Posts Tagged ‘refrigerators’

 

China’s HVAC & R sector: temporary downturn but will recover soon

Monday, February 20th, 2012

China Household Electrical Appliances Association released the latest output, sales and exports numbers of China’s HVAC&R sector. China's HVAC&R sector: temporary downturn but will recover soonAlthough the sales of refrigerators, freezers and air-conditioners slowed down in 2011, manufacturers believe the downturn is temporary and will recover soon. Updating products becomes their strategy to increase sales in 2012.

On 13 January 2012, the China Household Electrical Appliances Association (CHEAA) held a media conference to review the development of the Chinese home appliance industry in 2011. Output, exports and sales numbers of China’s HVAC&R sector were released during the conference.

Boosted home appliance production
CHEAA said that stimulated by the Chinese government’s home appliances rural subsidy scheme and home appliance replacement programme, the home appliances industry achieved breakthroughs in output and exports.
In the HVAC&R sector, the manufacturing and export saw a record growth surge in 2011. From January to October 2011, the combined output of household refrigerators reached 63 million units, a year-on-year increase of 8-9%; the production of air-conditioners increased by 20% and reached 95-97 million units. The export delivery value of refrigerators, freezers and compressors increased by 3.3%, 10.2% and 17.7% respectively.
Growth of sales in China’s HVAC&R sector slows down
The sales of refrigerators, freezers and air-conditioners slowed down in 2011. According to CHEAA, the sales of refrigerators dropped 18%, the sales of air-conditioners dropped 12% in China’s 24 cities in 2011. The growth rate of exports in the sector also declined over the same period in the previous year. Exports of this sector are not looking promising for 2012 especially considering the continuing decline in the US economy, the unresolved European debt crisis and stagflation in new markets. Lack of market demand in both domestic and overseas markets will be the main difficulty facing China’s HVAC&R sector in 2012, from which it traditionally derives high revenue.

Reasons for the slowdown in sales growth include fluctuation of the macro economy, turbulence in the price of raw materials as well as the downturn of the real estate market in China.
A period of upgrading
The business environment for the Chinese HVAC&R industry is not very promising based on the sales and exports in 2011. Many Chinese home appliance manufacturers have begun to revise their market strategy to spur domestic consumption and increase competitiveness in overseas markets. Updating products seems to be the common choice of many manufacturers.Haier, one of China’s biggest household appliance manufacturers stresses innovation and high technology in its market strategy this year and will push for market share through premium products such as frost-free and three-door refrigerators. Midea, another home appliance producer in China, is also planning to finish upgrading its most modern air-conditioner in two years. The updating aims to improve quality and add innovative elements for their low-carbon products. Manufacturers in China have realised high efficiency products would better meet consumers’ demand and increase sales.

Most Chinese home appliance manufacturers believe the downturn is temporary and recovery is around the corner. Although the end of China’s national home appliance replacement programme in 2011 cooled down the household appliance market, there still exists large market potential because many Chinese families need to replace their old household appliances in 2012.

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UPDATED: DOE’s proposed efficiency standards have impact for hydrocarbons

Tuesday, January 17th, 2012

Highlighting current trends toward eco-efficiency, U.S. Energy Secretary Steven Chu announced new proposed energy efficiency standards for residential refrigerators, refrigerator-freezers, and freezers.The proposed rulemaking committee also explored the use of hydrocarbon and other natural refrigerants in the efficiency standards discussion, though eliminated hydrocarbons as a design option for most product classes. Update: The DoE adopted the standards on 25 August 2011, however they do not consider hydrocarbon refrigerants as a design option to reduce the energy use.

With the proposed standards, the energy use of most refrigerator-freezers will decrease by 20% to 25% by 2014 compared to today’s appliances.

Consideration of hydrocarbon refrigerants

The American Council for an Energy Efficient Economy (ACEEE), Appliance Standards Awareness Project (ASAP), Earthjustice, and the Natural Resources Defense Council (NRDC) all stated that the Department of Energy (DOE) must consider hydrocarbon refrigerants as a design option because hydrocarbons are in widespread use overseas.

