HFCs

Kigali Amendment

Just over two years ago there was a final meeting on what is known today as the ‘Kigali Amendment.’ This amendment added to the existing Montreal Protocol. As you all know, the Montreal Protocol originated in the 1980’s and aimed at phasing down CFC and HCFC refrigerants. This phase out aimed at stopping any further damage to the Earth’s Ozone layer. While the treaty did what it set out to, it also directly led to the rise of HFC refrigerants such as R-410A, R-134a, and R-404A. Now, no matter where you go you’re going to find HFC refrigerants. The good news is that the Ozone damaging Chlorine refrigerants are a thing of the past. The bad news is that HFCs aren’t perfect though and now this latest amendment has HFCs in it’s cross hairs.

It took seven years of meetings and careful planning but an agreement was made in October of 2016 in Kigali, Rwanda. The amendment aimed at reducing HFC emissions by over eighty percent over the next thirty years. While it was signed by over one-hundred and sixty-seven countries, in order for the treaty to come into effect it had to be ratified by twenty separate countries governments before January 1st, 2019. This number was easily met and as I write this article today there are sixty-five countries that have ratified the HFC reducing amendment. There are many more expected to ratify over the next coming weeks and months.

That being said, there is some concern about this amendment. While sixty-five countries have ratified another one-hundred and thirty-two have not. Adding more worry about the amendment is that the United States and China fall into the listing of countries that have not ratified the amendment. I cannot imagine the overall effectiveness of a treaty like this if you do not have China and the US on your side. I do not know enough about the Chinese side of things, so in this article I’ll stick with the United States.

Since Trump took office there has not been a clear message on what will be done with the Kigali Amendment. In order for it to be ratified in America it has to go through The Senate, but in order for it to get to The Senate  President Trump, or The Executive Branch, has to provide the amendment to The Senate. So far, over the past two years the Trump Administration has sat on the amendment and done nothing with it. There were a few times where it looked like progress would be made. An employee of the Trump Administration would say something positive about Kigali but then a few weeks later they would backpedal and we would be back at square one. I had predicted that by 2019 hit we would see nothing different from them either. There isn’t a flat-out refusal. The amendment is just in purgatory here in America and I predict it will stay that way.

If the pressure increases on the Trump Administration to adopt this amendment (Say if China ratifies the amendment before we do) then I can very well see Trump nixing the whole thing. That just seems to be his modus operandi. If you push too hard then he’ll go the other way. I think for now it is best for everyone to stay quiet and let the pressure build naturally. If there is too much pressure or if it seems genuine then we may get the exact opposite reaction that we are hoping for. I know it sounds a little far fetched but I believe that is how it is with this current administration.

The Good News

It’s not all bad news around here folks. No, there is a shining light when it comes to phasing down HFC refrigerants across the United States. Around the same time that the Trump Administration announced that they were pulling out of the Paris Climate Accord a group of Governors from various states formed an alliance. This alliance, known as the Climate Alliance, aimed at upholding the goals laid out in the now defunct Paris Climate Accord. Along with these goals they have also targeted similar climate and environmental changes and regulations.

Some of these specific targets have been HFC refrigerants. In fact, last year California passed a bill that closely imitated the Environmental Protection Agency’s SNAP Rule 20. This EPA rule was meant to be the first step in phasing down HFC refrigerants across the country. While the EPA’s rule was overturned by a Federal Court it is still being used as a template for various states such as California, New York, Connecticut, Maryland, and Washington State.

In fact the first part of California’s new law known as ‘The Cooling Act,’ went into effect January 1st, 2019. This first step is targeting supermarket systems, condensing units, and self-contained units. The rule states that R-404A, R-507A, and other high Global Warming Potential refrigerants would no longer be acceptable in new machines. Along with the stick there is also a carrot that gives incentives for those businesses that adopt lower GWP systems earlier then the required deadline.

Conclusion

I mentioned this above in the previous section but I just do not see the Trump Administration pushing this amendment to The Senate for ratification. It goes against everything else that the Administration has done. In fact, we are all waiting patiently on new HFC rules to be released from the Environmental Protection Agency. Some of these ‘new’ rules could end up rescinding HFC rules that were put in place during the Obama Administration. If these are rescinded then we could see recycled refrigerant being used in different machines, HFC leak repairs plummet, and unregulated HFC purchasing. (End users could purchase HFC refrigerants without licensing.)

The Kigali Amendment may be seen as a disappointment for those of us in the United States but we have hope with the Climate Alliance. While only a few states have come out with a HFC phase down plan it is just a matter of time before more states come forward. In fact, the newly elected governors of Michigan and Wisconsin have already signaled that they would be joining the alliance. We may end up with a piecemeal of states that phase down HFCs but if enough states jump on board then manufacturers will be forced to use lower GWP alternative refrigerants.

Thanks for reading,

Alec Johnson

RefrigerantHQ

Owner

Price Alert

The New Year has only just begun and already we are seeing refrigerant price changes coming to the market. Earlier today one of my contacts within the refrigerant industry reached out to me to share price increases that are coming down the pipeline. While so far these changes are from one or two manufacturers, I have seen from experience that other manufacturers typically follow suit. These price increases or decreases have reasoning behind them such as raw materials costing more, a shortage on materials or refrigerant, unexpected increased demand, logistics/freight issues, or a whole host of other possible issues. The point though is that if one manufacturer is experiencing a price increase then the others will usually be close behind them.

Now when I do articles like these that go into upcoming pricing changes I make sure to leave things anonymous to not only the source of the information but also to the company that has announced the pricing increases. It is not my place to share and publish internal company documents. By doing it this way I can protect myself and my business as well as still provide you, the reader, the much needed information on upcoming price changes.

The Changes

Ok folks, without further ado let’s dive in and take a look at the changes that were announced. Yesterday, a mailer was sent out by a leading refrigerant manufacturer. This mailer stated that as of next week, January 8th, prices would be going up six percent on HFC and HCFC refrigerants. The increase targets all of the most commonly used refrigerants today including R-22, R-134a, R-410A, R-404A, R-507A, R-407A, and R-407C.

While six percent doesn’t sound like a lot it really depends on the refrigerant that you are looking at. R-134a right now is trending between eighty to ninety dollars for a thirty pound cylinder. Six percent of that would be around five dollars more a cylinder. Not too much of an increase. However, if we take that same logic and look at R-22’s price which is hovering around four-hundred to four-hundred and fifty a thirty pound cylinder we can begin to see a larger impact. Lets take the four-hundred dollar price as an example. With that base price we’re looking at around twenty-four dollars more per thirty pound cylinder. Now we can begin to see a slight impact.

One more thing folks on these increases. The announced price increase on HFCs have only been from one manufacturer. The R-22 price increase though has now come from two different and distinct refrigerant manufacturers. Just like I stated above, most manufacturers are in tandem with each other and have their ears to the ground watching the trends. The chances are R-22 is going to go up around six percent across all manufacturers.

2019 is a big year for R-22 as this is the LAST year that any quantity can be physically produced or imported into the United States. When January 1st, 2020 hits that’s the end. Fin. No more. The only way to acquire R-22 then is either purchasing from distributors who have stockpiles on hand or purchasing form a certified refrigerant reclaimer.

Because of this upcoming rule change on R-22 the market in 2019 is unpredictable. No one knows for sure what’s going to happen. Could this six percent increase be the start of a snowball effect? Will the price keep going up and up this year as more and more people buy up everything they can? There was a time in 2017 where R-22 cylinders hit seven-hundred dollars a cylinder. Will we repeat this year? Or, is this six percent increase an anomaly or correction and the price will stabilize for the upcoming spring season?

Conclusion

Refrigerant pricing is unpredictable. Sure, I have written many articles trying to predict what will happen in the next year… and sometimes I’m right and other times I am way off. One thing I am certain of though is that these winter months are the absolute best time to buy. Prices are deflated and the demand is quite low. As spring edges closer the prices will begin to rise.

I remember back in the day when I was in charge of purchasing R-134a by the trailerload. We would always wait until the first week of February to place our orders. We’d do our negotiations in the middle/end of January and then send our purchase orders over that first week in February. Most of the time this ensured that we had a competitive price throughout the entire season and we didn’t have to scramble in the hot months to try and find a source of R-134a.

If you are interested in purchasing refrigerant please don’t hesitate to reach out to me by filling out the contact information below or by visiting our bulk refrigerants page. Please remember that we only sell in pallet and trailerload quantities. A pallet typically contains around forty cylinders.

Thanks for reading,

Alec Johnson

RefrigerantHQ

There is no better indicator or barometer within the industry then the Carrier Corporation. After all, they are one of the biggest and most stable air conditioning manufacturers out there. They are one the ‘trend setters’ within the industry. When a business decision is made everyone watches, observes, and they may even imitate. The same can be said when they choose a new refrigerant.

That is exactly what happened. The Carrier Corporation along with Chemours announced today that Carrier would be transitioning their ducted residential and commercial air conditioning products away from R-410A and over to R-454B. This new refrigerant R-454B, also known as XL41, is an HFO refrigerant from Chemours under their Opteon brand name. The transition for Carrier is scheduled to begin by the year 2023. This is a big deal folks. This could very well be the beginning of the end for R-410A. Especially if other companies began to follow suit.

As most of you know there has been a battle going on for the past few years as to what refrigerant will be the golden choice to replace R-410A. It seems like Puron has only been around for a few years but now there are already companies and countries pushing it out and wanting a better more climate friendly alternative. As I write this article today there is still not one clear and defined winner. None of this isn’t for lack of trying though. There are all sorts of 410A alternatives out there, the problem is none of them were gaining significant traction. This news from the Carrier corporation adds fuel to the fire for R-454B. Along with Carrier some other prominent companies have announced their support for XL41 including Johnson Controls and York. With Carrier coming on board I wouldn’t be surprised if we begin to see more companies announce their support in the not too distant future.

The big distinction here and the reason companies are switching to XL41 is that it has a significantly lessened Global Warming Potential then the other alternatives out there. R-454B has a GWP of only four-hundred and sixty-seven. That is nearly eighty percent less GWP then R-410A and even thirty percent less then the proposed R-32 alternative. This very low GWP gives companies and manufacturers peace of mind knowing that they will meet future climate targets today if they make the switch. I would be apt to purchase one of these machines if I knew it was going to stand the test of time and not have to go through a phase down/phase out period.

The downside though with this newer HFO refrigerant is that ASHRAE has it rated as an A2L. The 2L is what may worry some of you, as that means that the refrigerant has lower flammability rating and a lower burning velocity. While some of you may already have experience working with lower or even mildly flammable refrigerants others may not. In reality though folks, flammable refrigerants are perfectly safe as long as you follow all of the proper precautions and safety procedures.

Conclusion

For more information on R-454B please click this link to be taken to our official fact and information sheet on the refrigerant. This sheet attempts to provide any and all information you would ever need on 454B. Rather it’s the GWP, the chemistry, what’s in the blend, the temperature glide, or anything else we aim to have it in our fact sheet. If while reading you find something that isn’t accurate or if you found that we missed something please do not hesitate to reach out to me and let me know. I want RefrigerantHQ to be a great resource for those of us in the industry and I can’t do that if I have mistakes up!

