Sectoral Emission Reduction Potentials and Economic Costs for Climate Change (SERPEC-CC) F-gases (HFCs, PFCs and SF6) October 2009 Jan-Martin Rhiemeier, Jochen Harnisch Ecofys Financial support from the DGRTD (European Community Sixth Framework Programme) and DGENV of the European Commission as well as of the Dutch and German ministries of Environment (VROM and BMU) is acknowledged. The SERPEC paper reflects the opinion of the authors and does not necessarily reflect the opinion of the European Commission, VROM and BMU on the results obtained. Ecofys Kanaalweg 16-G P.O. Box 8408 3503 RK Utrecht The Netherlands T: +31 (0)30 662 3300 F: +31 (0)30 662 3301 W: www.ecofys.com E x ec u t i v e S u m m a r y The aim of the project Sectoral Emission Reduction Potentials and Economic Costs for Climate Change (SERPEC) is to identify the potential and costs of technical control options to reduce greenhouse gas emissions across all European Unions sectors and Member States in 2020 and 2030. In this SERPEC sector report, we determine the potentials and costs of control options of fluorinated greenhouse gases (F-gases) in the European Union (EU27). Together, emissions of hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) amount to 70 Mt CO2-eq. in 2005, some 1.4% of the overall greenhouse gas emissions in the EU. 90 80 Mt CO2 eq 70 60 50 40 30 20 10 Base (Direct) 0 2000 2005 Reduction 2010 2015 Reduction-extra 2020 2025 2030 Figure 1 Baseline an d abatement potential for F-gases in the EU27. The lower dotted line, includes the (uncertain) phase out o f HFC-containing refri geration systems between 2020 and 2030 (see mai n text). Implementation of Regulation (EC) No 842/2006 on certain fluorinated greenhouse gases and Directive 2006/40/EC relating to emissions from air-conditioning systems in motor vehicles, can potentially decrease emissions to 54 Mt CO2-eq in 2020. The baseline assumption is very uncertain though. A recently but clear trend is observed in which HCFC containing refrigerants are replaced by HFCs. HFCs do not deplete the ozone layer but are potent greenhouse gases. Thus, the transition away from ozone depleting substances like HCFCs has implications for future climate. When such HFCs are not only applied in new but also in existing refrigeration systmes, the total F-Gas emission in the baseline will increase to around 81 CO2-eq in 2020 and 2030 (see Figure 1). The uncertainty in the baseline I emphasises the need for improvement of monitoring of F-gas emissions, as indeed announced in the Regulation (EC) No 842/2006. On top of this baseline emission we have identified an overall abatement potential of 26 Mt in 2020. The most important (additional) abatement options are leakage reductions in the refrigeration & air conditioning sector especially on commercial refrigeration systems and mobile air conditioning systems in cars. The costs of leakage reduction options for different applications of the refrigeration & air conditioning sector vary between 25 € and 100 € per tCO2-eq. The earlier mentioned ‘HFC-uncertainty’ in the baseline development is also reflected in the abatement potential. The baseline assumption that all existing refrigeration units that are still using HCFCs will be retrofitted with HFC-refrigerants, implies that these HFCs can be removed from these units –and replaced by new systems with natural refrigerants- when they reach the end of their lifetime between 2020 and 2030. A first order estimate of this impact, around 20 Mt CO2-eq. of abatement in 2030, is shown in Figure 1. The costs of this uncertaint option were not assessed. The overall cost curve for HFCs, PFCs and SF6 is shown in Figure 2. The 9 most important options in the cost curve are specified in Table 1. 900 € / t CO2 eq 700 500 300 100 -100 0 5 10 15 20 25 30 -300 Mt CO2eq Figure 2 Cost curve (HFCs), 2020, showing and costs options. abatement per fluorocar bons potential (PFCs) (€/t-CO2) for and the for sulphur Hydrofluorocarbons hexafluoride underlying indivi dual (SF6) in abatement T a b l e 1 N i n e a b a t e m e n t o p t i o n s w it h t h e b ig g e s t i m p a ct Measure Abated emissions Cumulative sum of Reductions1 Specific abatement cost [kt CO2 eq.] [kt CO2 eq.] [€/t CO2 eq.] Gas insulated switchgear: Decommissioning infrastructure 1,195 1,195 1.3 Foams XPS: Carbon dioxide 1,900 3,095 9 Foams PU cont./discont. panels: Hydrocarbons 1,000 4,095 24 Stationary AC: Leakage Reduction 2,056 6,151 27 Commercial Refrigeration: Leakage Reduction 5,639 11,790 32 Industrial Refrigeration: Leakage Reduction 1,301 13,091 72 Transport Refrigeration: Leakage Reduction on Trucks 1,347 14,438 97 Commercial Refrigeration: Natural Refrigerants 2,207 16,645 117 Mobile AC: Mandatory system checks 5,215 21,860* 959 * 85% of total identified abatement potential 1 Number given in this column sum up the different reduction potentials per abatement option III Table of contents Executive Summary 1 2 3 4 5 Introduction i 1 1.1 The SERPEC project, F-gases 1 1.2 Reference case -baselines 2 1.3 Abatement measures 2 1.4 Abatement costs 3 Emission reduction options and costs: HFCs 4 2.1 Emission of HFC-23 from HCFC-22 production 4 2.2 Production and use of foams 6 2.3 Refrigeration and air-conditioning 11 2.4 Emission reduction potential 23 2.5 Cost estimates 24 Emission reduction options and costs: PFCs 27 3.1 Primary aluminium production 27 3.2 Semiconductor manufacture 29 3.3 Other sources 32 Emission reduction options and costs: SF6 33 4.1 Manufacture and use of gas insulated switchgear 33 4.2 Magnesium production and casting 39 4.3 Other sources 41 Conclusions References 42 47 V Appendix 1 50 Appendix 2 58 1 1.1 Introduction The SERPEC project, F-gases The SERPEC project2 The aim of the project Sectoral Emission Reduction Potentials and Economic Costs for Climate Change (SERPEC) is to identify the potentials and social costs of technical control options to reduce greenhouse gas emissions across all European Union sectors and Member States in 2020 and 2030. The results are presented in so-called marginal abatement cost curves (MACCs) that provide a least-cost ranking of options across technologies and sectors in the EU. In general, MACCs provide strategic information for policy makers. All identified abatement options refer to technologies that are applied already today, or will become commercially viable in the near future. To identify their abatement potentials we estimated the maximum feasible implementation rates, often governed by the rate of turnover of existing technology stocks. Costs of mature technologies were assumed constant over time, whereas costs of relatively new technologies, e.g. wind turbines, were allowed to decrease over time due to economies of scale and technology learning. Fluorinated greenhouse gases In this SERPEC sectoral report, we determine the potentials and costs of control options of fluorinated greenhouse gases (F-gases). Hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6) are greenhouse gases with a high Global Warming Potential (GWP) ranging from 140 (HFC-152a) to 23,9003 (SF6). Due to their high GWP, emissions of these gases are regulated under the Kyoto-Protocol. In 2005 F-gas emissions in the EU27 in 2005 were some 70 Mt CO2-eq. and 1.4% of the overall greenhouse gas emissions in the EU. Main sources of F-gases include refrigeration and air conditioning equipment (HFCs), aluminium and semiconductor industry (PFCs) and the use of SF6 in electrical equipment. This study aims to provide a focused analysis of the main sources and respective abatement options of emissions of HFCs, PFCs and SF6 within the countries of the European Union. This report on fluorinated gases of this report has a limited scope. For more detailed insights, especially into the technical options available, further research into emission mitigation options and costs is clearly warranted. 2 Intro will be standard in each report GWPs used for this study are taken from IPCC 1996. They are also given in the Kyoto Protocol and adopted under the UNFCCC for the national inventories. The latest GWP values are those listed in IPCC AR4 that are somewhat higher. 3 1 1.2 Reference case -baselines Abatement potentials in this study will be defined relative to a so-called business as usual (BAU) baseline scenario. Typically, for fossil related CO2 emissions this baseline is a strong function of the estimated growth of activities like transport or industrial production. In the case of F-gases, the baseline development is dominated by the estimated future impact of environmental policies that are already in place. As such, the decreasing emissions in the baseline determined in this study, see Figure 3, is largely determined by the implementation of two EU-regulations on fluorinated gasses. Furthermore the baseline assumes that phased out HCFCs from the refrigeration sector will not be replaced by HFCs4. A more detailed description of the business as usual baseline is given in the next chapters. HFCs PFCs SF6 Aggregated F-gases 2000 2005 2010 90.0 80.0 70.0 [Mt CO2 eq.] 60.0 50.0 40.0 30.0 20.0 10.0 0.0 1990 1995 2015 2020 2025 2030 Figure 3 In dicative em issions development over the period 1990 to 2005 and business as usual baselines for the 2005 to 2030 period, as derived in this study (baseline assumptions do not take into account a full substitution of remaining HC FCs through HFCs). 1.3 Abatement measures For each of the F-gas sources, we identified measures to further reduce emissions relative to the base line shown in Figure 3. Measures refer either to further implementation of technologies that are already partly included in the baseline, or application of new abatement 4 this assumption was changed in the final phase of the project resulting in a increase of HFC emissions in the baseline, see chapter 5 2 techniques that are available on the market today. The implementation level of the abatement measures in 2020 and 2030 was estimated from literature analyses and expert interviews. Our data assumptions were shared with F-gas experts from different industries. Their responses are summarized in Appendix 2. 1.4 Abatement costs The textbox describes the standard costs calculation method that we applied in the SERPEC project. The specific costs of measures in € per t CO2-eq abated Abatement costs of measures are calculated from the sum of annualised investment costs and annual operating and maintenance costs divided by mean annual emission savings of the measures: specific costs = annualised capital costs + annual O & M Annual abated CO2 - eq. emissions Capital costs are annualised over the technical lifetime of the measure using a discount rate of 4%. This value is similar to government bond rates. The annual operation and maintenance costs are assumed to remain fixed over the depreciation period. The costs refer to the extra costs compared to the reference situation. In the case of socalled retrofit measures, the extra costs are the same as the overall costs of the measures, because the reference is ‘not taking the measure’. In the case of new stock, e.g. a new car or new production capacity, the extra costs are a case specific estimate (see main text). The overall costs calculation is also referred to as ‘social costs’. The method allows for comparison of the ‘bare’ costs of technologies, across measures, sectors and countries. A negative cost number indicates that from a social perspective there will be a net welfare gain from taking these measures; a positive cost number indicates a net welfare loss. Note, that the so-called ‘end-user’ perceives higher energy prices and discount rates. As a result the cost-curve from an end-users perspective looks different. 3 2 Emission reduction options and costs: HFCs Due to the phase out of ozone depleting substances (ODS) like chlorofluorocarbons (CFCs) under the Montreal Protocol, HFCs became a key substitute in several applications. High substitution rates by HFCs have been accomplished especially in the refrigeration and air conditioning sector and for blowing agents for the production of thermal insulation foams. Although HFCs do not damage the ozone layer like the CFCs that they replace, they are powerful greenhouse gases and for this reason included into the gases regulated under the Kyoto Protocol. In 2006 the European Regulation (EC) 842/2006 on Certain Fluorinated Greenhouse Gases entered into force. The principal objective of the regulation is to contain the fluids, and take a number of steps to reduce emissions of the fluorinated gases under the Kyoto Protocol. 