ignacio gavilan ara cgf sustainability 2016 - refrigeration v1

CGF’s work on Refrigeration THE CONSUMER GOODS FORUM Sustainability Pillar

THE CONSUMER GOODS FORUM

– WORKING TOGETHER FOR EFFICIENCY AND POSITIVE CHANGE

A Focus on Implementation

Sustainability

Ethical & Sustainable

Supply Chains

Product Safety

(Global Food

Safety Initiative)

End-to-End Value Chain

Transparency,

Data & Consumer Trust

Health & Wellness

Healthier

Consumers Worldwide

Knowledge and Best Practice Sharing

Global Coverage: 400 Retailers & Manufacturers;

SUSTAINABLE VALUE CHAINS & BUSINESS PRACTICES GLOBALLY

The CGF Sustainability Pillar

Why Refrigeration?

• All cold is still produced by a 100-year-old technology that uses refrigerants – synthetic fluids, that absorb and release heat – plus large amounts of electricity for retailers and manufacturers

o The US uses as much electricity as the whole Africa uses for everything o Cooling systems already accounts for about 40% of power use in Mumbai, India, half of Saudi Arabia’s

peak summer power consumption, and 20% of total electricity use in Great Britain

• Refrigeration is a significant and growing source of greenhouse gases. Hydro fluorocarbons (HFC) are up to 4,000 times more potent than CO2 as a greenhouse gas.

o Velders research indicates HFC will add 56 - 90 % to carbon and then add indirect emissions - HVACR could

approach 100% incremental to carbon.

• Cold is the Cinderella of the energy debate. If we don’t change the way we do it, consequences will be dramatic

• An HFC phase down could prevent warming of up to 0.1 C by 2050 and 0,5 C by 2100 offering

one of the most cost effective climate mitigation strategies available in the world TODAY !!

Presenter

Presentation Notes

Furthermore, COP21 adopted the “Paris Agreement” in December of 2015, which is the new international legal framework of the post-2020 period of the (UNFCCC). The Paris agreement establishes a goal to hold “the increase in the global average temperature to well below 2°C and to pursue efforts to limit the temperature increase to 1.5°C”. the cumulative CFC, HCFC and HFC pollution now in the atmosphere was directly responsible for 17% of man-made global warming in 2005 F stands for fluorine, the chemical element shared by all of them. Their regulatory control is split between the Montreal Protocol (responsible for regulation of ozone depleting substances) and the Kyoto Protocol (responsible for regulation of greenhouse gases that cause climate change) Carbon dioxide is the biggest piece of the climate puzzle. If we get the job done and do everything possible to reduce our carbon dioxide emissions, by phasing out coal, reducing oil consumption, investing heavily in renewable energy and increased energy efficiency, but continue to increase HFC-134a emissions as we do now, they will make up over 12% (12.56%) of our global carbon footprint in 2050 Global Warming Potential or GWP—a calculation of how powerful a greenhouse gas is over a specific timescale compared to carbon dioxide, which has a GWP of one. The GWP of a refrigerant such as HFC-134a is 1300, which means that an emission of one kilogram would have the same impact over 100 years as an emission of 1300 kg of CO2. High-fructose corn syrup (HFCS) is a manmade sweetener that’s found in a wide range of processed foods, from ketchup and cereals to crackers and salad dressings. It also sweetens just about all of the (regular) soda Americans drink.

Overview of refrigerants

NH3 CO2 HC

H2O He Air

C3H8

Presenter

Presentation Notes

NH3, CO2 & HCs are innately more energy efficient and effectively no GWP. So important to stress the energy efficiency. The Montreal Protocol is a landmark international agreement designed to protect the stratospheric ozone layer. The treaty was originally signed in 1987 and substantially amended in 1990 and 1992. It stipulates that the production and consumption of compounds that deplete ozone in the stratosphere - chlorofluorocarbons (CFCs), halons, carbon tetrachloride, and methyl chloroform - are to be phased out by 2000. Nearly 97% of ozone-depleting chemicals have now been phased out as of 2010. The net effect has been the elimination of the equivalent of more than 200 billion metric tons of greenhouse gases, five years' worth of total global emissions, far more than has been accomplished by the Kyoto process. l [The Montreal Protocol is widely viewed as one of the most successful environmental treaties because it essentially eliminated the use of CFCs, blamed for damaging the ozone layer over Antarctica. Unlike the Kyoto Treaty, it has been signed by all countries.] Although HFCs do not deplete the stratospheric ozone layer, they have high-global warming potential (GWP) and therefore pose a significant threat to the climate system.

