NEWSIntegrated reefer 3rd quarter 2017 Adaption to change By Søren Leth Johannsen, Chief Commercial Officer Refrigerant price increases will continue One example of the way in which macroeconomic factors are affecting global reefer operations is the rise in refrigerant prices. This spring, refrigerant type R404A nearly doubled in price in Europe. Supplying over 50% of Hydrogen Fluorides (HF) consumed, the largest producers of these products are located in China, where prices rose by 40%. incorporate the European decision into their respective national laws. The large majority that voted in favour of making the Paris Agreement legally binding means that there should be no more than a couple of years at most before greenhouse gas emissions across the EU are cut to 40% or less of their 1990 levels. This growing focus on the global warming potential (GWP) of CO2 emissions is now directly affecting the reefer market. MCI has responded to this situation by developing a product strategy directed at the existing reefer fleet. These movements are the result of new environmental protection and safety requirements, which have been implemented across the globe in various forms and structures. However, the most marked price increases have been seen within the EU, where quotas under the EU F-gas regulations are affecting the price of high-GWP products. These include R404A as well as the most commonly used R134a refrigerant. Against this background, it is worth noting that the 2017 phase-down target is 83%, with a further reduction to 56% scheduled for 2018. This is the most significant drop in the entire global F-gas regulation environment. Another related global issue is the obligation to report CO2 emissions under the Paris Agreement, with the goal of achieving the 2-degree global warming target. In June 2017, the European Parliament voted to enforce binding limits on emissions levels in all EU states and to provide financial support for the bloc’s poorer countries as they work towards meeting their Paris Agreement commitments. EU procedures require each state to MCI is now offering Star Cool with the non-flammable R513A refrigerant, which has a 56% lower GWP than the traditional R134a. All Star Cool reefers produced prior to July 2017 are now declared ‘R513A ready’, meaning that they can be adapted to run on R513A with only minor modifications. All Star Cool units produced after July 2017 are already ‘R513A optimized’, which means they can be converted to R513A at any time without modifications. Clients also have the option to have their reefers delivered from our factories already charged with R513A. I hope you will enjoy reading the Q3 edition of our magazine, which also features stories about life in Greenland and how to create stickiness between foam and metal.
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