Natural Refrigerants in Mobile Air Conditioning: Suppliers, Research & Timelines

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1 Natural Refrigerants in Mobile Air Conditioning: Suppliers, Research & Timelines Overview MARCH 2013 shecco

2 about shecco market development company focus: climate friendly technologies faster to market expertise: HVAC&R & transport sectors natural refrigerants: CO 2, NH 3, HC, H 2 O, Air electric vehicles areas: industry platforms ATMOsphere workshops market research / publications

3 market: HFC-free in the world 400 million HC fridges EU: 90% ammonia industrial refrigeration approx. 750,000 HFCfree vending machines (Coke + Pepsi) 1.2 million HC ice cream freezers (Unilever) 20 million cars with HC airconditioning EU: 16 CO 2 Heat Pump manufacturers the potential for HC chillers alone was estimated at 4 billion USD

4 ... in transport

5 CO 2 as a refrigerant (2011) worldwide the use of natural refrigerants increases example from one leading refrigerant supplier: 14% increase in volume from CO 2 shows the largest potential: +117% in volume / +88% in revenue increase source: refrigerant supplier with international operations

6 5 years ago: ready CO 2 MAC suppliers

7 5 years ago: ready CO 2 MAC suppliers

8 5 years ago: ready CO 2 MAC solutions Lubricants & Refrigerant Oils Heat Exchangers Climate Control Sensors Compressors Charge & Service Valves Complete MAC system Flexible Tubing / Hoses Accumulator R744 Charging Stations, Service Stations & Service Kit Leak Detectors Pressure Valves Compressor Test Rigs Connection Systems Pressure & Temperature Sensors Compressor Shaft Seals

9 Magna Powertrain today ixetic (Nov 2012 / Feb 2013): 2005: start of CO2 MAC compressor industrialisation, readiness for production in 2009 in 2008: contract for serial production of the first CO 2 compressor for MAC worldwide mid of 2009: belt driven compressor projects stopped due to refrigerant decision of OEM's electric compressor development continued in 2011: presentation of a Heating/Cooling-Unit with R744 for thermal management of EV's and batteries

10 Magna Powertrain today

11 Magna Powertrain today

12 Magna Powertrain today

13 Sanden today Sanden (Feb 2013): Sanden has completed research development of CO2 for Automotive AC. However we did not reach commercialization development because of the direction taken / decision made by customers to go for R1234yf. For commercialization, we have to develop together with Automotive manufacturers for performance, durability and other criteria because our parts (...) will be key devices for comfort. In the future, the alternative refrigerant may change again. Sanden has been developing / supplying CO2 products for the non-automotive area. This technology can be implemented to the products for automotive."

14 challenges and timelines for CO 2 MAC Kaco (Feb/Mar 2013): We had components for R744 ready in These components have been tested intensively internally and externally in excessive bench an vehicle fleet tests. We are ready to relaunch our project CO2 compressor shaft seal at any time. The relaunch of this project very much depends on the requested volumes. Samples we could supply within 3 months after order income. Low volume serial production (50,000 units/year) we could provide in 9 months. High volume production 1.5 years after order income. Our facilities for testing can be changed back in 3-4 months. We do not see any reason why a CO2 MAC should not fit to any size or type of cars. (...) Difficulties may appear in the service of the cars, especially and regions where you do not have "brand related" dealers.

15 challenges and timelines for CO 2 MAC Virtual Vehicle Competence Centre (Oct 2012): The AC supply industry continued to mature the technology and continued to innovate, i.e. CO2 air conditioners cooling indirectly via a water-glycol circuit allowing easy adaptability to new models, standardization and reduction of downtimes as well as CO2 based heat pumps....as components and circuit designs have been tested and proven to work during several fleet tests - it is supposed that components and systems could be available within reasonable time. University of Braunschweig - Institute for Thermodynamics (March 2013): Based on a common decision that CO2 will be used as refrigerant in car air conditioning systems I think that we still need about 5 years to commercialize R744 for car AC systems.

16 challenges and timelines for CO 2 MAC SINTEF (March 2013): R744 is a long term and sustainable alternative for MAC applications, especially there is a high potential for compact solutions for new vehicle platforms (electric / hybrid) to improve the comfort and increase the mileage of the cars (Heat Pump option). Regarding a timeline for R744: This depends on the contracts and conditions between OEM s and TIER 1 suppliers. It will take time to reorganize the teams at the TIER 1+2 suppliers, since most of the R744 MAC activity was stopped some years ago. There is a good chance to develop R744 MAC systems until the HFC-134a sunset in 2017.

