped years ago. R502 & R-12
are CFC’s. Contains Chlorine, bad on ozone.
HCFC: Hydro-Chlouro-Flouro-Carbon. The Chlorine is still
in, less than CFC’s. Common types are R-22, R408A,
R401A, R402A.
HFC: Hydro-Flouro-Carbon. No Chlorine component, nonozone depleting, various degrees of GWP, Common gases
are R404A, R507, R134A, R410A. All current projects
should be using HFC’s.
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Global Warming Potential (GWP): measurement of a
compounds ability to affect the warming of the atmosphere
compared to Carbon dioxide.
Greenhouse Gas: One of the many gases that either
occur naturally or are fabricated that have an affect on
atmospheric warming. Methane, refrigerants, etc. are
typical greenhouse gases.
POE Oil: Short for Polyol Ester oil. Highly refined oil that
is typically only used with HFC refrigerants. Specific
blends by compressor manufacturer. Expensive. Absorbs
moisture quickly.
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Key Elements of a Conversion Program
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1. Consulting: Proprietary planning software that will organize with respect to
each stores conversion personality. Survey of stores, planning assistance,
budgeting, prioritization included.
2. Engineering: Detailed engineering review prepared to define each
conversion scope of work, and make recommendations for modifications
3. Conversion Execution: Source will execute conversions for our customers
either directly or through our subcontractor network.
Consulting
1
In-house
Engineering
2
Refrigerant
Change-out
3
Refrigerant
Banking/Transfer
4
Energy
Optimization
One Source for
Conversion Support
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4. Banking: Options available to simplify the tracking and handling aspects
of removing refrigerant.
5. Energy Optimization: Key element to any conversion, insuring the system
is as energy efficient as possible, and that the conversion actually includes
a cost savings component related to energy savings. Key byproduct that
Source is unique in offering…..
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<<Customer Portal
Budget roll-up by Division>>
Scheduling Tool >>
<< Division Budgeting Tool
Individual store detail >>
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There are many choices depending on the type of existing
refrigerant, and the nature of the installation.
Early conversion stores used the following retrofit gases:
R404A or R507. R134A has been used on some retrofits
where R-12 or a similar HCFC gas was in use. Oil changes
required for retrofit of these refrigerants.
More recent retrofit projects utilize refrigerants with lower
GWP (Global Warming Potential) ratings, that don’t require
oil changes. These refrigerants include R422D and R422A.
The package AC industry has moved towards R410A already,
which cannot be used as a retrofit gas due to it’s high
pressure.
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Most new systems are being installed with R404A or
R507.
Remodels are not being addressed at this point in
terms of refrigerant conversion. Cost budgets are the
main reason. Remodel complexity may increase with
the gas change.
New refrigerants may eventually wind up being a better
fit than existing R404A/R507 gases used in new stores.
New refrigerants that have been developed have better
ROI than traditional for conversions due to closer if not
better energy performance
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Refrigerants
R-22
R-134A
R-407C
R-410A
R-404A
R-507
R-422A (MO 79)
R-422D (MO 29)
MO-99
CO2
ODP
0.055
0
0
0
0
0
0
0
0
0
Direct GWP
1500
1300
1530
1730
3260
3850
2532
2232
1890
1
Currently, there are no restrictions on refrigerants with higher GWP.
With pressures to comply to the Kyoto Protocol, it is conceivable that
EPA will eventually address higher GWP gases with restrictions.
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R422D
R404A
R422A
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R422D
R404A
R422A
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R422A
R422D
R417A
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There are a number of items that must be addressed prior to starting a
conversion, and handled during the conversion. Some examples:
• Pre-Conversion leak check, repair of leaks, and component modifications.
• Coordination with Store Director with respect to the conversion time line, deliveries
of refrigerant to and from store, surrounding community, etc.
• Making sure proper equipment is in place, with a back-up plan. This includes
reclaimers, cylinders, vacuum pumps, hoses and gauges, all necessary materials
and the proper manpower to match the task.
• Coordinate product protection with the store Director.
• Provisions for handling case maintenance issues during the conversion (plugged
drains, bad fan motors, dirty cases, etc.)
• Removal process itself, must be well coordinated, and handled in such a way to
minimize store down time.
• Fine tuning, re-labeling, clean-up, leak checking, filter replacement, etc.
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•Conversion projects are organized to only have off line what is realistic
to convert in an overnight shut-down.
