906R90101
qo
Mexico's Strategy on Ozone Layer Protection:
A Case Study on the Costs of Implementing I
the Montreal Protocol. ?
cs
o
o
oo
o
o
ON
-------
Mexico's Strategy on Ozone Layer Protection:
A Case Study on the Costs of Implementing
the Montreal Protocol.
\
A
Q
canacfljn
Sponsored by:
Secretaria de Desarrollo Urbano y Ecologia
Camara Nacional de la Industria de
la Transformacion
United States Environmental
Protection Agency
HEADQUARTERS LIBRARY
ENVIRONMENTAL PROTECTION AGENCY
WASHINGTON, D.C. 20460
-------
FOREWORD
The environmental issue, perhaps unlike any other phenomenon, involves
global change. Through it old problems like hunger, sickness and
overcrowding are manifested. However, development has brought forth with
it new challenges: problems associated with CFCs are a very clear example
of this.
Depletion of the ozone layer is, without any doubt, one of the most
dramatic and significant examples of the interdependence that characterizes
environmental matters. It is a global problem which requires integral
political and technical solutions.
It has been proven that CFCs are one of the main agents which deplete the
ozone layer. There is no doubt that increases in ultraviolet radiation
resulting from the depletion of the ozone layer will cause disease,
disruption of agricultural cycles, decreases in food production, and
alterations in ecosystems in general.
Reality has shown that the Montreal Protocol's scientific assumptions and
political goals are valid. Since its conception, the Montreal Protocol has
established the need for a responsible, concerted, and immediate
international action to control, substitute, and even eliminate CFCs and
all ozone-depleting substances.
Mexico considers it imperative that members of the international community
take a firm stance in dealing with the problem. This means making a clear
commitment to comply with the goals of the Protocol and, if possible, to
shorten the deadlines established in the Protocol.
Our country has complied completely with this purpose, as can be
demonstrated in this document which was jointly written with the National
Manufacturing Industry Chamber (CANACINTRA), along with invaluable support
from the United States Environmental Protection Agency.
However, we know that any isolated effort by itself will not be enough
given the magnitude of the problem. The biggest challenge lies in getting
the CFC and Halon producing and consuming countries not only to commit
themselves to eliminating CFC and Halon use, but also to developing new
technologies to replace these substances.
Cooperation and commitment among countries is the only way to protect the
ozone layer.
Patricio Chirinos Calero
Secretary for Urban Development and Ecology
-------
(JAMAIU MAOIONAI, DM I.A IXDHIITIilA !>•
PAHTICULAH DEL
June 11, 1990,
DR. MQSTAFA K. TDLBA
Executive Director
United Nations Environment
Programme
P.O. Box 30552
Nairobi, KENYA
Dear Dr. Tolbaj
"Ore CSmara Naclonal de la Industria de Transformacion,
(CANACINTRA) takes great pleasure in our contribution to the
case study on tfce costs to Mexico of protecting the ozone
layer. TTils study was completed in cooperation
Mexican Secretariat for Urban Development and Ecqlogf
and the U.S. • Environmental Protection Agency (EPA),
Hie Mexico Case Study Team estimates a preliminary cost of
$79.7 million from now until 2010 to be completely reasonable.
The eventual total cost to Mexico of eliminating the use of
chlorofluorocarbuns (CFCs), halons, carbon tetrachloride, and
methyl chloroform will depend on choice and timing of measures
and on the success of cooperation between business and
government worldwide.
CANACINTRA stands ready to cooperate as Mexico proceeds with
their goal of a complete phase-out of chemicals that deplete
the ozone layer\ Mexican industry believes that It is
alternatives that are safe to the
kers and are energy efficient.
Ifioortant to
environment arid
Sincerely Your
LIC. ROBERTO
DELAVARA
LA NUEVA QLTIRA INDUSTRIAL
-------
ACKNOWLEDGEMENTS
SEDOE, CANACZNTRA, and the U.S. EPA acknowledge the outstanding
contribution made by all of the individuals, organizations, and corporations
that made this report possible. The following people provided important data,
technical guidance, and detailed review during various conferences and
meetings :
Zsmael Flores, Quimobasicos
Julian Bustos, Quimobasicos
Fernando Calder6n, Institute Mexicano del Poliuretano
Alejandro Cervantes, Centre Agroindustrial
Armando Luna, Asociaci6n Nacional de Articulos Domesticos
Arturo Ibarra, York-Recold
Geno Nardini, Industrial NAYASA
Carlos Salaxar, Aervalv
Gabriel Rios, DuPont
Jose Coronado, DuPont
William Buenfil, Grupo SABESA
Isaac Eichner, Aerobal
Bryan Baxter, British Aerospace
Richard Nusbaum, Pennsylvania Engineering
Joel Rodger s, Allied-Signal, Inc.
John Thome, Motorola
Douglas Rector, Carrier Corporation
A special note of thanks is sent to them and to their sponsoring
corporations and organizations.
-------
TABLE OP CONTENTS
Page
EXECUTIVE SUMMARY vii
I. INTRODUCTION
A. Purpose and Scope
B. The Role of Chlorofluorocarbons and Halons in
Stratospheric Ozone Depletion 4
C. The Montreal Protocol and Subsequent Developments .... 5
1. The Montreal Protocol 5
2. Subsequent Developments 6
D. The Revised Montreal Protocol and the Mexican Policy on
Stratospheric Ozone Protection 10
II. PRODUCTION AND CONSUMPTION OF CHLOROFLUOROCARBONS AND OTHER
OZONE-DEPLETING COMPOUNDS IN MEXICO 17
A. CFC Production Levels and Status of Current Production
Capacity 17
1. Historic, Current and Planned Production Levels ... 17
2. Capacity and Location of Existing Facilities and
Capacity under Construction 17
3. Age and Flexibility of Existing Production
Facilities 19
B. Trade of Ozone-Depleting Chemicals Covered by the Montreal
Protocol 19
1. Imports and Exports 19
2. Prices, Import Tariffs, and other Regulations Affecting
Prices 20
C. CFC and Halon Consumption by End Use 20
D. Other Ozone-Depleting Substances 23
1. Methyl Chloroform 23
2. Carbon Tetrachloride 25
-i-
Mezico Case Study, First Edition, June 1990
-------
III. TECHNOLOGY AND EQUIPMENT CHARACTERISTICS IN CURRENT END USES . 27
A. Commercial and Residential Refrigeration, Air Conditioning,
and Heat Pumps 27
1. Commercial Refrigeration 27
2. Residential Refrigeration 30
3. Air Conditioning 31
B. Production of Plastic Foam and Foam Insulation Products . 31
1. Types of Foam Products and Recent Production .... 31
2. CFC Consumption in Foams 33
3. Imports and Exports 33
4. Manufacturing Facilities and Current Technology . . 33
C. Aerosols 37
1. Product Types, Annual Production, and Recent Growth 37
2. Import and Exports: Recent Trends 39
3. Percent of Total Units Manufactured with CFCs ... 39
4. Manufacturing Facilities and Current Technology . . 39
D. Solvent Cleaning 42
E. Sterilization 42
F. Halons 43
IV. METHODS OF REDUCING CHLOROFLUOROCARBON USE: RECYCLING,
CHEMICAL ALTERNATIVES, ALTERNATIVE TECHNOLOGIES, AND
PRODUCT SUBSTITUTES 45
A. Recycling and Other Conservation Practices 45
1. Refrigeration 45
2. Foams 49
3. Solvents 51
4. Sterilization 54
B. Chemical Alternatives 54
1. Refrigeration 54
2. Foams 57
3. Aerosols 59
4. Solvents 61
5. Sterilization . 64
C. Alternative Technologies 65
1. Refrigeration 65
2. Foams 66
3. Solvents 67
4. Sterilization 73
-ii-
Mexico Case Study. First Edition, June 1990
-------
D. Product Substitutes 74
1. Foams 74
2. Aerosols 75
V. COST-EFFECTIVE MEASURES FOR REDUCING OZONE-DEPLETING
SUBSTANCES 79
A. CFC Reduction Measures for the Short Term 79
1. Recycle CFC-113 from Cleaning Applications in
Maquiladoras 80
2. Recycle CFC Refrigerants 80
3. Recycle CFC-12 from Cars 81
4. Substitute Hater for CFC-11 in Refrigerators .... 82
5. Reduce CFC-12 Charges in Domestic Refrigeration . . 82
6. Substitute Aqueous Cleaning for CFC-113 and MCF
Solvents 82
7. Substitute Compressed Gases for CFC-12 Aerosols . . 83
B. CFC Reduction Measures for the Medium Term 83
1. Substitute HCFC-22/HCFC-142b for CFC-12
in Polyurethane Foam Packaging 84
2. Substitute CFC-11 in Polyurethane Flexible Foams . . 84
3. Substitute CFC-142b Alone or CFC-22/CFC-142b for
CFC-11 Refrigeration Insulation 85
4. Substitute Increased Hater Blowing for Polyurethane
Foam Insulation for Refrigerators 85
VI. COSTS OF COMPLYING HITH THE MONTREAL PROTOCOL 87
A. Methodology to Compute Incremental Costs 87
1. Economic Framework 87
2. Methodology Used to Evaluate the Adoption of
Controls 88
3. Types of Costs Considered 91
4. Discount Rate 93
B. Cost Results 94
1. Insulation Foam 95
2. Flexible Foam 97
3. Packaging Foam 97
4. Commercial/Industrial Refrigeration 97
5. Household Refrigeration 98
6. Mobile Air Conditioning 98
7. Solvents 99
8. Aerosols 99
9. Sterilization 100
-iii-
Mezico Case Study, First Edition, June 1990
-------
REFERENCES
101
APPENDIX A:
INTERNATIONAL CONFERENCE ON CFC AND HALON ALTERNATIVES
IN MEXICO (MARCH 22-23, 1990): CONFERENCE PROGRAM;
OPENING REMARKS BY MR. PATRICIO CHIRINOS CALERO, MEXICAN
SECRETARY OF URBAN DEVELOPMENT AND ECOLOGY; CLOSING
REMARKS BY MR. JOHN D. NEGROPONTE, U.S. AMBASSADOR TO
MEXICO
103
APPENDIX B. MEXICO OFFERS TECHNICAL EXPERTISE ON ALTERNATIVE
NON-CFC TECHNOLOGIES FOR AEROSOL MANUFACTURING .
APPENDIX C. CALCULATIONS USED TO DERIVE ESTIMATES OF COSTS
PER KILOGRAM
117
123
-iv-
Mexico Case Study, First Edition, June 1990
-------
LIST OF EXHIBITS
Exhibit ES-1 Voluntary Agreements With the Mexican Industry to
Reduce CFC and Halon Use
Exhibit ES-2 Mexico: Distribution of CFC Consumption
Exhibit ES-3 Mexico: Distribution of Halon Consumption
Exhibit ES-4 Costs to Mexico of Phasing Out CFC Consumption
1990-2010
Exhibit 1-1 Mexican Case Study Project Team
Exhibit 1-2 Ozone Depletion Potential (OOP) and Global Warming
Potentials (GWP) of CFCs and Halons
Exhibit 1-3 Helsinki Declaration on the Protection of the Ozone
Layer
Exhibit 1-4 Projected CFC Consumption in Mexico
Exhibit 1-5 Voluntary Agreements with the Mexican Industry to
Reduce CFC and Halon Use
Exhibit II-l Estimates of CFC-11 and CFC-12 Production
Exhibit II-2 Mexico: CFC-11 and CFC-12 Consumption by End Use
Exhibit II-3 Estimated Consumption of Halon-1211 and Halon-1301 .
Exhibit II-4 Consumption of Methyl Chloroform in Mexico End Use .
Exhibit III-l Total 1989 CFC Usage by End Use in Mexico
Exhibit III-2 Mexico: Distribution of CFC Consumption
Exhibit III-3 Production of Polyurethane Foams and CFC
Consumption in Mexico
Exhibit III-4 Estimated CFC-11 and CFC-12 Consumption for
Blowing Agents
Exhibit III-5 Projected Reduction in CFC-12 Consumption Used as a
Foam Blowing Agent
Pace
xi
xii
xiii
xiv
3
Exhibit III-6 Use of CFCs in Foams Manufactured in Mexico . . .
9
11
13
18
21
22
24
28
29
32
34
35
36
-v-
Mexico Case Study, First Edition, June 1990
-------
Exhibit III-7 Distribution of Aerosol Demand by Product Type
Exhibit III-8
Exhibit III-9
Exhibit IV-1
Exhibit VI-1
Exhibit VI-2
Exhibit B-l
Exhibit B-2
in Mexico: 1981 to 1988
The Mexican Aerosol Market: 1981-1987
Historical and Projected Consumption of CFC-11 and
Expected Reduction in Use of CFCs After Adoption of
Costs to Mexico of Phasing Out CFC Consumption . . .
Conventional Technology
38
40
41
46
92
96
119
120
-Vi-
Maxico Case Study, First Edition, June 1990
-------
EXECUTIVE SUMMARY
Mexico La committed to protecting the stratospheric ozone layer. Mexico
helped write the Vienna Convention for the Protection of the Ozone Layer in
1985 and was a key participant in negotiations leading to the Montreal
Protocol. Mexico was the first country to ratify the Montreal Protocol. The
Mexican Secretariat for Urban Development and Ecology (SEDUE) has negotiated
and signed voluntary agreements with industry groups in which users and
producers have pledged to reduce and eliminate their consumption and emissions
of chlorofluorocarbons (CFCs). Exhibit ES-1 presents a summary of each of
these agreements.
Of the five CFCs listed as Group I controlled substances in the Montreal
Protocol, Mexico produces two CFCs domestically: trichlorofluoromethane (CFC-
11) and dichlorodifluoromethane (CFC-12). Trichlorotrifluoroethane (CFC-113)
and dichlorotetrafluoroethane (CFC-114) are imported. Mexico does not produce
or import chloropentafluoroethane (CFC-115), the fifth Group I controlled
substance. Exhibit ES-2 presents the 1989 CFG consumption pattern for Mexico.
Mexico consumed a total of 8,128 metric tons of CFCs in 1989. Mexican
industry forecasts that in the absence of controls, CFC use could grow at an
annual rate of 2.2 percent.
CFC-11 and CFC-12 are produced in three production facilities. No CFC
producing plants are under construction. Present production is 35 percent of
the installed capacity. All three existing facilities have the flexibility of
switching to the production of chlorodifluoromethane (HCFC-22) when CFCs are
-vii-
Maxico Case Study, First Edition, June 1990
-------
phased out. Existing chemical manufacturing plants and equipment will,
therefore, not have to be abandoned.
Mexico does not produce halons. Of the halons listed as Group II
controlled substances in the Montreal Protocol, Halon-1211 and Halon-1302 are
imported into Mexico. Exhibit ES-3 presents the 1989 halon consumption
pattern for Mexico. Mexico consumed a total of 260 metric tons of halons in
1989.
In addition to the Group I and Group II controlled substances, Mexico
consumes two other ozone-depleting substances: methyl chloroform and carbon
tetrachloride. Seventy-five percent of the 8,000 to 10,000 metric tons of
methyl chloroform that is imported is consumed by the "maguiladoras,"
manufacturing firms located in the duty-free zones of Northern Mexico in areas
adjoining the United States. The majority of these firms have their
headquarters in developed countries. Corporate policies of the multinational
parent companies to reduce the use of ozone-depleting substances will help
reduce methyl chloroform use in Mexico. In cases where corporate policy does
not discourage the use of ozone-depleting substances, the demand for methyl
chloroform may grow. Future demand for methyl chloroform would be expected to
grow at 3 to 5 percent annually absent any concerns about the ozone layer.
Mexico consumed an estimated 9,200 metric tons of carbon tetrachloride in
1989; 45 to 50 percent was produced domestically and the balance was imported.
All of the carbon tetrachloride is used as a feedstock in the manufacture of
CFC-11 and CFC-12.
-viii-
Mczico Case Study, First Edition, June 1990
-------
The costs to Mexico of phasing out the production of CFCs1 are
calculated under four scenarios:
Scenario 1: Likely Growth Rate - Likely Cost. CFC use grows at an
annual rate of 2.2 percent in the absence of Protocol restrictions;
the costs of implementing the substitute technologies and using
alternative chemicals is 5 percent higher in Mexico than in the U.S.
Scenario 2: Likely Growth Rate - High Cost. CFC use grows at an
annual rate of 2.2 percent in the absence of Protocol restrictions;
the costs of implementing the substitute technologies and using
alternative chemicals is 30 percent higher in Mexico compared to the
U.S.
Scenario 3s High Growth Rate - Likely Cost. CFC use grows at an
annual rate of 3.3 percent (50 percent higher than the Mexican
industry forecast) in the absence of Protocol restrictions; the
costs of implementing the substitute technologies and using
alternative chemicals is 5 percent higher in Mexico than in the U.S.
Scenario 4: High Growth Rate - High Cost. CFC use grows at an
annual rate of 3.3 percent (50 percent higher than the Mexican
industry forecast) in the absence of Protocol restrictions; the
costs of implementing the substitute technologies and using
alternative chemicals is 30 percent higher in Mexico than in the
U.S.
The costs of implementing CFC-reduction options could be higher in Mexico
than in the United States. Associated costs would include the following:
- transportation costs for imported equipment;
- maintenance and servicing costs for the new technologies;
- incremental infrastructure development costs;
- costs due to exchange rate variations;
- technology transfer costs; and
- costs due to smaller economies of scale.
The estimated costs to Mexico for phasing out the production and import
of CFCs range from $64.4 million to $118.7 million. Exhibit ES-4 presents the
distribution of costs by end use for the period 1990-2010.
1 The full costs associated with halon elimination are not included in this
report.
-ix-
Mexico Case Study, First Edition, June 1990
-------
At least a SO percent reduction in the use of Halon-1211 and Halon-1301
can be achieved at zero net cost by using existing dry and foam chemical
alternatives and by eliminating unnecessary emissions from testing, training,
and accidental discharges.
With strong support from its industry, Mexico continues to play a leading
role in global efforts to protect the stratospheric ozone layer. On March 22
and 23, 1990, in Mexico City, Mexico hosted an "International Conference on
Matching Existing and Emerging Cost-Effective CFC and Halon Alternatives to
the Needs of Mexico," which enabled Mexican industry representatives to
discuss alternative chemicals and substitute technologies with international
experts. Mexico also hosted the United Nations Environment Programme Regional
Conference held in Mexico City, June 1-4, 1990. The conference included
sessions on the science of stratospheric ozone depletion, the future revisions
to the Montreal Protocol, and technological developments on alternatives to
CFCs, halons, and other ozone-depleting substances. Mexico will continue to
play a leadership role in protecting stratospheric ozone and in other efforts
to address issues related to the global environment issues. President Carlos
Salinas de Gortari has declared, "If we don't address the issue of global
ecology, we won't have to worry about other issues."
-x-
Mexico Case Study. First Edition, June 1990
-------
Ul
W
1
2
Q
Z
O
u.
O
Ul
0
Q
Ul
CC
e
•
CC
fc
V 3
0) O
Ul Z
i i
i 9
ft x
Ul Ul
2
Ul
z
e
Ul
^^
Ul
Ul
CC
s
>•
s
1
J
o
co 2
| 0 |
co 1 1 4i»
S O w
o >g co
5 ° £
'5 Cm
Measures
: Orqanization
0
2
"to
Z
CO
"C
O
03
0
CO
*••
CD
CD
2
O
^
CD
CO
D
c
UJ
Phase out CFC use by 1990 in fie:
Update information on developme
substitutes for adoption in rigid foi
Facilitate technology transfer
• • •
.g
w '5
8 8 8
3 3 CO
•a ~o <
22^.
o o 1
u. u_ "D
O O JE
CD
3
•S
CO
_c
CD
CO
2
0) 3
8 f
co O.
<0 _
•<-> J3 C
O C .2
Q. .E x
3 3 CD
Q 0 2
CD
C
CO
^^
2 CO
"o o
Q. U-
>. T3
O <])
0 0 «
g w 2 o
^~ Tit CO ^ w
• XN O CD
.£ "c 8" " "
NO tD _ CD CD
Cut non-essential CFC use by 503
Phase out remaining 50% non-ess
1990
Medicinal, electronic cleaners, anc
products used in aircraft cabins ar
essential
Recommend labeling of ozone-saf
• • • •
CO
«> c c
•D -2 -2
£ co co
«- «- *. — 'o 'o
80 o 2> o o
o _ .E co co
3 3 C ^ c/> CO
"O "D O .2 <
-------
Exhibit ES-2
Mexico: Distribution of CFC Consumption
(Based on Actual Tons Consumed in 1989)
CFC-12 5,578 tons
(68.6%)
CFC-113 400 tons (4.9%)
CFC-114 44 tons
(0.5%)
CFC-11 2,106 tons (25.9%)
By Type of CFC
Refrigeration 4,796 tons
(59.0%)
Foams 1,629 tons
(20.0%)
Solvent Cleaning 400 tons
(4.9%)
Sterilization 310 tons
(3.8%)
Aerosols 993 tons
(12.2%)
By End Use
Total: 8,128 Tons Consumed in 1989
-xii-
Mezico Cas* Study, First Edition, Jun* 1990
-------
Exhibit ES-3
Mexico: Distribution of Halon Consumption
(Based on Actual Tons Consumed In 1989)
Halon-1301 60 tons (23.1%)
Halon-1211 200 tons (76.9%)
Total: 260 Tons Consumed in 1989
-xiii-
Merico Cas« Study. First Edition, June 1990
-------
*! 4.
o 1 «
g J3 JO
W HJ IU
n 5 •**
* *
050
• ik
1*1
1
CM B 4>
o 5 o
• -^-S
o it m
to 3
rtl 8
O .7 rj
5 °
3J*S
SJ.3
2 3 1
M j J
Control
•
IB
i
•o
I
5
m >a r-
iH CM O
o co -r
0 CM •»
o* •» in
CO OK Cft
CO •* •»
»O CO CO
iH t-l CM
iH CO Ol
n CM o
•H
CO
rH
1
-» 1
r-l f-4 «H
1 U 1
§
41
H
a
Ml
•H
%
06
fl
•H
O
H
a
1 £
1 §
43 4
n <-4
€ S
« B
f-t
i
U
« o
<0 O
n o
CO 0
\
-T O
n o
IV O
S g
« 0
CO
•H •
1 •
U •*
u 5
I «
1 H
a
a
>-i -(
JQ O
~ a
a S
r-i a
fa <
SS
in -»
O CO
CO CM
*"
CO 0>
m i»
CM CM
* m
0 CM
CM CM
•I
n «-^
i-l 0
» s
a3
-H
1
41
•o
§
u
u
•H
<
•-4
-H
A
£
N
iH
I
0
o o
o o
o o
o o
0 O
o o
o o
o o
o o
O 0
o o
0 O
CM
1
b
n
H
o
u
C 9
9 O
HI
H p£
a
u
o
a
H
Ml
H
CM
•e co C*
»o 1-4 m
•H t-4
•* O\ CO
CM m r»
CO 0> •»
•H
CO
N
t-t
B U
S« |
B •-<
M «-4 tH
• U 1
g & a
££ 3
§
_p
0
eo
•*4
^
P!
^
0
O
14
S B
i a
o o
I o
41 «
n -l
•§ 3
5 5
<-l O OH CM O
O 0 CM CO 0
in o -f o o
-» O -0 CO 0
o o -i r» o
« o co o o
CO O CM O O
«H O <4T CO O
•T O CO O O
CO O o
o o
•* CO
en o
0 0
S3
0 O
CM-S
«H t-l
1 O
§
41
a
Ml
£j
a
06
r-l
•9
-H
O
M
a
§
a
•H
41
U
3
M
•*
,-t
1
°
OK
CD
•H
•H
CO
CO
m
cr>
tH
O>
CO
CO
-------
I. INTRODUCTION
A. Purpose and Scope
Mexico is committed to protecting the stratospheric ozone layer.
Mexico helped write the Vienna Convention for the Protection of the Ozone
Layer in 1985 and was a key participant in negotiations leading to the
Montreal Protocol. Mr. Patricio Chirinos Calero, Mexican Secretary of Urban
Development and Ecology, stated in his opening remarks at an international
conference on chlorofluorocarbon and halon alternatives held in Mexico1 that
the protection of the ozone layer was fundamental to Mexican environmental
policy. He praised the Montreal Protocol as representing a model of
international cooperation between countries and recommended a similar approach
for addressing other important environmental problems, such as the greenhouse
effect, deforestation, and ocean pollution.
In 1985, the Mexican Secretariat for Urban Development and Ecology
(SEDUE) met with DuPont and Quimobasicos, the two CFC manufacturers in Mexico.
During these meetings, the CFC producers agreed to collaborate with SEDUE in
controlling the production and emissions of ozone-depleting substances.
Mexico's Undersecretary of Ecology, Mr. Sergio Reyes Lujan, reported on the
successful conclusion of these agreements with chemical producers at the
Montreal Protocol negotiations. Mexico was the first country to ratify the
Montreal Protocol.
SEDUE, the Foreign Affairs Secretariat, Camara Nacional de la Industria
de la Transformacidn (CANACINTRA) — the Mexican Chamber of Industries, and
the United States Environmental Protection Agency (U.S. EPA) jointly undertook
a national case study whose purpose was threefold:
1 International Conference on Matching Existing and Emerging CFC and
Halon Alternatives to the Needs of Mexico, March 22-23, 1990, Mexico City.
See transcription of Secretary Calero's opening remarks in Appendix A.
-1-
Mexico Case Study, First Edition, June 1990
-------
(1) to estimate current and future national demand for CFCs,
halons and other ozone-depleting substances;
(2) to analyze specific uses of these substances; and
(3) to evaluate control options and costs of reducing the use of
ozone-depleting substances.
•
Exhibit 1-1 identifies the case study project team.
This report, which represents the results of this case study, describes
the technical and financial needs of Mexico as Mexico takes action in phasing
out CFCs and halons. At least seven other case studies are being undertaken.