2.1 Emission of HFC-23 from HCFC-22 production In the developing world, new HCFC-22 is still used as a refrigerant in several different applications, as a blend component in foam blowing. Globally HCFC-22 is used as a chemical feedstock for manufacturing synthetic polymers. During the manufacture of chlorodifluormethane (HCFC-22) trifluormethane (HFC-23) is generated as a by-product. The formation of HFC-23 is dependant upon the process conditions used in the manufacturing process and varies between 1.5 to 4% of the production of HCFC-22. Within the EU, emissions of HFC-23 were 65% lower in 2003 than in 1990, mainly due to the installation of destruction facilities. France, Germany, Greece, the Netherlands, Spain and UK remained the countries with continuing significant emissions in 2005. There are two manufacturers of HCFC-22 in the UK, both plants are equipped with a thermal afterburner (Baggot, 2007), three in Spain whereof one is equipped with a recovery system for further treatment (Ministerio, 2007), one in the Netherlands (with thermal afterburner installed) and 2 production plants in Germany with thermal afterburner (NIR Germany, 2007). According to a report by US EPA the last Greek production plant was closed in early 2006 (US EPA, 2006). 4 BAU emission data If available, HFC-23 emission data have been taken from the national inventory report submissions to the UNFCCC. German and British data from the production of HCFC-22 are reported aggregated with other emission sources due to confidentiality reasons. HFC emissions are here estimated to be 80% of the aggregated data reported to UNFCCC. Italian data was taken from a recent US EPA report (US EPA, 2006). Table 2 shows reported HFC23 emissions in 2005 and the BAU emission projection until 2030. The BAU emission projections already include an emission reduction of 50% compared to 2005 by 2015 (IPCC/TEAP, 2005). The decrease in the BAU Scenario is mainly a result of continuous process optimization, which leads to a decrease of the emission factor from 4% to 2%. Table 2 BAU HFC-23 emissions from the pr oduction of HCFC-22 Member state 1995 2005 2020 2030 [kt CO2 eq.] France 3,627 344 172 172 Germany 3,393 413 206 206 608 2,551 0 0 Italy 3,978 140 70 70 The Netherlands 4,914 196 98 98 Spain 3,978 334 167 167 UK 6,084 273 136 136 SUM 26,582 4,249 849 849 Greece Key Abatement option: Installation of a thermal afterburner in Spain Further reduction in emissions, beyond what is technically achievable through process optimisation, requires additional equipment. Thermal oxidation is an effective treatment in which the hydro fluorocarbon is incinerated in a furnace fuelled by, for example, natural gas. Waste gases from this process need to be treated. A recovery of fluoride is possible. The capital cost for a typical plant of 10,000 t / yr production capacity is €3 million with total annual operational costs of €200,000 / yr (Harnisch & Hendriks, 2000). There is little or no information on how the capital cost would change with scale but a facility to destroy a small amount of HFC-23 is likely to be very similar to one capable of destroying a much larger amount. This is because the size of the equipment is dictated by the size of the thermal incinerator which depends on the fuel-gas throughput that, in turn, depends on the maximum instantaneous rate of non-flammable HFC-23 or other halocarbon fed into it (McCulloch, 2005). As there is only one European HCFC-22 production plant without thermal afterburner left in Spain, the reduction potential is rather small. Assuming that the technology is 100% 5 efficient and operates for 90% of the on-line time of the HCFC-22 plant a reduction potential of 90% is achievable through the installation of such a technology at the plant in Spain. Therefore an emission reduction of annually 133 kt (t means metric tonnes) CO2 eq. can be achieved. This leads to specific abatement costs of approx. 2 € per t (t means metric tonnes) abated CO2 eq. Reduce downtime of thermal afterburners The current typical downtime for service and maintenance of a thermal afterburner is 10% of the on-line time an HCFC-22 plant. By minimizing downtime to 5% additional emissions can be saved. As no information on costs for improved downtime is available, annually €1 million are assumed for the European HCFC-22 plants. By reducing the downtime additional 25 kt CO2 eq. can be saved in 2020. This results in abatement costs of 40 € per t CO2 eq. Table 3 shows the HFC-23 emission development for the European HCFC-22 production under the implementation of the above described abatement measures for 2020 and 2030. As from 2020 on no further process optimization is achievable, the emissions in 2030 are estimated to be the same as in 2020 not considering any HCFC-22 plant closures. Table 3 Projected EU-27 HFC-23 emissions in 2020 and 2030, including additional measures Member state 2020 2030 [kt CO2 eq.] France 163 163 Germany 196 196 Greece 0 0 Italy 67 67 The Netherlands 102 102 Spain 33 33 UK 130 130 SUM 691 691 2.2 Production and use of foams The production of foams became a significant application of hydro fluorocarbons after the ban of chlorofluorocarbons under the Montreal Protocol. Hydro fluorocarbons are used as blowing agents in a solidifying matrix of a polymer. The main types of closed cell foams are extruded polystyrene (XPS) and polyurethane (PU) foams. Emissions of hydro fluorocarbons occur during the foam manufacturing process, during on-site foam application, while foams are in use and when foams are discarded. 6 This report gives aggregated emission data and reduction option and costs for the three main foam applications: Extruded Polystyrene Foam (XPS) XPS boardstock foam is a rigid foam with a fine closed-cell structure. It is used mainly for thermal insulation purposes in buildings. Its primary uses include basement walls, exterior walls and roofing. Its resistance to water absorption makes it a prime selection for low temperature applications. The cellular products consist almost entirely of polymer and blowing agent. In closed-cell insulation foams such as extruded polystyrene, the blowing agent has not only the function to make the gel foam, but also it contributes to the insulation value of the foam. PU One Component Foams (OCF) PU one-component foams are supplied in pressurized cans. After application the foam expands at room temperature and cures by reacting with moisture in the air. OCF are used for insulation around windows and doors, framing around pipes, cable holes, jointing insulating panels, and certain roof components, both in the do-it-yourself and commercial construction segment. The main HFCs used as propellants for OCF are HFC-134a and HFC-152a. Approx. 75% of the emissions occur immediately if the foam is used. The remaining 25% of the propellant leaks at latest after one year from the foam. Other PU Hard Foams This category includes PU foams for refrigerators and freezers. These PU foams can be found in various commercial and domestic refrigerators, vending machines, water heaters, picnic boxes and refrigerated containers. HFC blowing agents are to remain in the PU foam in order to increase the insulation performance and emissions therefore only occur at disposal of the foams. Furthermore rigid PU foams are widely used in the construction and transport sector. In the construction sector PU foams are widely used in so called construction panels, where a PU foam core is placed between rigid facings. Total EU-27 HFC emissions of the foam sector are calculated from the national inventory data reported to the UNFCCC and emissions data given in Ashford et al. (2004). From EU15 countries where emission data from foam blowing is available average per capita emissions where derived for the EU 15. Applying this factor on population data from EUROSTAT foam blowing emissions for the EU-15 member states were recalculated. Ashford et al. give emission estimates from foam blowing for the EU-27 of approx. 5,000 kt CO2 eq. By means of this data a second per capita emission factor for the EU-27 was derived and then applied to population data for the 12 new member states. This results into total estimated HFC emissions from foam blowing of 5,293 kt per CO2 eq. 7 The largest contributors to the overall HFC emissions from foam blowing are XPS boardstock foams followed by PU-one component foams (OCF). Other PU foams among others PU appliances, PU blocks, PU continuous / discontinuous panels and integral skin foams together contribute to another fourth of the overall HFC emissions from foams. Table 4 shows the estimated HFC emissions from foam blowing in 2005. Table 4 HFC emissions from f oam blowing in 20 05 Extruded polystyrene Foam PU one Component Foam (XPS) Other PU Total Hardfoams [kt CO2 eq.] 2,237 1,713 1,343 5,293 8 2.2.1 Abatement options for extruded polystyrene foam (XPS) In 2005 approx. 200,000 tonnes of XPS foams have been applied for insulation applications in roofs, walls and floors of private and public buildings. There are 23 main XPS production sites in the European Union (BSEF, 2007). It is assumed that already 50% of XPS foams are produced with CO2 as the blowing agent (CAN, 2004). Due to the lack of more detailed data this distribution is assumed for all European countries. Key abatement options CO2 as a sole blowing agent or in combination with co-blowing agents (ethanol, hydrocarbons, water) is the principally used alternative in XPS. This option completely eliminates emissions of the mostly used HFC-134a, where applied and hence, has a reduction efficiency of 100%. The market considers the loss in thermal efficiency of 10-15% over conventional technology, which has to be compensated by increased foam thickness. As a consequence of conversion product costs are here assumed to be affected through a production related density penalty of 5% of the foam and a thickness penalty of 10% due to changes of its insulation performance. It assumes that the thickness of insulation materials will be increased to arrive at equal thermal insulating properties. This leads to annual extra costs of €15 million. Assuming a market penetration of 90% in 2020 a large amount of HFC emissions can be abated. Nevertheless the conversion of remaining production lines still using HFCs as blowing agents requires additional investment. Estimated Conversion costs vary from €500,000 to €4,000,000 per business, not taking into account potential cost savings by replacing expensive HFCs through cheaper CO2 blends (US EPA, 2006) (CAN, 2004). By realizing the consequent conversion to CO2 blown XPS foam approx. 1,900 kt of CO2 eq. can be saved in 2020 compared to the BAU scenario at corresponding abatement const of 9 € per abated CO2 eq. 2.2.2 Abatement options for PU one component foam One Component Foam using HFCs as propellant is prohibited by Regulation (EC) No 842/2006 from July 2008 on. It is assumed that emissions started to decrease already from 2005 on in the BAU scenario as industry reacted quickly and switched to the use of hydrocarbons. In 2005 already 85% of the propellants used have been hydrocarbons such as propane and butane plus dimethyl ether in Europe (UNEP 2006a). As Regulation (EC) No 842/2006 still allows the use of HFCs when required to meet national safety standards emissions will not turn to zero but will remain marginal in the future. Therefore no further abatement measures are discussed here, although market for OCF is expected to grow 9 further, due to their ability to meet the growing demand for more and better thermal insulation. Table 5 shows the estimated BAU emission projections for the EU-27 in 2005, 2020 and 2030. Table 5 Estimated HFC emissions from PU OCF [kt CO2 eq.] BAU emissions under regulation (EC) No 842/2006 2.2.3 2005 2020 2030 1,713 27 0 Abatement options for other PU hardfoams Rigid polyurethane foams are the dominant insulation used in refrigerators and freezers. The foam must have adequate compressive and flexural strength to ensure the integrity of the product under extreme temperature conditions during shipping, as well as heavy loading during usage of the appliance. It must maintain both its insulation effectiveness and structural properties throughout the design life of the product. In 2002, 43 European companies produced about 177 kt of PU foam for refrigeration appliances (ISOPA, 2003). Another major emission source of rigid PU foams are continuous and discontinuous panels for the construction and transport sector. These panels have foam cores between rigid facings. They are mainly used for cold stores, doors and in factories, particularly where hygienic and controlled environments are required. In 2002, 60 European companies produced about 560 kt of PU foam for construction panels (ISOPA, 2003). Key abatement options For PU appliance foams the key abatement option is the replacement of HFCs through hydrocarbons. In domestic refrigerators and freezers, cyclopentane was introduced in Europe in 1993. The technology has been refined and optimized for cost-effectiveness and a blend of cyclopen-tane/isopentane is gaining prominence. Appliances based on the hydrocarbon blowing agents like HFC also frequently option attain the highest A+ energy efficiency category under the EU’s requirements. The technology provides good processing and other foam characteristics. The safety precautions for processing this flam-able blowing agent are also well established. Assuming a market penetration for this option of 90% in 2020 most of the HFC emissions from PU appliances can be abated. Furthermore it is estimated that 25% of all insulating foams in the polyurethane sector are currently formed with