LIFE Project Number LIFE08 ENV/IT/000411 FINAL REPORT Reporting Date 30/06/2013 LIFE PROJECT NAME ENERG-ICE Data Project Project location ITALY Project start date: 01/01/2010 Project end date: 31/03/2013 Extension date: no Total Project duration (in months) 39 months Extension months: no Total budget € 2 870 107 EC contribution: € 1 372 554 (%) of total costs 50% (%) of eligible costs 50% Data Beneficiary Name Beneficiary Dow Italia S.r.l. Contact person Mr Francesco Carciotto Postal address Via Carpi n° 29, 42015 Correggio (RE) Italy Visit address Via Carpi n° 29, 42015 Correggio (RE) Italy Telephone +39-0522-6451 + direct n° +39-0522-645886 Fax: +39-0522-645823 + direct n° E-mail fcarciotto@dow.com Project Website www.dow.energice.com DOW CONFIDENTIAL - Do not share without permission 1. LIST OF CONTENTS 2. LIST KEY-WORDS AND ABBREVIATIONS 3. EXECUTIVE SUMMARY 4. INTRODUCTION 5. LIFE-PROJECT FRAMEWORK 5.1. Working method, project phases, activities/tasks by phase, planning 5.2. Beneficiary, partners and project organization 6. TECHNOLOGY: APPLIED TECHNIQUES AND METHODOLOGY 7. PROGRESSES, RESULTS AND ACTIVITIES BY ACTION 8. 9. 7.1. Action 1: Total Project Management by DOW-DOW DC 7.2. Action 2: Project Management by AFROS-CRIOS 7.3. Action 3: Project Monitoring 7.4. Action 4: Preparation of the Demonstration by DOW-DOW DC 7.5. Action 5: Preparation of the Demonstration by AFROS-CRIOS 7.6. Action 6: Construction of Pilot Plant (AFROS with CRIOS) 7.7. Action 7: Fine-tuning of Chemistry and Process 7.8. Action 8: Sample Testing and Validation of Results 7.9. Action 9: Industrial Validation 7.10. Action 10: Evaluation of Demonstration: Environmental Benefit and Market Impact 7.11. Action 11: Dissemination by FEDERCHIMICA, Layman’s Report 7.12. Action 12: After LIFE Communication Plan EVALUATION AND CONCLUSIONS 8.1. Project implementation 8.2. Analysis of long-term benefits FINANCIAL REPORT 9.1. Cost incurred, accounting system, partnership arrangements, audit reports 2 2. LIST OF KEY-WORDS AND ABBREVIATIONS Abbreviation Meaning ADD Average Density Distribution BA Blowing Agent BOE Barrel Oil Equivalent CP Cyclopentane 3d-CS Three Directional Compressive Strength CS Compressive Strength DD Density Distribution DIDC Dow Italia Divisione Commerciale DOW Dow Italia S.r.l. DS Dimensional Stability EC European Commission EE Energy Efficiency FC Federchimica GA Grant Agreement GHG Green House Gases GWP Green Warming Potential HCFCs Hydro-chloro-fluoro-carbons HCs Hydrocarbons HFCs Hydro-fluoro-carbons HSE Health Safety and Environment HW Hardware KF K-factor, also Lambda, also Thermal conductivity LAB Laboratory OEMs Original Equipment Manufacturers OPD Ozone Depletion Potential PA Partnership Agreement PU Polyurethane RC Responsible Care SA Secrecy Agreement SW Software TACEC Towards A Carbon Efficient Chemistry 300 DSD 300.02 Dev. Polyol 408 DSD 408.01 Dev. Polyol 3 453 DSD 453.01 Dev. Polyol 426 DSD 426.01 Dev. Polyol 459 DSD 459.01 Dev. Polyol 468 DSD 468.01 Dev. Polyol 502 XSD 502 Exp. Polyol 503 XSD 503 Exp. Polyol 503,02 XSD 503.02 Exp. Polyol 504 XSD 504 Exp. Polyol 504,02 XSD 504.02 Exp. Polyol 505 XSD 505 Exp. Polyol 4 3. EXECUTIVE SUMMARY Project objectives Polyurethanes are one of the most versatile plastic materials. The nature of the chemistry allows polyurethanes to be adapted to solve challenging problems, to be molded into unusual shapes and to enhance industrial and consumer products by adding comfort, warmth and convenience to our lives. Rigid polyurethane foam is the most commonly used material to insulate household appliances due to its excellent thermal insulation behavior and process-ability allowing an easy filling of refrigerator’s insulating cavity of any geometry. Currently, rigid polyurethane foam insulation with an average thermal conductivity (also named lambda or k-factor) of 0.0195-0.021 W/m·K @ 10°C is used. Energy efficiency improvement is an important driving force of the global household appliance industry. In recent years, there has been an increasing need to improve energy efficiency of cold appliances (refrigerators and freezers) in order to meet environmental regulations which are becoming more and more stringent around the world. The Directive 2012/27/UE on energy efficiency establishes a common framework of measures for the promotion of energy efficiency within the European Economic Area (EEA) in order to ensure the achievement of the Union’s 2020 20% headline target on energy efficiency and to pave the way for further energy efficiency improvements beyond that date. The household sector is one of the largest users of electrical energy in the European Union, consuming 29% of total electrical energy. Cold appliances such as refrigerators and freezers account for up to 25% of household energy consumption. The ENERG-ICE project objective was to showcase a breakthrough polyurethane technology for manufacturing cold appliances using allowing up to 10% of energy savings compared to the best in class appliances available today (A/A+/A++ labelling). Project key deliverables To achieve the challenging objective of the project, the following key deliverables and milestones were set: • • • • The energy efficiency improvement is measured by Reverse Heat Leakage (RHL) test, a well-known and accepted methodology developed by the appliance manufacturers to estimate the polyurethane foam insulation contribution to the final refrigerator’s energy consumption. A detailed RHL test description is made. A Life Cycle Assessment (LCA) aimed at comparing the environmental impact of designing cold appliances with the new ENERG-ICE technology and with conventional methods was done to quantify the Environmental Impact of the project. These results demonstrate the reduced energy consumption and carbon footprint of ENERG-ICE. A market evaluation study has been done to gauge the economical feasibility of up-scaling and introducing the ENERG-ICE appliance insulation technology to the European and worldwide market. A wide dissemination activity was done throughout the entire project life to properly communicate the project objectives while updating the outcomes and results achieved not only to the cold appliance manufacturers but also to the largest insulation industry community. 5 • Last but not least the construction of the ENERG-ICE pilot line made in AfrosCannon was instrumental for the demonstration of the ENERG-ICE technology outcomes and the scaling up feasibility for the refrigeration industry. Project outputs The project can be considered concluded with success. Main results achieved: • • The refrigerator’s energy efficiency measured by RHL has been significantly improved matching project objectives: o 8% RHL improvement was measured on refrigerators filled with ENERGICE polyurethane foam employing the Cyclo-pentane blowing agent having GWP = 11. o 11% RHL improvement was measured on refrigerators filled with ENERG-ICE polyurethane foam employing the low GWP blowing agent known as Hydro-Fluoro-Olefin (HFO) having GWP=8.9. LCA on a cradle-to-gate perspective demonstrated that the new ENERG-ICE technology offers a small but plausible advantage in all impacts considered, primarily due to the less mass required to get the same performance. o The ENERG-ICE technology allows for a measured 10% less electricity use which translates to about 10% reduction in all potential cradle-tograve impacts. o This work was done in accordance with ISO standards for a project not making a comparative assertion and has received a critical peer review and external certification by Dr. Martin Baitz of PE INTERNATIONAL AG. The project has an impact on the Cold Appliance industry at global level; its replication potential for other insulation industry segments was demonstrated too. These results achieved during the 39 months of project’s life will be documented in details in the next chapters of the Final Report. 4. INTRODUCTION Background Polyurethane (PU) is an important component in household appliances that consumers use every day, such as refrigerators and freezers. Rigid PU foam was introduced to the refrigeration industry in the 70’s. Because of its ideal processing and property characteristics it’s now the insulation and construction polymeric material of choice for domestic refrigerators and freezers. The most common use for PU in major appliances is low density close cell rigid foams for the insulation of refrigerators and freezers, as well as for the cold chain products or in the field of refrigerated transportation. Rigid PU foam is an essential and cost effective material that can be used for meeting required energy ratings in consumer refrigerators and freezers. The good thermal insulating properties of the PU foams result from a combination of a fine, closed-cell foam structure and cell gases with low thermal conductivities and therefore that resist heat transfer. Another important advantage of PU is the ability, during the production phase, to be injected as 6 reacting mixture in the cavity between the internal and external walls of the appliance while filling it completely; this ability is unmatched by any other insulating material. Problem statement Energy efficiency improvement is an important driving force of the global household appliance industry. In recent years there has been an increasing need to improve energy efficiency of cold appliances in order to meet environmental regulations which are becoming more and more stringent around the world. Continued technical improvements in the efficiency of refrigerators and freezers have been offset by increased use. The Directive 2012/27/UE on energy efficiency establishes a common framework of measures for the promotion of energy efficiency within the European Economic Area (EEA) in order to ensure the achievement of the Union’s 2020 20% headline target on energy efficiency and to pave the way for further energy efficiency improvements beyond that date. The Energy label helps drive product innovation and competition, provide consumers with the effective information when purchasing appliances, and it contributes to the European energy saving targets (20% energy saving by 2020). A snapshot of today’s legislation requirement in Europe in shown in the attached figure: As shown in the figure above, today’s appliance sold in the market can be only A+ or better energy class, however, from July 2014 only A++ energy class appliance will be allowed. This is an extremely challenging target for the industry and must be combined with increased product sustainability. The objective of this project is to demonstrate that there is a technical solution provided newly developed polyurethane foams with very low thermal conductivity are employed combined with an innovative foaming technique consisting on applying a controlled level of vacuum to the refrigerator’s cavity during the PU reaction and filling processes. In the case, it’s possible to fill properly the refrigerators insulating cavity using very fast reactive PU formulations, having the characteristics to generate fine cell PU foam with enhanced, lower, thermal conductivity. This will improve the foam insulation behaviors and, as a consequence, the refrigerator’s energy efficiency. 7 Expected results The ENERG-ICE project main target is to demonstrate that the very fast reactive foam developed for the use with vacuum assisted foaming injection is able to satisfy the project objective, showcasing a breakthrough polyurethane technology for manufacturing cold appliances allowing up to 10% of energy savings compared to the best in class appliances available in the market. All the other foam properties and process, as well as the refrigerator’s quality and process characteristics must remain the same or improved compared to current manufacturing process. The effects of PU foam properties and process parameters on the refrigerators energy efficiency were explored during the course of the project; the refrigerators produced in the ENERG-ICE pilot plant were tested in terms of energy efficiency measured by means of Reverse Heat Leakage (RHL) at an external independent Laboratory approved by CECED (the European association of appliances producers) and certified for appliances energy consumption measurements to demonstrate the feasibility of the ENERG-ICE technology for the household industry. Another important target of the project was to demonstrate that the benefits in terms of energy efficiency were obtained while improving the environmental footprint of the refrigerators manufacturing process. The “true” environmental benefits of the ENERGICE technology were demonstrated through a Life Cycle Assessment methodology validated and certified by an external auditor. Five major global appliance producers have tested the ENERG-ICE technology that inspired quite some interest in the global market place. 