The U.S. EPA is also collaborating with Brazil and Egypt. The United Kingdom
is cooperating with India; Canada, with Malaysia; Finland, with China (through
the United Nations Development Programme); and Sweden, with Kenya; Venezuela
is conducting its own case study.
This report is divided into six sections:
Section I. the Introduction, describes the role of CFCs and halons in
stratospheric ozone depletion, presents some background on the Montreal
Protocol and subsequent developments, and describes Mexico's policy
regarding protection of the stratospheric ozone;
Section II describes the production and consumption of CFCs and other
ozone-depleting substances in Mexico;
Section III characterizes current end-use consumption of CFCs and halons
and estimates future CFC and halon demand in Mexico;
Section IV describes the practices, technologies, and substitute
chemicals and products that can be used to reduce CFC and halon
consumption in each end-use area;
Section V describes the measures that Mexico can take in the near term
and in the medium term, to reduce consumption of ozone-depleting
substances and estimates the associated costs; and
Section VI presents the costs to Mexico of reducing production and
consumption of ozone-depleting substances.
-2-
Mezico Case Study, First Edition, June 1990
-------
Exhibit 1-1. Mexican Case Study Project Team
Leadership and Data Management:
• SEDUE (The Mexican Secretariat for Urban Development and Ecology)
Mr. Sergio Reyes Lujan, Undersecretary for Ecology
Mr. Ren6 Altamirano P6rez, Director of the Office for Pollution
Prevention and Control
— Ms. Leticia Villar Cuevas, Senior Analyst, Office for Pollution
Prevention and Control
Ms. Cintia Hosier Garcia, Subdirector, Office of Air Quality
Project Coordinations
• Ministry of Foreign Affairs
— Ms. Diana Ponce Nava, Coordinator of International Law
Data Collection and Industry Cooperation:
• CANACIMTRA (The Mexican Chamber of Industries)
— Mr. Jorge Corona de la Vega, CANACINTRA Industry Liaison
— Mr. Ismael Flores Paredes, Quimobasicos
— Mr. Julian Bustos, Quimobasicos
Mr. Gabriel Rios, DuPont
— Mr. Jose A. Coronado, DuPont
— Mr. Ismael Gonzalez Iturraran, CANACINTRA
Mr. Victor Manuel Terrones L6pez, CANACINTRA
Mr. Fernando Calderdn, Institute Mexicano del Poliuretano
Mr. Francisco Gonzalez M., Cydsa
— Mr. Alejandro Cervantes del Rio, Centre Agroindustrial
Mr. Armando Luna del Casillo, Asociacidn Nacional de Fabricantes
de Articulos Domesticcos
— Mr. Isaac Eichner, Aerobal
Mr. Geno Nardini, Industrial Nayasa
Mr. Arturo Ibarra, York-Recold
Mr. Jorge A. Moguel, Elizondo-Carrier
Mr. Carlos Salazar, Aervalv
Mr. William Buenfil, Grupo SABESA
Technical Advisors:
Dr. Stephen O. Andersen, U.S. Environmental Protection Agency
Ms. Elizabeth Creel, U.S. Environmental Protection Agency
— Mr. Sudhakar Kesavan, ICF Incorporated
— Ms. Laura Tlaiye, ICF Incorporated
Mr. Farzan Riza, ICF Incorporated
Project Logistics:
Ms. Alyce Tidball, Science Officer, U.S. Embassy - Mexico City
Mr. Byron Sigel, U.S. Embassy - Mexico City
Mazico Ca»« Study, First Edition, June 1990
-------
B. The Role of Chlorofluorocarbons and Halons in Stratospheric Ozone
Depletion
Stratospheric ozone shields the earth from harmful ultraviolet (UV)
radiation. Increasing concentrations of man-made chemicals include
Chlorofluorocarbons (CFCs), halons, methyl chloroform, carbon tetrachloride,
and HCFCs destroy stratospheric ozone. A significant reduction in
stratospheric ozone could result in long-term increases in skin cancer and
cataracts, suppress the human immune system, damage crops, aquatic organisms
and natural ecosystems, and contribute to global warming. Increased
ultraviolet radiation also contributes to increased ground-level ozone (smog).
CFCs, and particularly halons, are potent ozone depletors. CFCs consist
of chlorine, fluorine, and carbon. They were first developed in the 1930s as
efficient, safe refrigerants for home use. The physical properties of CFCs
made them ideal for a wide variety of applications—they are nonflammable,
efficient, inexpensive and low in toxicity. These properties helped increase
demand for CFCs and led to their use as foam-blowing agents, cleaners for
electrical and metallic parts, aerosol propellants, and in other applications.
Halons, containing bromine, are used as fire-extinguishing agents. They are
preferred in many applications due to their excellent flame-extinguishing
properties, low toxicity, lack of electrical conductivity, and lack of
corrosivity and residue.
Because CFCs and halons are chemically inert, they are virtually
unreactive in the lower atmosphere. As a result, CFCs and halons slowly
migrate to the upper atmosphere where higher energy radiation strikes them,
releasing chlorine and bromine atoms. Once released, the chlorine and bromine
acts as a catalyst, repeatedly combining with and breaking apart stratospheric
-4-
Mexico Case Study, First Edition, June 1990
-------
ozone molecules. A single chlorine atom can destroy over 100,000 ozone
molecules.
C. The Montreal Protocol and Subsequent Developments
In September 1987, 24 nations, including Mexico, the United States,
Japan, the Soviet Union, and members of the European Economic Community
negotiated and signed the Montreal Protocol on Substances that Deplete the
Ozone Layer. Today, 62 nations representing over 90 percent of the world's
production of CFCs and halons have ratified the Protocol. The Montreal
Protocol entered into force on January 1, 1989.
1. The Montreal Protocol
The chemicals controlled by the Montreal Protocol have been
subdivided into two groups.
"Group I" - Fully-Halogenated Chlorofluorocarbons:
CFC-11 Trichlorofluoromethane
CFC-12 Dichlorodifluoromethane
CFC-113 Trichlorotrifluoroethane
CFC-114 Dichlorotetrafluoroethane
CFC-115 Chloropentafluoroethane
"Group II" - Halons:
Halon-1211 Bromochlorodifluoromethane
Halon-1301 Bromotrifluoromethane
Halon-2402 Dibromotetrafluoroethane
The Protocol control provisions became effective July 1, 1989, with a
freeze on Group I CFCs at 1986 consumption levels. Reductions of 20 percent
from 1986 production levels are required by July 1, 1993, and reductions of 50
percent from 1986 consumption levels are required by July 1, 1998. Group II
halons will be frozen at 1986 consumption levels in 1992. The Protocol allows
developing countries a 10-year grace period.
-5-
Mexico Case Study, First Edition, June 1990
-------
Exhibit 1-2 presents the Ozone Depletion Potential (OOP) and the Global
Warming Potential (GWP) for the regulated CFCs, halons, and other ozone-
depleting substances.
The Montreal Protocol contains a number of provisions to encourage the
participation of developing counties. It requires Parties to the Protocol to
transfer environmentally safe alternative substances and technologies
bilaterally and multilaterally to developing countries. Furthermore, it calls
for all signatories to undertake to facilitate bilaterally or multilaterally
the provision of subsidies, aid, credits, guarantees, or insurance programmes
to assist developing countries who are signatories to the Protocol in their
efforts to use alternative technology and effect product substitution.
2. Subsequent Developments
The Montreal Protocol provides a mechanism to review the adequacy
of stratospheric ozone protection measures and adjust them based on new
scientific, technical, economic, and environmental information.
Increasing evidence indicates that ozone depletion is more severe than
originally estimated during negotiations in 1987. Since 1987, scientists have
concluded that Antarctica's springtime ozone depletion of approximately 50
percent is caused by CFCs and other ozone-depleting substances. The Ozone
Trends Panel of atmospheric scientists examined both global ozone changes and
evidence concerning the cause of the Antarctic ozone hole. The Panel reported
that total column ozone in northern hemisphere mid-latitudes had decreased by
1.7 to 3.0 percent between 1969 and 1986 (NASA 1988). Based on their analysis
of ground-based and satellite data, the panel concluded that the actual
depletion of total column ozone was two to three times greater than the
original projections of depletion developed using atmospheric models. The
panel also concluded that the weight of evidence supported the theory that
-6-
Mexico Case Study, First Edition, June 1990
-------
Exhibit 1-2. Ozone Depletion Potential (OOP) and
Global Warming Potentials (OWP) of CFCs and Halons
Substance
OOP Relative
to CFC-11
GWP Relative
to CFC-11*
(Mass Basis)
Controlled by the Current Montreal Protocols
Group I Substances:
CFC-11 Trichlorofluoromethane 1.00
CFC-12 Dichlorodifluoromethane 1.00
CFC-113 l,l,2-Trichloro-l,2,2-trifluoroethane 0.82
CFC-114 1,2-Dichlorotetrafluoroethane 0.76
CFC-115 Chloropentafluoroethane 0.43
1.00
2.67
1.09
2.89
9.69
Group II Substances:
Halon-1211 Bromochlorodifluoromethane
Halon-1301 Bromotrifluoromethane
Halon-2402 Dibromotetrafluoroethane
3.0
10.0
6.0
2.12
Other Substances of Concern not Controlled
by the Current Protocol:
CC14
MCF
Carbon Tetrachloride (tetrachloromethane) 1.11
Methyl Chloroform (1,1,1-Trichloroethane) 0.11
0.39
0.02
Source: UNEP Technology 1989.
Factors governing the relative efficiency of these compounds to destroy ozone include: (1) rate of
release of the compound into the atmosphere; (2) rate of removal of the compound in the troposphere and its
persistence in the stratosphere; and (3) efficiency of the compound in destroying ozone in the stratosphere.
Ozone depletion potential (OOP) is defined (Fisher et al.) as the model-calculated ozone depletions under
steady state conditions. More specifically, it is defined as the ratio of calculated ozone column change
for each mass unit of a gas emitted into the atmosphere relative to the calculated depletion for the
reference gas CFC-11. OOP provides a useful yardstick for estimating the relative destruction potential of
various chemicals.
The ability of a compound to absorb infrared radiation characterizes global wanning potential. Global
warming potential (GWP) is defined as the ratio of calculated warming for each unit mass of a gas emitted
into the atmosphere relative to the calculated warming for a mass unit of reference gas CFC-11.
Both OOP and GWP estimate the relative adverse environmental impacts of alternative substitute chemicals on
two global environmental problems. Both need to be taken into account when judging the environmental
acceptability of chemicals.
-7-
Mezlco Case Study, First Edition, June 1990
-------
formation of the Antarctic ozone hole during the springtime was the result of
man-made chlorine- and bromine-containing compounds being released into the
atmosphere. Furthermore, new evidence indicates that ozone loss is not
confined to the South Pole. Recent measurements show downward trends in total
column ozone of up to 6 percent from 1970 to 1986 over the Northern Hemisphere
during winter (NASA 1988).
In the spring of 1988, EPA's study of future chlorine and bromine levels
in the atmosphere (EPA 1988) estimated that a complete phase-out in emissions
of CFCs and halons, with additional stringent controls on the chlorine-
containing compounds methyl chloroform and carbon tetrachloride, would be
necessary to stabilize the levels of chlorine and bromine in the stratosphere.
As a result of this new evidence, international discussions began on a
complete phase-out of CFCs and non-essential halons and the restrictions on
other chlorinated compounds. In April 1989, 70 nations met in Helsinki at the
First Meeting of the Parties to the Montreal Protocol and agreed to a non-
binding resolution known as the Helsinki Declaration on the Protection of the
Ozone Layer (Exhibit 1-3).
Since the Helsinki declaration, a working group under the Montreal
Protocol has proposed amendments to the Protocol for adoption during the next
meeting of the Parties to the Protocol in June 1990 in London. It is likely
that the Protocol will be amended to require a complete phase-out of CFCs and
the non-essential uses of halon by the year 2000, allowing the ten year grace
period for developing countries. It is also likely that methyl chloroform and
carbon tetrachloride will be added to the list of controlled ozone-depleting
substances.
-8-
Mexico Case Study, First Edition, June 1990
-------
Exhibit 1-3. Helsinki Declaration on the Protection of the Ozone Layer
The Governments and the European Communities represented at the
First Meetings of the Parties to the Vienna Convention and the
Montreal Protocol
Aware of the wide agreement among scientists that depletion of the ozone
layer will threaten present and future generations unless more stringent
control measures are adopted
Mindful that some ozone-depleting substances are powerful greenhouse
gases leading to global warming
Aware also of the extensive and rapid technological development of
environmentally acceptable substitutes for the substances that deplete the
ozone layer and the urgent need to facilitate the transfer of technologies of
such substitutes especially to developing countries
ENCOURAGE all states that have not done so to join the Vienna Convention
for the Protection of the Ozone Layer and its Montreal Protocol
AGREE to phase out the production and consumption of CFCs controlled by
the Montreal Protocol as soon as possible but not later than the year 2000 and
for that purpose to tighten the timetable agreed upon in the Montreal Protocol
taking into account the special situation of developing countries
AGREE to both phase out halons and control and reduce other ozone-
depleting substances which contribute significantly to ozone depletion as soon
as feasible
AGREE to commit themselves, in proportion to their means and resources,
to accelerate the development of environmentally acceptable substituting
chemicals, products and technologies
AGREE to facilitate the access of developing countries to relevant
scientific information, research results and training and to seek to develop
appropriate funding mechanisms to facilitate the transfer of technology and
replacement of equipment at minimum cost to developing countries.
-9-
Mexico Case Study, First Edition, June 1990
-------
D. The Revised Montreal Protocol and the Mexican Policy on
Stratospheric Ozone Protection
Exhibit 1-4 shows the historical and projected consumption of CFC-11,
CFC-12, CFC-113, and CFC-114 in Mexico,2 assuming no controls were imposed
(upper line), and a reduction schedule (stepped line) that is indicative of
the likely schedule for the revised Montreal Protocol3. Based on 1988
historical data, the average annual rate of growth in CFC consumption was
approximately 6.3 percent from 1984 to 1988. Mexican industry sources
projected that consumption from 1989 to 1993 will grow at an average annual
rate of approximately 2.2 percent. To project post-1993 consumption, Exhibit
1-4 also assumes an annual rate of 2.2 percent.
This analysis assumes that Mexico complies with the revised Montreal
Protocol by:
(a) freezing 1999 CFC consumption* at 1996 consumption levels;
(b) reducing CFC consumption by 20 percent by the year 2003;
(c) reducing CFC consumption by an additional 30 percent by the year
2008; and
(d) phasing out CFC consumption by the year 2010.
In addition, the revised Montreal Protocol is likely to include a phase-
out of carbon tetrachloride (for non-feedstock uses) and non-essential halons,
as well as controls on methyl chloroform consumption.
2 Mexico does not produce or import CFC-115.
3 The revised Protocol may utilize stepped reductions or other phase-out
schedules. This is an example based on the current Protocol design.
* The Montreal Protocol restricts production and consumption of these
substances. See Montreal Protocol at paragraphs 1 and 2 of Article 2: Control
Measures. Consumption is defined as production plus imports minus exports of
controlled substances.
-10-
Mexico Case Study, First Edition, June 1990
-------
S
3
O
2
o
o
o
I
gll
8 £ S
t8
c£O
Hi
1.8"*
o
ps^
LL. o *•
111
CO Q. CO
£«|5
2?
O
O co S
|
suoi
-11-
M«xico CM* Study, First Edition, June 1990
-------
Mexico consumes less than 0.3 kilograms of CFCs per capita and thus
should qualify as a low-use developing country under the Protocol definitions
(Article 5). Under these provisions, as shown in Exhibit 1-4, Mexico could
increase CFC use for as long as 10 years before beginning reductions in use.
Instead, the Mexican Government implemented measures to achieve significant
near-term reductions in the consumption of ozone-depleting substances. SEDUE
negotiated and signed nine agreements with industry to control the consumption
and emissions of CFCs and halons. The CFC producers, halon distributors, and
representatives of industries that use CFCs in Mexico voluntarily agreed to
the reduction measures. Exhibit 1-5 summarizes these nine agreements, which
are discussed below in greater detail.
The two CFC producers in Mexico (DuPont and Quimobasicos) each signed an
agreement with SEDUE in which they committed themselves to eliminate all
distribution of CFCs for flexible polyurethane foam manufacturing by 1990.
Flexible foam manufacturers also signed an agreement to undertake this
reduction in CFC consumption. In addition, these industry groups have
indicated their commitment to provide users with the latest information
regarding the development of CFC substitutes for rigid polyurethane foams to
speed adoption of these substitutes. The signatories to these agreements also
promised to facilitate technology transfer to other firms in this industry.
Only 10 percent of all aerosol cans manufactured in Mexico in 1988
contained CFCs. Based on 1988 CFC consumption in aerosols, the suppliers of
CFCs and the aerosol manufacturers (represented by CANACINTRA, the Mexican
Aerosol Institute, and the Chamber of the Perfume and Cosmetics Industry)
agreed with SEDUE to reduce CFC use by 50 percent in 1989 and to eliminate the
remaining 50 percent by 1990. Mexico exempts from the reduction requirement
the CFCs used in medicinal, electronic, and aircraft maintenance aerosols
-12-
Mezico Case Study, First Edition, June 1990
-------
UJ
w
1
o
z
o
u.
o
UJ
o
o
UJ
oc
e
jw
£
EXHIBIT 1-5
THE MEXICAN INDU
X
i
fifi
y*
UJ
s
UJ
Ul
oc
(3
<
£
OC
<
1-
3
_l
O
co «2
| 0 «.
o -5 w
.Q ^ C
Measures
Phase out CFC use by 1990 in flexil
Update information on development
substitutes for adoption in rigid foar
Facilitate technology transfer
• • •
ature of Organization
2
CFC Producer
CFC Producer
Industry Association
®
CO
"C
o
75
o
35
c
CD
CD
8>
o
<
CD
CO
D
c
UJ
^J
.ts
1
O
CO
2
CO 3
8 t
48 ^
| 1 |
3 Z3 CD
005
CD
C
co
£
2 CO
|E
o o
Q. LL.
JO 0)
CD CD SH
- 1 2§ ?
c '-5 Q- o co
-— c «» ™
Cut non-essential CFC use by 50%
Phase out remaining 50% non-esse
1990
Medicinal, electronic cleaners, and i
products used in aircraft cabins are
essential
Recommend labeling of ozone-safe
• • • •
CO
.CD
•J5
<» C C
% .0 .0
c 'co 1o
w i_ H- m "O "O
§CD O ? O O
O _ .£ CO CO
3 3 C s- CO CO
o E ii 1 1
*- fr .— co c" c"
0 0 §1 1 1
LL LL S CO T3 T3
O O < 2 £ £
CO
™
*jf
^ CD "D
tp *5 *••
^~ «• ^~
^ :^
*5 7S ®
c c ^^
"™* D *-
•o o •£ S
co E « £-0
o *° "^- —
4§ " **• 5 .0
C "o ? i JD 0
o § o .2 E E
GL £ £ x co co
D D co CD x: o
a a z s oo
€A
ml^l +1
o o
O "D
CD 2
< Q-
c
£
M
Provide users with information on h
conservation measures
Keep users informed of progress in
development of alternatives
| B
O O O
33 =
.Q .Q .Q
Halon Importer/Distr
Halon Importer/Distr
Halon Importer/Distr
I 8
D < TT
Q o y.
CO
c
"co
X
D)
'•g
Promote reduced use of ozone-dep
substances
H
O) CD
•e c -o
Association of Expoi
Industries Neighbor!
the U.S./Mexico Bon
•o
£ "
O g)
CD •=
c To
— 3
°I
If
"1
•3 CO
CO =
§§•
~ CO
CO ^
2 &
CO
3
O
CD
C
co
8
_co
^
-13-
Mazico Cam* Study, First Edition, Jun* 1990
-------
because no substitutes are currently available. The signatories to this
agreement will also recommend labelling of ozone-safe aerosols.
SEDUE also signed agreements with Mexico's three major halon importers
(CAISA5, ICI, and DuPont). These halon distributors have agreed to provide
users with information on conservation measures and recycling technologies,
and have committed themselves to providing users with updates on the
development of alternative fire-extinguishing agents.
The Mexican Chamber of In-Bond Industries, representing a group of
export-oriented industries neighboring the Mexico/U.S. border (maquiladoras),
has also signed an agreement with SEDUE that covers a broad range of
environmental initiatives. The Board has committed itself to promoting the
control of contaminant emissions to meet official standards. Specifically,
the National Board of In-Bond Industries will seek a reduction in the use of
ozone-depleting substances to the maximum extent feasible.
With the strong support of its industry, Mexico continues to make
progress in protecting the stratospheric ozone layer. On March 22 and 23,
1990, SEDUE, CANACINTRA, and the U.S. EPA co-sponsored an international
conference on CFC and halon alternatives (see Appendix A for the Conference
Program). The conference was attended by more than 120 people and included
the Mexican Secretary for Urban Development and Ecology, Mr. Patricio Chirinos
Calero; the Undersecretary of Ecology, Mr. Sergio Reyes Lujan; the Director of
SEDUE's Office of Pollution Prevention and Control, Mr. Rene Altamirano P€rez;
the President of CANACINTRA (the Mexican Chamber of Industries), Mr. Roberto
Sanchez de la Vara; Mexican and international technical experts on CFC and
halon alternatives; and representatives of academic institutions. The
5 Centro Agroindustrial, Sociedad Andnima (CAISA)
-14-
Mexico Case Study, First Edition, June 1990
-------
Honorable John D. Negroponte, U.S. Ambassador to Mexico, closed the ceremony
by praising Mexico for its leadership and offered his continued support to the
Mexico-U.S. partnership for environmental protection (see Appendix A for a
transcript of Secretary Patricio Chirinos Calero's opening remarks and
Ambassador Negroponte's speech).
Mexico hosted a United Nations Environment Programme (UNEP) regional
conference from May 31 to June 4, 1990. The conference included sessions on
the science of stratospheric ozone depletion; the future revisions to the
Montreal Protocol; technological developments on alternatives to CFCs, halons,
and other ozone-depleting substances; and policy recommendations by Latin
American and Caribbean countries. Participants included representatives from
Argentina, Bolivia, Brazil, Canada, Colombia, Costa Rica, Cuba, Chile,
Ecuador, El Salvador, Guatemala, Mexico, the Netherlands, Nicaragua, Panama,
Peru, Trinidad & Tobago, the United States, Uruguay, Venezuela, as well as
from the United Nations Environment Programme, the Inter-American Development
Bank, and the Organization of American States.
-15-
Mezico Case Study, First Edition, June 1990
-------
-16-
Mexico Case Study, First Edition, June 1990
-------
II. PRODUCTION AND CONSUMPTION OF CHLOROFLUOROCARBONS AND OTHER
OZONE-DEPLETING COMPOUNDS IN MEXICO
This chapter describes the production and consumption of CFCs, halons,
and other ozone-depleting substances, including HCFC-22, methyl chloroform,
and carbon tetrachloride in Mexico. Of these substances, only CFC-11, CFC-12,
and carbon tetrachloride are produced domestically; CFC-113, CFC-114, halons,
and methyl chloroform are all imported.6 Section A discusses historic and
future CFC production levels and the characteristics of the CFC-ll/CFC-12
production facilities. Section B discusses trade of the ozone-depleting
substances covered by the Montreal Protocol. Section C presents estimates of
the distribution of CFC and halon consumption by end use. Section D discusses
consumption and end uses of methyl chloroform and carbon tetrachloride.
A. CFC Production Levels and Status of Current Production Capacity
1. Historic. Current, and Planned Production Levels
Exhibit II-l presents estimates of the production of CFC-11 and CFC-
12 from 1984 through 1989, as well as projections for the period 1990-1993.
These estimates are based on information derived through communications with
industry and data generated by CANACINTRA and SEDUE.
2. Capacity and Location of Existing Facilities and Capacity under
Construction
DuPont and Quimobasicos produce CFC-11 and CFC-12 in three
facilities. Two plants owned by Quimobasicos are located in Monterrey, Nuevo
Leon, a northern state, and have a production capacity of approximately 14,000
metric tons. A third plant owned by DuPont is located in Mexico City's
metropolitan area and has a production capacity of 4,000 to 7,000 metric tons
6 As noted earlier, Mexico does not produce or import CFC-115.
-17-
Maxico Cas« Study, First Edition, June 1990
-------
Exhibit II-1.
Estimate* of CFC-1L and CFC-12 Production
(metric tons)
Year
Domestic Use
Export
Total
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
6,245
7,155
7,305
7,530
7,202
7,684
6,981
7,125
7,288
7,470
6,245
7,155
7,305
925 8,455
923 8,185
1,781 9,465
Source: Revision by Quimobasicos (accepted by SEDUE)
-18-
Mexico Case Study, First Edition, June 1990
-------
per year. Present production is 35 percent of the capacity of these plants.
No CFC-producing facilities are under construction.
3. Aae and Flexibility of Existing Production Facilities
Although the age of the CFC facilities is not reported, industry
sources indicated that these investments have been fully amortized and that
production costs are comparable to prices in international markets. Both CFC
producers have swing plants that can produce CFC-11 and CFC-12 or HCFC-22 on
demand. The HCFC-22 production capacity is approximately half of the CFC
capacity, i.e., approximately 10,000 metric tons.7 According to industry
sources, the switch from CFC-11 and CFC-12 to HCFC-22 does not require
additional capital investment, only changes in operating conditions. Both
producers have trained personnel to implement this change in response to
market conditions.
When production of CFC-11 and CFC-12 is phased out the facilities can be
operated to produce HCFC-22. No new investment is required, but the cost of
chemical inputs is not the same.
B. Trade of Ozone-Depleting Chemicals Covered by the Montreal Protocol
1. Imports and Exports
Mexico imports CFC-113, CFC-114, Halon-1211, and Halon-1302. Mexico
also imports methyl chloroform, primarily from the U.S. (see section D below).
In 1988, Mexico imported 400.3 metric tons of CFC-1138 and 44.3 metric tons
of CFC-114. Mexico does not produce or import CFC-115.