HC blowing agents (CAN, 2004). Conversion costs per company are estimated to €2 million plus an increase of production costs of €30 million per year. Conversion costs are taken from (Harnisch & Hendriks, 2000). This leads to a reduction potential of 242 kt of CO2 eq. at abatement costs of 146 € per t CO2 eq. 10 In rigid polyurethane insulating foams used for continuous and discontinuous panels, the use of cyclopentane and various isomers of pentane to replace fluorocarbons has gained wide acceptance. For building applications, normal pentane is the most widely used isomer. This option is technically applicable to all emissions from continuous and discontinuous panels. Assuming that a market penetration of 90% can be reached in 2020 a reduction potential of 1,000 kt of CO2 eq. is achievable. Conversion costs per company are estimated at €0.5 million. Additional costs through increased production cost are €21 million annually. This leads to abatement costs of 24 € per t abated CO2 equivalent. However as a lot of producers of continuous and discontinuous panels are small and medium sized companies with a low throughput of foams, conversion cost are comparatively and might not be achievable for them. Table 6 shows the key abatement options for different foam sectors and applications and its costs. Table 6 A batement cost estimates for emission reduction options for the 2020 baseline Foam type Abatement Option Abated Specific emissions abatement cost [kt CO2 eq.] [€/t CO2 eq.] XPS Boardstock CO2 1,900 9 PU Cont. Panels Hydrocarbons 1,000 24 PU Appliances. Hydrocarbons 242 146 2.3 Refrigeration and air-conditioning As a consequence of the phase-out of CFCs and HCFCs under the Montreal Protocol HFCs became the most important substitute refrigerant in the refrigeration and air conditioning sector. Without complex system modifications HFCs generally offer convenient solutions for almost all existing refrigeration systems. Because of their high specific global warming potential and their widespread use in domestic, commercial, transport, industrial refrigeration as well as mobile and stationary air conditioning, the HFCs make a significant contribution to global greenhouse gas emissions. In 2005 emissions from the refrigeration and air conditioning sector are estimated by this study to have contributed 43.1 million t of CO2 eq to EU-27 overall emissions. The two most relevant emitters are mobile air conditioning MAC systems (20.9 million t CO2 eq.), followed by emissions from commercial refrigeration appliances (14.5 million t CO2 eq.). HFC emissions from transport refrigeration (2.8 million t CO2 eq.), industrial refrigeration (2.2 million t CO2 eq.) and stationary air conditioning (2.6 million t CO2 eq.) all together 11 contributed further 7.6 million t CO2 eq. Emissions from domestic refrigeration are only minor source, since a large amount of domestic appliances already uses hydrocarbons, charges are low and use phase leakage rates are low. Figure 4 shows the contributions from the main emission sources from refrigeration and air conditioning. Domestic 2% Commercial 34% Mobile AC 46% Transport 7% Stationary AC 6% Industry 5% Figure 4 C ontributions to 2005 HFC emissions from the different refrigeration and air con ditioning applications Table 7 shows detailed emission data of the refrigeration and air conditioning sector for each member state in 2005. The sources of data for EU-15 member state emissions are the national inventory submissions to the UNFCCC. However inventory data for the consumption of halocarbons and SF6 for some EU-15 countries are rather poor. Therefore an average per capita value of 0.10 kt CO2 eq. was derived for the EU-15 member states. In 2005 HFC emissions from refrigeration and air conditioning in the EU-15 was then recalculated by applying the average per capita emission factor to 2005 population data taken from EUROSTAT. Except for Poland and Latvia no national inventory data for the consumption of halocarbons and SF6 for category 2.F are available for new member states. Therefore an average per capita emission factor, half as high as the EU-15 emission factor, is assumed for new member states. HFC emissions from refrigeration and air conditioning are assigned to new member states by multiplying population data from EUROSTAT with an average per capita emission factor of 0.05 kt CO2 equivalent. The overall HFC emissions from the refrigeration and air conditioning sector are then distributed to the different subsectors by using an average sector share derived from (Ashford et al., 2004). 12 Table 7 EU-27 HFC Emissions fr om refri geration and air con ditioning in 2005 [kt CO2eq.] Domestic Refr. Commercial Refr. Transport Refr. Industrial Refr. Stationary AC Mobile AC Total Germany 161.1 2,711.0 523.7 402.8 483.4 3,774.5 8,057 France 123.0 2,069.5 399.7 307.5 369.0 2,881.3 6,150 UK 118.1 1,987.2 383.9 295.3 354.3 2,766.8 5,906 Italy 115.0 1,934.6 373.7 287.5 344.9 2,693.5 5,749 Greece 21.7 365.2 70.5 54.3 65.1 508.5 1,085 Spain 85.7 1,441.1 278.4 214.1 257.0 2,006.4 4,283 Belgium 20.5 345.5 66.7 51.3 61.6 481.0 1,027 Netherlands 31.9 536.3 103.6 79.7 95.6 746.7 1,594 Finland 10.4 174.4 33.7 25.9 31.1 242.8 518 Sweden 17.6 296.1 57.2 44.0 52.8 412.3 880 Denmark 10.6 177.7 34.3 26.4 31.7 247.4 528 Austria 16.2 273.1 52.7 40.6 48.7 380.2 812 Portugal 20.7 348.8 67.4 51.8 62.2 485.6 1,036 Ireland 8.2 138.2 26.7 20.5 24.6 192.4 411 Luxembourg 1.0 16.5 3.2 2.4 2.9 22.9 49 Poland 37.1 624.4 120.6 92.8 111.3 869.3 1,856 Latvia 2.2 37.6 7.3 5.6 6.7 52.3 112 Bulgaria 7.5 125.9 24.3 18.7 22.4 175.2 374 Cyprus 0.8 13.1 2.5 1.9 2.3 18.2 39 Czech Republic 10.0 168.4 32.5 25.0 30.0 234.4 500 Estonia 1.3 21.2 4.1 3.2 3.8 29.6 63 Hungary 9.8 165.1 31.9 24.5 29.4 229.8 491 Lithuania 3.3 55.6 10.7 8.3 9.9 77.4 165 Malta 0.4 6.5 1.3 1.0 1.2 9.1 19 Romania 21.0 353.1 68.2 52.5 63.0 491.5 1,049 Slovakia 5.2 88.3 17.0 13.1 15.7 122.9 262 Slovenia 1.9 32.7 6.3 4.9 5.8 45.5 97 EU-27 862 14,507 2,802 2,156 2,587 20,197 43,110 13 2.3.1 Emission projections for 2020 and 2030 This paragraph shows results on future emission estimates for the refrigeration and air conditioning sector. In the business-as-usual scenario (BAU) the development of emissions until 2030 was estimated with regard to policies and measures already in place and the estimated future economic growth in the EU-27. Table 8 EU- 27 BAU HFC emission estimates of the refrigerati on and A/ C sector in 2020 and 2030 Domestic Refr. Commercial Refr. Transport Refr. Industrial Refr. Stationary AC Mobile AC Total 2020 1,160 12,892 4,011 2,602 4,592 10,430 35,689 2030 1,415 11,660 4,011 2,968 4,592 0 24,645 The following chapters describe the key abatement options per subsector and the resulting reduction potential for each subsector. 2.3.2 Domestic refrigeration The contribution of HFC emissions from domestic refrigerators and freezers in Europe is with 2% of the entire refrigeration emissions only marginal. In Germany for example practically all new refrigerators are already equipped with natural refrigerants (Isobutane (HC-600a)/propane (HC-290)) and the remaining bank of HFC-134a in domestic refrigeration is assumed to be only 1% of the overall refrigerant bank from domestic refrigeration (Schwarz & Wartmann, 2005). For other EU-15 member states the situation is somewhat different as well as HFC-emissions in new member states in the EU-27 might be higher. A bank share of 60% for domestic refrigerators with hydrocarbons compared to 40% still running on HFC-134a is assumed (see below), while the share of new refrigerators coming into the market that are running on hydrocarbons is above 90 % (EUP Lot 13, 2007). Key abatement option: Improve Recovery efficiency As the majority of new produced refrigerators in the EU-27 are running with isobutane (HC600a) or propane (HC-290) main efforts should be put on the improvement of recovery efficiency for old appliances, which still contain HFC-134a. Improved Refrigerant recovery to prevent emissions at end-of-life and during service is required especially in new-entrant member states. 14 According to Article 5 of Directive 2002/96/EC on waste electrical and electronic equipment (WEEE) member states shall ensure that that all WEEE collected is transported to authorised treatment facilities. Since the Directive is implemented for some years now, we assume that sufficient recycling capacity is available to cover Europe’s disposed fridges. However, a vast amount of old refrigerators and freezers does not arrive at appropriate recycling facilities and is disposed elsewhere. Assuming that HFC emissions from domestic refrigeration occur mostly because of inappropriate disposal of the remaining refrigerators still using HFC-134a, a significant reduction potential exists. Based on estimated service refrigerant demand data for 2004, still 40% of domestic refrigerators used in the EU-27 are operating with HFC-134a as refrigerant (RTOC, 2007). New refrigerators on the market however, increasingly contain hydrocarbons as a refrigerant. This trend is illustrated by European new unit production numbers; in 1996 still 14.4 million of 20.5 million produced units used HFC-134a, in 2004 only 5.2 million of 24.2 million new produced units used HFC-134a (RTOC, 2007). As a result the emission bank will shift to hydrocarbons in the coming years. With a typical 20-year lifespan, each year 5% of refrigerators will be retired and disposed. This results in approx. 10 million refrigerators that have to be disposed every year. We further assumed that from 2013 on no new refrigerators using FHC-134a are produced in the European Union, which leads to a decreasing base of HFC-134a refrigerators. By improving the collection of discarded refrigerators and freezers this leads to an emission reduction of 80% until 2020, if all refrigerators are recycled properly (928 kt CO2-eq.). Costs for the appropriate recycling are considered at €15 per refrigerator (ZVEI, 2006).This leads to relatively high abatement costs of 162 € per tonne abated CO2 eq. in 2020 and 124 € per tonne abated CO2 eq. in 2030. 15 2.3.3 Commerci al refrigerati on Commercial refrigeration is the sector with the second largest refrigerant emissions. Emissions occur due to leakages at the fittings and valves of the often complex piping systems, during maintenance and as a consequence of external and internal disruptions of the containment but also during installation and disposal of the systems. Commercial refrigeration is composed of three main categories of equipment: stand-alone equipment, condensing units, and centralised systems. Stand-alone equipment consists of systems where all the components are integrated. Condensing units, comprising the second group of commercial refrigeration equipment, are composed of one (or two) compressor(s), one condenser, and one receiver assembled into the condensing unit which is located external to sales area. The cooling equipment consists of one or more display case(s) in the sales area and/or a small cold room. Condensing units are typically installed in specialty shops such as bakeries, butcher shops, and convenience stores. In a number of small supermarkets, one can find a large number (up to 20) of condensing units installed side-by-side in a single machinery room. Centralised systems employ racks of compressors installed in a machinery room. A number of possible designs exist. Two main design options are used: direct and indirect systems. Following CFC phase out for new equipment and servicing in Europe, commercial refrigeration systems tended towards the use of HCFC-22 and HCFC blends. Since 2000, European Regulation 2037/2000 has prohibited HCFCs in all type of new refrigerating equipment. As a result, HFC-404A, HFC-507A and HFC-134a are now the most commonly used refrigerants for larger capacity low- and medium-temperature systems, such as condensing units and all types of centralized systems. For stand-alone systems, HFC- 134a is used for medium-temperature applications, while both HFC-134a and HFC-404A are used for low-temperature applications. Even though the phase-out of HCFCs in existing equipment is still ongoing, total European HFC emissions from commercial refrigeration are estimated to amount to already 14.5 million tonnes CO2 equivalent in 2005. This is a share of 34% of the overall HFC emissions from the refrigeration and air conditioning sector. 16 Key abatement options: Leakage Reduction The measures implied through the European Regulation (EC) No 842/2006 “on certain fluorinated greenhouse gases, focus on emission reductions through avoidance of leakages by improved maintenance”. This so called F-Gas Regulation requires at least annual inspections for installations with over 3kg of refrigerant charge, inspections at least twice a year for installations with over 30kg of charge and quarterly inspections as well as the installation of a refrigerant leak detector are required for systems over 300kg. The inspections are to be carried out only by specially trained and certified maintenance personnel. Additionally logbooks are required to register detected leakages, refilled refrigerant quantity as well as endof-life recovery, recycling or destruction of the refrigerant (Regulation (EC) No 842/2006). The BAU emission estimates already imply reduced emissions through the F-Gas regulation. However, a recent study regarding emissions of commercial refrigeration systems in Germany showed, that emission under the F-Gas regulation are still high (approx. 