17 challenges and timelines for CO 2 MAC Linde (Feb 2013): refrigerant business in more than 40 countries in 5 continents the constraining issue for R744 MAC will NOT be caused by the availability of the gas is sure that the industrial gases / refrigerant distribution business can provide however much CO 2 refrigerant is needed worldwide the challenges are in the availability of the MAC technology and ramping up the equipment for the cars + providing recharging equipment at the garages

18 challenges and timelines for CO 2 MAC Konvekta (Oct 2012/March 2013): We appreciate the decision of VW and Daimler to migrate to CO2 as a refrigerant in their vehicles. We believe that it is the right step towards efficiency, protection of our natural environment, and safety. (...) In general, CO2-based MAC-technology is scalable for any type and size of vehicle. (...) According to our knowledge the economies of scale of Daimler and VW alone would already economically justify the shift to CO2. The positive environmental effect would be enormous. The main remaining issues for the migration to CO2-based air conditioners (...) are economies of scale for the hardware and training of technicians in the value chain the same challenges like for any other new technology in any industry. For mass production in cars it realistically will take another 4 years before CO2- based air conditioners will substitute more than 20% of the obsolete technology in the western world. For niche applications the technology will already be available earlier, i.e. buses, e-cars etc.

19 Konvekta today: CO 2 MAC in buses first CO 2 MAC prototype version introduced in 1996 total number of buses equipped so far: 36 in Germany won the German Environment Award higher capital costs are offset by easier and less costly maintenance all new vehicles are EEV (Environmentally Friendly Vehicle) standard compliant to achieve highest emission reductions 2012: 12 new MAN buses operated by NIAG group (22 million passengers yearly) use CO 2 MAC for local and regional public transport 2012: Solaris is using Konvekta s new solution for electric buses using one R744 heat pump cycle to provide compartment heating & cooling + battery temperature control = increases operating range of vehicles by up to 40%

20 Konvekta today: CO 2 MAC in buses NIAG group (Jan 2013): The equipment has proved to be working so well in practice that we decided to only invest into this climate-friendly air conditioning in new vehicles

21 Konvekta today: CO 2 MAC in trains 2012: first hybrid prototype train uses R744 A/C system: Westfrankenbahn by German national train operator Deutsche Bahn reduction of energy use for A/C = 10% heating done by heat pump system during winter will be tested on 37 km long distance with 14 stops to test under frequent acceleration and deceleration conditions cools and heats both passenger compartment and driver s side Deutsche Bahn (Nov 2012): This is a big day (...) Deutsche Bahn will fortify its position as an environmentally and climatefriendly transport mode, increasing its head start

22 Konvekta today: CO 2 MAC in EVs 2011: Konvekta starts working on conceptual MAC systems especially for EVs to combine cooling and heating reheat function provides fast dehumidification and clearer front window = increased safety for drivers unit controls battery temperature to increase driving range by 40% and prolongs life cycle

23 recent CO 2 technology developments electrically driven compressors for R744 move towards hybrid & full-electric vehicles use of reversible R744 system for cooling and heating (heat pump mode) use of ejectors to improve efficiency - TU Braunschweig (Feb 2013): We are working on improving energy efficiency of R744 systems, also for mobile applications. Compared to an optimised basic CO2 refrigeration cycle we measured COP improvements of up to 15-18% due to the employment of an ejector

24 main messages in-house knowledge among CO2 MAC suppliers is still available + products have been tested & technology has been optimised in the meantime a clear commitment from OEMs is needed to provide investment security product availability can start now with mass production ready before 2017 for the 2 nd phase of the MAC Directive (R134a final phase-out)

25 HC as a refrigerant for MAC starting point: automotive industry s decision to go for a flammable refrigerant - why not use Hydrocarbons instead of HFC-1234yf? HCs are widespread in domestic, light-commercial applications, with wider adoption in stationary A/C expected refrigerant benchmark was carried out in 2011, to compare HFC-1234yf, HFC-134a, HFC-152a and different NR solutions (RE170, R600a, R290, R436B (52% R290 & 48% R600a))

26 HC as a refrigerant for MAC

27 HC as a refrigerant for MAC

28 HC as a refrigerant for MAC

29 HC as a refrigerant for MAC

30 HC as a refrigerant for MAC

31 GUIDEs: published & upcoming GUIDE Europe Feb 2012 GUIDE North America Mar 2013 GUIDEs 2013: Europe 2nd edition Japan China

32 ATMOsphere Europe 2012 Report Content: market & technology trends End-User panels links to presentations, including on CO2 MAC for passenger cars and electric vehicles EU policy & regulation reports/atmo_report_2.pdf

33 shecco - useful links Industry Platforms: GUIDEs: ATMOsphere 2012 Report / ATMOsphere Europe 2013: contact details: Market Research Team research@shecco.com

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