Posts Tagged ‘China’

 

UPDATED: China’s leading air conditioner companies shift to R290

Monday, January 16th, 2012

In China’s first technology roadmap for the home appliance industry, replacing HCFCs with new refrigerants will be the main task of UPDATED: China's leading air conditioner companies shift to R290China’s air conditioning industry in the future. As profit margins have become tighter, China’s leading air conditioner companies have shifted their attention to R290 (propane) to reduce costs and increase competitiveness. Update: Midea’s R290 compressor production line has become an official Montreal Protocol Implementation Demonstration Project.

China’s air conditioning industry has passed its peak development period to enter into a period of constant growth. In recent years, facing the pressure of rising raw materials cost and labour, excessive production capacity and intensified inflation, reducing costs while increasing core competitiveness becomes the main task of most companies.

Reducing profits space calls for lowering costs and new technologies
According to the financial reports of five major household air conditional companies, the average gross profit of 2010 was 19.6%, 4% lower than that of the previous year. Price wars in China’s air conditioning market continue to put pressure on companies’ profit margins. Therefore, the country’s big companies are gradually shifting their attention to adopting new technologies to gain profits again. As the amount of R290 needed in refrigeration system is 30 to 40% less than R22 many companies bet on propane as the future of the industry.
China’s A/C leaders bet on R290
Concretely, this year, China’s two leading air conditioner manufacturers Gree and Midea have released their research and application results of alternative refrigerant products. Gree announced the completion of the world’s first hydrocarbon refrigerant R290 split-type air conditioner demonstration production line. Key products of Midea using R290 have passed quality testing and manufacturing standards, and are ready to be commercialised. Both Gree and Midea have exhibited their new R290 products at major international HVAC shows.

GMCC R290 compressor line signed as UN Demonstration Project

At the “New Environmentally-friendly Refrigerant Key Technology Appraisal Conference” this year, Midea’s GMCC R290 compressor production line successfully passed technical evaluations. Its technology using refrigerant R290 was evaluated by the experts and won unanimous acceptance that the technology is safe, energy efficient and environmental friendly. Thanks to their efforts, Midea have become an official Montreal Protocol Implementation Demonstration Project funded by United Nations Multilateral Fund (MLF). Representatives from the United Nations, the China Ministry of Environmental Protection (MEP) and the China Household Electrical Appliances Association (CHEAA) witnessed the signing ceremony of the MLF Demonstration Project.
In recent years, Midea, one of China’s leading air conditioner producers has continuously invested in the research and development of market applications of natural refrigerants. The release of its R290 technology is an important step towards Midea’s concept of “technology achieves environmental protection”. Their R&D efforts have enabled Midea to find an environmental friendly substitute refrigerant, and the company has now developed some R290 compressor representative models adopting the latest DC inverter technology. The company has also developed DC inverter air conditioners with energy efficient grade level 1.

Roadmap aims to replacing HCFCs with HCs
Besides big air conditioner companies, hydrocarbon technologies are also encouraged by industrial associations. In December 2011, the China Household Electrical Appliances Association (CHEAA) issued China’s first technology roadmap for the home appliance industry with puts a focus on replacing HCFCs with new refrigerants. By 2015, the roadmap plans to reduce the consumption of HCFC-22 by 10% compared with the average amount of 2009 and 2010.
More importantly, it aims to realise the industrialisation of hydrocarbon technology and complete the replacement of HCFC-141b among companies producing refrigerators, freezers and electric water heaters. It calls upon the industry to widely adopt low GWP refrigerants and blowing agents such as CO2 and R290. By 2020, the use of R744 (CO2) as natural refrigerant in production of freezer will meet requirements of “Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment” (RoHS). Overall, by 2015, the roadmap aims to increase refrigerator energy efficiency by 20%, and by 2020 by another 15% based on 2015.

Multilateral Fund (MLF)
The Multilateral Fund was established by a decision of the Second Meeting of the Parties to the Montreal Protocol (London, June 1990) and began its operation in 1991. The main objective of the Multilateral Fund is to assist developing country parties to the Montreal Protocol whose annual per capita consumption and production of ozone depleting substances (ODS) is less than 0.3 kg to comply with the control measures of the Protocol. Currently, 147 of the 196 Parties to the Montreal Protocol meet these criteria. They are referred to as Article 5 countries.

2012 outlook: expectations by the hydrocarbons industry

Monday, January 16th, 2012

hydrocarbons21.com has talked to industry representatives from the US, Europe and Australia about their expectations in 2012 2012 outlook: expectations by the hydrocarbons industryregarding natural refrigerants and hydrocarbons in particular. Read on for their insights regarding opportunities, threats and policy developments that could impact the market update of hydrocarbons in North America’s HVAC&R sector, Europe’s automotive sector, and China’s AC sector.

hydrocarbons21.com: In which markets and applications do you see the greatest opportunities for natural refrigerants in 2012?