The CGF Refrigeration Resolution 2010 - 2015

Goal: To begin phasing-out HFC refrigerants in new installations as of 2015 and replace them with non-HFC refrigerants (natural refrigerant alternatives) Scope:

• Manufacturers: small scale plug-in refrigeration units • Retailers: refrigeration used in stores • Cold Stores • Industrial facilities

Approach: • To encourage the development of scale in the industry, collaborate with first movers • To actively shape public policy and the regulatory environment, fundamental issues like standards

and education / skilled trade and safety • To collect best practices from which we can all learn – e.g.: Refrigeration Booklet 2016

Refrigeration Progress and Milestones

Working Group co-Chairs: André Fourie (SABMiller) and John Skelton (Sainsburys, UK) Best practice sharing:

• 3 Refrigeration Summits – Chicago (2010), Atlanta (2011) and London (2013) • Refrigeration best practices document (2012) • Sustainability Activation toolkit - Refrigeration chapter • Webinar series in 2015 to reach out to members • Publication of the Refrigeration Booklet 2016

Developing scale in the industry: To help address the gap on natural refrigeration developments between Europe and North America, the CGF organised a refrigeration workshop, hosted by Ahold USA, in 2014 Working with policy-makers: In 2012, CGF companies secured SNAP (Significant New Alternatives Policy) approval from the US Environmental Protection Agency to use HC refrigerants in vending machines

http://www.theconsumergoodsforum.com/download-sustainability-activation-toolkit

CGF Member Natural Refrigerant snapshot - Europe

4000+ STORES

Source: Shecco, CGF

Presenter

Presentation Notes

Heineken's SmartDispense system that reduces a pub's average energy use for cooling installations by 90% - 350 Albert Heijn Ahold stores already running on hybrid CO2 systems and almost 50 stores using CO2 fully, it is clear that using CO2 as a refrigerant reaps both environmental and financial benefits. warming potential that is 450 to 9,000 times lower than gases in the HFC family over 20 years. • It is more energy-efficient and so less electricity is required (generating savings of between 10% and 20%). • Systems are more airtight and so less gas is released into the atmosphere. • Guarantees in terms of safety: it is nonflammable, non-corrosive, chemically inert, non-toxic and so non-hazardous for store personnel. - In 1995, ICA built the first store in Sweden with 100% natural refrigerants with ammonia and CO2. In 2010, it was verified that the technology had reached a level that matched the best available HFC-technology and since then ICA has adopted this technology as standard. - M&S trial to replace HFCs with nitrogen in 14 food delivery trailers and stores to be HFC free by 2030

CGF Member Natural Refrigerant snapshot – North and Central America

300+ STORES

Source: Shecco, CGF

Presenter

Presentation Notes

Less legislation Sobeys - Results from trials comparing a natural refrigerant system to a traditional HFC system. Comparing to a traditional HFC system, the use of a natural refrigerant system enables: Greenhouse Gas Emissions: -62% Installation Cost Reductions: Up to -15% Electrical Energy Usage: Up to -15% Heating Gas Savings: Up to 20% Campbell Soups: replaced HFCs with Ammonia in 3 of 9 factories with expectation to complete by 2018

CGF Member Natural Refrigerant snapshot – Asia

1000+ STORES

Source: Shecco, CGF

Presenter

Presentation Notes

In 2011 Tesco In China used natural refrigeration system, using CO2. Opened our second store with CO2 refrigeration in Beijing earlier this year. In 2009, Aeon became the first Japanese retailer to introduce natural refrigeration (CO2) freezers and refrigerators. As of the end of FY 2015 , we have introduced natural refrigeration (CO2) based equipment at 45 new stores faced many challenges along the way, including the lack of supplier choice, high costs, specific regulations on natural refrigerants and trying to overcome these issues by creating awareness with our stakeholders

CGF Member Natural Refrigerant snapshot – Others

20 STORES

100+ STORES

OCEANIA AFRICA

Source: Shecco

Presenter

Presentation Notes

Summit cape town

CGF Member Natural Refrigerant snapshot – Manufacturers

4M+ UNITS

Presenter

Presentation Notes

Manufacturers normally have small scale fridges Similar regional picture to retailers Shifting from HFC could be expensive but if you shift at scale cost come down – we need SCALE from players such as yourselves !!

