Building Owners Save Money, Save the Earth Replace Your CFC Air Conditioning Chiller ------- The Montreal Protocol and Industry Leadership By the 1980s, scientists had concluded that chlorofluorocarbons (CFCs) were destroying the fragile ozone layer, and the United Nations Environment Programme had begun diplomatic negotiations. Deciding that international action was needed to protect the ozone layer, which shields the earth from the harmful effects of over- exposure to ultraviolet radiation, negotiators from governments around the world crafted a treaty in 1987 called The Montreal Protocol on Substances that Deplete the Ozone Layer. The Montreal Protocol provid- ed the first global controls on CFCs and halon fire fighting chemicals. In the decade that followed, the Montreal Protocol was made more stringent by amendments and adjustments as mounting scientific evidence and space observations proved that stratos- pheric ozone depletion and the Antarctic ozone hole in particular, were caused by emissions of manufactured chemicals. It was also discovered that ozone depletion was occurring over Europe and North America. Since 1987, more than 180 countries have ratified the Montreal Protocol. Fortunately, industry leadership and innova- tion, combined with prudent environmental regulations, facilitated the development of new refrigerants that perform as well or bet- ter in new equipment than the ozone-deplet- ing chemicals they replaced. Industrialized countries have used a combination of volun- tary, regulatory, and economic measures to encourage the development and use of new technology, to encourage retrofitting to more environmentally acceptable refrigerants, and to encourage improved containment and recovery practices for all refrigerants. Hydrochlorofluorocarbon (HCFC) and hydro- fluorocarbon (HFC) chillers are used for new construction and for retrofit or replacement of equipment with CFC-11 and CFC-12 refrigerants. Now is the time to evaluate and schedule a chiller replacement. Responsible Use Governments, industries, con- sumers, and environmental organ- izations worldwide are endorsing the concept of "Responsible Use" of refrigerants. The Responsible Use principles for building air conditioning are: * Select the refrigerant and air conditioning chiller for each building application that pro- vides the highest health and safety, environmental, techni- cal, economic, and other unique societal benefits. * Minimize emissions to the lowest practical level during manufacture of the refriger- ant and equipment, and dur- ing use and disposal of the equipment, using cost-effec- tive technology. * Design and operate chiller plants to maximize Life- Cycle Climate Performance (LCCP), minimizing the com- bined emissions of refrigerant from the air conditioning chiller and greenhouse gases from the production of power for the chiller. ------- Imagine the satisfaction of earning a high financial return on your investment while increasing building comfort and air quality and protecting the environment... The Building Air Conditioning Climate Protection Partnership— The Key to Total Building Performance Air conditioning cools air in homes, vehicles, and workplaces—keeping occupants comfortable and more productive, also helping communities in hot and humid climates to grow and prosper. Innovative building technolo- gies are now available. Modern lighting uses less than half the energy of older lighting. New window designs let in light but not heat and glare, and building control systems integrate com- fort, safety, and security. New building air conditioning sys- tems cut cooling costs by half or more and eliminate chloro- fluorocarbon (CFG) chemicals, which destroy the ozone layer. Yet the potential of these effi- cient technologies is not always realized in older buildings or even in some new construction! To help achieve that energy efficiency, a new industry-gov- ernment partnership is promot- ing the replacement of CFG building air conditioning chillers. In the United States, the partnership is part of the ENERGY STAR® systems approach. In other countries, industry and government authorities are spearheading programs promoting building energy efficiency. The partnership is also promot- ing integrated chiller retrofits. This approach incorporates other investment into the chiller replacement such as retrofitting lighting systems, window and insulation upgrades, and replacing old office machines. This reduces the cooling load thereby allow- ing the use of smaller, highly efficient air conditioning sys- tems without the use of CFCs. Integration of components and controls using systems analysis, good equipment startup, and continuous monitoring