This was in response to the DOE’s decision to eliminate alternative refrigerants as a design option for most product classes. Reasons given for the decision included: potentially lower thermodynamic efficiencies, lack of current approval for use, or, in the case of hydrocarbons, current UL safety requirements allowing use in only limited quantities.

Earthjustice and NRDC both claimed that the DOE has not provided evidence to support the exclusion of isobutane as an alternative refrigerant, which the DOE considered as a design option only for compact refrigerators.

Although the DoE has acknowledged that isobutane refrigerants may soon become available, it has not considered hydrocarbons as a possible alternative in the final rule on Energy Standards for Residential Refrigerators and Freezers, due to consumer concerns as well as insufficient information with regards to the energy savings characteristics.

Current allowable use of hydrocarbons

The Association of Home Appliance Manufacturers (AHAM) commented that the relevant safety standard—Underwriters Laboratories (UL) Standard 250—currently limits the quantity of hydrocarbon refrigerants permitted in refrigeration products to 50 grams, suggesting that the quantity is insufficient for most typical refrigeration products. It was noted that UL had recently reopened the rulemaking process for UL 250 under a proposal calling for a higher hydrocarbon limit.

The UL proposal for modification of UL 250 calls for a transition from an allowance of 50 g refrigerant being permitted to escape from a refrigeration product in case of a leak to a higher limit of 60 g total charge. UL’s next step would be to convene a Standards Technical Panel meeting, which would likely be held no earlier than autumn 2010.

Additionally, the Environmental Protection Agency (EPA) recently published a proposed rule addressing hydrocarbon refrigerants, which includes a proposal to include isobutane on the EPA’s Significant New Alternatives Policy (SNAP) program list of allowed alternative refrigerants. The EPA proposal calls for a total charge limit of 57 g of isobutane.

General Electric (GE) stated that although the UL restriction may make it difficult to use isobutane, it does not make it impossible, and that UL may consider increasing the limit.

Sub Zero agreed with GE’s comment but pointed out that there can be a capital expenditure associated with adopting isobutane refrigerant or hydrocarbon blowing agents. However, Sub Zero made no reference to potential longer-term savings or environmental benefits regarding hydrocarbons or isobutane.

The US Department of Energy has refused to make any speculations about the limits of isobutane refrigerant until the EPA rule and the revision of the UL 250 standard are final.

Concerns with HFCs

Many stakeholders noted the trend away from HFC use both worldwide and in the United States, commenting that the DOE’s analysis should more thoroughly consider this trend in order to avoid becoming immediately outdated, and that the DOE should develop cost-efficiency analyses that account for a mandated phase-down of HFC substances.

  • AHAM commented that upcoming regulations and legislation on the phase-down of HFCs could have a substantial impact on efficiency in refrigeration products
  • AHAM and Whirlpool argued that analysis that does not account for an HFC phase-down would likely result in unattainable energy consumption standards

Large Companies Resistant

Discussions among several large manufacturers have identified some resistance to an industry-wide voluntary acceptance of natural refrigerants.

  • GE advocated for a transition to low-GWP foams and refrigerants
  • Whirlpool and Sub Zero both stated that they believe a phase-down of HFCs would have a net negative impact on energy efficiency and manufacturing cost
  • Whirlpool stated that it would not switch to non-GWP substances unless required by legislation.

Initial investigation of the compressor vendors supplying high-efficiency compressors and variable speed compressors during the preliminary analysis phase indicated that one compressor supplier, Embraco, served as the primary source for these components.

Embraco is a business unit of Whirlpool S/A, a majority- owned subsidiary of the Whirlpool Corporation.

