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Different countries – different trends? The situation of natural refrigerants by

Different countries – different trends? The situation of natural refrigerants by. Carbon Equivalent Refrigerant Levy – the Australian Experience. Stefan S. Jensen B. Sc. Eng. FIEAust, CPEng, NPER, F.AIRAH Managing Director Scantec Refrigeration Technologies Brisbane, Australia.

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Different countries – different trends? The situation of natural refrigerants by

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  1. Different countries – different trends? The situation of natural refrigerants by

  2. Carbon Equivalent Refrigerant Levy – the Australian Experience Stefan S. Jensen B. Sc. Eng. FIEAust, CPEng, NPER, F.AIRAH Managing Director Scantec Refrigeration Technologies Brisbane, Australia

  3. Future HFC costs Source: Department of Sustainability, Environment, Water, Population and Communities R134a levy: 1.3*23 = $29.90/kg Nuremberg, 10 October 2012

  4. Future HFC costs List Price Example: AUD 1.00 ≈ EUR 0.80 Source: 20 June 2012

  5. Clean Energy Future Plan • Clean Energy Future Plan released 10 July 2011 • The objectives of the plan are to cut pollution and drive investment in lower polluting industries • Will apply to all six Kyoto gases: • Carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride • Fixed price period from July 2012 to June 2015 Source: Department of Sustainability, Environment, Water, Population and Communities

  6. Clean Energy Future Plan (cont’d) • Market based system from July 2015 with the exception of synthetic greenhouse gases • Household assistance • Programs to assist industry transition and improved energy efficiency (CTIP, LCA) Source: Department of Sustainability, Environment, Water, Population and Communities

  7. Clean Energy Future Plan (cont’d) • Levy applies to SGG’s listed under the Kyoto Protocol from 1 July 2012 • Levy applied through Ozone Protection and Synthetic Greenhouse Gas legislation • The levy encourages: • increased recycling of synthetic greenhouse gases • improved servicing of existing equipment to reduce leakage • a switch to purpose-designed equipment using lower GWP gases, only where this is appropriate and meets relevant safety standards and legislative requirements • innovation by manufacturers Source: Department of Sustainability, Environment, Water, Population and Communities

  8. Clean Energy Future Plan (cont’d) • Applies to all imports and manufacture of HFCs, PFCs and SF6 • Applies to import of HFCs, PFCs and SF6 in equipment • Exemptions where impracticable or for medical, veterinary or WHS reasons • Inhalers exempted • Imported foam products exempted with review over next 12 months • Provision for refunds for SGG exports Source: Department of Sustainability, Environment, Water, Population and Communities

  9. Clean Energy Future Plan (cont’d) Proposed Destruction Program • Incentives will be provided for destruction of waste SGGs and ozone depleting substances, recovered at end of life • Payment will be made after verification of destruction of the gas • Program will be developed in consultation with industry • Program will start 1 July 2013 Source: Department of Sustainability, Environment, Water, Population and Communities

  10. The “working” bank 40,100 metric tons contained in 37,000,000 devices Source: Peter Brodribb; Refrigerant Levy Panel “Working Bank”. What are the options?”

  11. The “working” bank Source: Peter Brodribb; Refrigerant Levy Panel “Working Bank”. What are the options?”

  12. Initial Industry Reaction • Not enough time for industry to adjust • Lack of information • Safety issues caused by shift to low GWP fluids • Security issues due to more gas theft • Potential for perverse outcomes • Cash flow problems • Increased warranty risks • Skills shortages • Counterfeit hydrocarbon based refrigerants • Panic buying of refrigerants • Recycling of contaminated refrigerants • Increases in incidents of fraud and smuggling • Skills based licensing needs • Need for new standards Source: AIRAH Industry Summit March 2012

  13. Initial Industry Reaction cont’d • Lack of Government understanding of industry issues • Lack of evaluation framework for emissions reductions achieved • Lack of articulation of Government objectives • No clear path for funding assistance • Lack of access to trusted information for industry • Lack of enforcement of current SGG legislation • Slow development of new regulations • Lack of skilled trainers and equipment for NR’s • ETC • ETC • ETC

  14. Initial Industry Reaction cont’d

  15. SO IS IT ALL BAD? NO EXCEPT PERHAPS IF YOU HAPPEN TO BE A MANUFACTURER OF HIGH GWP REFRIGERANTS!

  16. First Step – Stop the Leaks Sources of leaks as identified by survey of technicians and contracting businesses Source: Expert Group, Peter Brodribb and Michael McCann ‘Refrigerant Emissions in Australia, Sources, Causes and Remedies, 2010

  17. Next Step – Transition EXAMPLE 1 ~55 m

  18. Next Step – Transition Two Water Cooled R717 Water Chillers, 1200 kW EXAMPLE 2 BEFORE AFTER Annual Energy Saving 500 MWh Two Air Cooled R22 Water Chillers for Office Air Conditioning, 1200 kW

  19. Next Step – Transition Annual reduction from 40% to <30% Central R717 Water Ethanol Cooling Plant, 6000 kW EXAMPLE 3 BEFORE Four Water Cooled R134A Ethanol Chillers for Process Cooling, 6000 kW AFTER

  20. Can we do it? Yes, we can. QUESTIONS?

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