A-Gas RemTec's Refrigerant Consignment Program

Refrigerant Consignment Program:

A-Gas RemTec’s Refrigerant Consignment Program has been developed to save you time and money.  We will put refrigerants at your site and you use when needed. This eliminates the time and cost of running to the wholesale house to pick up what you need.

The product will be sent to your location at no cost to you and A-Gas RemTec will bill you for only what you have used for that month. There are no service fees or hidden charges. We supply you with what you need for when you need it.

Call today for more information about A-Gas RemTec’s Refrigerant Consignment Program!

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German KBA Authority Offers New Report on AC Refrigerant Soap Opera

If the Daimler AG versus France air-conditioning refrigerant saga would be a book, this new information would be the chapter when the plot suddenly thickens.

As you all probably know by now, France has banned the sale of the Mercedes-Benz A-Class, B-Class and the CLA on their territory over the models' use of the R134a AC coolant, which will be outlawed by the European Union from 2017 for environmental reasons.

Germany's Federal Motor Transport Authority (KBA) recently issued a report of its findings following the subsequent testing of a number of cars that use the new R1234yf air conditioning coolant, which is set to replace the old R134a.

Their conclusion? The new refrigerant - which has been ostracized by Daimler AG following over 100 in-house test that proved it possesses an increased fire risk during certain types of head-collisions – is more hazardous than the old one, but it doesn't comprise a serious danger.

“Due to the comparisons with the previous refrigerant 134a in Stage 3, one can ascertain that the safety level of cars tends to deteriorate when 1234yf is used,” the KBA report mentioned.

Although the report is kind of in line with France's stance in the matter, looking deeper in the details given it also appears that Daimler AG is not exactly the boy who cried wolf when there wasn't any wolf in sight.

Of the four cars tested by the KBA (A Mercedes-Benz B-Class, A Hyundai i30, Subaru Impreza and an Opel Mokka) one of them burst into flames and also emitted a pretty considerable amount of the highly toxic hydrogen fluoride gas.

According to the report, quoted by Reuters, “non-negligible” amounts of the gas were detected in two of the other cars being crash tested, but the coolant itself only ignited in one test. In other words, for the time being, everyone is right about the matter. A more comprehensive final report will be released in mid-september, while the EU officials will obviously have the final word. Our say? Why don't you check out our editorial to find out a more personal opinion.

Beware of Flammable R-22a Refrigerants!

June 12, 2013

With the phaseout of the refrigerant R-22, dangerous replacements are surfacing. Steer clear of purchasing highly flammable products sold that are listed in a form of 22a Refrigerant, as the gas can burn or even explode when in contact with an ignition source.

There is great concern over the flammability of these products, when used as a refrigerant in air conditioning equipment. The U.S. Environmental Protection Agency (EPA) has a Significant New Alternatives Policy (SNAP) that maintains lists of acceptable refrigerants in listed applications. EPA has issued some Frequently Asked Questions (FAQ’s) regarding these R-22a products, click here to read these FAQ’s.

These products could pose significant safety risks to homeowners and technicians. Unknowing homeowners who have used this product may have created an exposure to fire or explosion should a leak be present in the home. Technicians that have not been informed of the use of these products face similar risks in that their service equipment is not designed for these products. Inadvertent mixing of recovered gases may contaminate a contractor’s bulk recovery cylinder forcing disposal of the product in place of reclaiming.

There are many approved replacement refrigerants being marketed today; contractors should carefully consider the products they wish to use. For a list of EPA approved alternate refrigerants for residential air conditioning, click here.

Remember, it is illegal for anyone to intentionally mix refrigerants in equipment or to intentionally vent refrigerant to the atmosphere. Use alternate refrigerants wisely; do not top off a system with an alternate refrigerant.

Coming to America

U.K.'s A-Gas Plans Expansion Into North America

A-Gas’s acquisitions in the U.S. will set it up for a significant expansion into North America, including the international rollout of its refrigerant reclamation technology.

This year, A-Gas celebrates its 20th year in business, but no time in those two decades has been quite as busy as last year. The past 12 months have seen intense activity as the Bristol refrigerant distributor and reclaimer bought two U.S. specialists, Coolgas and RemTec, and set up a fully fledged North American division. The firm has transplanted U.K. managing director Ken Logan to oversee the establishment of the U.S. operations for the next two years at least.

The acquisition of the U.S. businesses, plus a further distributor in Australia, Technochem, has seen the A-Gas Intl. group top £100 million turnover for 2012, with a worldwide headcount of 237.

