*
                         •
 Costs to Egypt of Protecting
the Stratospheric Ozone Layer
      Egyptian Environment Affairs Agency

            in cooperation with

   United States Environmental Protection Agency

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                              ACKNOWLEDGEMENTS
      The Egyptian Environment Affairs Agency and the United States Environmental
Protection Agency would like to thank the following individuals, organizations, and
corporations for their assistance in the preparation of this study:

      Dr. Ahmed Amin Ibrahim
      Eng. Salwa EI-Tayeb
      Dr. Galal Hassan
      Dr. Sayed Mishaal

      General Organization for Industrialization (GOFI)

             Dr. Ismail Abdel Latif
             Eng. Mohamed Oweiss
             Mr. Aly Fahmy
             Eng. Farouk Mohsen
             Eng. Hazem Abdel Wahab

      Industrial Control and Survey Authority
      The Chemical Authority
      The Federation of Industry
      Public Industrial Companies

             Eng. M. Badr,  Ideal Co.
             Eng. A. Abu Zeid et al., KZ Pesticides Co.
             Eng. A. El-Sawah, Koldair Co.
             Mr. Salah Eldin Soleiman, Koldair Co.
             Eng. Sadek M. Bushra, Koldair Co.

      Private Industrial Companies

             Dr. M. Fathi Azouz, UTAC Co.
             Eng. Aly EI-Borolossy et al., Taki Foam Co.

      Dr. Omar EI-Arini, Science Office, U.S. Embassy, Cairo, Egypt

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                             TABLE OF CONTENTS



                                                                         Page

EXECUTIVE SUMMARY	v


I. INTRODUCTION	1

   A. Background 	1

   B. The Role of Chlorofluorocarbons and Halons in Stratospheric Ozone Depletion  .... 3

   C. The Montreal Protocol and Subsequent Developments	4

      1.  The Montreal Protocol	4
      2.  Subsequent Developments  	5

   D. The Revised Montreal Protocol and Egypt's Policy on Stratospheric Ozone
      Protection	9
    CONSUMPTION OF CHLOROFLUOROCARBONS AND OTHER OZONE-
    DEPLETING COMPOUNDS IN EGYPT 	13
   TECHNOLOGY AND EQUIPMENT CHARACTERISTICS IN CURRENT END USES	19

   A. Commercial and Residential Refrigeration and Air Conditioning  	19

      1.  Commercial Refrigeration	19
      2.  Residential Refrigeration  	20
      3.  Air Conditioning	20

   B. Foams	22

   C. Aerosols  	24

      1.  Pesticides	24
      2.  Cosmetics	26

   D. Solvents	27

   E. Halons	27
                          Egypt Case Study, First Edition, June 7990

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                            TABLE OF CONTENTS
                                  (Continued)
                                                                        Page
IV.   METHODS FOR REDUCING CHLOROFLUOROCARBON USE: RECYCLING,
     CHEMICAL ALTERNATIVES, ALTERNATIVE TECHNOLOGIES, AND
     PRODUCT SUBSTITUTES	29

     A.  Recycling and Other Conservation Practices	29

        1.  Refrigeration	29
        2.  Foams  	33
        3.  Solvents	34
        4.  Sterilization	37

     B.  Chemical Alternatives 	37

        1.  Refrigeration	37
        2.  Foams  	40
        3.  Aerosols	42
        4.  Solvents	44
        5.  Sterilization	46

     C.  Alternative Technologies	47

        1.  Refrigeration	47
        2.  Foams  	48
        3.  Solvents	49
        4.  Sterilization	55

     D.  Product Substitutes	56

        1.  Foams  	56
        2.  Aerosols	57
V. COST-EFFECTIVE MEASURES FOR REDUCING CONSUMPTION OF OZONE-
   DEPLETING SUBSTANCES  	59
VI. COSTS OF COMPLYING WITH THE MONTREAL PROTOCOL 	65

     A.  Methodology Used to Compute Incremental Costs  	65

        1. Economic Framework	65
        2. Methodology Used to Evaluate the Adoption of Controls	66
        3. Types of Costs Considered	70
        4. Discount Rate	71
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                          TABLE OF CONTENTS
                               (Continued)
     B. Cost Results	72

       1. Foam  	74
       2. Refrigeration	74
       3. Solvents	75
       4. Aerosols	76
REFERENCES	77

APPENDIX A. MINISTERIAL DECREE NO. 977/1989	79

APPENDIX B. EGYPT'S TECHNICAL EXPERIENCE IN CONVERTING
           A FORMER CFC-PROPELLANT AEROSOL PLANT TO A
           HYDROCARBON-PROPELLANT PLANT 	81

APPENDIX C. ONE EGYPTIAN COMPANY'S COST TO CONVERT FROM CFC-BASED
           AEROSOL PRODUCTION TO LPG-BASED PRODUCTION 	97

APPENDIX D. COSTS PER KILOGRAM CALCULATIONS FOR CONTROLS USED
           TO PHASE OUT CFC USE	99
                                  -iii-

                   • • •  Eavot Case Studv. First Edition. June 1990 • • •

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                                  LIST OF EXHIBITS
Exhibit ES-1.  Egypt: Distribution of CFC Consumption  	vi

Exhibit ES-2.  Egypt: Halon Consumption by End Use  	viii

Exhibit ES-3.  Costs to Egypt of Phasing Out CFC Consumption	x

Exhibit 1-1.    Ozone Depletion Potential (OOP) and Global Warming Potentials (GWP)
             of CFCs and Halons  	6

Exhibit I-2.    Helsinki Declaration on the Protection of the Ozone Layer  	8

Exhibit I-3.    Projected CFC Consumption in Egypt 	11

Exhibit 11-1.    Egypt: Distribution of CFC Consumption	14

Exhibit II-2.    Distribution of CFC Consumption in Egypt in 1989	15

Exhibit II-3.    Egypt: CFC-11  Consumption by End Use	16

Exhibit II-4.    Egypt: Halon Consumption by End Use  	17

Exhibit II-5.    Purchase and Selling Prices for Imported CFCs and Halons  	18

Exhibit 111-1.   Major Manufacturers of Household Refrigerators in Egypt  	21

Exhibit III-2.   Structure of the Foam Plastic Industry in Egypt  	23

Exhibit III-3.   Major Manufacturers of Pesticide Aerosols in Egypt	25

Exhibit IV-1.  Options to Reduce CFC Use  	30

Exhibit VI-1.  Expected Reduction in Use of CFCs After Adoption of Controls	69

Exhibit VI-2.  Costs to Egypt of Phasing Out CFC Consumption	73
                                         -iv-

                       • • •  Egypt Case Study, First Edition. June 1090  • • •

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                               EXECUTIVE SUMMARY
    Since the world became aware of the problem of ozone depletion, Egypt has played a
leading role in the international effort to protect the stratospheric ozone layer. Ambassador
Essam Hawas of Egypt played a pivotal role in the preparation of the Vienna Convention.  Dr.
EI-Mohamady Eid, Chairman of the Egyptian Environment Affairs Agency, was active in
designing and drafting the Montreal Protocol on Substances that Deplete the Ozone Layer.
Egypt was the seventh country to sign and ratify the Protocol and has been working
aggressively to reduce its consumption of chlorofluorocarbons (CFCs). In the early part of
the last decade, before the Vienna Convention was drafted, public-sector companies (state-
owned enterprises) manufacturing pesticide aerosol products made a complete switch from
CFCs to hydrocarbons in response to wdrldwide concern over ozone depletion. This switch
led to a significant decline in CFC usage in Egypt between 1982 and 1986.  In addition, the
Ministry of Industry issued a decree on November 8,1989, that banned the use of CFCs in
aerosols starting in January 1991.

    Egypt does not produce any of the Group I controlled substances (CFCs) addressed by
the Montreal Protocol. Demand is met completely through importation.  Egypt consumed a
total of 2,375 metric tons of CFCs in 1989. Exhibit ES-1 presents the 1989 CFC consumption
pattern for Egypt. The Egyptian Environment Affairs Agency forecasts that in the absence of
Protocol restrictions CFC use could grow at 5 percent annually through the year 2000.
                                         -v-
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                   Exhibit ES-1
Egypt:  Distribution of CFC Consumption
       (Based on Actual Tons Consumed in 1989)
                                CFC-12 (36.4%)
                                      865 tons
       CFC-11 (60.4%)
          1435 tons
                   Total: 2,375 MT
                                           CFC-114 (2.7%)
                                              63 tons

                                           CFC-113 (0.5%)
                                               12 tons
  Source:  EEAA1990b,c
                      -vi-
         * * • Fmmt C»« Sn/rfv Pint Erlitinn Juno 1000 • • •

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    Egypt also does not produce any of the Group II controlled substances (halons)

addressed by the Montreal Protocol. The total consumption of 1,000 metric tons in 1989 was

met through importation.  Exhibit ES-2 presents the halons consumption pattern in Egypt. In

addition to the Group I and Group II controlled substances, Egypt also consumes limited

quantities of methyl chloroform and carbon tetrachloride.  These ozone-depleting substances

are likely to be regulated under the amended Protocol.



    Two scenarios, which assume a different annual increase in CFC use (in the absence of

Protocol restrictions) and  different costs of implementing alternatives, were used to calculate

the costs to Egypt of phasing out the use of CFCs:
    n   Scenario 1: Likely Growth Rate • Likely Cost.  CFC use grows at an annual rate
        of 5 percent in the period 1990-2000 and at 2.5 percent per year in the period 2001 -
        2010 in the absence of Protocol restrictions; the costs of implementing the substitute
        technologies and using alternative chemicals is 5 percent higher in Egypt compared
        to the U.S.

    n   Scenario 2: Likely Growth Rate - High Cost. CFC use grows at an annual rate of
        5 percent in the period 1990-2000 and at 2.5 percent per year in the period 2001 -
        2010 in the absence of Protocol restrictions; the costs of implementing the substitute
        technologies and using alternative chemicals is 30 percent higher in Egypt
        compared to the U.S..
    The costs of implementing options could be higher in Egypt 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.
                                         -vii-

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                  Exhibit ES-2
Egypt: Halon Consumption by End Use
          (Based on Actual Tons Consumed In 1989)
        Private Sector (80%)
             800 tons
  (hotels/computer facilities/buildings)
                                  Public Sector (20%)
                                     200 tons
               Total: 1,000 MT
Source: EEAA1990C
                      -viii-
         • • • Eavot Case Studv. First edition, Junt 1990 • • •

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    The estimated cost to Egypt to phase out the consumption of CFCs ranges from $30.52
million to $37.76 million.  Exhibit ES-3 presents the distribution of costs by end use for the
period 1990-2010.

    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 discharges.