5. LIFE PROJECT FRAMEWORK 5.1. Working method The ENERG-ICE project activities have been organized and executed according to the following Gantt chart, providing a clear overview of the activities by phases with relative partner ownership: ENERG-ICE (start date 1st January 2010) 2010 2012 2011 2013 I II III IV I II III IV I II III IV I Action Resp Start Finish Month PROJECT MANAGEMENT AND MONITORING J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M 1 Total Project Management by DOW DOW M1 M39 39 N° 2 Project Management by Afros Afros M1 M39 39 3 Project Monitoring DOW M1 M39 39 PREPARATORY ACTIONS 4 Preparation of the Demonstration by DOW DOW M1 M12 12 5 Preparation of the Demonstration by Afros Afros M1 M9 9 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M IMPLEMENTATION PHASES PHASE 1 – PILOT DEMONSTRATION AND FINETUNING 6 Construction of Pilot Plant Crios M1 M15 Fine-tuning of Chemistry and Process 7 (w ith AFROS) 8 Sample Testing and Validation of Results (w ith DOW) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M 15 DOW M3 M39 37 Afros M5 M39 35 PHASE 2 – INDUSTRIAL VALIDATION AND DEMONSTRATION 9 Industrial Validation (w ith DOW) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M Afros M7 M39 33 DOW M7 M13 M39 M38 33 15 DISSEMINATION 11 Dissemination by FEDERCHIMICA Feder M1 M39 39 12 After LIFE Communication Plan DIDC M37 M39 3 10 Evaluation of Demonstration (w ith AFROS) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M 8 Actions Actions Actions Actions by DOW-DIDC by Afros-Crios by Federchimica completed The attached Gantt chart shows the status of the various phases at the project end date of March 31st, 2013. The project is terminated in all its actions, all phases have been successfully completed, the After-life dissemination program has been prepared and will be detailed in section 9 of this report. The time dedicated to the various project activities and tasks by action was monitored by collecting the time sheets for each partner. In the case, the time sheets were added by a row to assign the hours worked on the project to the specific action; this has facilitated a lot the project management and monitoring, making sure the project manager and the steering team were punctually informed of the project progresses and could intervene in case of need. Particularly, the time sheets of Dow and DIDC personnel were collected each month, both electronic and paper copies; the paper copies have been signed within the month next to that considered. For the partners, we agreed to copllect the timesheets each 3 months, both electronic and paper copies. 5.2 Beneficiary, partners and project organization Dow Italia s.r.l. Dow Italia s.r.l., a subsidiary of The Dow Chemical Company, is a diversified chemical company, offering a large range of chemical products and services in Italy and in the European market. Dow operates in Italy since 1960 with six production facilities, about 740 employees, and an annual turnover of €977 million in 2012. More information about Dow in Italy can be found at www.dow.com/italy. Dow believes that connecting chemistry and innovation can generate new ways to solve challenges and exceed customer expectations. The Company believes that taking the extra step to be socially responsible does not hold us back, but instead sets us apart. Dow believes in the worth of our people, in the value of each individual employee and their differing experiences, backgrounds and perspectives. Dow believes in the power of difference, striving to build a culture that embraces innovation, responsibility and diversity. Dow Italia s.r.l. R&D centre of Correggio is the global centre of excellence for the polyurethane foams development, leading innovation in PU insulation foams. Dow combines the power of science and technology to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world’s most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow’s diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2012, Dow had annual sales of approximately $57 billion and employed approximately 54,000 people worldwide. The Company’s more than 5,000 products are manufactured at 188 sites in 36 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com. 9 . Dow Italia Divisione Commerciale s.r.l. Dow Italia Divisione Commerciale s.r.l. is a legal entity of the Dow group which has been established in 2001 with the aim to take care of the distribution, marketing and sales of the products owned by Dow Europe GmbH. The main purpose of DIDC is to better focus efforts and increase sales on the Italian markets and industries, with their specific characteristics, and in order to be more effective, and closer to the customers. Its main offices are located in Milano and Correggio. Dow Italia Divisione Commerciale Srl lists approximately 75 employees in 2013. Afros S.p.A. AFROS is part of (owned 92%) the CANNON Group, an international, independent supplier of dedicated engineering solutions for a range of industries world-wide. The Group's main fields of activity are plastics processing technologies (for polyurethane, thermoplastics, composites and thermoforming), equipment for energy production and water treatment, aluminum die-casting machines and electronic control systems for industrial processes. With more than 1,000 people employed in 12 Manufacturing facilities and over 40 local branches, the CANNON Group supports over 25.000 industrial customers world-wide. Since 1964 AFROS has gained a worldwide experience in the engineering and design of dosing, mixing and foaming machines and systems for polyurethanes, installing over 25.000 foam injection points in the World. AFROS metering machines are specifically designed for the Polyurethane industry and can be tailored in various production configurations. AFROS, through its R&D team and facility, carries out an intense research program for the continuous improvement of its products and technologies, resulting in the development of more than 200 international patents for the PU industry. Crios S.p.A. CRIOS - a member (owned 92 %) of the CANNON Group - is recognized since 30 years as a world-wide leader in the supply of foaming plants for domestic and commercial refrigerators. CRIOS designs, engineers and manufactures complete, dedicated solutions for providing the customer with proven turn-key solutions for all levels of investment. Several innovative, patented foam-filling solutions have changed the way refrigerators are produced, among which are worth being mentioned the Zero-Time Plug-Change ROTOPLUG system for cabinets and the Rotary Drum System for doors. In June 2012 CRIOS changed name to Cannon Ergos S.p.A., the CANNON Group unit devoted to the development of turn-key plants for the plastics and foam industries. Federchimica Federchimica is the abbreviated name of the Italian Federation of the Chemical Industry. Founded as the Italian Federation of Chemical Industry Associations in 1920, it became Aschimici in 1945 and was transformed into Federchimica in 1984. At present, 1,400 companies, with a total of 90,000 employees, are part of Federchimica. They are grouped into 17 Associations, articulated into 40 Product groups. Federchimica is a member of Confindustria (General Confederation of the Italian Industry) and CEFIC (European Chemical Industry Council). 10 Federchimica, whose primary objectives are the coordination and the protection of the role of the Italian chemical industry as well as the promotion of its development capacity, has the following main duties: • • • • • to elaborate guidelines in economic, industrial and trade union topics and also in the areas of environment, innovation and energy policies; to promote these policies with Public Authorities, national economic organizations, other entrepreneurial organizations, international organizations to whom the Federation belongs, trade union leaders, environmental and consumer organizations; to contribute to the establishment of an accurate image of the chemical industry in the public opinion; to carry out studies and projects which inspire and legitimates entrepreneurial choice; to contribute to the constant promotion of the level of quality of the Member companies, with a particular attention to the organization of initiatives in the field of innovation. The actions related to the project management and monitoring have been realized as planned. A steering committee led by Dr. Vanni Parenti/DOW as project leader with the coordination of Eng. Maurizio Corti/Afros and Dr. E. Brena/Federchimica has been coordinating all project activities: DISSEMINATION BOARD MANAGEMENT BOARD CANNON-AFROS PRJ COORDINATOR Eng. Maurizio Corti AFROS team: FEDERCHIMICA PRJ COORDIANTOR Dr. Enrico Brena DOW ITALIA PRJ LEADER Dr. Vanni Parenti CRIOS team: TECH. REPORTING Dr. Giuseppe Gatti Prj MANAGER Fabrizio Pobbiati COMMUNICATION Massimo Taverna DESIGN LEADER Fabrizio Pobbiati LAB TRIAL COORD. Fabrizio Marzanatti COMMERCIAL Eng. Davide Lucca DOW – DOW DC team: DOW Italia - TECHNICAL TEAM Appliance PU Application Technology Development DOW Italia TECHNICAL PM Dr. Rossella Riccio DOW Italia PROJECT SUPERVISOR Dr. Renato Paludetto DOW Italia ADMIN. COORDINATOR Eng. Francesco Carciotto DOW Italia DC Product Flow / Commercial Eng. Francesco Carciotto Partnership agreement The Partnership Agreement of the project has been prepared by Dow, compatible with the Grant Agreement signed with the Commission. The Partnership Agreement of ENERG-ICE makes reference to the Common Provisions and includes the contents described in the guidelines available in the LIFE+ programme website. The Partnership Agreement includes the five partners of the project: Dow Italia, Dow Italia Divisione Commerciale, Afros S.p.A., CRIOS S.p.A. and Federchimica. The 11 document is aligned to the amendment of the Grant Agreement concerning the new partner and the technical activity. The final version of the document has been signed by the parties on September 2010. The key contents of the, and includes: - The role and obligations of each party of the Partnership Agreement - The specification to avoid and/or solve any conflict of interest - The channels of communication among partners and the ways to submit documents/information to carry out the project activities and to report to the European Commission - The payment terms and modalities among the parties The original signed version (including signatures dates) of the Partnership Agreement was delivered with the Inception report on September 17th, 2010. 12 6. TECHNOLOGY: APPLIED TECHNIQUES AND METHODOLOGY The steering committee has been managing all project activities making sure the deliverables and milestones were completed within the action’s deadlines. Partnership and positive attitude among partners has been the key to efficiently drive the project to a positive conclusion, mitigating and resolving any issue, addressing the scaling up from laboratory evidence to pilot plant demonstration of the technology. From a methodology point of view, since the starting date of the project (January 2010), all the activities have been coordinated according to the Gantt chart and, as expected, few of those were overlapping one to another; these can be summarized in four main clusters: • Project management The process implemented by the steering committee was very simple: the project leader has the responsibility to lead the project plan, managing the work priorities and resources, promptly communicating with the steering team for project progresses and issues (if any), keeping the beneficiaries informed on the status of the activities, stimulating the interactions among partners to get the tasks done in due time. The project leader has regularly communicated in person with the steering team members allowing smooth project evolution. • Preparatory actions The preparatory actions by Dow and Afros included several activities overlapping one to another. On Dow side the main responsibility was on the PU chemical development; on Afros side the main responsibility was on the engineering and final design of the pilot plant to demonstrate the ENERG-ICE technology feasibility for cold appliances. Both Dow and Afros had the responsibility to investigate the market penetration and replication potential worldwide, with specific focus on Europe, Turkey, China, North and South America. This was accomplished presenting the ENERG-ICE technology to several major appliance producers. Generally, all the visited OEMs were extremely interested in the project scope, recognizing the need for the industry to improve the refrigerators energy efficiency of a quantum step, so there was a consensus on the improvement magnitude of 10% being significant. Among others, the appliance producers exposed to the ENERG-ICE technology were the following: Region North America Latin America Europe Asia-Pacific Appliance producer Whirlpool Corporation General Electric MABE Esmaltec Electrolux Home Products Bosch-Siemens Arcelik Mitsubishi Electrical Co. Panasonic Samsung Hisense 13 Location Benton Harbor/Michigan Decatur/Alabama Celaya/Mexico Fortaleza/Brazil