Acquiring Assets

“A-Gas is now the largest independent refrigerant player outside of the U.S.,” said Jon Masters, European managing director. “Our core territories are in the U.K., South Africa, and Australia, in each of which we have a 30-35 percent market share. So we were keen to try and take that offering to the U.S. — it was the right opportunity in terms of the business and the regulatory framework.”

That framework is the U.S. phase out of HCFCs and the probable phase down of HFCs, expected to closely follow the European Commission’s proposed F-Gas model — although progressive states like California are already bringing in more stringent rules.

The particular attraction of RemTec is that its core business is halon reclamation. Although these are largely from fire suppressants, this offers the right range of skills and technology to allow an expansion into refrigerant reclamation. This is where A-Gas brings its own skills to bear, said Masters. “We can bring our reclamation knowhow, and the benefit of the U.K. experience of selling the reclaimed HCFC product. The U.S. market is maybe four or five years behind Europe, but it is rapidly developing, and the EPA [Environmental Protection Agency] has announced more cuts in HCFC volume.”

The plan is for the RemTec operation to be brought up to the same standard for refrigerant reclamation as A-Gas’s Bristol facilities by the end of this year.

The commercial implications of the rapid cuts should not be underestimated; in the U.S. over the past year, virgin R-22 has increased in price from $3 per pound to $15 per pound.

Coolgas, by contrast, is a conventional refrigerant distributor, but again the purchase is strategic, providing a foothold in the Southwest, from which A-Gas can build, with a brand name well known to the American market. It also holds all-important import rights to HCFCs.

A foothold in such a large territory is a big deal in its own right, but the potential is far bigger. “The U.S. business is roughly the same size as the U.K. business, but whereas in the U.K. that brings a 30 percent market share, in the U.S. it is only 2 percent of the market. It should be easier to double from 2-4 percent than from 30-60 percent.”

If the plans for reclamation at RemTec go well, it could be joined by other sites. While the U.K. can function well with a single reclamation site, the scale of the U.S. is likely to require a network of two or three more. With reclaimed HCFC expected to be useable in the U.S. beyond 2020, that is an attractive long-term target.

Reclamation Technology

In a relatively short time, refrigerant recovery and reclamation has become a serious business for A-Gas. Its environmental services operations now account for around 20 percent of turnover (refrigerants is the largest proportion at 60 percent).

U.K. business director John Ormerod said, “What we do falls into two areas: cleaning up dirty gas by removing contaminants and separating out gases from refrigerant mixtures.

“We probably lead the world in refrigerant reclamation. There is only one other company in the U.K. and three in the U.S. who can separate refrigerants like we do,” he said.

The separation facilities at Bristol have come on apace since the pioneering days when its technology could be housed in a corner of the warehouse. The original plant is still in situ, but it has been joined by Separator 3, located outside the warehouse and large enough to be able to accommodate tanker-sized volumes of refrigerant, with a capacity to process around 400 tonnes a year.

Although the precise technology is secret, both plants are designed to reclaim refrigerant to Air-Conditioning, Heating & Refrigeration Institute (AHRI) 700 standards, as well as being able to split mixed refrigerants into usable batches and to reclaim individual gases from cocktails of recovered refrigerant. The latter is where A-Gas claims distinctiveness, as “the only supplier who has both the technology and the capacity to provide this level of service.”

Content for the European Spotlight is provided courtesy of Refrigeration and Air Conditioning Magazine, London. For more information, visit www.racplus.com.

Publication date: 5/20/2013

Industry Encourages Cap Use on Refrigerants

Recent Deaths Demonstrate Dangers of Huffing R-22

By Peter Powell

 

This past March, Kristal Salcido, a 12-year-old seventh grader in Victorville, Calif., inhaled HCFC-22 from an air conditioning unit in the backyard of her grandmother’s home. She was later found passed out on the bathroom floor. Rushed to the emergency room, Salcido was pronounced brain dead. Four days later, her family decided to take her off life support.
She had used the R-22 in a ritual called huffing — the intentional inhalation of chemical vapors to attain a mental high or euphoric effect.
Refrigerants such as CFCs, HCFCs, HFCs, and propane are just part of that chemical basket of inhalants. Others are gasoline, paint thinners, nail polish, and nitrous oxide. According to the website www.inhalants.org, one in five students has inhaled a chemical to get high by the eighth grade.