    Egypt demonstrated her commitment to the protection of the  global environment by
being one of the first countries to significantly reduce the use of CFCs in aerosol products in
the early 1980s.  Egypt has played a leading role over the last ten years in establishing an
international framework for protecting the ozone layer.  Egypt will continue to  be a leader in
global efforts to protect and preserve the environment.
                                          -IX-
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Exhibit ES-3.  Costs to Egypt of Phasing Out CFC Consumption
                   (millions of U.S. dollars)
Compound
CFC-11


CFC-12


CFC-11 3
CFC-11 4



End Use
Aerosols
Refrigeration
Foams
Subtotal
Aerosols
Refrigeration
Subtotal
Solvents
Aerosols
Refrigeration
Subtotal
TOTAL
Scenario 1 Scenario 2
Likely Growth Rate/ Likely Growth Rate/
Likely Cost High Cost
(1990-2010) (1990-2010)
0.0 0.0
8.75 10.87
21.11 26.07
24.86 36.94
0.0 0.0
0.31 0.39
0.31 0.39
0.03 0.03 0.03 0.03
0.0 0.0
0.32 0.40
0.32 0.40
30.52 37.76
                              -X-
           •  • • Emtnt Case Studv Ftr
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                           CASE STUDY PROJECT TEAM

Leadership and Data Management:

    Dr. EI-Mohamady Eid, Chairman, Egyptian Environment Affairs Agency (EEAA)
    Eng. Mohamed Farouk Bedewi et al., EEAA

Consultants

    Dr. Ahmed Amin Ibrahim
    Eng. Salwa EI-Tayeb
    Dr. Galal Hassan
    Dr. Sayed Mishaal

Data Collection and Industrial Cooperation:

    General Organization for Industrialization  (GOFI)

         Dr. Ismail Abdel Latif
         Eng. Mohamed Oweiss
         Mr. Aly Fahmy
         Eng. Farouk Mohsen
         Eng. Hazem Abdel Wahab

    Industrial Control and Survey Authority
    The Chemical Authority
    The Federation of Industry
    Public Industrial Companies

         Eng. M. Badr, Ideal Co.
         Eng. A. Abu Zeid et al., KZ Pesticides Co.
         Eng. A. El-Sawah et al., Koldair Co.

    Private Industrial Companies

         Dr. M. Fathi Azouz, UTAC Co.
         Eng. Aly EI-Borolossy et al., Taki Foam Co.

Technical Advisors:

    Dr. Stephen 0. Andersen, U.S. Environmental Protection Agency
    Ms. Elizabeth Creel, U.S. Environmental Protection Agency
    Mr. Sudhakar Kesavan, ICF Incorporated
    Mr. Farzan Riza, ICF Incorporated
    Ms. Laura Tlaiye, ICF Incorporated

Project Coordination and Logistics

    Dr. Omar EI-Arini, Science Office, U.S. Embassy, Cairo, Egypt
                                        -xi-

                      • • •  Egypt Case Study, First Edition, June 1990

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                         -XII-




• •  *  Egypt Case Study. First Edition, June 1990  • •  •

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I. INTRODUCTION

     A. Background

     From the moment the world became aware of the problem of ozone depletion, The Arab

Republic of Egypt1 has played a leading role in the international effort to protect the

stratospheric ozone layer. Egypt was the seventh country to sign and ratify the Montreal

Protocol. Ambassador Essam Hawas of Egypt played a pivotal role in the preparation of the

Vienna Convention2.  Dr. EI-Mohamady Eid, Chairman, Egyptian Environment Affairs Agency

(EEAA) was an active participant in the discussions leading to the drafting of the "Montreal

Protocol on Substances that Deplete the Ozone Layer."

     On February 23,1981, the Egyptian Ministry of Industry (MOI) received an alert from the

U.S. Environmental Protection Agency (EPA) via the Embassy of Egypt in Washington, D.C.,

regarding the harmful human health and environmental impacts resulting from the depletion of

the stratospheric ozone layer.  In response to this alert, the MOI appointed an ad hoc

committee (Decree, MOI-638/81) that included representatives of the CFC consumer

industries such as the refrigeration and air conditioning, aerosols, and plastics industries.

The committee was reconstituted (Decree MOI - 446/86, Ahmed Amin 1987), and expanded to

include other concerned bodies such as the Federation of Industry, the Ministry of Health,

EEAA, and the General Organization for Standardization. Dr. Ahmed Amin Ibrahim, at that

time Undersecretary of State, Ministry of Industry, acted as the technical rapporteur to this

committee.

     The committee performed a number of technical and economic studies, which resulted

in the following recommendations:
   1 Referred to in the rest of this report as 'Egypt.1
   2 His Excellency Mr. Essam Hawas is currently the Ambassador of the Arab Republic of Egypt to
Qatar.


                                         -1-

                            Egypt Case Study, First Edition, June 1990

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          No new permits or licenses should be given to projects that shall use CFCs in
          their production process;

          No extension permits should be given to existing facilities using CFCs;

          Introduction of CFC substitutes that are locally available or abundant and easy to
          produce should be encouraged;

          The possibility of introducing legislation banning the use of CFCs in such end
          uses where substitutes are readily available and cost effective should be studied;

          The possibility of imposing taxes on CFC importation and providing incentives for
          substitutes should be considered; and

          A procedure for the disposal of salvaged equipment containing CFCs (e.g.,
          refrigeration equipment) should be developed.
     In addition, the Ministry of Industry issued a decree banning the use of CFCs in

aerosols beginning January 1991 (see Appendix A).

     The Egyptian Environment Affairs Agency (EEAA) and the U.S. Environmental Protection

Agency (EPA), in cooperation with Egyptian industry, jointly undertook a national case study

whose purpose was threefold:

     (1)   to estimate current and future demand for CFCs, halons and other ozone-
          depleting substances, including methyl chloroform and carbon tetrachloride;

     (2)   to analyze the specific uses of these substances;  and

     (3)   to evaluate controls options and costs of reducing the use of these substances in
          Egypt.


     This report, which represents the results of this case  study, describes the technical and

financial needs of Egypt as Egypt 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

Mexico and Brazil. The United Kingdom is cooperating with  India; Canada with Malaysia,

Finland with China (through the United Nations Development Programme), Sweden with

Kenya, and Venezuela is conducting its own case study.
                                          -2-

                            Egypt Case Study, First Edition, June 1990

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     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 Egypt's policy regarding protection of the stratospheric
     ozone;

     Section II describes the consumption of CFCs and other ozone-depleting substances in
     Egypt;

     Section III characterizes current end-use consumption of CFCs and halons in Egypt;

     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 cost-effective measures Egypt can adopt to reduce CFC
     consumption immediately; and

     Section VI describes the costs to Egypt of reducing consumption of ozone-depleting
     substances.
     B. The Role of Chlprofluorocarbons and Halons in Stratospheric Ozone Depletion

     Stratospheric ozone shields the earth from harmful ultraviolet (UV) radiation.  Increasing

concentrations of man-made chemicals, including chlorofluorocarbons (CFCs) and halons, as

well as 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,

refrigerants for cooling applications, cleaners for electrical and metallic parts, aerosol



                                         -3-

                            Egypt Case Study, First Edition. June 1990

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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 ozone molecules. A  single chlorine atom can destroy over 100,000 ozone

molecules.



     C. The Montreal Protocol and Subsequent Developments

     In September 1987, 56 nations and the European Economic Community participated in

negotiations that led to an  agreement in Montreal to reduce the use of CFCs and halons.

The Protocol  on Substances that Deplete the  Ozone Layer was signed in Montreal, Canada,

on September 16, 1987, and 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



                                          -4-

                            Egypt Case Study, First Edition, Juno 1090

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                    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.

     Exhibit 1-1 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 programs 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 control

measures and adjust them where, and when, appropriate based on new scientific, technical,

economic, and environmental information.

     Increasing evidence suggests 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, consisting of over 100 of the world's leading

atmospheric scientists, examined both global ozone changes  and evidence concerning the
                                          -5-

                            Egypt Case Study. First Edition. June 1990

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Exhibit 1-1. Ozone Depletion Potential (OOP) and Global Warming Potential (GWP) of CFCs and
Halons
                                                              OOP Relative    GWP Relative
                 Substance                                    to CFC-11 *      to CFC-11 •
                                                                              (Mass Basis)
Controlled by the Current Montreal Protocol

Group I Substances:

CFC-11         Trichlorofluoromethane                               1.00             1.00
CFC-12         Dichlorodifluoromethane                              1.00             2.67
CFC-113       1,1,2-Trichloro-1.2,2-trifluoroethane                     0.82             1.09
CFC-114       1,2-Dichlorotetrafluoroethane                          0.76             2.89
CFC-115       Chloropentafluoroethane                              0.43             9.69

Group II Substances:

Halon-1211     Bromochlorodifluoromethane                          3.0
Halon-1301     Bromotrifluoromethane                              10.0             2.12
Halon-2402     Dibromotetrafluoroethane                             6.0

Other Substances of Concern not Controlled by the Current Protocol

CCI4           Carbon Tetrachloride (tetrachloromethane)             1.11              0.39
MCF           Methyl Chloroform (1,1,1 -Trichloroethane)              0.11              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 aU 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 warming 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.
                                             -6-

                              Egypt Case Study, First Edition, June 1990

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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 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 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 concerning a complete
phase-out of CFCs and non-essential  halons and restrictions on other chlorinated
compounds began. 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 I-2).
     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 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 halons by the year 2000, allowing

                                         -7-
                            Egypt Case Study, First Edition, June 1990

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          Exhibit 1-2.  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.                                                     	
                                          -8-

                            Egypt Case Study, First Edition, June 1990

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developing countries a 10-year grace period for compliance.  It is also likely that methyl

chloroform and carbon tetrachloride will be added to this list of controlled ozone-depleting

substances.

     D.    The Revised Montreal Protocol and Egypt's Policy on Stratospheric Ozone
           Protection

     Exhibit I-3 shows the historical and projected consumption of CFC-11, CFC-12, CFC-

113, and CFC-114 in Egypt,3 assuming no controls were imposed (upper line) and a

reduction schedule (stepped line), which represents the likely schedule for complying with the

Montreal Protocol.4  CFC consumption dropped between 1982 and 1985 because

manufacturers of aerosol products switched to alternative propellants such as liquified

petroleum gas (LPG). CFC consumption rose after 1985 because of an increase in demand

for CFCs for foam-blowing applications.  Industry sources predict that CFC consumption will

grow at an annual rate of 5 percent between 1990 and the year 2000.

     This analysis is based on the assumption that Egypt will comply with the Montreal

Protocol  by:

     (a)   freezing 1999 CFC consumption5 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.
   3 Egypt does not produce or import CFC-115.

   4 The revised Protocol may utilize stepped reductions or other phase-out schedules. The
schedule shown in Exhibit I-4 is an example based on the current Protocol design.

