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    The ETS and Carbon Footprint.

    How will it effect me.

    DARREN RAWNSLEYNATIONAL CONTRACTS MANAGER

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    Greenhouse effect

    Refers to the change in thermal equilibrium of thePlanet by presence of an atmosphere containing gasthat absorbs infrared radiation

    There are several types of Greenhouse gases.Naturally occurring like Carbon Dioxide and Methaneand Synthetic like HFCs.

    The Greenhouse gases warm the atmosphere byabsorbing thermal infrared radiation emitted by theEarths surface. The atmosphere also radiates thermalinfrared in all directions including downwards towards

    the Earth. http://earthguide.ucsd.edu/earthguide/diagrams/greenh

    ouse/

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    With out a Greenhouse effect the average surfacetemperature of 14 degrees would be about 18 degrees

    Ice core data shows that over the last 800,000 years

    carbon dioxide values has varied from low of 180 ppmto a pre- industrial level of 270 ppm.

    Since 1960 the atmospheric concentration has

    increased from 313 ppm to 375 ppm in 2005 The current level (May 2008) of387 ppm is 40% upsince the industrial revolution. This level exceeds thegeological record maximum of 300 ppm from ice core

    data

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    GWP

    Global Warming Potential is a measure of how much agiven mass of greenhouse gas is estimated tocontribute to global warming.

    The scale is relative and compares the gas in questionto that of the same mass of Carbon Dioxide ( whoseGWP is by definition 1 )

    It is important to note that the GWP is calculated over aspecific timeframe ( 100 years IPCC II 1996 )

    GWP value depends on how the gas concentrationdecays over time in the atmosphere.

    A high GWP correlates with a large infrared absorptionand long atmospheric life time.

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    GWP VALUES

    R22 1500 ODP 0.055

    R134a 1300

    R404a 3260 R410a 1720

    R717 0

    R744 1

    All GWP values based on 100year time scale according toIPCC II (1996) basis for Kyoto

    protocol

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    Relationship to 1 tonne of CO2-e

    One of the difficulties is trying to relate to GWP values.How big is 1 tonne of CO2 ?

    1 Disposable of R404a GWP = 10.9kg x 3260 which =

    35,534kg or35.534 tonne CO2e. McAlpine Hussmanns 5 months Diesel consumption

    was 13,389 litres which generated 35.481 CO2e. Our

    Auckland facility consumed 159,544 kwh over the same5 month period for33.345 CO2e.

    The average 350 cow dairy farm generates 1632 CO2etonnes per annum. When compared with R404a this

    equates to 500kg. A small to medium size Supermarketwould have a similar charge. At a 20% annual leakagerate over 5 years we would have the same emissions.

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    Carbon Footprint

    To ascertain the plants carbon footprint we use acalculation known as TEWI ( TOTAL EQUIVALENTWARMING IMPACT )

    The TEWI calculation takes into account the direct andindirect emissions over the expected life time of theplant.

    In simple terms the direct emissions are refrigerantleakage and the indirect emissions is the annual energyconsumption.

    It is important to note that the energy consumption of

    the plant is the significant proportion of the CarbonFootprint.

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    TEWI examplec:\my docs\Energy Analysis\TEWI Calcs_081107.xls

    TEWI ANALYSIS Effective : 7-Nov-08Supercedes: nil

    Project : Example Conventional

    System Lifetime = 20 (years)

    CO2 = 1.00 (CO2 equivalent)

    TEWI / GWP Details :- R404a = 3260.00 (CO2 equivalent)

    R134a = 1300.00 (CO2 equivalent)

    Electricity = 0.45 kgs CO2 / kwhr

    As Tendered

    Conventional

    R404a DX

    Units Power Consumption Components Details System

    Electricity consumption

    kwhrs per 24hrs ex Energy Analysis worksheet (kWhrs / day) 3300

    kwhrs per annum kWhrs/day x365 days/annum 365

    Total (kwhrs per annum) 1204500.0

    Charge details

    kilograms R404a 968.0

    kilograms R134a 0.0

    kilograms CO2 (R744) 0.0

    Customer specified % Leak Rate (% per annum) 10.0%

    Customer specified % Recovery at end of life (%) 75.0%

    Customer specified (years) System Life (years) 20.0

    kgs per annum Leakage R404a (kgs per annum) 96.8

    kgs per annum Leakage R134a (kgs per annum) 0.0

    kgs per annum Leakage CO2 R744 (kgs per annum) 0.0

    TEWI (tonnes CO2 per annum)tonnes CO2 per annum Total Indirect per annum 542.03 tonnes of CO2 per annum