The Hazards of Huffing

In the case of the R-22, “When you inhale it, it kills your brain cells — that’s all,” said Ron Postoian, president of AC Plus Heating & Air of Hesperia, Calif., who was interviewed by television station KTLA for its story on a recent huffing fatality in his home state.
“People really don’t realize how dangerous this is,” said Dr. Craig Sanford, Tulsa, Okla., in a news report broadcast by NewsOn6. “Inhaling this substance prevents the body from getting oxygen and you can get frostbite from it, inside the tissues of your nose, mouth, and face.”
Postoian said that he’s serviced a number of condensing units where the refrigerant had suspiciously been used up.
That “missing refrigerant” aspect was echoed by Ryan Rentmeister, who owns Rentmeister Total Home Service of Salt Lake City. A few years ago in his hometown, people were turning on their air conditioners, but the machines were failing to provide cool air, due to absent refrigerant. “We’ve had four cases in the last week,” he said, suspecting huffing as the cause.
Ronda Szymanski of Advanced Air and Refrigeration Inc., Fort Myers, Fla., said a telltale sign is when service techs find a butter knife laying next to a central air conditioning condenser that has been depleted of refrigerant, with its service port visibly damaged.

Curbing the Problem

Regulators and many within the HVACR industry have been working hard to get a handle on this deadly situation. Both the International Mechanical Code 1101.10 and the International Residential Code M1411.6 have mandated that “refrigerant-circuit access ports located outdoors shall be fitted with locking-type tamper-resistant caps.”
Code requirements have been in place since 2009, but these requirements need to be codified by each state, said Gerry Spanger, director of HVACR engineered products for Rectorseal Corp.
So far, at least five states have adopted the codes, said Spanger. However, limiting more widespread acceptance, the codes are only related to new construction. He said eventually the codes will extend into retrofits and existing buildings. “It is not a question of ‘no, this won’t happen.’ It is just a question of how long it takes,” said Spanger.
Once state codes are in place, inspectors cannot sign off on a job until the locking caps are in place.
“The products are a must for companies and technicians to comply with local codes as well as liability concerns connected with refrigerants,” said Oscar Lopez, vice president of sales for JB Industries Inc., Aurora, Ill.
Spanger said that even as all the regulatory aspects eventually fall into place, there is still the possibility of abuse within the HVACR sector. He said he’d even heard of contractors buying the caps, locking them in place when required, and then removing them after an inspection for use in the next project.
“They don’t understand they are laying themselves open to liabilities,” he said.
He also said that even though the caps can only be sold to contractors who are U.S. Environmental Protection Agency (EPA)-certified to handle refrigerants, he had heard of instances of some wholesalers and contractors who sell the caps on websites, even though they may not be able to verify the certification status of the purchaser.
According to Jon Melchi, director of government affairs for Heating, Air-conditioning & Refrigeration Distributors International (HARDI), “Wholesalers and suppliers strongly believe that these products should not be available online. They should only be sold to licensed contractors. As an industry we must be diligent in making sure that the entire channel is aware of best practices regarding these products.”

Locked and Loaded

While controlling huffing remains a key aspect of locking caps, the devices have long been offered in the HVACR distribution channel for a number of applications. Even as regulations move toward the requirement of locking caps, the devices themselves are being fine tuned.
For example, this past February, Rectorseal Corp. introduced its GasGuard™, a tamper-resistant locking valve cap designed to help prevent refrigerant theft, leaks, and huffing. It screws and locks onto threaded refrigerant Schraeder valves.
“GasGuard restricts unauthorized access because it can only be installed or removed with a unique matching proprietary socket tool,” said Jerry Tomasello, director of marketing for RectorSeal. “It cannot be removed with a core remover or Allen wrench.”
JB’s Lopez also noted that his company is launching a new American-made refrigerant safety cap with greater security under the brand name The Shield.

Contractor Support

Numerous contractors, including Chase Tunnell, president, Dominion Service, Richmond, Va., are strong advocates of locking caps. For a number of years, Tunnell has been involved with the Substance Abuse Free Environment (SAFE) program, which encourages the use of locking caps.
“SAFE is still actively pushing it and Dominion Service is currently doing a public service campaign in the Hampton Roads, Va., area,” he said. “Our Richmond division has had huge success with the program but Hampton Roads has been a little slower to catch on. We are working on fixing that.
“We are currently installing 10-15 caps each week. We’re confident that number will increase significantly as the summer season hits.”

 

 

Counting down to the ban on R22

As the months pass towards the total ban on the use of R22 for servicing air-conditioning equipment, Kevin Groves of Ergro gives his perspective.