Thanks for reading,

Alec Johnson

RefrigerantHQ

Sources

It was announced last week that the State of Washington would be joining four other states in having their own HFC phase down plan. The announcement came from the desk of Governor Jay Inslee. While it is still preliminary and needs to be approved by the State Congress the hopes are high that this will be the first step in reducing HFCs across the state. The proposed plan outlines over two-hundred and seventy million dollars aimed at reducing Climate Change across Washington. Out of this allotment the HFC phase down will receive just under one million dollars. The end goal here is having HFC usage across the state down to twenty-five percent below 1990 levels by the year 2035.

As I said above, Washington will now make the fifth state with a targeted HFC phase down plan. California, like in many cases, was the first state to introduce their HFC plan and then not too much after New York announced a similar plan. The very next week after New York announced Maryland and Connecticut announced their plans. (I wrote a story about this that can be found by clicking here).

As you can see, this is the beginning of a domino effect. With each state that moves forward with an HFC phase down plan there is more and more pressure applied to manufacturers and distributors throughout the country. It doesn’t matter if you are a car manufacturer based out of Louisiana. If you’re making cars you want those cars to be able to be sold throughout all fifty states. It wouldn’t make much sense to have cars specifically targeted to one set of states and then a different car targeted to another. It’s not good business sense. Manufacturers want uniformity.

This line of thinking by manufacturers is what will allow the United States to push forward with HFC phase downs even without the Kigali Amendment ratified or the EPA’s SNAP Rule 20 in place. While we have seen quite a bit of turmoil at the Federal level we are still able to see results due to individual states pushing forward. In the case of this latest article on Washington we should also note that Washington was a founding member of what’s known as the ‘Climate Alliance.’ The Climate Alliance is a collection of sixteen states that have all agreed to work towards reducing their carbon footprint and to fighting Climate Change/Global Warming. This alliance is set to grown next year when newly elected Democratic governors from Michigan, Wisconsin, and Illinois come to office.

This alliance is the first step in phasing down HFC’s across the country. It seems to be the only feasible strategy at this point. Everything else has failed and even if we only get twenty states on board, that should be enough. All we need is enough population and buying power on board with phasing down HFCs. The moment that happens is the moment we will begin to see manufacturers switching over to alternative refrigerants. The ones that do not make the switch will see their sales and margins drop. They may have to be dragged along kicking and screaming, but in the end we all know that money talks. If you can’t sell a R-404A system to your customer in California then you’re going to look for an alternative. It’s that simple.

The only downside here I can see by having states do this on their own is that the timeline will most likely be extended. As an example, let’s look at R-134a. In the case of 134a the EPA’s targeted phase down on new vehicles was set for 2020. (2021 model years.) That regulation date has since been removed due to court rulings.

The question now though is how close will we come to EPA’s original date? Will we be a few years past, or will it take a decade for enough states to get on board? Time will tell, but if the past few months have been any indicator then I would say we can expect many more states announcing their plans to phase down HFC refrigerants.

Thanks for reading,

Alec Johnson

RefrigerantHQ

Sources

A few years back there was a lot of debate between varying refrigerant manufacturers and distributors on rather there should be tariffs installed on Chinese imported refrigerant. The argument was that China was dumping very low priced, often government subsidized, HFC refrigerants into the United States. The constant supply of imports caused the prices to shrink and shrink. This price depression ended up hurting American companies.

I remember a specific instance about eight years ago where I was working on a trailer load purchase of R-134a. (Forty cylinders to a pallet and twenty pallets on a trailer.) I called around to all of the usual players looking to get the absolute best price. Often times I would leverage one distributor against the other trying to get them as low as I could. Well during this time I was receiving quotes around the sixty dollar range. Some were high sixties, some middle, and others towards the lower end. If I was lucky I could find a distributor selling at a fifty-nine or fifty-eight dollars a cylinder.

During this same time the company I worked for was experimenting with importing their own product. We hadn’t officially done any imports, but we were testing the waters. In the case of this trailer load purchase of R-134a we went ahead and requested quotes from China. The quotes I received back were astonishing. I had three to four quotes and each and everyone was hovering around forty to forty-five dollars a cylinder. Yes, we had to pay freight to get the product over the ocean… but it was negligible when looking at that forty dollar price range. In the end we ended up going with an American distributor and paid the higher price. The import process wasn’t worth the headache to us, but to many others it was.

These drastic price differences between US and China refrigerants caused the overall price to drop and drop. This dropping price began to eat into the pockets of local distributors and manufacturers. As the years passed their margins shrunk and shrunk. If the price depression kept up then it wouldn’t make business sense to continue producing and selling domestic refrigerant. In order to correct this price depression suits were filed with the United States International Trade Commission. These suits requested an anti-dumping tariff on R-134a as well as other common HFC refrigerants. The aim was to install tariffs on Chinese imported refrigerant that would inflate the cost of these refrigerants so that they would be more in line with the American market price point. In essence, it would level the playing field and put China product on equal footing with American.

There was quite a bit of debate on these suits and they took quite a while to come to fruition. I remember watching the headlines and the moment any potential ruling would come out the price on refrigerants would jump up or down overnight. Eventually, a decision was made by the Trade Commission. In the summer of 2016 the Commission agreed to install anti-dumping tariffs on HFC refrigerant blends. The big ones here are R-410A and R-404A. While having the tariff approved was great news… there was a small problem. The tariff was ONLY on the specific blended refrigerants, so only on R-410A and R-404A. (Other blends as well.) The tariff was NOT on the components of those refrigerants. In other words, if I imported Chinese R-410A refrigerant today I would pay the tariff. However, if I import Chinese R-125 and R-32 into the US then I face no tariffs. (R-125 and R-32 blended equals R-410A.) Begin to see the problem here?

Once this ruling was announced there was a change within the industry, but it was only slight. Now all of the Chinese importers moved from purchasing R-410A over to purchasing the component refrigerants and then blending the refrigerant in house. We are now back to square one due to a governmental oversight. The good news here is that R-134a is not a blend and an anti-dumping tariff was levied against it in spring of 2017.

The Future

In an effort to change the ruling from 2016 an additional suit has been filed with the International Trade Commission. This additional suit has requested tariffs be placed on imported refrigerant blend components as well. This would include your R-125, R-32, and other similar refrigerants. What’s unique about this is that manufacturers that are usually at odds with each other are working together to stop the flow of Chinese refrigerants. Arkema, Chemours, and Honeywell have all joined and pushed this suit forward to the Trade Commission.

At this point in time we are all still waiting on a ruling from the Trade Commission. It was announced last week that the Commission needs an additional two months before a decision can be made. (Link) They gave themselves the deadline of March 11th. We’ll see if that comes to fruition or not.

While we all sit patiently and wait to see what happens here I can only imagine what will happen to the prices of these refrigerants if a tariff is installed. Yes, it may be for the good of American companies but are American consumers and contractors happily going to pay the increased price? Will the price points with tariffs be perfectly in line with what the American market is? Or, will we price the Chinese product so far out of market that we consumers will buy American be default?

Thanks for reading,

Alec Johnson

RefrigerantHQ

Sources

In an effort to build our refrigerant fact and information sheets further we have taken the time today to put together some details on the HFC R-32 refrigerant. Like in our previous fact sheets we will first go over all of the details about this refrigerant and then we will touch on some of the most notable points. Without further ado, let’s take a look:

The Facts

Name:R-32
Name - Scientific:Difluoromethane
Name (2):HFC-32
Classification:HFC Refrigerant
Chemistry:CH2F2
Chemistry (2):Carbon fluoride hydride
Chemistry (3):Methylene difluoride
Chemistry (4):Methylene fluoride
Status:Active & Growing Market.
Future:May be Phased Out in Next Ten-Twenty Years Due to GWP.
Application:Residential & Commercial Air-Conditioning.
Application (2):Industrial Refrigeration
Application (3):Key Ingredient in the R-410A Puron Blend.
Application (4):Key Ingredient to other refrigerant blends such as R-407A, R-407B, etc.
Replacement For:R-22 Freon & R-410A Puron
Ozone Depletion Potential:0
Global Warming Potential:675
Toxicity Levels:A (No Toxicity Identified.)
Flammability Levels:Class 2 - Lower Flammability
Lubricant Required:POE
Boiling Point:-52.5° Celsius or -62.0° Fahrenheit.
Critical Temperature:78.11 Celsius or 172.60° Fahrenheit
Critical Pressure:5.72 MPA or 829.62 pound-force per square inch.
Auto ignition Temperature:648° Celsius or 1,198° Fahrenheit
Manufacturers:Various Including: Honeywell, Chemours, Arkema, Mexichem, Chinese, etc.
Manufacturing Facilities:All Over Including: USA, Mexico, EU, China, and others.
Form:Gas
Color:Colorless Liquid & Vapor
EPA Certification Required:Yes, 608 certification required by January 1st, 2018.
Require Certification to Purchase?Yes, 608 certification required by January 1st, 2018.
Cylinder Color:Undefined by ASHRAE
Bulk Purchasing:CLICK FOR A QUOTE!

Thoughts on R-32

You may not know this but R-32 is one of the most popular refrigerants in the world. While you may not physically see it everyday I can assure you that it is riding in the back of your service van as you travel from customer to customer. Not sure what I mean? Well R-32 is one of the key ingredients to form R-410A Puron. So, while you may not be carrying around a cylinder of R-32 you are carrying around Puron that was made from R-32. In fact, R-32 is used in quite a bit of blends in today’s world. It is used to create various refrigerants such as: R-410A, R-407A, R-407B, R-407C, R-407D, R-407E, R-407F and R-410B. R-32 along with R-125 are some of the most versatile refrigerants used today.

While we are used to using R-32 as a blend it is also seeing a rise of usage in residential and commercial air conditioners. This rise started in the eastern countries like Japan, Korea, India, and now Australia. Japan alone has over ten million R-32 units installed and running. These countries are using R-32 as an alternative to the higher Global Warming Potential (GWP) R-410A Puron. In fact some of them just skipped right from R-22 over to R-32 and didn’t even bother with R-410A. While R-32 isn’t perfect with it’s six-hundred and seventy-five GWP it is significantly better then R-410A’s GWP of two-thousand and eighty-eight. That’s a nearly seventy percent decrease in GWP just by using R-32 over R-410A. This switch from R-410A over to R-32 has also begun to pick up speed over in the European Union. 

Over here in America though the move from 410A to 32 has been much slower. In fact you would be hard pressed to find a full residential or commercial R-32 air conditioning unit. This is mainly due to R-32 not being SNAP approved for larger air conditioning units. (SNAP approval list can be found by clicking here.) Now, I’ll be honest with you folks here. I was a bit confused when writing this article. When I looked through the EPA’s listing of refrigerants approved for home and light commercial air conditioning I didn’t find R-32 listed. However, I did find articles where R-32 units are being manufactured and used right here in the United States. The only difference that I could find was that these units being manufactured here are very small air conditioning units mainly for hotel rooms. The story from the CoolingPost can be found by clicking here. The distinction I can see here is that the smaller air conditioners used for hotels were approved by SNAP under a different application category.

While R-32 may not be listed in the EPA’s SNAP approved refrigerant it’s usage is spreading across the world. I have read many articles stating that R-32 is expected to be the standard refrigerant for home and commercial traditional split air conditioners. There are a lot of benefits to R-32, number one being reducing the carbon footprint and Global Warming Potential. Another point is that R-32 doesn’t require as high as a charge as 410A does. (Twenty percent less) So, you save money on efficiency and also when replacing the refrigerant in case of a leak or repair down the road. Another big pro on R-32 that not a lot of folks realize is that 32 is a single refrigerant. It is NOT a blended refrigerant. That simple fact can make a big difference when you go to recover, recycle, or even try to reclaim a blended refrigerant. I’ve been told by a few reclaimers that R-410A is nearly impossible to reclaim as a recovered cylinder may only contain eighty percent of one refrigerant. The reclaimer then has to tap into a virgin bottle of the missing refrigerant to get the blend back to the proper ratios. You will not have this problem with R-32.