Susegana/Italy Giengen/Germany Eskisehir/Turkey Japan Shiga/Japan Suwon/South Korea Hefei/China However, during the 39 months of project life only 5 major producers have accepted to participate to the ENERG-ICE demonstrations at the Afros-Cannon pilot plant sending a series of empty cabinets and doors to be foamed. Three parties Secrecy Agreement (SA) among DOW, Afros/Crios and the OEMs, is an essential part for the project success. In fact, to demonstrate the ENERG-ICE technology, the OEMs need to send their empty refrigerators and parts of the original mold (the mold core) to the new Afros pilot line to inject the pieces under the vacuum assisted process. Moreover, the OEMs need to share with Afros the drawings of both the refrigerator’s model and the mold parts, so confidentiality of these activities must be guaranteed to avoid leak of information to other parties or competitors. For the same reasons, the refrigerator producers did ask to remain anonymous, to avoid giving references of their refrigerator models performance, so we’ll called them Customer A, B, C, D and E. Some of them repeated the ENERG-ICE demonstration twice, like B and C, in order to test different chemistry evolution, Customer E run the test 3 times. ENERG-ICE test details will be explained in section 7.9 of this report. Some other OEMs requested to remain updated on the project advancement but didn’t agree to sign a three party SA to become a stakeholder of the ENERG-ICE activities. . • Implementation The core activities of the implementation phases were two: 1. the construction of the ENERG-IGE pilot plant, completed at the end of November 2010 2. the practical execution of the ENERG-ICE technology demonstrations foaming real refrigerators In parallel, fine tuning of the PU formulation chemistry and process did continue for the whole project life, improving and optimizing the foam performance to the new foaming process under vacuum test after test. This was the most relevant, challenging but also technically exciting activity of the project. The evaluation of demonstrations is summarized in section 7.9 of this report. • Dissemination This specific activity coordinated by Federchimica has been promoted at different levels: • • • • • The project web site has been created by Dow as coordinating beneficiary according to the LIFE+ rules and it’s maintained updated: www.dow.energice.com Poster and brochures, created by Federchimica, have been exposed and delivered to any event at which ENERG-ICE was promoted Generally, Dow and Afros promoted the ENERG-ICE technology within the domestic refrigeration channel as well as in the global insulation market Federchimica promoted the ENERG-ICE technology within the chemical industry to create awareness of technology innovation and give visibility to the project creating a specific section on its web site (www.federchimica.it) as well as providing updates on Federchimica newsletters Federchimica also promoted ENERG-ICE within the official program of several workshops on Responsible Care and T.A.C.E.C. (Towards A Carbon Efficient Chemistry), and did organize both the mid-term and the final project conferences. The dissemination activities including the list of events in which the project was presented and the activities against deliverables will be explained in section 7.11 of this report. 14 7. PROGRESSES, RESULTS AND ACTIVITIES BY ACTION 7.1. Action 1: Total Project Management by DOW-DOW DC Start date: 1st January 2010/End date: 31st March 2013/ Status: Completed The Action 1 progresses are indicated in the following Gantt chart extract: ENERG-ICE (start date 1st January 2010) 2010 2011 2012 2013 I II III IV I II III IV I II III IV I Action Resp Start Finish Month PROJECT MANAGEMENT AND MONITORING J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M 1 Total Project Management by DOW DOW M1 M39 39 N° As described in the chapter 6 of this report, the Dow project leader led the total project plan, managing the work priorities and resources, working with the steering team to keep informed the beneficiaries on the status and progresses of all project activities. A1 Deliverables Description 1 Activity Reports Standard EC Reporting deliverables 2 Audit 3 Dissemination by DOW Audit of financial statements Publication of articles (n° 8) and papers (n° 4) on specialized magazines jointly with AFROS. Preparation and printing of dissemination materials targeting industrial stakeholders, wider public and policy makers (jointly with AFROS). Tasks completed and tangible results: A1 Deliverables 1 Activity Reports 2 Audit 3 Dissemination by DOW Results Standard EC Reports delivered: • Inception Report on 17 July 2010 • Mid Term report on 18 November 2011 Audit/Monitoring visits from Timesis/Astrale: • 11 May 2010 • 7 April 2011 • 3 April 2012 • 22 October 2012 (with Desk Officer A. de Villepin) • 9 May 2013 Audit EU Corte dei Conti: • 14, 15, 16 January 2013 Detailed list of publications and papers attached 15 7.1.1. Deliverable A1-3: Publications of articles and papers on specialized magazines Attached the list of technical articles published in specialized magazines. All articles are added to the final report. More dissemination material from Dow and Afros will be delivered within the After-life Communication Plan (as described in chapter 9). Magazine Articles Date Industria Meccanica Congelare a bassa energia 3 April 2012 Ambiente Hi-Tech IL Sole 24 ore 1 Maggio 2011 26 September 2011 La Chimica e l’industria Federchimica magazine Dow Italia e i suoi progetti LIFE Chimica: quale ruolo nella sostenibilità Dow Italia Celebrates the International Year of Chemistry with the Energ-Ice Project at CHEM-MED International Verso una chimica ad alta efficenza energetica Energ-Ice per congelatori a basso consumo Greenweek magazine Dow showcases Sustainable Solutions, Policy Perspectives at EU GreenWeek PLAST 1 January 2012 5 Maggio 2011 Newsletter Marzo 2012 Newsletter Greenweek June 2011 (attached ) It is of particular importance the project dissemination which took place at the European Community GreenWeek of May 2011 where the ENERG-ICE project leader, Vanni Parenti, had the chance to explain the project objectives and results achieved to the EU Environment Commissioner J. Potocnik. Record of the event published on the Dow web site attached below: Dow Showcases Sustainable Solutions, Policy Perspectives at EU GreenWeek 2011/07/06 The EU Commission recently held its annual environmental policy event, Greenweek, where businesses and global policymakers addressed the theme of “Resource Efficiency – Using Less, Living Better.” Dow leaders including Martina Bianchini, Dow director of EU Government Affairs and Public Policy, and Vanni Parenti, Polyurethane (PU) Systems Global Appliance technology leader, participated in the event, showcasing Dow's innovative sustainable solutions and policy views on enabling a green economy. Speaking in her role as chair of the International Chamber of Commerce (ICC) Green Economy Task Force, a leading business and industry group working to represent commerce at the Rio+20 Earth Summit on Sustainable Development in June 2012, Bianchini explained the business community's definition of a green economy and discussed the need for the report to incorporate better indicators. European Commissioner for the Environment Janez Potocnik visits the Dow Greenweek exhibit. From right to left: Lee Mertens (Dow), Vanni Parenti (Dow), European Commissioner Potocnik, Christina von Westernhagen (Dow) and Marta Varela (Dow). “For businesses, the ‘green economy' is one in which economic growth and environmental responsibility work together while supporting progress on social development,” said Bianchini. “Business and industry have a crucial role to play in delivering the economically viable products, processes, technologies, services, and solutions required for the transition to a green economy.” The session also included presentations on the best approaches to achieve a green economy from such policymakers as United Nation Under-Secretary and Executive Director of UNEP 16 Achim Steiner and European Commissioner of Environment Janez Potocnik. Both Stiner and Commissioner Potocnik paid a visit to Dow's Greenweek exhibition, which displayed a variety of Dow's sustainable business solutions including DowAgrosciences Spinosad insecticide and DowRS Technik pipeline rehabilitation technology. Also on display were two Dow business projects co-financed through the European Union funding programme Life +. Dow's “Green Footprint” project demonstrates the production and introduction of new, high quality bio-based polyols to the market and the "Energ-Ice" project, as PU leader Vanni Parenti explained to Commissioner Potocnik, showcases Dow's breakthrough polyurethane foaming technology for the insulation of cold appliances. The Dow Greenweek exhibit also highlighted its leadership with the International Year of Chemistry and its landmark partnership with the Nature Conservancy. In a side event, Dow officials joined European Parliament member Judith Merkies in a session on “social leasing” to discuss Dow's innovative business approach to chemical leasing by providing complete customized services to customers while reducing the environmental and health risk impacts and improving resource efficiency. As far as the preparation and printing of dissemination materials is concerned, technical presentations with project objectives and progresses were shown to several industrial stakeholders, project brochures were disseminated to wide public audience during the presentations in the workshops and congresses where the project was presented. Examples of ENERG-ICE presentations to industrial stakeholders are attached: Haceb Colombia, Latin America Hitachi Japan, Asia MABE Mexico, Central America Mitsubishi Electrical Company Japan, Asia Panasonic Japan, Asia Whirlpool USA, North America Other key activities of action 1: Project on the Web site established: www.dowenergice.com Nomination of an Independent Auditor in charge verifying the financial statements as requested by the EC; the Independent Auditor Selected is: Warrant Group S.r.l - Corso Mazzini,11 - 42015 Correggio (RE) Italia - Tel. 0522 7337 Fax. 0522 692586 – www.warrantgroup.it • • 7.2. Action 2: Project Management by AFROS-CRIOS Start date: 1st January 2010/End date: 31st March 2013/ Status: Completed The Action 1 progresses are indicated in the following Gantt chart extract: ENERG-ICE (start date 1st January 2010) 2010 2011 2012 2013 I II III IV I II III IV I II III IV I Action Resp Start Finish Month PROJECT MANAGEMENT AND MONITORING J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M 2 Project Management by Afros Afros M1 M39 39 N° As reported in the previous chapter related to Action 1, the AFROS-CRIOS dissemination activities in coordination with the other partners were mainly focused on 17 the project presentations to potential new customers as well as to External Conferences to promote the ENERG-ICE project to the Industry, and has been carried out in cooperation with DOW. A2 1 Deliverables Description Dissemination by AFROS Publication of articles (n° 8) and papers (n° 4) on specialized magazines jointly with DOW. Preparation and printing of dissemination materials targeting industrial stakeholders, wider public and policy makers (jointly with DOW). Tasks completed and tangible results: A2 1 Deliverables Results Dissemination by AFROS Detailed list of publications and papers attached in the previous section as they were coordinated with DOW. Other key activities of action 2: Project information on both Cannon established: www.thecannongroup.com; www.cannon.com 7.3. Web sites Action 3: Project Monitoring Start date: 1st January 2010/End date: 31st March 2013/ Status: Completed The Action 1 progresses are indicated in the following Gantt chart extract: ENERG-ICE (start date 1st January 2010) 2010 2011 2012 2013 I II III IV I II III IV I II III IV I Action Resp Start Finish Month PROJECT MANAGEMENT AND MONITORING J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M 3 Project Monitoring DOW M1 M39 39 N° Deliverables of Action 3 are the results of the monitoring team analysis of the project progresses for the whole project duration, making sure the deadlines and milestones were respected. A3 1 Deliverables Description Interim Monitoring Reports Monitoring report every 6 months As described in the Mid-Term report delivered on November 2011, the management board decided to issue one Monitoring Report each year for a total of three deliverables, since the project phases are link one to another with different emphasis, meaning that there are three phases taking much longer time than the others but are of fundamental importance for the project execution; these are: 18 • • • The construction of the pilot plant (Action 6): this is the main action of the implementation phases, instrumental to invite the refrigerators producers for the demonstration