The final removal of the HCFC refrigerant R22 from the world’s air conditioning systems has long been heralded and is now upon us here in the UK. Manufacturers of equipment have not included it in new systems since 2003. In 2010 the use of virgin R22 refrigerant was banned, and systems can only now be serviced utilising reclaimed refrigerant for maintenance. Now the final date in the legislative removal of recycled R22 because of its ozone-depleting properties is near. On 1 January 2015, the use of recycled R22 refrigerant will be banned in the EU.

Practically speaking, where R22 refrigerant is in use, there are two main options to make an air-conditioning system serviceable after the ban comes into force. One option is to convert the existing system to enable it to operate using a legal but often less efficient refrigerant or replacing part of or the entire system.

There are two main routes to a conversion solution.

In some cases it will be possible to make a few modifications to the system, such as replacing some gaskets and the oil, which will enable it to run on a new refrigerant such as R422D. This is known as the drop-in refrigerant option, which, in most cases, will lead to a reduction in cooling capacity and increased running costs.

Where another refrigerant cannot be dropped in, there may be the potential to convert the system by installing new fan coils or condensers whilst still retaining much of the building’s existing internal infrastructure such as piping. As well as increasing system capacity, conversion is likely to improve the overall efficiency of a system through the use of modern refrigerants (except when using the drop-in option).

Both solutions are, however, heavily dependent on site, installation conditions and age of the plant.
Systems not suitable for conversion will need to be replaced. Despite the higher installation costs, replacement can lead to greater system efficiencies, lower maintenance requirements and reduced operating costs.

For building-services engineers, the effect of the legislation is likely to mean that air conditioning will take centre stage in many of their operations in the coming years. It’s important that the engineering community understands what is business-critical air conditioning and impresses the importance of preparedness upon facilities managers and business leaders.

Who should act and when, what market forces and liabilities are involved and why it’s becoming the most important news in air conditioning may not be immediately obvious to many business leaders and even facilities managers. In fact, many people who could be affected most acutely won’t even know if R22 is used in their air conditioning or even realise they are responsible for the air conditioning in the spaces they occupy.

At a recent summit in London, held at the Royal Society of Medicine, Ergro assembled a panel of experts to answer some of these questions and to raise awareness of the issues surrounding the ban of R22.

The panel introduced the subject from their various perspectives and took questions from an invited audience comprising building managers, consultants, architects and business leaders.
There were several points upon which the panel was in complete agreement, chief among which was the need for people to gain the knowledge required to properly evaluate their position in relation to a date which, while it seems distant, taken in the context of the financial cycles and business-critical nature of the systems involved, is actually almost upon us.

I represented Ergro on the panel to offer the insight of a contracting engineer who works with air conditioning for skyscrapers, manufacturing, data centres and offices. Also on the panel were representatives of leading air-conditioning manufacturers Mitsubishi Electric and Daikin, legal and liability expertise from property law firm Taylor Wessing and chartered accountants and chartered tax advisors LB Group.

One question concerned the subtleties of supply and demand of the refrigerant itself. R22 is presently trading at around £30 per kilo in the UK, and this price is rising all of the time. When considering the fact that it will become illegal to buy or sell from the end of 2014 it would seem likely that the upward trend in its value will continue.

And what about installing new equipment? If it’s critical to the business that maintenance is possible and downtime avoidable, as it is in many of the instances where an estimated 750 000 systems using R22 exist, then a lot of companies will be looking to replace equipment at around the same time.
Needless to say, where demand outstrips supply in terms of the expertise to fit new systems, there are likely to be delays that could cause unnecessary risk to business continuity.

While it does seem to be a little way off, the R22 refrigerant ban will very soon make its presence felt across the business community. From now and for the next 18 months and beyond, building-services engineers will be at the heart of making business-critical systems compliant and serviceable into the future. But the whole facilities management and building services industry must come together with manufacturers and business services to help the business community to understand how the changes will affect them. Knowledge is power, and a full evaluation of existing systems will equip business leaders with the knowledge to make the right decisions to get ahead of the ban. More information and a countdown to the ban clock is available at the link below.

Kevin Groves is group operations director with Ergro
- See more at: http://www.modbs.co.uk/news/fullstory.php/aid/11893/Counting_down_to_the_ban_on_R22.html#sthash.HbKs8XtY.dpuf

Products Helpful in Recovery, Reclamation

By Peter Powell

April 8, 2013

While the reclamation process may not be meeting industry expectations, numerous manufacturers are offering equipment and devices that make the process easier than ever before. Listed below are a few of the industry’s newest products and technologies benefiting recovery and reclamation.