   5 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.
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      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. Egypt consumes a limited quantity of both these ozone-depleting
substances. No information was available on the exact quantities consumed.
      Egypt 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 1-3, Egypt could increase CFC use for as long  as 10 years
before beginning reductions in use.
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  10,000
   8,000
c  6,000
o
o
   4,000 -
   2,000 -
                               Exhibit  1-3

              Projected CFC Consumption in Egypt
 (CFC-11, CFC-12, CFC-113, and CFC-114)
                                  I	I	  	I	I	I	  	I	L_ .
           1984
1988
1992
1996    1999
2003
2008 2010
           No Controls  Current Montreal Protocol  Revised Montreal Protocol
                               -B-
                 CFC use reduced due to switch away from CFCs in Aerosol Products

                 CFC use increased due to increasing use in Foam Products
Source:  EEAA 1990b

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II.   CONSUMPTION OF CHLOROFLUOROCARBONS AND OTHER OZONE-DEPLETING
     COMPOUNDS IN EGYPT

     This section describes the consumption in Egypt of Group I and Group II controlled

substances6.  Egypt does not produce any CFCs and halons; its local demand is met via

importation.  Exhibit 11-1 presents the distribution of CFC-11, CFC-12, CFC-113, and CFC-114

consumed in Egypt. Exhibits II-2 and II-3 show total CFC consumption by end use. Egypt

consumed 2,375 metric tons of CFCs in 1989 (EEAA 1990b and 1990c). Refrigeration

accounted for the largest use of CFCs, 38.6 percent; followed by foam, 35.8 percent;

aerosols, 25.1 percent; and solvents, 0.5 percent.

     Exhibit II-4 shows the distribution of halon consumption in Egypt in 1989 by end use.  It

is estimated that in  1989 Egypt consumed 1,000 metric tons of halons. The public sector

accounted for approximately 20 percent of consumption, and the private sector (hotels,

computer facilities, and buildings) accounted for the remaining 80 percent.  Exhibit II-5

presents price data for CFCs and halons consumed in Egypt. These prices include a 7

percent import tariff.
   6 No data was available on the consumption of methyl chloroform and carbon tetrachloride in
Egypt


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                   Exhibit 11-1
Egypt: Distribution of CFC Consumption
        (Based on Actual Tons Consumed in 1989)
       CFC-11 (60.4%)
           1435 tons
                                 CFC-12(36.4%)
                                       865 tons
                    Total: 2,375 MT
                                            CFC-114(2.7%)
                                               63 tons
                                           r CFC-113 (0.5%)
                                                12 tons
   Source: EEAA1990b,c
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             Exhibit 11-2. Distribution of CFC Consumption in Egypt in 1989
                                     (metric tons)
End Use
Aerosols
Refrigeration
Foams
Solvents
TOTAL
CFC-11 CFC-12
60 (4%) 486 (56%)
526 (37%) 379 (44%)
849 (59%)
-
1 ,435 865
CFC-11 3 CFC-11 4
50 (79%)
13(21%)
-
12(100%)
12 63
All CFCs
Combined
596 (25%)
918(39%)
849 (36%)
12(<1%)
2,375
Source: EEAA 1990b and 1990c.
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                 Exhibit 11-3
 Egypt: CFC-11  Consumption by End Use
        (Based on Actual Tons Consumed in 1989)
      Foams (59%)
       849 tons
                         Refrigeration (37%)
                          526 tons
                                 Aerosols (4%)
                                   60 tons
Total: 1.435MT
 Egypt: CFC-12 Consumption by End Use
       (Based on Actual Tons Consumed in 1989)

         Aerosols (56%)
             486 tons
                               Refrigeration (44%)
                                379 tons
                                Total: 865 MT
Source: EEAA1990b
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                  Exhibit 11-4
 Egypt: Halon Consumption by End Use
          (Based on Actual Tons Consumed In 1989)
        Private Sector (80%)
             800 tons
   (hotels/computer facilities/buildings)
                                  Public Sector (20%)
                                      200 tons
                Total: 1.000MT
Source: EEAA1990C
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        Exhibit 11-5. Purchase and Selling Prices for Imported CFCs and Halons
Compound
CFC-1 1
CFC-12
CFC-1 13
CFC-1 14
Halon
Selling Price
(£E per kg)
£E5.0
£E7.0
EE14.0
£E 12.0
£E 45.0
Purchase Price3
(£E per kg)
£E 4.25
£E 5.95
EE11.90
£E 10.20
£E 38.25
Corresponding13
Purchase Price
(US $ per kg)
$1.60
$2.25
$4.49
$3.85
$14.43
a Custom Duties of 7 percent inclusive.
b Exchange rate: $1.00 U.S. is approximately equal to £E 2.65.
Source: EEAA 1990c.
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III.  TECHNOLOGY AND EQUIPMENT CHARACTERISTICS IN CURRENT END USES
     Many different industries and applications use CFCs, halons, and other ozone-depleting
substances in Egypt:
     •    Commercial and Residential Refrigeration,
     •    Air Conditioning,
     •    Aerosols,
     •    Sterilization,
     •    Solvent Cleaning,
     •    Foams, and
     •    Halon Fire-Extinguishing Agents.
     Chapter II showed the distribution of CFC and halon consumption in Egypt by end use.
This chapter describes the different applications in which CFCs or halons are used.

     A.   Commercial and Residential Refrigeration and Air Conditioning
     Egypt began using CFCs in refrigeration applications around the 1930s. At that time
most of the common household refrigerators operated with pre-prepared ice  blocks, which
were produced in ice plants using ammonia as a refrigerant. These types of refrigerators still
exist in rural villages in Egypt.
     Modern refrigerators that use CFCs were first introduced in Egypt in 1962 by the Ideal
Company (a public sector company). The Ideal Company produces refrigerators and window
air conditioning units.  In 1989 in Egypt approximately 918 metric tons of all types of CFCs
were used in refrigeration and air conditioning units (EEAA 1990b).
          1.  Commercial Refrigeration
          CFCs are used as refrigerants in the following kinds of commercial systems in
Egypt:
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           Retail food storage, used to refrigerate food and beverages in grocery and
           convenience stores;

           Chillers, air conditioning systems in large commercial and industrial buildings,
           including office buildings, hospitals, schools, and factories; and

           Cold storage, refrigerated spaces such as warehouses that are used to store
           meat, produce, dairy products, and other perishable goods.
     The stock of chiller units operating in Egypt is estimated at 5,000 units; yearly

production capacity is 50 units. CFCs are released from refrigeration systems and air

conditioners during (1) manufacturing (during leak testing, reworking, and shipping); (2)

installation; (3) use and servicing on-site; and (4) product disposal. CFC emissions that

occur during use, servicing, and disposal far exceed emissions that occur during

manufacturing and installation.

          2.  Residential Refrigeration

          Residential refrigeration includes home refrigerators, freezers, and other small

refrigerated appliances such as ice machines and dehumidifiers.  There are seven major

refrigerator manufacturers in Egypt with a total production capacity of one million units.

Refrigerators produced in Egypt come in several sizes:  5, 8,10, 12, and 14 cubic-foot

capacity.  Exhibit 111-1 shows the major manufacturers of refrigerators in Egypt. Ideal

Company accounts for about 75 percent of the market (EEAA 1990b).

          3.  Air Conditioning

                a.  Comfort Air Conditioning Units

                The use of window air conditioning units in Egypt has increased rapidly in

the last 10 years. Window air conditioning units use HCFC-22 as the refrigerant.  It is

estimated that the total number of window air conditioning units installed per year is 130,000

units; there are about 475,000 units in operation.  Koldair Company is the main public-sector

company producing these units. Other private-sector companies that are joint ventures with



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         Exhibit 111-1. Major Manufacturers of Household Refrigerators in Egypt
Manufacturer8
Ideal Company
EI-Dowlya Company
EI-Alamya Company
Kriazy Company
El-lslamia
Super Bbosh
TOTAL
Production Caoacrtv
Refrigerators
750,000
45,000
32,000
40,000
32,000
-
899,000
(units)
Freezers
-
15,000
48,000
-
8,000
20,000
91,000
a There are a number of small-scale manufacturers that produce custom-made refrigeration
units. The use of CFCs by these smaller manufacturers is estimated to be minor.

Source: EEAA1990b.
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SAS, Carrier, and Mitsubishi include Miraco Company and EI-Dalia Refrigeration company.
The Montreal Protocol does not control the use of HCFCs.  This sector, therefore, is unlikely
to be affected by Protocol restrictions.
                b. Mobile Air Conditioners
                CFC-12 is used as the refrigerant in mobile air conditioners to cool the
passenger compartments of automobiles, trucks,  buses, and railway wagons used in Egypt.
Of the 1 million automobiles operating in Egypt, only about 10,000 (or 1 percent) have
factory-installed air conditioners.  In addition, 2,000 tourist buses, 1,000 large railway wagons,
and 10,000 small railway wagons use mobile air conditioners (EEAA 1990c).


     B. Foams
     Egypt uses CFC-11  as a blowing agent to produce rigid and flexible polyurethane foam
and rigid polystyrene foams.  Exhibit III-2 shows the types of foams produced in Egypt.
Flexible polyurethane foam is used in furniture, bedding, carpet underlays, automotive
interiors, and in other transportation seating applications. Rigid polyurethane foam is used for
insulation  in refrigerators, freezers, buildings, tanks, pipes, and doors and in packaging.
Rigid polystyrene foam is used for insulation in buildings and refrigeration units and in
packaging used  for food and agriculture products.
     There are 31 facilities producing foams in Egypt (EEAA 1990b). CFC producers sell
blowing agents and CFCs to formulators who, in  most cases, mix them with other raw
materials to create 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

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               Exhibit 111-2.  Structure of the Foam Plastic Industry in Egypt
  Product
              Major Applications
  No. of
 Existing
Factories
Polyurethane

      Flexible



      Rigid
Rigid Polystyrene
Mattresses, furniture, packaging

Mattresses, furniture, chair seats

Heat insulation, packaging, seats, and supports

Heat insulation for walls, cooling units
(refrigeration)

Heat insulation for buildings and cooling units,
packaging

Packaging for fragile items, food, and agricultural
products

Linings for ceilings, walls, and floorings; decorations;
packaging
     2

     3
TOTAL FACTORIES
     7

     3


    31
Source:  EEAA1990b.
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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.

