United Nations Development Programme Importance of Recovery & Reclamation and Retrofit Incentive Program Balaji Natarajan MPU-Chemicals Unit Sri Lanka HPMP Inception workshop 31 March 2011

Coverage Background Experience from previous projects Critical success factor Program design Key success factors

Background HCFC consumption is mainly in RAC applications – primarily servicing. Reduction in servicing sector HCFC consumption – important for achieving reduction in HCFC consumption. Important interventions: *Reduction in HCFC based equipment population *Reduction in waste of HCFCs *Maximising re-use of HCFCs Focus on pockets with high HCFC consumption

Past experience on projects Process of developing R&R projects Identifying refrigeration servicing establishments Procuring and distributing refrigeration recovery/recycling equipment and accessories to these establishments Identifying candidates as Master Trainers and training them in good practices in refrigerant handling and refrigeration equipment servicing Identifying refrigeration service technicians and training them in good practices, through the Master Trainers Capacity-building of selected training establishments

Past experience on projects Main challenges in R&R program implementation Absence of a counterpart stake or ownership (e.g. participation in the recovery/recycling equipment costs) from the recipients Absence of standards or certification for recycled and reclaimed ODS Absence of a commercial incentive for recovery/recycling (or reclamation) of ODS

Past experience on projects Main challenges in R&R program implementation Inadequate definition of ownership and management structures for central reclamation facilities (where such facilities were installed). High cost of central reclamation facilities - high enough to affect economic gains. Inadequate logistics for managing the flow of recovered ODS from technicians or servicing establishments to the reclamation facility, wherever installed

Past experience on projects Other factors Significant price differentials between ODS and substitutes (ODS were invariably cheaper at the time such programmes were initiated) High cost of drop-in substitutes High investments needed for replacing or retrofitting ODS- based refrigeration equipment

Critical success factors Quantity of recoverable refrigerant gas coupled with supply of HCFCs Price of HCFC-22 vis-à-vis substitutes Access and knowledge : Recovery & Reclamation equipment Standards of reclaimed HCFCs from mini-reclamation units Counter part participation and commitment

R&R Program design and linkage Recovered HCFCs from service workshops Recovered gas stored and sent for reclamation Reclamation of gas for reuse operations on cost recovery basis quality as per ARI-700 standards quantities reclaimed monitored Retrofit incentive scheme – emission reduction and reduced virgin HCFC consumption

Program design Mini reclamation centres at identified locations – 8 locations planned “Node and hub” – approach : Recovery units High consumption pockets primary targets Training and capacity building for operations of R&R program Monitoring performance of use of equipment

Program design Retrofit incentive scheme : residential acs, commercial and industrial units Promoting recovery and reclamation of ref. gas while retrofitting Policies to promote fast-track adoption of HCFC free alternatives

Program design Time line Implementation to commence from 2011 Implementation partners National Ozone Unit, Service Agencies, HCFC based ac installations and Training institutions

Thank you