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CO2 Technology more cost-efficient by the day |
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Up until now a main argument for not using CO2 Technology has been that it is much more expensive than current systems. Now that both the prices of chemical refrigerants and the costs of using them are rising, R744 is becoming a more cost-competitive solution by the day.
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2008-04-04
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Critics still upholding the argument that designing and using CO2-based systems is less cost-efficient than sticking to current technology, may want to reconsider given that two major trends are turning the HVAC industry upside down. Not only the price of chemical fluids themselves is rising significantly due to supply shortages and soaring fuel costs, but also high expenses for training and supporting users of HFCs to comply with the F-Gases Regulation have significantly lowered the cost-competitiveness of current systems.
Trend 1: High chemical refrigerant costs
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Prices of chemical refrigerants could increase by as much as 50% in 2008, according to experts in the HVAC industry. Their projection has been underpinned by major chemical manufacturers DuPont and Honeywell announcing independently that prices for HFCs and HCFCs would increase by up to 14% from March/April on, with further rises expected. The trend, felt by users of hydrofluorocarbons (HFCs) in Europe, North America, Africa or the Middle East, will continue in 2009, chemical makers fear. To be blamed for the deteriorating situation are escalating raw material costs, such as a 500% price increase in sulphuric acid, a key component of chemical refrigerants. Soaring energy and freight costs add more fuel to the fire, suggesting that using chemical refrigerants will not become cheaper in the medium term.
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Trend 2: High compliance costs for HVAC industry
From July 2007 on, users of HFCs are obliged to comply with a number of rules put by the EU F-Gases Regulation to significantly reduce leakage from refrigeration and heat pump equipment, mainly through improved system design, containment, recycling and reporting. Though the industry so far has shown a rather reluctant reaction, by now reality has caught up even with the most resistant ones as concrete penalties for infringements have entered into force e.g. in the UK. Facing increasing pressure at the EU and national level, government agencies and industry associations have made substantial financial investments in support programmes, workshops, and internet portals explaining the complex legislation and establishing best practice for the future containment of HFCs. Adding to the costs of just informing the HVAC industry, the expenses for users implementing the rules will be even higher, given that training qualified staff, installing leakage control systems, and creating effective reporting procedures will require significant economic resources.
So how does this affect CO2?
Yes, CO2 (R744) will also require training but it is not part of the F-Gases Regulation and does not have all the other costs associated the legislation’s enforcement. As a result, and as current HFC-based systems have already become more expensive on the supply side, many observers expect the move away from HFCs to continue. After all, many that are still claiming CO2 Technology is not a cost-efficient alternative, might be proven wrong.
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More information:
› ACR News, 25 March: DuPont price increase
› Honeywell Press Release, 3 March
› Honeywell Press Release, 29 January
› More about the F-Gases Regulation in our Policies section
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