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Page 1: CHECK FOR RECORDINGS & UPCOMING SESSIONS: … · DYNAMIC MARKETS LIGHT-COMMERCIAL REFRIGERATION North America has nearly 300,000 HFC-free units - 181,000 HC + 109,000 CO2 = 17 times
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CHECK FOR RECORDINGS & UPCOMING SESSIONS:

WEBINARWEDNESDAY.NET

HTTPS://WWW.YOUTUBE.COM/CHANNEL/UCHAG247AMJSVLJJGVMGPS9G

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CONTACT US: [email protected]

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Nina Masson Chief Market Development Officer, shecco

Jan Dusek Business Development Manager, shecco Japan

Klara Skacanova Deputy Manager Market Development, shecco Europe

speakers:

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GUIDE JAPAN 2016 - STATE OF THE INDUSTRY INTRODUCTION & OVERALL TRENDS

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Nina holds two Master’s degrees in business Management and in Environmental Management. For the last 10 years, she has been working in the field of environmental technologies, where she has developed special expertise on natural refrigerants. Today, she is active in market development and consultancy services, as well as special projects and publications. She has been drafting and supervising global studies on behalf of United Nations agencies, as well as serving as an expert for EU and UN projects.

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ABOUT THE GUIDE JAPAN

01

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www.shecco.com

GUIDE JAPAN OVERVIEW

8

2016

GUIDE TO NATURAL REFRIGERANTS IN JAPAN

— STATE OF THE INDUSTRY

M A G A Z I N EADVANCING HVAC&R NATURALLY

SPECIAL EDITION JUNE 2016

GUIDE to Natural Refrigerants in Japan - State of the Industry 2016

• 1st ever comprehensive guide on natural refrigerants, market, technology and policy trends

• Technology & market maps

4 sectors in focus: commercial, light commercial, industrial refrigeration, heat pumps

Voice of key industry players

Industry survey

Market outlook

Case studies

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www.shecco.com

GUIDE JAPAN OVERVIEW

9

2016

GUIDE TO NATURAL REFRIGERANTS IN JAPAN

— STATE OF THE INDUSTRY

M A G A Z I N EADVANCING HVAC&R NATURALLY

SPECIAL EDITION JUNE 2016

• supported by market leaders for natural refrigerants in Japan

• … serving a variety of applications

• available at: http://publications.shecco.com

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www.shecco.com

SURVEY DRIVERS FOR NR USE IN JAPAN

10

Lack of negative environmental impact is the most important driver

Efficiency & performance and compliance with legislation are also very important factors

Financial incentives rank higher than in other regions indicating the important role that the subsidies for NR technology are playing in the market

= the importance of policy drivers

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www.shecco.com

SURVEY PROFILE OF RESPONDENTS

11

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DYNAMIC MARKETS

02

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www.shecco.com

DYNAMIC MARKETS LIGHT-COMMERCIAL REFRIGERATION

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www.shecco.com

DYNAMIC MARKETS LIGHT-COMMERCIAL REFRIGERATION

North America has nearly 300,000 HFC-free units - 181,000 HC + 109,000 CO2 = 17 times more than 3 years ago

strong trend for HC use in food service

Europe has more than 2 million HFC-free units (also in ice cream freezers, bottle coolers etc.) - mostly HC

use for plug-in systems

use of HC also in refrigeration for food retail

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www.shecco.com

DYNAMIC MARKETS LIGHT-COMMERCIAL REFRIGERATION

China is quickly catching up with the uptake of NR-based equipment not only in light-commercial refrigeration (official launch of list of refrigerant alternatives for HFC phase down expected for September)

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www.shecco.com

DYNAMIC MARKETS LIGHT-COMMERCIAL REFRIGERATION

16

1.35 million beverage vending machines in Japan use either hydrocarbons or CO2

natural refrigerants make up over 50% of the market

from 0.1% to 52% market share in just 10 years ! = a clear Japanese success story

hydrocarbons carbon dioxide

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www.shecco.com

DYNAMIC MARKETS LIGHT-COMMERCIAL REFRIGERATION

17

with the world’s highest number of beverage vending machines per capita the use of NR in this sector will continue to have a significant impact on the overall market

BUT: Japan has not made similar progress in NR use for small plug-in units - a major trend in other world regions (especially for HC)

hydrocarbons carbon dioxide

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www.shecco.com

DYNAMIC MARKETS CO2 TC STORES IN THE WORLD

18

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www.shecco.com

DYNAMIC MARKETS CO2 TC STORES IN THE WORLD

19

… with different technology focus (CO2 TC vs. CO2 cascade), store

formats (large vs. CVS) & retailer commitment

south africa and indonesia stand out … again as a result

of individual food retailers’ drive to go CO2

three hot spots have emerged: europe, asia (mostly japan) and north america

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www.shecco.com

DYNAMIC MARKETS COMMERCIAL REFRIGERATION

20

from 190 CO2 stores to 1,500+ in just 2 years - a major success story putting Japan to the forefront of global CO2 adoption!