of ener- gy efficiency will help ensure that your building makes a quantum leap in performance and value. Save Money, Save the Earth ------- Keep Cool, Save Money Chiller Efficiencies R-11.R-12 R-22.R-123, andR-134a (CFCs) (Alternatives) Source: Industry data A comfortable work place can affect work habits and productivity in positive ways. Most large commercial, institu- tional, and industrial buildings are cooled by machines called "chillers." The chiller is typical- ly named after the type of com- pressor used—centrifugal, screw, scroll, and reciprocating. Building chiller systems are designed to cool and control humidity to create a comfort- able and more productive envi- ronment for tenants. A new energy-efficient chiller can easily pay for itself in elec- tricity savings, improved relia- bility, and lower maintenance costs in as little as five years. In addition, building energy con- sumption can be significantly reduced at the time of chiller replacement through cooling system improvements (e.g., use of variable speed drives on fans and pumps, improved cooling towers, evaporative coolers, and improved controls) and cooling load reductions (e.g., lighting system retrofits, better insula- tion, and new windows). Reducing cooling load and improving cooling system effi- ciency will enable downsizing of the new chiller, thereby cut- ting capital cost and increasing overall operating efficiency. Comprehensive projects along these lines are known as "inte- grated chiller retrofits." Financing for integrated chiller retrofits is available from a number of sources, including regional or national energy authorities, electric utilities, equipment suppliers, and com- mercial lenders (see pages 8-9). Building owners around the world have saved millions of dollars in electricity bills by upgrading air conditioning chiller installations and through concurrent investments to reduce building cooling load. Today's chillers use about one- third or less electricity com- pared to those produced just two decades ago. Building own- ers can typically pay back the investment cost of replacing an old CFG chiller in five years or less in virtually all locations that cool for more than three months a year. In fact, replace- ment chillers integrated with building retrofits can pay for themselves in as little as two or three years, with a typical return on investment of 20% to 35%. Generally, the added cost of the highest efficiency chillers is paid back through energy sav- ings alone. Today's state-of-the- art building automation systems further reduce operating and maintenance costs by monitor- ing and controlling everyday building operations and by noti- fying managers of small prob- lems before they become costly problems. Save Money, Save the Earth ------- Keep Cool, Save the Earth N; •ew chiller installations save money, improve occupant comfort, and protect the global environment. New energy-efficient chillers are better for the environment because they use far less elec- tricity from the power plants that supply buildings with energy, reducing emissions that contribute to air pollution and global warming. New energy efficient chillers are better for the stratospheric ozone layer because they do not use potent ozone-depleting CFG refriger- ants—made obsolete by global treaties and thus becoming increasingly scarce and expen- sive. Because CFG refrigerants can not be legally produced or imported for sale in developed countries, building owners with obsolete equipment com- pete for dwindling supplies of reclaimed CFCs—paying high prices and risking refrigerant shortage. Most centrifugal chillers manu- factured before 1995 used CFC- 11, CFC-12, or HCFC-22 refrig- erants. Emissions of CFCs and HCFCs damage stratospheric ozone. Countries that have rati- fied the Montreal Protocol will halt production of CFCs and other ozone-depleting sub- stances. In 1996, developed countries stopped producing and importing CFC refrigerants. HCFCs are less damaging to the ozone layer and are considered important "transitional refriger- ants" to allow an accelerated CFC phaseout under the Montreal Protocol. The Protocol authorizes HCFC pro- duction for use in developed countries in new chillers until 2020 and for service until 2030 and HCFC production for use in developing countries in either new equipment or serv- icing until 2040. After produc- tion phaseout, HCFCs can be supplied from reclaimed and recovered sources. Older refrigerants, including hydrocarbons and ammonia, are making a comeback in some applications where safety can be assured. For example, hydrocarbons are increasingly used in small refrigeration and air conditioning appliances, and ammonia is gaining