     C. Aerosols
     Aerosols using CFCs as propellants and solvents were introduced in Egypt in the 1960s
in various products, including insecticides, cosmetics, paints, etc.  Economic growth and
increased consumer demand resulted in a surge in aerosol manufacturing facilities. The two
main subsectors of the Egyptian aerosols industry are the pesticides and cosmetics
industries.
          1. Pesticides
          The Egyptian pesticide aerosols industry has a production capacity of 55 million
units. The common can sizes in Egypt are 12,14, and 16 ounces.  Currently, all public-sector
companies use liquified petroleum gas (LPG) instead of CFCs to manufacture pesticide
aerosols products. Exhibit III-3 lists the major manufacturers of pesticide aerosols in Egypt
and the production capacity of each. EI-Nasr Intermediate Company, the largest pesticide
aerosol manufacturer,  also produces some personal care products. This company, which has
a production capacity  of 15 million units per year, uses LPG instead of CFCs in all of their
pesticide aerosols. Appendix B describes the steps EI-Nasr Chemical undertook to convert
from CFC-based aerosols to  LPG-based aerosols (EEAA 1990b).
     Kafr El Zayat Company (KZ) is also a major manufacturer of pesticide aerosols, with
production capacity of about 8 million units per year. KZ was the first company to switch to
LPG in 1984. Appendix C describes the costs incurred by Kafr El Zayat when converting from
CFC-based aerosols to products propelled by LPG.
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            Exhibit 111-3. Major Manufacturers of Pesticide Aerosols in Egypt


                                                         Annual
                                                  Production Capacity8
          Company                                 (million units)

       EI-Nasr Intermediate                                   15

       Kafr El Zayat                                          8

       Johnson Wax-Egypt

       Dexan

       Sox

       Giza Chemical

       El Shark                                              6

       El Watanya

       Gelica

        TOTAL                                            55
a Although no information on production capacity was available for six of the nine major
manufacturers of pesticide aerosols, total capacity for all manufacturers is known to be about
55 million units per year.

Source: EEAA1990b.
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     The Johnson Wax-Egypt Company's facility, which began aerosol production in the
1980s, was designed and built to manufacture aerosol products propelled with LPG. The
design of the facility incorporates all the important elements necessary to manufacture LPG-
based aerosol products, such as safety and fire hazard features, and can be used as a
"model" for facilities of this kind.
     There are a number of other small- and medium-sized pesticide aerosol manufacturers
such as Dexan, Sox, Giza Chemical, El Shark, El Watanya, and Gelica. Some of these
companies use CFCs in the manufacture of their aerosol products (EEAA 1990b).
          2. Cosmetics
     Egyptian manufacturers of aerosols use greater amounts of CFCs than do
manufacturers of pesticide aerosols.  The United Trading and Agency Corporation, a
subsidiary of El Beleidy Company, a private-sector enterprise, is the major producer of
cosmetics aerosols products, with an 85 percent market share. The company manufactures
cosmetics under license from a variety of European manufacturers which specify the
formulation.  Most of the critical ingredients are imported and formulated at the company's
facilities in Cairo, which are undergoing major expansion.
     United Trading and Agency Corporation is also a major exporter of cosmetics aerosol
products.  The main export market, accounting for 50 percent of aerosol production and 70
percent of all cosmetics products manufactured by the company, is the Soviet Union.  The
Soviet importers have informed the company that starting in January 1991 they will not accept
any aerosol products that contain CFCs. The company, therefore, has been advised by its
licensors to switch to hydrocarbons-based propellants (EEAA 1990c).
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     Other manufacturers of cosmetics aerosols include the Sugar and Refinery Company,
Shabrawishy Company, Lafayette Company, Wella Company, Yasmina, New Farm, Lactuel,
and Parafico (EEAA 1990b and 1990c)7.

     D.   Solvents
     There is a limited amount of CFC-113 used for solvent cleaning applications in Egypt.
CFC-113-based solvents are mainly used for metal-cleaning and electronics-cleaning
applications.  Chlorinated solvents are also used in Egypt. No data is currently available on
the amounts and types of chlorinated solvents used.

     E.   Halons
     About 1,000 metric tons of halons are used in  Egypt each year (EEAA 1990c).  Most of
the halon consumed (80 percent) is used for fire protection in central systems in  buildings,
computer facilities, chemical plants, etc. The public sector accounts for the remaining 20
percent of the use.  No information is available on the breakdown of halon use for public
sector applications.
   7 No data is available on the production capacity of these facilities.
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IV.   METHODS FOR REDUCING CHLOROFLUOROCARBON USE: RECYCLING.
     CHEMICAL ALTERNATIVES. ALTERNATIVE TECHNOLOGIES. AND PRODUCT
     SUBSTITUTES
     Methods for 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 reviews 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 Egypt, the primary sectors to target for recycling and conservation practices are

refrigeration and foams.  Conservation in the solvents and sterilization sectors is also

discussed.

          1. Refrigeration

          Refrigeration accounts for 38.6 percent of total CFC use in Egypt.  Recycled CFCs

can replace the demand for virgin CFCs in the after market and can provide immediate

reductions in CFC use in residential refrigeration, industrial/commercial refrigeration, and

automobile air conditioning.
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                                                       EXHIBIT IV-1
                                              OPTIONS TO REDUCE CFC USE
  End Use
Refrigeration
 (CFC-11, CFC-12,
 CFC-114, CFC-115)
Foams (CFC-11)
Solvent Cleaning
 (CFC-113)
Recycling and Conservation	

  Refrigerant Reclamation and
  Recycling Units (on-site)

  Central Recycling Facility (off-site)
  Carbon Adsorption
  Improved Operating Practices
  Engineering Controls
  On-site Recycling Systems
  Off-site Recycling Systems
Chemical Alternatives

  HFC-1523
  HFC-1343
  Ternary Blends*
  NARMS
  Ammonia
  HCFC-123
  HCFC-22
  CFC-500, CFC-502

  HCFC-123/HCFC-
    141b

  HCFC-142b/HCFC-22
  HCFC-22
  Methylene Chloride

  Organic solvents
    (e.g., alcohols)

  HCFC-225ca
  HCFC-225ab
  HCFC-141b/HCFC-
    123/methanol
    Blend

  Isopropanol Azeo-
    tropes
Alternative Technologies    Product Substitutes

Two Evaporators
Thicker Walls
Vacuum Insulation
 Increased Water
  Substitution

 AB Process
 CO2 Foam Blowing
 New Polyols

 Aqeuous Cleaning
 Low solids/'no clean'
  Flux

 Inert Gas Wave
  Soldering

 Terpene Cleaning
Natural & Synthetic
 Fiber Materials

Vacuum Panels
Aerosols
(CFC-11, CFC-12,
CFC-11 3)




Sterilization Cryogenic Recovery


Hydrocarbon
Propellents

HCFC-142b/HFC-
1528/HCFC-22

HCFC-22/HCFC-123
Compressed Gases
COjj/EO
HCFC Blend/EO
Pumps
Mechanical
Pressure
Dispensers

Solid sticks
Roll-ons
Steam Sterilization
Off-site Central Facilities

  One of the promising ternary blends has the following composition: HCFC-22 (40%). HFC-152a (40%), and HFC-124 (20%).

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               a. Residential, Commercial, and Industrial Refrigeration
               Recycling technologies for applications using large quantities of CFG
refrigerants, such as commercial buildings 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 act to prevent venting of the
refrigerant to the atmosphere and  collect refrigerant for reclamation. 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 are that it
reduces CFC emissions to the atmosphere, provides a safe and  economical method of
storing refrigerant during  servicing, and it has an extended lifetime.
     A recycling machine has been developed to service chillers and other large systems
with capacities of 500-5,000 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 the refrigerant while the chiller is in
operation, as well as when it is being serviced and during all downtime. Excess oil and water
in the refrigerant are removed by means of a distillation/separation system. The recycled

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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.  Price will vary

depending on the model size, number of units in the order, and the installation requirements.

     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 the unit's 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 that the technician can visually check

exhausted refrigerant to determine whether damage has been done to the appliance's sealed

system.

                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)8 has announced the first certifications on recovery/recycling equipment

that will properly recycle the refrigerant found in automotive air conditioners. To date, UL has
   8 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.
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certified the recycling equipment of six manufacturers.  The certified equipment complies with
UL Standard 1963 for safety of refrigerant recovery/recycling equipment and the Society of
Automotive Engineers' (SAE) 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
          Foam products represent the second greatest use of CFCs in Egypt, accounting
for 35.8 percent of total consumption. The primary end uses across this  sector are
polyurethane and polystyrene foams.  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 slabstock production (UNEP Foams 1989). Carbon
adsorption technology is available to  successfully capture CFC-11 emissions in this
application.  Carbon adsorption is an efficient recovery/recycling 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

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 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 1989). 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 quantity of CFC-11 sufficient to offset the annual costs of operation  (U.S.
 EPA1990a).
          3.  Solvents
          The solvents sector accounts for 0.5 percent of total CFC consumption in Egypt.
The largest application areas within this sector are  electronics and metal cleaning.
     A first step to significantly reduce consumption and eliminate unnecessary emissions of
CFC solvents is to implement conservation and redovery 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

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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 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 considered in relation to 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 2 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

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 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. 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. Solvents recycled off-site

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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.
          4.  Sterilization
          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 Egypt. The
"alternative technologies" (i.e., alternative methods which involve new processes in each of
the CFC application areas) are presented in Section C.
           1. Ftefriqeration
                a.  Residential Refrigeration
                For residential refrigeration, near- and medium-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 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.

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      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"

replacement.9 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-152a10 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 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.
   9 A 'drop-in" substitute can replace CFCs in existing equipment without requiring conversion or
retrofitting of the equipment.

   10 HFC-152a contains no chlorine and therefore does not deplete ozone.


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               b.  Industrial and Commercial Refrigeration
               For industrial and 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 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 near drop-in substitute for CFC-11 and has an OOP 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. Existing models of the new chiller 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 OOP 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.
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     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 OOP of 0.3. Both CFC-500 and CFC-502 can replace CFC-12
in new equipment for most applications in the industrial sector (UNEP Refrigeration 1989).
               c. Mobile Air Conditioning
               The most viable candidate to replace CFC-12 in mobile air conditioning is
HFC-134a. A non-ozone-depleting chemical11, 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 dependent on  HFC-134a
starting in the 1994 model year.
          2. Foams
          HCFC-123 and HCFC-141 b 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 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-141 b, a
   11  HFC-134a contains no chlorine and therefore does not deplete ozone.