out of that 1,463 are small CVS which use less than 10 kW

= 4% of stores from Japan’s three leading CVS brands

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www.shecco.com

DYNAMIC MARKETS COMMERCIAL REFRIGERATION

21

BUT: only 72 supermarkets have CO2 TC refrigeration - one reason: the High Pressure Gas Safety Act slows down their use in larger systems

next trend: exporting Japanese CO2 technology to Indonesia, Taiwan, South East Asia …

… and to Europe and North America where there is a need for CVS refrigeration systems with natural refrigerants

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www.shecco.com

SURVEY CO2 IS LEADING JAPAN’S NR MARKET

22

Japan has developed a strong technology leadership for CO2-based technology - a development that got fast-tracked after the introduction of R744 heat pumps more than 15 years ago… and that is now expanding to other application areas

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www.shecco.com

DYNAMIC MARKETS INDUSTRIAL REFRIGERATION

23

the market is changing, from a strong reliance on R22 to a renewed uptake of (lower charge) NH3 systems

300+ installations use secondary NH3-CO2 systems

BUT: the use of CO2 transcritical systems still faces restrictions through the High Pressure Gas Safety Act (an emerging trend in other world regions)

NEXT: export of the technology to other regions

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www.shecco.com

DYNAMIC MARKETS INDUSTRIAL REFRIGERATION

24

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www.shecco.com

DYNAMIC MARKETS JAPAN EXPORT TO THE WORLD

25

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JAPAN’S NATURAL REFRIGERANT MARKET & KEY APPLICATIONS

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Jan holds a Doctor of Engineering degree in System

Design from Hosei University in Tokyo and a Master’s

degree from the Czech Technical University in Prague.

During his studies, and research undertaken in the

USA, Europe and Japan, Jan has centered his

academic focus on environmental technologies and

marketing strategies. Jan is currently based in Tokyo,

responsible for business development activities in the

Asia-Pacific region on behalf of shecco Japan.

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CURRENT NR USE IN JAPAN

03

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www.shecco.com

ECOSYSTEM FOOD CHAIN

29

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www.shecco.com

ECOSYSTEM FOOD CHAIN

30

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www.shecco.com

ECOSYSTEM CITY & BUILDINGS

31

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www.shecco.com

ECOSYSTEM CITY & BUILDINGS

32

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www.shecco.com

ECOSYSTEM SPECIAL APPLICATIONS

33

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LIGHT-COMMERCIAL REFRIGERATION

04

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www.shecco.com

LIGHT-COMMERCIAL REFRIGERATION VENDING MACHINES

35

1.35 million beverage vending machines in Japan use either hydrocarbons or CO2

natural refrigerants make up over 50% of the market

from 0.1% to 52% market share in just 10 years ! = a clear Japanese success story

hydrocarbons: 511,000 units carbon dioxide: 840,000 units

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www.shecco.com 36

Coca-Cola Japan

“By 2020, all vending machines in the market with Natural Refrigerant”

130,000+ Peak Shift Vending Machines (CO2 VM)

power used for cooling is completely zero for up to 16 hours

power consumption during day time is reduced by up to 95%

LIGHT-COMMERCIAL REFRIGERATION CASE STUDIES

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www.shecco.com 37

CO2 ejector technology

market installation started in 2015

recover the lost energy by using the high operating pressure

power consumption reduced by 25% compared with top class HFO vending machine

LIGHT-COMMERCIAL REFRIGERATION CASE STUDIES

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www.shecco.com 38

• nearly 3/4 of survey respondents expect that NR in commercial refrigeration will continue to grow at least until 2020

• no survey respondents expect that the uptake of NR will decrease

• the use of hydrocarbons and CO2 is expected to grow in bottle coolers, plug-in cabinets, vending machines

BUT: stronger commitment for NR by local and global consumer brands is needed to avoid use of new unsaturated HFCs

LIGHT-COMMERCIAL REFRIGERATION EXPECTATIONS

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COMMERCIAL REFRIGERATION

05

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www.shecco.com

DYNAMIC MARKETS COMMERCIAL REFRIGERATION

40

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www.shecco.com 41

COMMERCIAL REFRIGERATION CASE STUDIES - CVS

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www.shecco.com 42

COMMERCIAL REFRIGERATION CASE STUDIES - SM

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www.shecco.com 43

CO2 condensing units - mainstream NR solution

two major domestic suppliers, refrigeration units 2-20 HP (1.5-15kW)

