1. Low-GWP Alternative for Small Rigid PU Foam Enterprises Conversion Demonstration from HCFC-141b-based to Cyclopentane-based Pre-blended Polyol in the Manufacture of Rigid Polyurethane Foam (CPR/FOAM/59/DEM/491) Feng Hui Foreign Economic Cooperation Office, China Viraj Vithoontien Environment and Natural Resources Global Practice

2. Background  The demonstration project was approved by the Executive Committee at its 59 th Meeting;  Project entails establishment of capacity at the foam system house to produce polyol pre-blended with cyclopentane, and applications of cyclopentane pre- blended polyol at four downstream foam enterprises;  Project was implemented into two phases. Phase I covered establishment of production capacity at foam system house and conversion at one downstream foam enterprise. Phase II expanded to four downstream foam enterprises.

3. Project Implementation 3 Wanhua Rongwei Polyurethane Foshan Ouqi Zhanjiang Aowei Zhongshan Minea Electric Appliances Guangdong Vanward Electric Water Heaters Wine Cabinets and Small Fridges Discontinuous Sandwich Panels Commercial Refrigerators Development and Production of HC Pre-blended Polyol

4. Development and Production of HC Pre-blended Polyol  Safety Assessment;  Stability of Cyclopentane Pre-blended Polyols;  Flammability Testing;  Storage;  Conversion of Cyclopentane Preblending Facility;  Transportation Requirements;  Conversion of Foam Workshops Using Cyclopentane Pre- blended Polyols 4

5. Safety Assessment  Assessment conducted by Nanjing Forest University;  Stability of cyclopentane pre-blended polyols;  Flammability;  Transportation;  Chinese guidelines for foam manufacturers using of cyclopentane pre-blended polyols;  Set up of foam producer facility converting to hydrocarbon pre-blended polyols;  Stability of production; and  Quality of foam produced. 5

6. Stability of Cyclopentane Pre-blended Polyol 6  Stability of cyclopentane in the polyols is essential for maintaining the contents of cyclopentane within the polyols and the quality of final foam products;  16 formulations for cyclopentane provided by 6 Chinese polyol suppliers;  Samples with two different contents of cyclopentane: 100:13 and 100:15 (mass ratio) stored for 48 hours and at temperature ranging from -5 o c to 25 o C, tested for stability and separation (stratification);  Conclusion: Most samples demonstrated good stability. Only a few samples showed stratification at low temperature;  Findings consistent with previous study conducted by Huntsman.

7. Flammability Testing 7  Products with flash point below 45 o C are classified as flammable;  Flash point is determined as the temperature of product at which vapor released is instantly ignited by a flame. (Different test methods provide different results);  Flash point was tested by two methods (open method: GB/T3536-2008) and closed method (GB/T5208-2008) for formulation ranging from 100:5 to 100:15 (mass ratios);  Conclusion: Formulations with mass ratios of 100:13 and higher are found flammable by the open flash point method. Formulations with all mass ratios are found flammable by the closed flash point method.

8. Storage 8  Vapor pressure determines the requirements of storage of flammable materials;  Vapor pressure was determined for 100:15 formulation at temperature ranging from 30 o C – 60 o C;  Vapor pressure was determined through the test method: GB/T 21616-2008: Dangerous Goods Test Method for Vapor Pressure of Flammable Materials;  Conclusions:  Highest vapor pressure was 100.18 kPa (i.e., tanks and drums must withstand pressure of at least 200 kPa); and  Proposed minimum thickness of steel tanks and drums of 1.22 mm.

9. Conversion of Cyclopentane Pre- blending Facility at System House 9  New Equipment Needed:  Cyclopentane storage tank and pump;  Tanks and pumps for dry polyols;  Cyclopentane and polyol pre-mixing unit;  Tank and pumps for cyclopentane pre-blended polyols;  Filling equipment for cyclopentane pre-blended polyols;  Safety Measures:  Electrical installation consistent with Chinese area classifications: Chinese Class A Workshop;  Gas detectors and control panel;  Standby diesel generator;  Fire prevention and fire extinguishers;  Ventilation;  Safety requirements for cyclopentane storage tank and piping;  Separate different areas of the factory.

10. Conversion Costs of System House EquipmentApproved Cost (US$) Actual Cost (US$) Pre-mix machine and supporting equipment 120,000154,000 CP storage and pump50,00059,500 Auto packaging unit40,00032,077 Safety equipment120,000146,493 Trial10,000 Training10,000 Contingency35,000 Total385,000412,070 10

11. Transportation Requirements  Formulated polyols pre-blended with cyclopentane is classified as Grade II flammable liquid;  Personnel in charge must pass an examination of transportation authorities;  Vehicles, loading and off-loading equipment must meet the requirements for transportation of Dangerous Goods;  Limitations on transporting other chemicals with flammable liquids. 11

12. Conversion of Foam Workshops Using Cyclopentane Pre-blended Polyols  Storage of pre-blended polyols in a separate room designed for storage of flammable liquid;  Foaming area: Safety requirements based on the specific situations;  Standard safety measures:  Electrical installations meeting Chinese requirements for Grade II flammable liquid;  Ventilation;  Gas detectors and control panel;  Back-up power supply;  Nitrogen for blanketing;  Piping from drums in the storage area to foaming equipment;  Cost depending on actual situations. 12

13. Cost Indications for Foam Manufactures Using Cyclopentane (US$’000s) 13 Equipment Item HC with Storage tank & Pre- mixer HC with Pre-mixer (HC supplied in drums) HC supplied in pre- blended polyols Cyclopentane storage tank, pumps and piping 30 – 5000 Pre-mixer tank including static mixer 120 – 15080 – 900 Formulated polyol storage tank and pump, day tank 20 – 3020 -3025 - 30 Retrofit of foam* dispensers (per unit) 100 – 120** 30 – 5030 - 50 Safety equipment120 - 15080 – 10080 - 100 Trials, Tech Assistance, training & safety audit 3020 – 3020 - 30 Total420 – 530300 – 370245 - 280 *Cost could be lower if supplied by local engineering companies. ** Assuming two foaming units

14. Cost Indications for Foam Manufactures Using Cyclopentane (US$’000s) 14 Equipment Item HC with Storage tank & Pre- mixer HC with Pre-mixer (HC supplied in drums) HC supplied in pre- blended polyols Range420 – 530300 – 370245 - 280 Mid point475335263 Contingency (10%)4733.526.3 Total522368.5289.3

15. Incremental Operating Costs 15 ApprovedUnit Price ($/kg) HCFC-141b Formulation Cyclo-Pentane Formulation Polyol (w/o blowing agent)1.94100.00% HCFC-141b1.425.00% Cyclo-Pentane1.91 13.00% MDI2.35132.50%135.60% Foam Usage 11.04 Foam Price ($/unit) 2.102.25 ActualUnit Price ($/kg) HCFC-141b Formulation Cyclo-Pentane Formulation Polyol (w/o blowing agent)2.69100.00% HCFC-141b2.4825.00% Cyclo-Pentane2.48 20.50% MDI2.89150.00%144.60% Foam Usage 11.09 Foam Price ($/unit) 2.783.03

16. Conclusions  Stability – Cyclo-pentane pre-blended polyol demonstrates good stability;  Flammability – Formulations (polyol:blowing agent) with mass ratios of 100:13 and higher are found flammable by the open flash point method;  Storage – Minimum thickness of steel drums should be 1.22 mm;  Conversion cost at system house - $410,000; and  Conversion cost at foam enterprises using cyclopentane pre-blended polyol is about $250,000 - $300,000. 16

17. Thank you 17