It’s not all a bed of roses though folks. As with any refrigerant there are always upsides and downsides. In the case of R-32 the big downside is it’s safety rating. Unlike Ammonia R-717, it is not the toxicity that we need to worry about. No, in the case of R-32 it’s the flammability. Depending on where you look R-32 is either rated as a 2 or a 2L on the refrigerant flammability scale. (Our official ‘Refrigerant Toxicity & Flammability,’ article can be found by clicking here.) What this means folks is that there is risk of ignition when working with or using R-32. I’m not going to sugarcoat it here and try to sell you the refrigerant. If the refrigerant is handled improperly or if it is in too enclosed of a space then there is risk of ignition. It’s as simple as that. Obviously the larger the load of refrigerant you are dealing with the greater the risk there is. For more information on the risk of R-32 igniting click here to be taken to AirAH.org.au’s R-32 common questions page. The excerpt we’re looking for here is on page 2 under, ‘How easy is R-32 To Ignite?’

Tests carried out by Daikin and Suwa ,Tokyo University of Science show that even if combustion of R32 occurs (at concentrations of more than 320g/m3), it is not explosive and the possibility of fire spreading is extremely low. – Source

Over in the Asian countries this risk doesn’t seem to bother them and they more or less do just fine with R-32. Sure, there are always accidents but even these accidents can be non-events if everything is done properly and safely. Over here in America though there seems to be an aversion to dealing with flammable refrigerants such as R-32 and R-290. I’m not sure if this is just a fear of the unknown, resistance to change, or if there just no market for it. Perhaps in the future, the EPA will lift some restrictions on R-32 and techs will begin to get a feel for these flammable refrigerants.

I may have mentioned this before, but it should be brought up again. While R-32 is being marketed as a great alternative to R-410A you should know that R-32 cannot be dropped in as a replacement in an existing R-410A system. If you or your customer wants to go the R-32 route then they will need to purchase a new system specifically designed to run R-32. If you do not then you risk damaging your entire system by putting the wrong refrigerant in it. You wouldn’t put diesel in a Ford Focus would you? The same principle applies. Your 410A air conditioner is specifically made to handle 410A and your 32 system is specifically designed to handle 32. It is also worth mentioning that you should NOT attempt to retrofit a 410A unit over to 32. It is simply not safe. This is because of the 2L flammability rating. The components of an 410A machine were simply not built to safely handle flammable refrigerants. You can read more about reasons NOT to retrofit by clicking here.

The last thing I want to mention on R-32 is that it is not a miracle refrigerant. As we all know each refrigerants has it’s ups and downs. The only reason R-32 looks so sexy right now is it’s lower Global Warming Potential when compared to R-410A. But, when we are done with 410A, or when something sexier comes along, the world will drop R-32 just like it is beginning to drop R-410A. I don’t see 410A lasting another fifteen years with the ways thing are going. R-32 will be close behind it as well. While everyone is pushing for R-32 right now I am stand back from the crowd with skepticism. I predict R-32 will be gone in another twenty years. Is it worth it to the climate, the business owners, and the consumers to purchase a whole new generation of R-32 machines just to see them phased out in another ten or fifteen years?

As to what R-32 will be replaced with, I have no idea. Your guess is as good as mine. Perhaps we will see a natural refrigerant come to rise. There is always new technology being developed to accommodate these natural refrigerants and with these new technologies we are able to easily apply natural refrigerants where it was once impossible. One example off the top of my head is Daimler using R-744 Carbon Dioxide in automotive applications. Rewind ten years ago and no one had heard of such a thing. Now it is in quite a few Daimler model vehicles. Maybe instead of natural refrigerants the next generation of home and commercial air conditioners will see a refrigerant that just hasn’t been invented yet. Perhaps it is a new HFO refrigerant being developed in a lab right now by Chemours or Honeywell. Time will only tell.

Conclusion

Well folks that about covers it for R-32 refrigerant. No matter where you are in the world the chances are you or someone near you are using R-32 or they areusing an R-32 origin based blend. While it does have a much less Global Warming number then 410A I still do not see it standing the test of time. Six-hundred and seventy-five GWP is still just too much. For the foreseeable future though folks we should get used to seeing R-32.

Thanks for reading and if you found anything that was inaccurate or that was simply not stated please contact me and I will update this article.

Alec Johnson

RefrigerantHQ

Sources

Not a lot of you may have heard the term or name Puron before. But a lot of you have most likely heard the name Freon before. Freon and Puron are two different types of refrigerant and to understand this difference we first need to understand where these names come from. First, let’s take a look at Freon.

The term Freon is actually a brand name trademarked by the DuPont, now Chemours, corporation. What that means is that Freon is a brand of refrigerant. It is the same way that Dr. Pepper is a brand of soda. We don’t call every soda out there Dr. Pepper. No, we either call it soda or we call it by it’s proper brand name. The same can be said about refrigerants.

Freon is a brand name of a specific type of refrigerant, mainly R-12 and R-22. The term Puron is also a brand name. The Puron brand refers to the HFC refrigerant R-410A. R-410A is the refrigerant that has replaced Freon R-22. You see, R-22 Freon was phased down across the country due to the Chlorine that it contained. When vented into the atmosphere the Chlorine would damage the Ozone layer. In order to stop this R-22 Freon was phased down and was replaced with the non Ozone depleting Puron R-410A.

Puron, or R-410A, is a blended HFC refrigerant that is made up of R-32 and R-125. (About fifty percent of each.) This 410A refrigerant is now the primary default for home and commercial air conditioners. Any air conditioner manufactured in 2010 or newer will most likely be using R-410A Puron. If you’re unsure what refrigerant your system uses you can find out by checking the sticker label on your outside unit.

While Puron is the ‘king’ refrigerant right now (2018) it may not stay on the throne forever. Puron doesn’t have an Ozone depletion potential but it does have a very high Global Warming Potential, or GWP. GWP is a measurement of how much a certain chemical contributes to Global Warming. The higher the GWP the more damage a chemical or refrigerant can do to the environment.

As I write this article there isn’t a preferred successor to R-410A but there are some contenders out there such as the HFC R-32. No one knows for certain when, or even if, R-410A Puron will be phased down or not. For now, we carry on with 410A.

Thanks for reading,

Alec Johnson

RefrigerantHQ

United States Climate Alliance
Back in September of this year the Environmental Protection Agency announced that they would be removing their HFC rule that went in place back in September of 2016. This rule, which can be found by clicking here, applied Section 608 CFC/HCFC leak controls and regulations to appliances using HFC refrigerants that contained over fifty pounds of refrigerant. Basically, it passed on the same regulations that we had on CFC/HCFC refrigerants over to HFCs. With the introduction of this proposed rule there was also a forty-five day comment period for individuals, companies, and yes… States to comment on. The deadline for this comment period was yesterday, the 15th. Lo and behold, a nicely written ‘comment’ was sent to the EPA on the 15th.

This comment, actually a letter, was created by what’s known as the United States Climate Alliance, or USCA. This alliance is a mixture of various States that came together when the Trump Administration announced that they were pulling out of the Paris Climate Accord. These sixteen States include New York, Washington, New Jersey, Oregon, and California. In fact, the letter was signed and sent by the Attorney General of California, Xavier Becerra. The letter, which can be found by clicking here, requests that the EPA withdraw it’s proposed rule changes and keep current regulations intact.

The argument for this withdrawal is that the EPA has not provided sufficient evidence or legal reasoning for the reversal of their 2016 rule. I’ll tell you right now that I am trying to remain neutral here but the EPA has provided reasoning as to why they are rolling back these leak regulations. The reasoning is simple. The Clean Air Act and the Montreal Protocol were all designed to phase out Ozone depleting refrigerants. These are your CFCs and HCFCs such as R-12, R-22, and R-502. The Clean Air Act was not intended to phase down or regulate refrigerants that do not harm the Ozone layer. Yes, HFCs do contribute significantly to Global Warming due to their high Global Warming Potential but there is a distinction here between Global Warming and a damaged Ozone layer. This distinction is the reasoning that the EPA is using for their roll back. This reasoning though is not sufficient for the States in the Climate Alliance.

Rather you like it or not, the truth is that the initial 2016 rule should not have been issued based off of the Clean Air Act. It was a stretch and everyone knew it. It was done because it was easy, but just like building a house: If you don’t have a good foundation then your house is going to crumble. The same thing has happened again and again on HFCs. We have had Federal Courts overturning EPA HFC regulations and now the Trump controlled EPA  is looking at overturning HFC regulations based off of Ozone depleting laws. All this could have been preventable by going through Congress.

Another point that I noticed while reading this letter from California is that there are many references and out right assumptions that the Ozone will be affected if these regulations are rolled back. That is simply not the case. It looks to me like they are trying to muddy the waters here so that when a laymen reads through this they end up believing that the Ozone is in danger yet again. Please do not take my criticism here as a favor for one side of the other, instead I am just bringing forward the facts from both sides.

Conclusion

Now that the comment period is over I imagine that we will have to sit and be patient as the Environmental Protection Agency reviews any and all comments on their new rule… including this letter from the Climate Alliance. At this time what the EPA will decide is unknown, but if I was to put money on it then I would say that they are going to move forward with rescinding the leak regulations. You may not agree with it, but that is where the winds are blowing today.

On top of that, I wouldn’t be surprised if we see the refrigerant purchase restrictions on HFCs be removed soon as well. Even though this purchase restriction has only been in effect since January of this year it was a holdover from the Obama EPA and may end up on the chopping block as well.

If the EPA does decide to remove these regulations then the burden of regulation will fall to the States just like it has with the EPA’s SNAP Rule 20. There have already been a few States that have announced their own HFC phase down plans. Depending on what the EPA decides we may see many more join this Climate Alliance and work to phase down HFCs at the State level.

Thanks for reading,

Alec Johnson

RefrigerantHQ

Sources

 

Pricing Prediction
Here it is in the middle of November and we’ve already had two snow storms here in Kansas City. As I write this article this morning the snow is still coming down. Luckily, I have the day off and am able to stay inside and watch the snow fall. Over the past few weeks here at RefrigerantHQ we have been focusing on our refrigerant prediction articles for the 2019 year. Most everyone was interested in our R-22 thoughts, and a bit of you read the 410A. I know that R-404A is a smaller market, but it still has it’s uses and is still kept the back of a technician’s van… even if it’s going to be phased out soon.

Last year in our 2018 prediction article we said that prices would be around one-hundred and sixty dollars a cylinder. Well folks, just like we were with R-410A… we were way off again. Today the price on a pallet of 404A is between eighty to ninety dollars a cylinder. So, the cost is about half of what I predicted it would be. This just goes to show you how much of a guessing game this all is. Again, like with R-410A, our increased cost prediction came from the shortage of Flurospar that we saw in the spring of 2017. For those that do not know, Flurospar is a key ingredient when manufacturing the refrigerant R-125 and R-125 is a key ingredient in the blended refrigerant R-404A. (R-404A is a blend of R-125, R-143a, and R-134a.) So, when Flurospar prices go up so does the cost of R-404A. Back in 2017 the shortage occurred due to environmental regulation changes in China. This was a one time change and the industry needed to adapt. For now, the market seems to have adjusted and the shortage has come to an end.