3 million t CO2 equivalent in Germany) (Rhiemeier et al. 2008). Further reductions can be achieved through improved containment measures such as more regular leakage checks and improved system design. Depending on the amount of filled refrigerant and the system size, additional annual costs for containment through improved maintenance are estimated to €1,000-3,000 per installation. The reduction potential in 2020 is estimated at 45% emission reduction, in 2030 at 40% (4,406 kt CO2 eq.). Natural refrigerants In recent years systems using hydrocarbons, ammonia and CO2 of different refrigerating capacities have been installed in various European countries. In most standard situations, these so called natural refrigerants provide an environmentally friendly solution and meet nearly all requirements for commercial refrigeration systems. Although there is already a wide range of technologies available to substitute HFCs in commercial refrigeration, these are not yet standard in commercial refrigeration and investment costs are still rather high. But investment cost as well as annual operation costs might decrease in the coming years due to increasing acceptance by stakeholders and end-users. The effect of increases or decreases of the energy consumption on CO2 emissions have been estimated but not been included into the cost estimates. Depending on the size and refrigerant capacity, additional investment costs for new systems using natural refrigerants vary between €15,000 for systems used in a typical discount markets and €150,000 for complex central multiplex systems used in super- or hypermarkets (Rhiemeier et. al., 2008). Annually mean replacement quota of commercial refrigeration systems is 8% of the installed base (Rhiemeier et. al, 2008). Assuming that from 2010 on 50% of new installed systems are running with natural refrigerants and from 2020 on all new installed systems are only 17 operating with natural refrigerants, a reduction potential of 30% compared to the BAU emissions is estimated for 2020 and approximately 70% by 2030 (2,207 kt CO2-eq.… and 5,061 kt CO2-eq. respectively). 2.3.4 Transport refrigeration Transport Refrigeration includes transport of chilled or frozen products by reefer ships, intermodal refrigerated containers, refrigerated railcars and road transport including trailers, diesel trucks and small trucks and vans. It also includes use of refrigeration and air conditioning on merchant ships. Approximately 3% of European road transport is refrigerated. The European refrigerated road transport fleet consists of approx. 650.000 refrigerated vehicles. The refrigerant bank for road transport in Europe consists of 3,100 t of HFCs. Leakage rates are 25% on average, which means that up to 775 t of HFC refrigerant per annum are being emitted by refrigerated road transport in Europe (UNEP, 2006b).This results in GWP weighted emissions of annually 2.3 million t of CO2 equivalent from refrigerated road transport. According to a recent study by Schwarz & Rhiemeier (2007), the EU-27 transport emissions of the maritime and railway sector accounted 447.0 kt of CO2 equivalent in 2006. In total the HFC emissions from refrigerated transport add up to 2.8 million t of CO2 equivalent or 7% of the overall HFC emissions from the refrigeration and air conditioning sector in 2010. Key abatement options: Road Transport - Leakage Reduction All transport refrigeration systems have to be compact, lightweight and robust to withstand movement and acceleration during transportation. Despite these efforts, leaks within the refrigeration system occur because of vibrations, sudden shocks etc. Transport refrigeration systems are only covered to a very small extent by Regulation (EC) No 842/2006 ( Art 4(3), Art 7) and further measures to improve leak tightness have to be compiled. An alternative approach to improving systems to reduce leaks might be to improve operating conditions to reduce wear, likeliness of ruptures and refrigerant losses during service. Regularly system checks can detect possible leaks early and reduce emissions of transport cooling systems for truck transport. To achieve that, mandatory system checks should be implemented at least on an annually basis. We assumed that halving the current emission factor of 25% is achievable, which would lead to a reduction of 50%. Costs for a thorough system check are assumed to be at €50 per vehicle, assuming an average hourly service rate of €50. This leads to abatement costs of 32 € per tonne abated CO2 eq. in 2020 and 2030. 18 Maritime Transport – Leakage Reduction From a technical point of view, leakage rates could substantially be lowered, even in the rough environment of sea borne transport, if the maintenance of air conditioning/refrigeration equipment would only meet elementary requirements, and if at least one of the crewmembers would be trained in basic techniques. Today, however, trained people on board of merchant ships are rare. Regular inspections by external service experts and the use of leakage detectors, which are increasingly used, have not spread throughout the merchant fleets yet. With these additional measures a reduction potential of 40% can be achieved for HFC emissions from the refrigerated sea transport. This corresponds to a reduction potential of 12% compared to the 2020 and 2030 overall HFC emissions from the refrigerated transport sector. Annual extra costs are estimated to €20 million. This results in estimated abatement costs of 40 € per t abated CO2 eq. in 2020 and 2030. 2.3.5 Industrial refrigeration Main industrial refrigeration applications are food processing, cold storage, process refrigeration, liquefaction of gases and industrial heat pumps and heat recovery. Most of the industrial refrigerating systems in industrial refrigeration use the vapour compression cycle. The main refrigerant in this sector, and with an increased share, is ammonia. In addition, HFCs –that replace CFCs and HCFCs- are applied. In these systems annual average leakage rates of typically 8-10% are reported (UNEP, 2006b). Based on the sector share estimates from above, HFC emissions from industrial refrigeration systems have contributed 5% or approximately 2.2 million t CO2 equivalent to the 2005 overall emissions of the refrigeration and air-conditioning sector in the EU-27. Key abatement options: Leakage Reduction Industrial Refrigeration systems are also covered by Regulation (EC) 842/2006. As industrial appliances generally require high refrigerant loads above 300kg, they have to be equipped with leak detectors and operators are obliged to carry out quarterly service inspections. We assume a reduction potential of 50% that can be achieved through further containment measures. Additional measures could include the design of more leak tight systems, monthly system inspections and improved recycling efficiency. In absence of more recent cost data estimates for this application class were taken from Harnisch & Hendriks (2000). Natural Refrigerants - Ammonia (R717) and Carbon dioxide (CO2) R-717 has been used as a refrigerant for industrial processes since 1872 and is the preferred choice for large installations in most parts of the world. 19 CO2 systems can be used for industrial refrigeration applications with evaporation temperatures down to –52°C and condensing temperatures up to 5°C. CO2 is also increasingly being used in the low stage of cascade systems for industrial refrigeration. CO2 is also commonly used as a secondary refrigerant. The design requires the same pressure of 25 bar for the secondary refrigerant systems and for the CO2 used as the refrigerant, except for ice rinks and some other limited systems which are designed for 40 bar (IPCC/TEAP, 2005). Through an increased use of natural refrigerants in industrial refrigeration systems a decoupling of the emissions from of the annual growth in the industrial refrigeration sector is estimated. Assuming that in 2010 25%, in 2020 50% and in 2030 80% of all new systems installed are running on natural refrigerants a reduction potential of 7% compared to 2020 BAU emissions and 15% compared to 2030 emissions is estimated. Abatement cost estimates were taken from Amann et al. (2008). They amount to 34 € per tonne abated CO2 eq. in 2020 and 2030. 2.3.6 Stationary air conditioning The vast majority of air conditioners use the vapour-compression cycle technology, and generally fall into four distinct categories: • • • • window-mounted, portable and through-the-wall air conditioners; non-ducted or duct-free split residential and commercial air conditioners; ducted residential split and single package air conditioners; ducted commercial split and packaged air conditioners. Main refrigerants used are HFC-407C, R134a and R410. Emissions occur during installation, operating time and at system disposal. Stationary air conditioning emissions are estimated to contribute 6% or approximately 2.6 million t CO2 equivalent to the 2005 overall emissions of the refrigeration and air-conditioning sector in EU-27. Under the BAU scenario emissions from stationary air conditioning are estimated to increase until 2020 to 4.6 million t CO2 eq. and than remain constant until 2030 (see Table 8). 20 Key abatement options: Leakage Reduction Unlike non-ducted and ducted split air conditioners, window-mounted, portable and throughthe-wall air conditioners are mostly not covered by containment measures of Regulation (EC) 842/2006 due to small refrigerant loads and factory-sealed refrigerant cycles. For air conditioners working on the vapour-compression cycle, there are several practical ways to promote refrigerant conservation and to reduce refrigerant emissions such as: • • • • • • Improved design and installation of systems to reduce leakage and consequently increase refrigerant containment, Design to minimize refrigerant charge quantities in systems, Adoption of best practices for installation, maintenance and repairing of equipment, including leak detection and repair, Refrigerant recovery during servicing, Recycling and reclaiming of recovered refrigerant and Refrigerant recovery at equipment decommissioning. Through strict application of further containment measures an improved refrigerant recovery at equipment decommissioning of 30% is estimated until 2020 in EU-15 member states.. Additionally the quantity of filled refrigerant can be reduced by 20% until 2020. For the new entrant member states refrigerant recovery efficiency could improve by 50% until 2020 compared to the BAU scenario. Overall, this leads to a reduction potential of 44% compared with BAU emissions in 2020 and 52% compared with BAU emissions in 2030 (1,301 kt CO2 eq. and 1,484 kt CO2 eq). Abatement costs per t CO2 eq. lay at €72 in 2020 and at €63. Costs for the implementation of further containment measures are based on abatement costs given in the Special Report on Safeguarding the Ozone Layer and the Global Climate System (IPCC/TEAP, 2005). 2.3.7 Mobile air conditioning Mobile air conditioning (MAC) is one of the major sources of fluorocarbon emissions due to rather large specific leakage rates and wide-spread application. Air conditioners in new cars are generally filled with HFC-134a since about 1993. Mobile air conditioning emissions are estimated to have contributed 47% or approximately 20 million t CO2 equivalent to the 2005 overall emissions of the refrigeration and air-conditioning sector in Europe. The European Union in 2006 issued Directive 2006/40/EC relating to emissions from airconditioning systems in motor vehicles. This MAC directive bans the use of air-conditioning 21 systems containing refrigerants with a global warming potential (GWP) higher than 150. The date of entry into force of the Directive is 2011 for new car models and 2017 for all new cars. The Directive states that alternatives to HFC-134a are expected to be available in the near future (Directive 2006/40/EC). BAU emissions projections in this study include the impact of the MAC Directive from 2011 onwards. This is why emissions are estimated to decrease from 2011 on to a level of approx. 10.4 million t CO2 eq. until 2020. As a result of the MAC Directive it is further estimated that emissions from mobile air conditioning will no longer play a roll in 2030 (see Table 8). The German Automotive Industry Association (VDA) has recently chosen CO2 (R744) as the replacement to the current refrigerant, HFC 134a, in mobile air conditioning. Key Abatement Options Mandatory leakage checks for MAC systems still using HFC-134a Since low GWP refrigerants will only be mandatory from 2011, there is still a large amount of banked HFC-134a in Europe’s passenger vehicle fleet. Average annual emission rate of MAC systems is approx. 