7 Mainly due to the stoichiometric relationship of the chemical
reaction.
8 This does not include consumption in the in-bond "maquiladora" plants
located in the Mexico/U.S. border region.
-19-
Mezico Case Study, First Edition, June 1990
-------
CFC-11 and CFC-12 supply is for domestic uses; however, approximately
1,500 tons are exported to the U.S. (No data is available on exports of
carbon tetrachloride).
2. Prices. Import Tariffs, and other Regulations Affecting Prices
The prices of all of the ozone-depleting substances are not
available at this time. In January 1990, CFC-12 sold for approximately $2.20
per kilogram9. There is an import tax of 10 percent on these substances. No
special import permits are required.
C. CFC and Halon Consumption by End Use
Exhibit II-2 shows the CFC-11 and CFC-12 consumption by end use for 1990.
Approximately 1,054 metric tons or 50.3 percent of total CFC-11 were consumed
in 1989 for the manufacture of foam products. The remainder of CFC-11
consumption is for refrigeration and aerosols, which consumed 840 metric tons
and 207 metric tons, respectively. By far the largest end use for CFC-12 in
Mexico is refrigeration, which consumed 3,922 metric tons in 1989 or 70.3
percent of total CFC-12 use. Aerosols (786 metric tons), foams (569 metric
tons), and sterilization (310 metric tons) account for the remaining CFC
production. The consumption pattern for imported halons is presented in
Exhibit II-3. Approximately 44 metric tons of CFC-114 are used in the
commercial and industrial refrigeration sector. CFC-113 use in electronics
and metal-cleaning applications is estimated at 400 metric tons.
9 All dollar costs and prices in this case study are expressed in U.S.
dollars.
-20-
Mexico Case Study, First Edition, June 1990
-------
Exhibit 11-2
Mexico: CFC-11 Consumption by End Use
(Based on Actual Tons Consumed in 1989)
Refrigeration 840 tons
Aerosols 207 tons /^l8SBHBB!8l^ (39.9%)
(9.8%)
Foams 1,059 tons
(50.3%)
2,106 Tons Consumed in 1989
Mexico: CFC-12 Consumption by End Use
(Based on Actual Tons Consumed in 1989)
Refrigeration 3,912 tons _-H=segBBMSSa_^
(70.1%) ^^^H^p^ferilization 3KHons
Foams 570 tons
(10.2%)
Aerosols 786 tons
(14.1%)
5,578 Tons Consumed in 1989
-21-
Maxico Case Study, First Edition, June 1990
-------
Exhibit I1-3.
Estimated Consumption of Halon 1211 and Halon 1301
(metric tons)
Year
Halon-1211
Halon-1301
1989
1990
1991
1992
1993
1994
1996
1997
200
220
242
266
293
322
354
390
60
66
73
80
88
97
106
117
Source: CAISA.
-22-
Mexico Case Study, First Edition, June 1990
-------
D. Other Ozone-Depleting Substances
1. Methyl Chloroform (MCP1
Mexico consumes 8,000 to 10,000 metric tons of methyl chloroform
annually, most of which is imported from the U.S. Exhibit II-4 shows the
distribution of Mexican methyl chloroform consumption by end use for 1988.
Electrical and electronic industries accounted for 72 percent of total
consumption, metal cleaning for 23 percent, and other end uses, including
adhesives, aerosols, medical products, and coatings, accounted for 5 percent.
Total demand for methyl chloroform in the electrical and electronic industry
was 6,400 metric tons in 1988. Seventy-five percent of methyl chloroform was
consumed by the "maquiladoras," manufacturing firms located in the duty-free
zones of Northern Mexico in areas adjoining the United States. The majority
of methyl chloroform is used for cleaning printed circuit boards and
components. The electrical and electronic industry predicted increased use of
methyl chloroform as a substitute for CFC-113. International electronic
manufacturing firms with significant methyl chloroform demand in Mexico
include: Zenith, Sanyo, Sony, Motorola, IBM, and Hitachi (Chem Systems 1989).
Metal cleaning consumed 2,000 metric tons of methyl chloroform in 1988.
The most common methyl chloroform-consuming markets were automotive products,
razor blades, and metal sheet stock for can manufacture. General Motors and
Chrysler are major consumers of methyl chloroform (Chem Systems 1989).
Adhesives, aerosols, medical products, and coatings comprised the smallest
portion of the methyl chloroform demand in 1988, consuming only 450 metric
tons.
Since the largest consumers of methyl chloroform in Mexico are the
maquiladora plants, which are operated by multinational companies, future
demand for methyl chloroform is closely related to the future needs of these
-23-
Mexico Case Study, First Edition, June 1990
-------
Exhibit 11-4
Consumption of Methyl Chloroform in Mexico
by End Use
Adhesives, Aerosols,
Medical products, Coatings
and other (5%)
Metal Cleaning (23%)
Electrical/Electronic Cleaning
(72%)
1988 Demand = 9,000 Metric Tons
Source: Chem Systems 1989
-24-
Mexico Cas* Study, First Edition, Jun« 1990
-------
foreign companies. The majority of these companies have their headquarters in
developed countries (notably the U.S., Japan, and the Federal Republic of
Germany). In some cases, the corporate CFC reduction policies of the parent
companies will lead to prompt reduction of CFC and methyl chloroform use in
Mexico. However, in cases where corporate policy does not yet discourage use
of ozone-depleting substances, there is a possibility for an increase in the
demand for methyl chloroform in Mexico.
Future demand for methyl chloroform in Mexico is expected to grow at 3
to 5 percent annually (Chem Systems 1989). Cheat Systems (1989) projects a 5
to 7 percent annual increase in methyl chloroform demand for the electrical
and electronic industry. Methyl chloroform demand for the metal-cleaning
industry in the Mexican market is estimated to grow 2 to 4 percent annually.
The various other end uses are small, but they are also expected to experience
moderate growth.
2. Carbon Tetrachloride fCClfl
The Mexican state-owned oil company, Petr61eos Mexicanos (PEMEX),
manufactured approximately 4,200 metric tons of carbon tetrachloride in 1989.
It is estimated that this accounts for 45 to 50 percent of total demand, and
the rest (approximately 5,000 metric tons) was imported. All of the carbon
tetrachloride is consumed for the manufacture of CFC-11 and CFC-12 (SEDUE
1990).
-25-
Mexico Case Study, First Edition, June 1990
-------
-26-
Mexico Case Study, First Edition, June 1990
-------
III. TECHNOLOGY AND EQUIPMENT CHARACTERISTICS IN CURRENT END USES
Many different industries and applications use CFCs, halons, and other
ozone-depleting substances in Mexico. These industries include:
• Commercial and Residential Refrigeration,
• Air Conditioning,
• Aerosols,
• Sterilization,
• Solvent Cleaning,
• Foams, and
• Halon Fire-Extinguishing Agents.
Exhibit III-l presents the quantity of CFCs and halons used in Mexico by end
use and Exhibit II1-2 shows the distribution of consumption by CFC. This
chapter describes the uses of CFCs and halons in more detail.
A. Commercial and Residential Refrigeration, Air Conditioning, and Heat
Pumps10
Accurate estimates of CFCs used in refrigeration and air
conditioning in Mexico are not yet available. This section discusses the
consumption of CFCs by type of cooling system.
1. ComiMoircd.al. Rofgxqeiration
CFCs are used as refrigerants in the following kinds of commercial
systems in Mexico:
• Retail food storage, used to refrigerate food and beverages in
grocery and convenience stores;
10 This section will be revised when more information is available on the
Mexican refrigeration industry.
-27-
Mexico Case Study, First Edition, June 1990
-------
Exhibit XXX-1. Total 1989 CFC Usage by End Us* in Mexico
(metric tons)
CFC CFC Halon Halon
End Use CFC-11 CFC-12 113 114 1211 1301
Refrigeration and Air Conditioning 840 3,912 44*
Aerosols 207 786
Sterilization 310
Solvent Cleaning 400*
Foams 1,059 570
Halon Fire Extinguishing Agents 200 60
TOTAL 2,106 5,578 400 44 200 60
Based on 1988 consumption data.
Source: SEDUE
-28-
Mexico Case Study, First Edition, June 1990
-------
Exhibit 111-2
Mexico: Distribution of CFC Consumption
(Based on Actual Tons Consumed in 1989)
CFC-113
(49%)
\-T-& /O/
CFC-11 2,1 06 tons
(25.9%)
CFC-12 5,578 tons
(68.6%)
CFC-114 44 tons
(0.5%)
Total: 8,128 Tons Consumed in 1989
-29-
ttexico Cas« Study, Fir»t Edition, June 1990
-------
Chillers, air conditioning systems in large commercial and
industrial buildings, including office buildings, hospitals,
schools, and factories;
Cold storage, refrigerated spaces such as warehouses that are used
to store meat, produce, dairy products, and other perishable goods;
Industrial process refrigeration, used in large-scale engineering
applications, chemical processing, petrochemical and refinery
applications, and large-scale ice manufacture; and
Refrigerated transport, including refrigerated trucks, trailers, and
rail cars.
CFCs are released from refrigeration systems and air conditioners during
(1) manufacturing (including leak testing, reworking, and shipping); (2)
installation; (3) use and servicing on-site; and (4) product disposal. CFC
emissions during use, servicing, and disposal far exceed emissions during
manufacturing and installation. Estimates of sector use will be provided in a
subsequent edition of this study as more sector-specific consumption data is
provided by the Mexican industry.
2. Residential Refrigeration
Residential refrigeration includes home refrigerators, freezers, and
other small refrigerated appliances such as ice machines and dehumidifiers.
There are two major refrigerator manufacturers in Mexico: MABE and Vitromatic.
Production of refrigerators in Mexico was approximately 500,000 units in 1989.
Approximately 215 metric tons of CFC-12 were used in residential refrigeration
in Mexico.
-30-
Mezico Case Study, First Edition, June 1990
-------
3. Mobile Air Conditioners11
Mobile air conditioners, which cool the passenger compartments of
automobiles, trucks, and buses, represent one use of CFCs in Mexico. Out of
275,000 motor vehicles manufactured or imported in that year, 9 percent had
factory-installed air conditioners. At present, CFC-12 is the only
refrigerant used in cars and trucks. Estimates of sector use will be provided
in a subsequent draft of this study as more sector-specific consumption data
is provided by the Mexican industry.
CFCs are used to charge new vehicle air conditioners and to replace the
charge lost during operation of vehicles. Gas stations and automobile
dealerships in Mexico service mobile air conditioning systems.
B. Production of Plastic Foam and Foam Insulation Products
1. Types of Foam Products and Recent Production
Mexico produces rigid and flexible polyurethane, polystyrene, and
polyethylene foams with CFC-11 and CFC-12 as blowing agents. Rigid and
flexible polyurethane foam accounts for more than 95 percent of the CFC-11
used in foams, whereas non-polyurethane foams account for all of the CFC-12
used in foams. Exhibit III-3 shows the production of polyurethane foams for
1988 and 1989. Flexible polyurethane foam is used for furniture, bedding,
carpet underlays, automotive interiors, and other transportation seating
applications. Rigid polyurethane foam is used for insulation in
refrigerators, freezers, buildings, tanks, pipes, and doors. The market for
sprayed and poured rigid foams used for refrigeration panels is growing due to
11 Detailed data for this section will be provided in a subsequent
edition of this report.
-31-
Mezico Case Study, First Edition, June 1990
-------
Exhibit III-3. Production of Polyurathana Foaai and CFC Consumption in Mexico
(•etric tons)
Foam Type 1988 1989
Flexible Foam
Rigid Foam
Elastomers
Other
Total
CFC- 11 Consumed
22,600
7,300
1,800
2.100
33,800
1,220
25,400
7,900
1,900
2,600
37,800
1,475
Source: Institute Mexicano del Poliuretano 1990.
-32-
Mexico Case Study, First Edition, June 1990
-------
increased exports of construction panels and refrigeration equipment. No
information is currently available on the production and foam applications for
polystyrene, polyethylene, and other non-polyurethane foams produced in
Mexico.
2• CFC Consumption in Foams
Exhibit ZII-4 shows the historical and projected consumption of
CFC-11 as a blowing agent from 1987 to 1991. It is projected that if no
efforts are made to adopt CFC substitutes and alternative insulation
technologies, consumption would grow by 10 percent per year due to the
increased demand for polyurethane foam products in domestic and export
markets. The consumption of CFC-12 as a blowing agent is estimated at 125,000
tons in 1989. Exhibit III-5 shows the reduction in CFC-12 consumption in
foams as projected by Mexican CFC producers as a result of the introduction of
alternative blowing agents or insulation technologies.
3. Imports and Exports
Most of the raw materials needed to produce the foam products are
domestically produced, with the exception of 4,4'-methylene di-isocyanate
(MDI). Imports of finished foams amount to a small quantity of flexible foam
and about 40 percent of the rigid foam consumed in Mexico, which includes all
rigid foam products contained in manufactured products (e.g., refrigerators).
A relatively small portion of foam production is exported (primarily to the
U.S.) as construction panels and refrigeration equipment.
4. Manufacturing Facilities and Current Technology
Exhibit II1-6 shows the types of foams manufactured in Mexico that
use CFCs as blowing agents. CFC producers sell these blowing agents and CFCs
to formulators who, in most cases, mix them with other raw materials to create
-33-
Mezico Case Study, First Edition, June 1990
-------
Exhibit III-4. Estimated CFC-11 and CFC-12 Consumption for Blowing Agents
(metric tons)
Year CFC-11 CFC-12
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
926
1,223
1,032
1,166
1.037
1,059
1,091
1,123
1,157
1,192
436
533
545
648
569
570
570
570
576
570
Source: Quimobasicos (Allied)
-34-
Mexico Case Study, First Edition, June 1990
-------
Exhibit 111-5
Projected Reduction in CFC-12 Consumption Used
as a Foam Blowing Agent
o
CJ
o
cc
Q.
LU
cr
h-
Z
O
UJ
X
O
CJ
o
CD
O
o:
a.
cj
X
UJ
UJ
O
o
-J
CD
CO
cu
I
(J
UJ
en
3
O
a
UJ
Z
o
u
SN01
-35-
Maxico Case Study, First Edition, June 1990
-------
Exhibit XII-6. Use of CPCs in Foams Manufactured in Mexico
• Polyurethane foams:
Molded flexible polyurethane foam (CFC-11);
Slabstock flexible polyurethane foam (CFC-11);
Rigid polyurethane foam (CFC-11 and CFC-12).
• Phenolic foams (CFC-12);
• Rigid extruded polystyrene foam (CFC-12); and
• Polyolefin foams (CFC-11).
-36-
Mexico Case Study, First Edition, June 1990
-------
a pre-mixed reactant product. System formulators sell their pre-mixed
reactant products to either Original Equipment Manufacturers (OEM) foam users
or to applicators. OEM foam users employ the pre-mixed reactants and other
raw materials (such as catalysts, water, and other additives) to create a
chemical reaction that yields various foam products. For example, a household
refrigerator manufacturing firm is an OEM foam user because it uses pre-mixed
reactants (containing CFCs) to create a chemical reaction within pre-assembled
refrigerator walls. Construction contractors spray foam products on-site to
insulate refrigeration chambers and refrigerated transportation equipment.
There are approximately nine major foam formulators in Mexico, all of
which used foreign technology, and at least three of them are fully owned
subsidiaries of European and U.S. firms. OEM foam users include two large
refrigeration equipment manufacturers and an unknown number of panel and
insulation product manufacturers. There are probably several hundred small
foam application firms or individuals.
Foam industry representatives estimate that system formulators will make
the greatest changes to switch to CFC-free formulations but that OEM foam
users would also be affected. OEMs using foam as an insulating material in
limited spaces may need to change the dimensions of their products to
accommodate thicker foam.
C. Aerosols
1. Product Types. Annual Production, and Recent Growth
Exhibit III-7 shows the distribution of aerosol units produced in
Mexico from 1981 to 1988 by product type. Personal products and insecticides
account for the largest share of production, followed by household products,
paints, industrial products, and medicinal products. The Mexican aerosols
industry has experienced a sharp decline in demand due to the deteriorating
-37-
Mexico Case Study, First Edition, June 1990
-------
0)
Q.
TJ
2
Q_
2
o
o
ol
o>
0) 00
Q O)
X
LU
o
c
mo
3
.Q
"S
Q
-38-
Mezico Ca>* Study, First Edition, June 1990
-------
economic conditions of the mid-eighties. Per capita consumption dropped from
1.2 aerosol units per year in 1981 to 0.5 units per year in 1987.
As shown in Exhibit III-8, Mexico produced only 43 million units in 1987,
about 50 percent less than the number of units produced in 1982. The market
has recovered slightly since then, growing to 49 million units in 1989.
During this period, an increasing proportion of aerosol products have been
produced using hydrocarbons instead of CFCs.
2• Import and Exports; Recent Trends
Most of the aerosols consumed in Mexico are domestically produced
except for a few specialty products. Little, if any, are exported.
3. Percent of Total Units Manufactured with CFCs
Approximately 12 percent of all aerosol units produced in Mexico in
1989 contained CFCs. The predominant propellents used currently in 88 percent
of aerosol products are the hydrocarbons isobutane and propane. Exhibit
III-9 shows the historical and projected consumption of CFC-11 and CFC-12 in
aerosols. Consumption will decline sharply as specified in voluntary industry
agreements with SEDUE. CFC consumption in aerosol products will cease by 1991
except for essential consumption in electronics cleaners, medicinal products,
and aerosols for aircraft maintenance. The industry intends to adopt
alternatives for the remaining uses as soon as they are available.
4• Manufacturing Facilities and Current Technology
It is estimated that eight large aerosol manufacturers produce about
60 percent of total aerosol products in Mexico. These firms produce at least
2.5 million units per year in their modern facilities. Many of these
manufacturers license technology from U.S. and European firms. Fifteen to
twenty medium-sized firms account for approximately 20 to 25 percent of the
total aerosol production. A medium-sized firm can produce 0.5 to 1 million
-39-
Mezico Case Study, First Edition, June 1990
-------
O)
00
O)
I
00
O)
O)
<0
£
O
+*
O
O
CO 00 CO CO 00 CO CO CO
0) 0) O) 0) 0) O) O) 0)
LU
CC
00
•s o
X
LU
o
cc
LU
o
X
LiJ
UJ
X
h-
C'08
0)
CO
O)
00
GO
CO
O)
(O
CO
0>
CO
0)
CO
0)
CO
CO
0)
CM
CO
o»
CO
0)
o
o
o
0)
o
CO
o
(O
o
in
o
n
o
(V
suoi|ui/\|
-40-
ttezico Case Study, First Edition, Jun* 1990
-------
Exhibit IIX-9. Historical and Projected* Consumption of CFC-11 and CFC-12
in Aerosols
(metric tons)
Year CFC-11 CFC-12
1984 427 915
1985 346 788
1986 387 715
1987 381 848
1988 244 735
1989 207 786
1990 150 400
1991 90 140
1992 95 145
1993 100 155
* To comply with agreement with SEDUE.
Source: SEDUE
-41-
Mexico Case Study, First Edition, June 1990
-------
units per year. A large number of small firms account for the remaining 15 to
20 percent.
D. Solvent Cleaning
Methyl chloroform and CFC-113 are the two most common solvents used in
cleaning operations of the electronics and metal-cleaning industries in
Mexico. Seventy-two percent of methyl chloroform consumption is used in the
electronics industry and 23 percent is used for metal-cleaning. CFC-113
consumption in these two industries is estimated to be 400 metric tons.
Specific uses of solvents in the electronics industry include those
related to cleaning of automotive electrical systems, military electronics,
and printed circuit boards and components. International manufacturing firms
with significant solvent cleaning operations in Mexico include: Zenith,
Sanyo, Sony, Motorola, IBM, and Hitachi (Chem Systems 1989). Methyl
chloroform demand is expected to grow due to continued growth in maquiladoras
and substitution of methyl chloroform for CFC-113 use.
E. Sterilization
CFC-12 is used in mixtures with ethylene oxide (EO), which is the active
sterilant gas. EO is toxic, mutagenic, a suspected carcinogen, flammable, and
explosive. In order to reduce flammability and explosion risks, EO is often
diluted with CFC-12 to a mixture of 12 percent EO and 88 percent CFC-12 (by
weight), commonly known as "12/88". Another diluent to EO is carbon dioxide,
which forms a non-flammable mixture in the ratio of 10 percent EO and 90
percent carbon dioxide (by weight); the mixture is commonly known as "10/90."
Mexico consumes 310 metric tons of CFC-12 for commercial and hospital
sterilization. The "10/90" mixture of EO is also used in Mexico.
-42-
Mexico Case Study. First Edition, June 1990
-------
F. Halons
Halons have been used in Mexico for 10 to 15 years in manual fire
extinguishers (Halon-1211) and in installed systems (Halon-1301).
Consumption has grown significantly, and current estimates place total halon
consumption at 260 tons. Initially, halons were introduced in Mexico because
foreign technical advisers requested halon manual extinguishers. Similarly,
installed Halon-1301 systems were initially used in Mexico by foreign-owned
firms. Over the past 10 years, Petrdleos Mexicanos (PEMEX) has used halons to
protect oil drilling platforms as recommended by international technical
assistance agencies.
Traditionally, halons were supplied to Mexico with custom-made fire-
extinguishing equipment. ICI (Halon-1211) and DuPont (Halon-1301) also
supplied halons to Mexican companies. Halons are supplied in metallic
containers of different sizes that were, in the past, returned to the country
of origin (e.g., England or the U.S.) after being emptied to fill
extinguishers or into storage tanks. Generally, the firms importing halons in
Mexico are those engaged in the fire-extinguishing equipment business. In
1986, Great Lakes Chemical Corporation (U.S.) began exporting Halon-1211 and
Halon-1301 to Mexico. The market expanded and Mexico now has bulk storage
facilities (built at a cost of $150,000) to recharge metallic halon cylinders
previously returned to the foreign suppliers. Halon prices have decreased,
partially as a result of reduced transportation costs.
There is no data available on the number of industrial, service, and
commercial facilities with installed halon-based fire-extinguishing equipment.
The total halon consumption is uncertain because the quantity of halons
contained in imported equipment is not compiled in any industry or government
statistics.
-43-
Mexico Case Study, First Edition, June 1990
-------
IV. METHODS OF REDUCING C^T-OROFLUOROCARBON USE; RECYCLING. CHEMICAL
ALTERNATIVES. ALTERNATIVE TECHNOLOGIES. AMP PRODUCT SUBSTITUTES
Methods of reducing chlorofluorocarbon use fall into four general
categories: recycling and adoption of other conservation practices, use of
chemical alternatives, use of alternative technologies, and product
substitution. This chapter describes existing and emerging reduction measures
specific to each category, and Exhibit IV-1 lists the options available in
each category.
A. Recycling and Other Conservation Practices
Recycling and other conservation practices are technically and
economically feasible methods to immediately reduce and eliminate unnecessary
emissions of ozone-depleting chemicals in various end-use sectors. Recycling
also ensures a reserve of recycled CFCs and halons, which industry can use to
service existing capital equipment and other essential uses. The use of
recycled CFCs and halons prevents additional ozone depletion and eases the
problems associated with early retirement or costly retrofit of existing
capital equipment. In Mexico, the primary sectors to target for recycling and
conservation practices are foams, refrigeration, and solvents. A recycling
method for sterilization is also discussed.
1. Refrigeration
In Mexico, refrigeration accounts for approximately 71 percent of
total CFC-12 use and approximately 33 percent of total CFC-11 use (see Exhibit
I1-2). Recycled CFCs can replace the demand for virgin CFCs in the after
market and can provide immediate reductions in CFC use in commercial and
residential refrigeration and in automobile air conditioning.
-45-
Mexico Case Study, First Edition, June 1990
-------
Ul
OT
o
LL.
O
(A
O
Q.
O
-46-
Mezico Case Study, First Edition, Jun« 1990
-------
a. Commercial and Residential Refrigeration
Recycling technologies for firms using large quantities of CFC
refrigerants such as utility companies and industrial facilities have existed
for many years. Recycling in these applications can be done either on-site or
off-site.
Many industrial facilities employ a stationary receiver tank that
temporarily stores refrigerant when the system is being repaired. Receiver
tanks help avoid venting of the refrigerant to the atmosphere and collect
refrigerant for reclamation. The captured refrigerant can than be transferred
to proper holding tanks and shipped to off-site facilities for recycling and
reclamation. Off-site reclamation is generally the most efficient means of
recycling refrigerant from large systems (Omega 1989).
On-site recycling, however, is becoming more technically and economically
feasible. In response to restrictions on CFC production, equipment
manufacturers are developing effective on-site refrigerant recycling
equipment. Major benefits of this equipment include: the reduction of CFC
emissions to the atmosphere; a safe and economical method of storing
refrigerant during servicing; and extended equipment life.
A recycling machine has been developed to service chillers and other
large systems with capacities of 500 to 5000 pounds (Refrigerant Reclamation
Systems 1989). The unit can be dedicated to one machine full time or
mobilized to service multiple systems. The machine could be adapted to many
other refrigeration systems. In addition, a large appliance manufacturer has
developed a refrigerant recovery system to prevent release of CFC refrigerant
during routine servicing of centrifugal chillers (Carrier 1990). The transfer
pumping system and storage tank of this unit is capable of holding 1500 or
3300 pounds of CFC-11 depending on the tank size. It is capable of recycling
-47-
Mexico Case Study, First Edition, June 1990
-------
the refrigerant while the chiller is in operation and during all servicing and
downtime. Excess oil and water present in the refrigerant are removed by
means of a distillation/separation system. The recycled refrigerant is then
returned to the system, recharging the chiller for optimum efficiency. The
recovery system can be used with any manufacturer's CFC-11 chiller. One of
the projects proposed in Section V of this report deals with refrigerant
recovery from chillers in Mexico.
Portable recycling units for systems with 1- to 100-pound charge sizes
are also currently on the market. Portable units are appropriate for office
building chillers, retail food refrigeration systems, refrigerated transport,
and home air conditioning systems.