Isobutane as a Proposed Design Option

The DOE calculated the potential range of isobutane charge levels that could replace the HFC-134a refrigerant in the products purchased for reverse engineering as such:

  • The actual charge of each product was converted to an equivalent isobutane charge (measured in grams), by adjusting for the lower density of isobutane
  • The equivalent isobutane charge levels for these products were in excess of both the EPA-proposed limit and the charge limit in the UL 250 standard, except for compact refrigerators
  • The DOE proposed that engineering changes (ex. adding a second refrigerant loop) would be needed for a standard-size refrigerator-freezer to meet those charge levels
  • The DOE maintained that it wishes to avoid promulgating standards that would reduce the utility of a product, believing that isobutene engineering changes needed for meeting existing charge levels would do exactly that.

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SNAP ruling opens US market to hydrocarbons: the industry reacts – part 2

Monday, January 16th, 2012

This second article collects the views of some industry players on whether the US EPA approval of hydrocarbons in household and SNAP ruling opens US market to hydrocarbons: the industry reacts - part 2small commercial stand-alone refrigerators and freezers, could be seen as the beginning for introducing hydrocarbons in other applications. The industry players also reflect on how fast a transition to hydrocarbons could happen in the US.

Towards accepting hydrocarbons in additional applications

“I am pleased that this approval gets us one step closer to bringing this efficient technology to many different consumer applications”, notes A.S. Trust & Holdings’ Richard Maruya, the inventor of refrigerant blend R441A, one of the three approved refrigerants.

“We expect that this is the first small step in the direction of opening up the US market to hydrocarbons in many other applications and we are hopeful that this announcement is an indication that the US regulatory system has decided to change course and work towards “catching up” rather than continuing to fall behind”, says John W Clark, Technical Advisor, HyChill Australia Pty. Ltd..

Of course, “safety factors and applied cost will continue to be the market drivers relative to further acceptance”, emphasises Keith Gifford, Director of Global Marketing at Tecumseh Products Company. “We’re already seeing some evaluations of central systems that may make more sense to be de-centralised for use with HC refrigerants”.

However, “there can be little confidence that approval in other applications will happen any time soon, given the level of opposition to HCs in the US, and the onerous and cumbersome approvals process of the regulatory authorities”, notes Brent Hoare, Executive Director of the Green Cooling Association, the Australian based organisation for environmentally responsible refrigeration and air-conditioning practitioners.

This will also depend “on whether the charge size limitations can be increased in the future”, highlights Nicholas Cox, Managing Director of UK based Earthcare Products Limited.

Industry’s readiness and willingness for a smooth yet gradual transition to hydrocarbons

Asked about whether they consider the industry ready and willing for a smooth transition to hydrocarbons (conversion of manufacturing plants, servicing infrastructure, training of technicians, etc), Mr Maruya notes that “the implications of this type of transition, as a general concept, has been considered for years, as various HFC and HCFC refrigerants have been phased out”. Talking specifically about their own experience he notes: “My company has been addressing the larger implementation issues at every step of our development programmes; for example, we have designed a safety valve for automotive air-conditioning systems that will easily be added to new car cooling systems that employ our hydrocarbon blends. We have also created Material Safety Data Sheets in compliance with standard industry practices, and have been working for years with ComStar International, a leader in the development and marketing of industrial strength, environmentally safe HVACR chemical products, to ensure safe and practical compliance at all levels of operation.”

“I have no doubt that the US appliance, HVACR and automotive industries are up to the task to put in place the necessary production, training and servicing training that will be required”, notes Steven P. Mella, Chief Executive Officer at ComStar International Inc, which has been working with A.S. Trust & Holding Co. and has the production and distribution rights to R441A. “The groundwork for the conversion of manufacturing plants, servicing infrastructure, training of technicians, etc is already there, not so much in the US but in select countries around the world where hydrocarbon refrigerants are being manufactured, sold and in use”. ComStar already manufactures R441A at its US plant and is now making preparations to supply Asian customers from its China plant, while it will also begin offering safety certified compressors in the US and overseas markets using the hydrocarbon blend.