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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 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

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Foodservice and Packaging Institute (FPI) has published the technical details of the food
packaging plant conversions and they are available for distribution worldwide (FP11988).
     Another option that foam manufacturers have explored is the use of hydrocarbons such
as n-pentane, butane, isopentane 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
          CFCs used as aerosol propellants accounted for 25.1  percent of total CFC
consumption in Egypt (data for 1982). A wide variety of alternative  propellants 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 propellant characteristics.
     The most common substitutes for CFCs are the flammable hydrocarbons liquified
petroleum gas, propane, butane and  sometimes n-pentane.  A substantial portion of the
Egypt aerosol industry has already made the switch from CFC propellants to 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

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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.
     Dimethyl ether is another flammable alternative propellant.  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 the cost of
hydrocarbons, but equal or less than the cost of CFCs. Due to its flammability, capital costs
are similar to those for hydrocarbons, except that a more sophisticated explosion-proof
electrical system is needed (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 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).
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          4. Solvents
          This section discusses chemical alternatives for CFC solvents used in electronics
and metal cleaning.  Process modifications, such as aqueous cleaning, are discussed under
Section C, Alternatives Technologies.
               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 that 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.
     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).
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In general, they are volatile and flammable.  Organic solvents are primarily used in small
quantities in well-vented areas or under inert atmospheric conditions.
     Methyl chloroform and carbon tetrachloride are capable of replacing CFC-113 in certain
cleaning applications.  Methyl chloroform's OOP is 0.11 and carbon tetrachloride's OOP is
1.11; both are consumed in large quantities worldwide (UNEP Technology 1989).
     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 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.  These blends, however, are viable options for the near term
only, however, because of the high ozone-depletion potential of the CFC-113 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
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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).  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 currently 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

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"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 switching to pure EO, unless 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 near drop-in for existing "12/88" equipment and could also be used in
"10/90" equipment with minimal changes.  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).
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     Other possible design technologies include machines with totally independent
refrigerator and freezer loops and two-loop, two-compressor configurations with one
compressor motor.
          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 the 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
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equipment and improved ventilation is especially important since carbon monoxide is emitted
as a result of the AB Process.
     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 commercial 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 implementing any alternative technology.
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     Water is an excellent solvent for removing ionic contaminants and water-soluble fluxes.
Water, in combination with a saponifier, can remove non-polar 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
impingement of the water for effectively  cleaning rigid leaded surface-mount components.

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     An alternative to cleaning is the low-solids fluxfno 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 to 35 percent solids content 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
isopropanol, adequate ventilation and fire-suppression systems must be considered.
     A new soldering process, controlled atmosphere wave soldering, operates under a
nitrogen atmosphere and applies finely divided activators via ultrasonic injection. The
carboxylic acid activators include formic acid, acetic acid, citric acid, and adipic acid. Other
processes being developed function on the same principle, except that soldering is carried
out in vacuum instead of in 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

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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
1990).  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).  Because of the low closed-cup flash point (47°C) and potential room temperature
flammability associated with spray mist, cleaning machines using terpene solvents must be
purged with inert gas such as nitrogen to be safely operated. A final point to consider is that
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.

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     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 heaters, dryers, automated parts
handling equipment, solution filtration, and solution recycle and treatment equipment (U.S.
EPA1990b).
     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

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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 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-

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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, 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.
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      D.  Product Substitutes
      One of the surest methods to eliminate the use of CFCs and other ozone-depleting
substances is product substitution. Those sectors in Egypt in which product substitution
could occur are foams and aerosols.
           1.  Foams
           Non-CFC-containing product substitutes currently compete in some subsectors of
the foam market, with the possible exception of appliance insulation. Alternative materials are
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 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.
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     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, and mechanical pressure dispensers, as well as non-spray 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 introduction of 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 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

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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 manual pressurization of 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 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).
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V.   COST-EFFECTIVE MEASURES FOR REDUCING CONSUMPTION OF OZONE-
     DEPLETING SUBSTANCES

     Egypt can reduce 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, Egypt 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 Egypt

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. Also, 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.

     The Egyptian Case Study project team has identified several CFC reduction measures

that can be implemented immediately in Egypt12. These measures satisfy the following

criteria:  technologies are commercially available and the measures are cost effective,

environmentally sound, energy efficient, and represent  viable long-term solutions. These

measures and associated capital costs are listed below. Total capital costs if all measures

are implemented is around $4 million. Cost estimates do not incorporate the operating cost

savings that would result if these measures are adopted.
   12 It is important to note that the projects discussed do not represent the complete list of
measures that could be taken to achieve long-term reductions.


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     1.   Hold workshop on CFC Free Technologies        $ 50,000 - $100,000

     2.   Demonstrate Recycling of CFC-12 in auto Air
          Conditioners                                    $115,000 - $130,000

     3.   Recycle CFC-11 In Chillers                       $60,000

     4.   Substitute Water-Blown Foam for CFC-11 -Blown
          Foam                                           $200,000 - $300,000

     5.   Reduce CFC-12 Charge in Domestic Refrigerators $350,000

     6.   Substitute Hydrocarbons for CFCs in Aerosols    $2,000,000

     7.   Build Ice Plants for Transport of Perishables      $1.200.000	

               TOTAL                                     $3,975,000 - $4,140,000
     1. Hold Workshop on Technologies to Reduce and Eliminate CFC Use

     This 2- to 3-day workshop will enable Egyptian industry representatives to discuss

alternative technologies with international experts. The workshop will involve a seminar and a

demonstration of the alternative technology, including recycling equipment for mobile air

conditioners and chillers and alternative aerosol technologies such as compressed air. The

experts attending this workshop will be available to discuss with individual industry

representatives how each of these technologies might be applied in their own operations.

     •    Cost:  $50,000-$100,000



     2. Demonstrate Recycling of CFC-12 in Automotive Air Conditioners

     The objective of this project would be to train Egyptian technicians in how to recycle

CFC-12 from automobile air conditioners.  Recycling machines could be provided to

dealerships and specialized automobile air-conditioner repair shops.
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          Training                                          $35,000 - $50,000
          20 recycling machines @ $4000                    $80,000
     •    Cost:  $115,000-$130,000

     3.    Recycle CFC Refrigerants in Chillers
     High volumes of  CFC-11 and CFC-12 are emitted from refrigeration equipment due to
improper maintenance practices.  Usually a large portion of 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.
     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. Ten authorized servicing 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: 10 recycling machines @ $6,000 = $60,000

     4.  Substitute Water-Blown Foam for CFC-11-Blown Foam in Refrigerators
     Refrigerator manufacturers in Europe have substituted water-blown foam for CFC-11 -
blown foam in refrigerators and freezers, resulting in a 30-50 percent reduction in the use of
CFC-11.  There are no capital investment costs. For a household refrigerator manufacturing
plant in Egypt, 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
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3-5 percent.  If the Ideal Company, which accounts for 75 percent of the installed domestic
refrigerator capacity, is retrofitted,  it is estimated that the retrofit costs would be $200,000-
$300,000.


     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 as compared to the amount used presently. Conversion of existing
refrigerator manufacturing plants 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: 7 factories @ $50,000 = $350,000.


     6.   Substitute Hydrocarbons for CFCs in Aerosol Applications
     As mentioned earlier, the United Trading and Agency Corporation (UTAC), in Cairo, is
the largest cosmetics aerosol filling and marketing company in Egypt, accounting for an 85
percent share of the cosmetics aerosol market.
     At present the company is engaged in a major expansion of its facilities.  Facilities are
presently located in a suburb of Cairo, but the company will move to an industrial area about
45 kms from Cairo.  The new facility has a capacity of 15 million units as compared to the
existing capacity of 6 million units  and is likely to be ready by September 10,1990. This
expansion and relocation will enable the company to eliminate the risks associated at present
in manufacturing aerosol products in a predominantly residential area.
     The company is also a major exporter of cosmetics aerosols.  The main export market is
the Soviet Union, which imports 50 percent of aerosols  and 70 percent of cosmetics products

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manufactured by the UTAC. The Soviet importers have informed the company that they will
not accept any aerosol products that contain CFCs beginning in January 1991.  The
company, therefore, has been advised by its licensors to switch to hydrocarbons.  To
construct a safe hydrocarbon filling facility will require a significant investment in a tank farm
and a gassing room in addition to  an enhanced ventilation system in the storage area.
     a   Cost: on the order of $2 million

     7.  Build Ice Plants So That Perishables Can Be Transported Across Egypt
     One of the reasons for the use of refrigerated trucks, and therefore the use of CFCs, is
to transport perishables such as fish and vegetables to different markets in Egypt. Instead of
CFCs, ice slabs and crushed ice could be used to keep perishables refrigerated.  Ice plants
could be set up in different parts of the country to make ice easily available. The EEAA
suggests plants could be located in Alexandria, Domiatta  (at the harbor near Port Said), Port
Said, Suez, Fayyum (Lake Qaron), and Sadd el-Ali (Aswan High Dam).
     n    Cost: Six ice plants @ $200,000 = $1,200,000

     In addition, the Case Study Project Team is also examining the feasibility of installing in
various parts of the country small cold storage units and compact crushed ice manufacturing
plants using ammonia as the refrigerant.
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VI.  COSTS OF COMPLYING WITH THE MONTREAL PROTOCOL

     This chapter describes the analytical methods used to estimate the costs to Egypt of

reducing consumption 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 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 shall be available in

the next two or more 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 Egypt

of phasing out consumption of ozone-depleting substances.



     A.  Methodology Used to Compute Incremental Costs

          1. Economic Framework

          This section describes tne economic framework supporting this study.  The

analysis focuses on estimating the net costs of phasing out the use of the controlled

compounds13.  An important step in estimating these costs is assessing the costs borne by

industries currently consuming the controlled substances.

     A  detailed description of the underlying economic framework used for this analysis is

included in the UNEP Economic Assessment of the Montreal Protocol14.  Costs are based

on the changes in consumer welfare and industry profits (consumer and producer surpluses)
   13 For the remainder of this discussion, 'controlled compounds' refers to the substances used in
Egypt 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).

   14 United Nations Environment Programme. Economic Panel Report. Montreal Protocol on
Substances that Deplete the Ozone Layer. July 1989.  Economic Assessment Panel.
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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 reductions 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

     •    cost of each alternative technology.

     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

Egypt if no controls were imposed. The consumption growth rate of 5.0 percent for the

period 1990-2000 and 2.5 percent  for the period 2001 -2010 were used to compute baseline

chemical demand.
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     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:

     a    freeze CFC consumption in 1999 at 1996 consumption levels,

     a    reduce CFC consumption by 20 percent of the 1996 levels by the year 2003; and

     a    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 discharges15.

     The distribution of CFC and halon consumption by end use was shown in Exhibits II-3

and II-4.  Refrigeration consumes approximately 38.6 percent of all CFC consumption. Foams

is next with 35.8 percent; aerosols,  25.1 percent; and solvents, 0.5 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:
      The full costs associated with halon reductions are not included in this edition of the report.


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      •   starting date:  the year in which a technology is first available for adoption;

      •   penetration time: 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 used in 1999,  takes 3 years to reach its maximum market

penetration16, and is applicable to new and existing equipment using CFCs.  Exhibit VI-1

shows the use reduction.  For example, if refrigerant recycling is adopted, CFC use is

reduced by 50 percent for that portion 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
   16 The market here refers to the market for particular end-uses (e.g., commercial/industrial
refrigeration, household refrigerators, etc.).