Atlantic Chemical & Equipment Co.’s (www.atlanticchemical.com) ACESeal AC/R and HVAC/R leak solutions seals small (up to 300 microns) leaks in condensers, evaporators, and refrigerant lines. The AC/R can handle up to 1.5 tons while the HVAC/R can handle up to 5 tons. The AceSeal is not a polymer-based sealant, so no drying agent is required. In addition, it does not require evacuation of refrigerant to input sealant, and the sealant blends with oil/refrigerant mix to travel to the leak. The oil and refrigerant escape through the lead while larger molecules in the sealant bond together to seal.

Fieldpiece Instruments’ (www.fieldpiece.com) SMAN4 is a four-port, wireless digital manifold that has a 3/8-inch port for evacuations and recovery. The four ports allow technicians to evacuate a system, pull a vacuum, add refrigerant, and dial in the charge at one time without having to hook or unhook any hoses.

Fluke Corp.’s (www.fluke.com) CNX Wire System wirelessly connects multiple measurement modules and sends simultaneous readings to a master device up to 20 meters away, allowing users to troubleshoot problems. The customizable tool set allows users to choose various measurement modules based on their specific troubleshooting scenario to read the measurements outside the arc flash zone.

General Tools & Instruments’ (www.generaltools.com) digital refrigerant leak detector (RLD400), which features a semiconductor sensor lifespan of more than 300 hours of operation or 10 years normal use. Three sensitivity levels let users choose the right level for specific environments.

Hilmor’s (www.hilmor.com) electronic gauge with vacuum sensor is a hybrid gauge with both analog and digital readouts with lights color coordinated to the selected refrigerant. It also features a micron gauge, self calibration, and is accurate to within 1 percent. The company also recently introduced a dual readout thermometer with thermocouple clamps that can be attached to any manifold using the hook provided. The tool features two digital temperature readouts so calculating superheat and subcool no longer requires multiple tools. An aluminum manifold has a forged aluminum body with rubberized handles, protective gauge boots, replaceable stainless steel valve stems, and a pressure indicator ring that allows users to mark a spot with a marker.

Polar Technology (www.refrigerantauthority.com) recently introduced TrakRef®, a proprietary and comprehensive refrigerant management program. As explained by the company, the product is designed to provide comprehensive and transparent tracking and management of refrigerants throughout their entire lifecycles. This includes from the time of purchase to deployment throughout maintenance cycles, through recovery and reclamation, to their final destruction at the end of the lifecycle. When the program is incorporated among the participating points in the supply chain, more of the original refrigerant is kept within the supply chain, ownership of the refrigerant can be accounted for, and regulatory compliance is inherently managed. It is available in three customized versions for contractors, distributors, and system owners.

Refco Mfg. Ltd.’s (www.refco.ch) Enviro is a one-knob operation refrigerant-recovery machine. It allows for recovery of all popular CFC, HCFC, and HFC refrigerants using an oil-less, air-cooled compressor. The Enviro is equipped with a self-purging mode as well as a built-in filter.

RefTec Intl. Systems LLC‘s (www.reftec.com) BullDog recovery/recycle/reclaim unit is available in three sizes, the unit processes R-22, R-134a, R-410A, R-11, R-123, and other common refrigerants with the same unit. It processes gas at speeds of 600 pounds per hour. Features include zero cross contamination of compressor oil to gas, portable design so it fits through standard 36-inch doorways, and single power source for unit and controls. The 80 percent tank-full float switch and 12-foot float cable ensure cylinders are not being overfilled.

Robinair (www.robinair.com) introduced the RG3000 Cube, a compact and lightweight refrigerant recovery machine from Promax. It is designed for liquid and vapor recovery of commonly used CFC, HFC, and HCFC refrigerants including R-410A. Equipped with a high-pressure shift-off switch, the machine automatically shuts off if pressure rises above 550 psi, helping to prevent pressure building in a tank or machine. The high-efficiency, cross-flow airflow design allows for more efficient refrigerant recovery leading to shorter cycle times, the company said. The company also displayed a refrigerant recovery, recycle, evacuate, and recharge machine. It can be used for multiple refrigerants. The portable machine’s microprocessor-controlled functions prompt the user through programming and signal preventive maintenance. The float chamber auto adjusts from liquid to vapor. The lockout panel prevents mixing of refrigerants. The heavy-duty filter drier removes moisture and acid from the refrigerant; it can handle 300 pounds between changeovers. The Promax® Cube™ refrigerant-recovery machine is capable of recovering both liquid and vapor refrigerant. The machine has a 1/3-hp, single-cylinder oil-less compressor.