8%, which leads to large refrigerant losses after 5-7 years of at least 50% of the initial refrigerant charge (Schwarz, 2001). With a refrigerant charge less than 50% of the initial amount, MAC systems are not working properly any more and have to be maintained by special service personnel. This leads Europe-wide to approximately 13 million air conditioned cars that have to be repaired each year. To minimize annual refrigerant losses and avoid system failures mandatory system inspections would be required at least every two years. During these inspections potential leakages could be identified and prevented in an early stage. The inspections could be combined with the normal vehicle inspections to reduce costs. The costs of such inspections would be rather high: Currently approx. 97 million air conditioned cars are running in the EU-27 (Eurostat, 2006; IPCC/TEAP, 2005; own calculations). Assuming biennial system checks, almost 50 million cars would have to be inspected Europe-wide each year. Assuming extra costs of 100 € per system check (assuming a mix of dedicated additional and supplementary activities in conjunction to existing inspections), annual extra cost of €5 billion have to be spent annually. The reduction potential is estimated to 50% (5,215 kt CO2 eq.). This results in abatement costs of 958 € per t abated CO2 eq. in 2020. 22 2.4 E mi ssi on reduction potenti al This paragraph summarizes the emission reduction potential compared to the BAU scenario of the measures mentioned above. Table 9 shows the BAU emission projections for the different refrigeration and air conditioning subsectors. Table 9 BAU HFC emissions from refrigeration and air conditioning in 2005, 2020 and 2030 2005 2020 2030 [kt CO2 eq.] Domestic Refr. 862 1,160 1,415 Commercial Refr. 14,507 12,892 11,660 Transport Refr. 2,802 4,011 4,011 Industrial Refr. 2,156 2,602 2,968 Stationary A/C 2,587 4,592 4,592 Mobile A/C 20,197 10,430 0 Sum 43,110 35,689 24,645 The different abatement options for the refrigeration and air conditioning sector show a significant reduction potential for several sub-sectors. Table 10 summarizes the Reduction potential of each measure. Table 10 Emissions reduction potential per abatement option Measures: 2020 2030 I. Mobile AC - Mandatory system checks 50% - II. Stationary AC – Leakage Reduction 45% 52% IIIa. Commercial Refrigeration - Leakage Reduction 44% 38% IIIb. Commercial Refrigeration - Natural Refrigerants 30% 70% IVa. Transport Refrigeration - Leakage Reduction on Ships 37% 37% IVb. Transport Refrigeration - Leakage Reduction on Trucks 50% 50% Va. Industrial Refrigeration - Natural Refrigerants. 7% 15% Vb. Industrial Refrigeration - Leakage Reduction 50% 50% VI. Domestic Refrigeration - Improve recycling efficiency 80% 86% Figure 5 illustrates the emission development in 2020 and 2030 with implementation of all reduction measures compared to the BAU scenario. 23 2030 Unabated Emissios under BAU Scenario Additional measures 2020 Unabated Emissios under BAU Scenario Additional measures 2005 2005 Baseline 0 10,000 20,000 30,000 40,000 50,000 [kt CO2 eq.] Figure 5 BAU emission s deployment from re f ri geration and A/C compared t o emission deployment with additional reduction measures 2.5 Cost estimates This paragraph reports the results of the abatement cost assessment. The emission reductions are calculated on an annual basis. All cost data of this report are calculated as 2005 Euros. Abatement costs were calculated from the sum of annualised investment costs and annual operating and maintenance costs divided by mean annual emission savings. Investment costs were annualized over their lifetime with a discount rate of 4%. Table 11 and Table 12 show the estimated abatement costs per reduction option and the achievable emission reduction per reduction measure. Figure 6and Figure 7 display the respective cost-abatement curve of emission reduction units in 2020 and 2030. A least cost policy would attempt to start with low cost options and continue up to certain maximum threshold value. As a result in 2020 approx. 10 million t CO2 eq. can be abated at abatement costs under 100 € per t CO2 eq. In 2030 the abatement potential at costs under €100 is estimated to approx. 15 million t CO2 eq. 24 Table 11 Abatement cost estimates for emission reduction options for the 2020 baseline Cumulative Measure Abated emissions sum of Reductions Specific abatement cost [kt CO2 eq.] [kt CO2 eq.] [€/t CO2 eq.] II. Stat. AC – Leakage Reduction 2,056 2,056 27 IIIa. COM - Leakage Reduction 5,639 7,695 32 174 7,869 34 481 8,350 40 1,301 9,651 72 1,347 10,998 97 2,207 13,205 117 928 14,133 162 5,215 19,348 959 Va. Industry Natural Refrigerants. IVa. TRANS Leakage Reduction on Ships Vb. Industry - Leakage Reduction IVb. TRANS Leakage Reduction on Trucks IIIb. COM - Natural Refrigerants VI. Domestic – Improve recycling efficiency I. MAC - Mandatory system checks Table 12 Abatement cost estimates for emission reduction options for the 2030 baseline Cumulative Measure Abated emissions sum of Reductions Specific abatement cost [kt CO2 eq.] [kt CO2 eq.] [€/t CO2 eq.] II. Stat. AC – Leakage Reduction 2,369 2,369 24 IIIa. COM - Leakage Reduction 4,406 6,775 32 441 7,216 34 481 7,697 40 5,061 12,758 51 1,484 14,242 63 1,347 15,589 97 1,210 16,799 124 - - - Va. Industry Natural Refrigerants. IVa. TRANS Leakage Reduction on Ships Vb. Industry - Leakage Reduction IVb. TRANS Leakage Reduction on Trucks IIIb. COM - Natural Refrigerants VI. Domestic – Improve recycling efficiency I. MAC - Mandatory system checks 25 Cost Curve for Reduction Options in the Refrigeration & Air conditioning sector of the EU-27 in 2020 1,000 Abatement Cost 2020 Abatement cost estimates [€/t CO2 eq.] 900 I. MAC - Mandatory system checks II. Stat. AC – Leakage Reduction IIIa. COM - Leakage Reduction IIIb. COM - Natural Refrigerants IVa. TRANS Leakage Reduction on Ships IVb. TRANS Leakage Reduction on Trucks Va. Industry Natural Refrigerants. Vb. Industry - Leakage Reduction VI. Domestic – Improve recycling efficiency I. 800 700 600 500 400 300 VI. 200 Va. IVa. IIIb. 100 II. Vb. IIIa. IVb. 0 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 22,500 Emission Reduction [kt CO2 eq.] Figure 6 Emission reduction cost curve in 2020 Cost Curve for Reduction Options in the Refrigeration & Air conditioning sector of the EU-27 in 2030 Abatement cost estimates [€/t CO2 eq.] 300 Abatement Cost 2030 I. MAC - Mandatory system checks II. Stat. AC – Leakage Reduction IIIa. COM - Leakage Reduction IIIb. COM - Natural Refrigerants IVa. TRANS Leakage Reduction on Ships IVb. TRANS Leakage Reduction on Trucks Va. Industry Natural Refrigerants. Vb. Industry - Leakage Reduction VI. Domestic – Improve recycling efficiency 200 VI. IVa. 100 Va. Vb. IIIb. IIIa. II. IVb. 0 0 2,500 5,000 7,500 10,000 12,500 15,000 17,500 20,000 Emission Reduction [kt CO2 eq.] Figure 7 Emission reduction cost curve in 2030 26 3 Emission reduction options and costs: PFCs The group of perfluorocarbons (PFCs) comprises a number of substances including CF4, C2F6, C3F8 and c-C4F8. Emissions arise from a range of sources including the production of aluminium and semiconductors. 3.1 Pri mary aluminium production Emissions of perfluorocarbons from primary aluminium productions occur during “anode effects" that occur when the alumina concentration in the cryolite bath is reduced. The carbon anode then reacts directly with the fluoride in the electrolyte. Measures to reduce the frequency and duration of anode effects not only reduce PFC emissions but also benefit the producer by improving energy and process efficiency. Particularly for financial reasons the aluminium industry made big efforts of reducing the anode effect and phasing out older inefficient technologies in the recent past. Appendix 1 (Table 20) shows the number of aluminium smelters and their applied technology type in the EU-27 (EU-15) countries in 1990 and 2005. From Table 20 becomes also apparent that in 2005 most of the operating smelters in the EU-27 used the Point Feed Prebake (PFPB) Technology, which has the lowest emissions per ton of produced aluminium. In addition a lot of older inefficient smelters closed between 1990 and 2005. The overall emission reductions achieved by the European aluminium industry are illustrated in Figure 8. In the past 15 years the industry achieved a reduction by more than 80%. 27 16,000 14,000 [kt CO2 eq.] 12,000 10,000 8,000 6,000 4,000 2,000 20 05 20 04 20 03 20 02 20 01 20 00 19 99 19 98 19 97 19 96 19 95 19 94 19 93 19 92 19 91 19 90 0 Figure 8 1990-2005 PFC emissions fr om aluminium pr oduction in the EU-15 5 It is not expected that new smelters will be constructed in the baseline scenario. More likely older smelters will be de-commissioned. For the baseline scenario it is assumed that production numbers and emissions remain constant. 5 Annual national GHG inventory submissions to the UNFCCC secretariat of 2007 28 Key Abatement Options Switch in technology Future efforts in the European aluminium industry have to focus on conversion of the still existing less efficient smelters using SWPB and VSS technology. To take into account economic gains from higher energy efficiency and reduced labour costs from retrofitting and conversion default cost reductions of 75 € per t aluminium were applied for SWPB. According to information provided by the European Aluminium Association no significant gain in operating costs can be expected from conversion from VSS to PFPB. By conversion of the last European smelters that are still using SWPB and VSS technology a total PFC emission reduction of 661 kt CO2 eq. can be achieved. The reduction potential is based on the assumption, that through conversion to PFBS technology emissions of plants that are still using VSS technology decrease by the factor 10 and emissions from plants with SWPB technology decrease by the factor 27 (see emissions factors in Table 20). Assuming conversion costs of 500 € per t aluminium (production capacity) for the conversion from SWPB to SFPB and €100 for the conversion from VSS to PFPB total invest cost of approx. €216 million occur (Harnisch & Hendriks, 2000). This leads to specific abatement cost of 6.50 € per t abated CO2 eq. for the conversion of the remaining smelters using VSS technology and 109 € per t abated CO2 eq. for the conversion of smelters that still apply SWPB technology. Table 13 shows the abatement potential and its respective cost for the European Aluminium industry. Table 13 Emissions reduction options and cost f or the 2020 baseline Measure Specific abatement Abated emissions 6 cost [kt CO2 eq.] [€/t CO2 eq.] Conversion: VSS to PFBS 514 6.5 Conversion: SWPB to PFBS 147 109 3.2 Semiconductor manufacture European semiconductor industry contributed in 2003 2,090 kt CO2 equivalents to the overall European GHG emissions (ESIA, 2006). At an average growth rate of annually 2% for the European semiconductor industry emissions in 2005 added up to 2,174 kt of CO2 eq. In the 6 Own calculation based on the assumptions that remaining plants using VSS and SWPB technology in Spain, the Netherlands, Sweden, Poland and Slovenia change over to PFPS technology. 29 baseline scenario a growth path at rate of 2% / yr is estimated (SIA, 2008)7. The World Semiconductor Council, which comprises most large semiconductor manufacturers, has agreed in a voluntary agreement to reduce its absolute global emissions of PFCs in 2010 by 10% relative to the 1995 baseline. This agreement was included into the baseline projection of this study as in 2005 already significant efforts have been made by the industry. To produce semiconductor devices, the semiconductor industry requires gaseous fluorinated compounds, silanes, doping and other inorganic gases. The PFCs used in semiconductor manufacturing process are: hexafluoroethane (C2F6), octofluoropropane (C3F8), tetrafluoromethane (CF4) and octofluorocyclobutane (c-C4F8). Essentially, these gases are used in a number of different process steps: 1. PFCs are used as etching gases for plasma etching. The gases etch the submicron patterns on metal and dielectric layers of advanced integrated circuits. 2. The fluorinated compounds are also used to accurately perform a rapid chemical cleaning of Chemical Vapour Deposition (CVD) tool chambers. When the silicon and silicon based dielectric layers are being applied, a deposit remains in the CVD chamber. To ensure that the wafers do not become contaminated by these deposits, the chambers are cleaned at defined intervals, avoiding frequent mechanical wet cleanings. 7 Average annual growth until 2030 is estimated at only 2% because of the cyclical semiconductor market. For the mid term until 2030 high rates of 10% or higher are therefore expected only in some years, while in other years growth is very small, which leads to an estimated average growth of 2% annually. 