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                                      EXHIBIT VI-1.  EXPECTED REDUCTION IN USE OF CFCS AFTER ADOPTION OF CONTROLS
Compound End Use
CFC-11 Industrial/Commercial Refrigeration
Insulation Foam
Flexible Foam
Packaging Foam
Aerosols
1 CFC-12 Mobile Air Conditioning
^ Household Refrigerators
* Indus trie l/Comne re ial Refrigeration
J ft
5 ' Aerosols
§ CFC-113 Metal and Electronic Cleaning
« CFC-114 Industrial/Commercial Refrigeration
S
Control
HCFC-123
Recycling
HCFC-H1b/HCFC-123
HCFC-141b/HCFC-123
HCFC-22/HCFC-U2b
Hydrocarbons/Compressed Gases
HFC-134a
Recycling
Ternary B I end/HFC- 152a
Reduce Charge
Ternary Blend
Recycling
Hydrocarbons/Compressed Gases
Aqueous Cleaning
Recycling
HCFC-124
Recyc I i ng
Years to Reach
Start Maximum
Year Penetration
2000
1999
2000
2000
2000
2000
2000
2000
2000
1999
2000
1999
2000
2000
1999
2000
1999
4
3
3
3
3
3
4
3
4
3
4
3
3
4
3
4
3
Use
Reduction
100X
SOX
100X
100X
100X
100X
100X
SOX
100X
SOX
100X
SOX
100X
100X
60X
100X
SOX
Applicable to
New (N) and to New
and Existing (N/E)
N
N/E
N
N
N
N
N
N/E
N
N
N
N/E
N
N
N/E
N
N/E
Aerosols
Hydrocarbons/Compressed Gases
                                                                                  2000
                                                                         100X

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only compete in the "replacement" market. These controls are indicated in Exhibit VI-1 with

"N", which denotes applicability to new equipment only17.

          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), 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 Egypt were derived by adjusting the U.S. costs

per kilogram estimates upward.18 Appendix D presents the dollar per kilogram calculations

for the U.S.  These estimates have been developed based on information provided by

international industry sources and experts on individual technologies.
   17 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.

   18 As explained on the next page, two scenarios were used for the cost calculations.  The
magnitude of the adjustment is stated for each scenario.
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                             Egypt Case Study. First Edition, June 1990

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     It should be noted that producers of the new alternative chemicals (e.g., HCFC-123,

HCFC-141 b) and manufacturers of alternative technologies in Egypt 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 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"19.

     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.
   19 The capital likely to be transferred to Egypt 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.


                                          -71-

                             Egypt Case Study, First Edition, June 1990

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     B.  Cost Results

     The costs to Egypt of phasing out CFC consumption are calculated under two

scenarios:

     •    Scenario 1: Likely Growth Rate - Likely Cost.  CFC use grows at an annual rate
          of 5.0 percent for the period 1990-2000 and at 2.5 percent for the period 2001 -
          2010 in the absence of Protocol restrictions; the costs of implementing the
          substitute technologies and using alternative chemicals is 5 percent higher in
          Egypt compared to the U.S.

     •    Scenario 2: Ukely Growth Rate - High Cost.  CFC use grows at an annual rate
          of 5.0 percent for the period 1990-2000 and 2.5 percent for the period 2001-2010
          in the absence of Protocol restrictions; the costs of implementing the substitute
          technologies and using alternative chemicals is 30 percent higher in Egypt
          compared to the U.S.

     The costs of implementing options could be higher in Egypt 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 Egypt for phasing out the consumption  of CFCs are $30.5

million for Scenario 1 and $37.8 million for Scenario 2 (U.S. dollars).  Exhibit VI-2 presents the

distribution of costs by end use for each scenario for the period 1990-2010. Technologies

that replace the use of CFCs in foams account for 69.1  percent of the social costs; those

replacing CFC use in refrigeration account for 30.8 percent, and those  replacing CFC-based

solvents, 0.1 percent.  (Phasing out aerosol uses of CFCs does  not result in any costs to

society.)  The costs for individual end uses and controls that are part of the phase-out costs

are presented in Exhibit VI-2.
                                         -72-

                            Egypt Case Study. First Edition, June 1990

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Exhibit VI-2.  Costs to Egypt of Phasing Out CFC Consumption
                   (millions of U.S. dollars)
Compound
CFC-11



CFC-12


CFC-11 3
CFC-11 4



End Use
Aerosols
Refrigeration
Foams
Subtotal
Aerosols
Refrigeration
Subtotal
Solvents
Aerosols
Refrigeration
Subtotal
TOTAL
Scenario 1 Scenario 2
Likely Growth Rate/ Likely Growth Rate/
Likely Cost High Cost
(1990-2010) (1990-2010)
0.0 0.0
8.75 10.87
21.11 26.07
24.86 36.94
0.0 0.0
0.31 0.39
0.31 0.39
0.03 0.03 0.03 0.03
0.0 0.0
0.32 0.40
0.32 0.40
30.52 37.76
                             -73-

                Egypt Case Study. First Edition. June 1990

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          1. Foam



          CFC-11 can be replaced with alternative blowing agents composed of a mixture of



HCFC-141b and HCFC-123 in insulation and flexible foam applications and HCFC-22 and
                                                        *


HCFC-142b in packaging foam applications. The use of these alternative blowing agent



mixtures is estimated to cost Egypt between $21.1 and $26.07 million for the period 1990-



2010.



          2. Refrigeration



          Reducing CFC-11 use in refrigeration applications will cost Egypt between $8.75



million and $10.87 million for the period 1990-2010.  This assumes recycling technology is



applied to conserve CFC-11 use and HCFC-123 is used for commercial/industrial refrigeration



applications. The costs of reducing CFC-12 in refrigeration applications shall cost Egypt



between $0.31 million and $0.39 million for the period 1990-2010. These costs assume use of



recycling technology to conserve CFC-12 use and use of the ternary blend or HFC-152a for



household refrigeration applications, and the ternary blend for commercial/industrial



refrigeration. The limited amount of CFC-12 used in mobile air conditioning in Egypt is



phased out using recycling technology and HFC-134a.  Finally, the cost to Egypt of reducing



CFC-114 use in refrigeration applications will be between $0.32 million and $0.4 million. This



estimate is based on using recycling technology to conserve CFC-114 use and using HCFC-



124 for commercial/industrial refrigeration applications.



    The costs to Egypt of reducing CFC-11 is much greater than the costs of reducing CFC-



12 in refrigeration applications, because most of the CFC-12 consumed  in Egypt is for



household refrigeration applications.  Alternative technologies to manufacture household



refrigerators using 50 percent of the CFC-12 refrigerant charge and the use of a ternary blend
                                         -74-



                            Egypt Case Study, First Edition, June 1390

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or HFC-152a instead of CFC-12 result in negligible costs.  The costs associated with these
alternative technologies are offset by the savings as explained below20.
    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
capacity or energy efficiency. Capital costs to retrofit refrigeration manufacturing lines to
accommodate the use of reduced CFC-12 changes 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)  or HFC-152a 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 and HFC-152a is assumed to cost
$9.05/kg.. The use of the ternary blend in household refrigeration results in an annual
decrease in energy consumption of 3 percent, whereas the use of HFC-152a results in an
annual decrease in energy consumption of 7  percent.  Energy savings over the useful life of
the refrigerator (approximately 20 years) offset the increased costs for the ternary blend or
HFC-152a refrigerant.
        3. 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-
   20
      A more detailed explanation of these costs is presented in Appendix C.

                                          -75-
                            Egypt Case Study, First Edition. June 1990

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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 to Egypt of using aqueous cleaning is estimated
at $0.8 million for the period 1990-2010.
        4. Aerosols
        The use of CFC-11, CFC-12, and CFC-114 in aerosol applications in Egypt can be
phased out by using liquified petroleum gas (LPG) or compressed gases such as carbon
dioxide as propellants.  If LPG is the substitute, capital investment will be required for
equipment and machinery such as LPG storage tanks, safety equipment, fire-extinguishing
equipment, alarm systems, and retrofit of filling lines.  If compressed carbon dioxide is used,
new propellant storage tanks and retrofitting of existing filling equipment will be required. A
number of aerosols manufacturers in Egypt have already successfully switched from CFCs to
LPG.  Appendix B describes the steps EI-Nasr company took to convert to LPG technology,
and Appendix C describes the cost borne by Kafr El Zayat, an Egyptian aerosol manufacturer,
in making  the same  conversion. The cost to phase-out CFCs in aerosol applications would
be negligible because the costs saving associated with the use of LPG and compressed
carbon dioxide would offset the capital investment required to implement these technologies.
                                         -76-
                            Egypt Case Study, First Edition, June 1990

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                                   REFERENCES
Ahmed Amin.  1987. "Report on Application of CFCs Substitute and the Feasibility of Its
Application in  Industry."  Dr. Ahmed Amin Ibrahim, Technical Rapporteur of ad hoc committee
on protection  of the stratospheric ozone, Decree MOI-446/86.

Ahmed Amin.  1990. "Some Remarks on Strategies of Limiting the Uses of CFCs," by Dr.
Ahmed Amin Ibrahim. Presented at U.S. EPA Workshop on Integrated Case Studies Carried
Out Under the Montreal  Protocol.

Brox. 1989.  Personal communication between Sudhakar Kesavan, ICF Incorporated and
Murray Brox, Northern Telecom Limited. July 1989.

Carrier. 1990. Carrier Corporation.  Brochure on refrigerant management systems.

EEAA.  1990a. Egyptian Environment Affairs Agency.  Study on CFC Substitutes in the
Industrial Sector in Egypt - Phase I.  April 30,1990.

EEAA.  1990b. Egyptian Environment Affairs Agency.  Study on CFC Substitutes in the
Industrial Sector in Egypt - Phase II. May 19,1990.

EEAA.  1990c. Data provided to Mr. Sudhakar Kesavan, ICF Incorporated, by EEAA Case
Study Team.  May 20-25, 1990.

FPL  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.

Molina, M.J., F.S. Rowland. 1974.  "Stratospheric sink for chlorofluoromethanes: chlorine-
atom catalyzed destruction of ozone."  Nature. 249:810. 1974.

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.

UNEP Aerosols.  1989.  United Nations Environment Programme. Technical Progress on
Protecting the Ozone Layer: Aerosols. Sterilants. and Miscellaneous Uses of CFCs. June 30,
1989.
                                        -77-

                            Egypt Case Study, First Edition, June 1990

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UNEP Foams.  1989.  United Nations Environment Programme. 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. Decreasing and Dry Cleaning Solvents Technical
Options Report. June 30, 1989.

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 AG.  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.