The question now though folks is what will the pricing do next year? Will R-404A keep going lower? Will it stay put? Or, will we see it climb back to the higher priced levels that most of are used to?

Considerations

I’ve mentioned this countless times before, but when I do a prediction article I like to take into consideration certain factors. I don’t like to just throw a dart on the board. No, instead I like to do an analysis and take a look at the marketplace. Once we determine these factors we can then determine what the market will do. Or, at the minimum, we can provide an educated guess. For those of you who read my R-410A prediction article you may notice that some of these considerations are the same for R-404A. That is by design folks. Remember, that R-125 is a key ingredient in both refrigerants. The key difference is that 410A is much more popular then 404A and that 404A is one of the first global targeted refrigerants to be phased down.

Let’s take a look at some of the considerations that can affect the R-404A price next year.

Repeal of EPA’s SNAP Rule 20

I’ve written about this extensively over the past few months, but in August of last year a Federal Court overturned the EPA’s planned phase down of HFC refrigerants across the country. While there were many appeals done over the past year each one of them has failed. That includes an appeal to the Supreme Court. What we are left with now is a patchwork of States putting together their own HFC phase downs. The reason I mention this as a consideration is that R-404A was one of the first targeted HFCs to be phased down. This is due to the extremely high GWP of 404A. (Three-thousand nine-hundred and twenty-two.) Most everyone was expecting the 404A phase downs to begin very soon, but now everything is in question and that can cause price instability.

Flurospar Shortage

I mentioned this earlier in our previous section. If we travel back about eighteen months ago this was a HUGE deal. The majority of the world’s Flurospar comes with mines in China. During the spring and summer of 2017 there were governmental regulation changes that affected the efficiency and overall output of the mines. This lower output is what accounted for the world’s shortage. In my previous analysis I assumed this shortage would carry into 2018, but I was incorrect. Will we see a shortage though in 2019? It is impossible to say. The only thing I can point to is the overall stability of the Flurospar market over the past year.

Chinese Refrigerant Imports

Back in 2016 there was an anti-dumping tariff instigated against Chinese HFC refrigerant blends. Included in this tariff was R-404A. I won’t get into all of the details here, but essentially there was a tariff put on R-404A. (For more information on the tariff click here to be taken to TheCoolingPost.) Here’s the thing though folks, this tariff was installed on ONLY the R-404A blended refrigerant and NOT the components of the blend. In other words R-404A was taxed but R-125, R-143a, and R-134a was not. (Well, R-134a was taxed, but through a different tariff.)

Refrigerant distributors took advantage of this loophole and began importing mass quantities of R-125. Once imported they would then blend the refrigerants in their own facility. The dumping of cheap HFC refrigerants continued. This mass import of Chinese product has attributed to the lower cost of R-404A that we are seeing today. Tom Lenz of Lenz Sales & Distribution said,

The price on 404A has been relatively stable over the past few months. Most of the time it stays right above 410A at around fifteen to twenty dollars higher. (A cylinder) Some distributors mix in house while others buy in bulk from China.

Trump & His Tariffs

Most of the country has felt the effects of the various tariffs that the Trump Administration has issued over the past year. This could either be through your employer or just paying for basic things. In my day job I had to travel to Belgium a few months back to work with our corporate office. The reason for the trip? Trump’s Tariffs and how to enact them throughout the company. Whatever your politics are, we can definitely say that these tariffs have had an impact. Refrigerant, for the most part, has been left unscathed on these tariffs. With all of these imports coming from China though, how long is it before a tariff is enacted? What if one is enforced on R-125? How will that effect the marketplace? Inevitably it will lead to higher prices, but how much?

Prediction

I’ve been doing these refrigerant pricing articles for nearly four years now and over those years I have been able to gather a historical pricing tracker on R-404A. This tracker allows us to see trends and possibly what’s to come next.

  • 2015 – $90.00 – Source
  • 2016 – $110.00 – Source
  • 2017 – $200.00 – Source
  • 2017 (Winter) – $175.00  – (Ebay.com)
  • 2018 (Fall/Winter) – $80-90 a cylinder.
  • 2018 (Fall/Winter) Retail – $150.00 – (Ebay.com)

Our previous articles had focused more on the retail side of pricing as you can see from the above historical records. However, this year I wanted to focus more on wholesale pricing. That is why I included the $80-$90 a cylinder section for 2018. The question now on everyone’s mind is what will 404A do next year? Like with my other articles I have consulted with experts and distributors within the industry for their thoughts. The consensus that I received was that the price would remain relatively stable over this winter and into the summer of next year. The only wildcard out there that I am aware of are Trump’s Tariffs. If he installs a tariff on refrigerants, say R-125, we could see price rise substantially. If no tariffs are instigated then I could see the price remain stable.

Our prediction on R-404A next year is right around the same price we have today between eighty to ninety dollars for a twenty-four pound cylinder.  The market should remain stable throughout next year, especially due to the EPA’s Rule 20 being rescinded. Chad Schnuelle of Refrigerants Inc said,

It seems that 404 has been rather stable for the past two years. I checked my purchase history and it has not moved over twenty dollars per 24lb cylinder since January of 2017. Again, I feel the Chinese market still dictates the USA market. In my opinion I feel the only factor that may change the price will be if refrigerants are added to the Trump tax.

Conclusion

I want to close this article by stating that this was a prediction and it is just that, a guess. No one knows for sure what will happen to the R-404A market next year and if they say they do then they’re lying. It’s a complete guessing game. I can only provide my analysis on the matter and go from there. Lastly, I want to mention that this is one man’s analysis on the market. We here at RefrigerantHQ are not liable for any business losses or gains when it comes to buying and selling R-404A.

Thanks for reading,

Alec Johnson

RefrigerantHQ

Owner

How Much Does It Cost?
The term Freon is used all over the country to describe the refrigerant that is used in their home, commercial, or vehicle air conditioner. Even though it is used by man the term Freon is actually antiquated and is very rarely used within the HVAC industry. Chances are your air conditioner that you are using right now doesn’t contain Freon.

In fact, the word Freon is actually a brand name from the DuPont, now Chemours, refrigerant company. Yes, that’s right. Freon is just like Coca-Cola or Pepsi. Freon is a brand of refrigerant. There are many brands of refrigerant out there today but the reason we associate Freon with everyone is that Freon was the first mainstream refrigerant that can be traced all the way back to the 1930’s. At that time DuPont and General Motors teamed up together to form R-12 and R-22 refrigerants. These new refrigerants were the first mass produced and widely used refrigerant and air conditioning technologies in the world. DuPont branded these new refrigerants under their trademarked brand name, ‘Freon.’ The Freon refrigerants exploded in popularity and just a few decades later they could be found in nearly every home and office across the country.

All of this changed in the late 1970’s and early 1980’s when a team of scientists discovered that these Freon refrigerants contained Chlorine and Chlorine was leaking into the atmosphere and damaging the Ozone layer. Realizing this, hundreds of countries signed what’s known as the Montreal Protocol. This protocol phased out CFC and HCFC refrigerants across the globe. Included in these phased out refrigerants were DuPont’s ever popular ‘Freon’ brand name.

So, What Kind of Refrigerant Do I Need?

Ok, so the old Freon refrigerants are nearly gone nowadays. Yes, there are still some R-22 units out there and some people still need them but R-22 machines were phased out in 2010 so that means at their youngest an R-22 unit is already nine years old. They are quickly approaching the end of their life. The term Freon will be going away with it. So, now the question is what kind of refrigerant do you need? Let’s take a look:

Automotive Application – Nowadays nearly every vehicle is using R-134a refrigerant for their vehicles. In recent years a new refrigerant known as HFO-1234yf is being used on newer models. If you car is a few years old you will need to check if it takes 1234yf or not. Otherwise you are fairly safe to assume that your car is taking R-134a.

Home or Commercial Air Conditioner – These ones can be a little tricky. Depending on when you got your unit you most likely either have an R-22 unit or a R-410A unit. As I said before R-22 was phased out in 2010 for new units. R-410A has been around since 2010 but it’s popularity didn’t really take off until the 2010 deadline hit for R-22.

Refrigerators and Freezers (Home and Commercial) – The go to refrigerant for these applications has been R-404A. There are some other alternatives out there such as CO2 (R-744), R-502, and some other new HFO refrigerants coming out soon.

Conclusion

I hope that this article was able to answer your questions on refrigerant pricing and to also open your eyes on the wide variety there is within the refrigerant industry. There are two things that I want you take from this post. The first is the relative price per pound of the refrigerant you need and the second is the understanding that your contractor needs to make money too. Sure, you might know his price but you should not haggle down to zero. You should negotiate to a fair price that allows profit but also prevents gouging.

Lastly, if you are unsure what type of refrigerant your system needs please check the label/sticker on the machine. Normally it will state the refrigerant that it takes. However, if you still can’t find it then you can either contact the manufacturer or you can call a HVAC professional out to take a look. This is never something that you want to guess at.

Thanks for reading and visiting my site,

Alec Johnson

RefrigerantHQ

How Much Does It Cost?
Most people couldn’t care less about the pricing of refrigerant. I’m sure you didn’t care at all until your air conditioner broke down. Now you have a contractor at your home or office looking over the damage, or perhaps you have already received a quote from them and you are a little surprised by how much they are charging for refrigerant. Whatever your reason is for reading this article we are going to do our best to answer your question and to give you a fair estimate on what the going price per pound on some of the most common refrigerants on the market place today.

First and foremost, let me first explain that there are hundreds of different types of refrigerants out there. No two refrigerants are the same or work the same either. The air conditioner that you are using is designed specifically for a certain refrigerant and no others. The science of refrigeration and air conditioning all boils down to basic chemistry and understanding when a refrigerant changes states either from gas to liquid or liquid to gas. Each machine is designed to accomdate that refrigernat’s specific saturation point. If you were to add the wrong refrigerant to your air conditioner you could damage or even destroy the system. You wouldn’t put diesel into a gasoline sedan would you? The same principle applies.

In this article we are going to go over some of the most popular refrigerants out there today, their applications, and where they can be found. It will be up to you to determine exactly what refrigerant you need for your repairs.

So, What Kind of Refrigerant Do I Need?

As we mentioned above, there are hundreds of varying kinds of refrigerants out there. A lot of times this can be overwhelming and confusing to a laymen as to what kind of refrigerant they need. The good news here is that for most applications there are only a select few refrigerants that are used here in the United States. In this section below we are going to highlight the most commonly used refrigerants, what their applications are, and what their price per pound is. The price per pound section will have a link to the exact price per pound on that refrigerant.

Let’s dive in and take a look:

  • Automotive Application – Nowadays nearly every vehicle is using R-134a refrigerant for their vehicles. In recent years a new refrigerant known as HFO-1234yf is being used on newer models. If you car is a few years old or brand new then you will need to check if it takes 1234yf or not. Otherwise you are fairly safe to assume that your car is taking R-134a. For those of you who are into restoring classic cars you’ll find that you may end up needing R-12 Freon.
  • Home or Commercial Air Conditioner – These ones can be a little tricky. Depending on when you got your unit you most likely either have an R-22 unit or a R-410A unit. As I said in previous articles, R-22 was phased out in 2010 for new air conditioners. R-410A has been around since 2000, but it’s popularity didn’t really take off until the 2010 deadline hit for R-22. When it comes to cost though you better hope you have a R-410A unit rather than R-22. The difference in price between the two refrigerants is astonishing.
  • Refrigerators and Freezers (Home and Commercial) – The go to refrigerant for these applications has been R-404A. There are some other alternatives out there such as CO2 (R-744), R-502, and some other new HFO refrigerants coming out soon but today if you were having to recharge one of these you are most likely going to run into 404A.