market share in new industrial refriger- ation applications, such as ice- making, cold storage, and dis- trict cooling. The most commonly used new refrigerants for large building air conditioning applications— HFC-134a and HCFC-123—are allowed, approved, or endorsed for use by Environment Australia; Environment Canada; the Japan Ministry of Economy, Trade and Industry; the Japan Ministry of the Environment; the U.S. Environmental Protection Agency; and most other environment ministries worldwide. HFC-134a can Save Money, Save the Earth ------- achieve high energy efficiency and is ozone-safe, but refriger- ant emissions are relatively potent greenhouse gases. HCFC- 123 can achieve high energy efficiency and is not a potent greenhouse gas, but does have an ozone-depleting potential, albeit low. Energy efficiency is the main environmental consid- eration in the selection of a chiller as long as the equipment is carefully maintained and refrigerant emissions are kept near zero. Building owners can make a significant contribution to envi- ronmental protection by replac- ing old chillers. Properly moni- tored and maintained, high-effi- ciency HCFC-123 and HFC- 134a chillers minimize the effect of air conditioning sys- tems on climate change and do not significantly affect the ozone layer. By using less elec- tricity, energy-efficient equip- ment helps protect the environ- ment by reducing nitrous oxides, sulfur dioxide, particu- late matter, carbon dioxide, and mercury emissions from power plants supplying electricity to the buildings. Electric utilities sometimes use their least efficient power plants for the peak periods of electricity demand, which is when chiller loads are usually highest. Therefore, reduced electricity use has an even larg- er benefit for local air quality and climate protection. Save Money, Save the Earth ------- Which Chiller Should I Purchase? Several refrigerants are envi- ronmentally acceptable. However, if you want the highest environmental perform- ance, follow the "Responsible Use" criteria, focusing on the Life-Cycle Climate Performance (LCCP), not the refrigerant. LCCP takes into account the emissions during the manufacturing of the refrigerant, the transportation to the site, during charging of the chiller, lifetime leak- age, and finally during recovery and disposal. And, very important- ly, this calculation must include emissions from the generation of electricity to power the chillers and account for any additional energy that may be necessary to assure safe operation. Insist that financial cal- culations consider both partial and full-load operation, that the per- formance of equipment based on alternate refrigerants is compared, and that available energy efficiency options are considered, including variable speed motor drives, heat recovery, and free-cooling. Select the investment with the best LCCP with emissions minimized. Small-Scale Screw Chillers New screw chiller technologies with high full- and part-load energy efficiency are replacing existing CFC centrifugal chillers primarily in the smaller tonnage ranges. These chillers are ideal for buildings with highly variable daily cooling loads. These screw chillers use a wide range of refrigerants including HCFC-22, HFC-134a, and the HFC blends R-407C and R-4WA. Medium- and Large-Scale Ammonia Chillers Building owners will want to con- sider ammonia chillers using screw compressors where they can safely achieve higher energy efficiency. Emissions of ammonia refrigerants are ozone- and climate-safe, but because ammonia is toxic and moderately flammable, safety pre- cautions are necessary. Ammonia is particularly attractive if higher efficiencies can be achieved for new installations involving ice- making, commercial refrigeration, cold storage warehouses, and in district cooling applications. Large-Scale HCFC-123 and HFC- 134a Centrifugal Chillers For centrifugal chillers, choose either HCFC or HFC chillers with the highest cost-effective energy efficiency, and focus on maintain- ing the equipment's peak perform- ance and minimal refrigerant emissions. Any refrigerant is environmentally safe as long as it is never emitted, and all refriger- ants require careful handling to avoid worker exposure. By retrofitting or replacing chillers, emissions can be substantially reduced or eliminated. The goal of near-zero refrigerant emissions is possible with new equipment, modern refrigerant monitoring technology, and a proper mainte- nance program. Computerized controls and building automation systems can cost-effectively sus- tain and document the perform- ance of the chiller plant. Save Money, Save the Earth ------- Will Ammonia, HCFC, and HFC Refrigerants Be