U.S. EPA.  1990c.  U.S.  Environmental Protection Agency.  Proceedings of the U.S. EPA
Workshop on Integrated Case  Studies Carried Out Under the Montreal Protocol. January 15-
17, 1990, Washington, D.C.,  Office of Air and Radiation.
                                        -78-

                           Egypt Case Study, First Edition, June 1990

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                                   APPENDIX A

                        MINISTERIAL DECREE NO. 977/1989
                               ISSUED ON 8/11/1989
                 CONCERNING THE BANNING OF THE USE OF CFCS
             AS A PROPELLANT IN THE VARIOUS AEROSOL PRODUCTS
The Ministry of Industry

After having reviewed Law No. 2/1957 concerning the standardization authority code of
provisions and Law No. 21/1958 concerning the organization of industry and encouraging its
establishment, and the President's decree No. 392/1979 concerning the establishment of the
General Egyptian Authority for Standardization and Products Quality.

and H.E. the Minister of Cabinet and Administrative Affairs' letter No. 1975 dated 19/8/1989
concerning the banning of use of CFCs as propellents in the various aerosol products,

and the Chairman of the General Authority of Standardization and Products Quality's
memorandum dated 8/11/1989 in this concern.
                                   HAS DECIDED
Article (1):  Industrial concerns shall not be approved to use CFCs as propellants in any of
           the various aerosol products.

Article (2):  Industrial concerns currently using CFCs shall be permitted a grace period till the
           close of December 1990, knowing that the said ban shall be applicable as of
           January 1,1991.

Article (3):  This decree is to be issued in the Egyptian Federal Gazette and shall come into
           force the day following its publication.
                           Ministry of Industry
                           Engineer/Mohamed Mahmoud Abdel Wahab
                           (signed)
                                        -79-

                       • • • Egypt Case Study, First Edition. June 1990  • • •

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                 -80-
• • • Egypt Case Study. First Edition, June 1990  • • •

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                                  APPENDIX B

  EGYPT'S TECHNICAL EXPERIENCE IN CONVERTING A FORMER CFC-PROPELLANT
           AEROSOL PLANT TO A HYDROCARBON-PROPELLANT PLANT*
    EI-Nasr company for intermediate chemicals is one of the main aerosol-producing

companies in Egypt. The majority of aerosol products produced are pesticides, but the

company also produces personal care products. The company's total capacity is 15 million

units per year. Described below are the steps that EI-Nasr took to accomplish the conversion

from CFC-based production to production based on liquified  petroleum gas (LPG).



1.  CONVERSION STEPS:

    The following steps were followed to convert the production line for using LPG instead of
CFC-11 and CFC-12 as a propellant:

    •   Production equipment was adapted for using LPG;

    •   The following items were purchased and/or conducted:

            LPG storage tanks
            LPG pumps
            LPG piping and connections
        -   LPG destenching system;

    •   All electric switchboards, motors, and sensors were made flame proof (EX-type);

    •   All lighting systems were changed to EX-type;

    •   Adequate ventilation systems (to prevent LPG gas accumulation) were constructed
        in the following  areas:
* Sayed Meshaal's study entitled "An Optimal Conversion Model for An Aerosols Production
Plant Using LPG as Propellant Instead of CFCs," submitted to the U.S. EPA in 1989, was
based on EI-Nasr's experience.
                                       -81-

                      • • • Egypt Case Study, First Edition. June 1990

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             Production line area
             Gassing room
        -    Warehouses
             Product storage area;

    •   The following warning  systems and fire-fighting systems were put in place or
        enhanced:

             Sprinkler system
             Deluge system
        -    Alarm system
        -    Ventilation;

    •   Adequate warehouses and storage areas were constructed or arranged for.

2. PREPARATION OF LPG STORAGE AREA:

    The storage area was established according to the following considerations:

    •   The international regulations, requirements, and rule for safe handling,
        transportation, and storing of LPG;

    •   The maximum daily off-take required;

    •   The time taken to process an order and to receive deliveries;

    •   The requirements for increasing the production capacity in future.

    As shown in the attached diagram, the  storage area includes the following:

    •   Crude LPG storage tanks:

    •   Destenching columns (adsorbers):

    •   Purified (deodorized) LPG storage  tanks;

    •   Unloading, transfer, and process LPG pumps;

    •   Deluge-sprinkler underground water basin and its pumps;

    •   LPG gas and flame detectors; and

    •   Ex. proof lighting.

    2.1  Crude LPG Storage Area

    Includes three storage tanks manufactured locally, two unloading pumps, and two
transfer pumps.
                                        -82-

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    Erection, piping, the different connections, and engineering supervision were done in-
house.

    Each of the three crude LPG storage tanks have 40,000 liters water capacity.  The total
crude LPG capacity that can be stored is 67 tons.

    All equipment listed above was located under roof. The road tanker vehicle unloading
bay was also located under the same roof.  The area was surrounded by a fence.

    2.2 Destenching Columns

    Due to the presence of the hazardous hydrocarbon gas, a stenching agent (ethyl
mercaptan, sulphur, or dimethyl sulphide) is to be added during the production process in the
oil refinery plants.

    In order to use the propane/butane mixture as a propellent in aerosols, a destenching
(sweetening) process must be done to obtain an acceptable odor and to remove other
impurities.

    The following table shows a typical analysis of Egyptian liquified petroleum gases (LPG),
supplied by Cairo Oil Refinery Co.:

    	Item	             Refinery Spec.      Sample Analysis

    Specific gravity at 60°F                   -                     0.562
    Vap. press, psig at 70°F                  45/50                 47.5
    Propane content % LV.                   25 ± 5               28.6
    Butane content % LF.                    80 + 10              70.3
    Mercaptan PPM                         <10                  <10
    Hydrogen sulphide PPM                  nil

    This elimination takes place by means of three adsorbers arranged in tandem, of which:

    n   The 1st column (A) is filled with silica gel (350 kg).

    D   The 2nd column (B) is filled with activated carbon (about 300 kg).

    •   The 3rd column (C) is filled with molecular sieves (350 kg of type 13x1.6).

The columns (A+B) serve to remove the greater part of water, mercaptans, H2S, and Olefins.
The third column (C) is used for fine purification of the propane/butane mixture.

    The molecular sieves are synthetic alumina silicate crystal powders whose diameters
range from 1  to 3 microns. The size and position of the metal ions in the crystal controls the
effective diameter that interconnect the millions of tiny cavities in each crystal.  This micro
(sponge-like) form permits the adsorption of the molecules of sulphur compounds. The
purified (de-odorized) LPG contains:  0.0 ppm H2S and <0.5 ppm olefins.  In this quality, the
LPG can be used as a propellant gas for aerosols.
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    The age of the destenching columns charge depends mainly on the impurities content in
the crude propane/butane mixture.
     Note:

     •   The destenching columns were manufactured locally with low costs.

     •   The charge can serve for purification of about 600 tons LPG (depending on the
        charges and LPG quality).

     •   The approximate total cost includes the cost for charge, valves, piping, and two
        transfer pumps with 80 liter per minute (1/min) capacity.

     2.3 Deodorized (Purified) LPG Storage Tanks Area

     This area includes the following components:

     •   Two deodorized LPG storage tanks of 25,000 liter water capacity each;

     •   Two process LPG pumps of 80 l/min capacity each, at AP 10 bar;

     •   Steel structure roof with dimensions of 16 x 12 x 6 m;

     •   Deluge-sprinkler nozzles and piping;

     •   LPG detectors (LEL 20% - 40%);

     •   Flame detectors; and

     •   Ex. proof lighting.

3. PRODUCT PREPARATION

    As indicated in the diagram, the product preparation zone includes the following items:

     •   Bulk storage tanks for petroleum solvent (kerosene);

     •   Pumps needed for unloading and transfer of solvents and product;

     •   Mixing laboratory; and

     •   Product storage tanks.

    Since these petroleum solvents are flammable, all precautions for safe handling,
transferring, and storing (similar to LPG) have been carried out.
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4.  FIRE-FIGHTING SYSTEM

    To reduce the risk of ignition, the following guidelines should be observed:

    •   Ensure all electrical equipment is flame proof.

    •   Avoid using uncovered light bulbs and causing sparks, which can be fire hazards.

    •   Ensure that there is adequate ventilation.

    •   Adopt good safety and checking procedures for leakage or accumulation of
        ignitable mixtures.

    •   Ensure all equipment is adequately bonded and checked regularly to prevent
        accumulation of electro-static charges and occurrence of electrical charges.

    The latest fire-fighting system has been introduced into the plant to minimize the risk of
ignition, thereby guaranteeing maximum safety.  The system includes:

    •   Ventilators (2-speed);

    •   Deluge system; and

    •   Sensors and a command switchboard.

The plant is divided into  hazardous areas, depending on the level of hazard presented:

    •   LPG storage area.

    D   Gassing room.

    n   Production line area.

    •   Product  storage area.

    •   Two warehouses (1 and 2).

    4.1 The Sensors and Command Switchboard

    The system includes the following components:

    •   Fire detectors;

    •   Low pressure-temperature sensors;

    •   High  pressure-temperature sensors;

    •   Gas detectors:
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    -   >20% LEL
    -   >40% LEL; and
    •   Two switchboards
    4.2 The Functioning of the System
    The system performs the following function in case of emergency:
    •   Shuts down the production line;
    •   Shuts down the LPG pumps;
    •   Opens the deluge valves;
    •   Starts the deluge pumps;
    •   Starts the sprinkler system;.
    •   Increases the speed of the ventilators; and
    •   Sounds alarm.
Some or all of the above will occur, depending on the type of emergency.
    4.3 Ventilators
    The system includes the following ventilators with the following characteristics:
               Area	     No. of Fans    Characteristics
Gassing room 1
Production line room 2
Product storage 2
Warehouse No. 1 2
Warehouse No. 2 2
Delude and Sprinkler Svstems
9,000/1 8,000 m3/h
7,500/5,000 m3/h
6,000/1 2,000 m3/h
6,000/1 2,000 m3/h
6,000/1 2,000 m3/h

    This system has the following components:
    •   Deluge pump, 350 m3/hr (90-100 kw);
    •   Sprinkler pump, 150 m3/hr (35-40 kw);
    •   Deluge valves; and
    •   Nozzles and piping.
                                        -86-
                       • • • Egypt Case Study. First Edition, June 1990 • • •

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-------
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-------
                   LP&  Storage  Tanks  A /B

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            T  IT        TP=  ^0   bar
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-------
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-------
5   in
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                      Srorage banks A/ft
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                         = 29000   / /eac/i
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-------
SP
                                     Kerosme   From storage Tanks
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                                                                                                                 &  -  15,000   ^
                                                                   [ NCIC  | Product:  prcpgrahon  Lofecrofarjj  JP^I Diagram j

-------
                       -96-



• • •  Egypt Case Study. First Edition. June 1990  * * *

-------
                                   APPENDIX C

           COST TO CONVERT FROM CFC-BASED AEROSOL PRODUCTION
            TO LPG-BASED PRODUCTION FOR ONE EGYPTIAN COMPANY
    Kafr El Zayat pesticides and chemical company (KZ), a public-sector company, was the

first aerosol-producing company that used liquified petroleum gas (LPG) as a substitute for