Spectronics Corp.’s (www.spectroline.com) Optimax 400 leak-detection flashlight features power comparable to high-intensity, 150-W lamps, and an inspection range of up to 25 feet.

SuperCool’s (www.supercoolsliderule.com) Slide Rule is an R-22 and R-410A charging and duct calculator that performs superheat, subcooling, and duct calculations in one tool. Fixed meter-device charging is provided for R-22 and R-410A. TXV charging is also provided for R-22 and R-410A.

Superior Signal Co. LLC (www.superiorsignal.com) introduced the AccuTrak® VPE-GN ultrasonic leak detector with a 9 ½-inch gooseneck. The unit is sensitive to the ultrasonic sound of a turbulent gas leak. Using a technology called heterodyning, it translates the sound to a lower frequency which human ears can interpret, said the manufacturer. The device maintains the original sound characteristics, making it possible to distinguish leaks from other background sounds. The leak detector is designed to pinpoint leaks in air conditioning and refrigeration systems, acknowledging present air, vacuum, refrigerant, or gas leaks.

Testo AG’s (www.testo.com) testo 316-3 is a refrigerant-leak detector that includes a sensor head, transport case, calibration certificate, batteries, and a filter. It has one-button operation and the high/low sensitivity adjustment allows users to pinpoint the leak source. The company also offers the testo 310 and testo 320. The 310 is a residential combustion analyzer with a built-in condensate trap. The 320 is a high-definition combustion analyzer for both residential and commercial applications. There are many features with the 320, including its full-color, high-definition screen.

Universal Enterprises Inc. (www.ueitest.com) introduced the DRS220 digital refrigerant scale, which measures weight in both metric and English units, is programmable, and has a built-in alarm to indicate a programmed threshold has been exceeded.

Publication date: 4/8/2013

Peter Powell is Refrigeration Editor. E-mail him at peterpowell@achrnews.com.

Reclamation Looking for Jumpstart

By Peter Powell

April 8, 2013

A fractional distillation tower in Ohio.
(Photo courtesy of A-Gas RemTec.)

Reclamation is in a rut. Shortly after the arrival of the Montreal Protocol, 25 years ago, came the 3 R’s: Recover, Recycle, and Reclaim. Service technicians would recover refrigerant to avoid fines for illegal venting. They’d then run the gas through an on-site recycling machine to clean it up a bit. But if they were not sure how pure the stuff they were planning to put back into the system was, they would put a virgin version of the same refrigerant into the system and send the old stuff to off-site reclamation facilities, to be brought back to the certified highest level of purity — ARI 700. The reality is that in 2012, and thus far in 2013, few technicians and contractors are bringing R-22 back for reclamation despite an abundance of capacity at many reclamation facilities. “Based on the U.S. Environmental Protection Agency (EPA) report, the amount of R-22 reclaimed year over year has remained relatively flat for the past five to six years, hovering around 5 or 6 percent of HCFC-22 demand,” said Debra D. Goodge, refrigerant reclaim programs manager for DuPont. “Beginning in 2010 with the issuance of the Final Rule (regarding phase out of R-22), there was an expectation that reclaim would be needed to fill a projected R-22 supply-demand imbalance — somewhere in the neighborhood of 27.5 million pounds each year. For the past two years, there has not been an uptick in the amount of reclaimed R-22 going through reclaimers. It’s remained steady around 8 million pounds.” Christopher Foutz, marketing manager, Honeywell Refrigerants, said, “The amount of R-22 reclaimed in 2011 was similar to the amount of R-22 that was reclaimed in 2006.”

What’s the Problem?

“One of the major contributors to the flat or declining recovery rate is that many R-22 users have adopted a practice of reusing their recovered refrigerant,” said Gordon McKinney, vice president and COO, ICOR Intl. “Even though some might be making an attempt to recycle (filter out particulates and/or separate out oils), without properly analyzing the recovered gas to determine composition and quality, the user and equipment owner are rolling the dice.”

Walt Baker, vice president of sales and marketing, Polar Technology, said, “A lot of this can be attributed to the commodity nature of refrigerant gases. Supplies are plentiful and prices reflect the availability of supplies. Therefore, the role of reclaim has been relegated to philosophies regarding environmental stewardship.”
Then there is the economics of reclamation for the contractor, said Ken Beringer, senior vice president of Airgas Refrigerants Inc. “The industry has not seen a significant increase in returned R-22 because, in my opinion, the majority of the product is harvested in small batches which do not have a great deal of value. Until January 2012, the returned gas had very little value and, in many cases, there was a disposal charge when the product was returned.”