•Many details need handled, it’s important to not try and do too much at
one time.
•Most conversion projects start transferring refrigerant in the late
afternoon to other racks or cylinders. Cases are off between 8 and 9
PM.
•Refrigerant is removed typically by midnight.
•Modifications take place next with system flat.
•System is evacuated and prepped for charging.
•Re-charging and start-up typically by 6:00 AM
•Next day spent leak checking and fine tuning.
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<<Reclaim machine,
scale and refillable
cylinder
Vapor collection
manifold, large capacity
black hose >>>>
<<Piercing tool for hot
tapping pipe under
pressure
The more hose
the better>>>>
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Reclaim equipment, gas transfer
Refrigerant evacuation process…
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• Dry Ice and Visqueen in place
• Deli products left in cases
• Meat products removed
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Consulting
1
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In-house
Engineering
2
Refrigerant
Change-out
3
Refrigerant
Banking/Transfer
Energy
Optimization
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5
Refrigerant Banking/Transfer
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Source has a variety of services available to deal with
refrigerant that is removed from a store. Refrigerant
Options are as follows:
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Self Banking. Handled and tracked internally
“SourceBank”, low or no cost option
Banking Vendor. Up front cost per # to use.
Destroy.
“400” series gases can’t be banked.
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Consulting
1
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In-house
Engineering
2
Refrigerant
Change-out
3
Refrigerant
Banking/Transfer
4
Energy
Optimization
5
Energy Optimization:
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Each project needs to be fine tuned and commissioned as part
of the conversion process. We believe that an Optimization
Package is an integral part of each conversion event.
Source has many years of experience in this field, and will use
that experience to optimize each store to aggressively reduce
operating costs.
In some parts of the country, it may be possible to receive a
utility incentive for this portion of the work, further offsetting up
front expenses.
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Source and DuPont entered into an agreement in early 2008
for the purpose of supplying R-22 / MO99 kWH test data in a
controlled environment.
Testing utilized the Source Training Center in Chino Ca.,
which has multiple cases and controls connected to a 3
compressor rack system.
Instrumentation included a CPC E2 controller, as well as
Veris power metering. Test data included many operating
parameters including superheat, system temperatures and
pressures & product temps.
Test data was gathered under normal operating conditions
over 2-3 day periods, including subcooled and nonsubcooled conditions, and with ½ day periods at extreme
head conditions.
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Testing Fixtures
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Compressor system, cases, coils are all used, have been donated from live
stores, and include product simulation with 5 gallon water bottles. Space
environment kept as close to 75 F/ 55 RH as possible, but not perfect.
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Lower First Cost
◦ No line set changes
◦ No oil change
 No EPR plugging or TXV strainer plugging
◦ No TXV Changes
◦ Standard elastomeric seal changes (gaskets, o-rings, sight glass etc)
 Select modifications
◦ No condenser, receiver modifications
◦ Minimal control adjustments
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Energy Performance
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Lowest Total Cost of Ownership
Carbon Footprint
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◦ Lowest overall energy consumption of any R22 replacement refrigerant
◦ 42% lower GWP vs. 404A
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Energy Consumption vs. Outside Temperature (Hourly)
Condition 3 - Lo Discharge, Subcool
25
MO99 has similar energy
consumption as R-22
y = 0.335x - 10.825
R2 = 0.9087
Energy Consumption (Kw-hr)
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y = 0.3383x - 11.499
R2 = 0.8559
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R-22
MO99
Linear (R-22)
Linear (MO99)
10
5
0
50
55
60
65
70
75
Outside Temperature
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85
90
95
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Hourly energy consumption of ISCEON® MO99 was
statistically the same as R-22 within the variability of the
data
Suction and discharge pressures of ISCEON® MO99
were similar to R-22.
Minimal control setting changes were required
Use of liquid subcooling improved ISCEON® MO99
energy performance
Case temperatures with ISCEON® MO99 were similar to
case temperatures with R-22
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Source is promoting being proactive to our customers. If all
chains wait until there is short supply of HCFC’s, there may not
be enough refrigerant to go around, or tech’s to do the retrofit
work.
Planning in advance, adjusting to construction plans, using
existing refrigerant resources to defray new maintenance
expense with respect to refrigerant makes good sense.
Scheduling conversion work outside of the heat of the summer is
critical, allowing the best use of technician resources, and
imposing the least amount of operational concerns at the store
level.
Many chains are already underway in the industry.
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