One of the most innovative developments for small-capacity systems is the
plastic recovery bag. Developed by Whirlpool Corporation, a large appliance
manufacturer, it is a seven-layer plastic refrigerant recovery bag for
household refrigerators and freezers. The recovery bag can be hooked up to a
refrigerator or freezer prior to servicing to catch and hold the refrigerant.
Following servicing, a service technician can take the old refrigerant to a
recovery center for transfer to a pressurized tank. In turn, the tank is
shipped to a reprocessor. The 28-ounce capacity of the bag allows it to be
used for two or three jobs before being emptied. The plastic material is
durable enough to be filled and emptied up to four times, after which it
should be cut up and discarded properly along with other plastic waste. One
side of the bag has been left clear so the technician can visually check
exhausted refrigerant to determine whether damage has been done to the
appliance's sealed system.
-48-
Mexico Case Study, First Edition, June 1990
-------
b. Mobile Air Conditioning
Established methods are available to recapture CFCs in
automotive air conditioners that would normally be vented to the atmosphere
during servicing. Underwriters Laboratories (UL)12 has announced the first
certifications on recovery/recycling equipment that will properly recycle the
refrigerant found in automotive air conditioners. To date, UL has certified
the recycling units of six manufacturers. The certified equipment complies
with UL Standard 1963 for safety of refrigerant recovery/recycling equipment
and the Society of Automotive Engineers' (SAB) J1991 Standard for purity of
recycled refrigerants. UL Standard 1963 provides safety and performance
guidelines for the certification of automobile air conditioning
recovery/recycling equipment and specifies the SAE J1991 Standard. SAE J1991
is the published voluntary industry standard of purity for recycled
refrigerant. SAE has also published recommended practices for service
procedures for containment of CFC-12 (J1989) and for extraction and recycle
equipment for mobile air conditioning systems.
Several automobile manufacturers worldwide are voluntarily taking
additional steps to promote refrigerant recycling. Ford, General Motors,
Nissan, Toyota, and Volvo will sell recycling equipment to their dealers this
year. Additionally, Ford, General Motors, Nissan, and Volvo will require
their dealers to use UL-certified recycling equipment by 1991.
2. Foams
The manufacture of foam products in Mexico accounts for
approximately 56 percent of total CFC-11 use and approximately 11 percent of
12 Underwriters Laboratories (UL) is a not-for-profit laboratory that has
been certifying products for over 95 years to reduce safety and health risks
to consumers.
-49-
Mexico Case Study, First Edition, June 1990
-------
total CFC-12 use (see Exhibit II-2). CFCs are released from foam products at
different rates depending on the type of foam and the molecular weight of the
blowing agent. CFCs are released from most open-cell foams during the
manufacturing process. Closed-cell foams gradually release CFCs over the life
of the product and at product disposal. At present, recovery and recycling of
CFCs in the foaming sector may only be technically and economically feasible
in flexible slabatock production (UNEP Foams 1989). Carbon adsorption
technology is available to successfully capture CFC-11 emissions in this
application. Carbon adsorption is an efficient recovery/recycle method for
those manufacturing processes with high CFC emission rates. Carbon adsorption
is a process by which CFC-11 from process exhaust streams is absorbed onto
activated carbon. Producers can then easily desorb the CFC-11 and recover it
for reuse. Carbon adsorption is especially effective at recovering CFC-11
emitted from flexible slabstock manufacturing processes. In one full-scale,
conventional slabstock plant in Europe, a recovery rate of approximately 40
percent was achieved using carbon adsorption (U.S. EPA 1990a).
Greater recovery of CFCs may be achieved by including the curing area, a
major source of CFC-11 emissions in the manufacturing process, in the recovery
process. An example of recovery technology that encloses the curing area is a
foam production machine, developed by. a European foam manufacturer, that
contains an active carbon recycling unit to capture CFC-11 released in the
manufacturing process (Unifoam 1988). The process design permits higher CFC
recovery rates than are currently possible in conventional pouring and curing
operations. Although CFC-11 recovered with carbon adsorption units is clean
enough to be reused without further purification, the costs associated with
this process can be substantial and are highly plant specific. To be
economically efficient, a carbon adsorption unit must recover and return a
-50-
Mexico Case Study, First Edition, June 1990
-------
quantity of CFC-11 sufficient to offset the annual costs of operation (U.S.
EPA 1990a).
3. Solvents
The solvents sector accounts for all CFC-113 use in Mexico (see
Exhibit III-l). A first step to significantly reduce consumption and
eliminate unnecessary emissions of CFC solvents is to implement conservation
and recovery practices. This is especially important in the near term while
processes and equipment are redesigned or other production changes are made to
eliminate CFC use altogether.
a. Electronics
Conservation and recovery practices can dramatically reduce
CFC-113 consumption in electronics applications. Specific recommended
operating practices include reducing air currents (particularly around the
degreaser), optimizing manufacturing schedules to minimize work being
processed on an intermittent basis, positioning work to minimize drag-out,
ensuring that the speed of work entry and exit does not disrupt the vapor
blanket, and locating and repairing all leaks (UNEP Solvents 1989). Greater
attention to improved storage and handling procedures will also minimize CFC
solvent releases.
Engineering controls also contribute greatly to CFC-113 conservation.
Controls for batch degreasers include retrofitting or redesigning with
increased freeboard height, retrofitting automatic hoists and programming them
for proper entry and exit speeds, and adding degreaser lids or covers that
automatically close when the assembly is removed (U.S. EPA 1990b). For in-
line cleaners, specific controls include increased freeboard height, increased
compressor capacity, extra cooling coils on inlets and outlets, and
-51-
Mexico Case Study, First Edition, June 1990
-------
rationalization of cleaners to handle output from two or more soldering
machines (UNEP Solvents 1989).
Recovery technology is well established in the solvent user industry.
Solvents can be recycled on-site by users or at off-site commercial recycling
facilities. Solvent recovery systems conserve solvent and minimize fresh
solvent use. One of the most successful methods in use today is carbon
adsorption. A two-stage carbon adsorption steam-regenerated solvent scrubber
can effectively capture and reclaim CFC-113 losses due to evaporation.
However, the benefits of converting to other alternative cleaning methods
should be weighed against the increased costs of maintenance and operation of
carbon adsorption equipment and the quantity of solvent recovered. The
payback period on a carbon adsorption system is estimated to be two years
(UNEP Solvents 1989). The higher the losses through escaped solvent exhaust,
the greater the payback with this system.
b. Metal Cleaning
A range of options exist for conserving or recycling CFC-113 in
metal-cleaning applications. Specific engineering controls include adding
additional filtration equipment, modifying the cleaning and assembly sequence
to reduce cleaner use, wrapping parts between assembly steps, or wearing
gloves while handling parts to eliminate the need for manual cleaning.
Suggested improvements in operating procedures include physically removing
large contaminants prior to degreasing and centrally locating systems for
removing heavy contaminants to decrease the amount of cleaner used (UNEP
Solvents 1989).
As in the electronics sector, recovery techniques for metal cleaning
processes have existed for a number of years. Three examples are gravity
separators, water adsorption, and single plate distillation.
-52-
Mexico Case Study, First Edition, June 1990
-------
Gravity separators operate on the principle that water and solvent
separate into two distinct phases provided there is sufficient residence time.
Once separated, the heavier solvent phase will be purified further or returned
to the solvent-boiling still. Gravity separators are commercially available
and can be adapted to any existing degreaser.
Water adsorption is another effective moisture control technique. In
this process, trace amounts of water are removed from the solvent by passing
the solvent through molecular sieves or similar desiccants. This control
maintains the cleaning performance of the solvent and minimizes hydrolysis.
The single-plate distillation process, combined with product filtration
and desiccation, produces a virgin-quality solvent that can be reused. This
process combines and concentrates still bottoms and transfers them to a
reclaiming still. The distillate is then returned to the degreaser or to a
storage reservoir. Single-plate distillation is economical for plants
generating approximately 30 liters per day of solvent waste (UNEP Solvents
1989).
Both the electronics and metal-cleaning sectors can utilize off-site
recycling facilities to recycle solvent generated from degreaser bottoms left
over after cleaning operations or from still bottoms with high contamination
levels left over after on-site recycling. Most off-site facilities in the
U.S. are owned and operated independently, but some CFC solvents manufacturers
also provide recycling facilities to their customers. Allied-Signal operates
a CFC-113 recycling facility in San Diego, California, and has offered
technical support for U.S./Mexico border recycling initiatives. (This option
is discussed in Section V of this report.) Solvents recycled off-site can be
sent back to the user that generated the spent solvent or placed on the open
market as recycled solvent and sold to a wide variety of users.
-53-
Mezico Case Study, First Edition, June 1990
-------
4. Sterilization
Sterilization accounts for 6 percent of total CFC-12 use in Mexico
(see Exhibit II-2). Add-on engineering systems are available for recycling
CFC-12 and ethylene oxide (EO). These systems require handling of pure EO
(with the necessary safety precautions) to replace lost amounts. All of the
CFC could be reclaimed using a cryogenic system. This could be cost effective
on a large scale (UNEP Aerosols 1989).
B. Chemical Alternatives
The timely development and adoption of substitute chemicals for CFCs is
important for stratospheric ozone protection. In addition to being
environmentally sound, CFC alternatives must be technically and economically
feasible. Reviewed below are the current and emerging chemical substitutes
under consideration for the major end uses applicable to Mexico. The
"alternative technologies" (i.e., alternative methods which involve new
processes in each of the CFC application areas) are discussed in Section C of
this chapter.
1. Refrigeration
a. Commercial
For commercial applications, possible alternative refrigerants
include ammonia, HCFC-123, HCFC-22, the ternary blend of HCFC-22/HFC-
152a/HCFC-124 already discussed, CFC-500, and CFC-502.
Ammonia is already used with existing equipment in many industrial and
commercial applications such as cold storage and food processing. It
biodegrades quickly and does not deplete the ozone layer. It is, however,
toxic to humans in concentrations above 110 parts per million (ppm) and after
8 hours of exposure, and flammable in concentrations of 16 to 25 percent by
-54-
Mexico Case Study, First Edition, June 1990
-------
volume in air (UNEP Technology 1989). However, because of its pungent odor it
is easy to recognize so that personnel can be evacuated and leaks repaired
soon after a leak occurs.
HCFC-123 is being considered as a substitute refrigerant for CFC-11 for
commercial chillers. HCFC-123 is likely to be a virtual drop-in substitute
for many CFC-11 refrigeration applications and has an ODP of 0.02. A
manufacturing plant has been built in the U.S. to produce this new
refrigerant, with commercial quantities expected by late 1990. Two
manufacturers (Trane and York) have developed chillers that are fully
compatible with both CFC-11 and HCFC-123. This makes a transition to HCFC-123
easy because HCFC-123 is completely miscible with CFC-11, eliminating the need
for changes in bulk facilities. The new chiller models can be converted from
CFC-11 to HCFC-123. There will be instances, however, where chiller equipment
may have to be adjusted or replaced to allow for the change in refrigerants.
HCFC-22 has an ODP of 0.05 compared to that of CFC-12. Alone or in a
blend, it can be used in both medium- and low-temperature systems, as found in
cold storage or retail food applications, as a replacement for CFC-12 and CFC-
502. In certain applications, system redesign and compressor modification
will be required to permit HCFC-22 use.
CFC-500 and CFC-502 are two chemical substitutes that can replace CFC-12
use in the short term. CFC-502 is presently used in some retail and cold
storage/food processing applications. CFC-502 is an azeotropic mixture
composed of HCFC-22 (49 percent) and CFC-115 (51 percent) with an ODP of 0.3.
CFC-500 is the azeotropic mixture of 73.8 percent CFC-12 and 26.2 percent HFC-
152a. Both CFC-500 and CFC-502 can replace CFC-12 in new equipment for most
applications in the industrial sector (UNEP Refrigeration 1989).
-55-
Mexico Case Study, First Edition, June 1990
-------
b. Residential Refrigeration
For residential refrigeration, near- and mid-term alternatives
include ternary blends, HFC-152a, non-azeotropic refrigerant mixtures (NARMs),
and CFC-500.
A promising option for domestic refrigeration is a ternary blend of HCFC-
22 (40 percent), HFC-152a (40 percent) and HCFC-124 (20 percent). The ternary
blend has thermodynamic properties that match those of CFC-12 very closely.
Other advantages include approximately 3 percent better energy efficiency
consumption compared to CFC-12 and an OOP of 0.03 (UNEP Refrigeration 1989).
The ternary blend is expected to become available worldwide by 1993.
Combinations of commercially available and acceptable fluids in NARMs may
be used as CFC substitutes. Today's refrigerators use a single refrigerant,
CFC-12, which boils at 30°C. Most early discussions of replacing CFC-12
focused on finding a single "drop-in"13 replacement. However, certain
mixtures (non-azeotropic) of non-CFC refrigerants, such as the HCFC-22/HCFC-
142b mixture, exhibit the property of boiling over a range of temperatures,
which provides a number of thermodynamic advantages in designing a
refrigeration system (Hoffman and Kwartin 1990). Some NARMs have OOP values
below 0.05 and have properties very similar to CFC-12, so they could be phased
in quickly.
HFC-l52a1* is available as an alternative refrigerant and has proved to
be a possible replacement for CFCs. HFC-152a is moderately flammable, but has
excellent thermodynamic characteristics. Recent tests demonstrate that HFC-
152a would improve refrigerator energy efficiency by at least 7 percent, which
13 A "drop-in" substitute can replace CFCs in existing equipment without
requiring conversion or retrofitting of the equipment.
'* HFC-152a contains no chlorine and therefore does not deplete ozone.
-56-
Maxico Case Study, First Edition, June 1990
-------
makes HFC-152a an attractive near-term option. Since the amount of
refrigerant used in refrigerators is only about 0.2 kg, it is possible that
engineers will design units that can use HFC-152a.
CFC-500 is the azeotropic mixture of 73.8 percent CFC-12 and 26.2 percent
HFC-152a. CFC-500 is compatible with existing CFC-12 systems and no equipment
modifications are necessary. Further advantages of CFC-500 include increased
cooling capacity and an OOP that is 25 percent less than that of CFC-12.
e. Mobile Air Conditioning
The most viable candidate to replace CFC-12 in mobile air
conditioning is HFC-134a. A non-ozone-depleting chemical15, HFC-134a's
thermodynamic properties are similar to those of CFC-12. HFC-134a is not a
drop-in replacement; system changes are necessary for a successful conversion
to this alternate refrigerant.
Many car manufacturers worldwide are preparing to produce cars with HFC-
134a air conditioning systems in the near future. Volvo has committed itself
to offer HFC-134a based systems on all models of their cars by the end of the
1994 calendar year. Nissan will install HFC-134a systems on new vehicles
beginning in 1993, with all models equipped by the mid-1990s. General Motors
will introduce a new air conditioning system that uses HFC-134a starting in
the 1994 model year.
2. Foams
HCFC-123 and HCFC-141b are possible substitutes for some
applications presently using CFC-11. Both exhibit physical properties similar
to those of CFC-11 (boiling point, vapor thermal conductivity, and heat of
vaporization), and both have significantly lower atmospheric lifetimes and
15 HFC-134a contains no chlorine and therefore does not deplete ozone.
-57-
Mexieo Case Study, First Edition, June 1990
-------
lower ozone depletion potentials than CFC-11 (0.13 and 0.69 respectively).
HCFC-123 results in a slight decline in thermal performance, somewhat
decreased blowing efficiency, and increased solvency (UNEP Foams 1989). HCFC-
14Ib, a more efficient blowing agent than CFC-11, is flammable and may require
plant modifications to accommodate its use (UNEP Foams 1989).
A blend of HCFC-123 and HCFC-141b is currently being evaluated by two
major chemical manufacturers. The HCFC-141b/HCFC-123 blend appears to be one
of the most promising future substitutes for insulation and flexible
applications. Commercial quantities are expected to be produced by 1993.
In the near term, HCFCs are considered the most viable substitutes for
CFCs as blowing agents, provided they are environmentally acceptable. The
immediate substitution of currently available HCFCs such as HCFC-142b and
HCFC-22 in the polystyrene, polyethylene, and some polyurethane industries can
achieve almost one third of total global reductions (UNEP Foams 1989). Blends
of CFC-12/HCFC-22, HCFC-22/hydrocarbons, and HCFC-142b/HCFC-22 are also
immediately feasible options offering a reduced OOP. In slabstock
applications, methylene chloride is also immediately available to replace
CFC-11.
Alone or in combination with HCFC-22, HCFC-142b is a blowing
agent/insulation gas alternative to CFC-12. With an OOP of 0.06 and proven
low toxicity, HCFC-142b differs little from CFC-12 with respect to
permeability and product quality. HCFC-142b is commercially produced in North
America, Europe, and Japan, and capacity is expected to meet global demand by
1990-91 (UNEP Foams 1989).
HCFC-22 can be substituted for CFC-12 in the manufacture of some extruded
polystyrene products. HCFC-22 has a far lower OOP than CFC-12, is non-
flammable, low in toxicity, and has high chemical and thermal stability. In
-58-
Mexico Case Study, First Edition, June 1990
-------
most applications, the quality of products made using HCFC-22 is acceptable
and comparable to that of products using CFC-12 (UNEP Foams 1989).
The use of CFC-11 and CFC-12 for food service foam products can be
reduced or eliminated by switching to HCFC-22 as an alternative blowing agent.
The American Foodservice and Packaging Institute (FPI) has published the
technical details of the food packaging plant conversions, which are available
for distribution worldwide (FPI 1988).
Another option that foam manufacturers have explored is the use of
hydrocarbons such as n-pentane, isopentane, butane, and isobutane for
polystyrene foam applications. These hydrocarbons are readily available
petroleum byproducts that can be used alone or in combination with carbon
dioxide or HCFC-22.
In slabstock production, the substitution of methylene chloride for
CFC—11 is a technically feasible and commercially available immediate option.
Methylene chloride has a very short atmospheric lifetime and a negligible OOP.
Methylene chloride can technically eliminate 80 to 100 percent of CFC-11 usage
in slabstock production (UNEP Foams 1989). Its toxicity and the associated
precautions for industrial use should be considered when evaluating its
potential as a substitute for CFC-11 in foam applications.
3. Aerosols
The aerosol sector accounts for 11 percent of total CFC-11 use and
11.5 percent of total CFC-12 use in Mexico (see Exhibit II-2). A wide variety
of alternative prope11ants exist for CFCs used in aerosol applications. The
suitability of a particular alternative varies with the product to be
produced. The optimal choice is a function of matching product requirements
with alternative prope11ant characteristics.
-59-
Mazico Cas« Study, First Edition, June 1990
-------
The most common substitutes for CFCs are the flammable hydrocarbons
propane, butane, and, sometimes, n-pentane. An increasing proportion of
aerosol products are being produced in Mexico using the more cost-effective
hydrocarbon-based technology. Hydrocarbons are flammable and, as such,
special filling and storage precautions must be taken. As a result, filling
and storage facilities must be equipped with fire-detection equipment,
sprinklers, and other related systems in the event of an emergency. Gassing
stations should be located in an explosion-tolerant facility well away from
the main building and any populated areas. The station should be fitted with
a blow-out wall, grounded equipment, and explosion-proof electrical systems.
Other additional requirements, depending on local codes and regulations, could
include gas-detection equipment, standard and emergency ventilation at floor
level, and explosion-suppression systems.
An innovative approach the Mexican aerosol industry has taken to reduce
the risk of explosion is the use of an open-air filling station. Simple
technologies such as this are easily transferrable to other countries with
similar climate conditions.
Dimethyl ether is another flammable alternative prope11ant. Due to its
high water solubility, dimethyl ether is primarily used in those applications
where special properties such as water solubility are required. The cost of
dimethyl ether is higher than hydrocarbons, but equal or less than the cost of
CFCs. Because it is flammable, capital costs are similar to those for
hydrocarbons, except that a more sophisticated explosion-proof electrical
system is required (UNEP Aerosols 1989).
Two other existing flammable alternatives are HCFC-142b and HFC-152a.
More costly than CFCs and the other alternatives covered thus far, they are
-60-
Mexico Case Study, First Edition, June 1990
-------
used primarily in instances where the ability to enhance product performance
is of greater importance than the price of the propellant used.
The non-flammable alternatives currently available include HCFC-22,
blends of HCFC-22/HCFC-142b and HCFC-22/HFC-152a, HCFC-22, and HCFC-123, and
compressed gases such as carbon dioxide and nitrogen. These options are
currently being evaluated for certain specialty products such as electronic
cleaners and mold releases.
In those applications where medium to coarse sprays are acceptable,
carbon dioxide and nitrogen with current valve designs can be substituted
effectively for CFCs. Compressed gases are used in 7 to 9 percent of aerosols
worldwide and may increase their market share as valve and package designs are
improved to compensate for the decreasing can pressure during product use
(UNEP Aerosols 1989).
4. Solvents
This section discusses chemical alternatives for CFC solvents used
in electronics and metal cleaning. Process modifications, such as aqueous
cleaning, appear in the alternative technologies section included later in
this chapter.
a. Electronics
There is no single substitute for the many uses of CFC-113.
Every application area, however, has one or more options that can be adopted.
Substitute solvents for CFC-113 in electronics industry applications which
provide equal or better cleaning performance at equal cost include terpenes (a
solvent derived from orange peels), organic and alcohol-based solvents, and
HCFC solvent blends (UNEP Technology 1989).
Methyl chloroform and carbon tetrachloride are capable of replacing
CFC—113 in certain cleaning applications. Methyl chloroform's OOP is 0.11 and
-61-
Hezieo Case Study, First Edition, June 1990
-------
carbon tetrachlorids'a OOP is 1.11; both are consumed in large quantities
worldwide (UNEP Technology 1989).
Hydrocarbon/surfactant-based solvents such as terpene blends are viable
alternatives for cleaning rosin flux residue from both wave soldered and
reflow soldered assemblies (UNEP Solvents 1989). Terpenes are generally
isoprene oligomers, but may include derivatives such as alcohols, aldehydes,
and esters. Terpenes display a number of characteristics that make them
attractive cleaning alternatives. For example, they can be used to clean
closely spaced components, which is particularly important for cleaning
surface-mount devices; they work well at room or slightly higher temperatures;
they are noncorrosive, have low viscosity, and are low foaming; and they
remove both polar and non-polar contaminants (U.S. EPA 1990b). The waste
solvent or wastewater of the terpene blends must be treated effectively and
disposed of properly. From the outset, care should be taken to ensure that
both the rinse waters and the surfactant used in the blend are environmentally
acceptable.
Organic solvents such as ketones, aromatics, aliphatics (mineral
spirits), and alcohols are effective at removing solder fluxes and many polar
contaminants (UNEP Solvents 1989). In general, they are volatile and
flammable. Organic solvents are primarily used in small quantities in
well—vented areas or under inert atmospheric conditions.
Five other organic solvents and HCFCs have been proposed as possible CFC-
113 substitutes: pentafluoropropanol, isopropanol, HCFC-225ca, HCFC-225cb, and
an HCFC-141b/HCFC-123/methanol blend. Preliminary data suggest that these
solvents have good cleaning performance. In fact, experiments indicate that
isopropanol is about twice as effective as CFC-113 azeotrope blends and
-62-
Mexico Case Study, First Edition, June 1990
-------
distills for longer periods before its effective quality drops (UNEP Solvents
1989).
Pure CFC-113 and chlorocarbon solvents, when blended with alcohols such
as ethanol and methanol, effectively remove fluxes when used properly (UNEP
Solvents 1989). A number of CFC-producing companies have developed a variety
of solvent blends with significantly reduced CFC-113 blends. These blends are
viable options for the near-term only, however, because of the high ozone-
depletion potential of the primary solvents in the blends.
One blend that is likely to be available commercially in the next 1-3
years relies on neither CFC-113 nor methyl chloroform. The blend is an
azeotrope-like mixture of HCFC-123, HCFC-141b, alcohol (methanol), and
stabilizers suitable for use in vapor degreasing operations to clean printed
circuit boards. It has an OOP of 0.08 and is capable of cleaning as well as
or better than CFC-113.
b. Metal Cleaning
In metal-cleaning applications, a substantial short-term
reduction in the use of CFC-113 is possible by substituting other cleaners.
The process modifications related to these applications, such as aqueous
cleaning, are outlined in the alternative technologies section of this report.
For large industrial vapor degreasers, alternative solvent blends include
CFC/113 azeotropes and new azeotropic blends of HCFCs and chlorinated
solvents. Due to the ozone depletion factors associated with these
substitutes, their use is primarily viewed to be short term until non-ozone-
depleting alternatives are developed (UNEP Solvents 1989).
For manual cleaning, commercial solvent blends are available. These
products are mixtures of aliphatic and aromatic hydrocarbons (naphtha,
toluene, xylene) and oxygenated solvents (ketones, esters, and alcohols).
-63-
Mexico Case Study, First Edition, June 1990
-------
Many of these blends are flammable and some have relatively low threshold
limit values. In the U.S., industrial use of these volatile organic compounds
is discouraged and closely regulated because of their effect on tropospheric
ozone formation (smog).
Solvent blends of aliphatic naphtha with perchloroethylene and/or
methylene chloride are viable substitutes for CFC-113 in manual or immersion
cleaning of heavy soils and greases where hydrocarbon residue from naphtha is
not a problem and volatile organic compounds can be controlled (UNEP Solvents
1989).
5. Sterilization
Sterilization of instruments and equipment by hospitals, medical
equipment suppliers, and contract sterilization firms plays a vital role in
protecting human health.
Ethylene oxide (EO) is widely used for gas sterilization of medical
equipment and devices. EO is especially useful for sterilizing heat-sensitive
products. However, EO is toxic, mutagenic, a suspected carcinogen, flammable,
and explosive. In order to reduce flammability and explosion risks, EO is
diluted with CFC-12 to a mixture of 12 percent EO and 88 percent CFC-12 (by
weight). This mixture is commonly known as "12/88". Most industrial and
commercial users of "12/88" could switch to pure EO (UNEP Aerosols 1989).
