On 3 June, 2016, Jiaxing Nanyang Polytechnic Institute (JNPI) held a ceremony
in Jiaxing City, Zhejiang Province, for signing a contract with Guangdong Midea
Refrigeration Equipment Co., Ltd. (Midea Refrigeration Equipment) about the
purchase of room air conditioners.
Source: Baidu
Accordingly, the contract is targeted at 1,000 sets of propane (R290) room air
conditioners, all flexible frequency ones with EEI (= energy efficiency index)
at Grade 2. Advanced technologies for low carbon, high efficiency and energy
saving are adopted.
Leaders and representatives from the Foreign Economic Cooperation Office,
Ministry of Environmental Protection, United Nations Industrial Development
Organization, China Household Electrical Appliance Association, Jiaxing
municipal government and Zhejiang Environmental Protection Bureau attended the
ceremony. A title “R290 Room Air Conditioner Demonstration Base” was awarded to
JNPI.
The purchase is expected to bring demonstration effect to the market, to
further improve consumers’ acceptance and recognition and accelerate the
marketisation, and to finally follow the government’s environmental policies,
according to analyst CCM.
China is the globally largest household air conditioner producing, consuming
and exporting country. In 2015, the national output surpassed 110 million
units, nearly 80% of the global total. Of this, about 40% were for exports.
In regard to refrigerant, now difluorochloromethane (HCFC-22) and R410a (a
mixture of difluoromethane - HFC-32 and pentafluoroethane - HFC-125) are mainly
applied in the domestic made room air conditioners. However, the prospects are
not optimistic.
Accordingly, the Montreal Protocol on Substances that Deplete the Ozone Layer
specifies to speed up the HCFC-22 elimination. Meanwhile, the use of R410a, a
hydrofluorocarbon (HFC) highly GWPed (GWP= global warming potential), has been
restricted or reduced by developed countries/regions such as the EU, the US and
Japan.
Also, China is actively participating in international meetings and is planning
to list HFCs in the Montreal Protocol on Substances that Deplete the Ozone
Layer. This indicates that R410a will be eliminated in the future.
China has chosen R290 as a substitute. In recent years, it has vigorously
promoted the reconstruction projects, to have 18 R290 room air conditioner
production lines and 4 R290 compressor production lines in total nationwide.
Accordingly,
-
April 2015 - leading companies in succession
launched R290 room air conditioners
-
June 2016 - Shenzhen University signed with
Gree Electric Appliances, Inc. of Zhuhai about the purchase of the domestic
first batch of R290 room air conditioners (243 units in total)
Now the sales of R290 room air conditioners are mainly reliant on orders from
government and universities especially. Still it is a long period to achieve
marketisation. However, in view of the domestic refrigerant market trend, R290
segment is growing for better.
By June 2016:
- Price (quotations)
-
HCFC-22: about USD1,518/t (RMB10,000/t)
-
R410a: about USD2,702/t (RMB17,800/t)
-
R290: about USD1,320/t (RMB8,700/t)
- Profit margin
-
HCFC-22: around USD379/t (RMB2,500/t)
-
R410a: around USD197/t (RMB1,300/t)
-
R290: around USD637/t (RMB4,200/t)
In this context, air conditioner manufacturers will benefit from low price
R290. Refrigerant producers, attracted by high profit, will increasingly
develop R290 business.
This article comes from China Fluoride Materials Monthly Report 1606, CCM
About CCM:
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& ingredients and life science markets. Founded in 2001, CCM offers a
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