Conclusion

I hope that this article was able to answer your questions on refrigerant pricing and to also open your eyes on the wide variety there is within the refrigerant industry. There are two things that I want you take from this post. The first is the relative price per pound of the refrigerant you need and the second is the understanding that your contractor needs to make money too. Sure, you might know his price but you should not haggle down to zero. You should negotiate to a fair price that allows profit but also prevents gouging.

Lastly, if you are unsure what type of refrigerant your system needs please check the label/sticker on the machine. Normally it will state the refrigerant that it takes. However, if you still can’t find it then you can either contact the manufacturer or you can call a HVAC professional out to take a look. This is never something that you want to guess at.

Thanks for reading and visiting my site,

Alec Johnson

RefrigerantHQ

How Much Does It Cost?
Hello folks, and welcome to RefrigerantHQ. As I write this article in early November the cold has just now set in. We even have some snow expected in a few days over here in Kansas City. Right now I am watching this cold day from my living room window. I can see the leaves blow by while I sip on my coffee. While I stare out my window I can’t help but think about refrigerant. Yes, you heard me right. Over here at RefrigerantHQ we always have refrigerant on the mind and today with this no article is no different.

Over the past few years here at RefrigerantHQ we have taken the time to write what’s known as our ‘Price Per Pound’ articles. These articles break down the cost of refrigerant so any laymen can understand it. It takes away that hidden cost and brings it out into the light. The goal of these articles is to arm the homeowner or business owner with enough knowledge so that when they receive a quote for R-404A they know where the price should be. This prevents people from being gouged and overcharged, especially during the dead heat of summer.

Now before we go any further into this post I first want to give you a warning that I can be rather long winded. All of this information is good and relevant to your situation, BUT if you are just looking for a basic price per pound price then I suggest you just scroll on down to our ‘Price Per Pound’ section. However, if you’re looking to learn a bit more about your air conditioner then by all means keep reading.

Know This Before Purchasing

Purchasing refrigerant from your contractor isn’t always black and white. There are different factors that need to be considered before you purchase. In this section we are going to take a look at each of these:

You Are Paying For Expertise

Ok folks, so the information that I am going to give you in our ‘Price Per Pound’ section is very nearly, if not exactly, the cost that your contractor is paying for their R-404A refrigerant. What that means is that you can expect a markup. After all, the technician and the HVAC contractor need to make money as well. This is a specialized trade and requires trained expertise in order to succeed in. Thinking that you can do this yourself is never a good ideas as there are a lot of intricacies that need to be accounted for. As an example, let’s go through and ask a few simple questions that a technician would either have to do or consider:

  • Do you know how to flush your system?
  • Do you know what refrigerants can be vented?
  • Do you know what the Superheat and Subcool are for R-404A?
  • Are you 608 certified with the EPA to handle HFC refrigerants?
  • Do you know how to find, let alone fix, a refrigerant leak?

All of these questions and more are what you are paying your contractor for. Remember that they need to make money too, but there is also a fine line between having profit and gouging. Reading this article, and reviewing the price per pound, will allow you to be educated and give you the power to negotiate the price of refrigerant.

Your AC Unit is a Closed System

Refrigerant Cycle in a Closed System
Refrigerant Cycle in a Closed System

Even before you have a contractor come to your home and look at your air conditioner you should be aware that air conditioners are what’s known as closed systems. What that means is that the refrigerant in your air conditioner moves back and forth between different cycles and it, in theory, never runs out or needs refrigerant refilled.

If you find that your unit is low on refrigerant or is completely out do NOT just refill your machine with a new refrigerant. I repeat do NOT do this. Your system does not need a top off. It does not need just a little bit more refrigerant to get by. No. If you are running out of refrigerant that means that somewhere in the refrigerant cycle there is a leak. Your unit is leaking refrigerant and will continue to leak refrigerant until a repair is made. If you dump more refrigerant into it without fixing the leak you are literally throwing money down the drain. Potentially a lot of money too if yours is an R-22 unit.

I like to think of it as a above ground pool. If you get a puncture in the pool lining water will leak out. Sure you can always add more water but it’s not fixing the problem. Adding more refrigerant doesn’t fix the problem either. It’s just prolong the inevitable and wasting money.

Purchase Restrictions

Up until last year there were a lot of homeowners and business owners who were purchasing their own R-404A refrigerant cylinders. They would do this either through big box stores or through online outlets like Amazon or Ebay. This all changed on January 1st, 2018. On that day the Environmental Protection Agency enforced a new rule known as ‘Refrigerant Restrictions.’ These restrictions already existed on HCFC and CFC refrigerants but they were now moved over to HFC refrigerants as well. This included R-404A. What this means is that you are no longer legally able to purchase R-404A unless you are 608 certified with the EPA. Now, there are a few slight exceptions to this such as:

  1. Providing the vendor you are buying from with an intent to resale form. What this means is that you state that you will NOT be using this refrigerant yourself but that you intend to resell it to another party. In this case the legal record keeping requirements would be passed onto you.
  2. The other exception is that if you purchase small cans of refrigerant that are under two pounds of refrigerant or less. This works great for automotive applications but can be difficult when trying to recharge your system with only a few pounds of refrigerant at a time.

If you do not meet the above exceptions and you try to purchase R-404A you will be asked for your 608 license number. If you cannot provide one then you will not be allowed to purchase. For more on the Refrigerant Sales Restriction click here to be taken to the Environmental Protection Agency’s official website.

R-410A Price Per Pound

Alright folks, now that we have that out of the way let’s dive in and find the true price per pound of R-404A refrigerant. Let me paint a picture for you. Let’s say your air conditioner/refrigerator/freezer is no longer working due to an unknown failure. When the technician comes out he identifies the problem and quotes you for the repair. The problem though is that the failure of your air conditioner caused all of your refrigerant to leak out. Now on top of your part replacement you also need to pay for a full refrigerant recharge.

I could tell you the price today, which I will in a bit, but I will also give you kind of a cheat sheet that I like to use when gauging the R-404A market price. It’s so simple. All I do is just go to Ebay.com and search for R-404A cylinders.  By doing this I can see what the going rate is per pound of R-404A. As I write this article today I can see that R-404A is priced between one-hundred and forty to one-hundred and sixty dollars for a twenty-four pound cylinder. Now, let’s do some simple math to get your price per pound. Let’s take the higher amount of one-hundred and sixty dollars just to be safe.

$160 / 24lb cylinder = $6.67 per pound.

There you have it folks, $6.67 for one pound of R-404A refrigerant. Now, please keep in mind that as I said above these prices can change at any given time. To give you a bit more help I have also included a feed from our Ebay partner below that shows you the current market price of R-404A:

R-404A - 404a - R404- R404a - Refrigerant 24 LB Cylinder - MADE IN USA

$148.99
End Date: Thursday Feb-14-2019 10:42:46 PST
Buy It Now for only: $148.99
Buy It Now | Add to watch list

24 lb. cylinder R404A R-404A Refrigerant Freon New / Factory Sealed

$149.00
End Date: Tuesday Jan-22-2019 8:20:14 PST
Buy It Now for only: $149.00
Buy It Now | Add to watch list

R404a, R404 Refrigerant 24lb Cylinder * Lowest Price on Ebay *

$128.99
End Date: Wednesday Feb-6-2019 12:49:40 PST
Buy It Now for only: $128.99
Buy It Now | Add to watch list

Conclusion

There you have it folks, that is the true cost per pound of R-404A refrigerant. I have said it already in the beginning of this article but I want to emphasize again that you may not pay the price we mentioned above due to your contractor’s markup. They deserve to make money as well and they deserve to be paid for their expertise. Just keep this article in the back of your mind so that when you do receive a quote you can ensure that you are receiving an accurate and fair price.

Thanks for reading,

Alec Johnson

RefrigerantHQ

How Much Does It Cost?
It’s that time of year again folks. The leaves are falling off the trees, Halloween has passed, and we are having our first cold day of the year over here in Kansas City. While I watch the cold day from my window I sit at my desk drinking some coffee and thinking about refrigerant. Yes… that’s right. I’m thinking about refrigerant at this time of year. That’s just what we do here at RefrigerantHQ. While the refrigerant market may die down around this time of year the articles still need to be published.

Over the past few years here at RefrigerantHQ we have taken the time to write what’s known as our ‘Price Per Pound’ articles. These articles break down the cost of refrigerant so any laymen can understand it. It takes away that hidden cost and brings it out into the light. The goal of these articles is to arm the homeowner or business owner with enough knowledge so that when they receive a quote for R-134a they know where the price should be. This prevents people from being gouged and overcharged, especially during the dead heat of summer.

Now before we go any further into this post I first want to give you a warning that I can be rather long winded. All of this information is good and relevant to your situation, BUT if you are just looking for a basic price per pound price then I suggest you just scroll on down to our ‘Price Per Pound’ section. However, if you’re looking to learn a bit more about your air conditioner then by all means keep reading.

Know This Before Purchasing

Purchasing refrigerant from your contractor isn’t always black and white. There are different factors that need to be considered before you purchase. In this section we are going to take a look at each of these:

You Are Paying For Expertise

Ok folks, so the information that I am going to give you in our ‘Price Per Pound’ section is very nearly, if not exactly, the cost that your technician is paying for their R-134a refrigerant. What that means is that you can expect a markup. After all, the technician and the dealership need to make money as well. This is a specialized trade and requires trained expertise in order to succeed in. Thinking that you can do this yourself is never a good idea as there are a lot of intricacies that need to be accounted for. As an example, let’s go through and ask a few simple questions that a technician would either have to do or consider:

  • Do you know how to flush your system?
  • Do you know what refrigerants can be vented?
  • Are you 609 certified with the EPA to handle HFC refrigerants?
  • Do you know how to find, let alone fix, a refrigerant leak?

All of these questions and more are what you are paying your technician for. Remember that they need to make money too, but there is also a fine line between having profit and gouging. Reading this article, and reviewing the price per pound, will allow you to be educated and give you the power to negotiate the price of refrigerant.

Your AC Unit is a Closed System

Refrigerant Cycle in a Closed System
Refrigerant Cycle in a Closed System

Even before you bring your car into the dealership to look at the air conditioner you should be aware that air conditioners are what’s known as closed systems. What that means is that the refrigerant in your air conditioner moves back and forth between different cycles and it, in theory, never runs out or needs refrigerant refilled.

If you find that your unit is low on refrigerant or is completely out do NOT just refill your machine with a new refrigerant. I repeat do NOT do this. Your system does not need a top off. It does not need just a little bit more refrigerant to get by. No. If you are running out of refrigerant that means that somewhere in the refrigerant cycle there is a leak. Your unit is leaking refrigerant and will continue to leak refrigerant until a repair is made. If you dump more refrigerant into it without fixing the leak you are literally throwing money down the drain.

I like to think of it as a above ground pool. If you get a puncture in the pool lining water will leak out. Sure you can always add more water but it’s not fixing the problem. Adding more refrigerant doesn’t fix the problem either. It’s just prolong the inevitable and wasting money.

