In Jan. 2016, two wholly-owned subsidiaries of Zhejiang Juhua made
progress in their HFCs projects: one passed the environmental protection check
after completion and the other was ready for operation. This marks that
Zhejiang Juhua is to speed up the capacity layout and take the market
shares released by traditional HCFCs.
On 15 Jan., 2016, the Quzhou Municipal Environmental Protection Bureau
unveiled the environmental protection check upon the completed mixed
refrigerant expansion project (80,000 t/a) of
Zhejiang Quzhou Lianzhou Refrigerants Co., Ltd. (Lianzhou Refrigerants).
The portfolio spans R404A (a mixture of pentafluoroethane – HFC-125,
trifluoroethane – HFC-143a, and 1,1,1,2-tetrafluoroethane – HFC-134a), R410A (a
mixture of difluoromethane – HFC-32 and HFC-125), R407C (a mixture of
HFC-32, HFC-125 and HFC-134a), and R507 (a mixture of HFC-125 and HFC-143a).
Lianzhou Refrigerants, established in 2006, is a wholly-owned subsidiary
of Zhejiang Juhua Co., Ltd. (Zhejiang Juhua).
Later on 21 Jan., 2016, the Phase I of the pentafluoropropane (HFC-245fa)
project of Zhejiang Quzhou Juxin Fluorine Chemical Co., Ltd.
(Quzhou Juxin), another fully-owned subsidiary of Zhejiang Juhua, was
ready for operation, according to the Quzhou Public Resource Trading Centre. In
total, about USD768,852 (RMB5 million) was invested in this phase, with a
construction period of about 150 days.
Accordingly, this HFC-245fa project, total capacity given at 10,000 t/a, will
be carried out in two phases (each at 5,000 t/a).
This marks that Zhejiang Juhua is speeding up its hydrofluorocarbons
(HFCs) capacity layout so as to capture the market shares released during the
substitution of traditional hydrochloroflurocarbons (HCFCs).
The mixed refrigerants of Lianzhou Refrigerants is aimed at replacing
difluorochloromethane (HCFC-22) in the refrigeration air-conditioning field,
covering household air conditioner, industrial/ commercial air conditioning
equipment, low- and medium-temperature commercial refrigeration equipment,
transportation refrigeration equipment, etc.
Whereas the HFC-245fa of Quzhou Juxin is to be used as foaming agent in
polyurethane foaming industry, to substitute dichlorofluoroethane (HCFC-141b).
All of this is just to take the shares freed by 2 HCFCs, of which the
application quotas are reduced in 2016. Respectively, the application quota of
HCFC-22 and HCFC-141b is down-regulated by 6.92% and 22.04% YoY.
Although China prefers natural products in replacing HCFCs, the downstream
enterprises attach more importance to the short-term economic benefits when
they try to follow the government's elimination policy. Therefore, HFCs close
to HCFCs regarding application characteristics, mature in application
technology and low in substitution cost, are accepted by downstream enterprises
as substitutes in the short term.
For instance, HFC-410A air conditioner is developing well in the room air
conditioner segment and its market share, which is over 50%, has surpassed
HCFC-22 air conditioner. Meanwhile, propane (R290) air conditioner is at the
primary stage and only a few leading enterprises launched it onto the market.
Since HFC-245fa can improve the energy efficiency of relevant downstream
products, by about 8%, and can reduce the foaming cost by reducing foam density
and saving foaming materials, it has been widely applied by the downstream
enterprises in the past a few years. Now the market demand is on the rise.
Nonetheless, HFCs have a fatal disadvantage, the comparatively high global
warming potential (GWP), and thus is doomed to only play a transitional role.
The European and American markets in particular have begun to implement
policies restricting and eliminating HFCs. Under this, the application of
hydrofluoroolefins (HFOs), a new generation and lowly GWPed fluoride product,
is receiving increasing attention.
For example, in automotive air-conditioning segment, 2,3,3,3-tetrafluoropropylene
(HFO-1234yf) has been constantly marketed and accepted by a number of
downstream enterprises including General Motors Company, Subaru (the
automobile manufacturing division of Fuji Heavy Industries Ltd.), Daimler AG,
etc. About 9 million new vehicles in the world were using this refrigerant in
2015.
In the foaming agent industry, Whirlpool Corporation, Midea Group Co., Ltd.,
Haier Electronics Group Co., Ltd. and Hisense Group in succession have declared
to massively apply 1-chloro-3,3,3-trifluoropropene (HFO-1233zd) in production.
However, compared with HFCs and natural products, the application of HFOs is
quite narrow as they are mainly used in big brands. As the enterprises have
different market positionings and the prices of HFOs are high, not all
enterprises will choose HFOs, according to insiders. Even if they use HFOs,
some enterprises, in consideration of cost, don't use much but mix them with
other refrigerants.
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Tag: HFCs , Zhejiang Juhua