#1DAIKIN Daikin Presentation Understanding A2L Refrigerants for Air Conditioners Daikin U.S. Corporation November 12th, 2019#2Agenda Introduction of Daikin Daikin's Global Presence and Expansion Business in the US Daikin's Air Conditioning and Heating Products Daikin's Refrigerant Policy Daikin's Refrigerant Policy: Diversity of Refrigerants Daikin Chooses R-32 in North America Challenges in North America Challenge in the US: Codes & Standards Codes & Standards Adoption Flow Examples of misinformation - Flammability, Standards and Others Countermeasure for misinformation about A2L refrigerants ACHR News - "Understanding A2L Refrigerants for Air Conditioners" Background 1. 2. Drivers of Change 3. Finding the Right Alternative Refrigerants 4. Adoption of A2L Refrigerants 5. Mitigating Risks 6. Research 7. Safety Standards 8. Situational Awareness 9. Conclusion Summary of the Presentation 2#3Introduction of Daikin 3#4Daikin's Global Presence Chemicals 8.0% Others 2.2% Company: Daikin Industries, Ltd. ■Head Office: Osaka, Japan Founded in 1924 ■Chairman of the Board: Noriyuki Inoue President and CEO: Masanori Togawa ■Employees: 70,263 Group Companies: 245 Air Conditioning Fluorochemicals DAIKIN FY2018 Net Sales: $21.3B Air Conditioning 89.8.% Air Filtration and Oil Hydraulics Global No.1 Global No.2 4#5Global Expansion Changes from 2005 to present Business Expansion Production Bases 63 150+ countries 2390+ bases Overseas Business Ratio Sales bases Production bases 46 ⇒ 75% 5#6Production and R&D Bases in the U.S. DAIKIN DAIKIN DAIKIN DAIKIN ALLWORLD AAF Flanders AAF Flanders ALLWORLD AAF Flanders DAIKIN DAIKIN DAIKIN AAF Flanders uiet flex AAF Flanders DAIKIN DAIKIN AAF Flanders AAF Flanders AAF Flanders AAF Flanders AAF Flanders AAF Flanders AAF Flanders Quietflex DAIKIN Goodman Air Conditioning & Heating ALLWORLD MACHINERY SUPPLY DAIKIN Quietflex DAIKIN AAF Flanders ALLWORLD AHT Quietflex AAF Flande DAIKIN 9#7Daikin's Air Conditioning and Heating Products 1447 Residential Commercial Industrial DAMAN 7#8Daikin's Refrigerant Policy#9Daikin's Refrigerant Policy: Diversity of Refrigerants HFC-32 Energy Efficiency Environmental Impact Ease of Handling Global Experiences DAIKIN INDUSTRIES, LTD. Safety Cost Effectiveness Availability The main tenet of Daikin's policy is "diversity of refrigerants." and reducing impacts through a "life cycle approach". To reduce the environmental impact of a refrigerant throughout its lifecycle, we evaluate various aspects comprehensively to select the appropriate refrigerant for each application. Recyclability Daikin's Refrigerant Direction The following summary shows our direction of refrigerant choice for various products in the Daikin product portfolio. R-32 CO₂ Hot water supply system Already Decided Residential AC VRF R-32 Refrigeration equipment Commercial AC R-32 HFOs Blends, R-32 R-32 Residential air to water heat pump Chiller Being Examined HFOS & Blends R-32, R-407H, CO2. Ammonia, Propane.. Note: Other refrigerants not listed above are also applied in products outside of Daikin's portfolio, some examples include hydrocarbons (Isobutane, Propane) for refrigerators and window air conditioners or HFO refrigerants for mobile air conditioners. 6#10Daikin Chooses R-32 in North America In September 2019, Daikin business units in North America announced they will develop ducted and ductless residential, light-commercial, and applied products using R-32. Daikin has found that in comparison to R-410A, R-32 has a drastically lower GWP and could reduce refrigerant charge in certain equipment by up to 40 percent. The company believes that R-32-a pure, single component refrigerant available globally from multiple suppliers-is easier to reuse, reclaim, and recycle when compared to other refrigerants that are blends of R-32 and other components. Daikin Adopts R-32 For Key HVAC Products In North America DAIKIN To Reduce Greenhouse Gas Emissions And Climate Impacts Home / News Headlines / Daikin adopts R32 for key US products Daikin adopts R32 for key US products 26 SEP 2019 To advance the adoption of R-32, Daikin has committed to share its knowledge and expertise. In 2019, Daikin announced its patent non-assertion pledge of identified patents to further facilitate the use of the R-32 in HVAC products. DAIKIN INDUSTRIES, LTD. 10#11Challenges in North America 11#12Codes & Standards Adoption Flow Updated standards and codes are being written, but it is a lengthy and difficult process. ASHRAE Standard 34 Designation and Safety Classification Ready Safety Standards Refrigeration Systems: ASHRAE Standard 15 Equipment: Relevant UL/EN/ISO Standards EPA SNAP Ready Approval