R-134a Price Per Pound

Ok, now we are ready to take a look at the price per pound of R-134a. First, let me paint a picture for you. Let’s say the air conditioner on your new vehicle went out and you just went past the warranty period. What can you expect repair wise? Well, you will need to repair and replace the part that failed but you will also most likely need to have the refrigerant recharged for your vehicle. But, what price should you pay?

I could tell you the price today, which I will in a bit, but I will also give you kind of a cheat sheet that I like to use when gauging the R-134a market price. It’s so simple. All I do is just go to Ebay.com and search for R-134a cans.  By doing this I can see what the going rate is per pound of R-134a. As I write this article today I can see that R-134a is priced between one-hundred and forty to one-hundred and sixty dollars for a thirty pound cylinder. Now, let’s do some simple math to get your price per pound. Let’s take the higher amount of one-hundred and sixty just to be safe.

$160 / 30lb cylinder = $5.33 per pound.

There you have it folks, $5.33 for one pound of R-134a refrigerant. Now, please keep in mind that these prices CAN change. To give you a bit more help I have also included a feed from our Ebay partner below that shows you the current market price of R-134a:

R134A Refrigerant - R134A - 30lb Cylinder NEW SEALED

$149.97
End Date: Sunday Feb-17-2019 17:06:45 PST
Buy It Now for only: $149.97
Buy It Now | Add to watch list

R134a Refrigerant 30lbs Cylinder 30lb - EPA Certification Required

$155.00
End Date: Friday Feb-15-2019 11:21:05 PST
Buy It Now for only: $155.00
Buy It Now | Add to watch list

Automotive Refrigerant 30 Lb. Cylinder (R-134A-30)

$139.99
End Date: Friday Jan-25-2019 11:31:49 PST
Buy It Now for only: $139.99
Buy It Now | Add to watch list

Now each car is different and the amount of refrigerant that they need can be different as well. Some only require one pound and others upwards of eight to nine pounds. It is always best to check your owner’s manual or your dealership to see how much you need. In our example we’re going to call it three pounds of refrigerant to get a complete fill up of your vehicle.

3 pounds of refrigerant * $5.33 per pound = $15.99 for a complete fill up.

Conclusion

There you have it folks, that is the true cost per pound of R-134a refrigerant. I have said it already in the beginning of this article but I want to emphasize again that you may not pay the price we mentioned above due to your dealership’s markup. They deserve to make money as well and they deserve to be paid for their expertise. Just keep this article in the back of your mind so that when you do receive a quote you can ensure that you are receiving an accurate and fair price.

If you do find that you are being gouged and the dealership won’t budge then you may be able to run by a local auto-parts store to see if they have any 134a cans in stock. If they do, then you could save some money by providing the refrigerant to the dealership.

Thanks for reading,

Alec Johnson

RefrigerantHQ

How Much Does It Cost?
Hello folks and welcome to RefrigerantHQ. As I write this article today Halloween has just passed and the weather has already begun to get cold. We’re expecting snow in just a few days here in Kansas City. All of this is happening outside and here I am sitting at my desk, sipping on some hot cocoa, and thinking about refrigerant. Yes, I know that sounds rather odd… but that is what we do here at RefrigerantHQ. Refrigerant all the time. Today I am thinking about R-410A. What can we expect from it next year? What will consumers be paying for it?

Over the past few years here at RefrigerantHQ we have taken the time to write what’s known as our ‘Price Per Pound’ articles. These articles break down the cost of refrigerant so any laymen can understand it. It takes away that hidden cost and brings it out into the light. The goal of these articles is to arm the homeowner or business owner with enough knowledge so that when they receive a quote for R-410A they know where the price should be. This prevents people from being gouged and overcharged, especially during the dead heat of summer.

Now before we go any further into this post I first want to give you a warning that I can be rather long winded. All of this information is good and relevant to your situation, BUT if you are just looking for a basic price per pound price then I suggest you just scroll on down to our ‘Price Per Pound’ section. However, if you’re looking to learn a bit more about your air conditioner then by all means keep reading.

Know This Before Purchasing

Purchasing refrigerant from your contractor isn’t always black and white. There are different factors that need to be considered before you purchase. In this section we are going to take a look at each of these:

You Are Paying For Expertise

Ok folks, so the information that I am going to give you in our ‘Price Per Pound’ section is very nearly, if not exactly, the cost that your contractor is paying for their R-410A refrigerant. What that means is that you can expect a markup. After all, the technician and the HVAC contractor need to make money as well. This is a specialized trade and requires trained expertise in order to succeed in. Thinking that you can do this yourself is never a good ideas as there are a lot of intricacies that need to be accounted for. As an example, let’s go through and ask a few simple questions that a technician would either have to do or consider:

  • Do you know how to flush your system?
  • Do you know what refrigerants can be vented?
  • Do you know what the Superheat and Subcool are for R-410A?
  • Are you 608 certified with the EPA to handle HFC refrigerants?
  • Do you know how to find, let alone fix, a refrigerant leak?

All of these questions and more are what you are paying your contractor for. Remember that they need to make money too, but there is also a fine line between having profit and gouging. Reading this article, and reviewing the price per pound, will allow you to be educated and give you the power to negotiate the price of refrigerant.

Your AC Unit is a Closed System

Refrigerant Cycle in a Closed System
Refrigerant Cycle in a Closed System

Even before you have a contractor come to your home and look at your air conditioner you should be aware that air conditioners are what’s known as closed systems. What that means is that the refrigerant in your air conditioner moves back and forth between different cycles and it, in theory, never runs out or needs refrigerant refilled.

If you find that your unit is low on refrigerant or is completely out do NOT just refill your machine with a new refrigerant. I repeat do NOT do this. Your system does not need a top off. It does not need just a little bit more refrigerant to get by. No. If you are running out of refrigerant that means that somewhere in the refrigerant cycle there is a leak. Your unit is leaking refrigerant and will continue to leak refrigerant until a repair is made. If you dump more refrigerant into it without fixing the leak you are literally throwing money down the drain. Potentially a lot of money too if yours is an R-22 unit.

I like to think of it as a above ground pool. If you get a puncture in the pool lining water will leak out. Sure you can always add more water but it’s not fixing the problem. Adding more refrigerant doesn’t fix the problem either. It’s just prolong the inevitable and wasting money.

Purchase Restrictions

Up until last year there were a lot of homeowners and business owners who were purchasing their own R-410A refrigerant cylinders. They would this either through big box stores or through online outlets like Amazon or Ebay. This all changed on January 1st, 2018. On that day the Environmental Protection Agency enforced a new rule known as ‘Refrigerant Restrictions.’ These restrictions already existed on HCFC and CFC refrigerants but they were now moved over to HFC refrigerants as well. This included R-410A. What this means is that you are no longer legally able to purchase R-410A unless you are 608 certified with the EPA. Now, there are a few slight exceptions to this such as:

  1. Providing the vendor you are buying from with an intent to resale form. What this means is that you state that you will NOT be using this refrigerant yourself but that you intend to resell it to another party. In this case the legal record keeping requirements would be passed onto you.
  2. The other exception is that if you purchase small cans of refrigerant that are under two pounds of refrigerant or less. This works great for automotive applications but can be difficult when trying to recharge your system with only a few pounds of refrigerant at a time.

If you do not meet the above exceptions and you try to purchase R-410A you will be asked for your 608 license number. If you cannot provide one then you will not be allowed to purchase. For more on the Refrigerant Sales Restriction click here to be taken to the Environmental Protection Agency’s official website.

R-410A Price Per Pound

Alright folks, now that we have that out of the way let’s dive in and find the true price per pound of R-410A refrigerant. Let me paint a picture for you. Let’s say your air conditioner is no longer working due to an unknown failure. When the technician comes out he identifies the problem and quotes you for the repair. The problem though is that the failure of your air conditioner caused all of your refrigerant to leak out. Now on top of your part replacement you also need to pay for a full refrigerant recharge.

I could tell you the price today, which I will in a bit, but I will also give you kind of a cheat sheet that I like to use when gauging the R-410A market price. It’s so simple. All I do is just go to Ebay.com and search for R-410A cylinders.  By doing this I can see what the going rate is per pound of R-410A. As I write this article today I can see that R-410A is priced between ninety-five and one-hundred dollars a cylinder. Now, let’s do some simple math to get your price per pound. Let’s take the higher amount of one-hundred just to be safe.

$100 / 25lb cylinder = $4.00 per pound.

There you have it folks, $4.00 for one pound of R-410A refrigerant. Now, please keep in mind that as I said above these prices can change at any given time. To give you a bit more help I have also included a feed from our Ebay partner below that shows you the current market price of R-410A:

R410a refrigerant 25LB CYLINDER ***LOWEST PRICE ON EBAY ***NEW FACTORY SEALED!!

$107.35
End Date: Wednesday Feb-6-2019 8:57:57 PST
Buy It Now for only: $107.35
Buy It Now | Add to watch list

R-410A Refrigerant 25 Lb Cylinder - New! Certification Required per US EPA

$115.00
End Date: Thursday Feb-14-2019 9:37:48 PST
Buy It Now for only: $115.00
Buy It Now | Add to watch list

Ok, so now that we have the cost per pound of R-410A now let’s determine how many pounds that you need to recharge your air conditioner. Now the typical rule of thumb is between two to four pounds of refrigerant per ton of your air conditioner. (You should always check the exact specifications of your machine, but most of the time the two to four pound guideline will be sufficient.) Most home air conditioners are between one ton and five tons. (Anything over five tons is considered a commercial grade unit.) So, let’s get on with our math problem. Let’s pretend that you have a middle of the road three ton air conditioning unit that is on the fritz with no refrigerant in it. In order to refill your unit entirely you will need the following:

4 pounds of refrigerant * 3 ton unit = 12 pounds of refrigerant needed.

12 pounds of refrigerant times the $4.00 per pound number we came up with earlier = $48.00 for a completely fill up of your unit.

Conclusion

There you have it folks, that is the true cost per pound of R-410A refrigerant. I have said it already in the beginning of this article but I want to emphasize again that you may not pay the price we mentioned above due to your contractor’s markup. They deserve to make money as well and they deserve to be paid for their expertise. Just keep this article in the back of your mind so that when you do receive a quote you can ensure that you are receiving an accurate and fair price.

Thanks for reading,

Alec Johnson

RefrigerantHQ

Pricing Prediction
Over the past few weeks we have been writing RefrigerantHQ’s pricing prediction on various refrigerants for 2019. We have covered some of the most popular refrigerants out there including R-22, R-134a, and R-1234yf. Today’s prediction article will be focusing on R-410A Puron. Most everyone’s mind has been on R-22 and what’s going to happen next year with the 2020 phase out deadline. With all of this change it is easy to forget about Puron, but the 410A market share is only growing and it’s pricing impacts can have a substantial effect on contractors and consumers. After all, R-22 is on it’s last legs and it is not going to be around much longer. Sure there are other alternative refrigerants out there but like it or not R-410A is the king right now.

Looking back at my prediction on R-410A from last year I have to say that I was way off. I had predicted a 2018 summer price at around two-hundred dollars per twenty-five pound cylinder. While that may have sounded crazy, we should consider what we saw in the 2017. Last year there was a shortage in the chemical known as Flurospar. Flurospar is a key ingredient in fluorinated refrigerants like R-125. (R-410A is a fifty percent mixture of R-125 and R-32.) This shortage of Flurospar created a rippled effect on the supply chain and caused the price of 410A to skyrocket over the summer season and into the fall and of 2017. Last year’s prediction was based off of that pricing trend. I assumed that the shortage would continue. That is where I came up with my two-hundred dollars a cylinder number.