of the ENERG-ICE technology feasibility The industrial validations (Action 9): this is also very important and needs a lot of coordination to make sure the maximum numbers of producers are invited to complete the validations on real refrigerators in time with respect to the project deadline The evaluation of demonstrations (Action 10): this is also taking quite some time depending on the test protocol each producer invited is following, including meetings and discussions of the results achieved The project steering team met several times, mainly at AFROS but also often on phone conferences, making sure the preparatory actions were completed in time to get started with the key actions 6, 9 and 10, those of key importance for the project execution but taking the biggest amount of time. During those meetings the Project Manager had the responsibility to: • • • • • • • • • Define who had to attend Set meeting time, agenda, and length Facilitate the meeting Review project charter, objectives, deliverables, and research plan Review progress against research plan Identify critical issues for continuing the project Propose contingency plan if needed Develop a list of appropriate action items Communicate updated objectives, deliverables, critical issues, project plans, and resource needs to key stakeholders The project monitoring interim reports were made in due time according to the external monitoring visits so that these deliverables could be shown and discussed. A3 1 Deliverables Results Interim Monitoring Reports 3 Monitoring reports (attached) Monitoring report 2010 Monitoring report 2011 Monitoring report 2012 7.4. Action 4: Preparation of the Demonstration by DOW-DOW DC Start date: 1st January 2010/End date: 31st December 2010/ Status: Completed 19 The Action 4 progresses are indicated in the following Gantt chart extract: ENERG-ICE (start date 1st January 2010) PREPARATORY ACTIONS 4 Preparation of the Demonstration by DOW DOW 2011 2010 2012 2013 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M M1 M12 12 This action is related to the preparation activities performed at Dow Correggio R&D laboratory for the development of specific polyurethane chemistry suitable to work with ENERG-ICE technology; it’s performed in view of the preparation of the demonstration by Afros (Action 5) and the construction of the pilot plant construction (Action 6). All activities planned for this part of the project were positively completed by the end of 2010. List of deliverables of Action 4: A4 Deliverables 1 Process and Instrument Diagram (P&ID) with Preparatory study of the chemical definition of checklist/threshold values for test process parameters Dissemination document for the marketing Preliminary report on laboratory tests information Campaign Preliminary market information Plan preliminary market information campaign to 8-10 industrial stakeholders campaign 2 3 Description The results achieved in this project phase are reported in the following table against deliverables (additional details are reported in the sub-chapters): A4 1 Deliverables Results Preparatory study of the chemical process 2 Preliminary report on laboratory tests 3 Preliminary campaign market Checklist/Table below in section 7.4.1 information 7.4.1. Deliverable Action 4-2: Preliminary report on Laboratory test One of the key activities in shaping the experiments for the development of the ENERGICE PU formulations is the definition of the threshold values for test parameters. In the table below the definition of targets, measurement parameters and procedure for testing are listed: Test Scope Target 20 Method Compressive Verify the initial and estimated Same or better vs. strengths aged dimensional stability current technology performance of ENERG-ICE foams ISO 844 Creep Verify the long term stability performance of the ENERGICE foams Same or better vs. current technology Dow internal method Density Verify the actual foam density and density distribution Same or better vs. current technology EN 12667 Lambda Verify the insulation performance of the ENERGICE foams Improved vs. current technology (ref. to foam blown with cyclopentane) EN 12667 Open Cell Indirect measurement of the insulation behaviour of the foam Same or better vs. current technology ASTM D 6226 RHL Verify the PU insulation performance of the cabinets produced Up to 10% improved vs. current technology (ref. to foam blown with cyclopentane) AE Lab protocol (section 7.4.4.1). Additional ad-hoc performed tests are reported into the Dow Correggio PU Appliance Lab evaluation procedure as described in the attached file: Other key activities and tasks of action 4: Reverse Heat Leakage Test The refrigerators energy efficiency improvement due to the PU insulation material can be measured with a specific test, called Reverse Heat Leakage (RHL), well known and used by the refrigeration industry globally. The RHL test is an experimental method to determine the polyurethane thermal insulation efficiency in a refrigerator (cabinet + door) assembled without the compressor. RHL measures the contribution of the PU foam insulation efficiency to the overall energy performance of the cold appliance; the methodology to measure RHL is reported in the following report: The energy efficiency improvement is the key target of the ENERG-ICE project, so a key task is the selection of an equipped and qualified laboratory for performing the Reverse Heat Leakage (RHL) tests of cold appliances. Among the European Laboratories certified for Energy Consumption measurements of appliance machines according to EN 153 norm, two were audited to run the RHL test according to producer’s methodology: • Karlsruhe University, Karlsruhe/Germany 21 • Appliance Engineering Lab, Gavirate/Italy The second laboratory was chosen, so all the RHL tests were performed in the Appliance Engineering Laboratory of Gavirate/Italy, that is recognized by CECED (the European Appliance Manufacturers Association) for EN 153 measurements; its web site is: http://www.ae-online.it RHL Procedure measurement The Reverse Heat Leakage test is an experimental method to determine the polyurethane thermal insulation efficiency in a refrigerator (cabinet) assembled with its doors but without compressor. The refrigerator is placed in a testing room set at the following climate conditions: temperature of +5°C ± 0.5°C and humidity lower than 60%. The cabinet is prepared and adequately located in “up-side down” position, 100 mm far from the climate room floor (the same minimum distance must be maintained also from the roof and from the climate room side walls); an heating element (an heater) is placed inside the compartment to be tested. After that, thermocouples are positioned on the internal walls of the compartment to be tested, on the external walls of the cabinet and on the internal and external walls of the door; each compartment, the refrigerator compartment and the freezer compartment) must be tested separately, one by one. The figures below show an example of appliance and heating element positioning. The thermocouples record the temperatures inside and outside the refrigerators and are positioned on each side of the refrigerator (or freezer) and door: The heating element inside of the compartment must be fed in order to create a specific DELTA T, hence to maintain the desired gap between the internal and external temperatures. This DELTA T is fixed at 20°C for the refrigerator compartment and at 40°C for the freezer compartment. The power consumption represents the Kwh/24h (or Wh/24h) value of the heating element during the test (to create and maintain the DELTA T); the RHL value is the power (expressed in W) supplied to the heater to maintain the DELTA T for each compartment. The power supplied is recorded when the thermal balance condition is achieved. This means that the desired DELTA T has been achieved and maintain for at least 24 hours, and no adjustment on the heating element power is needed. Once the thermal balance is 22 achieved, temperatures for each thermocouples and power supplied to the coil are carried out and recorded for at least 24 hours. Additional details are reported in the attached files. Refrigeration Market Survey Refrigerator Market Survey China and World (2011) used for the study of the market replication potential is attached: 7.5. Action 5: Preparation of the Demonstration by AFROS-CRIOS Start date: 1st January 2010/End date: 30st November 2010/ Status: Completed The Action 5 progresses are indicated in the following Gantt chart extract: ENERG-ICE (start date 1st January 2010) 2010 2011 2012 2013 I II III IV I II III IV I II III IV I Action Resp Start Finish Month PREPARATORY ACTIONS J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M 5 Preparation of the Demonstration by Afros Afros M1 M9 9 N° This action is related to the preparation of the demonstration by Afros-Cannon leading to the design the ENERG-ICE pilot plant, considering all engineering and controls needed to build it, the including the safety aspects. A5 1 2 A5 1 2 Deliverables Description This report contains the plant blueprints and defines all the production targets, process Technical report on pilot plant design parameters, control points, reference values for measurements Preliminary market information Plan preliminary market information campaign to 8-10 industrial stakeholders campaign Deliverables Results Technical report on pilot plant design Preliminary market information campaign Appliance producers informed are listed in the summary of the preparatory actions (pag.13) 7.5.1. Deliverable A5-2: Preliminary market information campaign The preliminary market information campaign started since the beginning of the project in cooperation with Dow. The ENERG-ICE project has been presented to some appliance manufacturers globally generating a lot of interest. Some of them have shown high interest on the demonstration of the technology feasibility for this industry segment and, as anticipated, five of them accepted to run the Lab demonstrations in the pilot plant when ready. The detailed demonstration activity and results for each of these five appliance producers are collected in the chapters 8 and 9 of this report. As anticipated, an important element of the technology demonstration is the confidentiality of the data generated for each of the producer involved, so a 23 non-disclosure agreement was proposed and signed among the Energ-Ice partners and the appliance producer. 7.6. Action 6: Construction of Pilot Plant (AFROS with CRIOS) Start date: 1st January 2010/End date: 30st November 2010/ Status: Completed The Action 6 progresses are indicated in the following Gantt chart extract: ENERG-ICE (start date 1st January 2010) 2010 2011 2012 2013 I II III IV I II III IV I II III IV I Action Resp Start Finish Month IMPLEMENTATION PHASES J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M PHASE 1 – PILOT DEMONSTRATION AND FINETUNING 6 Construction of Pilot Plant Crios M1 M15 15 N° The construction of the ENERG-ICE pilot plant is the key action of the implementation phase. It was successfully completed within the deadline in order to have enough time for the agreed demonstrations. A6 Deliverables Description 1 Pilot Plant Construction Equipments, piping and instrumentations assembled tested and operational. 