30 Key abatement options CVD Chamber Clean Process optimization continues to focus primarily on CVD chamber cleans because they have historically been the largest source of PFC emissions. The PFC gases used in CVD chamber cleans include C2F6 and CF4. CVD Chamber cleaning emissions are reported to constitute 80% of all semiconductor emissions (US EPA, 2006). Replacement of the original process with a new and lower emitting process, is a technology area which has undergone significant development in recent years. The industry has developed NF38 remote plasma clean technologies to replace in-situ C2F6 and CF4 chamber cleans. The process is assumed to be applicable to all fabrication facilities. When compared to the original carbon based PFC chamber cleans that they replace, retrofitted remote cleans result in 95% PFC emissions reduction (ESIA, 2006) (US EPA, 2006). Assuming a maximum market penetration of 93% for this option in 2020, a maximum abatement of 1,537 kt of CO2 eq. is achievable compared to the baseline scenario. Facilities moving to an NF3 Remote Clean system are assumed to face a purchase and installation capital cost of approx €50,000 per chamber. Additional net annual costs are assumed to total approx. €12,000 per chamber (US EPA, 2006). There is currently no information about the total amount of etch chambers in Europe available. The calculation of specific abatement costs per tonne abated CO2 eq. is therefore not possible. Point-of-use plasma Abatement The Point-of-use plasma abatement is used to abate emissions from the plasma etching process and is assumed to be applicable to all fabrication facilities. Plasma etching emissions constitute 20% of all semiconductor emissions. The system uses a small plasma source that effectively dissociates the PFC molecules that react with fragments of the additive gas—H2, O2, H2O, or CH4—in order to produce low-molecular-weight by-products such as HF with little or no GWP. After disassociation, wet scrubbers can remove the molecules. It is estimated that emissions reduction efficiency of this option is 95% (US EPA, 2006). It is assumed that plasma abatement technology requires capital costs of approx. 30,000 € per etching chamber, which covers the purchase and installation of the system. Additionally occur approx. further €800 operational expense per etch chamber (US EPA, 2006). There is currently no information available on the total amount of etch chambers in Europe. Assuming a maximum market penetration of 35% for this option in 2020, a maximum abatement of 152 kt of CO2 eq. is achievable compared to the baseline scenario. The calculation of specific abatement costs per t abated CO2 eq. is therefore not possible. 8 New research shows that NF3 is also a very potent greenhouse gas (GWP=17200) and will most likely be covered by a post2012 agreement: http://e360.yale.edu/content/feature.msp?id=2085 31 3.3 Other sources PFCs are also used in as solvents in electronics applications and as minor compounds in foam blowing agents and refrigerant mixtures. Manufacturing and distribution losses occur just as described for HFCs and SF6. New applications have emerged in the medical field and in cosmetics. In military first aid PFCs are used as artificial blood. Also certain military radar-systems sometimes require a filling with PFCs. The quantification of these miscellaneous emission sources requires further investigation. Based on the estimates by (Harnisch & Hendriks, 2000) we assume that gross emissions of 500 t / yr occur in 2010 and remain stable until 2030. Abatement options: No abatement options for this group of sources were identified. More reliable quantitative information on the source of these emissions and their abatement are clearly needed. 32 4 4.1 E m i s s i o n r ed u c t i o n o p t i o n s a n d c o s t s : S F 6 Manufacture and use of gas insulated switchgear SF6 has unique, and currently irreplaceable, properties that allow the optimized operation of electrical switchgear and electricity networks. Electric equipment based on SF6-technology is used in the generation, transmission and distribution of electricity all over the world. The substance SF6 possesses a unique combination of properties such as non-toxicity, non-ozonedepletion, non-flammability and outstanding electrical properties. In the EU-15 the contribution of SF6 from electrical equipment amounted to 0.05 % of the total greenhouse gas emissions in 2002. Since 1995, voluntary actions by the European electricity industry have resulted in a reduction of 40% of SF6 emissions. Most of the potential for emission reductions has already been realized. However there remains scope for further reductions (Wartmann & Harnisch, 2005). In 2005 the SF6 emissions from the manufacture and use of gas insulated switchgear in the EU-27 added up to 2.7 million t of CO2 eq. The business as usual scenario describes the development of emissions for the case that no further reduction action takes place after 2005. Thus, reduction options already implemented in 2005 remain in place, but no additional action is taken. As a consequence, emissions slightly increase around 10% in 2010 and 2020 compared to 2003 due to a strong bank growth. For the EU-15 member states emission data for 2005 is taken from the national inventory reports submitted to the UNFCCC, except for UK and Ireland, Greece and the Netherlands. These countries reported only aggregated SF6 emissions from various sources. In this case emissions were calculated using the emission percentage of the German submission from switchgear emissions relative to the total submitted SF6 emissions. New member states do not report SF6 emissions. We estimated their SF6 emissions by means of countries’ share in the European gross domestic product for 2005. Figure 9 shows the emission projections from 1995 until 2030 under the BAU scenario. 33 SF6 BAU Emissions 5 [Mt CO2 eq.] 4 3 2 1 0 1995 2000 2005 2010 2015 2020 2025 2030 Figure 9 SF6 Emissions Projecti ons from gas insul ated switchgear 1995-2030 Key Abatement Options Key abatement options include enhanced tightness by design, gas recovery and re-use as well as training of personnel handling SF6. The electricity industry has managed the growing population of SF6 equipment in the EU-27 in order to reduce annual emissions from 4.8 million t of CO2 equivalent to 2.7 million t in 2005 – delivering a reduction of nearly 40% in less than ten years. While the action already taken covers most of the potential reduction measures, full coverage of these measures throughout the electrical industry in the EU-27 has not yet been achieved (Wartmann & Harnisch, 2005). In the next section, selected abatement measures are described regarding their technical characteristics, reduction potential and costs, as described in the study “Reductions of SF6 emissions from high and medium voltage electrical equipment in Europe” by Wartmann and Harnisch in 2005. Table 14 gives an overview of the assessed reduction options. 34 Table 14 Reduction options f or different Life Cycle Phases No. Measure Life-Cycle-Phase Ia. Awareness Manufacture – Training, Monitoring Manufacture Ib. Awareness Use-Phase – Training, Monitoring, Labelling Use-Phase II. Centralized Supply System Manufacture III. Improved Filling Procedure Manufacture Iva. Evacuation Manufacture Manufacture IVb Evacuation Use-phase Use-Phase V Leakage detection with helium Manufacture VI Repair and Replacement Use-Phase VII Decommissioning infrastructure Decommissioning I. Awareness Several measures are aggregated under “awareness”. This includes all measures increasing the awareness of staff involved in gas handling, e.g. training, monitoring and labelling. Ia. Manufacturing: Training Integration of handling guide into standard training program Monitoring Various possibilities for internal monitoring exist. Here a very precise technical implementation is assumed, which allows the determination of gas amounts with high accuracy and for single production steps: a centralized SF6 supply system is combined with installation flow meters at the single workstations. Investment costs for the flow metering system are assumed to be €30,000, operational costs €5,000 p.a. regarding operational costs, a yearly effort of 2 days for data evaluation, internal reporting, etc. is assumed. 35 Ib. Use phase: Training It is assumed that the staff dealing with topping-up or maintenance including gas-handling of closed pressure equipment are trained one off for a day for the specific types of equipment to be handled. Training takes place when new types of electrical equipment are introduced. Monitoring Due to the large number of applications spread over considerable areas, a mass-balance concept at the level of transmission operators seems most feasible. This approach is already practiced by the majority of the utilities today. It is assumed that this does not require any investment but leads to additional working time of two days per 50 t closed pressure SF6 bank. Labelling Marginal additional costs of 0.2% of the sales price of equipment for labelling implementation are assumed to occur. II. Centralized supply system in manufacture Gas is stored centrally and distributed to the working-stations. Investment costs of 100,000 € per site, but also operational costs (for maintenance of pipes) of 15,000 € per site and year occur. III. Improved filling procedures in manufacture The filling process is changed in order to prevent amounts of gas remaining in the filling tube from being released when the tube is disconnected. This can be achieved through several approaches having comparable investment costs (assumed investment costs per site: €60,000). 36 IV. Evacuation to lower pressures This measure is of importance in all life-cycle phases, especially for closed pressure equipment. IVa. Manufacturing: Existing 50 mbar piping equipment can be easily upgraded to 1 mbar capacity at an average cost of 10,000 € per tube. IVb. Use phase: This applies only to closed pressure systems as no maintenance or topping-up during the lifetime is required for sealed pressure systems. Additional operational costs for additional working time are assumed (2.5 hrs/0.2 t SF6 closed pressure equipment bank under maintenance) to result from this measure. V. Leakage detection with helium This measure applies only to the manufacturing process. Using helium for leakage detection allows, besides avoiding process intrinsic SF6 emissions, to detect even smaller leaks than with SF6, as the helium molecules are smaller than SF6 molecules. Considerable investment costs occur. Operational costs are assumed to differ only little from the previously used technology which in most cases is integral leakage detection with SF6, although there are also cases with integral leakage detection with helium substituted for manual leakage detection with SF6, which had higher operational costs due to longer testing times. Investment costs are assumed to be €500,000 as an average per site with annual operational costs of about €50,000. VI. Repair and replacement It is assumed that, i) 3% of closed pressure systems have leakage rates9 of 2.5% points above their design-related leakage rates and ii) that repair action would be taken only after one year. It is assumed that 90% of the leaky equipment can be repaired, while 10% have to be replaced, having only a lifetime of 30 years behind them. Repair of one unit is assumed to take one day 9 Not taking emissions from gas handling into account. 37 VII. Establishment of an efficient disposal infrastructure Several decommissioning processes and infrastructures for the end of life treatment of SF6 electrical equipment have been established because the decommissioning differs from product to product and manufacturer to manufacturer. At present only a few disposal companies offering these services in the whole EU-27. As the future structure is not fully clear and investment and operational costs for an EU-wide infrastructure are difficult to estimate regarding the number of disposal companies which will participate, number of staff to be trained and number of evacuation equipments to be acquired, a simpler approach is taken. In Norway a decommissioning infrastructure for medium voltage equipment has been set up based on an agreement with the Norwegian Government regarding the disposal of electronic waste. For switchgear, the fee is 1% of the price. This infrastructure is taken as a basis of calculation to estimate the costs of a decommissioning infrastructure. Emission reduction potential As industry already realized substantial emission reductions until 2005 (see Figure 9) we estimated that in 2005 around 60% of the available overall reduction potential of measures IVI has already been implemented. Accordingly Table 14 only shows the remaining 40% of reduction potential in 2020. In total a reduction potential of additional 2,419 kt of CO2 eq. is achievable, if all measures are applied consequently. Estimated Abatement Costs Costs are calculated not only for the remaining reduction potentials, but also for the reductions already achieved by industry. As described above abatement measures I-VI are considered to be already in place in 2005. It is estimated that the remaining reduction potential can be achieved at the same costs. Specific abatement cost per t abated CO2 eq. are given in Table 15. 