What actually happened was quite different. In the early months of 2018 the price per cylinder was around ninety dollars per twenty-five pound cylinder. It had come down quite a bit from the previous summer’s price. What was surprising though was that the price kept on going down even as we got into the hotter months. Usually as the summer months come we see a slight or large increase in refrigerant pricing due to the increased demand. This year however we saw the opposite. The price for a R-410A cylinder dropped by near twenty-five dollars. It went from around ninety dollars to sixty-five. That is nearly a thirty percent dip in price. One of our distribution contacts stated that R-410A was more volatile then R-134a this year. That is quite the change as R-134a is usually all over the place.

The question now though folks is what will the pricing do next year? Will R-410A keep going lower? Will it stay put? Or, will we see it climb back to the higher priced levels that most of are used to?

Considerations

I love doing analysis. It is what I do at my day job and it is why I write these kinds of articles. It can be fun to dig into the details and all of the factors that can affect pricing. When doing a pricing analysis like this I like to first provide the reader what considerations that I took and reviewed to come up with my pricing prediction. These help the reader understand my point of view and where I am coming from. Let’s take a look at some of them now:

Flurospar Shortage

I mentioned this earlier in our previous section. If we travel back about eighteen months ago this was a HUGE deal. The majority of the world’s Flurospar comes with mines in China. During the spring and summer of 2017 there were governmental regulation changes that affected the efficiency and overall output of the mines. This lower output is what accounted for the world’s shortage. In my previous analysis I assumed this shortage would carry into 2018, but I was incorrect. Will we see a shortage though in 2019? It is impossible to say. The only thing I can point to is the overall stability of the Flurospar market over the past year.

Chinese Refrigerant Imports

Back in 2016 there was an anti-dumping tariff instigated against Chinese HFC refrigerant blends. Included in this tariff was R-410A. I won’t get into all of the details here, but essentially there was a tariff put on R-410A. (For more information on the tariff click here to be taken to TheCoolingPost.) Here’s the thing though folks, this tariff was installed on ONLY the R-410A blended refrigerant and NOT the components of the blend. In other words R-410A was taxed but R-125 and R-32 was not. Doesn’t make much sense if you ask me.

Refrigerant distributors took advantage of this loophole and began importing mass quantities of R-125 and R-32. Once imported they would then blend the refrigerants in their own facility. The dumping of cheap HFC refrigerants continued. This mass import of Chinese product has attributed to the much lower cost of R-410A that we are seeing today.

Trump & His Tariffs

Most of the country has felt the effects of the various tariffs that the Trump Administration has issued over the past year. This could either be through your employer or just paying for basic things. In my day job I had to travel to Belgium a few months back to work with our corporate office. The reason for the trip? Trump’s Tariffs and how to enact them throughout the company. Whatever your politics are, we can definitely say that these tariffs have had an impact. Refrigerant, for the most part, has been left unscathed on these tariffs. With all of these imports coming from China though, how long is it before a tariff is enacted? What if one is enforced on R-125? How will that effect the marketplace? Inevitably it will lead to higher prices, but how much?

R-410A & Reclamation

With the end of R-22 coming in just about fourteen months the industry will be relying more and more on refrigerant reclaimers. These reclamation facilities can process this used R-22 refrigerant, clean it, and then issue it back out into the world for reuse. This is the ONLY way for ‘new’ R-22 to be found after that January 1st, 2020 deadline. Remember, once the stockpiles of R-22 run out reclamation is all that is left.

Why am I talking about R-22? Well reclamation for R-22 is key for having a stable supply. With R-410A it is quite different. Reclaiming R-410A refrigerant, at least at this time, is not feasible. There is no profit in it. I was discussing this very matter with Chad Schnuelle of Refrigerant Inc just today. He stated that:

It is too cheap to sell reclaimed R-410A in the market and make a decent margin because of the fractionating factors. It’s a two component refrigerant blend of R32 and R125 with a 50/50 mix ratio. If there is a leak in a system one component bleeds off faster than the other. This means we have to add that component back in to get the 50/50 blend once we reclaim it.

So a reclaimed R-410A refrigerant actually has new refrigerant in it. This adds an extra layer of cost. Having that extra cost and then trying to compete with virgin R-410A at the rock bottom prices it is right now is nearly impossible. If the price of R-410A begins to rise, or if we get new tariffs instated like we mentioned above then the possibility of more reclaimed on R-410A market is there, but for now it remains out of reach.

Prediction

I’ve been doing these price prediction articles for a few years now and it has given me a unique opportunity to see the trend in pricing of R-410A over the years. Before I get into my prediction let’s take a quick look to see how the pricing has climbed over the years. Keep in mind that these prices are based off the standard 410A twenty-five pound cylinder. The prices are obviously lower if you are purchasing larger quantities.

  • 2015 – $90.00 – Source
  • 2016 – $100.00 – Source
  • 2017 – $150.00 – Source
  • 2018 – $90.00 (Winter)
  • 2018 – $65.00 (Summer/Fall)
  • 2018 – $80-$90 (Retail on E-Bay.)

Looking at the above numbers we can really begin to see the deep dive in pricing that occurred this year. There was a time where a price between ninety to one-hundred dollars was pretty standard no matter what season it was. Now with today’s dirt cheap price of around sixty-five dollars a cylinder it is tough to say what will happen next. In an effort to help myself with this prediction I reached out to a few refrigerant distributors before writing this article. I wanted to know what they thought of the market this year and what they thought next year would bring. Each of them said more or less the same thing. Prices will be low, but stable. In other words folks, this sixty-five dollars price per twenty-five pound cylinder is here to stay at least for 2019.

That’s right, our thoughts for 2019 R-410A pricing is the exact same price it is today. Last year I high balled it and got burnt so this year I am going to play it safe and take the advice of our distributors. Our official prediction is that the price will hover between sixty-five dollars to seventy-five dollars a cylinder. There will be some moving back and forth due to seasonality and all of that but for the most part the price will be stable. At this time the only wildcard that I know of is if Trump adds a tariff on R-410A or one of it’s components. If this happens then the pricing point is anyone’s guess.

Conclusion

I want to close this article by stating that this was a prediction and it is just that, a guess. No one knows for sure what will happen to the R-410A market next year and if they say they do then they’re lying. It’s a complete guessing game. I can only provide my analysis on the matter and go from there. Lastly, I want to mention that this is one man’s analysis on the market. We here at RefrigerantHQ are not liable for any business losses or gains when it comes to buying and selling R-410A.

Thanks for reading,

Alec Johnson

RefrigerantHQ

Owner

Yes and No
Most of you are familiar with what’s known as the Refrigerant Sales Restriction. This restriction comes directly from the Environmental Protection Agency and aims at preventing novices and do-it-yourselfers from purchasing and handling refrigerant. By preventing these laymen from handling refrigerants we in theory shrink the amount of refrigerant that is leaked into the atmosphere.

This restriction was especially critical in the beginning stages of phasing out CFCs and HCFCs refrigerants such as R-12, R-22, and R-502 in the 1990’s and 2000’s. These refrigerants contained chlorine and chlorine was directly attributed to the damaging and thinning of the Ozone layer. Each time one of these refrigerants was vented into the atmosphere rather intentionally or by mistake damage was done. By imposing the sales restriction, imposing a host of other regulations like leak requirements, and by slowly phasing down chlorine refrigerants the Ozone was allowed time to repair.

HFC Restrictions

In the summer of 2015 the Environmental Protection Agency came out with a new set of rules from their Significant New Alternatives Policy (SNAP). This new rule, deemed Rule 20, was aimed at phasing down the popular HFC refrigerants across the United States. Along with this new rule it was announced towards the beginning of 2017 that the EPA’s Refrigerant Sales Restriction would be carried over to HFC refrigerants as well.

You see, in the past you couldn’t buy CFC and HCFC refrigerants without a 608/609 license but you could still purchase HFCs. They didn’t require a license. That meant I could have walked into an Autozone and picked up a cylinder of R-134a without any licensing required. Well, all that changed this year folks on January 1st, 2018. That is when the new purchase restrictions went into place by the EPA. This move was expected by many in the industry and not a lot of folks were shocked by it.

What did surprise us though was a court’s ruling in August of 2017. When the EPA introduced their SNAP Rule 20 there were two companies, Mexichem and Arkema, that filed a lawsuit stating the EPA had overstepped it’s legal bounds. I won’t get into all of the details in this article, but the short version is that Arkema and Mexichem won the suit and the EPA’s Rule 20 was tossed out. There were appeals. There was even one to the Supreme Court, but none of them worked out.

Earlier this year the EPA announced that they were withdrawing their Rule 20 regulations and that they were looking into forming a new rule. Along with that it was announced by the EPA that they were rescinding their HFC leak regulations. Lastly, it was announced that the EPA was considering removing the sales restrictions on HFC refrigerants. There is nothing official here on if this will happen or not, but the EPA is definitely considering it.

Restrictions: Yes or No?

The HFC sales restriction may only last for the 2018 year and then may fade away. The question though is, is this good or bad? What repercussions will there be?

About five years ago I had a small side business that sold individual or multiple refrigerant cylinders online through stores like Amazon or Ebay. It was mostly R-410A and R-134a cylinders shipped to individuals across the country. There wasn’t a lot of money in it, but it gave me that entrepreneurial experience. Before the HFC restriction was in place there were dozens of places for individuals to purchase refrigerant cylinders. You could walk into a Sam’s Club and purchase a few cylinders of R-134a. There were online shops, dealerships, and retailers all selling refrigerant.

While this made things easy for consumers it also made it very easy for people who did not know what they are doing to get a hold of large quantities of refrigerant. If they made a mistake, which they would, then that large thirty pound cylinder of refrigerant would get vented into the atmosphere. And while HFCs do not damage the Ozone they are a Green House Gas and they do contribute to Global Warming.

So, by creating a sales restriction we can limit the amount of refrigerant that is vented and help reduce potential Global Warming problems but we also have the side effect of hindering business and do-it-yourselfers from working on their own equipment.

Conclusion

If I was to wager on what will happen I would bet that the restriction will go away soon. The current EPA and Presidential Administration has been very against nearly everything the EPA has done over the past few years and this appears to be no different. If the restriction is removed we will see the availability to purchase refrigerant online and through retailers come back and we will also see a slight increase on refrigerant price due to the flood of all of the do-it-yourselfers purchasing again.

What do you think the best outcome is?

Thanks for reading,

Alec Johnson

RefrigerantHQ

The blows to a national HFC phase down plan just keep coming. It was announced today that the Supreme Court would NOT be reviewing the HFC Refrigerant court case. This appeal to the Supreme Court was the last resort to those companies and organizations who wished to see the Environmental Protection Agency’s 2015 SNAP Rule 20 stay in affect. This 2015 rule specifically targeted HFC refrigerants and put forth a plan of action to phase down and eventually phase out these Global Warming refrigerants. The original rule can be found by clicking here.