2 Plant HSE Manual & Procedures Safety manual, risk assessment preparation of working procedures Tasks completed and tangible results: A6 Deliverables Results 1 Pilot Plant Construction Report attached as 7.6.1 2 Plant HSE Manual & Procedures Manual attached in the Annexes 7.6.1. Deliverable A6-1: Pilot Plant Construction The pilot plant had to support both technically and mechanically the PU foaming taking place under vacuum environment. The Action 6 consisted on the assembling of the following items into a pilot working line: 6.1 A large refrigerator fixture suitable to receive refrigerators with various dimensions and able to maintain controlled vacuum (wider size refrigerators are becoming more and more popular and diffused) 6.2 An existing metering unit (high pressure PU injection machine) 6.3 A new mixing heads of the same type of those employed in the market 6.4 A new premix unit for preparation of the chemicals 6.5 The fabrication of a new fixture - Roto-jig type - for industrial demonstrations Pilot plant items: a) Single stage wide size fixture for the vacuum assisted foaming 24 and As soon as the first potential customer showed a serious interest for the ENERGICE demonstration campaign it was necessary to order a basic fixture (manually operated) with the following characteristics: • Suitable adjustable size for large refrigerators models • adaptability to different plugs (refrigerators core-mold part) and refrigerators width • heated walls and suitable for the vacuum depression • special sealing system to maintain constant vacuum (for vacuum assisted injection) • safe handling of flammable blowing agents (pentane protected) • mix head support adaptable to different mix heads models The drawings of these parts are shown in the report of Action 5, attached the real part as they have been produced and assembled into the pilot line. The single fixture: Details of fixture sealing system: 25 The two mix-heads selected for the ENERG-ICE project: FPL 24 HP JET-LESS 24 The blending unit for chemicals, the multi easy froth station: 26 The Roto-jig fixture type: 27 The complete pilot plant: As described, the pilot plant was assembled and completed within AFROS, using mechanical and pneumatic parts stored in the warehouse. The AFROS procedure to 28 purchase these parts, store and collect them for the pilot plant construction is shown in the following scheme: Start ENERG-ICE PILOT PLANT 7.7. End 1. A production order is required/generated 2. The technical department assigns a production code 6. The materials are tested, assembled and delivered according to the order 3. The purchase department orders the materials required 5. The materials required are unloaded and assigned to the order 4. The materials arrives and is stored in the warehouse Action 7: Fine-tuning of Chemistry and Process Start date: 1st March 2010 / End date: 31st March 2013/ Status: Completed The Action 7 progresses are indicated in the following Gantt chart extract: ENERG-ICE (start date 1st January 2010) Action Resp Start Finish Month Fine-tuning of Chemistry and Process DOW M3 M39 37 7 (w ith AFROS) N° I II 2010 III IV I II 2011 III IV I II 2012 III IV 2013 I ENERG-ICE technology is an innovative PU foaming technology to produce refrigerator with better energy efficiency that combines vacuum assisted process, developed by Afros/Crios, with an innovative chemistry developed by Dow. The fine tuning of process and chemistry has been carried out as an interactive process between the two laboratories in Dow and Afros/Cannon; it can be summarize in following steps: 1. Dow developed the new formulations modifying the PU chemistry (Lab experiment) 2. The new formulations were tested in Afros/Cannon pilot line to produce cabinets, doors and panels with ENERG-ICE technology (Industrial Validation) 3. These cabinets, doors and panels were tested in terms of foam properties and, for cabinets and doors only, for RHL performance 4. The results were collected and analyzed to decide how to proceed ahead 5. Did we achieve the desired target? o Yes? – Fine tuning completed o No? – Return to step 1 The fine tune process criteria is summarized in the below picture. 29 Final Industrial Validation Results P Vacuum tank Vacuum pump Injection Brett mold Chemistry development & Process fine-tuning Energ-Ice Cabinets &doors production Industrial Validation Correggio Labs Cannon Thanks to this interactive process between partners we could develop several ENERGICE formulations tailor made on customer requirements; some of these (6 + an experimental ones) were selected to be tested at the pilot plant in Afros-Cannon. Most of the chemistries had been developed using the cyclo-pentane as sole blowing agent. In the final phase of the project, alternate chemistry development using a new blowing agent with low GWP (<11, GWP of Cyclo-pentane) was completed to perform a trial at AfrosCannon pilot plant according to a customer request; in the case, a mixture of the new BA and cyclo-pentane was used. The Action 7 deliverables are reported in the following table: A7 1 A7 1 Deliverables Description Report on pilot trails and laboratory test Report on DOW laboratory tests of results performed at DOW laboratories the pilot demonstration phase during activity 8. Deliverables Results Report on DOW laboratory tests of the pilot demonstration phase The attached report on DOW laboratory test of the pilot plant demonstration phase summarizes the iterative fine-tuning and development of the foam chemistry and of the foaming process. The plan included the definition of at least 4 different formulations satisfying the industry market needs and corresponding adaptations to the manufacturing process: • at least 3 formulations using HCs as blowing agents and one using one of the next generation BAs, also called HFOs, having low GWP The chemistry development was a continuous fine tuning process associated with the application of vacuum to the foaming process which culminated in: • Six ENERG-ICE formulations plus an experimental one selected to be tested at the pilot plant of Afros-Cannon, with two blowing agents: pure cyclopentane and a new BA with low GWP also used in mixture with cyclopentane. The ENERG-ICE formulations developed are summarized in the following table: 30 Type of Blowing agent Type of technology Formulation Customer Data of Trial A JUL_2010 B OCT_2010 C OCT_2010 B MAR_2011 C JUL _2011 D SEP_2011 B NOV_2011 B JAN_2012 E MAY_2012 E NOV_2012 Process fine tuning OCT_2012 CP 502 503 503,02 X X X X X X X Energ-Ice 504 504,02 BA new CP 505 505 EXP X X X X X X X X All details explained in the report attached in the deliverables table. 7.8. Action 8: Sample Testing and Validation of Results Start date: 1st November 2010 / End date: 31st March 2013/ Status: Completed The Action 8 progresses are indicated in the following Gantt chart extract: ENERG-ICE (start date 1st January 2010) Action Resp Start Finish Month Sample Testing and Validation of Results 8 Afros M5 M39 35 (w ith DOW) N° I II 2010 III IV I II 2011 III IV I II 2012 III IV 2013 I This action was successfully completed proving the concept of ENERG-ICE process quality and consistency at the Afros-Canon pilot plant, and demonstrating the technology advantages in terms of insulation properties for appliance refrigerated cabinets. Customer A was selected for the scope, we were able to demonstrate that: • Cabinets can be produced with Energ-Ice technology without process difficulties • Cabinets showed good quality • 4% shot weight reduction vs. low k system reference was achieved • Cabinets showed good long term stability • Average KF at 10°C was 19.2 mW/m.K • 6.7% RHL improvement vs. standard k system (today’s Customer A reference) was achieved. Those results obtained with Customer A cabinets, represent a promising start; the key performance requirements such as energy improvement and other foam properties were successfully achieved as desired giving an encouraging insight into a successful prosecution of the project. The results achieved for this action are reported in the following table (additional details are reported in the sub-chapters): A8 1 Deliverables Description Report on laboratory tests of Analysis and validation of test results the pilot demonstration phase for comparison with energy efficiency 31 2 of commercially available refrigerators. (DOW-AFROS) RHL test results of pilot scale Test results on at least 8 samples. testing A8 1 2 Deliverables Results Report on laboratory tests of the pilot demonstration phase (DOW-AFROS) RHL test results of pilot scale testing Customer A provided 40 cabinets to perform the ENERG-ICE trial; 40 injection trials on cabinet samples were performed as detailed in the attached report; 8 samples were tested at Gavirate AE Lab in terms of RHL. It is important to remind one of the critical aspects of the ENERG-ICE project faced during the customer approach and enrollment into the project validation acceptance: all the refrigerators producers who accepted to test their units for new technology validation in the ENERG-ICE pilot plant asked to be protected by signing a Non-Disclosure Secrecy Agreement to avoid any information leak to other parties. That is well understood, it’s expected that any producer would like to avoid that the appliance industry community (its own competitors) knows about the level of energy saving achieved for a certain model sold in the market and therefore also the level of energy achieved. The energy label identifies a class of energy performance but not necessarily the real energy level of a given product, especially for new models under development to be launched in the market. For this reason, the ENERG-ICE project management board had decided to label the producers who have accepted the demonstration program as A, B, C, D, and E. 7.9. Action 9: Industrial Validation The Action 9 progresses are indicated in the following Gantt chart extract: N° ENERG-ICE (start date 1st January 2010) 2010 2011 2012 2013 III IV I II III IV III IV I I II I II Action Resp Start Finish Month PHASE 2 – INDUSTRIAL VALIDATION AND DEMONSTRATION J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M 9 Industrial Validation (w ith DOW) Afros M7 M39 33 Start date: 1st Jul 2010 / End date: 31st March 2013/ Status: Completed Action 9 was successfully completed performing several industrial validations of ENERG-ICE technology in the Afros-Cannon pilot plant. During the 39 months of project life, 5 Global Appliance producers accepted to run the industrial validation to verify and demonstrate the technology advantages in terms of insulation properties assuring good foaming process. In summary: -10 validation trials were performed (plus an additional process fine tuning trial without any appliance producer) -5 Global Appliance manufacturers were involved 32 -390 injection trials were performed -More than 240 Lab test were performed (for each analyzed cabinet or door density and CS distribution, and at least one lambda sample were measured) -66 RHL tests were performed -6 ENERG-ICE formulations + an experimental one were developed and tested -2 different BAs were employed, CP and a new BA with low GWP This extensive industrial validation work allowed demonstrating the feasibility of the ENERG-ICE technology to foam refrigerators and freezers while obtaining the following results against current foaming technologies: -8% RHL improvement if CP is employed -11% RHL improvement if the new BA with low GWP is employed In both cases foam mechanical properties and long term stability were maintained. This is fully matching the original project target of improving the insulation efficiency up to 10% vs. reference of the market. It’s a great achievement giving a path forward for future additional improvements for the cold appliance industry. ENERG-ICE doors were also produced validating the suitability of this technology for this industry segment. The whole set of results were statistically analyzed validating correlations between refrigerator’s RHL, PU foam thermal conductivity (lambda, KF) and reactivity (gel time). Finally, the combination of the ENERG-ICE technology to the variable output injection technology was validated. The following table lists the industrial validation trials performed at Afros-Cannon pilot plant: Customer Data of Trial A B B C C D B B E E Process fine tuning JUL_2010 OCT_2010 MAR_2011 OCT_2010 JUL _2011 SEP_2011 NOV_2011 JAN_2012 MAY_2012 NOV_2012 OCT_2012 #injection trial (cabinet/ door/ panel) SbS_cabinet 40 Combi _cabinet 30 Combi _cabinet 30 Refrigerator_cabinet 50 Refrigerator_cabinet 39 Combi _cabinet 40 Door 69 Door 12 Combi _cabinet 34 Combi (cabinet 3 cavities) 30 panel 16 TOT 390 Type of Model The first demonstration took place in July 2010, the last one in October 2012. The table below lists the results achieved in terms of RHL that are graphically collected in the following picture: 33 A B B1 C C1 D E E1 E1 newBA RHL (%) 7,2 3,5 4,5 3,5 6,2 8,1 7,5 7 10,5 Door* (%) 0,5 1,5 1,5 1,5 1,5 0,5 0,5 0,5 1 RHL reference 3 3 4 4 4 RHL results 3,7 2 3 2 4,7 4,6 3 2,5 5,5 The last column on the right hand side indicates the RHL data as they were measured in AE Lab. The RHL reference column indicates the value to add to the experimentally measured RHL when the reference system was a low k 3% or low k 4%. The RHL door column is the value related to the ENERG-ICE doors. Final RHL % gain highlighted in the blue column is the sum of these contributions. 12 10 R H 8 L 6 ( ) % Door* (%) 4 RHL cabinet (%) 2 0 Customer The % RHL improvements expressed on the Y axis is the average gain measured for both compartments of the refrigerator foamed with ENERG-ICE formulation. The doors used to perform the RHL were always those from the current customer production, so produced with reference materials. The green section of the graph bars reflects the door contribution if foamed with ENERG-ICE. It is worthy to reiterate, as already explained in the section 7.7, that the fine-tuning of Chemistry and Process project phase progressed in parallel with industrial validation phase. The actions 9 deliverables and the results achieved in this project phase are reported in the following tables: A9 Deliverables Description 1 Execution of at least 400 trials and at least Injection tests on cabinet of refrigerators and 80 lab tests (AFROS) freezers. 