Natural Refrigerant Challenges

1. “Natural refrigerants are not viable in hot countries”

Tesco - Bang Pra store, Thailand Hydrocarbon refrigeration system

Carrefour - Alzira store, Valencia, Spain Transcritical CO2 refrigeration system

Presenter

Presentation Notes

Solutions are there , need to be piloted


2. “Natural refrigerants are not viable in developing countries”

THAILAND

TURKEY SOUTH AFRICA

MEXICO


2. “Natural refrigerants are not viable in developing countries”

CENTRAL AND SOUTH AMERICA

28 000+ UNITS

EURASIA AND AFRICA

280 000+ UNITS


3. “Natural refrigerants are more costly than conventional systems ”

Carrefour SA Express, Kurtköy, Turkey - Although there is a higher investment cost, operational costs were found to be lower than HFC Refrigerant Costs - CO2 systems costs were 90% less expensive than traditional refrigerants (US$2.2/kg versus US$24.2/kg for R-404A).

Sobeys IGA, Cookshiren Canada - The initial capital costs of a transcritical CO2 system are more than traditional HCFC DX systems (approximately 11% increase in capital for refrigeration equipment), however operating costs and energy savings will offset the initial capital cost. The simple payback (…) with heat reclaim is less than three years.

Source: http://www.unep.org/ccac/portals/50162/docs/Low-GWP_Alternatives_in_Commercial_Refrigeration-Case_Studies-Final.pdf

Presenter

Presentation Notes

Running costs are lower which offset initial investment

Next Steps – beyond the 2010 CGF Board new Resolution

• Continue to actively monitor public policy and the regulatory environment (e.g. Montreal Protocol)

o EU Policy (F-Gas) played a key role accelerating HFC phase-down, creating stable market for replacements and triggering investment in natural refrigerant solutions

o UNEP’s Climate & Clean Air Coalition and the private sector efforts from Global Cold Food Chain Council and Global Refrigerant Management initiative

• Engagement with key stakeholders such as technology providers, trade associations, civil society, and more

• New commitment/resolution with a target (?)

Leaks management Commitment on responsible disposal, recycling and recovery of refrigerant at end of life Doors in refrigerators (energy and cost savings)

• Consider HVAC – critical relationship to refrigeration, cost and emissions.

How to get involved

• Start piloting solutions with natural refrigerants.

• Measure your existing footprint

• Share best practices on natural refrigerant pilots

• Contribute to current efforts in your area of operation (e.g.: ARA in Australia)

• Join our Refrigeration best practice webinars

• Meet us at the 2016 CGF Refrigeration Summit (TBD) or any of the HVAC events currently scheduled

Conclusions

An HFC phase down could prevent warming of up to 0.1 C by 2050 and 0,5 C by 2100 offering one of the most cost effective climate mitigation strategies available in the world TODAY !!

Presenter

Presentation Notes

Using the benefits of an activity while ignoring its impact on the environment is not an option today. As citizens, industrialists or politicians we need to understand the environmental challenges. Only then, we can make responsible decisions to ensure sustainable socio-economic development.

Presenter

Presentation Notes

Using the benefits of an activity while ignoring its impact on the environment is not an option today. As citizens, industrialists or politicians we need to understand the environmental challenges. Only then can we make responsible decisions to ensure sustainable socio-economic development.

CGF Sustainability Contacts

Ignacio Gavilan Director, Sustainability The Consumer Goods Forum [email protected] CGF Sustainability website: http://www.theconsumergoodsforum.com/sustainability-strategic-focus/

Thanks !!!

mailto:[email protected]

http://www.theconsumergoodsforum.com/sustainability-strategic-focus/





ignacio gavilan ara cgf sustainability 2016 - refrigeration v1

Presentations & Public Speaking