Significant New Alternatives Approvals Policy Program submitted 2016 2017 2018 2019 Model Building Codes State and Local Codes UMC IMC/IRC 2020 2021 2022+ UMC, Uniform Mechanical Code IMC/IRC, International Mechanical Code/International Residential Code Efforts to make changes to building codes have faced much opposition and resistance due to a lack of knowledge and misinformation. There is a patchwork of building code adoption IMC Adoption Statewide IMC Adoption by Jurisdiction, All Adopted IMC UMC Adoption Statewide UMC Adoption by Jurisdiction, All Adopted UMC Mixed Adoption (IMC, UMC, IFGC, IBC, UPC, etc.) 12#13Examples of misinformation - Flammability Myths about flammability of A2L refrigerants Group A2L refrigerants burn very easily and can explode when there is a risk. A1 refrigerants are noncombustible or non flammable refrigerants A2L refrigerants give off harmful chemicals when they burn while A1 refrigerants don't A2L refrigerants are dangerous during a wildfire. DAIKIN INDUSTRIES, LTD. 13#14Examples of misinformation - Standards Myths about A2L standards The standard for testing and listing A2L equipment is not complete. The A2L refrigerant requirements were rushed through ASHRAE 15. ASHRAE 15 will allow hundreds of pounds of A2L refrigerant to be located in a residence. DAIKIN INDUSTRIES, LTD. 14#15Examples of misinformation - Others Phase down schedule, Lack of research and training etc. A2L refrigerants are just a phase; newer refrigerants will be A1 refrigerants and the industry just need to wait. California will ban the use of R410A for ALL installations and servicing in 2023. Additional research is necessary on A2L refrigerants before they are used. Contractors are not receiving adequate training regarding the use of A2L refrigerants. A2L refrigerants require special installation tools. DAIKIN INDUSTRIES, LTD. 15#16Countermeasure for misinformation about A2L refrigerants 16#17ACHR News - "Understanding A2L Refrigerants for Air Conditioners" Daikin published a sponsored article on the ACHR News to educate readers (contractors) by addressing their concerns about A2L refrigerants. Air Conditioning | Heating | Refrigeration the NEWS THE HVACR CONTRACTOR'S NEWSMAGAZINE SINCE 1926 AUGUST 12, 2019 | $10.00 | ONLINE AT WWW.ACHRNEWS.COM in A2L Refrigerants for Air Conditioners A brip PUBLICATION Contents 1. Background 2. Drivers of Change 3. Finding the Right Alternative Refrigerants 4. Adoption of A2L Refrigerants 5. Mitigating Risks 6. Research 7. Safety Standards 8. Situational Awareness 9. Conclusion R efrigerants used in air conditioners are changing.... again. The last round of changes took place between the mid-1990s through 2010, as CPC and HCFC refrigerants were phased out and largely replaced by HPCs. This transition was a global effort under an international treaty known as the Montreal Protocol (MP) that addressed the destructive effects these compounds had on the cozone layer. This latest change is also in response to an environmental crisis, but the transition is well under way. As of today, more than 68 million air conditioners globally are already using new refrigerants with a safety group classification of A2L.. BACKGROUND Why change again so soon? Through science and research, stakeholders now recognize the full environmental impact of operating air conditioners, both directly due to refrigerant released to the atmosphere, and indirectly due to the carbon emissions from the generation of electrical power. The previous round of refrigerant changes intended to reduce the impact of refrigerants on the ozone layer. Periodic atmospheric measurements have confirmed the steady decrease of ozone depleting substances after implementing those refrigerant changes. The Montreal Protocol is considered one of the most successful international environmental treaties, and the benefits are being seen today as continued atmospheric monitoring confirm a steady increase in the ozone layer. The current round of changes aims to reduce the greenhouse effect of refrigerants, as those atmospheric measurements have also confirmed the steady increase of greenhouse gases over the last several decades, some of which are synthesized substances with no naturally occurring sources. This article will focus on the class of refrigerants that will replace R-410A, by far the most commonly used refrigerant in new air conditioners and heat pumps installed today. R-410A was the primary replacement for R-22 during the last transition. While not cozone depleting, R-410A has a higher GWP than R-22, so its environmental impact rules it out as a long-term refrigerant solution. Similar concerns