Existing "12/88" sterilization chambers can be used, but extensive
retrofitting for safety would be required. Cost savings would be realized,
however, because CFC-12 or its potential replacement chemicals would not have
to be purchased (UNEP Aerosols 1989). Small- and medium-sized industrial and
commercial facilities may find it easier to convert to a mixture of 10 percent
EO and 90 percent carbon dioxide. The overall investment costs for a switch
to "10/90" would be lower than the cost of switching to pure EO, unless
-64-
Mexico Case Study, First Edition, June 1990
-------
existing equipment is unable to operate at the higher pressures required (UNEP
Aerosols 1989).
For the future, the most promising alternative is an HCFC-based
proprietary blend. This blend can serve as a virtual drop-in for existing
"12/88" equipment, and could also be used in "10/90" equipment with minimal
changes. Results of testing of the new blend's performance characteristics
have been encouraging.
C. Alternative Technologies
1. Refrigeration
The standard refrigerator/freezer has its evaporator in the freezer
where a fan blows air over it. This cools the air below the freezing point of
water, which removes moisture from the airstream. The cold, dry air
circulates through the freezer and then into the refrigerator, where the
absence of moisture dehydrates the vegetables and other foods. The Lorenz
cycle, first proposed by an East German scientist in 1975, would use a non-
azeotropic refrigerant mixture (NARM) and have two evaporators (one in the
refrigerator, one in the freezer). Each compartment would be designed to
chill to the correct temperature and to maintain humidity in the refrigeration
section. This process could reduce electricity consumption by 20-23 percent
and provide a "vegetable friendly" refrigerator section (Hoffman and Kwartin
1990).
Other possible design technologies include machines with totally
independent refrigerator and freezer loops and two-loop, two compressor
configurations with one compressor motor.
-65-
Mexico Case Study, First Edition, June 1990
-------
2. Foams
The foaming agents proposed as replacements for CFC-11 are likely to
produce slightly poorer foam insulation properties. To compensate,
refrigerator walls could be thickened to increase insulation.
One process change that the polyurethane industry can implement to
achieve immediate CFC reductions is to increase the substitution of water for
CFC-11. Water reacts with isocyanate to generate carbon dioxide as a blowing
agent. The actual amount of water substituted in the process will depend on
initial energy performance of the foam, the isocyanate base used to
manufacture the foam, and on physical property requirements (UNEP Technology
1989). Increased water substitution has been adopted in Japan, the United
States, and Western Europe. To partially offset the effect of the changed gas
composition due to the increased use of water, some manufacturers have reduced
cell size. The result is a reduction in thermal conductivity from heat
transfer (UNEP Foams 1989). Other changes that compensate for the increased
substitution of water for CFC-11 include modifications to pumps, pipes,
filters, and mixing head equipment.
The AB process reduces the need for inert blowing agents such as CFC-11.
Based on using the reaction of formic acid with an isocyanate in addition to
the water/isocyanate reaction normally used to generate gas for the expansion
of foam, the AB process doubles the quantity of gas generated (UNEP Foams
1989). The foams produced by this process are softer than all water-blown
foams. Capital investment in process equipment, protective equipment for the
workers, environmental controls, and increased ventilation might be necessary
depending upon the existing facilities (UNEP Foams 1989). Providing
protective equipment and improved ventilation is especially important since
carbon monoxide is emitted as a result of the AB process.
-66-
Mexico Case Study, First Edition, June 1990
-------
An insulation technology currently under development as a long-term
option is a total carbon dioxide-blown foam used in combination with vacuum
panels. Extensive research is still needed to determine the overall
commercialization potential for this technology. This technology could
eliminate CFCs from polyurethane foam insulation and potentially provide
significant increases in energy efficiency.
Another alternative that should be considered is new polyol technology.
Using new polyol technology in combination with new chemical systems can
produce an expanded range of grades of polyurethane foam with reduced CFC-11
use (UNEP Foams 1989). Polyols have been targeted to significantly reduce or
eliminate the need for CFCs and other auxiliary blowing agents for higher-
density foams. New polyols can be used with existing foam machinery.
Conventional formulations relying on auxiliary blowing agents will still have
to be relied upon for lower-density foams.
A different approach that may work is vacuum insulation. Vacuum
insulation has far superior insulating properties even compared with CFC-11
foam, but manufacturers have not yet perfected a technique for making vacuum
panels that will last for 30 years. One European manufacturer produces a
commercially available vacuum insulation that, if durable enough to last the
full life of a refrigerator, could reduce electricity consumption.
3. Solvents
a. Electronics
There are a number of alternative cleaning processes available
for the electronics industry. It is important, however, that customer
requirements are closely examined before an alternative is implemented.
Hater is an excellent solvent for removing ionic contaminants and water
soluble fluxes. Water, in combination with a saponifier, can remove non-polar
-67-
Mexico Case Study, First Edition, June 1990
-------
substances such as oil and rosin fluxes. Aqueous cleaning systems generally
consist of a washing, rinsing, and a drying stage. Aqueous cleaning is most
effective when combined with high-pressure and/or high-volume sprays normally
used in batch cleaners and in-line conveyors. Aqueous cleaning offers several
potential advantages: it can be used to remove water-soluble fluxes, and, in
conjunction with saponifiers, rosin fluxes; it is suitable for cleaning
through-hole and surface-mount assemblies; no distillation equipment is
required to recycle the solvent; there are no costs to dispose of spent
solvents; and pretreatment costs can be reduced if water treatment (e.g.,
distillation, reverse osmosis, heating, etc.) is not required (U.S. EPA
1990b).
Most newly designed aqueous cleaning systems are based on a closed-loop
recirculating wash and rinse stage, as opposed to a continuous discharge
system. The wash- and rinsewater is continuously used for weeks or months
without being discharged. This reduces the amount of wastewater being used,
therefore reducing energy and disposal costs. "Zero-discharge" aqueous
cleaning equipment, closed-loop recycling systems that minimize the discharge
of process water is available for systems that use water-soluble fluxes. Such
systems reduce water, energy, and disposal costs significantly (UNEP Solvents
1989).
Digital Equipment Corporation, recently announced the development of a
new technology to clean sophisticated printed circuit boards used in
electronic products. Digital will allow manufacturers worldwide to use this
technology free of charge as part of its corporate commitment to protect the
ozone layer. Digital's Microdroplet Aqueous Module Cleaning Process is
different from other aqueous-based cleaning systems in the industry. The key
process parameters identified are related to water droplet size and angle of
-68-
Mexico Case Study, First Edition, June 1990
-------
impingement of the water for effectively cleaning rigid leaded surface-mount
components.
An alternative to cleaning is the low-solids flux/"no clean" assembly.
By carefully evaluating and selecting components and assembly processes, low-
solids fluxes can be used to eliminate cleaning in some instances.
Traditionally, the electronics industry has used, and is still using, rosin
fluxes containing between 15 and 35 percent solids for wave soldering
electronics assemblies (through-hole, single-sided, and double-sided printed
circuit boards) (U.S. EPA 1990b). Numerous low-solids fluxes containing 1 to
10 percent rosin (or resin, or both) have been formulated and tested. The
advantages of the low-solids fluxes include the possibility that "bed of
nails" testing on printed circuit board assemblies can be carried out
immediately after wave soldering without the problems created by the presence
of rosin residues and without defluxing (U.S. EPA 1990b). Depending on the
solder mask or resist and the low-solids flux used, little or no visible
residue remains on the boards after soldering. The remaining residues, if
any, dry and rapidly harden. Automatic testing can be done without cleaning
the boards. Because low-solids fluxes are generally considered non-corrosive
and have high insulation resistance, it is unnecessary to remove them, in most
cases, even for cosmetic reasons. Commercial spray fluxes are now available
in foam, wave, and spray application. Wave application of low-solids flux
presents minimal cost and retrofit difficulties (UNEP Solvents 1989). As
these processes all utilize low-solids fluxes diluted with iaopropanol,
adequate ventilation and fire-suppression systems must be considered.
A new soldering process, controlled atmosphere soldering, operates under
a nitrogen atmosphere and applies finely divided activators via ultrasonic
injection. The carboxylic acid activators include formic acid, acetic acid,
-69-
Mexico Case Study, First Edition, June 1990
-------
citric acid, and adipic acid. Other processes being developed function on the
same principle, except that soldering is carried out in a vacuum instead of a
nitrogen atmosphere.
The particular features that make this process preferable to the method
of soldering under atmospheric conditions (i.e., in the presence of oxygen)
are that soldering takes place with metallically pure solder; oxide formation
is greatly reduced on the printed circuit boards both before and after
soldering; the system operates without conventional rosin or resin fluxes; and
it eliminates, for many applications, the post-cleaning required for
assemblies that are wave soldered on existing equipment that uses conventional
fluxes (U.S. EPA 1990b).
Inert gas wave soldering has been tested by a large West German
electronics manufacturer with numerous conventional wave soldering systems in
operation. Preliminary test results show no significant differences in the
quality of solder joints (UNEP Solvents 1989). Boards tested by a large
telecommunications company after inert gas wave soldering found better
solderability (Brox 1989). These preliminary tests showed an order-of-
magnitude decrease in solder defects. In addition, several European and North
American companies will soon be using the inert gas process to wave solder
both through-hole and surface-mounted assemblies. Results are preliminary and
tests are underway to further quantify the process.
Equipment specifically designed for terpene cleaning is necessary because
of material compatibility, combustibility, and odor concerns associated with
terpenes (UNEP Solvents 1989). Cleaning machines using terpene solvents can
be purged with inert gas such as nitrogen for safe operation. This is due to
the low closed-cup flash point (47°C) and potential room temperature
flammability associated with spray mist. A final point to consider is that
-70-
Mexico Case Study, First Edition, June 1990
-------
terpenes are considered volatile organic compounds (VOCs), which contribute to
tropospheric smog. Therefore, adequate containment of terpene mist and vapors
should be provided to control odor and minimize material losses.
Machines designed for the use of flammable solvents are commercially
available; the range of equipment includes cold solvent cleaners with brush
option, hot solvent cleaners with ultrasonic option, vapor-phase batch
cleaners with ultrasonic option, and in-line continuous cleaners with spray
and ultrasonic options (U.S. EPA 1990b). Ancillary equipment for solvent
recycling is also available.
A large European electronics manufacturer currently operates a modified
conveyorized in-line alcohol cleaner. The machine cleans both through-hole
and surface-mounted assemblies. The equipment has an on-line still for
recycling and the system is explosion proof. For a production rate of 100,000
printed circuit boards per year, consumption of isopropanol is reduced to one-
half that of CFC-113, and costs of solvents are reduced by 10 percent (UNEP
Solvents 1989).
b. Metal Cleaning
A number of alternative cleaning processes are also currently
available for metal-cleaning applications. Aqueous cleaning processes include
ultrasonic cleaning, immersion cleaning, and spray cleaning. Common active
ingredients in aqueous cleaning chemical formulations include alkyl benzene
sulphonates and other anionic surfactants. Corrosion inhibitors have been
added to minimize the effect of the cleaners on the metal surface. Hundreds
of aqueous cleaning formulations are commercially available and have been used
successfully in blends and pilot-scale testing for numerous metal-cleaning
applications by the aerospace industry. The equipment differs in design
features and in the optimal equipment included. Options include solution
-71-
Mexico Case Study, First Edition, June 1990
-------
heaters, dryers, automated parts handling equipment, solution filtration, and
solution recycle and treatment equipment (U.S. EPA 1990b).
Ultrasonic cleaning effectively cleans intricate parts and contaminants
that are difficult to remove, such as carbon and buffing compounds.
Ultrasonic machines can clean numerous types and sizes of parts, from small
metal components to large fabricated metal parts. The electrical power
requirements for tanks of several thousand gallon capacity or more become
prohibitively expensive (UNEP Solvents 1989). Ultrasonic equipment tends to
be expensive because of the machinery used. It also uses more electricity
than agitation immersion cleaners of similar size. Aqueous ultrasonic
cleaning equipment can be configured with other cleaning stages featuring
parts and/or fluid agitation, or may be used as a step in a spray machine.
Aqueous immersion cleaning generally combines the cleaning action of a
water-based solution with mechanical cleaning action. Immersion cleaning
consists of four major steps: cleaning, rinsing, drying, and wastewater
treatment. The simplest aqueous immersion cleaning machine configuration
consists of a single wash tank. However, the demands of most cleaning jobs
will require more complex configurations.
Spray cleaning equipment washes the parts by spraying them with an
aqueous cleaner. Depending on the resilience of the surface to be cleaned,
high-velocity sprays can be used to physically displace soils. Spray washers
are of three general types: batch, conveyor, and rotary. While the mechanical
action of spray cleaning equipment is spray action, custom spray machines can
combine spray action with the mechanical action used in immersion equipment.
Batch spray equipment consists of a tank to hold the cleaning solution
and a spray chamber with a door. These machines can be used for maintenance
-72-
Mexico Case Study, First Edition, June 1990
-------
or manufacturing applications, but generally do not clean as thoroughly as
multiple-stage machines.
Conveyorized spray cleaning equipment consists of a tank to hold the
cleaning solution, a spray chamber, and a conveyor to feed the parts.
Conveyorized equipment is usually used in manufacturing applications with high
throughput requirements where parts have flat, even, controlled surfaces. The
advantages of this process are high throughput, automated parts handling, the
ability to clean all sizes of parts from a variety of industries, and a
reduction in the amount of wash- and rinsewater required. Rotary equipment,
similar to Conveyorized equipment except for the manner in which parts are
handled, is also available.
Metal-cleaning applications can also employ no-clean alternatives. A
number of companies are beginning to market water-soluble and emulsifiable
machining and metal-forming lubricants, some of which are non-chlorinated.
Emulsion cleaning is an effective cleaning method for metal parts using
techniques such as ultrasonics or fluid circulation. In emulsion cleaning, a
water-immiscible solvent is dispersed in the form of tiny droplets in the
water phase using surfactants and emulsifiers. Emulsified solvents have a low
vapor pressure, low evaporative loss, low flammability and flashpoint, and
potentially lower solvent purchase cost than CFC-113 (UNEP Solvents 1989).
One promising group of emulsion cleaners are terpenes.
Other products that offer the potential for eliminating the need for
degreasing are "dry" lubricants and thin polymer sheeting that can be peeled
away after the metal-forming process.
4. Sterilization
For non-heat-sensitive products, steam sterilization is widely used
both in hospitals and by manufacturers because it is non-toxic, economical,
-73-
Mezico Case Study, First Edition, June 1990
-------
safe, and well accepted. Greater use of outside contractors who utilize steam
sterilization can lead to further reductions in CFC use in this sector (UNEP
Aerosols 1989).
Off-site, centralized facilities can also be equipped to use radiation
technology to sterilize. Radiation facilities tend to be costly to build and
operate, but in some instances the cost to convert medical products to be
amenable to a radiative sterilization process may be less than the cost to
retrofit existing facilities (UNEP Aerosols 1989).
Pre-sterilized, disposable products are another possible alternative to
enable hospitals to reduce their dependence on CFC-12.
D. Product Substitutes
One of the surest methods to eliminate the use of CFCs and other ozone-
depleting substances is product substitution. Two sectors in Mexico in which
product substitution could occur are foams and aerosols. Subsectors of the
foam and aerosol industries have existing options for product substitution.
1. Foams
Non-CFC-containing product substitutes currently compete in some
subsectors of the foam market, with the possible exception of appliance
insulation. There are alternative materials available that provide low-
density cushioning (natural and synthetic fiber materials), packaging
protection, and insulation value. The availability and viability of product
substitutes is highly dependent upon the category of foam and its specific
application (UNEP Foams 1989).
Foam insulation has high energy efficiency combined with other physical
properties, including excellent fire-test performance, waterproof
characteristics, low density, thin profile, and ease of handling. Other
-74-
Mexico Case Study, First Edition, June 1990
-------
insulating products, such as expanded polystyrene bead board, fiberboard and
gypsum board, perlite board, fiber glass (mineral fiber), and cellular glass,
have some of these properties and have always been available. Non-CFC-
containing products offer some of the properties of laminated foams.
Alternative materials generally have higher thermal conductivity per unit
thickness and will not insulate as efficiently as CFC-blown foam of equal
thickness (UNEP Foams 1989). It is necessary to increase the thickness of the
alternatives to achieve the same insulating values.
In certain flexible slabstock uses, notably the outer layers of furniture
cushions and mattress upholstery backing, fiberfill materials such as
polyester batting and natural latex foams are competitive in the market.
These materials can replace at least some portion of slabstock use,
particularly the supersoft foams. Other products such as paper, cardboard,
and expanded polystyrene can be used in many packaging applications.
A possible future replacement for polyurethane foams used as insulation
in the appliance industry involves the concept of combining 100 percent carbon
dioxide-blown foam with advanced insulation, such as the highly energy-
efficient vacuum panels (UNEP Foams 1989). The successful development of
vacuum panels could provide substantial energy efficiency gains in appliances.
However, considerable research and development is required to determine a
cost-effective way to commercialize this technology and develop long-term
panel reliability.
2. Aerosols
Non-aerosol alternatives can be used to apply or administer products
that currently use CFCs. These include other spray dispensers, such as finger
pumps, trigger pumps, mechanical pressure dispensers, as well as non-spray
-75-
Mexico Case Study, First Edition, June 1990
-------
applicators such as solid sticks, roll-ons, brushes, powders, and others. In
many countries, the switch to non-CFC aerosol products is well underway.
Finger-pump and trigger-pump applicators consist of a bottle and a pump
valve attached to the bottle. Pumps normally provide a wet spray. As air is
admitted to replace the liquid, oxidation may take place. Trigger pumps are
similar in principle to finger pumps, the difference being that they are
filled with a trigger mechanism. Pumps are not suitable when a fine spray is
desired or where contamination by micro-organisms may have harmful effects.
Filling is performed on a liquid filling line and needs no special
machinery. The cost of the package for a pump is highly dependent on the
style of the bottle, degree of construction, order quantity, and local supply
and economic conditions.
Two-compartment aerosols separate the product and propellent inside the
aerosol package by means of a piston, an inner bag containing the product, or
an expanding bag containing propellent. This device can be used with liquids
to provide a propellent-free spray. Although the propellent will eventually
be released to the atmosphere, only small quantities are required and
fluorocarbons, hydrocarbons, or compressed air can be used. The quality of
the spray will be similar to that of a pump, except that the spray will be
continuous, and the device can be used at any angle and will not permit air
ingress (UNEP Aerosols 1989).
Mechanical pressure dispenser systems are also available. These systems
provide spray either by applying manual pressure to the container or by
contraction of an inner bag that was expanded when the product was filled.
The spray is continuous and no propellent is used.
Examples of non-spray dispensers are the solid stick dispenser for
deodorant or antiperspirant and the roll-on, ball-type dispenser. These
-76-
Mexico Case Study, First Edition, June 1990
-------
applications are well established in the market. Solid stick filling
equipment is generally three times the investment cost for a CFC aerosol line.
Packaging costs vary depending on the sophistication of the package. The use
of CFCs in medical products, as explained earlier, is the most difficult to
substitute for. However, new powder inhalant administration methods have been
developed and are already on the market (UNEP Aerosols 1989).
-77-
Mexico Case Study, First Edition, June 1990
-------
V. COST-EFFECTIVE MEASURES FOR REDUCING CONSUMPTION OF OZONE-DEPLETING
SUBSTANCES
Mexico can reduce production and consumption of ozone-depleting
substances as mandated by the Montreal Protocol by implementing a number of
alternative technologies starting in 1999. Contingent on the availability of
international funding, Mexico has the option of accelerating its program to
achieve these reductions.
Early financing of alternative technologies results in a net reduction in
the costs to Mexico of pursuing its CFC reduction program. Two factors
explain this reduction in costs: (1) significant immediate reductions can be
achieved with cost-effective conservation and recycling technologies; and (2)
the amount of CFCs and halons recovered by recycling can be allocated to
service existing equipment and for other essential uses. Early reductions
contribute to a decrease in emissions of ozone-depleting substances, which is
important to stabilize chlorine concentrations in the stratosphere and thus
protect the ozone layer.
A. CPC Reduction Measures for the Short Term16
The Mexican Case Study project team has identified several CFC reduction
measures that can be implemented immediately in Mexico. These measures
satisfy the following criteria: the technology is commercially available, and
the measures are cost effective, environmentally sound, energy efficient, and
represent viable long-term solutions. These short-term measures and their
capital costs are listed below. Total capital costs for all the measures
range from $1.61 million to $6.01 million. The operating costs savings
16 It is important to note that the measures discussed do not represent
the complete list of measures that could be taken to achieve long-term
reductions.
-79-
Mexico Case Study, First Edition, June 1990
-------
resulting from the adoption of these measures are not included in the cost
estimates.
1. Recycle CFC-113 from Cleaning Applications in
Maquiladoras: $ 300,000
2. Recycle CFC Refrigerants: $ 180,000
3. Recycle CFC-12 from Cars: $ 260,000 - 340,000
4. Substitute Water for CFC-11 in Refrigerators: $ 600,000 - 900,000
5. Reduce CFC-12 Charge in Domestic Refrigerators: $ 150,000
6. Substitute Aqueous Cleaning for CFC-113 and
NCF Solvents: $ 30,000 - 3,900,000
7. Substitute Compressed Oases for CFC-12 Aerosols: S 90.000 - 240.000
Total: $1,610,000 - 6,010,000
1. Recycle CFC-113 from Cleaning Applications in Macruiladoras
The largest users of CFC-113 for electronics and metal cleaning are
firms located near the U.S./Mexico border, known as maquiladoras. A central
recycling facility could reprocess CFC-113 used by these firms to near-virgin
specifications. Industry can continue to use virgin CFC for the most critical
cleaning operations that continue to depend on CFC and use the recycled
product for less critical electronic and metal cleaning.
CFC-113 users are paid 20 percent of the virgin price of CFC to return
the contaminated solvent. Recycled solvent is sold to users for 80 percent of
the virgin price. Solvent users save disposal costs.
Allied-Signal operates a CFC-113 recycling facility in San Diego and has
offered technical support for Mexico/U.S. border recycling.
• Cost; $300,000 for equipment cost and installation.
1 facility at $300,000.
2. Recycle CFC Refrigerants
High volumes of CFC-12 and CFC-11 are emitted from refrigeration
equipment due to improper maintenance practices. Usually a large portion of
-80-
Mexico Case Study, First Edition, June 1990
-------
the refrigerant charge is vented to conduct repair work in particular
components of the system (e.g., the compressor, condenser, etc.). Portable
CFC-11 recycling units that can be fitted to the refrigeration systems to
recover the used refrigerant have recently been marketed. In Mexico, the
largest consumption of CFC-11 for the servicing chillers is located in the
warmer Northern states of Nuevo Leon, Chihuahua, Sonora, and Baja California.
Portable CFC-11 recycling units are available for $6,000. This machine
is capable of recycling the refrigerant while the chiller is in operation.
The system can achieve a 65 percent emissions reduction. Thirty authorized
service firms would be provided, one for each recycling machine. CFC
emissions and the associated refrigerant costs would be reduced. The service
firms would pay for an annual training program provided by the supplier of the
recycling units.
• Cost; 30 recycling machines @ $6,000 = $180,000
3. Recycle CFC-12 from Cars
Recycling is cost-effective and is supported by automobile
manufacturers worldwide and many automobile owners. Recycling machines could
be provided to dealerships and specialized automobile air conditioner repair
shops.
15-25 dealerships and shops in Monterrey
10-20 dealerships and shops in Tijuana
10 dealerships in Mexico City
20 dealerships in four major tourist cities
55-75 Total
@ $4000 each = $220,000 to $300,000 plus $40,000 in training.
• Cost; 55-75 recycling units with trained personnel for $260,000-
$340,000
-81-
Mezico Case Study, First Edition, June 1990
-------
4. Substitute Water-Blown Foam for CFC-11-Blown Foam in
Refrigerators
Refrigerator manufacturers in all of Europe and in other countries
including Yugoslavia have substituted water-blown foam for CFC-11-blown foam
in refrigerators and freezers resulting in a 30-50 percent reduction in CFC-11
use. There are minimal capital investment costs. For a household
refrigerator manufacturing plant in Mexico, engineering and start-up costs
could range from $200,000 to $300,000. Costs could be higher if there is a
reduction in energy efficiency; with 30 percent substitution there is no
impact on efficiency; with 50 percent substitution energy efficiency would
decrease by 3-5 percent.
• Cost: 3 factories @ $200,000-$300,000 = $600,000 - $900,000
5. Reduce CFC-12 Charge in Domestic Refrigerators
Evaporator and condenser tubing can be decreased in diameter and
increased in length without sacrificing the refrigerator's capacity or energy
efficiency and using only half the amount of CFC-12. The costs of conversion
would entail capital investment costs of $50,000 (mostly engineering) and cost
savings associated with the reduced use of CFC-12. There would be a 50
percent reduction in emissions.
• Cost; 3 factories @ $50,000 = $150,000.
6. Substitute Aqueous cleaning for CFC-113 and MCF Solvents
Water is an excellent solvent for removing ionic contaminants and
water-soluble fluxes. Typically, aqueous cleaning systems consist of a wash,
rinse, and a dry stage. It is highly effective when used with high-pressure
and/or high-volume sprays normally used in batch cleaners and in-line
conveyors. Aqueous cleaning has many cost advantages: no distillation
-82-
Mexico Case Study, First Edition, June 1990
-------
equipment is required to recycle the solvent; there are no costs to dispose of
spent solvents; pre-treatment is not required.
With this conversion, the capital investment costs would range from
$10,000 to $130,000 per machine, and operating costs would be $1,800 to
$25,000. The technology is widely available. The conversion would result in
100 percent reduction in the use of ozone-depleting substances.