2nd generation of CO2 TC systems, pressure control type, CO2 cascade refrigeration system

no ejectors yet, no integral systems yet

COMMERCIAL REFRIGERATION CASE STUDIES

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www.shecco.com 44

Typical CVS installation

Typical SM installation

COMMERCIAL REFRIGERATION CASE STUDIES

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www.shecco.com 45

First CO2 booster system in Japanese SM

42 HP unit, 4 compressors by GEA Bock (2MT, 2LT)

cooling capacity 33kW refrigeration + 7.5kW freezing

mid-size SM with 12 showcases for both MT and LT

COMMERCIAL REFRIGERATION CASE STUDIES

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www.shecco.com 46

Plug-in showcases available with CO2 and HC

number of Japanese manufacturers offer CO2 plug-in showcases

two European suppliers offer HC R290 plug-ins - first 200 units in the market (charge 70-120 grams of R290)

MOE subsidy available for both CO2 and HC plug-ins

COMMERCIAL REFRIGERATION CASE STUDIES

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www.shecco.com 47

New technology trends

larger CO2 condensing units, up to 30 HP

first CO2 booster systems in CVS, larger booster system pilots in SM

next challenges: NH3/CO2, ejectors, integral systems with larger CO2 systems, CO2 TC rack

COMMERCIAL REFRIGERATION EXPECTATIONS

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INDUSTRIAL REFRIGERATION

06

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www.shecco.com 49

NH3/CO2 secondary system - mainstream NR solution

prefabricated systems; reduced charge of NH3 down to 21kg per system; cooling capacity 100-300kW

two major domestic manufacturers, 300+ projects mainly in food manufacturing and cold stores, 1000+ units in the market

air as a refrigerant cycle for very low temperatures

MOE subsidy available for the sector

INDUSTRIAL REFRIGERATION CASE STUDIES

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www.shecco.com 50

New technology trends

first CO2 booster system to cool a tunnel freezer for food processing

NH3/CO2 cascade refrigeration systems - pilot projects planned for 2016

next challenges: NH3/CO2, ejectors, integral systems with larger CO2 systems, CO2 TC rack

INDUSTRIAL REFRIGERATION CASE STUDIES

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HEAT PUMPS

07

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www.shecco.com

HEAT PUMPS CO2 HP WATER HEATERS “ECOCUTE”

52

Eco Cute (CO2 heat pump) has been a run-away success, with strong government support

10 million expected by 2020

98% of all new residential HP water heaters

400-500k new units per year - 5 million+ in total

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www.shecco.com 53

HEAT PUMPS CASE STUDIES

Technology trends

CO2 ejector, line up for cold climate, thin shape, high pressure

CO2 refrigeration cycle constantly improved since 2001 - other improvements on periphery (remote control, water tank, water pressure, connectivity,…)

next challenges: cost reduction

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www.shecco.com 54

HEAT PUMPS CASE STUDIES

New technology trends

first hybrid HC heat pump water heater using R290, 2000 units in the market supplied by a Japanese manufacturer

CO2 competing with HC and R32 in the residential sector

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JAPAN’S POLICY

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Klara holds a Master’s degree in International Relations from t University of Economics in Bratislava, Slovakia. She is an expert on following legislative developments with an impact on the heating and cooling industry at national, European and international levels, and informs decision-makers about the latest trends in the field of natural refrigerants.

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JAPAN PROMOTES NATURAL REFRIGERANTS

08

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www.shecco.com

SURVEY POLICY DRIVERS FOR NR USE IN JAPAN

58

lack of negative environmental impact …..

efficiency & performance and

compliance with current & future legislation are also very important factors

financial incentives rank higher than in other regions indicating the important role that the subsidies for NR technology are playing in the market

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www.shecco.com

SURVEY POLICY DRIVERS FOR NR USE IN JAPAN

59

government financial subsidies to end-users (purchase of equipment) & to manufacturers (R&D) are considered the most significant driver

global HFC phase-down could be an important driver once agreed

energy efficiency targets and training & certification requirements for NR are not seen as major drivers in Japan

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www.shecco.com 60

JAPAN F-GAS LAW

effective as of April 2015

targets the entire life cycle of f-gases, from production to destruction

reduced f-gas leakage from commercial equipment: periodical checks, maintenance, reporting etc.; proper refill and recovery; obligation of destruction

promotion of low-GWP / non f-gases alternatives for designated products (incl. condensing units and refrigeration units > 1.5kW, cold storage warehouses,…)