apply to other refrigerants currently in use for a wide range of applications involving cooling or refrigeration and using many different types of equipment, which are beyond the scope of this article. Count Cuying Hainicwill beginning poin Coding bill granting authority to growmax Teton in the USA but not bogun the gorgulaya ■FICURE 1: Map of US activ regarding higher-GWP HFC phasedowns. DRIVERS OF CHANGE The MP has been revised nine times since it was agreed upon in 1987, the most recent of which is known as the Kigali Amendment. The Kigali Agreement was created in October 2016, became effective globally on Jan. 1, 2019, and has been ratified by 72 countries as of this June. Initially, the MP would reduce usage of ozone depleting substances by half, but it later placed bans on substances with significant ozone depletion potential (ODP). It resulted in the complete phaseout of various substances and refrigerants (CFCs and HCFCs). The Kigali Amendment added restrictions to the MP on substances with global warming potential (GWP) that trap heat in the upper atmosphere, with reduction targets established based on carbon dioxide equivalent emissions (00,-el. This will result in a phasedown of refrigerants with higher- GWP and a transition to lower-GWP refrigerants, with several reduction steps globally from 2019 to 2047. The end goal is to 17#18ACHR News - 1. Background - Why change again so soon? Lower GWP Alternatives HFC R-32, R-454B HCFC R-410A CFC R-12 R-22 Reduce the Impact on the ozone layer Reduce the greenhouse effect The current round of changes aims to reduce the greenhouse effect of refrigerants, as those atmospheric measurement have also confirmed the steady increase of greenhouse gases over the last several decades, some of which are synthesized substances with no naturally occurring sources. 18#19ACHR News - 2. Drivers of Change - The Kigali Agreement • • • • ● • The Kigali Agreement The most recent revision of the Montreal Protocol Created in October 2016, became effective globally on Jan.1, 2019. It has been ratified by 88 countries as of this October The Kigali Amendment added restrictions to the Montreal Protocol on substances with global warming potential (GWP), which will result in a phasedown of refrigerants with higher GWP and a transition to lower-GWP refrigerants. The goal is to reduce usage of existing refrigerants to just 15% of the baseline by 2037. Position of the U.S. The U.S. has no ratified the Kigali Amendments. No federal policy or regulation exists at this time to reduce higher GWP refrigerants. State Level • Some states are moving ahead in the • absence of nationwide action. California is leading the activity. Proposed is a limit of GWP<750 for refrigerant in new air conditioners effective Jan. 1. 2023. Count Currently in a regulatory rulemaking process as of July 2019 8 Have indicated will begin a regulatory rulemaking process in 2019 15 Considering legislative bills granting authority to state agencies to create HFC phasedown rules States & Territories in the US Climate Alliance but have not begun the legislative or regulatory process ■ FIGURE 1: Map of U.S. state activities regarding higher-GWP HFC phasedowns. 19#20ACHR News - 3. Finding the Right Alternative Refrigerants Tradeoff: GWP vs Flammability GWP New Category : A2L To shift the balance towards being more environmentally friendly, we must accept some degree of flammability. Refrigerant molecules with reduced number of fluorine atoms generally have lower GWP, but these refrigerants have a higher proportion of hydrogen atoms Transitioning to low-GWP refrigerants doesn't mean compromising on safety. The leading lower-GWP candidates fall into the relatively new lower flammability classification of A2L. Safety Group Classification Substance B2L Ammonia R 717 A3 Propane A2 Refrigerant Designation Chemical Formula R 290 A2L 1,1 Difluoroethane Difluoromethane R 152a R 32 C3H8 Burning Velocity (m/s) 0.39 C₂H₂F₂ 0.23 CH2F2 0.067 0.072 46 16 9 19 NH3 Toxicity: A, B Flammability: 1, 2, 2L, 3 Heat Of Combustion (MJ/kg) Combustion Image ■ TABLE 1: Selected refrigerant examples by safety group. B. BROODS 9.15.08 20#21ACHR News - 3. Finding the Right Alternative Refrigerants Increasing Severity of Combustion Event Increasing Severity Of Combustion Event Legend: Flammability Class 19 HOC (MJ/kg) 0 BV (m/s) 0.0 0.1 0.0 LFL Increasing Probability of Ignition Event 0.1 (kg/m³) Flame Propagation No Flame Propagation 3 2 Higher Flammability Flammable 2L Lower Flammability 1 No Flame Propagation 100 51 GWP of R410A is 1920 per AR5/WG1 Table 8.A.1 and 2090 per AR4/WG1 Table 2.14. The Montreal Protocol and related regulations currently use GWP values published in the Fourth Assessment Report (AR4, 2007) by the Intergovernmental Panel on Climate Change (IPCC), however a future amendment will likely change to the Fifth Assessment Report (AR5, 2013) using updated values based on more accurate scientific measurements, although relative uncertainty of GWP remains about ±30% or ±35% for many refrigerants. ■FIGURE 2: Representation of ASHRAE Standard 34 refrigerant flammability classification. Class 2L refrigerants have lower probability of ignition as well as lower severity of ignition events, significantly reducing the flammability risk relative to Class 2 or 3. 