• Cost; 30 aqueous cleaning machines * $30,000 to $3,900,000
7. Substitute Compressed Gases for CFC-12 Aerosols
This technology replaces CFC-12 with high vapor pressure gases such
as air, carbon dioxide, or nitrogen. The use of these gases requires that
costs be incurred to retrofit storage and aerosol filling equipment to account
for the higher pressure.
The costs of conversion to this CFC substitute would include capital
investment costs of $45,000 to $120,000, depending on plant size and operating
costs, to reflect annual savings similar to hydrocarbon propellents. Using
this substitute would result in a 100 percent reduction in CFC-12 use.
• Cost; Two plants converted = $90,000 to $240,000.
B. CFC Reduction Measures for the Medium Term
In addition to the short-term measures suggested by the Mexican experts
on the case study team, there are medium-term proposals that will also provide
significant reductions in the use of ozone-depleting substances. The total
investment for these projects will be estimated as more data on specific
manufacturing plants in Mexico becomes available.
-83-
Mexico Case Study, First Edition, June 1990
-------
1. Substitute HCFC-22/HCPC-142b for CPC-12 in Polvurethane Foam
Packaging
HCFC-22 is commercially available, non-flammable, has low toxicity
and a low Ozone-Depleting Potential (OOP). It shows minimal effect on thermal
performance of the foam and equivalent physical properties. Since HCFC-22 is
a gas at room temperature, changes in storage facilities and the foaming
equipment are necessary and costs would be incurred.
The cost of conversion per plant entails a capital investment of $50,000
to $150,000, and operating costs are equivalent to those when CFC-12 is used.
Average capital investment is $75,000 higher per line for smaller firms. With
this conversion, there would be a 100 percent reduction in ozone-depleting
substances.
2. Substitute CFC-11 in Polvurethane Flexible Foams (Molded and
Slabstockl
Option 1 - Water Blowing
Increasing the amount of water in the reaction to produce extremely
low-density foams potentially reduces 50 percent of the CFC-11 used. The cost
of conversion would include no capital investment costs and up to a 5 percent
increase in operating costs due to changes in chemical use.
Option 2 - New Polyol
Polyol technology can reduce CFC-11 by about 50 percent of the
current level of CFC-11 used in flexible molded foam. Using polyols will add
about 15 percent to the costs of producing the foam and requires a capital
investment of $50,000 per plant.
-84-
Mexico Case Study, First Edition, June 1990
-------
3. Substitute CFC-142b Alone or HCFC-22/142b for CFC-11
Refrigeration Insulation
Plant conversions are already taking place worldwide. Using HCFC-
142b alone, the cost of conversion would entail capital investment resulting
from the possible need for increased ventilation due to flammability of HCFC-
142b. This would not be necessary if HCFC-142b were blended with HCFC-22
because the mixture would at a certain proportion be non-flammable. There
would be a 10 percent increase in operating costs.
4. Substitute Increased Water Blowing for Polyurethane Foam
Insulation for Refrigerators
Increases in the amount of water in the reaction to produce
extremely low-density foams could result in a 30 to 50 percent reduction in
CFC-11. An increase in the amount of water used can add up to 10 percent to
annual operating costs. With respect to conversion costs, there would be a
capital investment of approximately $20,000 per plant. With 30 percent
substitution, there would be no impact on energy efficiency. With 50 percent
substitution, there would possibly be an increase of up to 10 percent in
energy costs.
-85-
Meiico Case Study, First Edition, June 1990
-------
VI. COSTS OF COMPLYING WITH THE MONTREAL PROTOCOL
This chapter describes the analytical methods used to estimate the costs
to Mexico of phasing out production and importation of ozone-depleting
substances (Section A) and presents the results of this cost study (Section
B). Many of the alternative technologies are commercially available and their
costs are based on published data. Technologies such as aqueous cleaning
substitute for CFC-113 cleaning, and CFC recycling systems reduce CFC loss
during servicing of mobile air conditioners and commercial refrigeration
equipment. The costs are less certain for the emerging technologies that will
be available in the next two or three years such as the ternary blend for
refrigeration applications, HFC-134a for mobile air conditioners, and HCFC-
141b/HCFC-123 blend for foam-blowing applications. The costs computed in this
analysis are, therefore, a best estimate of the total costs to Mexico of
phasing out consumption of ozone-depleting substances.
A. Methodology to Compute Incremental Costs
1. Economic Framework
This section describes the economic framework supporting this study.
The analysis focuses on estimating the net costs of phasing out the use of the
controlled compounds17. An important step in estimating these costs is
assessing the costs borne by industries currently consuming the controlled
substances.
17 For the remainder of this discussion, "controlled compounds" refers to
the substances used in Mexico that are controlled by the current Montreal
Protocol (Group I: CFC-11, CFC-12, CFC-113, CFC-114, and CFC-115; Group II:
Halon-1201, Halon-1301, and Halon-2402).
-87-
Mezico Case Study, First Edition, June 1990
-------
A detailed description of the underlying economic framework used for this
analysis is included in the UNEP Economic Assessment of the Montreal
Protocol18. Costs are based on the changes in consumer welfare and industry
profits (consumer and producer surpluses) caused by proposed reductions in the
availability of the controlled compounds. This approach characterizes the
markets that use these compounds and estimates the amount of these compounds
that each industry (or end use) would demand as CFC availability is reduced.
The costs of alternative technologies that industry adopts in response to
increased CFC prices define the derived demand schedules for these compounds.
A computerized "Cost Model" was developed to estimate the timing and costs of
reductions in the consumption of controlled substances.
2. Methodology Used to Evaluate the Adoption of Controls
This section describes the operation of the Cost Model which
simulates timing of the adoption of alternative technologies and estimates the
total costs of reducing the use of ozone-depleting compounds.
The operation of the Cost Model requires the following input data:
• baseline chemical demand: the estimated OOP-weighted consumption of
the controlled CFCs and halons if no controls were imposed;
• reduction schedule: the timing and amount of reduction is over time
(see Exhibit VI-1);
• distribution of consumption by end use;
• market penetration and reduction in consumption of ozone-depleting
compounds achieved by each alternative technology; and
• costs of each alternative technology.
18 United Nations Environment Programme. Economic Panel Report.
Montreal Protocol on Substances that Deplete the Ozone Layer. July 1989.
Economic Assessment Panel.
-88-
Mexico Case Study, First Edition, June 1990
-------
Each of these input data sets is discussed below. The baseline chemical
demand is a projection of the amount of ozone-depleting compounds (in
kilograms) that would be used in Mexico if no controls were imposed. The
consumption growth rate of 2.2 percent described in Chapter I is used to
compute baseline chemical demand.
The reduction schedule defines the target reduction of chemical
consumption with respect to the base year (1996) over the period of analysis.
The reduction schedule adopted for this analysis follows the reduction
schedule specified in the Montreal Protocol followed by a phase-out by the
year 2010. According to the current Montreal Protocol, the reduction schedule
for CFCs for a country with less than 0.3 kilograms of consumption per capita
is the following:
• freeze CFC consumption in 1999 at 1996 consumption levels;
• reduce CFC consumption by 20 percent of the 1996 levels by the year
2003; and
• reduce CFC consumption by an additional 30 percent of the 1996
levels by the year 2008.
For the purpose of this analysis, it is assumed that CFC consumption is
further reduced by 50 percent of the 1996 levels by the year 2010 (i.e., a
phase-out is achieved in year 2010). For halons the Montreal Protocol calls
for a freeze of halon consumption in 2003 at 1999 levels. At least a 50
percent reduction in the use of Halon-1211 and Halon-1301 can be achieved at
zero net cost by using existing dry and foam chemical alternatives and by
eliminating unnecessary emissions from testing, training, and accidental
discharges19.
19 The full costs associated with halon reductions are not included in
this edition of the report.
-89-
Mezico Case Study, First Edition, June 1990
-------
The distribution of CFC and halon consumption by end use La presented in
Exhibit III-l. Refrigeration consumes approximately 59.0 percent of all CFC
consumption, followed by foams, 20.0 percent; aerosols, 12.2 percent;
solvents, 4.9 percent; and sterilization, 3.2 percent. The distribution of
CFC consumption by end use is important because it defines the level of
reduction that can be achieved by the various industries that use CFCs.
The market penetration and reduction in the consumption of ozone-
depleting compounds achieved by each alternative technology determines the
level of reduction achievable in a given year. The market penetration rate
and reduction is defined for each end use separately and takes into account
the following factors:
• starting date; the year in which a technology is first available
for adoption;
• penetration timei the amount of time for a control option to be
evaluated by industry and adopted by companies for whom it would be
cost-effective;
• use reduction; the amount of CFC use that can be reduced relative
to use in the base year by implementing a control;
• applicability to new and/or existing equipment; whether a
technology can be applied to both new and existing equipment or only
to new equipment; and
• market penetration; the portion of the market that is captured by a
control option in a given year.
Exhibit VI-1 presents the data corresponding to the first four factors
for each of the control options considered. For example, refrigerant
recycling for commercial and industrial refrigeration is simulated to be
applied in 1999, takes 3 years to reach its maximum market penetration20, and
is applicable to new and existing equipment using CFCs. Exhibit VI-1 shows
20 The market here refers to the market for particular end-uses (e.g.,
commercial/industrial refrigeration, household refrigerators, etc.).
-90-
Mexico Case Study, First Edition, June 1990
-------
the use reduction. For example, if refrigerant recycling is adopted, CFC use
is reduced by 50 percent for the part of the commercial/industrial market that
implements this technology. The market penetration for each technology
varies over the simulation period. Initially, conservation and recycling
technologies are available in the short term and take a large proportion of
the market; subsequently, alternative chemicals are adopted as greater
reductions are required. To calculate market penetration, a distinction is
made between technologies that cannot be applied to existing CFC-using
equipment and technologies that can be used in existing CFC-using equipment.
For example, before 1996, there is an existing stock of equipment that grows
as new CFC-using equipment is purchased every year. Some controls, such as
alternative HFC and HCFC refrigerants need new equipment specifically designed
for these substitutes, and thus, these options can only compete in the
"replacement" market. These controls are indicated in Exhibit VI-1 with "N",
describing their applicability to new equipment only21.
3. Types of Costs Considered
The costs considered in this analysis include the costs to users of
CFCs and halons of reducing consumption of these ozone-depleting chemicals.
Users of CFCs are assumed to adopt alternative technologies that may cost more
or less than it would cost to continue using the CFCs. The costs of each
alternative technology considered in this analysis includes the incremental
capital and operating costs (including chemical substitutes and energy costs),
21 To achieve a phase-out without retiring CFC-using equipment
prematurely requires that CFCs be available for use after 2010. For example,
CFCs would be necessary for servicing and maintaining refrigeration equipment
that has long, useful lifetimes. Production of CFCs can be phased out by the
year 2010 and consumption of CFCs can occur after 2010 if CFCs are available
from continuing recycling or from an accumulated pool of recycled CFCs.
Consumption of CFCs will decrease after 2010 as alternative controls that
eliminate CFC use penetrate the market as CFC-using equipment retires.
-91-
Mezico Case Study, First Edition, June 1990
-------
crt
_i
S
§
^
S
at
UJ
Ik
U
u
Ik
o
5
k.
UJ
at
S
u
UJ
Ul
1
1-
2
X
X
UJ
o 2*"
•if
lii
s
11
•g
Is
2 1 *
g'xtj
ID X £
* 0-
||
C.
§
u
0)
3
Ul
u
.5 » » , .3 « .§ .
Om O O O OlA O IA O IA O
•*IO ft Kt m -*K> -»M -*KI K»
CM«- IM CM IM (M(M CM«- CM«- (M
1
L.
a
2 S
^ £
K a * u s
*•«-«» u. «-
i i U X i
o o to ^ o
u. ik 10 "Q 0* ^ u-
u u u c a c u
K Z » U V X
a J3 j3 u a caj; a) a J3
!Q.£ 5 5 S 55 x° x-S 3
v-_ < »- »- v ro— t. v t-— T-
iu i i <- «-u go go >
u >> u u Q. i >• c 5 c >. u
u. u u. ik f u u i-'O u o ik
(jo> U U O U.OI 0)0) 014) U
z oc x z u acoc i-oe t-oc x
S S
2 2
So
_a
'Z Z
<•- •»-
(U Ik
•^ O OC *^
— C u- f- — C
BO — TO B 0
.^. •*> 41 (A < ^- •*- -^
L. k< — -. O U *•
j^j (Q _Q o 41 _j~ j^ o
IS5slllS
»- CM
i ,
U U
u u
- "- -
10 m m
§o o
o o
o o
CM CM IM
1
L.
f |
CM 0) (J
o p <-
z S m
IM 0) V
IM V •—
1 <- u
" 1 *
U O i-
z u o.
i g
u. ••-
s » a
ssS
Ji O L.
o t- u
O. < l/>
-I
«-
•*M
•
^5 O^
f\J«-
g
u a
iu
S-k!
i
U
U
-!
gg
oin
•*K1
«M«-
vr?
(M —
«— _^
iSL
sa
z ae
g
L.
.?
H-
0)
oe
"a
L.
O
~a
L.
4-*
1
,,
«~
1
U
u
-92-
Hexico Case Study, First Edition, Jun* 1990
-------
with respect to a base case and one-time retrofit costs. The base case
represents the costs that users would incur if they continued using CFCs. In
essence, the analysis accounts for net incremental annualized costs or savings
to the users for using alternative non-CFC technologies. The annualized costs
are expressed in terms of dollars per kilogram of CFC use avoided by dividing
the annualized cost estimate by the number of kilograms of CFC use that are
avoided by implementing the control.
The dollar per kilogram costs used for Mexico were derived by adjusting
the U.S. costs per kilogram estimates upwards.22 Appendix C presents the
dollar per kilogram calculations for the U.S. These estimates are based on
information provided by international industry sources and experts on
individual technologies.
It should be noted that producers of the new alternative chemicals (e.g.,
HCFC-123, HCFC-141b) and manufacturers of alternative technologies in Mexico
will also incur costs of plant conversion, retooling, etc. This analysis
assumes that these costs are reflected in the prices of the alternative
chemicals and technologies paid by users, and thus, the potentially higher
costs to producers are reflected in higher costs to users. It must be
emphasized that the costs for each technology are estimates of average costs.
Actual cost evaluations for individual situations will be based on specific
needs and constraints.
4. Discount Rate
Discounted cash flow analysis is a standard method of financial
analysis used to analyze alternative investment projects with different
cash—flow characteristics. This method is used to annualize the costs of
22As explained on the next page, four scenarios were used for cost
calculations. The magnitude of the adjustment is stated for each scenario.
-93-
Mexico Case Study, First Edition, June 1990
-------
alternative technologies based on capital and operating costs. The useful
lifetime of typical equipment is the period over which costs are discounted.
A discount rate reflecting the opportunity cost of capital is needed to bring
future cash flows to comparable present values. Although, the costs of
capital vary from country to country, this analysis assumes that a discount
rate of 2 percent reflects the "cost of capital"23.
The costs of each alternative technology are expressed in terms of
dollars per kilogram of CFC avoided, and are computed by dividing the
annualized cost estimate for each control by the amount by which CFC use is
reduced by implementing the control.
In summary, input data for the model consists of (1) baseline CFC demand
(in million kilograms), (2) a series of alternative technologies to reduce CFC
use, (3) the level of total reduction achievable by alternative technologies,
and (4) the costs per kilogram of CFC reduced by each technology.
B. Cost Results
The costs to Mexico of phasing out CFC production and importation are
calculated under four scenarios:
Scenario 1: Likely Growth Rate - Likely Cost. CFC use grows at an
annual rate of 2.2 percent in the absence of Protocol restrictions;
the costs of implementing the substitute technologies and using
alternative chemicals is 5 percent higher in Mexico as compared to
the U.S.
Scenario 2: Likely Growth Rate - High Cost. CFC use grows at an
annual rate of 2.2 percent in the absence of Protocol restrictions;
the costs of implementing the substitute technologies and using
23 The capital likely to be transferred to Mexico for implementation of
the Montreal Protocol will be provided by an international fund made up of
contributions by individual countries. The cost of capital assumed here is
representative of the social cost of capital in the U.S. This discount rate
can be changed to test the sensitivity of results to various discount rates.
-94-
Mezico Case Study, First Edition, June 1990
-------
alternative chemicals is 30 percent higher in Mexico compared to the
U.S.
Scenario 3: High Growth Rate - Likely Cost. CFG use grows at an
annual rate of 3.3 percent (50 percent higher than the Mexican
industry forecast) in the absence of Protocol restrictions; the
costs of implementing the substitute technologies and using
alternative chemicals is 5 percent higher in Mexico compared to the
U.S.
Scenario 4t High Growth Rate - High Cost. CFC use grows at an
annual rate of 3.3 percent (50 percent higher than the Mexican
industry forecast) in the absence of Protocol restrictions; the
costs of implementing the substitute technologies and using
alternative chemicals is 30 percent higher in Mexico compared to the
U.S.
The costs of implementing CFC-reduction options could be higher in Mexico
than in the United States. Associated costs would include the following:
- transportation costs for imported equipment;
- maintenance and servicing costs for the new technologies;
- incremental infrastructure development costs;
- costs due to exchange rate variations;
- technology transfer costs; and
- costs due to the absence of scale economies.
The estimated costs to Mexico for phasing out the production and
importation of CFCs ranges from $64.4 million to $118.7 million. Exhibit VI-2
presents the distribution of costs by end use for each scenario for the period
1990-2010.
1• Insulation Foam
CFC-11 and CFC-12 can be replaced with an alternative blowing agent
composed of a mixture of HCFC-141b and HCFC-123 in insulation applications.
The alternative blowing agent mixture is estimated to cost $3.80 per kilogram.
-95-
Mexico Case Study, First Edition, June 1990
-------
* t! N
o||
n O O
C r; .fit
v *JA tf
W pg tl)
CO 5 «>
k <•
OgO
u " °
B .- £
« «•
CM 5 *>
u •
0 (3 O
U*
IB « 3 -<
a 2 3 ^
u M -1
i $ *>
flB «-H Q M
O O rt O
gi HI
M ^,
gl
s!
0| i
§_
2
S
«H
N
1
£!
K
05
H
9
•
i
•a
B
Q
1*
O
Nf> NO
•H CM
tH *>
i-t
O CO
O CM
ON *
CO ON
CO •*
NO CO
t-t *H
•H CO
m CM
coS5
1 O
O X
O CO
B
0
U
in
3
•a
C
•-i
,
bi
U
,.
o
ON
r-l
J
tn
a*
•*•
en
«H
N
Ov
0
1-4
01
rH
I
,lb/HCFC
t-l
1
U
CM
§
£
B
O
•H
43
10
rH
3
C
h-t
^
*O
0
r-l
(O
CO
m
^
o
vH
>O
m
CM
i
ilb/HCFC
*-*
as
o
hi
CO
A
X
o
-1
Pu
O «\O OO ONCM CO <-l 0 ON CM O COCO ON
O ON O OO COO •-" O O CM COO -" O NO
O m<« oo ON-4* r» m o « oo «-io co
CM i-f r-l
O OCO OO CMO O -T O NO COO IOCO CO
O COCM OO fHrO CO O O •* r^O ONO CO
O -»CO OO -TrH in -» O CO OO OO m
CNl rt ON
O COON OO OON CM CO O CM OO 4-CO r*
o mr^ oo
o CM CM oo NO
9 i •«• CO h« B
tf> u *-* to O -^
a T3 « T3 U. 1 « X C
o c oo c uuu a
0 M co a: u. x «
•O -H 10 ^ \ U T) M ^
» «o a 00
0-4 ^4 -rt
•H M O B U
4J 0 W O U
•r) tO 0 1-10
B M § § S o 5
OM o o 3 B0 O
U 0OU.O O-HU
05 -^ [t. -rt W ^
14 -1C 4J ^
•Ht? (0 OOO 0t) 0
< ^ -4 ~4CB>NB -rt
O0 X *> 0tOO^ 4J
O-*4 w D 3J^OM0 3
00 0 E C<004J0 B
<£ X t-l l-4Q4
-------
The costs of this alternative would range from $15.7 million to $26.3 for the
period 1990 to 2010.24
2. Flexible Foam
CFC-11 in flexible foam packaging can be replaced with a mixture of
HCFC-141b and HCFC-123 as alternative blowing agent. The changes required to
implement this technology are estimated to cost between $6.10 million and
$10.66 million for the period 1990-2010.
3. Packaging foam
CFC-12 used in packaging foam can be substituted by a mixture of
HCFC-22 (commercially available in Mexico) and HCFC-142b. The total costs to
Mexico for this technology are between $3.33 million and $5.01 million for
1990-2010.
4. Con"nercial/Industrial Refrigeration
As shown in Exhibit Vl-2, costs of reducing CFC use in
commercial/industrial refrigeration applications using recycling technologies
will cost Mexico $3.49 million, $11.93 million, and $30 thousand for CFC-11,
CFC-12, and CFC-114, respectively. The use of CFC-11, CFC-12, and CFC-114 in
commercial/industrial refrigeration can be phased out using HCFC-123, a
ternary blend, and HCFC-124. The costs of each of these options to Mexico
will range between $5.11 million and $11.15 million, $13.24 million and $29.89
million, and $0.76 million and $1.18 million, respectively, for the period
1990-2010.
24 This is calculated by adding the costs associated with insulation foam
produced using CFC-11 and CFC-12 (see Exhibit VI-2). A similar exercise is
performed for each subsequent application sector.
-97-
Mexico Case Study, First Edition, June 1990
-------
5. Household Refrigeration
As shown in Exhibit VI-2, alternative technologies to manufacture
household refrigerators using 50 percent of the CFC refrigerant charge and the
use of a ternary blend instead of CFC-12 result in negligible costs. The
costs associated with these alternative technologies are offset by the savings
as explained below.
Refrigerant charge can be reduced in a refrigerator through the use of
evaporator and condenser tubing that is smaller in diameter and longer, but
does not sacrifice refrigeration characteristics and energy efficiency.
Capital costs to retrofit refrigeration manufacturing lines to accommodate the
use of reduced CFC-12 charges are estimated to be $50,000 for a plant
producing 400,000 units. Reducing CFC-12 charge by 50 percent saves $97,800
(assuming CFC-12 = $1.63/kg and average quantity of CFC used over lifetime is
0.3 kg). Thus, the operating savings offset capital investment.
The use of a ternary blend of alternative refrigerant (40% HCFC-22, 40%
HFC-152a, and 20% HCFC-124) does not require changes in refrigerator
manufacturing equipment to accommodate the compressor and other system
components because of similar thermodynamics and chemical compatibility
characteristics of the ternary blend and CFC-12. The ternary blend is assumed
to cost $5.60/kg. The use of the ternary blend in household refrigeration
results in an annual decrease in energy consumption of 3 percent. Energy
savings over the useful life of the refrigerator (approximately 20 years)
offset the increased ternary blend refrigerant costs.
6. Mobile Air Conditioning
Mobile air conditioning systems leak CFC-12 during normal operation.
When excess leakage occurs, the system is brought to a service station. The
current practice is to completely vent the refrigerant left in the system
-98-
Mexico Case Study, First Edition, June 1990
-------
before the unit is repaired. The use of recycling units can recover 90
percent of the refrigerant charge. This technology and the use of HFC-134a is
estimated to cost between $4.29 million and 10.0 million for 1990-2010.
7. Solvents
Aqueous cleaning is a commercially available technology currently
used to replace CFC-113 used for metal and electronics cleaning. This
technology replaces the use of CFC-113 with water and detergent. Aqueous
cleaning is assumed to be used in new equipment and costs more than CFC-113
equipment.
The use of engineering controls and better housekeeping practices are
feasible alternatives to reduce CFC-113 use and emissions. The costs of the
engineering controls are recovered in the first year due to the high solvent
recovery rate and, therefore, the use of this technology will result in cost
savings. For the purposes of this analysis this technology is considered as a
zero-cost option. The costs associated with this reduction are between $0.64
million and $ 0.82 million for the period 1990-2010.
8. Aerosols
Although the use of CFCs in aerosol applications in Mexico is small,
commercially available technologies may further reduce current use. This
analysis assumes the use of compressed gases such as carbon dioxide or air as
the alternative propellants. New prope11ant storage tanks and retrofitting
existing filling equipment is required to implement this technology. Capital
investment for a typical aerosols plant is $45,000 to $120,000. Compressed
carbon dioxide is estimated to cost $l/kg. Savings in operating costs are
assumed to offset capital expenditure.
-99-
Mexico Case Study, First Edition, June 1990
-------
9. Sterilization
The costs to Mexico to phase out its CFC use in commercial and
hospital sterilization is estimated to be between $2.76 million and $4.29
million for the period 1990-2010. These cost estimates are based on the use
of an HCFC-based proprietary blend instead of CFC-12.
-100-
Mexico Case Study, First Edition, June 1990
-------
REFERENCES
Brox. 1989. Personal communication between Sudhakar Keaavan, ICF
Incorporated and Murray Brox, Northern Telecom Limited. July 1989.
Carrier. 1990. Carrier Corporation. Brochure on refrigerant management
systems.
Chera Systems. 1989. Chem Systems International Ltd. Methyl Chloroform
Markets in Venezuela and Mexico.
FPI. 1988. "Fully Halogenated CFC Free Food Packaging." Presentation to the
United Nations Environment Programme Seminar on Substitutes and Alternatives
to CFCs and Halons at The Hague, the Netherlands, on October 20, 1988.
Hoffman, John S., and Kwartin, Robert. 1990 (January/February). "Re-
Inventing the Refrigerator." EPA Journal. Vol. 16, No. 1, January/February
1990.
Institute Mexicano del Poliuretano. 1990. Personal communication between
Laura Tlaiye, ICF Incorporated, and F. Calderon, Institute Mexicano del
Poliuretano. February 1990.
NASA. 1988. Present State of Knowledge of the Upper Atmosphere; An
Assessment Report. NASA Reference Publication 1208. August 1988.
Omega. 1989. Omega Recovery Services Corp. "Operating Experiences of a
Refrigerant Recovery Services Company."
Refrigerant Reclamation Systems. 1989. Brochure on reclamation systems.