Patti Conlan, who manages the reclaim program for Arkema, said, “In the past, the volume of reclaim has been low due to monetary gains not being passed down to the contractor level as an incentive to reclaim, as well as the possible legal and illegal reuse of R-22.”

Yet awareness is growing, said James Sweetman, president, Consolidated Refrigerant Solutions. “We have seen heightened awareness among contractors regarding the need to become involved in a viable reclaim program.”

Arkema’s Conlan is also predicting an uptick. “As the EPA has anticipated, we have just recently started to see an increase in reclaim coming back with the increasing price of R-22.” Said Beringer, “With the phaseout of HCFCs, the amount returned should increase as the price of used gas continues to rise. The very rapid appreciation in new product pricing may have led to the illegal practice of filtering used product and introducing it into the system of a different owner.” Ken Logan, president of A-Gas U.S. Holdings Inc., agrees, stating that “Currently the decreasing availability of virgin product is starting to make a difference. Over time the gap will widen further and the two will become inversely proportional.”

The HFC Factor

Also entering the equation is the industry’s focus on the use of HFC refrigerants as retrofits into systems originally designed for R-22. Owners of large amounts of equipment can move recovered R-22 around to not-yet-retrofitted systems and may or may not look at the reclamation option.

Honeywell’s Foutz said, “Retrofit HFC refrigerants have been available for several years. To date, the availability of the retrofit HFC refrigerants has not stimulated significant growth in R-22 reclamation. As R-22 supplies tighten, the economic incentive should stimulate retrofits to HFC refrigerants and stimulate R-22 reclamation growth.”

ICOR’s McKinney looks at the HFC retrofit from a historical perspective. “If given the opportunity, equipment owners will squeeze the most life out of their systems as possible. It was R-12-alternative HCFC refrigerants that played the most significant role in closing the supply/demand gap during the CFC phase out. Based upon the tremendous market shift in the last few months to HFC alternatives, history is set to repeat itself.”

He noted, “In the near future the R-22 supply — virgin and reclaimed — will be set aside for critical applications where alternative refrigerants are not suitable, such as flooded chillers and systems that have highly sophisticated refrigerant-specific controls.”

For A-Gas’s Logan, this can be iffy. “Keep in mind, retrofitting a system to a refrigerant it wasn’t initially designed for normally involves compromises and not everything is capable of retrofit. The industry itself will decide what can and cannot be retrofitted successfully. Retrofit activity will help conserve supplies of reclaimed R-22 overall.”

Jump Start

What will jump start the sector?

DuPont’s Goodge said, “It is a matter of supply-demand dynamics. If R-22 supply is limited, or the price increases dramatically, there is added incentive to manage the R-22 asset. A major element of a refrigerant management plan is extracting value from the installed R-22. Options include using recovered R-22 to do one or more of the following: gain access to lower-cost R-22 to continue to service equipment that remains on R-22, lowering the cost to retrofit existing equipment to an alternative HFC refrigerant, and/or reducing equipment replacement costs by extending the life of R-22 equipment by using either reclaimed R-22 or an HFC alternative.”

Airgas’s Beringer said it is a matter of economics, “People do not waste what is valuable. If the EPA had more enforcement, and made people accountable for their used product, then the culture would change. Higher pricing should help.”

As will awareness, said Consolidated’s Sweetman. “We believe that there is sufficient interest within the cooling and refrigeration industry to support increased reclamation. Companies that, for years, have been ‘kicking the can down the road’ or ‘dragging their butts’ are really starting to get on the ball. These contractors that have been conducting business as usual are finally reaching out to us for a more viable reclaim option.”

Publication date: 4/8/2013

Peter Powell is Refrigeration Editor. E-mail him at peterpowell@achrnews.com.

EPA Finalizes R-22 Allocations for 2012-2014

By Charlie McCrudden | April 4, 2013 | Leave a Comment

On April 3, the U.S. EPA published in the Federal Register the final rule adjusting the allocation of HCFCs (including R-22 refrigerants) for the years 2012-2014 (2013 Final Adjustment Rule).

According to the Final Adjustment Rule, R-22 allowances for 2013 will rise by about 13% relative to 2012, and decrease by 20% in 2014 relative to 2012. The allocations for the years 2015-2019 will be set in a subsequent rulemaking. These allocations became effective on April 3, 2013.
See the chart below (click to enlarge).