2 Execution of at least 240 lab test (DOW) 3 RHL test results of industrial validation Analysis of physical and chemical properties. Test results on at least 40 samples. Deliverables Results A9 34 1 Execution of at least 400 trials and at least 80 lab tests (AFROS) 2 Execution of at least 240 lab test (DOW) Included into the report attached above 3 RHL test results of industrial validation Included into the report attached above An important sub-action is the waste disposal of chemicals and of tested cabinet and/or door (samples and parts of it) following the European waste legislation obligations (WEEE). Actually, for each ENERG-ICE validation performed, the following wastes are produced: -polyol component added with blowing agent, either reference or ENERG-ICE polyol, being used for washing the line before running the validation - polyol component added with blowing agent, either reference or ENERG-ICE polyol, being unloaded at the ned of the validation -PU foam samples taken from cabinets and doors dismantled for testing -metal parts from cabinets and doors sides dismantled for testing -plastic parts from cabinets and doors dismantled for testing -mixture of PU foam, plastics and metal parts adhering one to another from cabinets and doors dismantled for testing The same is happening in Dow R&D lab of Correggio during ENERG-ICE formulation development and cabinets and doors testing. Waste disposal procedure utilized: 7.10. Action 10: Evaluation of Demonstration: Environmental Benefit and Market Impact The Action 10 progresses are indicated in the following Gantt chart extract: ENERG-ICE (start date 1st January 2010) 2010 2011 2012 2013 I II III IV I II III IV I II III IV I Action Resp Start Finish Month PHASE 2 – INDUSTRIAL VALIDATION AND DEMONSTRATION J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M Evaluation of Demonstration (w ith M7 M39 33 10 DOW M13 M38 15 AFROS) N° Start date: 1st Jul 2010 / End date: 28th February 2013/ Status: Completed • Conclusions of preliminary trials of the pilot demonstration phase: It has been demonstrated that the ENERG-ICE technology to foam refrigerators and freezers making use of a controlled reduced in-mold pressure when the appliance is injected, enables the use of tailor-made fast reactive PU foam systems offering an advanced combination of excellent thermal insulation performance with a significant productivity improvement vs. current foaming technologies. The pilot demonstration phase was instrumental to develop a new refrigerator’s fixture concept with gaskets able to maintain the in-mold vacuum at the desired level during the injection; additionally, the double refrigerator’s fixture called Roto-jig was developed to 35 maximize the ENERG-ICE capability in terms of productivity and different types of mixheads were compared to process fast reactive systems with good results. On the chemical side, this phase was of high importance to fine tune the chemistry of ENERG-ICE formulations, since the process under vacuum environment allows easier PU foam flow; the formulation changes were validated within Dow R&D Lab and tested and modified in the pilot plan before inviting any producer for industrial validation with real refrigerators. Last but not least, the continuous learning during this phase allowed Afros-Cannon to think of a modified injection process employing variable output along the injection time. This technique allows better distributing the foam flow path at the real beginning of the PU reaction, helping the foam distribution into the cabinet’s cavity to be filled while further enhancing fast reactive PU system effectiveness; in the case, less PU material is necessary to fill properly the cavity, resulting in an economically cost improvement for the refrigerator’s producer also combined with reduced CO2 emission, giving an environmental friendly characteristic to the ENERG-ICE foaming technology (this has been demonstrated with the Life Cycle Assessment – LCA- of the process as described later on). • Final conclusions of the industrial validation phase: The achievements of the pilot demonstration phase were validated by injecting real refrigerators of customer A, the first domestic appliance produce accepting to participate to the ENERG-ICE demonstration. Customer A refrigerators injected with ENERG-ICE foam system showed >7% RHL improvement vs. baseline of their current production, giving a promising insight into the achievement of the final project target of 10% RHL improvement. In conclusion, at the end of the project, after running 10 validation trials at the ENERGICE pilot plant, injecting 390 real refrigerators from 5 global producers, performing more than 240 laboratory tests measuring foam properties from injected refrigerators and doors (mainly density, compressive strength and foam thermal conductivity) and, finally, measuring the refrigerator’s energy efficiency as RHL at an external independent and certified Laboratory (66 RHL tests were performed at AE Lab, Gavirate, Italy), we can conclude that: The ENERG-ICE project has been successfully completed demonstrating to the appliance industry that a new injection technology feasible for domestic appliance insulation can achieve: o 8% PU insulation efficiency improvement (measured by RHL) if Cyclopentane blowing agent is employed o 11% PU insulation efficiency improvement (measured by RHL) if a blowing of new generation having low GWP is employed In both cases foam mechanical properties and long term stability are maintained giving the appliance industry a viable and realistic opportunity to up-scale their production facilities to a more environmental friendly process. This is fully matching the original project target of demonstrating that it’s possible to improve the insulation efficiency of domestic refrigerators 36 up to 10% vs. reference of today’s market with respect to energy and ecodesign European legislations. It’s a great achievement giving a path forward for future additional improvements for the cold appliance industry. All RHL results are summarized in the following graph: 12 10 R H 8 L 6 ( ) % Door* (%) 4 RHL cabinet (%) 2 0 Customer • Final results of Life Cycle Assessment: The LCA study includes models for the complete refrigerators production process in Europe for two specific polyurethane foams for use in a Class A residential refrigerator, the ENERG-ICE foam and the current reference PU foam, and included all life cycle stages. It is limited to these foams, and in particular to the use of Cyclopentane as a blowing agent, making sure it’s an “apple to apple” comparison. The study did not include other aspects of the refrigerator design or use that could impact performance (drink dispenser, ice cubes device presence, different electronics, and so on). Electricity consumption during the use phase of a refrigerator is the dominant source of potential environmental impacts. Use of insulation with improved performance such the one offered by ENERG-ICE foam technology is a way to reduce burdens from use of refrigerators. The new technology allows for a measured 10% improvement in PU energy efficiency, which translates in about 10% less electricity use (all other things remaining the same) giving 10% reduction in all potential cradle-to-grave impacts: 37 Due to the dominance of the refrigerator use phase, uncertainty about specific production or end-of-life inputs, including the choices of background data sets, would not have a significant impact on the results. On a cradle-to-gate perspective, the new technology offers a small but plausible advantage in all impacts considered, primarily due to the less mass required to get the same performance, both insulation and structural. The benefit of reduction in heat and power to the process was small compared to the benefit from the reduced mass. • Main conclusions from the market study / impact scenario: The detailed market study is well explained in the deliverable attached; however the impact scenario of the ENERG-ICE technology adoption by the European appliance industry can be understood taking a look to the attached graph showing an historical view of the refrigerators and freezers consumer uptake in terms of high efficiency and the evolution up to 2018 (source CECED, European Association of Appliances Producers). The numbers on the bars indicate the units in million. As can be seen, only class A+ refrigerators are present in 2013, and only class A++ and A+++ refrigerators will survive in 2017. 38 The penetration of the high efficiency classes is significantly accelerated by the EU Community energy legislations; technology innovation is the sole way to match it. ENERG-ICE can give the Appliance industry a great contribution from insulation material point of view since the classes differ one to another by 15%, so having a PU technology offering already 10% of the needed improvement would allow the industry to gain the remaining 5% to achieve the next efficiency class from other energy impact refrigerator’s options (such as a more efficient compressor, better refrigerant or improved thermodynamic of the evaporator/condenser circuit). Hypothesizing to the extreme, the adoption of ENERG-ICE technology for all European refrigerators production would accelerate the energy labeling implementation scenario dictated by the EU legislation of 2-3 year, meaning: 10% energy efficiency improvement from ENERG-ICE PU technology + additional 5% energy efficiency improvement from compressor/refrigerant optimization allow to gain a new energy class, e.g. A+ becomes A++ The 62 million units produced and forecasted as A+ in 2013 would become A++ Those 62 million units A++ are, so far, forecasted for 2017, so, even taking into consideration a 70% of success as yielded market introduction, the energy classes improvement required by the legislation could be speeded up of 2-3 years Deliverables of action 10 and results achieved: A10 Deliverables 1 Description Mid-term evaluation report defining the replication potential of the technology in Europe, China, Turkey, South and North America and outlining a strategy for Mid-term evaluation market introduction. The evaluation report of this report (DOW-AFROS) activity will be presented at the mid-term workshop. Preparation of summary dissemination report for Industrial stakeholders. 2 Final evaluation report showing the achieved Final evaluation report insulation performances and market acceptance of the on the industrial new PU insulation foam and investigating the validation phase replication potential. This study will be presented at (DOW-AFROS) the final conference. 3 Development of 2 market introduction impact Market introduction scenarios, in Europe and worldwide, showcasing the impact scenarios environmental benefit of market uptake of higher performing cold appliances than today. This study will (DOW-AFROS) be presented at the final conference. A10 Deliverables Results 39 1 Mid-term evaluation report (DOW-AFROS) 2 Final evaluation report on the industrial validation phase (DOW-AFROS) 3 Market introduction impact scenarios (DOW-AFROS) 7.11. Action 11: Dissemination by FEDERCHIMICA, Layman’s Report The Action 11 progresses are indicated in the following Gantt chart extract ENERG-ICE (start date 1st January 2010) DISSEMINATION Feder 11 Dissemination by FEDERCHIMICA 2010 2011 2012 2013 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M M1 M39 39 Start date: 1st January 2010 / End date: 31st March 2013/ Status: Completed In the ENERG-ICE project plan, the dissemination activities were planned with the following deliverables: A11 Deliverables Description 1 Launch of the initiative “Eco-design approaches and energy efficiency solutions in the European Chemical Industry” Initiative for collecting successful experiences (e.g. voluntary press releases or article abstracts) of making the European Chemical Industry more sustainable. Dissemination will occur through publication of newsletters in English and Italian. Publication of the collection of the most shining examples of: “Eco-design approaches and energy efficiency solutions in the European Chemical Industry” Collection provided by the industrial stakeholders involved (on their voluntary request) in the initiative. 3 Roadmap document for a Sustainable Chemical Industry (in collaboration with DOW, AFROS and involvement of CEFIC) A report showing where eco-design approaches and/or solutions for energy efficiency are most needed in the processes or products of the European Chemical Industry. This document will be elaborated with contribution from the FEDERCHIMICA partner. 4 “The Chemical Industry and its contribution to the Eco-design of Energy Using Products” 1-day mid-term conference in Milan 2 5 “Eco-design and energy efficiency in the European Chemical Industry and Implications 40 1-day final Conference in Milan of the Kyoto Protocol” Preparation of brochures, newsletters and final poster Brochures will be prepared both in Italian and English. Planned quantity: 2.000 before the mid-term workshop and 2.500 before the final conference. FEDERCHIMICA will also disseminate the project through its own newsletter (in Italian). A poster in English will be prepared for the final conference to showcase the activities and the results of the project. 