    tonnes CO2 per annum Total Direct per annum 315.57 tonnes of CO2 per annum

    tonnes CO2 per annum Total per annum 857.59 tonnes of CO2 per annum

    tonnes CO2 over System Life Tota l over System Specified Life time (20 years) 17940.78 tonnes of CO2 per annum

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    TEWI @ 20% LEAK RATEc:\my docs\Energy Analysis\TEWI Calcs_081107.xls

    TEWI ANALYSIS Effective : 7-Nov-08Supercedes: nil

    Project : Example Conventional

    System Lifetime = 20 (years)

    CO2 = 1.00 (CO2 equivalent)

    TEWI / GWP Details :- R404a = 3260.00 (CO2 equivalent)

    R134a = 1300.00 (CO2 equivalent)

    Electricity = 0.45 kgs CO2 / kwhr

    As Tendered

    Conventional

    R404a DX

    Units Power Consumption Components Details System

    Electricity consumption

    kwhrs per 24hrs ex Energy Analysis worksheet (kWhrs / day) 3300

    kwhrs per annum kWhrs/day x365 days/annum 365

    Total (kwhrs per annum) 1204500.0

    Charge details

    kilograms R404a 968.0

    kilograms R134a 0.0

    kilograms CO2 (R744) 0.0

    Customer specified % Leak Rate (% per annum) 20.0%

    Customer specified % Recovery at end of life (%) 75.0%

    Customer specified (years) System Life (years) 20.0

    kgs per annum Leakage R404a (kgs per annum) 193.6

    kgs per annum Leakage R134a (kgs per annum) 0.0

    kgs per annum Leakage CO2 R744 (kgs per annum) 0.0

    TEWI (tonnes CO2 per annum)tonnes CO2 per annum Total Indirect per annum 542.03 tonnes of CO2 per annum

    tonnes CO2 per annum Total Direct per annum 631.14 tonnes of CO2 per annum

    tonnes CO2 per annum Total per annum 1173.16 tonnes of CO2 per annum

    tonnes CO2 over Sys tem Life Tota l over System Speci fied Life time (20 years) 24252.14 tonnes of CO2 per annum

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    COMPARISIONS

    Total Refrig. Costsdifference

    BaselineUS$ 156,120( 8.8% more)

    US$ 68,542( 3.9% more)

    LT Cooling Duty 68.0 kWs 68.0 kWS 68.0 kWs

    MT Cooling Duty 250.0 kWS 250.0 kWs 250.0 kWs

    Average Daily

    Energy consumption

    3,300.0 kWhrs/day 3,150.0 kWhrs/day 3,000.0 kWhrs/day

    Energy difference Baseline 4.7% less energy use 9.0% less energy use

    Energy Cost perannum at

    US$0.1125/kWhrUS$ 134,392 US$ 129,346 US$ 123,187

    Energy Cost per

    annum differenceBaseline

    US$ 5,046 less per

    annum

    US$ 11,205 less per

    annum

    Carbon Footprint(per TEWIcalculation)

    850.0 tonnes CO2equivalent per annum

    570.0 tonnes CO2equivalent per annum

    590. tonnes CO2equivalent per annum

    Description

    Conventional DX

    R404a System

    Cascade CO2 with

    High Side R134a

    Recip. Compressors

    Hybrid - LT DX CO2,

    MT DX R134a Screw

    Compressors

    Total Refrig. Costs(Cabinets, Rooms,

    Plant, Elect., Install)US$ 1,760,480 US$ 1,916,600 US$ 1,829,022

    Carbon Footprintdifference

    Baseline 32.9% better (less) 30.5% better (less)

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    Emissions Trading Scheme (ETS) In December of 2002 the New Zealand Government

    ratified the KYOTO PROTOCOL.

    In doing so the Government committed New Zealand to

    reduce the net average emissions of Green HouseGases (GHG) over 2008-2012 (first commitment period)to 1990 levels or take responsibility for the difference.

