IMPACT EC F GAS REGULATION (EC 842/2006) AND PROPOSED GLOBAL WARMING LIMITS ON VACUUM WEB COATERS. James Stenhouse

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1 IMPACT EC F GAS REGULATION (EC 842/2006) AND PROPOSED GLOBAL WARMING LIMITS ON VACUUM WEB COATERS James Stenhouse

2 IMPACT EC F GAS REGULATION (EC 842/2006) AND PROPOSED GLOBAL WARMING LIMITS ON VACUUM WEB COATERS - HCFC PHASE-OUT Montreal Protocol eliminated ozone depletion by CFC and HCFCs Pressure is now to reduce global warming. Koyoto Protocol & Cancun Agreement Refrigerant Primer Plant Impacted HCFC Phase-out Schedule & Milestones Servicing Existing Equipment after 2010 Servicing Existing Equipment after 2014 Options Retrofit, Replace or Scrap Considerations Retrofit Guidelines

3 REFRIGERANT CLASSES - PROGRESSION CFC Banned no equipment should be using these e.g. R11, R12, R13 Only chlorine HCFC Banned no equipment should be using these e.g. R22, R12, R13 Chlorine and Fluorine HFC Currently in use zero ODP, but impacted by Global Warming targets HFE similar but low GWP Natural No halogens e.g. Ammonia, CO2, hydrocarbons. (Toxic, flammable or difficult to handle)

4 WEB COATING PLANT IS RELIANT ON REFRIGERATION ALL PLANT IS IMPACTED BY EU LEGISLATION Water chillers Vacuum pumps and air-conditioning On-board Drum Chiller In vacuum substrate cooling Polycold Water vapour pumps (mixed gas refrigerants)

5 EURO HCFC REDUCTION SCHEDULE

6 % Price Increase HCFC-(R22) PRICE 550% HCFC-22 Cylinder Pricing* *DuPont Sales Price Indexed to Jan % 450% 400% 350% 300% 250% 200% 150% 100% Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08

7 EUROPEAN MILESTONES FOR HCFC PHASE OUT Date January 2000 January 2010 January 2011 January 2015 January 2016 January 2020 Milestone Ban on importation and installation of new plant containing HCFCs Ban on use of Virgin HCFCs for servicing of existing plant Price of HCFCs (R22) doubles Ban on use of HCFCs for any purpose - may however continue to use existing plant Ban on new equipment with gases of GWP more than 2500* CO2= 1 Ban on gases with GWP of GWP more than 150

8 SERVICING EXISTING HCFC EQUIPMENT You must use accredited engineers from F-Gas registered companies You must have regular compliance checks for leakage You may not use virgin HCFCs R22 & R123 You do not have to replace existing equipment Existing equipment using HCFC can be serviced but only using recycled HCFCs Supplies of HCFC-22 are very limited and cost is high You may not stockpile refrigerants

9 SERVICING EXISTING HCFC EQUIPMENT AFTER 2015 After 2015, no plant containing HCFCs may be serviced. You must carry out mandatory leak checks policing is getting tighter. You may continue to use the plant if it doesn t leak. If there is a leak your plant may not be serviced using HCFC What can you do?

10 LEAK TESTING FREQUENCIES Frequency Normal Hermetically sealed systems None Less than 3 kg Less than 6 kg Annual 3 kg to 30 kg 6 kg to 30 kg 6-monthly* Quarterly* 30 kg to 300 kg Automatic leak detection required Greater than 300 kg Automatic leak detection required

11 OPTIONS Businesses Must: Audit all refrigeration plant (determine refrigerant status and condition) Establish a leak testing protocol compliant with EC 842/2006 Formulate a plan to minimise cost an potential disruption. Businesses with HCFC plant have three options: Retrofit existing system to alternative refrigerant possible on all systems including mixed gas units. Buy a new system that uses an approved refrigerant Continue to operate existing system - until failure Most businesses have converted rather than replace. This takes time and a planned approach. You must consider the embedded nature of plant, often there is little practical choice but to convert.

12 RETROFIT POTENTIALLY MEANS SOME COMPLEX ENGINEERING CHOICES R-22 R-502 R-404A R-507 R-422B R-422D R-427A R-434A R-407A R-407C R-417A R-422A

13 THINGS TO CONSIDER 1. Condition 2. Location - Ease of removal 3. Control gear / integration with other plant 4. OEM supplied / support 5. Age of plant 6. Energy consumption & capital allowances available 7. Alternative technologies free air cooling and heat recovery

14 Retrofit Opportunity Retrofits is most widespread strategy to prepare for HCFC-22 phase-out in existing plant

15 EUROPEAN GLOBAL WARMING TARGETS Date Milestone January 2000 Ban on importation and installation of new plant containing HCFCs January 2010 Ban on use of Virgin HCFCs for servicing of existing plant January 2011 Price of HCFCs (R22) doubles January 2015 Ban on use of HCFCs for any purpose - may continue to use existing plant January 2016 Ban on new equipment with gases of GWP more than 2500* CO2= 1 Elimination of R404 January 2020 Proposed Ban on gases with GWP of more than 150 (HFE and Naturals)

16 WHAT ARE CURRENT GWP PROPOSALS & WHAT WILL BE THEIR IMPACT? HFC supply frozen at 2015 levels Maximum GWP levels set for refrigerants including blends Managed reduction in supply to 21% of 2015 by 2030 Control of imported units containing HFCs (banned?) No supply or pre-charged split systems (aircon & Polycold) Polycold - No impact, derogation for units operating at lower than -50oC units accepted. But pre-charged split ban may have an impact. Air-conditioning Definitely impacted best option will be to replace as there are often good incentives and simple alternatives (Daikin) Chillers Proposals are currently for smaller commercial systems principally aimed at food processing which is the biggest user of refrigeration. Large amount of installed plant means change will favour conversion. Much of web coating should be exempt but.

17 GWP STRATOX CASCADE HCFC FREE MIXED REFRIGERANTS IN POLYCOLD TYPE SYSTEMS 1,400 GWP of Cascade HFC Mixed Gas Refrigerants CO2 = 1 1,200 1,

18 HCFC REPLACEMENT IS NOW WELL ESTABLISHED AND UNDERSTOOD Most contractors have experience of the procedure. Take advantage of improvements in control and compressor oil management Retrofitting usually improves performance The choice is complex in many cases the capital cost and loss of production weigh against replacement, it should not however be ruled out.

19 SUMMARY Change is coming Establishing good maintenance inline with regulation leads to overall improvements in plant performance To replace or convert plant is a complex and individual choice. General industry has in the main opted for conversion over replacement of plant. The specifics are not clear but the direction of travel is, low GWP refrigerants and lower energy consumption + zero leakage. Incentives for early adopters are being provided by national government schemes.

20 CONTACT INFORMATION James Stenhouse Stratox Limited Starting points Greencool US EPA