Contractors may want to contact their wholesalers or gas distributors to inquire about any changes in pricing or sales policies in light of the 2013 Final Adjustment Rule. Despite the unexpected increase in the allocations for 2013, the market remains volatile and prices for R-22 may not respond to the increased supply.

Background
The U.S. EPA controls the production and use of HCFCs, including the refrigerant R-22, through a cap and trade program. The amount of virgin R-22 that can be produced in a given year is set by annual allocations. The production and use of HCFCs is slowly being phased out in the United States, because these chemicals are known to damage the ozone layer when released into the atmosphere.

In 2011 the EPA was ordered to reopen the 2009 Allocation Rule that set the allocations for the years 2010-2014. The order came from the U.S. Court of Appeals for the District of Columbia Circuit in a lawsuit filed by two gas producers who charged that the EPA had failed to recognize their legally traded allocations.
In August 2011, the EPA proposed to adjust the R-22 allocations in the three remaining years of the 2009 Allocation Rule (2012-2014).

Based on consultation with industry stakeholders, the EPA determined there was an oversupply of virgin R-22 in the marketplace, evident with low demand, increased reuse of R-22, and low wholesale prices. In 2010, R-22 producers only utilized 86% of their allocations. A trade organization representing the manufacturers and importers of R-22 supported these claims, and advocated for a 20% reduction in allocations for 2012-2014.

Since 2012 refrigerant producers and importers have been operating with only temporary, 12 month authority through “No Action Assurance” letters from the EPA. Without a finalized Adjustment Rule, and without the No Action Assurance letters, virgin R-22 could not be legally produced or imported into the United States. The No Action Assurance letter from the EPA advised allocations would be less than the 2009 Allocation Rule.

The 2013 Final Adjustment Rule sets the allocations for the years 2012 (retroactively), 2013, and 2014.
In 2013, the total amount of R-22 allocated to all producers and importers is about 62.8 million pounds, compared with about 55.4 million pounds allocated for 2012. In 2014, the total allocation of R-22 will drop to 51 million pounds.

The EPA Cracks Down on Illegal R-22 Importation and Sale

The Alliance for Responsible Atmospheric Policy, an industry coalition, said in November 2012 the United States government successfully concluded 11 criminal and civil cases related to HCFC-22 refrigerant smuggling over the last two years. The alliance said that individuals and companies were found guilty of various crimes related to the illegal importation or sale of over 3.3 million pounds of R-22, fined over $1.5 million, required to forfeit proceeds of almost $2.7 million, and received jail and probation amounting to over 26 years.


“The U.S. government is very serious about tracking down those who illegally import or sell HCFC-22. Anyone devising illegal schemes to import or sell this refrigerant is on notice that the U.S. will arrest and convict you,” said Dave Stirpe, alliance executive director.

Only Buy Legal R-22

Stirpe went on to say that the alliance cautions industry and the public to be certain that their R-22 refrigerant purchases are legal, and to report any offers to buy illegally imported refrigerants to the U.S. Environmental Protection Agency (EPA). R-22 refrigerant may be legally produced domestically and imported into the U.S. provided that EPA-issued quota allowances are expended. Anyone importing HCFCs without legal allowances is in violation of federal law. R-22 is generally used to service and maintain existing commercial air conditioning and refrigeration equipment. Newly produced equipment generally relies on HFCs and other refrigerants.

"Purchasers of the illegal refrigerant are at risk,” Stirpe said. “The government may confiscate any illegally imported refrigerant, even if it has been passed down through the marketplace, and it may prosecute purchasers who knowingly buy illegal material. Consumers should also be wary of the refrigerant since some of the imported material has been found to be of poor quality, or it could be counterfeit.”

He went on to say that purchasers of imported R-22 should verify that their importer is an authorized EPA baseline consumption allowance holder, or was involved in a subsequent legal trade of consumption allowances. An EPA list of baseline consumption allowance holders can be found at www.epa.gov/ozone/title6/allowance.html.

Some other points made by the alliance about importation and purchase of R-22:

• The recipient of a trade can show a letter from EPA acknowledging the approval of the trade.

• Purchasers who question the legitimacy of an HCFC-22 importer should request a copy of the EPA approval letter from the seller.

• Importers of used HCFCs must follow EPA petition process requirements listed at www.epa.gov/ozone/title6/imports/usedclasstwo.html.

• Violations should be reported at www.epa.gov/tips/, and may be done so anonymously.