Change 2016

The Role of the HVACR Supply Chain

Implications for the HVACR Industry

Implication: From a procurement POV 2030 is NOW:

The Australian HVACR industry has the opportunity to:

Reduce the energy cost of HVCAR by 60%+ ($8B PA)

Reduce GHG emissions by 50%

Reduce national emissions by 7% from HVACR alone

These opportunities are commercially warranted!

We need a great deal of training and education

HVACR in Australia We believe the industry can reduce energy consumption by 60/70% - $8/10 B PA It is not clear to us that the energy management industry is sufficiently engaged with HVACR energy efficiency! • Specifiers, • ESCOs, • Facilities Managers, • Contractors, • Owners & Users.

Innovation In HVACR Energy Efficiency

• We need to ! • You can ! • It is commercially required and warranted -

NOW

We Need To !

HVACR must transition to Low GWP refrigerants: • Or HFC will add 50 to 90% to global warming by 2050

• Add indirect emissions and this approaches 100%

• Transition will be driven by the Montreal Protocol

• Transition will be driven by energy efficiency

• Transition is inevitable The solutions are in our hands NOW

We Need To ! HVACR Transition in Australia is: • Energy Efficiency • Direct Emissions elimination • Australia should be a leader: - high growth for those that embrace transition - national competitiveness - export development, import reduction - demonstration to / with the third world The solutions are in our hands NOW

THEREFORE We are going to Tell It Like It Is HFOs are Low GWP, but: • Not importantly more energy efficient that HFCs

• Very expensive

• Not safer. Why risk thermal decomposition - lethal

• Not lower cost on a life cycle basis

• High Life Cycle Assessment impact? Do we really need another synthetic refrigerant ?

THEREFORE Natural Refrigerant Based Technologies Are: • More energy efficient

• Proven cost and performance superior

• Can be used safely

• Lower cost

• Require particular expertise to design and service

Commercialisation Is Required

You Can ! Let’s be absolutely clear about the considerations: • Natural Refrigerant based solutions are available &

proven in all HVACR sectors.

• They deliver major energy efficiency savings.

• Retrofit solutions are available and cost effective.

• They are commercially justified.

• There are no excuses for delay.

Supply Chain awareness is almost nonexistent !

There is a Major Commercial Confrontation

The Future is Natural Refrigerants vs HFOs:

• If you are telling your client anything else you are not telling the truth.

• If you are telling your clients that natural refrigerants are more dangerous you are not telling the truth.

• Why would you be representing anything but a natural refrigerant based technology?

Implications for the HVACR Industry

From a procurement POV 2030 is NOW: Despite the major benefits of transition to low emissions technology the HVACR industry will be highly controversial for the foreseeable future.

You can expect a good deal of obfuscation as the various commercial interests press their POV.

SAFETY HVACR Safety is about one thing: • Trained engineers and technicians

• That’s everyone that has direct responsibility for

HVACR performance – about 100,000

• Training, education and communications are critical

What is transition to energy efficient HVACR?

Technology:

– New more energy efficient solutions – Integration for cost savings, emissions reduction

Management – Life Cycle Costing & Management – Integrated Energy Efficiency Engineering

Collaboration

- Government & Industry - Training & Education

Technology

Integrated HVACR Energy Efficiency Engineering: Mechanical Engineering + Energy Management + Heat Load Management

Technology Mechanical Engineering By Sector

High Rise HVAC, Industrial HVAC Commercial & Residential HVAC Retrofit vs. New Cold Stores & Cool Rooms Refrigerant Selection Commercial Refrigeration Performance Display Cabinets Measurement & Industrial Refrigeration Control Systems Transport Refrigeration Maintenance District Energy

Technology Energy Efficiency Management

• Measurement & Reporting • Control Systems • Automation • Voltage Optimisation • Power Factor Correction

Heat Load Management

• Reflective Paint, Roof Heat Management • Low Heat Lighting • Windows, Fans, Appliances • Ambient temperature air ingress, egress • Ducting / Insulation

