Achieving Multiple Objectives in the Phase-out of Ozone Depleting Substances

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1 Achieving Multiple Objectives in the Phase-out of Ozone Depleting Substances Mack McFarland, Ph.D. DuPont Fluoroproducts

2 Agenda 2 DuPont Mission Sustainable Growth The Montreal Protocol success story Considerations in continued success Available options for HCFCs/CFCs Conclusions/Observations

3 DuPont Mission Sustainable Growth 3 The creation of shareholder and societal value while we reduce the environmental footprint along the value chains in which we operate. Fluorochemicals Role DuPont Accomplishments Fluorochemicals contributed Significantly to: Reduction of almost 60% in greenhouse gas emissions in 2004 compared to 1990 baseline DuPont Goals for 2015 Fluorochemicals will contribute significantly to: Further reduce greenhouse gas emissions by 15% compared to 2004 baseline Grow revenues by at least $2 billion through products that reduce customers greenhouse gas emissions by at least 40 million tons carbon dioxide equivalent

4 4 DuPont Refrigerants Vision We will use our science and technology, market knowledge and global reach to provide sustainable materials and solutions to enhance personal comfort, enable preservation of perishable items and improve industrial processing while reducing environmental footprints.

5 5 An Industry in Transition Thousands of tonnes Transitions due to Ozone Regulations CFCs HCFCs HFCs Other Refrigerants Refrigerants Foam Expansion Solvents Propellants Fire Extinguishants

6 Montreal Protocol: A Model for Success 6 Return to 1980 Effective Stratospheric Chlorine has been Benchmark for Montreal Protocol From: TWENTY QUESTIONS AND ANSWERS ABOUT THE OZONE LAYER: 2006 UPDATE Lead Author: D.W. Fahey;

7 Climate Benefits of the Montreal Protocol 7 The Montreal Protocol will have reduced net GWP-weighted emissions from ODSs in 2010 by 5-6 times the reduction target of the Kyoto Protocol. From information in: Velders Guus J. M., Stephen O. Andersen, John S. Daniel, David W. Fahey, and Mack McFarland, The importance of the Montreal Protocol in protecting climate; Proceedings of the National Academy of Sciences, published online Mar 8, 2007.

8 What Contributed to Climate Benefits? 8 About 80% of business-as-usual fluorocarbon use was displaced by Non-fluorocarbon gases Non-fluorocarbon technologies Better containment and service practices for refrigerants Lower GWP fluorocarbon gases used as replacements

9 Transition with ODS Phaseouts 9 CFCs R-502 GWPs 4,750 10,900 6,130 4,590 First transition HCFCs b 142b 123 GWPs 1, , HFCs 134a R-410A R-404A 245fa GWPs 1,430 2,088 3,922 1,030 Low GWP Alternatives (e.g., new fluorochemicals, ammonia, hydrocarbons, CO 2, new technologies) GWPs from IPCC AR4

10 Environmental Protection from the Accelerated HCFC Phaseout Estimated 47% decrease in emissions of HCFCs to the atmosphere and a reduction in risk of future ozone depletion of about 6% 10 Max HCFCs Estimated GtCO 2 -eq reduction in GHG emissions significant wrt Kyoto Protocol targets Velders et al., 2007 Ultimately, climate benefit depends on choice of substitutes, and refrigerant management practices

11 Transition with ODS Phaseouts 11 CFCs R-502 GWPs 4,750 10,900 6,130 4,590 First transition HCFCs b 142b 123 GWPs 1, , Second transition HFCs 134a R-410A R-404A 245fa GWPs 1,430 2,090 3,920 1,030 Third transition? Business-as-usual, 100% replacement with HFCs would not reduce CO 2 eq. emissions GWPs from IPCC AR4 Low GWP Alternatives (e.g., new fluorochemicals, ammonia, hydrocarbons, CO 2, new technologies)

12 Observations in Implementing the HCFC Phaseout 12 Agreement on acceleration is encouraging signal that all countries can work together for environmental benefit Planning and early signals from regulatory bodies is critical to minimize cost of transition Ensures adequate planning horizon for introduction of new equipment Minimizes potential for premature obsolescence of equipment Alternatives to HCFCs are available already being implemented in Article 2 countries All countries must go beyond business-as-usual to achieve both ozone and climate benefits Choose the best alternative that meets all criteria Implement improved refrigerant management practices Ensure continuous improvement in energy efficiency of equipment

13 Considerations in Continued Success 13 Safety must not be compromised a primary advantage of fluorochemical gases Energy efficiency of equipment is critical for climate protection Life-cycle costs of products are important for cost effective transition First cost Operating cost Better refrigerant management practices are necessary Reduce climate impact when using HFCs Safety when using other refrigerants Potential environmental issues other than climate change and ozone depletion, such as air quality, should be evaluated Premature obsolescence of equipment should be avoided

14 Energy Efficiency is Critical to Achieving Climate Benefits CO 2 Emissions from Generating Electricity U.S. Average 610 kg CO 2 /MWh 14 Refrigerant Emissions: Installation/Servicing Leaks Failures End of Life + 1 kg R-22 = 1,820 kg CO 2 1 kg R-134a = 1,430 kg CO 2 1 kg R-410A = 2,088 kg CO 2 1 kg R-404A = 3,922 kg CO 2 About 10% of CO2 emissions are due to energy generated to run vapor compression heating, refrigeration, and air conditioning equipment. Insulating foam products can reduce energy use.