CFCs.  KZ produces chemicals and pesticides in a variety of forms, such as liquids, powders,

and aerosols, and has a production capacity of 8 million containers per year. Containers

used have capacities of 300, 400, and 640 cubic centimeters (cm3). The costs to accomplish

conversion of the CFC aerosol filling line were estimated as follows:1

Capital Costs (in US$)

    •   Capital investment for machinery and equipment for the production lines:  $566,000

    •   Capital investment for ancillary equipment (safety equipment, fire-extinguishing
        equipment, and alarm systems): $793,000

    •   Total capital investment: $1.36 Million

Operating  Costs (in U.S.$)

    •   Costs of LPG and raw material used2: $1.24 million


    By using LPG instead of CFCs  Kafr El Zayat saved U.S. $800,000 in annual operating

costs. As  a result, KZ recovered its capital costs in less than 2 years.
   1 All costs are based on estimates provided in Egyptian pounds (£E) and a conversion factor
of U.S. $1.0 = £E 2.65

   2 This estimate is based on costs of £E 0.16 per 100 grams of LPG and the assumption that
a 400 cm3 container of aerosol contains 55 percent LPG by weight.
                                        -97-

                      * * *  Egypt Case Study. First Edition. June 1990

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                       -98-



• • •  Egypt Case Study. First Edition. June 1990  •  •  •

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                                   APPENDIX D
    CALCULATIONS USED TO DERIVE THE U.S. COST PER KILOGRAM ESTIMATES
                           FOR EACH OF THE CONTROLS
    This appendix provides detailed estimates of the capital and operating costs for all
technologies described. Estimates are based on information provided by international
industry sources and experts on individual technologies. The data has been used in such
reports as "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 "Regulatory Impact Analysis:  Protection of the Stratospheric Ozone Layer," Draft
Report, Office of Air and Radiation, U.S. Environmental Protection Agency, August 1, 1988.
                                        -99-
                       • • • Egypt Case Study. First Edition. June 1990  * " •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
              HCFC -123 IN INDUSTRIAL/COMMERCIAL REFRIGERATION
CFCUsed: 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 =$1.41/kg

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
                                       -100-

                      • • •  Egypt Case Study, First Edition, June 1990  • • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
        CFC-11  RECYCLING FOR INDUSTRIAL/COMMERCIAL REFRIGERATION
CFCUsed:  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
                                       -101-

                      • • • Egypt Case Study. First Edition. June 1990  • • •

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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.

                                  Recycling equipment saves 70 percent of the CFC 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
                                         -102-

                        • • * Egypt Case Study. First Edition. June 1990  • • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
            HCFC-141b/HCFC-123 FOAM BLOWING AGENT FOR FLEXIBLE
                    FOAM & INSULATION FOAM APPLICATIONS
CFCUsed:  CFC-11

End Use: Flexible Foam and Insulation Foam Applications

Control: HCFC-141 b/HCFC-123 Foam-Blowing Agent

Price of CFC-11: $1.41 per kg

Price of HCFC-123: $4.17 per kg

Price of HCFC-141 b:  $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-141 b 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-141 b. 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
                                       -103-

                      • •  • Egypt Case Study. First Edition, June 1990 • • •

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         SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
                      HCFC-1343 IN MOBILE AIR CONDITIONERS
CFCUsed: CFC-12

End Use:  Mobile Air Conditioning

Control:  HFC-134a

Characteristics of CFC-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% 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 =  $1.63/kg

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 yr.

                Annualized capital costs at a 2% 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% more energy than a CFC 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

Annual Costs per Kilogram of CFC-12 Saved = (0.77 + 0.5 + 2.7) * 11/16.1  = $ 7.4 per kg




                                       -104-

                       •  • • Egypt Case Study. First Edition, June 1990  • •  •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
                       MOBILE AIR CONDITIONER RECYCLING
CFCUsed: CFC-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 2%):  $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 CFC 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
CFC-12 saved is:  $4.88 per kg
                                        -105-

                       • • • Egypt Case Study. First Edition. June 1990 * * *

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         SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
                 TERNARY BLEND IN HOUSEHOLD REFRIGERATORS
CFCUsed:  CFC-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 = $1.63/kg

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 near drop in and thus its incremental capital costs
                are negligible.

Energy Costs:   The ternary blend unit consumes 3 percent less energy than CFC-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 = - $ 136 per kg

For the purposes of this analysis all negative costs controls are assumed zero costs controls
(i.e., costs per kilogram is zero).



                                       -106-

                       • •  *  Egypt Case Study. First Edition, June 1990 • •  •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
                    HFC-152a IN HOUSEHOLD REFRIGERATORS
CFCUsed:  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

PriceofCFC-12 = $1.63/kg

Price of HFC-152a = $9.05/kg

Characteristics of HFC-152a Unit

    The HFC-152a is a near drop-in chemical for household refrigerators.

Incremental Costs

Capital Costs:     The HFC-152a is a near 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)719 years = $0.117/year

Annual Costs per Kilogram of CFC-12 Saved = (0.117 - 5.16) * 19/0.30 = - $ 319 per kg

For the purposes of this analysis all negative costs controls are assumed zero costs controls
(i.e., costs per kilogram is zero).
                                        -107-

                       • • • Egypt Case Study, First Edition, June 1S90 • • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
                REDUCED CHARGE IN HOUSEHOLD REFRIGERATION
CFCUsed: CFC-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:
Energy Costs:

Capital Costs:
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

Same

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.
                                       -108-

                       • • •  Egypt Case Study. First Edition. June 1990 • • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
          TERNARY BLEND IN INDUSTRIAL/COMMERCIAL REFRIGERATION
CFCUsed: CFC-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: 120kg

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
                                        -109-

                       • * * Egypt Case Study. First Edition, June 1990 • • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
        CFC-12 RECYCLING FOR INDUSTRIAL/COMMERCIAL REFRIGERATION
CFCUsed: 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
                                       -110-

                      • *  * Egypt Case Study. First Edition, June 1990  • • •

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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.

                                  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
                                         -111-

                       • • • Egypt Case Study, First Edition, June 1990  * * •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
                HCFC-141b/HCFC-123 FOAM BLOWING AGENT FOR
                        INSULATION FOAM APPLICATIONS
CFC Used:  CFC-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

PriceofHCFC-141b: $3.31 per kg

Characteristics of Insulation Foam-Blowing Applications Using HCFC-123/HCFC-141 b

    CFC-12 insulation foam blowing factories will have to be retrofitted to accommodate the
new HCFC-123/HCFC-141 b foam-blowing agent.

Incremental Capital Costs:        The retrofitting costs are estimated at $32 per metric ton
                               (MT) 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-141 b, 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
                                      -112-

                           Egypt Case Study. First Edition. June 1990 " • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
 HCFC-22/HCFC-142b FOAM BLOWING AGENT FOR FOAM PACKAGING APPLICATIONS
CFCUsed: CFC-12

End Use:  Foam Packaging Application

Control:  HCFC-22/HCFC-142b Foam Blowing Agent

Price of CFC-12: $1.63 per kg

Price of Chemical Substitute:  $3.29 per kg

Characteristics of Packaging Foam-Blowing Applications Using HCFC-22/HCFC-142b

    CFC-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 CFC 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 CFC Saved: 152 kg per MT of foam produced

Costs per Kilogram of CFC Saved = $1.67 per kg
                                      -113-

                      • • • Egypt Case Study, First Edition. June 1990 • • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
                 COMPRESSED GASES IN AEROSOL APPLICATIONS
CFC Used: CFC-11, CFC-12, CFC-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.
                                       -114-

                      • • •  Egypt Case Study, First Edition, June 1990

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
                   HYDROCARBONS IN AEROSOL APPLICATIONS
CFC Used:  CFC-11, CFC-12, CFC-114

End Use: Aerosols

Control: Hydrocarbons

Characteristics of Aerosol Filling Lines

    CFC use in aerosol applications is replaced with hydrocarbons such as liquified
petroleum gas (LPG). The use of LPG will require special technology capable of handling the
LPG, such as LPG storage tanks, fire-extinguishing equipment, special safety equipment, and
adjustment to filling lines.
Incremental Costs
Raw Material/Chemical Savings:
Energy Costs:

Capital Costs :
LPG is estimated to cost $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

Same

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.
                                        -115-

                       • • • Egypt Case Study. First Edition, Jum 1990

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         SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
                           HCFC BLEND IN STERILIZATION
CFC Used: CFC-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
                                        -116-

                       •  • • Egypt Case Study, First Edition, June 1990 • • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
           AQUEOUS CLEANING IN METAL AND ELECTRONICS CLEANING

CFCUsed:  CFC-113

End Use: Metal and Electronics Cleaning

Control: Aqueous Cleaning

Characteristics of CFC-113 Solvent Cleaning Open-Top Vapor Deqreaser Unit

Capital Costs of CFC-113 Unit: $16,316

Energy Consumption of Unit:       Unit consumes 27 kw of electricity ($3630/yr) based on
                                energy costs for heating the solvent, the workload,
                                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 CFC-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 :   Capital costs include those for aqueous cleaning equipment (wash tanks,
                rinse tanks, air knife, and dryer), installation, and floor space.

                Costs: $50,000   Annualized Costs  = $5566 at 2% discount

Energy Costs:    Electricity costs for aqueous cleaning and  drying equipment are based on
                consumption of 33 kwh (22% greater than  the CFC-113 machine).

                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
                                water: $9,388 per year

Waste Treatment/Disposal Costs: $7000 per year

Total Incremental Operating Costs:  +7000 +  804 - 9388 = - $1584 per year

Annual Costs per Kilogram of CFC-113 Saved = (5566 -1584)7 5300 = $0.75 per kilogram



                                       •117-

                      • • * Egypt Case Study. First Edition. June 1990 • • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
             RECYCLING IN THE METAL AND ELECTRONICS INDUSTRIES
CFCUsed: CFC-113

End Use:  Metal and Electronics Cleaning

Control:  Recycling/Engineering Controls

Price of CFC-113:  $1.96 per kg

Characteristics of Recycling/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).
                                        •118-

                       •  • • Egypt Case Study. First Edition, Juno 1990 • • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
              HCFC-124 IN INDUSTRIAL/COMMERCIAL REFRIGERATION
CFCUsed:  CFC-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 =
$35.1/kg
                                        -119-

                       •  • • Egypt Case Study. First Edition. June 1990  • • •

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        SUMMARY CALCULATION FOR COST PER KILOGRAM ESTIMATE FOR
        CFC-114 RECYCLING FOR INDUSTRIAL/COMMERCIAL REFRIGERATION
CFCUsed: 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
                                       -120-

                      • • • Egypt Case Study. First Edition, June 1990 • * *

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Chemical Savings

Recycling and Servicing Events:     Six sen/icing/recovery events over life of refrigeration
                                  unit; and one recovery event at disposal of refrigeration
                                  equipment.

                                  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
                                         -121-

                        • • • Egypt Case Study, First Edition, June 1990  • • •

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