Technology Mechanical Engineering by sector

High Rise HVAC, Industrial HVAC Retrofit vs. New Commercial and Residential Split System HVAC Refrigerant Selection Cold Stores & Cool Rooms Engineering for Performance Commercial Refrigeration & Display Cabinets Remote Control Industrial Refrigeration Maintenance Transport Refrigeration District Energy

Energy Management Heat Load Management

• Measurement Windows, Fans, Appliances • Control Systems Ambient temperature air ingress, egress • Voltage Optimisation Ducting / Insulation • Power Factor Correction Low Heat Lighting Reflective Paint, Roof Heat Management

Technology Mechanical Engineering by sector

High Rise HVAC, Industrial HVAC Retrofit vs. New Commercial and Residential Split System HVAC Refrigerant Selection Cold Stores & Cool Rooms Engineering for Performance Commercial Refrigeration & Display Cabinets Remote Control Industrial Refrigeration Maintenance Transport Refrigeration District Energy

Energy Management Heat Load Management

• Measurement Windows, Fans, Appliances • Control Systems Ambient temperature air ingress, egress • Voltage Optimisation Ducting / Insulation • Power Factor Correction Low Heat Lighting Reflective Paint, Roof Heat Management

Important New Technology available in every sector and dimension !

Technology Vapour Compression by sector

High Rise HVAC, Industrial HVAC Commercial and Residential Split System HVAC Refrigerant Selection Cold Stores & Cool Rooms Engineering for Performance Commercial Refrigeration & Display Cabinets Leakage Control Industrial Refrigeration Maintenance Transport Refrigeration District Energy

Energy Management Heat Load Management

• Measurement Windows, Fans, Appliances • Control Systems Ambient temperature air ingress, egress • Voltage Optimisation Ducting / Insulation • Power Factor Correction Low Heat Lighting Reflective Paint, Roof Heat Management

New Technology available in every sector and dimension ! Requires a high degree of research, education, commercialisation.

Technology: Vapour Compression

Sector Indicative volume

Relevance

Split System HVAC - New - Retrofit

1,000,000 PA 12,000,000 installed

Low Rise Commercial & Residential

High Rise HVAC 30,000 / 100,000 Commercial, Industrial

Cold Stores 20,000 Manufacturers, cold chain operators

Cool Rooms 80,000 Retailers, Hospitality

Display Cabinets 1,000,000 Retail

Commercial Refrigeration 10,000 Grocery Stores

Automotive AC 12,000,000 Everyone

Transport Refrigeration 30,000 vehicles Cold Chain

Hot Water, Heat Pumps 12,000,000 All buildings and facilities

District Energy Thousands CBD, Health care, Education, Agri B

Technology: Vapour Compression

Sector Solution Benefit Suppliers

Split System HVAC

Hydrocarbons 12,000,000

40-60% energy Low capital cost

Pioneer International Green HVAC

High Rise HVAC

Ammonia 100,000

40% energy saving No direct emissions

Scantec TriTech Minus 40 CA Group GEA Refrigeration

High Rise HVAC

Hydrocarbons 100,000

40% energy saving Low direct emissions

Engas Hychill Geoclima

Evaporative Cooling

Air & water refrigerant based HVAC

High efficiency No direct emissions

Seeley International

Technology: Vapour Compression

Sector Solution Benefit Suppliers

Cold Stores Ammonia 20,000

40% energy saving Scantec GEA Refrigeration

Cool Rooms Hydrocarbons 80,000

40% energy saving Engas GEA Refrigeration

Commercial Refrigeration

Transcritical CO2 Ammonia / CO2 10,000 grocery stores

High energy savings Minus 40 TriTech NSW Scantec CA Group Geoclima GEA Mayekawa

Display Cabinets Hydrocarbon, CO2

40% energy saving Cyberchill, MKA ICS Pacific

Transport 30,000 vehicles + Reefers

Fuel efficiency 40% energy savings

Hychill Carrier - NaturaLine CO2

Heating Boiler Controls 10/20% energy saving

CCM Energy Solutions

District Energy Local, heating & cooling

Major cost and emissions reduction

ComfortiD Alfa Laval

V. Technology: Heat Load Mgmt Sector / Energy Savings Relevance Suppliers

Insulation Envelope, Roofs, Walls, Floors Ducting

Kingspan, Knauf Westaflex

Reflective Paint + 20/40% Heat Reflection, large roofs Sky Cool

Roof Heat Manage’t + 20/30% Heat use and evacuation Smart Breeze

Maintenance + 20/30% Coil & filter cleaning Aeris Environmental HydroKleen, CoilPod