SEDUE. 1990. Personal communication between Laura Tlaiye, ICF Incorporated,
and Jorge Corona. February 1990.
UNEP Aerosols. 1989. United Nations Environment Programme. Technical
Progress on Protecting the Ozone Layer; Aerosols. SterHants, and
Miscellaneous Uses of CFCs. June 30, 1989.
UNEP Foams. 1989. United Nations Environment Program. Technical Progress on
Protecting the Ozone Layer; Flexible and Rigid Foams Technical Options Report.
June 30, 1989.
UNEP Refrigeration. 1989. United Nations Environment Programme. Technical
Progress on Protecting the Ozone Layer; Refrigeration. Air Conditioning and
Heat Pumps Technical Options Report. July 30, 1989.
UNEP Solvents. 1989. United Nations Environment Programme. Technical
Progress on Protecting the Ozone Layer; Electronics. Deareasing and Dry
Cleaning Solvents Technical Options Report. June 30, 1989.
-101-
Mezico Case Study, First Edition, June 1990
-------
UNEP Technology. 1989. United Nations Environment Programme. Technical
Progress on Protecting the Ozone Layer; Report of the Technology Review
Panel. June 30, 1989.
Unifoam. 1988. Unifoam A6. Unifoam Bulletin 19: "Production of Freon Blown
Foam in Combination with Freon Recovery on an E-MAX Installation." January
12, 1988.
U.S. EPA. 1988. U.S. Environmental Protection Agency. Future Concentrations
of Stratospheric Chlorine and Bromine. August 1988.
U.S. EPA. 1990a. U.S. Environmental Protection Agency. "Advance of Proposed
Rulemaking: Protection of Stratospheric Ozone." 40 CFR Part 82. May 1, 1990.
U.S. EPA. 1990b. U.S. Environmental Protection Agency. Manual of Practices
to Reduce and Eliminate CFC-113 Use in the Electronics Industry. January
1990.
-102-
M«xico Case Study, First Edition, June 1990
-------
APPENDIX A
INTERNATIONAL CONFERENCE ON HATCHING EXISTING AND EMERGING COST-EFFECTIVE
CFC AND HALON ALTERNATIVES TO THE NEEDS OF MEXICO
Conference Program
Opening Remarks by Mr. Patricio Chirinos Calero, Mexican Secretary
for Urban Development and Ecology
Closing Remarks by Mr. John D. Negroponte, U.S. Ambassador to Mexico
-103-
Mexico Cas* Study, First Edition, June 1990
-------
-104-
Mexico Case Study, First Edition, June 1990
-------
o
gee
zSOp
ill 111 IL £
o
o
o
tt I
If
2-=
II
•o
."5
1 Mi
5 >»•
g «
ii!
w
»1*
<
DC
O
O
DC
O.
I
oc
UI
B
§
5s**&* iH -s
Sjl|p5!s fisf -
IB
°S
^|ff»
Riis^
UJ
0
-------
CO
CM
o
DC
l
8
6
IA
8
i
..r.
M>
3
CO
S!
o
QC
3
1"
(O
QC
•B-
i
o»
_c
c
J
Q.
O
2!
S
• 85
O _O
8 8
s1"
— "S
8
I
in
6
8
8
CJ
in
»
cti
i
8
a
-------
Elte
z u. o
^oo
tfco111
r o
(5
O
1C
£L
CO
LU
z
LU
O
UJ
O
LJJ
-------
o
N
OC
UJ
O
CO
CM
UJ
OC
UJ
r
5
-S
i
o>
o
S
8
fi
8
8
8
o
N
OC
0)
•o
CM
JUEVES
-1 S
at
(0
Lie. Patricio Chirinos
Secretario de Ecologf
Introd
enida
m
« = c
. a"- <
^ *• O >. e
"S* i 8 |
i * i j| i
s fl 11 *
usa
i
8
1
i
1
i
.2
s
(0
8 O
* j i c
>§?€.!
? o 5 S
2 5= S g
O
rod
Te
^ o> »
Q | *
. OC .
? s
i i
in
6"
§
2 §
*^ c\i
in
cvi
CM
8
8
n
-------
OPENING REMARKS BY THE MEXICAN SECRETARY FOR URBAN DEVELOPMENT AND ECOLOGY,
MR. PATRICIO CHIRINOS CALERO
AT THE INTERNATIONAL CONFERENCE ON MATCHING EXISTING
AND EMERGING COST-EFFECTIVE CFC AND HALON ALTERNATIVES
TO THE NEEDS OF MEXICO
Sponsored by
Secretaria de Ecologia y Desarrollo Urbano
Camara Nacional de la Industrie de la Transformacidn
United States Environmental Protection Agency
-109-
Mexico Case Study, First Edition, June 1990
-------
Senor licenciado Roberto Sanchez de la Vara,
Preaidente de CANACINTRA;
Senor Doctor Stephen Andersen,
Director de la Secci6n de Tecnologia y Economia,
Divisi6n de Cambio Global de la EPA;
Senores participantes,
Senoras y senores:
La Conferencia que hoy ustedea inician tiene una importancia fundamental
para la polltica ambiental de Mexico. Ea muestra de los beneficios que trae
consigo la cooperaci6n y el intercambio entre palses para enfrentar los
problemas globales mas criticos, como es el agotamiento de la capa atmosferica
de ozono, el efecto invernadero, la destruccidn de los bosques y la
contaminaci6n de los mares. Es tambien una muestra de la cooperaci6n entre
autoridadea, cientificos e industriales.
S6 que resulta dificil pensar y aceptar que nuestra actividad puede ser
factor de peligro o de garantia para conservar la vida sobre la Tierra. No
obstante, los avances cientificos y la realidad misma han venido a demostrar
que en la medida en que se adelgaza la capa de ozono, la Tierra recibe una
mayor radiacidn ultravioleta, la cual propicia el debilitamiento del sistema
inmunoldgico de los seres humanos, la aparicidn de cancer en la piel y danos
en la vista. Con una mayor penetracidn de radiaciones ultravioleta se
reduciran el rendimiento agricola y la riqueza de la vida animal. Inclusive
aumentara la contaminaci6n del aire por ozono y otros contaminantes.
El Protocolo de Montreal se suscribi6 a partir de la existencia de una
perforacidn en la capa de ozono, localizada en la Antartida, que segun
estimaciones cubre aproximadamente el 10 por ciento del hemisferio sur.
Inclusive en los ultimos dias cientificos de diversas partes del mundo han
llamado la atencidn sobre una segunda perforacidn en la regi6n del Artico, en
el Polo Norte. Sin embargo, lo mis preocupante son las afirmaciones de que la
perdida de ozono se da no unicamente en los polos sino en todo el mundo. Por
ello, disminuir, eliminar y sustituir los clorofluorocarbonos (CFCs), halones
y sustancias asociadas al agotamiento de la capa atmosferica de ozono, es para
Mexico una prioridad y un compromise con la comunidad internacional. Para
nosotros, la evidencia cientifica existente respecto a la relacidn entre la
ruptura de la capa de ozono, el calentamiento de la atm6sfera y el uso de
estas sustancias, es suficiente para tomar medidas energicas ahora.
Estamos comprometidos con un numero importante y creciente de paises para
que estas sustancias sean eliminadas antes del ano dos mil. Somos concientes
de que nuestro esfuerzo puede parecer simbolico si se considera que s61o
producimos el uno por ciento del total mundial. Sin embargo, en la
circunstancia que vivimos y en funcidn de nuestra escala de desarrollo nuestra
aportacidn tiene un valor economico y politico sumamente importante.
-110-
Maxico Case Study, First Edition, June 1990
-------
Es vital que los paisea con mayor incidencia, los principales productores
y consumidores, se comprometan a una reduccidn mas general y rapida de las
emisiones de los CFCs.
No es un problema sencillo pues en ello eatan involucrados procesos de
producci6n que satisfacen un espectro muy variado de neceaidades, desde
refrigerantes, aerosoles, cosmeticos, requerimientos mSdico-cientificoa y
hasta aquellos vinculados a los microconductores y a la dinamica de los
grandes complejos militares y de exploraci6n del espacio. Sin embargo, ante
la amenaza que se cierne sobre la vida en la Tierra, no hay esfuerzo o costo
que debamos escatimar para evitarla.
SENORAS Y SENORES:
Los productores y principales usuarios de los CFCs y halones en Mexico
ban demostrado una disposicidn ejemplar para cumplir con esta tarea.
Recientemente, el pasado 9 de noviembre, suscribimos covenios con cada uno de
elloa, que nos permitiran abreviar los plazos que tenemos comprometidoes en el
marco del Protocolo de Montreal.
VamoB a realizar un esfuerzo mayor para acceder a las tecnologlas y a las
sustancias sustitutas. En una evaluacidn global del problema, el mundo cuenta
con la capacidad tecnologica para reducir las emisiones de los CFCs y halones
por lo menos en un 90 por ciento.
Para palaes como Mexico resulta decisive que aprovechemos los ciclos de
reposici6n de nuestra planta productiva para acceder a las nuevas tecnologias.
No debemoa admitir que se nos transfieran equipos obsoletos y perjudiciales
para el ambiente. Ademas, que tengan efectos negatives sobre nuestra
productividad y, en consecuencia, en nuestra capacidad de competir en al
mercado externo e interne. Una actuacidn comprometida permitira a Mexico,
como hasta ahora, contar con la autoridad moral y politica para promover ante
la comunidad internacional una actitud de mayor corresponsabilidad que se
traduzca en hechos tangibles en el corto plazo.
Estoy seguro de que los trabajos que hoy se inician aportaran directrices
importantes para continuar en esta lucha que es de todos y en beneficio de
todos.
Por todo ello, hoy, dia 22 de marzo de 1990, me complace declarar
formalmente inaugurados los trabajos de esta Conferencia Internacional sobre
Tecnologias Sustitutas para los CFCs y Halones: Solucionea Econ6micamente
Efectivas para Mexico.
-Ill-
Mexico Case Study, First Edition, June 1990
-------
Mr. Roberto Sanchez de la Vara
President of CANACINTRA;
Dr. Stephen Andersen
Chief of the Technology and Economics Branch
Global Change Division;
Conference Part ic ipant a;
Ladies and Gentlemen:
The conference you will participate in today is of great importance for
environmental policy in Mexico. This conference is an example of the benefits
associated with international cooperation and exchange between countries
determined to face the most critical global problems, such as, the depletion
of the stratospheric ozone layer, the greenhouse effect, deforestation, and
ocean pollution. It is also a proof of cooperation between governmental
authorities and members of the scientific community and industry.
I know it is difficult to accept the fact that our activities can
endanger, or preserve, life on earth. However, scientific evidence and
reality itself have proved that as the ozone layer depletes, the earth
receives more ultraviolet radiation, which leads to a weakening of the human
immune system, skin cancer, and sight damage. A greater penetration of
ultraviolet radiation will also lead to a decrease in both the agricultural
productivity and animal diversity. In addition, air pollution will increase
due to ozone and other pollutants increase .
The Montreal Protocol was created originally to address the hole of the
Antarctic ozone layer, which is estimated to cover 10 percent of the Southern
hemisphere. Recently, scientists have called the world's attention to a
second hole in the Arctic region at the North Pole. The most worrying
statements indicate that ozone depletion occurs not only at the poles but also
worldwide. For this reason, it is a priority for Mexico and a commitment of
the international community to reduce, eliminate and to find and use
substitutes for chlorofluorocarbons (CFCs), halons, and other substances that
deplete the ozone layer. For us, the existing scientific evidence linking the
rupture of the ozone layer and atmospheric warming with the use of these
substances is sufficient to warrant immediate action.
We, as well as an increasing number of other countries, are committed to
eliminating these substances before the year 2000. We are aware that our
efforts may appear merely symbolic if one considers that we produce only 1
percent of the world's total production of these substances. However, given
the circumstances we live in and the scale of our development, our
contribution has an extremely important economic and political value.
It is important that the most important producing and consuming countries
commit themselves to faster and more widespread reductions in CFG emissions.
This will not be easy, since a varied spectrum of production processes are
involved, ranging from refrigeration, aerosols, cosmetics, and medical-
-112-
Mexico Casa Study, First Edition. June 1990
-------
scientific products to microconductors used in large military and space
exploration systems. Nevertheless, the threat that hovers over life on Earth
is worth the effort and associated costs.
Ladies and Gentlemen:
The producers and main users of CFCs and halons in Mexico have shown a
remarkable disposition to meet this goal. Recently, on November 9, we signed
an agreement with each of them that will allow us to shorten the deadlines
established in the Montreal Protocol framework. We will make a greater effort
to adopt the substitute technologies and substances. As a global community,
we have the technological capacity to reduce CFC emissions by at least 90
percent.
For countries like Mexico, it is important to take advantage of the
replacement cycles of our production facilities by adopting the new
technologies. He should not allow the transfer of obsolete equipment that
will be harmful to the environment and also have a negative impact on our
productivity and, thus, our ability to compete in domestic and international
markets. A committed response by Mexico will continue to demonstrate a moral
authority to promote within the international community an attitude of shared
responsibility, which will translate into tangible results in the short term.
I am sure that the activities that begin today will provide important
guidelines that will ensure continuation of this effort, by all and for all.
For all of these reasons, today, March 22 of 1990, I am pleased to
formally open the activities for the International Conference on Matching
Cost-Effective CFC and Halon Alternatives to the Needs of Mexico.
-113-
Mezico Case Study, First Edition, June 1990
-------
CLOSING REMARKS BY U.S. AMBASSADOR TO MEXICO MR. JOHN 0. NEOROPONXE
AX THE INTERNATIONAL CONFERENCE ON MATCHING EXISTING
AND EMERGING COST-EFFECTIVE CFC AND HALON ALTERNATIVES
TO THE NEEDS OF MEXICO
Sponsored by
Secretaria da Ecologia y Desarrollo Urbano
Camara Nacional da la Industria da la Tran>forvaci6n
United State* Environmental Protection Agency
March 23, 1990
The United States is pleased to have participated with Mexican Government
and industry in this all-important conference on how Mexico can reduce and
eliminate the use of chemicals that destroy the ozone layer. The events that
took place in the two days of the conference have, I think, been a truly
outstanding example of what we, as neighbors and as fellow human beings, can
do to protect the ozone layer, a resource truly vital to the well-being and
survival of present and future generations.
That Mexico is, and always has been, firmly committed to the protection
of the ozone layer is indisputable. As Assistant U.S. Secretary of State for
Oceans and International Environmental and Scientific Affairs in the mid-
1980s, I saw firsthand the important role which Mexico played in the United
Nations Environment Programme's negotiations for an international protocol to
control CFC emissions. I also learned to appreciate the important role CFC
controls can play as part of an overall strategy to prevent global warming.
Mexico was the first country in the world to ratify the Montreal Protocol
on substances that deplete the ozone layer, and it continues to set an example
for other countries to follow. Under the Protocol, Mexico could have waited
ten years before undertaking any action to reduce CFC and halon use. Instead,
Mexico has chosen to make immediate reductions in the use of these substances
through voluntary agreements between government and industry.
These agreements between SEDUE and Mexican industry are among the first
of their kind internationally, and they are, I believe, truly worthy of
emulation by other countries and their respective industries.
Raising environmental consciousness throughout all strata of society is a
complex political, economic, and cultural challenge. The role of government
is to serve and protect the well-being of the people that elected it.
However, government can only do so much to protect society without private
sector support for its policies.
-114-
Mexico Cas« Study, First Edition, June 1990
-------
As we have seen from the different sessions of the past two days,
industry can play an extremely important role in the shaping and
implementation of environmental policy. Since the Montreal Protocol entered
into force on January 1, 1969, U.S. and Mexican industries have moved towards
compliance of the Protocol's restrictions on the consumption of CFCs and
halons. They have devoted much time and effort to the development of cost-
effective substitutes and alternatives which do not harm either human health
or the environment. Through conferences such as this one, they have shared
with one another, their respective governments, and members of the
international community their observations and findings. However, while
significant progress has been made in reducing and freezing the levels of
consumption of these ozone-depleting substances, much more remains to be done.
This June the U.S., Mexico, and other parties to the Protocol will vote
on two very important measures: (1) Whether or not to completely phase out
the use of CFCs and non-essential halons, and (2) whether to regulate other
ozone-depleting substances. The United States supports a complete phase-out
of CFCs and halons because the current terms of the protocol are not
sufficient to stop destruction of the ozone layer. We are gratified to know
that we can count on the support of Mexico for these measures.
Nevertheless, we are also conscious of the fact that passage of these
types of measures may require greater sacrifices by countries like Mexico than
for others like the United States. For this reason, the United States is
supporting a series of feasibility studies which will estimate overall
developing country needs of alternatives to ozone-depleting substances.
Through cooperative case studies such as the one which was discussed
yesterday, the United States can gain a better understanding of what it and
other developed countries can do to help developing countries make the
transition from CFCs and halons to environmentally safe alternatives.
It is the responsibility of the industrialized countries to make new
technologies readily available to developing countries, and it should be their
obligation to ensure that the prices for alternative substances do not hinder
the economic growth of developing nations.
Finally, as I mentioned earlier, there is of course a connection between
the specific issue of protecting the ozone layer and our broader concern about
the so-called global warming effect. I am pleased to announce that the White
House will be sponsoring an international conference entitled "Science and
Economics Research Related to Global Change" from April 17 to April 18, 1990.
President Bush intends to participate personally in this important meeting and
he has extended an invitation to President Salinas to send a high-level
delegation. I know that my government will warmly welcome our friends from
Mexico as we continue our mutual efforts to preserve and improve the quality
of life on our planet.
-115-
Mexico Case Study, First Edition, June 1990
-------
-116-
Mexico Case Study, First Edition, June 1990
-------
APPENDIX B: MEXICO OFFERS TECHNICAL EXPERTISE ON ALTERNATIVE NON-CFC
TECHNOLOGIES FOR AEROSOL MANUFACTURING
The use of CFCs for aerosol manufacturing in Mexico has decreased by 42
percent from 1984 to 1989 (see Exhibit II-9) due to the successful
implementation of alternative technologies. Currently, only 12 percent of all
aerosols produced in Mexico contain CFCs. The Mexican aerosol industry has
committed itself to the phase-out of CFCs by 1991 by signing a voluntary
agreement with the Mexican environmental agency, SEDUE1. The Mexican aerosol
industry has reduced its CFC consumption and switched to hydrocarbon
propellants (isobutane, propane, and butane) by adapting conventional
technology to local circumstances.
When switching from non-flammable propellants to flammable propellants
(i.e., hydrocarbons), various plants design requirements must be met. The
plant needs special explosion-proof equipment and instrumentation,
sophisticated leak detection systems, plant shut-down equipment, alarms, and
escape routes. Plant location is a very important consideration; the plant
must be located far from populated areas.
A. Cost-Effective Open-Air Filling Platforms
An example of how all of the new plant design requirements can be adapted
to local circumstances is the use of open-air filling platforms. In developed
countries where winter conditions are harsh and possible freezing and clogging
of gas lines is a concern, it is common practice to construct filling areas
(gas houses) in a closed room with concrete walls. For safety reasons the
1 The agreement does not apply to medicinal aerosols, electronic
cleaners, and aircraft aerosols, for which no substitutes are currently
available.
-117-
Mexico Case Study, First Edition, June 1990
-------
room is isolated from the rest of the aerosol filling line (see Exhibit B-l).
The room is equipped with leak detectors, alarms, and devices for shutting
down gas supply lines in case excessive concentrations of hydrocarbons
accumulate. The cost associated with such gas house construction design is
high. Mexico, as well as many other developing countries, has relatively mild
and uniform weather year-round. In cases where space adjacent to the plant is
available, filling lines are positioned outside the plant building with a
carefully designed explosion-proof wall separating the filling line from the
rest of the aerosol production line (see Exhibit B-2). Adequate ventilation
is provided by either natural air currents or by explosion-proof fans. The
design approach is inherently cheaper and has been used in Mexico for many
years with no reported accidents.
B. Centralized High-Volume Contract Pilling of Aerosol and Liquid
Products
Manufacture of aerosol products in developing countries is, at times,
conducted near populated areas with poor natural ventilation. Limitations of
space may prevent the use of open filling platforms. An approach for safe and
flexible manufacturing in populated areas is used by Aerobal, S.A., a leading
Mexican manufacturer of aerosol and liquid products located in the Mexico City
metropolitan area. Aerobal is primarily a contract filler, i.e., a
centralized firm that fills aerosols, pumps, and other products requiring
liquid filling, for other companies for a fee per unit. Aerobal's facility
has the necessary detection and control systems to safely handle flammable
propeHants at low cost. Small companies can use a facility such as Aerobal's
for safe contract filling while maintaining product differentiation,
independent formulation facilities, and distribution channels. This aerosol
-118-
Mexico Case Study, First Edition, June 1990
-------
UJ
DC
UJ
x
LU
o
D
O
h-
D
UJ
I-
Q.
IL
O
O
CC
Q.
Z
O
(0
o
_l
Q.
X
111
tu
Z
_!
o
p
o
3
Q
O
cc
0.
_J
o
(ft
o
cc
Ul
<
LL
O
K
CO
111
CC
(5
O
O
Z
X
o
UJ
ii
DC
CL IL
-119-
Mezico Cas* Study, First Edition, Jun* 1990
-------
CNI
m
^^
^^^
!5
x
LU
>-
07
o
1
o
X
o
UJ
h-
1
^
z
o
^
z
UJ
z
o
o
* *
•
h-
z
<
UJ
Q.
O
DC
a.
* *
UJ
O
p
o
3
O
o
OL
-J
o
0)
o
cc
LU
LL
O
1-
01
Ul
cc
^
"o.
a
3
CO
to
(0
O)
c
•a
CD
£
**
3
CO
h.
0
to
o
o
•o
* *
_^ *
Z
(3 0
3 ^
=! K-
LL O)
* *
1
IS
CO
«r
>.
0
o
o
"o
•o
CO
J
II
»
CO
-120-
Mnico Ca«» Study. First Edition, Jun* 1990
-------
product manufacturing approach ensures safe and cost-effective manufacturing
while maintaining the viability and autonomy of small firms.
C. Example of Information Required by Technical Experts for Adapting
Technology to Local Circumstance*
Based on the successful experience in Mexico, Mexican technical experts
welcome the opportunity to assist other developing countries in eliminating
the use of CFCs and adapting aerosol plants to safely use hydrocarbon
propellants. The information that these experts would require to evaluate the
specific circumstances of an aerosol plant include the following:
• present plant design and layout;
• plant location (distance to populated and/or industrial areas);
• design and location of propellant storage tanks;
• availability of hydrocarbons;
• climate (minimum and maximum temperatures, humidity);
• use of pneumatic or electric instruments; and
• wind direction.
-121-
Mazico Case Study, First Edition, June 1990
-------
APPENDIX C
This appendix presents detailed cost calculations used to derive the U.S.
cost per kilogram estimates for each of the controls. Estimates of the
capital and operating costs are provided for each technology described. These
estimates have been developed based on information provided by international
industry sources and experts on individual technologies. The data has been
used in such reports as the "Costs and Benefits of Phasing Out Production of
CFCs and Halons in the U.S.," Draft Report, Office of Air and Radiation, U.S.
Environmental Protection Agency, November 3, 1989, and the "Regulatory Impact
Analysis: Protection of Stratospheric Ozone," Office of Air and Radiation,
U.S. Environmental Protection Agency, August 1, 1988.
-123-
Mezico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
HCFC -123 IN INDUSTRIAL/COMMERCIAL REFRIGERATION
CFG Used: CFC-11
End Use: Industrial/Commercial Refrigeration
Control: HCFC-123
Characteristics of Average CFC-11 Refrigeration Unit:
Capital Costs of Unit: $50,000
Energy Consumption of Unit: 1,597,284,000 Btu/year
Average Life of Unit: 25 years
CFC-11 Base Charge Size of Unit: 500 kg
Service Practices: Serviced and refilled six times during its lifetime.
Each time unit is serviced an excess amount of 7
percent of the base charge is used. Total service
charge
1.07*500 kg.
Characteristics of HCFC-123 Unit
New industrial/commercial refrigeration equipment will contain HCFC-123.
The capital cost of this equipment will be 10 percent greater than that of the
CFC-11 unit. The energy consumption of the HCFC-123 unit will be 1 percent
greater.
Incremental Costs
Capital Costs - $5000 Annualized Costs at 2 percent and 25 years -
$256/year
Energy Costs - $313/year at $0.067 per kwh
Chemical Costs:
Price of HCFC-123 - $4.17/kg
Price of CFC-11 - $1.41Ag
Costs of Chemical - (4.17 - 1.41)*(7.49)*500/25 years - $413/year
Annual Costs per kilogram of CFC-11 Saved - (256 + 313 + 413) * 25/500*7.49
- $6.55/kg
-124-
Mexico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
CFC-11 RECYCLING FOR INDUSTRIAL/COMMERCIAL REFRIGERATION
CFC Used: CFC-11
End Use: Industrial/Commercial Refrigeration
Control: Recycling
CFC-11 Price: $1.41 per kg
Characteristics of CFC-11 Recycling
Average Charge of CFC-11 Refrigeration Unit: 500 kg
Incremental Capital Costs Calculation
Capital Costs Recycling Unit: $15,000
Number of Recycling Machines Required to
service U.S Stock of CFC-11 Chillers in 1985: 230
U.S. Stock of CFC-11 Chillers: 37,000
Average Lifetime of Recycling Equipment: 5 years
Total Capital Costs for all Recycling Machines Required: $3.45 million
Annual Capital Costs (at 2 percent and 5 years): $731,946
Total Number of Recycling Jobs per Year in the U.S: 37,000
Annual Capital Costs per Recycling Job: $20
Incremental Operating Costs
Recovery Rate of Recycling Machine: 14 kg per hour
Operating Costs per Hour: $25
Total Operating Costs per Recycling Job: $893
Total Capital and Operating Costs Per Job: $(893 + 20) - $913
Chemical Savings
Recycling and Servicing Events: Six servicing/recovery events over life of
refrigeration unit; six recovery events at
leak testing; and one recovery event at
disposal of refrigeration equipment.