15 Fluorochemicals Applications 15 Clean Agent Fire Suppression Low VOC Propellants Air Conditioning Refrigeration Metered Dose Inhalers Propellants Semiconductor Chip Fabrication Foaming Agents Specialty Fluids

16 16 DuPont Offerings to Facilitate ODS Phaseout Today Refrigerants to retrofit existing HCFC/CFC equipment to avoid premature obsolescence Fluorochemical technologies readily available across the broad spectrum of applications Future Development and deployment of new, more sustainable products

17 Avoiding Premature Obsolescence of Equipment 17 1) Introduce new non-ods equipment sufficiently early to avoid shortages of ODS service refrigerants 2) Where 1. fails, evaluate and implement retrofit options a) A reality in Article 5 Countries for equipment using CFCs b) A reality in Article 2 Countries for equipment using HCFCs and, to a lesser extent, CFCs c) Without proper planning, it could be a reality in Article 5 Countries for equipment using HCFCs

18 18 Retrofit Options -- DuPont ISCEON Refrigerants ISCEON # (ASHRAE #) Composition Replaces Application Safety Classification GWP (IPCC AR4) MO59 (R-417A) 46.6% HFC-125, 50% HFC-134a, 3.4% HC R-22 Stationary Air Conditioning A MO79 (R-422A) 85.1% HFC-125, 11.5% HFC-134a, 3.4% HC R-22, R-502 Medium/Low Temperature Refrigeration A MO29 (R-422D) 65.1% HFC-125, 31.5% HFC-134a, 3.4% HC R-22 Stationary Air Conditioning, Medium/Low Temperature Refrigeration A MO49plus (R-437A*) 19.5% HFC-125, 78.5% HFC-134a, 2% HC R-12 Mobile Air Conditioning, Medium Temperature Refrigeration A TC (R-423A) 52.5% HFC-134a, 47.5% HFC-227ea R-12 Stationary Air Conditioning (centrifugal chillers) A * Pending ASHRAE approval Hydrocarbon reduces viscosity of mineral oil or alkyl benzene lubricant, permitting oil transport through system and return to compressor; no-oil-change-retrofit of CFC & HCFC equipment in most cases

19 Benefits of Retrofitting to HFCs vs. Continuing to Rely on CFCs and HCFCs 19 Refrigerant Compared to Energy Efficiency % Capacity % R-437A* (refrigeration) R-12 or R-134a 0 to 4 2 to 8 R-437A* (mobile A/C) R-12 of R-134a 2 to 5 0 R-422A (low temp.) R R-422A (low temp.) R R-422D (low temp.) R R-422D (medium temp.) * Pending ASHRAE approval R-22 Zero ozone-depletion potential Comparable energy efficiency and cooling capacity Allows current equipment to be used for rest of useful life and new equipment investment is deferred 0-5

20 DuPont Suva Refrigerants for New Equipment 20 ASHRAE # Composition Replaces Application Safety Classification GWP (IPCC AR4) R-134a 100% HFC-134a R-12 Mobile Air Conditioning, Stationary Air Conditioning, Medium Temperature Refrigeration A R-410A 50% HFC-32, 50% HFC-134a R-22 Stationary Air Conditioning A R-407C 23% HFC-32, 52% HFC-134a, 25% HFC-125 R-22 Stationary Air Conditioning, Medium Temperature Refrigeration A R-404A 44% HFC-125, 4% HFC-134a, 52% HFC143a R-22, R-502 Medium/Low Temperature Refrigeration A R % HFC-125, 50% HFC-143a R-22, R-502 Medium/Low Temperature Refrigeration A1 3990

21 Development and Deployment of New, More Sustainable Products 21 Goal Reduce the Contributions to Global Warming of Current Fluorochemical Applications Initial focus Address EU Directive banning R-134a in new car air conditioning systems starting 2011 Joint Development effort by DuPont and Honeywell for Auto Air Conditioning A new molecule, HFO-1234yf, has been identified and is being evaluated results look very promising Longer - term Develop a new line of low-gwp products for current fluorochemical applications across our product portfolio

22 Conclusions/Observations HCFC Phaseout 22 Agreement on acceleration is encouraging signal that all countries can work together for environmental benefit Planning and early signals from regulatory bodies is critical to minimize cost of transition Ensures adequate planning horizon for introduction of new equipment Minimizes potential for premature obsolescence of equipment Alternatives to HCFCs are available already being implemented in Article 2 countries All countries must go beyond business-as-usual to achieve both ozone and climate benefits Choose the best alternative that meets all criteria Implement improved refrigerant management practices Ensure continuous improvement in energy efficiency of equipment

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