7 Dissemination to workshops DOW and CANNON will be invited to take part to 2 workshops organized by FEDERCHIMICA related to Responsible Care Programme 8 Layman’s report As requested by the EC A11 Deliverables Results 1 Launch of the initiative “Eco-design approaches and energy efficiency solutions in the European Chemical Industry” Initiative launched during the 5th Int. TACEC Congress, Milano, March 15th, 2011. 2 Publication of the collection of the most shining examples of: “Eco-design approaches and energy efficiency solutions in the European Chemical Industry” 3 Roadmap document for a Sustainable Chemical Industry (in collaboration with DOW, AFROS and involvement of CEFIC) 4 “The Chemical Industry and its contribution to the Eco-design of Energy Using Products” 5 “Eco-design and energy efficiency in the European Chemical Industry and Implications of the Kyoto Protocol” 6 Preparation of brochures, newsletters and final poster 6 7 Dissemination to workshops 8 Layman’s report Done at CHEM-MED Int. Chemical Event held in Milan/Italy, 5th-7th October 2011 Done during the 16th Int. TACEC Congress, Milano, May 23rd, 2013 Done, attached below Done during the 8th Italian Responsible Care Annual meeting, Rome, June 22nd, 2010 and at the 10th RC Coordinator meeting, Bologna, June 12th-13th, 2012 The dissemination activities were organized to cover the whole project life with regular updates and promotion of the ENERG-ICE project status and results at international conferences, fairs and workshops usually attended by the refrigeration and chemical industries players. 41 Materials prepared and special events organized to promote ENERG-ICE: ENERG-ICE Poster: ENERG-ICE Brochure: ENERG-ICE NewsletterS from Federchimica: Sent by e-mail to newsletter subscribers (8,700 contacts) 42 ENERG-ICE Mid-Term Conference at CHEM-MED Example of Responsible Care Meeting: ENERG-ICE presentations given at various external events are summarized in the table below: 43 Date of initiative Initiative 23 June 2010 Responsible Care Conference, Rome 20 July 2010 TACEC International Workshop, Milan 2010 Catalyst for Sustainable Development Conference, Rome 6 October 2011 CHEM-MED International Chemistry Fair, Milan, ENERG-ICE Mid-term Conference 25 May 2012 GreenWeek European Commission Expo, Bruxelles 12 June 2012 Responsible Care Conference, Bologna 23 may 2013 TACEC International Workshop, Milan, ENERG-ICE Final Conference 7.12. 8. Action 12: After LIFE Communication Plan EVALUATION AND CONCLUSIONS 8.1. Project implementation The ENERG-ICE project has been successfully completed achieving the original targets. We could demonstrate that: • • • It is possible to implement a new insulation technology to inject cold appliances such as refrigerators and freezers using vacuum assisted injection providing cost-effective, eco-design, environmental-friendly and superior energy savings The ENERG-ICE pilot plant was built to inject real refrigerators and freezers provided by global appliance producers; we could demonstrate the achievement of the following results against current foaming technologies: o 8% PU energy efficiency improvement with Cyclopentane blowing agent o 11% PU energy efficiency improvement with new blowing agent having low GWP (comparable to that of Cyclopentane) Superior eco-design and environmental friendly production technology as certified by the Life Cycle Analysis performed: o The ENERG-ICE technology allows for a measured 10% less electricity use (all other things remaining the same) which translates to about 10% reduction in all potential cradle-to-grave impacts assessment Additional benefits the ENERG-ICE team could demonstrate are the following: 44 • • • • Optimized distribution of foam density throughout the entire cabinet’s cavity to insulate. Reduction of polymerization time per foaming station, cut nearly in half due to the possibility of using high reactivity formulations providing a significantly higher productivity Reduced plant's floor space in half when using the new “twin” foaming fixture the RotoJig – specifically conceived for this technology Demonstration that the vacuum-assisted technology can be implemented while guarantee safety of operations and ease of process 8.2. Analysis of long-term benefits Long term benefits can be tackled in three ways: • • • Environmental benefits Long-term sustainability of technology Replicability to other technologies and markets 8.2.1. Environmental benefits The environmental benefits of ENERG-ICE technology can be translated into carbon footprint reduction due to the CO 2 emission savings as a consequence of the electrical energy savings. The potential to reduce the Energy consumption of Cold Appliances of up to 10%, i.e. 30-35 kWh/yr for Class A refrigerators equivalent to 0,018-0,021 BOE/yr (per sold working unit) reducing the carbon footprint of 0,008-0,009 tCO2eq/yr. 1 BOE = 6,1 GJ = 1694,4 kWh/yr = 5,78 * 106 BTU = 0,432 t CO2 eq Since ENERG-ICE can save 8 kg of CO 2 emissions per year per appliance, considering the refrigerators and freezers production worldwide of about 175 millions units (see data from Action 4 – Deliverable 5: Market Replication Potential), the market potential is to save 1.4 million tons of CO 2 emissions each year – the equivalent of taking 213,000 cars off the road. Focus on Europe, the potential impact on Europe of 10% energy saving, assuming a 20% market share on the base of 22,5 million units (refrigerators and freezers) sold in 2013 in Europe, is estimated at: 8 kg CO2 * 22.500.000 units/y*0,2 = 36.000 tons of CO2 saved The estimated amount from LIFE08 ENV/IT/000411 project submission was a minimum of 135,3 GWh/yr, equivalent to 79 855 BOE/yr or 34 499 t CO2eq /yr saved, so very close to what we could demonstrate. Nowadays, the forecasted unit demand in Europe is the following: 2012 = 22.396 2013 = 22.973 2014 = 23.653 millions units/y Additional saving are foreseen if HCFCs and HFCs blown foam are replaced by ENERG-ICE using either Cyclopentane or a new blowing agent with low GWP (<11, 45 value for CP). The potential impact of replacing HCFCs and HCF blown foams worldwide with cyclopentane assuming only a 10% market share on nearly 50 million units sold in 2015 (rounded down estimation) on the worldwide market is estimated in nearly 5 500 000 t CO2eq /yr saved: i.e. 160 times greater than the benefit resulting from energy savings in Europe due to the difference of GWP values: Blowing Agent Ozone Depletion Potential (ODP) Global Warming Potential (GWP, 100 years) HCFC-141b 0.11 630 HFC-134a 0 1300 HFC-245fa 0 1030 Cylopentane 0 11 New BA with low GWP 0 9.4 8.2.2. Long-term sustainability of technology The long term sustainability of the ENERG-ICE project is given by the LCA assessment that, limited to the sole PU foam manufacturing and to the effect of thermal conductivity of PU foam on refrigeration efficiency (based on lab test results of the pilot and industrial validation phases), shows how sustainable is the new technology offer. The LCA study performed includes models for the complete production process in EU for two specific PU foams in use for Class A refrigerator including all life cycle stages; it is limited to the comparison of foams with c-pentane as blowing agent in the current and new ENERG-ICE technology. Other aspects of the refrigerator design or use that could impact performance are not included. Electricity consumption during the use phase of a refrigerator is the dominant source of potential environmental impacts. The new technology allows for a measured 10% less electricity use (all other things remaining the same) which translates to about 10% reductions in all potential cradle-to-grave impacts as shown in the graph below: 46 On a cradle-to-gate perspective, the new technology offers a small but plausible advantage in all impacts considered, primarily due to the less mass required to get the same performance: The benefit of reduction in heat and power to the process was small compared to the benefit from the reduced mass. 8.2.3. Replicability to other technology and markets The ENERG-ICE technology was demonstrated as a suitable PU technology solution to efficiency insulate cold appliances; refrigerators and freezers are produced injecting the PU foam with a discontinuous process so, in principle, any discontinuous process where insulation items are produced could test ENERG-ICE technology. Among others, all these industry segments could benefit from ENERG-ICE: • Building insulation 47 • • • • 9. Cold chain Refrigerated transportation Discontinuous panels production Water heater insulation FINANCIAL REPORT Cost incurred 9.1. Budget breakdown categories Total cost in € 1. Personnel Eligible Cost in € Costs incurred from % of total %Incurred the start date to eligible costs costs/eligible 30.06.13 in € costs 1.748.200,00 € 1.695.527,46 € 62% 97% 2. Travel and subsistence 131.600,00 € 81.664,56 € 3% 62% 3. External assistance 138.702,00 € 60.444,53 € 2% 44% 4. Durable goods Infrastructure 0,00 € 0,00 € 0,00 € 0% 0% Equipment 250.000,00 € 125.000,00 € 64.489,87 € 2% 52% Prototype 400.000,00 € 400.000,00 € 448.295,84 € 16% 112% 0,00 € 0,00 € 0% 0% 22.680,00 € 9.741,09 € 0% 43% 0,00 € 643,65 € 0% 0% 178.925,00 € 165.256,49 € 6% 92% 2.745.107,00 € 2.526.063,48 € 92% 5. Land purchase / longterm lease 6. Consumables 7. Other Costs 8. Overheads TOTAL 2.870.107,00 € Total cost: Total incurred costs in the project lifetime have reached 92% of the budget costs: main deviations are related to Travels and subsistence and External assistance, Consumables. Reasons are explained below. 48 Personnel costs: Totalized 97% of foreseen costs, fairly in line with expectations and compatible with the current years cost control actions that any company is implementing, comprising reduction of time consuming travels and use of communication tools instead. Travel: Totalized 62% of foreseen costs: again this is a result of reducing travels costs, use of low cost flights, use of communication tools for conferencing instead of face to face meetings External assistance: Total of 44% of foreseen costs: some activities have been done by using internal resources rather than external services. For example, the LCA was supposed to be done by contracting a third party company, while this was realized by Dow Expert (about 200 men hours, whose cost was not considered as pertaining to a different foreign legal entity than Dow Italia) and then certified by an external company (PE International). Equipment: With respect to budget, durable equipments costs were foreseen for the upgrade of an existing foaming machine for producing ENERG-ICE PU panels in Dow laboratory in Correggio. This modification was budgeted at a cost of 128.979 € of which only three years depreciation have been considered as eligible costs (64.489€). A cost saving analysis was done that led to the implementation of minor equipment modification, able to achieve without compromises of the technical results needed for assessing the technical success of the project. Depreciation rates applied in according to Italian national law to equipment items Prototype: The budget dedicated to “proptotypes” refers to the purchase of a vacuum Brett mold specifically designed for the project. Moreover, the software/hardware modification of the pre-existing high pressure machine to use the variable output device was necessary for the project execution. Consumables: Ended at 43% of the foreseen costs. Ended low respect budget: main reason is the overestimation of the budget costs for the polyurethane system chemical products to be used in the pre-industrial demonstration phase of the project. It has to be said that, as explained in the Final Report, only 5 producers did accept to run the demonstrations limiting the amount of consumable needed. 