Available For the Life of the Air Conditioning Equipment? The use of ammonia as a refrigerant is not restrict- ed by international treaties, although it may be sub- ject to national or local codes for building safety. Ammonia is among the oldest industrial chemicals, and with continuous improvements in chiller design and maintenance, there is little likelihood of additional environmental controls. HCFCs are controlled by the Montreal Protocol. Developed countries are allowed to pro- duce HCFCs for new equipment until 2020 and for service until 2030. Some developed coun- tries plan to stop HCFC-22 pro- duction for new air condition- ing equipment by 2010 and pro- duction for service by 2020. Adequate quantities of HCFC refrigerants can be supplied for the economic life of equipment Refrigerant Ozone Depletion Potential (ODP) REFRIGERANT CFC-11 CFC-12 HCFC-22 HCFC-123 HFC-134a Montreal Protocol ODP 1.0 (index) 1.0 0.055 0.02 0.0 R-407C (HFC blend) 0.0 R-410A (HFC blend) 0.0 WMO Model 100-Year ODP GWP 0.82 0.90 0.034 0.012 <0.000015 <0.0004 <0. 00003 4600 10,600 1700 120 1300 1700 2000 Source: Montreal Protocol Science Assessment of Ozone Depletion: 1998, 2002 Intergovernmental Panel on Climate Change Third Assessment Report and the Handbook for the International Treaties for the Protection of the Ozone Layer, 2000 edition. Note that the Montreal Protocol ODPs were officially established in 1992 and may be reviewed and revised periodically. The 2002 Scientific Assessment presents the WMO (1999) Model results as above (the ODPs for MFCs are upper limits). by recycling and stockpiling. HCFC-22 is a high-pressure gas with a Montreal Protocol ozone depletion potential (ODP) of 0.055 and a global warming potential (GWP) of 1700. HCFC- 123 is a low-pressure gas with a Montreal Protocol ODP of 0.02 and a GWP of 120. HFC emissions have lower GWPs and less impact on climate change than the CFCs they replace but are included in the basket of greenhouse gases. Some countries, including the United States, will use voluntary measures to encourage energy efficiency and to minimize HFC emissions. Other countries plan to more directly restrict HFC use and emissions. HFC blends, including R-407C and R-410A, are often selected to optimize the energy performance of specific air conditioning systems and par- ticular sizes. HFC blends have zero ODP and a GWP that depends on the exact composi- tion. The most uncertain choice is to continue the use of energy- intensive equipment using CFC refrigerants. One year of refriger- ant and power plant emissions from old CFC equipment with high leak rates results in greater direct harm to the ozone layer and climate than 30 years' oper- ation of new equipment using HFC-134a or HCFC-123. The most energy-efficient new chillers will reduce electric gen- Save Money, Save the Earth ------- Market Incentives for Chiller Replacement eration and associated green- house gas emissions by up to 50% or more compared to the CFG chillers they replace. Leaking CFG equipment fre- quently operates undercharged, requiring additional energy to achieve the same cooling. Now is the time to retrofit or replace. "\ elying on obsolete CFC r^ chillers might end up -1. ^.costing building owners and tenants more than they bargained for. Replacing an old chiller can be an owner's best investment. Here's why: * Building owners and man- agers who use obsolete CFC equipment will have to compete for dwindling supplies of reclaimed refrigerants and parts— paying high prices and risking refrigerant shortage. Rate of Return vs. Risk for New Chillers and Building Energy Upgrades Average Annual Return _L M CO f, o o o o o 5? 5? 5? 5? 5? Chiller Repla Building Ene U.S. T-Bills O cement and rgy Upgrade Long-Term Corporate B-nj-lc 0 UIIIIIIUII Stocks O Small Company Stocks O 0% 10% 20% 30% 40% Risk Index (Year-to-Year Volatility) * Savings from electricity costs alone pay back the investment at high rates of return—even with low energy prices. * A new, efficient chiller installation—with better building controls, high-effi- ciency auxiliary equipment, efficient lights, and other building and office equip- ment upgrades—protects owners from electricity price fluctuations and short- ages. Lower cooling costs increase the resale and rental value of the building. * Companies that use newer and more efficient tech- nologies demonstrate environmental leadership in their communities, enhance company reputa- tion, and have even earned accolades from public and private authorities. Price of CFC-12 fe D) _O Q) a. 0) o $100 $80 $40 $20 $94 $55 $18 $2 1990 1993 1998 2000 Save Money, Save the Earth ------- Tools and Information Equipment suppliers, gov- ernments, utilities, and