A-GAS INTERNATIONAL EXPANDS ITS PRESENCE IN AMERICA

LEADING REFRIGERANTS SUPPLIER A-GAS INTERNATIONAL COMPLETES STRATEGIC ACQUISITION OF KEY INDEPENDENT US REFRIGERANTS SUPPLIER AND DISTRIBUTOR, COOLGAS

Bristol-based A-Gas International (or“the Group”), one of the world’s largest independent suppliers of refrigerants, associated environmental services, and speciality gases and chemicals, has completed the acquisition of Houston, Texas based Coolgas Inc. (“Coolgas”), a leading independent supplier and distributor of refrigerants to the US market. The terms of the transaction were not disclosed.

The transaction represents the fifth strategic acquisition completed by A-Gas so far in 2012, and forms part of the Group’s acquisitive growth strategy which is being executed both in the UK and internationally. The enlarged group will have a turnover of c. £130m and 237 employees.

Founded in 1994 by Jesse Combs, Coolgas has grown over the past 18 years to become one of the leading independent distributors of refrigerants in the US. Coolgas’ “refrigerants made simple” philosophy reflects the focus on customer service that has enabled it to grow first to a regional and then to a national player. Coolgas has recently commissioned a new refrigerant storage and packaging facility in Houston and has distribution centres in California, Utah, Arizona, Indiana, Michigan, Maryland and Georgia ensuring that Coolgas is close to its customers wherever they are located.

In recent years Coolgas has also become an EPA registered reclaimer of refrigerants and a project developer for the generation of carbon offsets on the California Climate Action Reserve exchange. These capabilities enable Coolgas to manage the lifecycle of Ozone Depleting Substances (ODS) and substances with high Global Warming Potential (GWP) to safeguard the environment.

The acquisition builds on A-Gas’acquisition of Ohio based refrigerant reclaimer and halocarbon management specialist RemTec International in July 2012. Coolgas provides a strong strategic fit, bringing a strong brand and complementary footprint that will accelerate refrigerants sales growth. Further the reclaim and carbon credits businesses extend A-Gas’ existing operations in the US Environmental Services market which is already well established in the UK and Europe.

The acquisition of Coolgas follows on from the successful acquisitions not only of RemTec International in July 2012 but also of Australian based Technochem in March 2012 and SA Rural in May 2012, and UK based A-Zone Technologies in April 2012.

Commenting on the acquisition:

John Rutley, Executive Chairman and founder of A-Gas International said:
Jesse Combs and his management team have built a great business in the US refrigerant sector and we are delighted to add it to our rapidly expanding presence in this important market. The fit with our recently acquired business, RemTec, is perfect and allows us to offer a full range of products and services to our customers in the world’s largest refrigerant market.

Jon Masters, Regional Managing Director of A-Gas International said:

The acquisition of Coolgas will significantly strengthen our position as the leading independent global supplier of refrigerants at a time when regulatory changes are providing increasing opportunities for reclamation and recycling of used refrigerants using our market leading technology developed in the UK. We look forward to supporting the Coolgas management team and workforce in continuing to provide outstanding service to its customers.

Jesse Combs, CEO of Coolgas said:

I feel honoured that A-Gas saw Coolgas as a strategic fit and entry point into the US refrigerants’ distribution business. Our team of professionals have a customer service mind-set that I believe sets Coolgas apart from the rest of the industry. I have the upmost confidence that the A-Gas team will support and grow upon our "refrigerants made simple" philosophy for many years to come.

About A-Gas International

A-Gas is an international group of companies with headquarters in Bristol, UK. A-Gas is a market leader in the supply of refrigerants within its core territories in the U.K., South Africa, and Australia, and has state of the art storage, blending, packaging and reclamation facilities in Bristol, Cape Town, and Melbourne. The company also has marketing and distribution centres in Singapore, Thailand, China and Mexico. In the US, A-Gas has a Performance Chemicals business located in Doylestown, Pennsylvania; RemTec International, a refrigerant reclaimer and halocarbon management specialist located in Bowling Green, Ohio; and now Coolgas, headquartered in Houston, Texas. For more information, visit www.agas.com

About Coolgas

Coolgas Inc. was started in 1994 as a distributor of refrigerant gases. Through a continual focus on customer service embodied by its “refrigerants made simple” philosophy it has gained customers across the United States and grown to become one of the leading independent distributors of refrigerants. Coolgas supplies a full product range from essential use CFCs through to the most recent HFC blends. Coolgas also supplies in a wide variety of formats from the smallest auto aftermarket disposable cans through to bulk tankers for industrial customers. Coolgas is an EPA approved refrigerant reclaimer. The Coolgas, Inc. headquarters are located 40 miles north of Houston, Texas. For more information visit www.coolgas.com

Dangerous counterfeit R-134a

By Elvis L. Hoffpauir, President and COO MACS Worldwide

Last December, MACS circulated a press release from member company Neutronics Inc’s. Refrigerant Analysis Division, warning about counterfeit R-134a refrigerant contaminated with significant quantities of R-40 (aka methyl chloride or chloromethane). R-40 is extremely toxic, flammable and highly reactive when exposed to aluminum. In some cases R-40 may react with aluminum to form a third, highly unstable compound (trimethylaluminum or TMA) that ignites in contact with air.

