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Australian Refrigeration Association (ARA) president Tim Edwards outlines the role of natural refrigerant-based technology
(NRBT) in the development of the HVACR industry in Australia and worldwide.

The natural refrigerants are ammonia, carbon dioxide, hydrocarbons, air and water.

The first three are more energy efficient than fluorocarbon refrigerants. They have far lower global warming potential (GWP) and cost much less to buy and use.

Here’s why the ARA believes NRBT will play
a leading role in the industry. First, it is critically important to Australia’s economic performance.

There are over 45 million individual HVACR installations that cost over $26 billion per annum to buy and operate.

These installations consume over 22 per cent of electricity produced per annum in Australia ($14 billion). Energy prices have increased dramatically and will continue to increase.

This is why HVACR energy efficiency really matters. Our industry is responsible for at least 12 per cent of national Greenhouse Gas (GHG) emissions. In fact, it is closer to 15 per cent with everything taken into account.
GHG emissions will be an increasing consideration for HVACR operations for the foreseeable future as the world works to reduce global warming.

Currently, the industry is dominated by fluorocarbon refrigerant-based technology (FRBT), especially in the high volume HVACR sectors - commercial, residential refrigeration and air conditioning, MVAC and transport refrigeration.
FRBT is a significant source of GHG Emissions because fluorocarbon refrigerants have a high GWP in the 1300 to 23000 range and they leak or are emitted at a high rate (four to five per cent of national emissions).

Fluorocarbon refrigerant prices have increased dramatically in part because of rising raw material costs.

Even if the synthetic greenhouse gas (SGG) levy is removed, fluorocarbon prices will remain high relative to natural refrigerants.

There is an ongoing commercial confrontation between FRBTs and NRBTs. We need to recognise this and deal with it in a forthright way rather than the ongoing obfuscation and misrepresentation that only serves to confuse.  We need to consider the economic, environmental and safety considerations of NRBTs and FRBTs in a balanced appraisal by application and with greater attention to the needs of end users.
HCFC refrigerants (ozone depleting) are being phased out. They will be in very short supply in Australia post 2015 and therefore very expensive.

Europe has passed legislation that will phase down high GWP HFC refrigerants progressively to, and dramatically, by 2030.

The G20 supports this principle. It is likely that the Montreal Protocol (with 197 countries) will adopt a similar solution soon. For all intents and purposes, HCFC and high GWP HFC refrigerants are history.
NRBTs are being adopted worldwide because they are more cost effective. Manufacturers have demonstrated that they can supply NRBTs that are safe.

The world’s leading food retailers and suppliers for instance have committed to adopt NRBT worldwide (the Consumer Goods Forum). HVACR equipment manufacturers are now offering the full range of HVACR applications using NRBT solutions.

New low GWP fluorocarbon refrigerants  (HFOs) may make a contribution albeit they are not available in Australia and their performance, safety,and price characteristics are not yet known
and are contentious.

There is a myth that FRBTs are safer than NRBTs. This is a common assertion from the proponents of FRBT.  It is not
true. All refrigerants are dangerous if not used properly by a competent person.

Both fluorocarbon and natural refrigerants can be both toxic and flammable under conditions that are endemic to the
industry. This is particularly true for new fluorocarbon refrigerants like R32 and HFOs.

Engineering solutions can mitigate the safety risk for all refrigerants when used in association with reliable
maintenance systems.

The frequency of safety events in HVACR is very low and can be further reduced.

The environmental impact of fluorocarbon refrigerants is not considered in the assessment of refrigerant safety risk
despite increasing evidence of the cost and mortality caused by climate change.

The premise that FRBTs are safer than NRBTs is simply not valid. NRBTs deliver climate change “safety” that is at
least as important as local safety, arguably more important.
NRBTs deliver on both fronts.

The confrontation between FRBTs and NRBTs matters because Australia needs to reduce the cost of its HVACR industry.

To remain internationally competitive in many important industries like the built environment, food production and
distribution and health care, Australia will need to embrace the economic advantages of NRBTs.

There are a range of important cost advantages. NRBTs are more energy efficient than FRBTs by 20 to 60 per cent.

The GWP of natural refrigerants is far lower than fluorocarbon refrigerants, ammonia (0) and hydrcarbons (3), and
therefore are not subject to GWP based levies being applied in some countries,

Natural refrigerants are much lower cost to buy and use than fluorocarbon refrigerants. They will remain inexpensive because they are produced as a byproduct of far larger industrial production activities.
The refrigerant charge required to deliver a given HVACR performance is far less for hydrocarbon refrigerants as
compared to fluorocarbon refrigerants (50 to 60 per cent less).

These sources of cost savings can be significant over the life of many HVACR applications, making NRBTs far more
cost effective for all of us.

NRBTs can be used safely and can make a major contribution to HVACR cost reduction because:

1)      New NRBT serving a wide range of applications deliver energy and refrigerant efficiencies that provide
superior overall economic value. The cost savings available through the use of NRBTs deliver a sufficient efficiency advantage to warrant the capital cost of replacing FRBTs.
 
2)     Suitably qualified suppliers can convert a large proportion of existing FRBT equipment to NRBT,
delivering important cost savings. For instance, split system AC and MVAC.
 
3)  NRBT engineering has produced a complete range of safety solutions including leak sensors and alarms, solenoid
valves and extract fans that virtually eliminate safety risks when properly employed.
 
The cost saving available through the use of NRBTs in Australia over the next decade is many billions of dollars per
annum. As a country, we spend about $14 billion each year on electricity to run HVACR and about $600 million on
refrigerants.

Replacing or converting existing HVACR equipment to NRBTs and investing in new NRBT infrastructure has the
potential to reduce this cost by six to seven billion dollars per annum.

The long run value is enormous. The result will be major HVACR cost savings for industrial, commercial and
residential users.

NRBT use will reduce imports and potentially increased exports as Australia provides HVACR leadership throughout
the Asia Pacific region.

The result will be the economic competitive advantage that we desperately need.

Australia has the ability and responsibility to demonstrate that making the transition to low emissions is good
economic and environmental policy.

To achieve this outcome, Australia needs to:

Recognise that HVACR is a major potential source of energy efficiency and GHG emissions efficiency,
Develop policy solutions that give rise to greater understanding of and investments in HVACR energy efficiency,
Make end users aware of the benefits of NRBT,
Train a large proportion of the HVACR industry workforce in the use of natural refrigerants
Adjust HVACR safety standards and licensing systems so they are based on current technology and fully embrace
natural refrigerants.

We should also keep in mind that there will continue to be safety incidents involving the misuse of refrigerants.

It is important that this inevitability not give rise to inappropriate media coverage and policy reactions that
undermine the professionalism of the industry or any given sector. It is important that anecdotal incidents not
continue to be used to draw industry
wide conclusions.

The best approach is ongoing professional development using rapidly evolving technology solutions. Greater
design skill and greater training should be a high priority for the industry as we manage the transition to the
use of natural refrigerant-based technology.