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www.shecco.com 61

JAPAN F-GAS LAW DESIGNATED PRODUCTS

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www.shecco.com 62

JAPAN F-GAS LAW DESIGNATED PRODUCTS

instead of imposing bans on high GWP HFCs (such as EU F-Gas Regulation), Japan sets target per product group

GWP targets are set for sectors with highest environmental impact where low GWP or non-fluorinated replacements exist

compliance by manufacturers is measured as weighted average GWP value of entire production and import

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www.shecco.com

preliminary calculation by MOE & METI shows the anticipated effect of measures on HFC emissions reduction

by 2030 promotion of low GWP alternatives is expected to deliver 5-8-times higher reductions than containment measures

63

2010 2020 2030

BAU 17.3 40.2 48.1

Promotion of low GWP alternatives

3.9 ~ 6.6 22.1 ~ 27.3

Containment from

commercial equipment

5.3 ~ 9.5 2.7 ~ 5.6

Total reduction 9.7 ~ 15.6 25.5 ~ 31.8

JAPAN F-GAS LAW EFFECT OF MEASURES

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JAPAN’S SUBSIDY SCHEME … GROWING IN SIZE & SCOPE

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TOKYO SUBSIDIES PROMOTING NR LOCALLY

Tokyo Metropolitan Government promotes use of natural refrigerants

targets energy-efficient showcases using NR and provides up to 1/3 of installation cost

200 mil Yen ($1.7 mil) in 2016 (roughly 30 units)

aimed at small and medium-sized businesses

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HIGH PRESSURE GAS SAFETY ACT BARRIER TO CO2

High Pressure Gas Safety Act(s) as a barrier for CO2 in larger equipment (supermarkets, industrial refrigeration)

CO2 equipment above 40~50 HP (30~37kW) effectively banned due to necessary administrative permissions & regular checks compared to other refrigerants

Act is outdated and many players are requesting a revision

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TOP RUNNER PROGRAMME ENERGY EFFICIENCY

introduced in 1999 for energy-intensive products

sets energy efficiency requirements for 21 product categories (e.g. CO2 heat pumps - EcoCute)

encourages companies to develop more efficient models to compete for the ‘Top Runner’ award

government can issue recommendations or publish names of companies that fail to meet the targets - so far this has not happened

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JAPAN’ INTERNATIONAL POLICY DRIVING NR USE GLOBALLY

Japan is committed to phasing out of HCFCs under the Montreal Protocol by 2020

supports global HFC phase-down in the on-going discussions under the Montreal Protocol = an amendment would lead to legislative changes in Japan

provides support for implementing projects in developing countries through Japan’s Joint Crediting Mechanism (JCM)

= energy savings and f-gas emission reductions achieved by such projects translate into emission reduction credits and count towards meeting the country’s greenhouse gas reduction targets

example: CO2 transcritical technology introduced in Indonesia

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CONCLUSIONS

09

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TREND 1: GROWTH SECTORS FOR NR IN JAPAN

the use of CO2 in (light-)commercial

refrigeration and heat pumps, NH3-CO2 industrial refrigeration will continue

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TREND 2: POTENTIAL FOR MORE NR IN JAPAN

near-term potential: HC in light commercial, CO2 in

industrial refrigeration, CO2 in supermarkets

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TREND 2: POTENTIAL FOR MORE NR IN JAPAN

medium / long-term potential: moving towards

next-generation NR integrated systems in CVS and supermarkets = “all-natural” stores; CO2 mobile

air conditioning

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TREND 4: JAPAN’S NR TECHNOLOGY IN THE WORLD

NR technologies tested and commercialised nationally

are increasingly reaching export markets where they have competitive advantage - NH3/CO2

industrial refrigeration, CO2 for convenience stores, CO2 heat pumps, CO2 light

commercial refrigeration…

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MORE INFORMATION

10

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AVAILABLE GUIDES

75

China 2015

North America 2015

Europe 2014

China Business Directory 2015 Japan 2016

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AVAILABLE FREE MAGAZINES

76

Accelerate Japan

The Natural Voice Magazine

Accelerate Europe

Accelerate America Accelerate Australia & NZ

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MORE INFORMATION

77

Industry Platforms:

www.hydrocarbons21.com

www.R744.com

www.ammonia21.com

www.R718.com

shecco Publications, incl.

GUIDEs

http://publications.shecco.com

Accelerate Magazines:

www.accelerate.shecco.com

ATMOsphere

conferences:

www.ATMO.org

#WebinarWednesday

www.webinarwednesday.net

The Natural Voice

www.thenaturalvoice.org