According to HyChill, the transition is unavoidable but will be gradual, as it will take time to reverse the significant resistance to hydrocarbons in the industry that has been built up over an extensive period of time. The Green Cooling Association shares the same views: “Unfortunately the assertion of unrealistic flammability risks has been made so frequently and strongly in the US that I fear it will take a long time to overcome the misplaced apprehension that appears to exist there, but I’d love to be proved wrong about this”.

Tecumseh also believes that the movement within North America to hydrocarbon refrigerants will be a gradual one. “As a result, the transition won’t have an immediate impact on the vast majority of refrigeration contractors and service technicians. However, the transition is inevitable and the industry needs to be adequately prepared”, says Mr Gifford.

When it comes to the industry’s willingness to move towards hydrocarbon solutions, Mr Cox is less optimistic in the short term: “At the moment there are no indications that the US industry is willing for a smooth transition to hydrocarbons” he notes, “But if EU manufacturers are prepared to start exporting to the US and if the Chinese follow then the US industry will have to change, willing or not!”

 

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SNAP ruling opens US market to hydrocarbons: EPA and end-user perspectives

Monday, January 16th, 2012

The US Environmental Protection Agency (EPA) gives its perspective on its recent approval opening the US market to three SNAP ruling opens US market to hydrocarbons: EPA and end-user perspectiveshydrocarbons in household and small commercial stand-alone refrigerators and freezers, outlining its impact on the market players, especially retailers inside and outside the US.

Global acceptance of hydrocarbons to gain momentum

“While hydrocarbon equipment has been available in many countries for over a decade, the acceptance by the US EPA will give other countries confidence that, within these types of products, hydrocarbon refrigerants can be used safely,” says David Godwin, an engineer and refrigeration expert in the Alternatives and Emission Reduction Branch of the US Environmental Protection Agency’s (EPA) Stratospheric Protection Division.

“Hydrocarbons are one of the many choices that can be used to ensure that substitutes chosen during the phase out of ozone-depleting substances are sustainable in the long term,” he adds, pointing out that this decision will speed up the acceptance of these refrigerants on a global scale.

Training and certification

From the consumer point of view, there will be no change in the equipment, “apart from lower electricity bills,” Mr. Godwin notes. Another change for the HVAC&R industry will be the training and education that is necessary for handling hydrocarbon refrigerants. “EPA’s SNAP rule made several recommendations regarding technician training and maintenance practices. We expect that technicians will want the additional skills needed to identify and properly handle hydrocarbon refrigerants, and that training programs will develop to provide this type of specialized training.”

Mr. Godwin remarks that, “technicians will need to be on the lookout for the labels and markings that are required as use conditions. These markings will alert them that the refrigerant inside is flammable and that proper safety precautions must be taken when working on the equipment.”

Impact on retail industry

When questioned about the influence on the retail industry, Mr. Steve Hagen of Fresh & Easy who is a member of EPA’s GreenChill programme, said that “it will allow us to move forward with the self contained propane cases we have trialed.” However, referring to the willingness of industry in general to move towards hydrocarbons, he expressed concerns by saying that “as with everything new and different there will be a lot of resistance and while progress will be made, it will be slow and cautious.”

According to Mr. Godwin “propane stand-alone units are expected to become more common, and will likely be requested, as GreenChill members and others look to reduce their carbon footprint and improve their bottom line with lower electric bills.”

“The recent SNAP rule allows the entire supermarket industry to take another step in reducing their impact on the ozone layer and climate change, “ he added.

Prospects for other hydrocarbon applications

With respect to the outlook for allowing hydrocarbons in additional applications, Mr. Godwin confirms that, “the US EPA’s SNAP program has other applications for the use of hydrocarbon refrigerants under review now. Just as EPA did for stand-alone refrigerators and freezers, SNAP will be working with the submitters to perform risk assessments for the new products. EPA will continue to work with safety organizations and the industry in general to assess these risks and understand what conditions might be necessary for the safe application of hydrocarbons. Although we can’t prejudge what the outcome of those evaluations will be, we certainly see a path forward for hydrocarbons in other refrigeration and air conditioning applications.”

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