This counterfeit R-134a mixed with R-40 and other refrigerants has apparently been purposely designed to mimic pure R-134a at a substantially reduced cost, the likely motivation of the counterfeiters. Current refrigerant identifiers, certified to SAE J1771, are not designed to directly identify R-40.

Prior to issuing the warning, Neutronics had been engaged by the oceangoing shipping industry to assist with an R-134a refrigerant contamination problem involving R-40 that resulted in three deaths in three separate incidents. Since that time Neutronics has been working with the Army, which positively identified R-134a contaminated with R-40 in Army depot supplies. Ground combat and tactical vehicles serviced in Afghanistan and Iraq have been affected, and while the Army does not currently know the depth of contamination, it suspects that vehicles and reclaimed supplies may be contaminated.

At an April 25 meeting of Society of Engineers Interior Climate Control Standards Committee, Peter Coll, MACS director and vice president of Neutronics Refrigerant Analysis, provided field test data from 30 samples of recovered refrigerant from both vehicle and commercial applications. R-40 contamination levels of the samples ranged from less than one percent to 10.1 percent. All of the samples tested also contained other refrigerants including hydrocarbons, R-22 and R-12.

Army representatives asked that the SAE Committee form a working group to develop procedures to identify and isolate contaminated vehicles and equipment, as well as ways to safely service vehicles to return them to mission-ready status.

It should be noted that these contaminated refrigerant systems can pose a major safety issue to those working on them. Currently the industry is working on, but has not determined, the best service procedures to be used. Contaminated systems can damage recovery and recycling equipment, and can result in the requirement to replace all vehicle refrigerant circuit components.

At an April 24 meeting on R-40 in Australia organized by Michael Bennett, general manager of Refrigerant Reclaim Australia, industry representatives discussed the discovery of the counterfeit refrigerant in newly manufactured equipment imported from China. Very high levels of corrosion were said to be present in these systems, and it is thought that rapid corrosion takes place once a contaminated system is installed and operated. Like the SAE and others, this group is working to gain a better understanding of the potential extent of the contamination in order to develop an appropriate plan to manage the threat.

Ron Henselmans, vice chairman of Mobile A/C Partners Europe and editor-in-chief at “Automotive A/C Reporter,” first reported R-40 contamination found in Europe in his March, 2011 issue.
In December, 2011 R-40 contamination had not yet been discovered in North America, but in April 2012 lab tests confirmed the presence of R-40 in a number of containers of recovered refrigerant in the U.S. With the confirmation from the military that infected vehicles have invaded our shores, containment actions are of paramount importance. This problem has been seen in many parts of the world having much smaller mobile A/C fleets, so there is the potential for the same problem in the North American market.

While there is no reason to believe that this contamination is currently widespread in this market, its existence serves as one more reason service shops should remain vigilant and purchase their refrigerant from authorized distributors of their chosen refrigerant manufacturer.

The Mobile Air Conditioning Society’s blog has been honored as the best business to business blog in the Automotive Aftermarket by the Automotive Communications Awards and the Car Care Council Women’s Board!

When having your mobile A/C system professionally serviced, insist on proper repair procedures and quality replacement parts. Insist on recovery and recycling so that refrigerant can be reused and not released into the atmosphere.

If you’re a service professional and not a MACS member yet, you should be, click here for more information.

You can E-mail us at macsworldwide@macsw.org or visit http://bit.ly/cf7az8 to find a Mobile Air Conditioning Society member repair shop in your area. Visit http://bit.ly/9FxwTh to find out more about your car’s mobile A/C and engine cooling system.
The 33rd annual Mobile Air Conditioning Society (MACS) Worldwide Training Conference and Trade Show, Be the Best of the Best will take place February 7-9, 2013 at the Caribe Royale, Orlando, FL.

RemTec International: Full Service Halon, Refrigerant & Clean Agent Specialist

RemTec Launches New Website!

Check out RemTec's new website! We have updated the look and and usability for the convenience of our customers and future customers. Thanks for visiting!
www.remtec.net

Air Condition Coolant Being Phased Out, Prices Triple

NORTH TEXAS (CBSDFW.COM) - If the air conditioning unit at your home was manufactured before 2010 expect a common summer repair to cost up to triple the usual amount.

There is now a new, environmentally friendly, version of Freon — the coolant gas used in a/c units. With the development of the new U.S. Environmental Protection Agency-backed product, the old Freon, R-22, is being phased out.

Air conditioning professionals say with the elimination of R-22 consumers can expect repair costs to increase substantially.

“The refrigerant’s definitely gonna, it has tripled in cost so obviously that cost has be passed on to the consumer,” said Randy Kelly, with One Hour Heating & Air Conditioning. “So, if someone has a refrigerant leak and it has to have R-22 put back in it, it’s really gonna make that repair cost more.”