Control Systems + 20/40%

Optimise energy use & performance Remote Reporting & Manage

EMScAP Aeris Environmental Wavetronics, Endo Cube

Fire Mitigation Oxygen Reduced Plant Rooms Refrigerant Leak Detection

Fire Pass, ACES Wavetronics

Fans +20% Energy Efficiency Aeratron

Windows + 20/40% Reflective Blinds and Tints Retrofit Double Glazing

Inflector Hanita Pacific EcoMaster

Low Heating Lighting +10/20% LED efficiency Lots – find one that understands heat load?

V. Technology: Integrated Energy Efficiency

Sector Relevance Suppliers

Voltage Optimisation +20% Power Factor Correction +20%

Energy management Power Star, EMSc AP

Energy Management +20%

Measurement & Reporting “its all about the data”

EMSc AP Watt Watchers Wavetronics Envizi Many Others

New Energy Management Systems will restructure the HVACR industry: Control Contractors > End Users

Management

Too often we are told that capital cost is the key determinant of buying decisions in association with: - A lack of financing initiative - Split incentives - Lack of Life Cycle Costing, and Life Cycle Management

Enormous opportunity for HVACR cost reduction and performance improvement.

The starting point is awareness of the sources of energy efficiency. The next step is understanding and integration!

Management

Too often we are told that capital cost is the key determinant of buying decisions in association with: - A lack of financing initiative - Split incentives - Lack of Life Cycle Costing, and Life Cycle Management

Enormous opportunity for HVACR cost reduction and performance improvement.

The starting point is awareness of the sources of energy efficiency. The next step is understanding and integration!

By all participants in the HVACR supply chain.

Huge communications requirement.

Collaboration

Government & Industry, End Users Training & Education R&D, Validation, Commercialisation

The transition to low GWP refrigerants calls for new HVACR industry management systems:

• Standards

• Regulation

• Licensing

• Innovation, R&D + Commercialisation

• Training & Education

• Communications

Collaboration

The transition to low GWP refrigerants calls for new HVACR industry management systems: Licensing Low GWP refrigerant based technology is clearly the future but not addressed by the current HVACR licensing system.

Training, Education and Communications There is an enormous educational need to make all stakeholders aware of the benefits and requirements of low GWP refrigerant based technology ( perhaps 100,000 individuals).

Innovation The technology is available, validation & consideration is critical, government and academia have important roles.

Collaboration

Government & Industry, End Users Training & Education R&D, Validation, Commercialisation

The transition to low GWP refrigerants calls for new HVACR industry management systems:

• Standards

• Regulation

• Licensing

• Innovation

• Training & Education

• Communications

Specifiers and End Users should engage with: ARA, DoE, DoI, OEH, VEET You need a voice, we need your voice in these policy developments.

Who is Responsible For Innovation

Commercialisation, Standards, Regulations, Enforcement, Training, Finance, Public Procurement, Leadership

• Whoever takes the initiative….. Wins.

• What is the role of “the industry” ?

• What is the role of Government – all three levels? – Federal? – State: OEH, VEET, ACT……. – Local?

Innovation ! • Mayekawa • GEA • Scantec • Minus 40 • Tri Tech Refrigeration • CA Group Services • Pioneer • Hychill • Engas • Power Star • Many others

There is a great deal more that you will find on the ARA Website Integrated Energy Efficiency Engineering

Things to Watch For

• Atmosphere Australia & Accelerate Australia – May 16 • Energy Productivity – Australian Alliance to Save

Energy (A2SE)

• University of Western Sydney with the ARA

• OPSGG MA Review – when?

• Other Government Initiatives: OEH, VEET, Ideas Boom

• UNFCC, Montreal Protocol 2016, Climate & Clean Air Coalition

• Energy Smart

Call to Action

• The entire HVACR supply chain needs to get involved.

• We need your voice.

• You need our voice – the truth!