    As of September 2008 with a current Kyoto carbon price

    of Euro 12.50 per tonne converted to $NZ = 26.84 pertonne. New Zealands liability is $583 million.

    The ETS bill was passed by Parliament in September2008. The ETS is a cap and trade based system. The

    aggregate quantity of net emissions is set and then themarket determines the price of emission units. Thescheme is linked internationally and the price of unitswill track the international price.

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    The ETS and our Industry

    We will be affected in two ways, by our indirect anddirect emissions.

    Indirect emissions (electrical energy). The energy sector

    starts having obligations to surrender emission units on1 January 2010. The first due date they must surrenderunits by is 30 April 2011 for the period 1 January 2010to 31 December 2010. The government wont give

    electricity generators free emission units as they canpass on the costs of the scheme to their customers!

    It is expected that the ETS will add 2-4 cents per kwh to

    the price of electricity. This price increase will partlydepend on the international price of carbon.

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    Direct emissions (Refrigerant).Importers of Syntheticgases will have obligations to surrender emission unitsfrom 1 January 2013. Importers wont receive free

    allocation of emission units because the costs can bepassed onto customers.

    Those who re-export SGG for destruction or containedin manufactured equipment are eligible to receive free

    emission units.

    Voluntary reporting can occur from January 2011, withmandatory reporting of imports/exports from 1 January

    2012. Regulations will be developed and released for public

    consultation over 2009 and 2010.

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    Cost Implications

    Due to the fact the cost of Carbon will be market drivenit is difficult to predict the actual cost. Values of betweenNZ$20 and $50 have been mentioned.

    If we use the current NZ Treasury value of 12.50 euroand round that up to a whole NZ$ we get $27.00.

    Current list price per Kg of R404A is $21.19 plus $1.50per Kg levy. When we add the Carbon cost we get$27.00 x 3.26 (GWP) = $88.02 per Kg. So total cost perKg = $110.71. Or $1206.73 a disposable.

    Using our example in slide 8 we would incur an

    additional cost of $85,203.00 for the Refrigerant cost.

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    TEWI with carbon impactc:\my docs\Energy Analysis\TEWI Calcs_081107.xls

    TEWI ANALYSIS Effective : 7-Nov-08Supercedes: nil

    Project : Example Conventional

    System Lifetime = 20 (years)

    CO2 = 1.00 (CO2 equivalent)

    TEWI / GWP Details :- R404a = 3260.00 (CO2 equivalent)

    R134a = 1300.00 (CO2 equivalent)

    Electricity = 0.45 kgs CO2 / kwhr

    As Tendered

    Conventional

    R404a DX

    Units Power Consumption Components Details System

    Electricity consumption

    kwhrs per 24hrs ex Energy Analysis worksheet (kWhrs / day) 3300 99.0

    kwhrs per annum kWhrs/day x365 days/annum 365

    Total (kwhrs per annum) 1204500.0 36135.0

    Charge details

    kilograms R404a 968.0 85203.0

    kilograms R134a 0.0

    kilograms CO2 (R744) 0.0

    Customer specified % Leak Rate (% per annum) 10.0%

    Customer specified % Recovery at end of life (%) 75.0%

    Customer specified (years) System Life (years) 20.0

    kgs per annum Leakage R404a (kgs per annum) 96.8 8520.0

    kgs per annum Leakage R134a (kgs per annum) 0.0

    kgs per annum Leakage CO2 R744 (kgs per annum) 0.0

    TEWI (tonnes CO2 per annum)tonnes CO2 per annum Total Indirect per annum 542.03 tonnes of CO2 per annum

    tonnes CO2 per annum Total Direct per annum 315.57 tonnes of CO2 per annum

    tonnes CO2 per annum Total per annum 857.59 tonnes of CO2 per annum

    tonnes CO2 over System Life Tota l over System Speci fied Li fe time (20 years) 17940.78 tonnes of CO2 per annum

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    Future Considerations

    Currently there is no 1 single answer.

    When designing Plant we need to consider the total LifeCycle Cost (emissions,capital costs,operating costs and

    disposal costs). The type of plant and refrigerant utilized should be

    tailored to the application.

    Leakage rates can and should be reduced through bestpractices and regular maintenance.

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    CO2 Rack

    Thank You