others are cooperating with building owners and ten- ants to help save money while protecting the environment. Available resources include: * EPA ENERGY STAR® Buildings. www. energystar. go v ENERGY STAR® leads you to a results-oriented energy management approach that produces twice the savings for your bottom line and the environment than the typical strategy. EPA offers tools that rate whole building energy performance. Technical guidance focuses on prop- er equipment sizing, design, and mechanical system integration that match your building's load requirements. ENERGY STAR® offers public recog- nition for buildings that achieve the best results. * UNEP DTIE's OzonAction Programme. www.uneptie.org and www.earthprint.com In partnership with the Air- Conditioning and Refrig- eration Institute (ARI), OzonAction conducted training sessions on refrig- erant management in the chiller sector in three major cities in developing coun- tries—Bangkok, Bahrain, and Jakarta—and offers jointly developed manuals to assist building owners. * BOMA—The Building Owners and Managers Association International www.boma.org Representing more than 8.5 billion square feet of office space in North America alone, BOMA offers research, perform- ance data, publications, and services. .' • Save Money, Save the Earth ------- O B' * ARI—Air-Conditioning and Refrigeration Institute www.ari.org Software from equipment suppliers and others helps designers maximize ener- gy and cost savings. Ask your chiller supplier to recommend cost-cutting upgrades. * Chiller Suppliers Contact suppliers through ARI or at individual web- sites: • API Ketena - www.apiketena.com • Carrier - www. carrier, com • Daikin - www.daikin.com • Dunham-Bush - www. dunham- bush.com • Edwards Engineering - www.edwards-eng.com • Lennox (Europe) - www. lennoxeurop e. com • McQuay - www.mcquay.com • Mitsubishi Heavy Industries - www.mhi.co.jp • RAE Corporation - www.rae-corp.com • Trane - www.trane.com • York-www.york.com * ASHRAE—American Society of Heating, Refrigerating and Air- Conditioning Engineers www.ashrae.org With over 50,000 members worldwide, ASHRAE advances air conditioning and related sciences through research, standards writing, continuing educa- tion, and publications. More Opportunities to Save Money When replacing a CFC chiller, building owners and tenants can take additional steps to save money and help protect the environ- ment. Design engineers can identify more ways to save energy by conducting an overall energy performance review. The entire air condi- tioning system can be improved by using more efficient fans, pumps, cool- ing towers, and system con- trols, and by reducing cool- ing loads with more effi- cient lighting and better insulation. With integrated new systems, owners can downsize equipment, cut- ting both capital and operat- ing costs and increasing the return on their investment. Save Money, Save the Earth ------- Supporting Organizations EPA-430-F-02-026 December 2002 Global Programs Division (6205J) and Climate Protection Partnerships Division (6202J) www.epa.gov/ozone/ www.energystar.gov/ * United Nations and World Bank • United Nations Development Programme • United Nations Environment Programme • The World Bank * National Governments and Regional Authorities • Australian Greenhouse Office • Environment Canada • Industry Canada • Japan Ministry of Economy, Trade and Industry • Japan Ministry of the Environment • Singapore Ministry of the Environment • Thailand, Department of Industrial Works, Ministry of Industry • U.S. Environmental Protection Agency • Vietnam National Office for Climate Change and Ozone Protection *Air Conditioning Equipment Manufacturers • Carrier • Daikin • Lennox (Europe] • McQuay • Mitsubishi Heavy Industries • Toshiba-Carrier • Trane • Turbocor • York * Energy and Supply Companies • Cryo-Line Supplies • Exelon Services • McKenney's Mechanical Contractors and Engineers • Pacific Gas and Electric Company * Industry and Environmental Non-Governmental Organizations • Air-Conditioning and Refrigeration Institute • Alliance for Responsible Atmospheric Policy • Alliance to Save Energy • Americans for an Energy Efficient Economy • Australian Fluorocarbon Council • China Building Research Institute • Ecole des Mines de Paris Center for Energy Studies • Friends of the Earth • Heating/Piping/Air Conditioning Engineering Magazine • Heating, Refrigeration and Air Conditioning Institute of Canada • Industrial Technology Research Institute • International Climate Change Partnership • Japan Industrial Conference for Ozone Layer Protection • Japan Refrigeration and Air Conditioning Industry Association • Natural Resources Defense Council ------- |