Brent Hoare, Green Cooling Association (Australia): “As there are so many established and emerging applications in so many different markets around the world it is very difficult to foretell where the greatest opportunities lie – one thing is certain, and it is that there is tremendous room for expansion everywhere, both building on the base of well established experience, and by taking the initiative and developing innovative solutions.

“While in Australia there is a palpable sense of anticipation about the significance of the impact of imposing carbon pricing on HFCs from July, driving new demand for training opportunities, there are obviously much larger gains to be made in opening up the North American commercial refrigeration market to CO2 and hydrocarbons, or encouraging China’s air conditioning manufacturing industry to ramp up production of hydrocarbon split systems. I’ve thought for a long time it is only a matter of time before the European car manufacturing industry recognises hydrocarbons as the obvious solution to the HFC problem, and hopefully with the introduction of the “Thermal Event Suppression System” by Obrist Engineering at Atmosphere 2011, this year will be the year measurable progress is finally made?”

Steven P. Mella, ComStar International Inc (US): “By the US EPA opening the door to the U.S. market for hydrocarbon refrigerants in select applications, namely residential refrigerators, window air conditioners and small commercial refrigerator freezers, we believe those OEMs serving these markets will actively begin developing plans for market entry by the end of 2012. In fact, I can tell you that there are a number of international companies already working with our R441A HC refrigerant for these applications as well as other soon to be approved applications”.

Nicholas Cox, Earthcare Products Limited (UK): “MACs and supermarket refrigeration will remain the greatest opportunities, but we will see growth in air conditioning and heat pumps at long last!”

hydrocarbons21.com: Where do you see potential threats to the natural refrigerant business in the next 12 months?

Hoare: “Aside from the economic threat of further recessionary developments around the world, at a policy level it would be a very big setback if the Parties to the Montreal Protocol are unable to reach agreement on the 25th anniversary of the treaty on the need to expand their work to include measures to control and reduce the use and emissions of HFCs. Failing to reach agreement on the HFC amendment proposals this year would certainly be a massive missed opportunity to protect the climate by accelerating the uptake of natural refrigerants.”

Richard Maruya, A.S. Trust & Holdings’ (US): “There are large influential companies who have vested interest in other refrigerants besides hydrocarbons. This will be the potential problem in holding back clearances through government agencies for hydrocarbon use in America”.

Cox: “EU recession is the greatest threat – with budgets being slashed and minimum first cost regardless of real cost becomes acceptable once again. The other threat comes from unsaturated HFCs, the so called HFOs – assuming they can be produced at a marketable price”.

hydrocarbons21.com: What do you think will be the policy development (in terms of legislation/regulation/government action plan) impacting the most on your business over the next 12 months?

Hoare: “Without doubt the introduction of carbon pricing on HFCs in Australia and in New Zealand this year will begin a process of great change in the industries here, and although it is highly likely to take several years for the impacts to become fully apparent, I’m optimistic that we will rise to the challenges and create an example that other countries, regulators and markets will be convinced is worth following.”

Cox: “The review of the EU F-Gas Regulation must produce something tangible this year, I’ve attached my New Year wish list but wouldn’t expect more than half of my suggestions to be adopted”.

Maruya: What could hold back the use of hydrocarbons in the US could be “the opposing others placing legislation to restrict hydrocarbons in America. The current example is the (limited allowable) charge amount, which does not affect R441A but it does affect other hydrocarbon refrigerants”.

Mella: “I don’t see much by the way of a US Government action plan that will affect hydrocarbon refrigerants in the next few years. However, if the US EPA approves HCs for other applications we believe the market, the consumers, would want safe HC products with proven energy reduction resulting in lower energy bills while at the same time benefiting the environment. If the EPA opens the door and the market takes notice, then industry will fill the need and demand”.

About the respondents

Mr Brent Hoare is the Executive Director of the Green Cooling Association, the Australian based organisation for environmentally responsible refrigeration and air-conditioning practitioners.

Mr Steven P. Mella is Chief Executive Officer at ComStar International Inc has the production and distribution rights to R441A. ComStar manufactures R441A at its US plant and is now making preparations to supply Asian customers from its China plant. Moreover, together with its Chinese joint venture company it will begin offering safety certified compressors in the US and overseas markets using hydrocarbon blend refrigerant R441A.

Mr Nicholas Cox is the Managing Director of UK based Earthcare Products Limited, which provides sustainable cooling products, from small refrigerators to large custom-built building services plants.

Mr Richard Maruya of A.S. Trust & Holdings’ is the inventor of hydrocarbon refrigerant blend R441A and one of the three recently approved refrigerants for use in the US.