According to Kelly, the price for a pound of R-22 has jumped from around $20 a pound to up to $90.

Refilling air conditioners with Freon is anything but unusual and is often done annually, as opposed to undergoing expensive mechanical repairs.

“Air conditioners do develop leaks, over a period of time, and it is a common repair,” said Kelly. “There are no telling how many units out there that have leaks that people just a pound, or two pounds, in every year.”

Kelly suggests that homeowners with a serious problem either fix the leak immediately or replace the unit.

The EPA is now requiring air conditioning manufacturers to use Freon R-410A in their units, which is a cleaner gas.

Climate to stock HFO blends

Published on 20 - January - 2012

CLIMATE Center is the first company to announce it will be stocking Honeywell's new range of HFO blends and other low GWP refrigerants.

The company reports particular interest in Genetron Performax LT (R407F), a replacement for R404A with half the GWP and greater energy efficiency. An HFC-blend based on R32, R125 and R134a, it has the lowest GWP of all commonly used blends and is classified as non-toxic and non-flammable.

The new generation of Honeywell's Solstice HFO blends offers a choice of reduced or low GWP replacements for many common HFC refrigerants with high GWPs high GWPs, such as R404A, R22, R134a and R410A. In the case of R404A (GWP of 3922), alternatives with a GWP below 300 have been identified.

Environmentally friendly chillers have been developed and commercialised based on Solstice L13 Refrigerant (HFO1234ze), giving reduced energy consumption against alternatives and also over 99% reduction in direct global warming impact versus R134a.

Robert Franklin, who heads Climate Center's cooling business, says: "Many end users are nervous about the long term future of high GWP HFCs due to their potential to harm the environment if released to atmosphere. There is also concern about the possible introduction of a carbon tax, which would penalise higher GWP products."

He added: "The new Honeywell range offers users reduced and low GWP alternatives for the majority of the most popular refrigerants in use, insulating equipment end users from possible future changes in the law."

Robert Franklin says: "The HFO replacements are in many cases compatible with existing equipment designs and compressors, and therefore enable quick and cost-efficient adoption. They are also efficient over a wide temperature range, which helps cut carbon due to indirect emissions in all climates, including the warmest regions."

"Add to this that refrigerants operate at standard pressures and can be handled by engineers without special training, and it adds up to a very attractive option - both for the industry and end users."

Eco-friendly car refrigerant 'turns into deadly gas it vehicle catches fire'

By Henry Samuel, Paris

7:34PM GMT 17 Jan 2012

A new "eco-friendly" car refrigerant expected to become the industry standard turns into a deadly gas if the vehicle housing it catches fire and should be shelved, it has been claimed.

The coolant for car mobile air conditioning systems, called HFO-1234yf, has been approved for use in the US, Japan and Europe and Toyota and Suburu have started fitting their cars with the substance.

It was chosen as it is produces 98 per cent less climate damaging that its predecessor, R134a.

However, a German expert on the compound has warned that it is should be scrapped as it is much more flammable than the current coolant and when heated above 500C (932F) releases hydrogen fluoride, a highly toxic gas. Temperatures in car fires can easily reach twice that heat.

"You have 600g of this cooling agent per car, which if it burned completely would produce 200g of hydrogen fluoride at a level of concentration that is very high. For a human just one gram is deadly – either inhaled in gas form, through the skin or when dissolved in water," warned Prof Andreas Kornath, an inorganic chemistry professor at Munich University who has been studying the substance for 20 years.

The odourless gas has no instant effect but once inside the body a person dies within a day or so in terrible pain due to internal burns and muscle failure.

"This product should not be on the market. There is a real risk every time a car catches fire, which happens 30,000 times per year in Germany alone," he told the Daily Telegraph.

Prof Kornath issued his warning at the European Parliament in Strasbourg.

Honeywell, which produces the product, has refuted the claims.

"The risk of HF formation is not higher than with R134a – and this refrigerant has been used for decades without any recorded incident," said Honeywell's Sabine Chmielewski.

SAE International Cooperative Research Program, which comprises leading automakers, found HFO-1234yf to offer "superior environmental performance" to CO2 while having "the lowest risk for use in mobile air conditioning systems in meeting environmental and consumer needs."

But Prof Kornath alleged the product had been mainly approved on the basis of tests compiled by the chemical makers, not the findings of independent research.

BAM, Germany's Federal Institute for Materials Research and Testing, for instance, had warned of the risks of using it, he said.

He recommended using carbon dioxide as a coolant, as the fire risks and toxic hazards were nil.
Toyota confirmed it would start using the new refrigerant in new models starting this year.
The car maker’s spokesman Jean-Yves Jault said: “We think the new refrigerant is as safe, yet much more environmentally friendly, as the previous one. This was confirmed by the SAE CRP investigation whose outcome we support.”

"We undertook flammability tests and risk assessment with an independent third party institute, and the results confirmed the safety of the new refrigerant.”

He said that that the phenomenon of hydrogen fluoride gas is “not new", and that concentration of fluorine atoms was “actually much higher” in the historic refrigerant, R134a.