38 Table 15 S F6 Emissions reduction potential and costs in 2020 No. Measure Reduction Specific potential Costs [kt CO2 eq.] [€/t CO2 eq.] Manufacture Ia. Awareness Manufacture – Training, Monitoring 96 0.5 II. Centralized Supply System 236 1.2 III. Improved Filling Procedure 200 0.4 Iva. Evacuation Manufacture 160 4.9 V Leakage detection with helium 120 5.7 360 1.8 Use-Phase Ib. Awareness Use-Phase – Training, Monitoring, Labelling IVb Evacuation Use-phase 8 24.1 VI Repair and Replacement 44 40.2 1,195 1.3 Decommissioning VII Decommissioning infrastructure Total Reduction Potential 4.2 2,419 Magnesium production and casting SF6 is used as a component of a cover gas to protect the surfaces of molten magnesium from igniting explosively in air. It is used in various casting operations at primary and secondary magnesium smelters, die casting plants and gravity casting plants. SF6 emission factors of the magnesium production vary from 0.1 to 11 kg/t magnesium component produced, depending on type of operation and containment, cover gas flow rates, SF6 concentration in the cover gas and degree of gas feed process control. Best practices at primary smelters and die casting operations indicate SF6 emission rates below 1.0 kg/t magnesium. Primary magnesium production does –to our knowledge- not take place within the EU and secondary magnesium production only in selected member states. SF6 emissions data from magnesium production and casting are taken from the national inventory submissions to the UNFCCC except for UK and Spain. British and Spanish emission data is taken from (US EPA, 2006). In 2005 the secondary magnesium production and casting operations in six European countries contributed 1,318 kt of CO2 eq. to the overall F-Gas emissions in the EU-27. As Regulation 39 (EC) No 842/2006 on certain fluorinated greenhouse gases prohibits the use of SF6 or preparations in magnesium die-casting, except where the quantity of SF6 used is below 850 kg per year from 1 January 2008, it is estimated that emissions decrease until 2020. Country specific SF6 emissions in 2005 are shown in Table 16. Table 16 S F6 emissions from magnesium production an d c asting in 2005 Member state 2005 [kt CO2 eq.] Germany 660 France 439 United Kingdom 17 Italy 85 Spain 17 Sweden 100 SUM 1,318 Key Abatement Options Substitution of SF6 by SO2 The option to fully abate emissions from this source would be to completely switch to SO2 as protection gas. SO2 has been used traditionally in magnesium foundries. Owing to the toxic properties of SO2, its use calls for safety-relevant modifications which are not economic for smaller magnesium foundries. The use of SO2 has the potential to reduce SF6 emissions by 100%, because a complete replacement of the cover gas is involved. The effect achieved in 2010 of the prohibition of SF6 in magnesium die casting is put at around 500 kt CO2 equivalent (Öko-Institut, 2007). In addition to secondary smelters there is a larger number of often small foundries which are active in die casting magnesium in Europe. An investment of 100,000 € per foundry to switch to SO2 (potentially including a modified gas supply system, improved ventilation and gas warning systems) would lead to substantial conversion costs. It should be kept in mind that many foundries are small and medium enterprises which may require financial assistance for this conversion process. The secondary smelters would require a higher investment (indicative number of €1 million). It is assumed that operation and maintenance costs would remain roughly constant after a conversion as SF6 is a rather expensive substance in comparison to SO2. More detailed information on abatement costs is clearly needed. 40 4.3 Other sources SF6 emissions from other sources in the EU-27 amounted to approx. 4,000 kt CO2 eq. in 2005. They are emitted from various sources and mostly only reported aggregated in the national inventory reports. Emission data for the EU-15 are taken from the submissions and data for new member states were assigned by means of GDP. Among others SF6 emissions occur from the following sources: Soundproof Glazing SF6 is filled in the pane interspace of double glazing windows in order to improve the sound insulating effect. Emissions occur on production, during use, and particularly on disposal. The EU-F-Gas-Regulation prohibits the filling in windows from July 4th 2007. But emissions from use and disposal continue arising for more than two decades (Schwarz & Wartmann, 2005). Car Tires SF6 in tires is used for longer pressure stability as long as no mechanical damage occurs. The use in car-tires is also prohibited by the F-Gas Regulation from July 4th 2007. Sport Shoe Soles SF6 is used in sport shoe soles to ensure an elastic attenuation of shocks when the foot touches ground. All sport shoes containing SF6 are imported. The EC-F-Gas-Regulation prohibits placing on the market of SF6-filled sport shoe soles from July 4th 2006. Additionally SF6 is used in the following applications or processes: • • • • • Particle Accelerators Military Aircraft Radar Glass Fibres Power Capacitors Tracer Gas Key abatement options: As the majority of these applications are already prohibited by the EU-F-Regulation no specific abatement options were considered for this field. The level of emissions will nevertheless remain quite significant beyond 2020 because effective abatement options for the recovery of SF6 from windows at demolition sites are unlikely to be developed. 41 5 Conclusions Figure 3 shows the baseline and abatement potential for F-gases as identified at the start of the SERPEC study. However, a recently but clear trend is observed in which HCFC containing refrigerants are replaced by HFCs (Velders et al., 2009). HFCs do not deplete the ozone layer but are potent greenhouse gases. Thus, the transition away from ozone depleting substances like HCFCs has implications for future climate. When such HFCs are not only applied in new but also in existing refrigeration systems that are still using HCFCs today, the total F-Gas emission in the baseline will increase to around 81 CO2-eq in 2020 and 2030 (see Figure 11)10. The uncertainty in the baseline illustrates the importance of improved monitoring of F-gases, which may provide a cheap option to ‘decrease’ the current assumptions on baseline emissions. Indeed, improved monitoring will be a key element in the planned review of Regulation (EC) No 842/2006. 80 70 Mt CO2 eq 60 50 40 30 20 10 Base 0 2000 2005 Reduction 2010 2015 2020 2025 2030 Figure 10 Preliminary baseline and abatement potential for F-gases in the EU27. Upper line shows the baseline originally i dentified in this study, th e lower line the emissions after applying maximum abatement (see main text). 10 This estimate is consistent with IIASA’s (2008) input to the European Commissions 2008 Climate package. Indeed, the difference between our initial baseline and IIASA’s estimate in 2020 could largely be explained by, i) 14 Mt higher estimate of emissions of HFCs used as refrigerants in commercial refrigeration equipment, while the equipment is in use (emissions from banked HFC), ii) 10 Mt higher estimate of emissions of HFCs used as refrigerants in industrial refrigeration (including food and agricultural) equipment, while the equipment is in use (emissions from 'banked' HFC). 42 Relative to the new baseline, we identified an abatement potential of 26 Mt CO2-eq in 2020. Figure 12 illustrates the identified abatement options in a cost-efficiency (€/t-CO2eq) order. More detailed information is given in Table 17 . Underlying investment costs are given in Appendix 1. The data show that some 20 Mt CO2-eq abatement is available at costs below 200 €/t-CO2eq. 90 80 Mt CO2 eq 70 60 50 40 30 20 10 Base (Direct) 0 2000 2005 Reduction 2010 2015 Reduction-extra 2020 2025 2030 Fi gure 11 Fi nal baseli ne and abatement potenti al for F- gases in the EU27. The lower dotted line refers to the ‘HFC-uncertainty’ (see main text). The earlier mentioned ‘HFC-uncertainty’ in the baseline development is also reflected in the abatement potential. The baseline assumption that all existing refrigeration units that are still using HCFCs will be retrofitted with HFC-refrigerants, implies that these HFCs can be removed from these units –and replaced by new systems with natural refrigerants- when they reach the end of their lifetime between 2020 and 2030. The IPCC guidelines recommend an average recovery efficiency of approximately 70% for developed countries, when calculating HFC-emissions from disposed systems. As a result, we assumed that between 2020 and 2030 an additional HFC-reduction of around 20 Mt CO2-eq is possible (see Figure 11, lower dotted line). Because of the uncertainty in this option, we did not assess its costs. 43 900 € / t CO2 eq 700 500 300 100 -100 0 5 10 15 20 25 30 -300 Mt CO2eq Figure 12: C ost-curve for F- gases on the EU27 level in 2020 44 Table 17 A batement potential & costs f or 2020 baseline – least c ost or der Measure Abated emissions Cumulative sum of Reductions Specific abatement cost [kt CO2 eq.] [kt CO2 eq.] [€/t CO2 eq.] Gas insulated switchgear: Improved Filling Procedure 200 200 0.4 Gas insulated switchgear: Awareness Manufacture 96 296 0.5 Gas insulated switchgear: Centralized Supply System 236 532 1.2 Gas insulated switchgear: Decommissioning infrastructure 1,195 1,727 1.3 Gas insulated switchgear: Awareness Use-Phase 360 2,087 1.8 HFC-23: Oxidation 133 2,220 2 Gas insulated switchgear: Evacuation Manufacture 160 2,380 4.9 Gas insulated switchgear: Leakage detection with helium 120 2,500 5.7 Aluminium production: Coversion: VSS to PFBS 514 3,014 6.5 Foams XPS: Carbon dioxide 1,900 4,914 9 Foams PU cont./discont. panels: Hydrocarbons 1,000 5,914 24 Gas insulated switchgear: Evacuation Use-phase 8 5,922 24 Stationary AC: Leakage Reduction 2,056 7,978 27 Commercial Refrigeration: Leakage Reduction 5,639 13,617 32 Industrial Refrigeration:Natural Refrigerants 174 13,791 34 HFC-23: Improve oxidation downtime 25 13,816 40 Transport Refrigeration: Leakage Reduction on Ship 481 14,297 40 Gas insulated switchgear: Repair and Replacement 44 14,341 40 Industrial Refrigeration: Leakage Reduction 1,301 15,642 72 Transport Refrigeration: Leakage Reduction on Trucks 1,347 16,989 97 Aluminium production: Coversion: SWPB to PFBS 147 17,136 109 Commercial Refrigeration: Natural Refrigerants 2,207 19,343 117 Foams PU Appliances: Hydrocarbons 242 19,585 146 Domestic Refrigeration: Improve recycling efficiency 928 20,513 162 Mobile AC: Mandatory system checks 5,215 25,728 959 45 References - Amann et al., (2008) Amann, M., Höglund Isaksson, L, Winiwarter, W., Tohka, A., Wagner, F. Schöpp, W., Bertok, I., Heyes, C.: Emission scenarios for non-CO2 greenhouse gases in the EU27 - Mitigation potentials and costs in 2020, International Institute for Applied Systems Analysis, Austria May 2008 - Ashford et al., (2004) Ashford, P., Clodic, D., Palandre, L., McCulloch, A., Kuijpers, L.: Determination of comparative HCFC and HFC for the foam and refrigeration sectors until 2015. Report for ADEME and US EPA, 2004. - Baggot, (2007) Baggot, SL et. al.: UK Greenhouse Gas Inventory, 1990 to 2005 - Annual Report for submission under the Framework Convention on Climate Change. AEA technology for UK DEFRA, April 2007 - BSEF, (2007) Bromine Science and Environment Forum: Building insulation – EPS & XPS foams,http://www.bsef.com/uploads/MediaRoom/documents/eps_xps_factsheet_november_final. pdf (11.07.2008) - CAN, (2007) Climate Action Network Europe: Fact Sheet – HFCs in foams, March 2004 http://www.climnet.org/pubs/FoamsFACTSHEET_March2004.pdf (11.07.2008) - Capros, P., L. Mantzos, V. Papandreou, N. Tasios. Primes Model – 3MLab/NTUA, June 2008 Model-based analysis on the 2008 policy package on climate change and renewables. Directive 2006/40/EC Directive 2006/40/EC of the European Parliament and of the Council of 17 May 2006 relating to Emissions From Air-Conditioning Systems in Motor Vehicles and Amending Council Directive 70/156/EEC, Official Journal of the European Union, L 161/12, 14 June 2006. - ESIA, (2006) European Semiconductor Industry Association: Intermediate Status Report of the Progress towards the Reduction of Perfluorocompound (PFC) Emissions from European Semiconductor Manufacturing, Brussels 2006 - EUP Lot 13 (2007): Preparatory studies for Eco-design Requirements of EuPs, LOT 13: Domestic Refrigerators and freezers, December 2007. http://www.ecocolddomestic.org/index.php?option=com_docman&task=doc_download&gid=123&Itemid=40 (22.06.2009) - Eurostat, (2006) Eurostat: Passenger transport in the European Union - Issue number 9/2006, Luxembourg, September 2006. http://epp.eurostat.ec.europa.eu/cache/ITY_OFFPUB/KS-NZ-06009/EN/KS-NZ-06-009-EN.PDF (11.07.2008) 47 - Harnisch & Hendriks, (2000) Harnisch, J. and Hendriks, C.: Economic Evaluation of Emission Reductions of HFCs, PFCs, and SF6 in Europe. Report prepared for the European Commission, Cologne 2000. - IIASSA, 2008. Amann et al. Emission scenarios for non-CO2 greenhouse gases in the EU-27. Mitigation potentials and costs in 2020. Final report May 2008 (source data in GAINS model. Scenario: Non-CO2 gases for C&E package. - IPCC/TEAP, (2005) IPCC/TEAP: Special Report on Safeguarding the Ozone Layer and the Global Climate System: Issues Related to Hydrofluorocarbons and Perfluorocarbons. Prepared by Working Group I and III of the Intergovernmental Panel on Climate Change, and the Technology and Assessment Panel. Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA, 2005. - ISOPA, (2003) European Diisocyanate and Polyol Producers Association: Socio- Economic Information on the European Polyurethanes Industry, Brussels, October 2003 - Ministerio, (2007) Ministerio de Medio Ambiente de España: Inventario de emissones de gases de efecto invernadero de España – Años 1990-2005, Secretaría General para la Prevención de la Contaminación y del Cambio Climático, Madrid March 2007 - Mc.Culloch, (2005) McCulloch, A.: Incineration of HFC-23 Waste Streams for Abatement of Emissions from HCFC-22 Production:, Prepared for United Nations Framework Convention on Climate Change, Marbury Technical Consulting and University of Bristol, 2005 - NIR Germany, (2007) Federal Environment Agency: Submission under the United Nations Framework Convention on Climate Change 2007 - National Inventory Report, Dessau, May 2007. - Öko-Institut, (2007) Öko-Institut e.V.: Replacement of SF6 as a shielding gas in magnesium production. 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(EC) No 842/2006 Regulation (EC) No 842/2006 of the European Parliament and of the Council of 17 may 2006 on Certain Fluorinated Greenhouse Gases, Official Journal of the European Union, L 161/1, 14 June 2006. - Rhiemeier et al., 2008 Rhiemeier, J.-M., Harnisch, J., Kauffeld, M., Leisewitz, A.: Comparative Assessment of the Climate-Relevance of Supermarket Refrigeration Systems and Equipment, Report prepared for the German Federal Environmental Protection Agency (Umweltbundesamt), Dessau 2008 - RTOC, (2007) Refrigeration, Air Conditioning and Heat Pumps Technical Options Committee: 2006 Assessment report, UNEP Nairobi, Ozone Secretariat, January 2007 - Schwarz, (2001) Schwarz, W.: The annual emission rate of car air-conditioning systems during the use-phase, Report prepared for the German Federal Environmental Protection Agency (Umweltbundesamt), Frankfurt 2001 48 - Schwarz & Wartmann, (2005) Schwarz, W., Wartmann, S.: Emissions and Emission Projections of HFC, PFC and SF6 in Germany - Present State and Development of a Monitoring System. Report prepared for the German Federal Environmental Protection Agency (Umweltbundesamt), Dessau 2005 - Schwarz & Rhiemeier, (2007) Schwarz, W., Rhiemeier, J.-M.: The analysis of the emissions of fluorinated greenhouse gases from refrigeration and air conditioning equipment used in the transport sector other than road transport and options for reducing these emissions, prepared for the European Commission (DG Environment), 2 November 2007. - SIA, (2008) Semiconductor Industry Association: Press Release, May, 2008. http://www.siaonline.org/pre_release.cfm?ID=475 - UNEP, (2006a) 2006 Assessment Report of the Rigid and Flexible Foams Technical Options Committee, UNEP Ozone Secretariat, Nairobi, Kenya March 2007. - UNEP, (2006b) Report of the Refrigeration, Air conditioning, and Heat Pumps Technical Options Committee, 2006 Assessment, Nairobi, January 2007. - US EPA, (2006) United States Environmental Protection Agency, Office of Atmospheric Programs: Global Mitigation of Non-CO2 Greenhouse Gases, Washington, June 2006 - Velders, Guus J. M., David W. Fahey, John S. Daniel, Mack McFarland, and Stephen O. Andersen. 2009. The large contribution of projected HFC emissions - to future climate forcing. In press. Published online before print June 22, 2009, doi: 10.1073/pnas.0902817106. - Wartmann & Harnisch, (2005) Wartmann, S., Harnisch, J.: Reductions of SF6 emissions from high and medium voltage electrical equipment in Europe. Report prepared for CAPIEL, Nurnberg, June 2005. - ZVEI, (2006) German Electrical and Electronic Manufacturers' Association, Press Release from 20.03.2006, Neue Wege im Entsorgungswettbewerb, http://www.zvei.de/index.php?id=3710&tx_ZVEIpresse_pi1[showUid]=700&cHash=485c33d07f v 49 Appendix 1 This appendix provides more detailed information on baseline emissions and costs: Figure 13 illustrates the total HFC emissions from different sources in 2005 and the projected HFC emissions under the BAU scenario in 2020 and 2030 for the EU-27. Overall HFC emissions will decrease by 40% until 2030 as a result of the European legislation on F-Gases11. The biggest emission reduction results from Directive 2006/40/EC, which bans refrigerants with a GWP above 150 in mobile air conditioning systems from 2011. Figure 14 illustrates the total PFC emissions from different sources in 2005 and the projected PFC emissions under the BAU scenario in 2020 and 2030 for the EU-27. PFC emissions increase only lightly until 2030 due to growth in the semiconductor industry. Emissions from the aluminium industry are estimated to remain stable until 2030. The small decrease in 2020 compared to 2005 results from the closure of the Hungarian aluminium plant in 2006. Figure 15 present the total SF6 emissions from different sources in 2005 and the projected SF6 emissions under the BAU scenario in 2020 and 2030 for the EU-27. Overall SF6 emissions will decrease by a fourth until 2030 due to mandated and voluntary efforts by users of gas insulated switchgear and different other emission sources that are affected by certain prohibitions of Regulation (EC) No 842/2006 on certain fluorinated greenhouse gases. Main driver for the decrease is the ban of SF6 in magnesium die-casting through Regulation (EC) No 842/2006. Figure 16 and Figure 17 illustrate the estimated emission deployment under the BAU scenario from 2005 until 203011. Table 18 summarizes the emission projections of HFCs, PFCs and SF6 under the BAU scenario per member state11. Table 19 shows cost information estimates for emission reduction measures for the 2020 baseline. It shows both, investment and O&M Costs per reduction measure in million Euros. I.e. the implementation of all measures given for the refrigeration and air conditioning sector, would require a total investment of € 3billion and additional annual O&M costs of €8.5 billion. Table 20 shows the number of aluminium smelters and their applied technology type in the EU-27 (EU-15) countries in 1990 and 2005. For updated numbers please also see the comments from the European Aluminium Association in Appendix 2. 11 this assumption was changed in the final phase of the project resulting in a increase of HFC emissions in the baseline, see chapter 5 50 2005 HFC emissions Foam Blowing Domestic Refr. Production of HCFC22 Commercial Refr. Transport Refr. Mobile AC Industrial Refr. Staitonary AC 52,653 kt CO2 eq. yr.-1 2020 BAU HFC emissions Domestic Refr. Foam Blowing Production of HCFC22 Commercial Refr. Mobile AC Transport Refr. Staitonary AC Industrial Refr. 41,393 kt CO2 eq. yr.-1 2030 BAU HFC emissions Foam Blowing Domestic Refr. Production of HCFC22 Commercial Refr. Staitonary AC Industrial Refr. Transport Refr. 30,323 kt CO2 eq. yr.-1 Figure 13 Aggregated HFC emissions in 2005, 2 020 and 2030 51 2005 PFC Emissions Other Sources Aluminium Industry Semiconductor Industry 5,794 kt CO2 eq. yr.-1 2020 BAU PFC emissions Other Sources Aluminium Industry Semiconductor Industry 6,407 kt CO2 eq. yr.-1 2030 BAU PFC emissions Other Sources Aluminium Industry Semiconductor Industry 6,407 kt CO2 eq. yr.-1 Figure 14 Aggregated PFC emissions in 2005, 2020 and 2030 52 2005 SF6 emissions Gas Insulated Switchgear Other Sources Magnesium Production 8,014 kt CO2 eq. yr.-1 2020 BAU SF6 emissions Gas Insulated Switchgear Other Sources Magnesium Production 6,591 kt CO2 eq. yr.-1 2030 BAU SF6 emissions Gas Insulated Switchgear Other Sources Magnesium Production 6,305 kt CO2 eq. yr.-1 Figure 15 Aggregated SF6 emissions in 2005, 2 020 and 2030 53 50 [Mt CO2-eq.] 40 30 HFC emissions 20 10 0 2005 2010 2015 2020 2025 2030 Figure 16 Pr ojected HFC emissions under the BA U scenario 9.0 PFC emissions SF6 emissions [Mt CO2-eq.] 8.0 7.0 6.0 5.0 2005 2010 2015 2020 2025 2030 Figure 17 Pr ojecte d PFC an d S F6 emissi ons unde r the BAU s cenari o 54 Tabl e 18 BAU HFC, PFC and SF6 emissions in 2005, 2020 and 2030 [kt C O2 eq.] 12 HFC 2005 2020 PFC 2030 SF6 2005 2020 2030 2005 2020 2030 Austria 902 738 532 58 79 79 118 106 106 Belgium 1,337 1,031 771 10 14 14 43 38 38 Bulgaria 452 448 336 1 2 2 8 8 8 Cyprus 47 47 35 0 0 0 5 4 4 CZ Republic 605 599 450 444 597 597 39 35 35 Denmark 587 480 346 0 0 0 22 22 22 Estonia 76 76 57 0 0 0 4 4 4 Finland 576 471 340 1 2 2 20 17 17 France 7,178 5,762 4,202 982 1,080 1,080 1,755 1,418 1,323 Germany 9,367 7,530 5,486 884 1,072 1,072 3,064 2,340 2,197 Greece 3,758 986 711 72 72 72 5 5 5 Hungary 593 588 441 221 17 17 34 31 31 Ireland 456 373 269 137 184 184 38 40 40 6,530 5,296 3,837 365 429 429 658 586 568 Latvia 135 134 100 6 8 8 5 5 5 Lithuania 200 198 148 0 0 0 8 7 7 Luxembourg 54 44 32 0 0 0 4 3 3 Malta 23 23 17 0 0 0 2 2 2 Netherlands 1,771 1,449 1,044 179 211 211 445 392 392 Poland 2,243 2,128 1,667 243 253 253 95 86 86 Portugal 1,152 942 679 0 0 0 10 12 12 Romania 1,268 1,257 943 570 610 610 31 28 28 Slovakia 317 314 236 32 52 52 15 13 13 Slovenia 117 116 87 124 116 116 11 10 10 5,094 4,059 2,973 143 143 143 289 313 309 978 800 577 301 304 304 142 68 46 UK 6,836 5,504 4,006 532 662 662 1,145 999 995 EU-27 52,653 41,393 30,323 5,305 5,907 5,907 8,014 6,591 6,305 Italy Spain Sweden 12 Without PFC emissions from other sources 55 Table 19 Cost information estimates for emission reduction measures for the 2020 baseline Measure HFC-23: Oxidation HFC-23: Improve oxidation downtime Foams XPS: Carbon dioxide Foams PU cont./discont. panels: Hydrocarbons Foams PU Appliances: Hydrocarbons Domestic Refrigeration: Improve recycling efficiency Commercial Refrigeration: Leakage Reduction Commercial Refrigeration: Natural Refrigerants Transport Refrigeration: Leakage Reduction on Ship Transport Refrigeration: Leakage Reduction on Trucks Industrial Refrigeration: Leakage Reduction Industrial Refrigeration: Natural Refrigerants Stationary AC: Leakage Reduction Mobile AC: Mandatory system checks Aluminium production: Conversion: VSS to PFBS Aluminium production: Conversion: SWPB to PFBS Gas insulated switchgear: Awareness Manufacture Gas insulated switchgear: Awareness Use-Phase Gas insulated switchgear: Centralized Supply System Gas insulated switchgear: Improved Filling Procedure Gas insulated switchgear: Evacuation Manufacture Gas insulated switchgear: Evacuation Use-phase Gas insulated switchgear: Leakage detection with helium Gas insulated switchgear: Repair and Replacement Gas insulated switchgear: Decommissioning infrastructure Investment costs O&M costs [million €] [million €] 3.0 0.2 - 1.0 27.0 15.0 25.0 21.0 60.0 30.0 - 150.0 - 232.6 2,864.0 - - 19.4 - 32.5 70.0 87.0 - 14.9 70.0 50.0 - 5,000.0 36.9 - 178.7 0.8 0.14 - 1.6 2.7 0.4 1.6 - 5.4 - 2.1 - 13.5 1.35 1.7 0.5 - 11.7 56 Table 20 EU-27 (EU-15) Aluminium smelters and Emission fact ors by Technology Type in 1990 and 2005 13 13 European Aluminium Association; International Aluminium Institute; Aluminium Verlag 57 Appendix 2 The following comments were received from industry representatives. Comments from the European Aluminium Association: • • • • • There are no SWPB smelters left in Europe. The plants in Vlissingen and in San Ciprian have been converted to PFPB, while the SWPB part of Kidricevo is already closed. The VSS plants at Avilles and La Coruna are under conversion to PFVSS. The plant at Konim remains the only plant still using VSS technology According to the latest IAI PFC survey the emission factor per ton produed aluminium have decreased slightly compared to the numbers given in 2005: PFPB: 0.24 t CO2-eq/ t Al CWPB : 0.53 t CO2-eq/ t Al SWPB: 10.9 t CO2-eq/ t Al VSS: 0.74 t CO2-eq/ t Al HSS: 2.91 t CO2-eq/ t Al Abatement cost might be considerably higher as stated by Ecofys, due to increased construction cost in the past 5 years. Due to the conversion of the plants in Vlissingen, San Ciprian, Avilles, La Coruna and the closing of the SWPB part in Kidricevo, the abatement potetntial is far less than the amount given in chapter 3.1. 58 Comments from Honeywell Fluorine Products on Foams: • The section on foam does not consider the growing use of spray foam, where the use of (extremely) flammable agents is not possible for safety-related reasons. Spray foam is a cost-effective way to retro-fit existing buildings, thus substantially contributing to CO2 emission savings. • Honeywell has developed a new generation of fluorinated fluids, hydrofluoro-olefins – HFOs, with a very low GWP. These substances are commercially available, and can be an alternative for replacements of the mainstream HFC-based fluids. We would like to thank all involved experts to their contributions: Additionally we would like to thank Prof. Michael Kauffeld (University of Applied Science, Karlsruhe for his contribution to the refrigeration and air conditioning chapter. 59