21#222500 A1 ACHR News - 3. Finding the Right Alternative Refrigerants GWP 100 (AR4) 500 1000 1500 2000 R-22 R-410A R-452A R-447B R-452B R-32 R-447A R-454B R-446A R-459A R-717 Refrigerant R-152a R-290 A2L B2L A2 A3 ■FIGURE 5: Refrigerant GWP 100 versus flammability classification. To shift the balance towards being more environmentally friendly, we must accept some degree of flammability. R-600a ❤ R-1270 22#23ACHR News - 4. Adoption of A2L Refrigerants Daikin's Sales by Countries Europe •28 EU member countries ⚫Russia Albania •Norway Ukraine Montenegro etc. Japan North&Latin Americas ⚫United States •Canada Mexico Asia & Oceania Thailand Indonesia Vietnam Malaysia . . . Middle East •Saudi Arabia UAE Turkey Oman ⚫Ghana •Burkina Faso Senegal ⚫Philippines ⚫Taiwan ⚫Australia New Zealand Singapore •Sri Lanka ⚫China India More than 68 million air conditioners using A2L refrigerants have been installed around the world. Majority of units have been installed in Asian and European countries such as Japan, China, India, Italy, France, Germany, and Australia. To date, no accidents or incidents have been reported. The US is lagging behind the rest of the world due to its slow progress in making changes to building codes and product safety standards. 23#24- ACHR News – 5. Mitigating Risks 6. Research The overall risk Probability of Occurrence ☑ Severity of the Event Approaches to mitigate risks Avoid the release of refrigerant Restrict the maximum allowable quantity of refrigerant Research on how to safely use A2L refrigerants ● AHRI, ASHRAE and US DOE have collaborated to publish numerous reports Focal area has been refrigerant charge quantity limits. They are based on: . . The available space to which released refrigerant can disperse The elevation from which refrigerant could be released Presence of a fan in the equipment for recirculation air movement Presence of ventilation system to supply and exhaust air in the space 24#25ACHR News - 7. Safety Standards Specific values depend on equipment installed height, room height, and refrigerant LFL Increasing Severity Of Combustion Event Refrigerant Charge Quantity (mass) Not Allowed Air Recirculation + Mechanical Ventilation Air Recirculation No Safety Measure Room Size (floor area) ■ FIGURE 6: A2L refrigerant charge quality limits, ducted single split system. Purpose of Air Recirculation & Mechanical ventilation → Mix and dilute the released refrigerant to keep the average concentration below 25% of the LFL 25#26ACHR News - 8. Situational Awareness There is a need to communicate and educate stakeholders: Service Technicians Installers and service technicians will be trained on the new requirements through several programs to be offered by air conditioners manufacturers and other associations such as NATE and ACCA. Authorities Having Jurisdictions (AHJ) A2L Equipment Installers Fire service Installers must follow the manufacturer's instructions: - Confirmation that the room size is adequate Fire officials need to know when periodic inspection of refrigerant sensors is required. 26#27ACHR News - 9. Conclusion Cooling and heating are an essential part of life, and due to environmental impact, existing A1 refrigerants will transition to A2L refrigerants in ACs and HPs. It is in the best interest of all stakeholders to understand how to safely work with A2L refrigerant as they are adopted into use. While there are some new considerations with A2L refrigerants, the changes are incremental in nature. 27#28Summary of the Presentation Daikin is constantly mindful of the environmental and climate change impact of our products Daikin adopted R-32 for key products in North America In the US, efforts to make changes to building codes have faced opposition due to a lack of knowledge and misinformation To educate stakeholders, Daikin published an article to address their concerns on A2L refrigerants Daikin will continue to promote A2L refrigerants to mitigate global warming 28#29Thank you!! Questions? 29