-125-
Hexico Case Study, First Edition, June 199C
-------
Recycling equipment saves 70 percent of
the CFG that would be lost at servicing.
Total amount of CFC saved over lifetime
due to servicing: 6*500*0.70 - 2,100 kg
Total amount of CFC used for leak testing
is 5 percent of CFC charge. Total amount
of CFC saved from leak testing:
0.05*500*6*0.70 - 105 kg
Total CFCs saved over lifetime - 2,205 kg
Total CFC Savings at Servicing and Leak Testing - $518 per service job
Total Costs (capital* operating + chemical): $913 - $518 - $395 per job
Total Costs Over Lifetime of Refrigeration Unit - Servicing Costs +
Disposal Costs
6*395 + 913 - $3,283
Total Costs per Kilogram of CFC Saved - $1.49 per kg
-126-
Mezico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
HCFC-141b/HCFC-123 FOAM BLOWING AGENT FOR FLEXIBLE
FOAM « INSULATION FOAM APPLICATIONS
CFC Used: CFC-11
End Use: Flexible Foam and Insulation Foam Applications
Control: HCFC-141b/HCFC-123 Foam-Blowing Agent
Price of CFC-11: $1.41 per kg
Price of HCFC-123: $4.17 per kg
Price of HCFC-141b: $3.31 per kg
Characteristics of Flexible and Insulation Foam-Blowing Applications Using
HCFC-123/HCFC-141b
CFC-11 flexible foam and insulation foam-blowing factories will have to
be retrofitted to accommodate the new HCFC-123/HCFC-141b foam-blowing agent.
Incremental Capital Costs: The retrofitting costs are $32 per metric ton
(MT) of foam. The useful lifetime for flexible
and insulating foams factory is 25 years.
Annualized costs at a 2 percent discount rate
are $1.64 per MT of foam
Incremental Chemical Costs: CFC-11 is replaced with a blend of HCFC-
123/HCFC-141b. 50 percent of CFC-11 is replaced
with HCFC-123 which has a replacement factor of
1.25 (i.e., every kg of CFC-11 is replaced with
1.25 kg of HCFC-123). Similarly the remaining 50
percent of CFC-11 is replaced with HCFC-141b.
This has a replacement factor of 0.91.
170.16 kg of CFC-11 is used for every MT of foam
produced.
Chemical costs: 0.5*170.16*(0.91*3.31 - 1.41) +
0.5*170.16*(1.25*4.17 - 1.41) - $460 per MT of
foam
Incremental Capital & Operating Costs: $461.6 per MT of foam
Amount of CFC-11 Saved: 170.16 kg per MT of foam produced
Costs per Kilogram of CFC Saved - $ 2.71 per kg
-127-
Mazlco Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
HCFC-134a IN MOBILE AIR CONDITIONERS
CFG Used: CFG-12
End Use: Mobile Air Conditioning
Control: HFC-134a
Characteristics of CFG-12 Refrigeration Unit:
Energy Consumption of Unit: 2,501,000 Btu/year
Average Life of Unit: 11 years
Base Charge Size of Unit: 1.727 kg
Actual charge used to fill and leak test unit is 32 percent greater than base
charge (i.e., 1.32 * 1.727 kg)
Service Practices: Recharged and serviced with 4.6 kilograms over its
lifetime.
Total Charge used Over Lifetime: (1.32+4.6) kg - 5.92 kg
Price of CFC-12 - $1.63Ag
Price of HFC-134a - $6.65/kg
Characteristics of HFC-134a Unit
CFC-12 used in mobile air conditioning is replaced with HFC-134a.
Incremental Costs
Capital Costs : One time retooling costs to industry estimated at $100
million for an industry manufacturing 13.2 million mobile
air conditioning units per year.
Annualized capital costs at a 2 percent discount rate and a
lifetime of 11 years results in costs of $0.77 per year per
mobile air conditioner unit.
Energy Costs: An HFC-134a unit consumes 3 percent more energy than a CFC-
based unit
The energy costs at $0.023 per kwh are $0.50/year
Chemical Costs: 5.92 kg * (6.65 - 1.63)/11 years - $2.70/year
-128-
Mexico Case Study, First Edition, June 1990
-------
Annual Costs per Kilogram of CFC-12 Saved - (0.77 + 0.5 + 2.7) * 11/16.1
— $ 7.4 per kilogram
-129-
ttexico C»s« Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
MOBILE AIR CONDITIONER RECYCLING
CFG Used: CFG-12
End Use: Mobile Air Conditioner (MAC) Recycling
Control: Recycling
Characteristics of Mobile Air Conditioner Recycling Unit:
Capital Costs of Recycling Unit: $2,000
Lifetime of Recycling Unit: 5 years
Salvage Value of Unit: $400
Annualized Costs of Recycling Equipment (discount rate of 2Z): $347
Number of Recycling Shops in the U.S: 16,946
Number of Servicing Jobs in the U.S. per Shop per Year: 312
Total Number of Service Jobs in the U.S.: 5,287,152
Annual Capital Costs per Job per Shop: $1.11
Characteristics of Mobile Air Conditioner Unit:
Initial charge of MAC: 1.727 kg
Regular servicing occurs when 70 percent of the initial charge remains in the
MAC.
10 percent of MACs are vented at regular servicing
12.5 percent of all MACs are serviced each year due to accidents, ruptures in
the hoses, and general failures. 100 percent of these MACs are vented, and it
is assumed that 55 percent of the charge remains at venting.
At each servicing job 0.795 kg of CFG are used for leak detection.
At refill 20 percent of the charge is emitted (i.e., it takes 1.2 times the
charge to fill the MAC).
Based on the costs per job and the above emissions estimates the costs per
kilogram of CFG-12 saved is: $4.88 per kg
-130-
Mexico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
TERNARY BLEND IN HOUSEHOLD REFRIGERATORS
CFG Used: CFG-12
End Use: Household Refrigerators
Control: Ternary Blend
Characteristics of CFC-12 Refrigeration Unit:
Energy Consumption of Unit: 1100 kwh/year
Average Life of Unit: 19 years
Base Charge Size of Unit: 0.21 kg
Actual charge used to fill unit is 8 percent greater than base charge (i.e.,
1.08 * 0.21 kg)
Service Practices: Recharged and serviced with 0.36 times the base charge
during lifetime. Total service charge 0.36*0.21 kg.
Total Charge used Over Lifetime: (1.08 + 0.36) * 0.21 kg - 0.30 kg
Price of CFC-12 - $1.63Ag
Price of Ternary Blend - $5.60/kg
Characteristics of Ternary Blend Unit
The ternary blend is a drop-in chemical for household refrigerators.
Incremental Costs
Capital Costs: The ternary blend is a drop in and thus its incremental
capital costs are negligible.
Energy Costs: The ternary blend unit consumes 3 percent less energy than
CFG-12-based units.
The energy savings at $0.067 per kwh are $2.21/year
Chemical Costs: 0.30 kg * (5.60 - 1.63)/19 years - $0.063/year
Annual Costs per kilogram of CFC-12 Saved - (0.063 - 2.21) * 19/0.30
, "i t • .
- - $ 136 per kilogram
For the purposes of this analysis all negative costs controls are assumed zero
costs controls (i.e., costs per kilogram is zero).
-131-
tfexico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
HFC-152a IN HOUSEHOLD REFRIGERATORS
CFG Used: CFC-12
End Use: Household Refrigerators
Control: HFC-152a
Characteristics of CFC-12 Refrigeration Unit:
Energy Consumption of Unit: 1100 kwh/year
Average Life of Unit: 19 years
Base Charge Size of Unit: 0.21 kg
Actual charge used to fill unit is 8 percent greater than base charge (i.e.,
1.08 * 0.21 kg)
Service Practices: Recharged and serviced with 0.36 times the base charge
during lifetime. Total service charge 0.36*0.21 kg.
Total Charge used Over Lifetime: (1.08 + 0.36) * 0.21 kg - 0.30 kg
Price of CFC-12 - $1.63Ag
Price of HFC-152a - $9.05/kg
Characteristics of HFC-152a Unit
The HFC-152a is a drop-in chemical for household refrigerators.
Incremental Costs
Capital Costs : The HFC-152a is a drop in and thus its incremental capital
costs are negligible.
Energy Costs: The HFC-152a unit consumes 7 percent less energy than CFC-12
units.
The energy savings at $0.067 per kwh are $5.16/year
Chemical Costs: 0.30 kg * (9.05 - 1.63)/19 years - $0.117/year
Annual Costs per Kilogram of CFC-12 Saved - (0.117 - 5.16) * 19/0.30
- $ 319 per kilogram
For the purposes of this analysis all negative costs controls are assumed zero
costs controls (i.e., costs per kilogram is zero).
-132-
Mexico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
REDUCED CHARGE IN HOUSEHOLD REFRIGERATION
CFC Used: CFG-12
End Use: Household Refrigerators
Control: Reduced Charge
Characteristics of Manufacturing Household Refrigerators Using Reduced Charge
CFC-12 use can be reduced in household refrigerators using evaporator
and condenser tubing that is smaller in diameter and longer so as to provide
the same refrigeration characteristics and energy efficiency.
Incremental Costs
Raw Material/Chemical Savings: CFC-12 is estimated to cost $1.63 per kg
and the total quantity used during a
refrigerators lifetime is 0.3 kg. Reducing
CFC-12 charge by 50 percent saves $0.24
per household refrigerator.
Savings for a plant manufacturing 400,000
refrigerators - $97,800
Energy Costs: Same
Capital Costs: Capital costs include costs to retrofit refrigeration
manufacturing lines to accommodate the use of reduced CFC-12
charge. Capital investment for typical refrigeration plant
producing 400,000 units per year is $50,000.
Annual Costs per Kilogram of CFC-12 Saved - 0.0
The operating costs savings
resulting from the use of
reduced CFC-12 charge offset
the capital investment
required.
-133-
ttexico Casa Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
TERNARY BLEND IN INDUSTRIAL/COMMERCIAL REFRIGERATION
CFG Used: CFG-12
End Use: Industrial/Commercial Refrigeration
Control: Ternary Blend
Characteristics of CFC-12 Refrigeration Unit:
Energy Consumption of Unit: 71,379,040 Btu/year
Average Life of Unit: 10 years
Base Charge Size of Unit: 120 kg
Actual charge used to fill unit is 10.5 percent greater than base charge
(i.e., 1.105 * 120 kg)
Service Practices: Recharged and serviced with 3.31 times the base charge
during lifetime. Total service charge 3.31*120 kg.
Total Charge used Over Lifetime: (1.105 + 3.31) * 120 kg - 530.4 kg
Price of CFC-12 - $1.63/kg
Price of Ternary Blend - $5.60/kg
Characteristics of Ternary Blend Unit
The ternary blend is a drop-in chemical in industrial/commercial
refrigeration units.
Incremental Costs
Capital Costs: The ternary blend is a drop-in chemical and thus its
incremental capital costs are negligible.
Energy Costs: The ternary blend unit consumes 3 percent less energy than a
CFC-12 unit.
The energy savings at $0.067 per kwh are $42/year
Chemical Costs: 530.4 kg * (5.60 - 1.63)/10 years - $210.6/year
Annual Costs per Kilogram of CFC-12 Saved - (210.6 - 42) * 10/530.6
$3.2 per kilogram
-134-
Mazico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
CFC-12 RECYCLING FOR INDUSTRIAL/COMMERCIAL REFRIGERATION
CFC Used: CFC-12
End Use: Industrial/Commercial Refrigeration
Control: Recycling
CFC-12 Price: $1.63 per kg
Characteristics of CFC-12 Recycling
Average charge of CFC-12 Refrigeration Unit: 727 kg
Incremental Capital Costs Calculation
Capital Costs Recycling Unit: $15,000
Number of Recycling Machines Required to Service U.S stock of CFC-12 chillers
in 1985: 39
U.S. Stock of CFC-12 Chillers: 6,100
Average Lifetime of Recycling Equipment: 5 years
Total Capital Costs for all Recycling Machines Required: $575,000
Annual Capital Costs (at 2 percent and 5 years): $121,991
Total Number of Recycling Jobs per Year in the U.S: 6,100
Annual Capital Costs per Recycling job: $20
Incremental Operating Costs
»
Recovery Rate of recycling machine: 14
Operating Costs per Hour: $25
Total Operating Costs per Recycling Job: $1,299
Total Capital and Operating Costs Per Job: $(1299 + 20) - $1,319 per job
Chemical Savings
Recycling and Servicing events: Six servicing/recovery events over life of
refrigeration unit; six recovery events at
leak testing; and one recovery event at .
disposal of refrigeration equipment.
-135-
Mexico Case Study, First Edition, Jun* 1990
-------
Recycling equipment saves 85 percent of
the CFC that would be lost at servicing.
Total amount of CFC saved over lifetime
due to servicing: 6*727*0.85 - 3,708 kg
Total Amount of CFC used for leak testing
is 5 percent of CFC charge. Total amount
of CFC saved from leak testing:
0.05*727*6*0.85 - 185.4 kg
Total CFCs saved over lifetime - 3,893 kg
Total CFC Savings at Servicing and Leak Testing - $1,057 per service job
Total Costs (capital + operating + chemical): $1,319 - $1,057 - $262 per job
Total Costs Over Lifetime of Refrigeration Unit - Servicing Costs + Disposal
Costs
- 6*262 + 1,319 - $2,891
Total Costs per Kilogram of CFC Saved - $0.75 per kg
-136-
Mezico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
HCPC-141b/HCPC-123 FOAM BLOWING AGENT FOR
INSULATION FOAM APPLICATIONS
CFG Used: CFG-12
End Use: Insulation Foam Applications
Control: HCFC-141b/HCFC-123 Foam Blowing Agent
Price of CFC-12: $1.63 per kg
Price of HCFC-123: $4.17 per kg
Price of HCFC-141b: $3.31 per kg
Characteristics of Insulation Foam-Blowing Applications Using HCFC-123/HCFC-
141b
CFC-12 insulation foam blowing factories will have to be retrofitted to
accommodate the new HCFC-123/HCFC-141b foam-blowing agent.
Incremental Capital Costs: The retrofitting costs are estimated at $32 per
metric ton (MI) of foam. The useful lifetime
for insulation foam factory is 25 years.
Annualized costs at a 2 percent discount rate
are $1.64 per MT of foam
Incremental Chemical Costs: CFC-12 is replaced with a blend of HCFC-
123/HCFC-141b. 50 percent of CFC-12 is replaced
with HCFC-123, which has a replacement factor of
1.25 (i.e., every kg of CFC-12 is replaced with
1.25 kg of HCFC-123). Similarly, the remaining
50 percent of CFC-12 is replaced with HCFC-141b,
which has a replacement factor of 0.91.
170.16 kg of CFC-12 is used for every MT of foam
produced.
Chemical costs: 0.5*170.16*(0.91*3.31 - 1.63) +
0.5*170.16*(1.25*4.17 - 1.63) - $422 per MT of
foam
Incremental Capital & Operating Costs: $423.6 per MT of foam
Amount of CFC-12 Saved: 170.16 kg per MT of foam produced
Costs per Kilogram of CFC Saved - $ 2.48 per kg
-137-
Mazico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
HCFC-22/HCFC-142b FOAM BLOWING AGENT FOR FOAM PACKAGING APPLICATIONS
CFG Used: CFG-12
End Use: Foam Packaging Application
Control: HCFC-22/HCFC-142b Foam Blowing Agent
Price of CFG-12: $1.63 per kg
Price of Chemical Substitute: $3.29 per kg
Characteristics of Packaging Foam-Blowing Applications Using HCFC-22/HCFC-142b
CFG-12 packaging foam-blowing factories will have to be retrofitted to
accommodate the new HCFC-22/HCFC-142b foam-blowing agent.
Incremental Capital Costs: The retrofitting costs are $38 per metric ton
(MT) of foam. Useful lifetime for packaging
foam factory is 25 years. Therefore, annualized
costs are $1.95 per MT of foam
Incremental Chemical Costs: 152 kg of CFG are used for every MT of foam
produced.
Chemical costs: 152*1.66 - $252 per MT of foam
produced.
Incremental Capital & Operating Costs: $254 per MT of foam
Amount of CFG Saved: 152 kg per MT of foam produced
Costs per Kilogram of CFG Saved - $1.67 per kg
-138-
Mexico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
COMPRESSED GASES IN AEROSOL APPLICATIONS
CFG Used: CFG-11, CFG-12, CFG-114
End Use: Aerosols
Control: Compressed Gases
Characteristics of Aerosol Filling Lines
CFC use in aerosol application is replaced with compressed gases such as
carbon dioxide. The use of compressed gases will require special technology
capable of handling high vapor pressure gases such as air, nitrogen, and
carbon dioxide.
Incremental Costs
Raw Material/Chemical Savings: Carbon dioxide is estimated to cost $1.00
per kg. Therefore each kilogram of CFC-12
replaced saves $0.63.
Energy Costs: Same
Capital Costs : Capital costs include costs to retrofit aerosol filling
lines to accommodate the use of carbon dioxide. Capital
investment for typical aerosol plants is estimated at
$45,000 to $120,000.
Costs per Kilogram of CFC-12 Saved - 0.0
The operating costs savings
resulting from the use of compressed
carbon dioxide and LPG offset the
capital investment required.
-139-
Mexico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
HYDROCARBONS IN AEROSOL APPLICATIONS
CFG Used: CFC-11, CFC-12, CFC-114
End Use: Aerosols
Control: Hydrocarbons
Characteristics of Aerosol Filling Lines
CFG use in aerosol applications is replaced with hydrocarbons such as
liquified petroleum gas (LFG). The use of LPG will require special technology
capable of handling the LPG, such as LFG storage tanks, fire-extinguishing
equipment, special safety equipment, and adjustment to filling lines.
Incremental Costs
Raw Material/Chemical Savings: LPG is estimated to costs $0.6 per kg.
The total costs of LPG for an 8 million
unit factory is $1.24 million. The total
cost of CFC would be $2.93 million.
Savings in material costs: $1.69 million
per year
Energy Costs: Same
Capital Costs : The capital costs to retrofit a factory producing 8 million
containers per year is estimated at $1.36 million. This
includes $566,000 for capital investment for machinery and
equipment for filling lines and $793,000 for auxiliary
equipment such as safety equipment, fire-extinguishing
equipment, and alarm systems.
Costs per Kilogram of CFC Saved 0.0
The operating costs savings resulting from
the use of LPG offset the capital
investment required.
-140-
Mezico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
HCFC BLEND IN STERILIZATION
CFG Used: CFG-12
End Use: Sterilization
Control: HCFC-Based Proprietary Blend
Characteristics of Using HCFC-Based Proprietary Blend for Sterilization
Applications
CFC-12 can be replaced in sterilization applications using a proprietary
HCFC blend that is currently under development. The sterilization equipment
using this blend is similar to the CFC-12 sterilization equipment.
Incremental Costs
Chemical Costs: CFC-12 costs $1.63 per kg. The HCFC-based proprietary blend
costs 10.63 per kg. Thus, each kilogram of CFC-12 replaced
with the proprietary blend will cost $9 per kg.
Energy Costs: Same
Capital Costs: The sterilization equipment using the proprietary blend will
cost the same as CFC-12 sterilization equipment. Therefore,
incremental capital costs are negligible.
Annual Costs per Kilogram of CFC-12 Saved - $9 per kilogram
-141-
Maxico Casa Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
AQUEOUS GLEANING IN METAL AND ELECTRONICS CLEANING
CFG Used: CFG-113
End Use: Metal and Electronics Cleaning
Control: Aqueous Cleaning
Characteristics of CFG-113 Solvent Cleaning Open-Top Vapor Degreaser Unit
Capital Costs of CFG-113 Unit: $16,316
Energy Consumption of Unit: The unit consumes 27 kw of electricity (i.e.,
$3630/year) based on energy costs for heating
the solvent, the work load, compensation for
heat loss due to radiation, and operating an
auxiliary still.
Average Life of Unit: 10 years
Total Virgin Solvent used: 5300 kg per year
Price of CFG-113 - $1.96 per kg
Characteristics of Aqueous Cleaning Unit
A typical conveyorized spray washer would be needed to replace an open-
top solvent cleaner.
Incremental Costs
Capital Costs : The capital costs include the costs of aqueous cleaning
equipment, (i.e., wash tanks, rinse tanks, air knife, and
dryer), installation costs and floor space costs.
Costs: $50,000 Annualized Costs - $5566 at 2 percent
discount rate
Energy Costs: Electricity costs are based on a consumption of 33 kwh (or
22 percent greater than the CFC-113 machine). This is based
on energy consumption of aqueous cleaning and drying
equipment.
The energy costs at $0.067 per kwh are $804 per year
Raw Material/Chemical Savings: Based on the costs of aqueous cleaner
chemicals and costs of water: $9,388 per
year
Waste Treatment/Disposal Costs: $7000 per year
-142-
Mezico Case Study, First Edition, June 1990
-------
Total Incremental Operating Costs: +7000 + 804 - 9388 - - $1584 per year
Annual Costs per Kilogram of CFC-113 Saved - (5566 - 1584)/ 5300
- $0.75 per kilogram
-143-
ttoxieo Cas« Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
RECYCLING IN THE METAL AND ELECTRONICS INDUSTRIES
CFG Used: CFG-113
End Use: Metal and Electronics Cleaning
Control: Recycling/Engineering Controls
Price of CFC-113: $1.96 per kg
Characteristics of Recycline/Engineering Controls
Engineering controls are based on a combination of improved house-
keeping practices, refrigerated freeboard chiller, increased freeboard height,
and automatic hoist.
Incremental Capital Costs
Engineering controls: $11,000
Annualized Costs at 2 percent Discount and a Lifetime of Ten Years: $1,224
Incremental Operating Costs
Energy Costs: $112 Based on increased energy to operate the
freeboard chiller
Solvent Savings: $5,360 Based on the fact that an average open-top
degreaser consumes 5,300 kg of CFC-113.
Engineering controls reduce evaporative, drag
out, and downtime solvent loss. This results in
virgin solvent use reduction of 51.6 percent.
Total Operating Savings: $5,248
Total Capital and Operating Savings: $4,024
Costs Per Kilogram of Reducing CFC-113: -$1.47
For the purposes of this analysis all negative costs controls are assumed zero
costs controls (i.e., costs per kilogram is zero).
-144-
Mezico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
HCFC-124 IN INDUSTRIAL/COMMERCIAL REFRIGERATION
CFC Used: CFG-114
End Use: Industrial/Commercial Refrigeration
Control: HCFC-124
Characteristics of Average CFC-114 Refrigeration Unit
Capital Costs of Unit: $200,000
Energy Consumption of Unit: 10,750,950,000 Btu/year
Average Life of Unit: 25 years
CFC-114 Base Charge Size of Unit: 568.2 kg
Service Practices: Serviced and refilled six times during its lifetime.
Each time unit is serviced an excess amount of 7
percent of the base charge is used. Total service
charge 1.07*568.2 kg. Initial charge 568.2 kg. Total
Charge over lifetime 1.07*568.2 + 568.2 kg
Characteristics of HCFC-124 Unit
New industrial/commercial refrigeration equipment will contain HCFC-124.
The capital cost of this equipment will be 10 percent greater than that of the
CFC-114 unit. The energy consumption of the HCFC-124 unit will be 2 percent
greater.
Incremental Costs
Capital Costs - $20,000 Annualized Costs at 2 percent and 25 years -
$1024.41/year
Energy Costs - $4,219/year at $0.067 per kwh
Chemical Costs:
Price of HCFC-124 - $4.89 per kg
Price of CFC-114 - $2.38 per kg
Costs of Chemical - (4.89 - 2.38)*(7.07)*568.2/25 years - $403.32/year
Annual Costs Per Kilogram of CFC-114 Saved - (1024 + 4219 + 403) * 25/568*7.07
- $35.I/kg
-145-
Mexico Case Study, First Edition, June 1990
-------
SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
CFC-114 RECYCLING FOR INDUSTRIAL/COMMERCIAL REFRIGERATION
CFG Used: CFC-114
End Use: Industrial/Commercial Refrigeration
Control: Recycling
CFC-114 Price: $2.38 per kg
Characteristics of CFC-114 Recycling
Average Charge of CFC-114 Refrigeration Unit: 568 kg
Incremental Capital Costs Calculation
Capital Costs of Recycling Unit: $15,000
Number of Recycling Machines Required to Service U.S Stock of CFC-114 Chillers
in 1985: 21
U.S. Stock of CFC-114 Chillers: 2,700
Average Lifetime of Recycling Equipment: 5 years
Total Capital Costs for all Recycling Machines Required: $250,000
Annual Capital Costs (at 2 percent and 5 years): $53,040
Total Number of Recycling Jobs per Year in the U.S: 2,700
Annual Capital Costs per Recycling Job: $20
Incremental Operating Costs
Recovery Rate of Recycling Machine: 14 kg per hour
Operating Costs per hour: $25
Total Operating Costs per Recycling Job: $1,014
Total Capital and Operating Costs Per Job: $(1014 + 20) - $1,034
Chemical Savings
Recycling and Servicing Events: Six servicing/recovery events over life of
refrigeration unit; and one recovery event
at disposal of refrigeration equipment.
-146-
Mexico Case Study, First Edition, June 1990
-------
Recycling equipment saves 85 percent of
the CFC that would be lost at servicing.
Total amount of CFC saved over lifetime
due to servicing: 6*568*0.85 - 2,897 kg
Total CFCs saved over lifetime - 2,897 kg
Total CFC Savings at Servicing and Leak Testing - $1,149 per service job
Total Costs (capital + operating + chemical): $1,034 - $1,149 - -$115 per job
Total Costs Over Lifetime of Refrigeration Unit - Servicing Costs + Disposal
Costs
- - 6*115 + 1034 - $344
Total Costs per Kilogram of CFC Saved - $0.12 per kg
-147-
Mexico Case Study, First Edition, June 1990
------- |