49 With regards to the purchase of chemical consumables and other consumables used for the ENERG-ICE foam experiments and, later on, for the demonstrations at the pilot plant, it is done inside our Warehouse. Consumables with missing invoices are related to the chemical materials used for the development of the new product and the testing. This material is taken from the inventory of the company and so not invoiced. We provided with the Final report a detailed list of chemicals with dates of unloading from the inventory, date of use in the tests, type of chemical, average standard cost as inquired from internal documents, with the evaluation of the total material used for internal and external trials. Other costs: Deviation mainly due to overestimation of needed communication events needed project meetings and related catering costs. Overheads costs: Ended at 92% of foreseen costs, as they are capped at 7% of sum of other costs so they are 92% of the budget. Action 9.2. Personnel 1 € 101.443,46 2 € 101.684,80 3 € 34.091,94 4 € 49.415,98 5 € 134.192,51 6 € 133.931,15 7 € 235.202,22 8 € 169.712,52 9 € 658.377,98 10 € 40.948,81 11 € 36.526,11 12 € 0,00 Total € 1.695.527,46 Travel €9.280,19 €24.515,49 €9.828,98 €5.390,71 €10.583,64 Analysis of costs by action External assistance Infrastructure Equipm ent € 81.664,56 Landpurchase Lease of land Consum ables € 3.000,00 €5.128,10 €4.705,00 €59.784,87 €19.200,00 €22.316,43 € 10.800,00 € 60.444,53 Other direct costs €249,65 €1.740,40 €20.031,14 €30,74 €263,27 Prototype €28.355,84 €8.330,81 €382.144,00 €25.944,00 €1.410,28 €11.852,00 € 0,00 € 64.489,87 € 448.295,84 50 €314,00 €80,00 € 0,00 € 0,00 € 9.741,09 € 643,65 Total with Overhead Overheads Total € 113.973,30 € 131.328,38 € 43.920,92 € 91.493,34 € 149.481,15 € 575.860,01 € 264.610,90 € 188.912,52 € 700.725,55 € 63.711,55 € 36.789,38 € 0,00 € 2.360.806,99 € 165.256,49 € 2.526.063,48 Spent so far (eligible) Action number and name Remaining Projected final cost Action 1-Total Project Management by DOW-DOW DC € 113.973,30 € 7.093,30 € 106.880,00 Action 2-Project Management by AFROS-CRIOS € 131.328,38 € 31.828,38 € 99.500,00 Action 3-Project Monitoring (DOW) € 43.920,92 € 23.760,92 € 20.160,00 Action 4-Preparation of the Demonstration by DOW-DOW DC € 91.493,34 € 55.006,66 € 146.500,00 Action 5-Preparation of the Demonstration by AFROS-CRIOS € 149.481,15 € 8.968,85 € 158.450,00 Action 6-Construction of Pilot Plant (AFROS-CRIOS) € 575.860,01 € 93.139,99 € 669.000,00 Action 7-Fine-tuning of Chemistry and Process (DOW with DOW DC-AFROS-CRIOS) € 264.610,90 € 7.810,90 € 256.800,00 Action 8-Sample Testing and Validation of Results (AFROS with DOW) € 188.912,52 € 7.862,48 € 196.775,00 Action 9-Industrial Validation (AFROS with DOW and DOW DC) € 700.725,55 € 53.611,45 € 754.337,00 Action 10-Evaluation of Demonstration: Environmental Benefit and Market Impact (DOW with AFROS) € 63.711,55 € 248,45 € 63.960,00 Action 11-Dissemination by FEDERCHIMICA € 36.789,38 € 57.030,62 € 93.820,00 € 0,00 € 0,00 € 0,00 Action 12-After LIFE Communication Plan (FEDERCHIMICA WITH DOW) TOTAL € 2.360.806,99 € 205.375,01 € 2.566.182,00 Overheads € 165.256,49 Spent so far 106,64% 131,99% 217,86% 62,45% 94,34% 86,08% 103,04% 96,00% 92,89% 99,61% 39,21% 0,00% 92,00% € 178.925,00 TOTAL € 2.526.063,48 Action number Spent so far % € 2.745.107,00 Remaining Projected final cost Spent so far % Some remarks about the final budget expenditures and the rationale behind the deviations against the initial budget plan. First of all the budget plan is, as said, a plan, meaning an estimated budget foreseen as the project evolution is expected to take place, however some deviations are expected. By action: 1) Total project management by DOW-DOW DC: total expenditures well in line with foreseen budget. 2) Total project management by AFROS-CRIOS: in this case the total expenditures went beyond the foreseen budget of about 32%. The main reason is the larger involvement of the project management steering team to boost the interest to producers in the first phase of the project; travelling and personnel costs were slightly above the expected ones. 3) Project monitoring: even if the total sum of Action 3 is negligible if compared to the total project budget (about 1%), in this case we spent more than double compared to foreseen budget. The main reason is that we clearly made a mistake underestimating the initial budget of the monitoring action. In such a project, the need to monitor the construction of the pilot plant, making sure we maintained the time schedule saving enough time for the customer demonstrations was an essential activity needing good coordination among the partners so that several meetings took place in AFROS location. Same as for the previous action, personnel and travelling costs exceeded the plan. 51 4) Preparation of the demonstration by DOW-DOW DC: we spent 62% of the total budget assigned to this action; we could save money while using internal resources for the preliminary market campaign and dissemination activity to promote ENERG-ICE. 5) Preparation of the demonstration by AFROS-CRIOS: total expenditures well in line with foreseen budget. 6) Construction of pilot plant: total expenditures well in line with foreseen budget. 7) Fine-tuning of chemistry and process: total expenditures well in line with foreseen budget. 8) Sample testing and validation of results: total expenditures well in line with foreseen budget. 9) Industrial validations: total expenditures well in line with foreseen budget. 10) Evaluation of demonstrations: environmental benefit and market impact: total expenditures well in line with foreseen budget. 11) Dissemination by FEDERCHIMICA: in this case the total expenditures were significantly below the foreseen budget (only 39%). This deviation can be easily explained by two main reasons: a. As requested by the EU Commission with the letter dated May 2nd 2012 on the annex point 2.5.3. after the delivery of the Mid-term report, the status of the PRJ Coordinator for Federchimica, Mr. Sergio Treichler, need an explanation: since his function wasn’t included in the original project document, his position has been removed and his contribution recovered into the overheads; the two junior project disseminators of Federchimica, Mr. E. Brena and Mrs. D. Della Giovanna, having much lower annual gross salary, have been working successfully to complete the action 11 which resulted in cost saving. b. Some of the project events were organized within the Federchimica annual organization of events so were at cost ZERO for the project. This has also contributed to save budget that, at the beginning of the project, was impossible to predict. 12) After life communication plan: total expenditures well in line with foreseen budget. 9.3. Analysis of costs by partner Dow Italia srl Budget breakdown categories Costs incurred from the start date to 31.03.13 1. Personnel €667.621,45 2. Travel €46.565,43 3. External assistance €53.516,43 4. Infrastructure €0,00 5. Equipment €0,00 6. Prototype €65.496,00 7. Land purchase €0,00 8. Lease of land €0,00 9. Consumables €9.741,09 10. Other direct costs €643,65 11. Overheads € 59.050,88 TOTAL € 902.634,93 52 Eu contribution to DOW € 308.943,21 Dow Italia contribution € 593.691,72 Afros Budget breakdown categories 1. Personnel 2. Travel 3. External assistance 4. Infrastructure 5. Equipment 6. Prototype 7. Land purchase 8. Lease of land 9. Consumables 10. Other direct costs 11. Overheads TOTAL Eu contribution to AFROS Afros contribution Costs incurred from the start date to 31.03.13 €882.685,05 €19.425,41 €6.928,10 €0,00 €59.784,87 €382.799,84 €0,00 €0,00 €0,00 €0,00 € 94.613,63 € 1.446.236,90 € 554.253,00 € 891.983,90 Regarding your request 2.5.4 of the letter sent on May 2nd 2012 after the Mid-term report delivery, an explanation is due. Mr. M. Corti of Afros did replace Mr. A. Zarantonello as PRJ senior manager for AFROS. The responsibility hand-over started in the 2nd half of 2010 to be completed in the beginning of 2011 when Mr. A. Zarantonello did stop working for the project. Crios Budget breakdown categories 1. Personnel 2. Travel 3. External assistance 4. Infrastructure 5. Equipment 6. Prototype 7. Land purchase 8. Lease of land 9. Consumables 10. Other direct costs 11. Overheads TOTAL Eu contribution CRIOS Crios contribution Costs incurred from the start date to 31.03.13 €120.472,21 €15.673,72 €0,00 €0,00 €4.705,00 €0,00 €0,00 €0,00 €0,00 €0,00 € 9.859,57 € 150.710,50 € 47.663,65 € 103.046,85 53 Federchimica Budget breakdown categories Costs incurred from the start date to 31.03.13 TOTAL Eu contribution FEDERCHIMICA Federchimica contribution €24.748,75 €0,00 €0,00 €0,00 €0,00 €0,00 €0,00 €0,00 €0,00 €0,00 € 1.732,41 € 26.481,16 € 35.128,21 -€ 8.647,05 Eu contribution Eu contribution to DOW Eu contribution to AFROS Eu contribution to DIDC Eu contribution CRIOS Eu contribution FEDERCHIMICA 960.732,80 308.943,21 554.253,00 14.744,73 47.663,65 35.128,21 1. Personnel 2. Travel 3. External assistance 4. Infrastructure 5. Equipment 6. Prototype 7. Land purchase 8. Lease of land 9. Consumables 10. Other direct costs 11. Overheads Accounting system 9.4. Timesheets Used the timesheets form suggested in the Life+ website. Filled monthly only the daily hours dedicated to the project, as for the total worked hours the official tool of Human Resource of Dow Italia. The form was modified the form by inserting a row containing the number of the action for each worked hours in a day. This is needed to compute the personnel cost of each action of the project. Timesheets are filled and signed by each employee and by the Project Supervisor within one months from the reference timesheet months More in detail about calculation of worked hours: o To calculate the total cost of the project o To calculate the total worked hours per annum by the employees o To calculate the hourly cost by employee From Jan 2009 to April 2011 Crios, Afros Federchimica and Dow (Dow to Dec 2011), the method used for collecting worked hours is described here: 54 All the 4 partners have electronic systems in place for collecting daily presence and in and out times for each employee. Monthly presence sheets are available containing the worked hours: • Absence: Holyday actually taken, compensation, weekends, sickness Bank Holydays, Flex time • Service (i.e. work done outside the company) – rated as 8 hours / day • Hours per employee collected monthly are summed for the total 12 months of the year to obtain the total worked hours of the year that is used for the evaluation of the hourly cost rate. Dow Italia: 1) For employees of category C to E the actual productive hours are collected as they have extra time paid. 2) For employees of cat. A and B and Dirigenti, 8 hours are collected per day, as they do not have extra time paid. Afros and Crios: 1) For employees of cat. Dirigenti, 8 hours are collected per day, as they do not have extra time paid. 2) For other employees categories the actual productive hours are collected as they have extra time paid. Federchimica: 1) For employees of cat. A and B and Dirigenti, 8,25 hours are collected per day(6,25 hours on Friday), as they do not have extra time paid. 2) The employees of other categories don’t participate to the project. Starting from May 2011, the working hours collection has been improved by the partners Crios, Afros, Federchimica and Dow Italia (from January 2012) that are now collecting worked hours by using the Life+ monthly timesheets. Additionally, the electronic tool made available by the 4 partners reporting the total numbers of hours worked along all year in the company, allows the calculation of the total worked hours per annum for each employee participating to the project. Considering that the timesheets are filled in by the employees only in the months where they contribute to the LIFE2008-ENERGICE project, the combination of the two tools addresses your request. 55 EXAMPLE OF THE CALCULATION OF TOTAL PERSONNEL COST FOR ENERG-ICE PROJECT VANNI PARENTI YEAR 2011 MONTH January February March April May June July August September October November December ANNUAL WORKING TIME DOW ITALIA SRL MONTHLY WORKING TIME SERVICE TOTAL WORKING TIME 104,00 16,00 120,00 136,00 24,00 160,00 136,00 40,00 176,00 128,00 32,00 160,00 96,00 80,00 176,00 128,00 40,00 168,00 88,00 0,00 88,00 80,00 24,00 104,00 64,00 112,00 176,00 96,00 72,00 168,00 160,00 8,00 168,00 128,00 24,00 152,00 1816,00 Annual gross salary 184.737,28 € Hourly cost=Annual gross salary/Annual working time Hourly cost = 184.737,28 €/1816 hr = 101,73 € MONTH January February March April Mmay June July August September October November December ANNUAL WORKING TIME FOR ENERG-ICE PROJECT MONTHLY WORKING TIME FOR ENERG-ICE PROJECT 38,00 36,00 92,00 36,00 52,00 26,00 16,00 10,00 36,00 48,00 26,00 32,00 448,00 Total personnel cost for Energ-Ice project =Hourly cost x Total working time for Energ-Ice project Total personnel cost for Energ-Ice project = 101,73 € x 448 hr = 45.573,95 € Invoices When possible, orders to suppliers are issued containing the reference to the “Energ-Ice” project, with the aim to have it reported in the final invoice. Orders of Dow Italia fall directly in a Dow Italia R&D cost center created to handle expenses for the project. 56 If the invoice comes in without explicit reference to the Energ-Ice Project, a stamp with Energ-Ice Logo is used to mark each invoice. If an invoice contains also other goods not related to the project, the items raws with goods for the project are clearly identified. For travel related expenses, Dow used an internal tool (GERS – Global Enterprise Reporting Solutions) where costs of the same travel are collected and charged to the Energ-Ice cost center. 9.5. Partnership arrangements For information about personnel and all other incurred costs, they are transmitted by partners and received by Dow on a quarterly basis in electronic and paper form directly to the Project Supervisor, who is also responsible of personal data. The Finance report is prepared by Dow. 9.6. Final output indicators 9.7. Audit reports 9.8. List of Deliverables 57