Upon the announcement of the EPA’s new rules two companies, Mexichem & Arkema, sued stating that the EPA had overstepped it’s authority. Mexichem & Arkema’s motivations for this lawsuit were strictly a stalling tactic while they came up with their own HFC alternatives, but the case still went to court nonetheless. In August of 2017 the Federal Circuit Court ruled against the Environmental Protection Agency stating that the EPA had overstepped it’s authority. As a reference, the foundation of the EPA’s Rule 20 referenced Chapter VI, 6, of the Clean Air Act. The title of this chapter is called, ‘Stratospheric Ozone Protection’ Herein lies the problem. This section of the Clean Air Act, and frankly the Montreal Protocol, focused on Ozone depleting refrigerants such as CFCs and HCFCs. These refrigerants contained Chlorine and the Chlorine is what damaged the Ozone. Without the Chlorine we have no damage to the Ozone. HFC refrigerants do not contain Chlorine and thusly cannot be phased down or out using a piece of legislation that is strictly focused on Ozone depleting substances. HFCs DO contribute go Global Warming though and are considered a Greenhouse Gas. Two very different and distinct problems.

The Federal judge who made this ruling was Brett Kavanaugh. (Some of you may have heard of this name before!) Everyone had expected the court to rule with the EPA so when this ruling came out the industry was taken aback. No one really knew what to do with the news. It only took a few weeks for an appeal to be filed by Honeywell, Chemours, and other organizations. Their appeal argued that the SNAP Rule 20 was ‘well founded,’ and that the Federal Court’s ruling was going against the foundation of the EPA’s SNAP program. Their second argument is just funny in my book. Honeywell and Chemours argued that they had already invested too much money into their new HFO refrigerants and that that was reason enough to rule in their favor.

Despite their best efforts, the appeal did not grant them any traction and the appeal was lost in early 2018. A few months later in the summer of 2018 Honeywell, Chemours, and the NRDC (National Resource Defense Council) petitioned the Supreme Court to hear the HFC refrigerant case. The decision on that potential hearing was announced today. Much to the disappointment of many within the industry, the Supreme Court will NOT be hearing this case.

Now, I love a good irony. I don’t care what your politics are, life is funny sometimes. The Judge who started all of this back in 2017 was Brett Kavanaugh. He was the one who made the initial ruling. And now, here we are over a year later, and the case ends up in the Supreme Court where Mr. Kavanaugh was just sworn into last week. I didn’t see that coming this time last year, that’s for sure. The good news is this that Mr. Kavanaugh had no part in the Supreme Court’s decision today. If this would have come up later this year chances are he would have recused himself from the case. This is normal tradition for Supreme Court Justices who have a case that they previously worked in a lower court come to them in the high court.

Something worth noting here is that the Supreme Court was asked to not review this HFC case by the Trump Administration. This is because of the new HFC rule that is being worked on by the Environmental Protection Agency. There aren’t any details yet on what the new EPA HFC refrigerant policy will be. Will it be close to what we had in 2015? Or, will it be gutted and we will be left with no actionable plan to phase down HFCs? Only time will tell here. I for one am anxious to see what the new rules will look like.

States to the Rescue

Don’t worry folks, there’s good news too! A lot of you may have already heard about this or read some of my articles from last month, but recently there has been a big push for individual States to come up with their own plans to phase down HFC refrigerants. This all started in California and as they began to adopt and pass their laws and regulations we began to see other States pick up the torch. In September we had New York announce that they would be enacting phase down plans and in that same month we had Maryland and Connecticut announce their intentions as well.

All of these states are part of what’s known as the ‘United States Climate Alliance.’ This alliance is a gathering of States that formed after the Trump Administration pulled out of the Paris Climate Accord last year. There are seventeen States in this alliance and so far four have already announced HFC phase down plans. It is only a matter of time before we see others move forward with their own plans.

If this trend continues we may not even need a formal Federal HFC policy. Instead, we’ll rely on the States to make the right decision and like a snowball going downhill it will pick up speed and size until the whole of the country is on board. Those left behind will be forced to comply due to attrition.

Thanks for reading,

Alec Johnson

RefrigerantHQ

Sources

Well folks it has been a hell of a few weeks in the refrigerant industry. The past few months have been rather quiet and then we get all of this news all at once. It always amazes me how fast this stuff can happen.

Just a few days ago the Environmental Protection Agency announced that they would be removing their rule that went in place back in September of 2016. (The official EPA Fact Sheet on this rule can be found by clicking here.) This rule applied Section 608 CFC/HCFC leak controls and regulations to appliances using HFC refrigerants that contained over fifty pounds of refrigerant. Basically, it passed on the same regulations that we had on CFC/HCFC refrigerants over to HFCs.

The EPA’s reason for overturning these regulations is that the EPA exceeded its own authority by issuing these laws back in 2016. Their reasoning is that these laws and regulations were all meant for CFC and HCFC refrigerants. They centered on the Ozone and the Chlorine in the refrigerants. HFCs do not contain Chlorine and thusly do not damage the Ozone layer. Instead, they are Greenhouse Gases and contribute to Global Warming. Both are bad for the Climate, but both are distinct separate issues. I do tend to agree with this as the law was bent to accommodate HFCs. Along with that the EPA also announced that they plan to save over forty-million dollars in regulation expenses enforcing these laws.

Before the law goes into effect it will be published in the Federal Register and then there will be a forty-five day comment period. The EPA will also be hosting a public forum fifteen days before the rule goes into effect. This will be held at Washington, DC and you can register by visiting the EPA’s site. Now, instead of rehashing what the EPA wrote I am going to take an excerpt from their site that way there is no confusion.

If finalized as proposed, this action would rescind the leak repair and maintenance requirements at 40 CFR 82.157 for substitute refrigerants. Therefore, appliances with 50 or more pounds of substitute refrigerants would not be subject to the following requirements:

  • conduct leak rate calculations when refrigerant is added to an appliance,
  • repair an appliance that leaks above a threshold leak rate,
  • conduct verification tests on repairs,
  • conduct periodic leak inspections on appliances that exceed the threshold leak rate,
  • report to EPA on chronically leaking appliances,
  • retrofit or retire appliances that are not repaired, and
  • maintain related records.” – SOURCE

Additional Changes Coming

But wait, there’s more! The EPA’s above proposal to remove the requirements on HFC appliances also comes with the option for public comment on removing additional leak requirements on different applications. Again, this is from the EPA website:

“EPA is also requesting comment on rescinding other provisions that were extended to substitute refrigerants, including the following:

  • anyone purchasing refrigerant for use in an appliance or handling refrigerants (e.g., air-conditioning and refrigeration service contractors and technicians) must be a Section 608-certified technician,
  • anyone removing refrigerant from a refrigeration or air-conditioning appliance must evacuate refrigerant to certain level using certified refrigerant recovery equipment before servicing or disposing of the appliance,
  • the final disposer (e.g., scrap recycler, landfill) of small appliances, like refrigerators and window air conditioners, must ensure and document that refrigerant is recovered before final disposal, and
  • all used refrigerant must be reclaimed to industry purity standards before it can be sold to another appliance owner.”

Did you get all that? There were some big ones in there. One in particular that I noticed was the removing of 608 certification in order to purchase HFC refrigerants. This law has only been effect since January of this year. That would be a BIG deal if that was removed as we then open the flood gates for all of the laymen and novices to purchase refrigerant again. This could also create a rise in pricing if enough people who are unregistered purchase.

Along with that we get that appliances don’t have to have their refrigerant evacuated before being brought to the dump. That’s not the scariest one though, what scares me is that last point. If it gets rescinded we are then removing the purity standards from reclaimed refrigerants. There are already so many people who are against purchasing or using reclaimed refrigerants and removing this provision is going to seriously hurt the reclamation industry’s reputation.

Conclusion

These are very confusing times. We have the various States in the Climate Alliances proposing and enacting their own HFC refrigerant laws and regulations and then we have the Federal Government and the Environmental Protection Agency removing previous laws.

As time goes on we’re going to have additional States join the phasedown and I have a feeling this new announcement from the EPA is only going to fuel the desire for the States to take matters into their own hands.

Thanks for reading,

Alec Johnson

RefrigerantHQ

Sources

United States Climate Alliance
After the past few weeks of various States announcing their plans to phase out HFC refrigerants and the expectation of more States to follow it got me thinking about how these changes will end up affecting the pricing of HFC refrigerants across the country. The worse thing that can happen is for us to fall into the trap that the European Union finds itself in. Over there the prices on various HFC refrigerants have gone up hundreds of percent. These huge rises in price have caused many basic refrigerants to be out of reach for consumers and contractors.

The high prices in Europe has also caused a rash of crime on refrigerants. The crimes vary from illegal smuggling, to using disposable containers, to selling refrigerant online without proper documentation, and to mass theft from warehouses. Each one of these crimes have occurred due to the high profit and reward due to the inflated prices.

The good news here folks is that with these State by State phase downs here in the US the chances of prices sky-rocketing here are reduced significantly. The problem that occurred in Europe was that there were mandatory production and import regulations put in place.

These regulations restricted the flow of refrigerant and caused the supply to shrink all the while keeping around the same demand. I understand the intention of these restrictions, but they have caused a lot of pain to end users and contractors. Most regulators in Europe have just told people to tough through it. After a few years of hardship most of the HFC applications will be replaced by HFOs or Natural Refrigerants.

The US Market

The United States did something similar when it came to popular HCFCs like R-22. With R-22 there was a staggered phase down over a ten year period. The restrictions began in 2010 and are coming to a head in 2020. (In 2020 no import or production can occur on R-22, the only exception is reclaimed R-22.)

As can be expected, we saw similar price hikes on R-22 due to these regulations. At it’s peak last year we were seeing prices for a thirty pound cylinder at around seven-hundred dollars. Today’s price is much lower at only around three-hundred dollars a cylinder, but it is still quite high when comparing to it’s HFC counterpart, R-410A, that comes in at only around one-hundred dollars.

With these State by State laws there is not mention of production or import caps. (Not that I have seen anyways.) Instead, these laws focus on the applications that these HFC refrigerants use. To me, this seems to be the smarter way to go about it. By targeting the applications and mandating the converting of new systems over to a more climate friendly refrigerant we will win the war on HFCs simply by attrition. After a certain amount of time has passed the demand for HFCs will shrink and shrink until they eventually disappear and are fully replaced by alternative refrigerants. All of this would be done without restricting the flow of refrigerants into the country/state.

Conclusion

This my friends, seems to be the way to do it. We are not hamstringing ourselves by restricting supply and causing prices to skyrocket. No, instead we wage our war against the new machines out there and reward those who want to retrofit their old systems. Basically, this all boils down to the carrot versus the stick. Do we want to give our contractors and manufacturers incentives and mandates on new systems, or do we want to just cut-off the supply entirely and let everyone scramble to figure it out?

Thanks for reading,

Alec Johnson

RefrigerantHQ

United States Climate Alliance
Last week I wrote about New York announcing their plans to phase down HFC refrigerants over the coming years. This announcement came shortly after California finalized their HFC phase down law at the end of last month. Shortly after I wrote that article two more States announced that they would be phasing down HFC refrigerants as well: Connecticut and Maryland.

Like the other previous States, Connecticut announced that their new regulations would be modeled off of the previous EPA’s SNAP rules from 2015. Remember now, that these EPA SNAP rules were overturned in the courts last year and it was announced earlier this year that the regulations would no longer be enforced by the EPA. While now defunct, these previous EPA rules seem to be the standard bearer for future States and their HFC regulations.

While Maryland has not come out with a formal plan yet they have stated that their intentions are to have regulations similar to that of California. The details of their plan are expected to be hammered out soon.

What Comes Next?

Last week was a busy week when it comes to HFC refrigernat news. We had three additional States come out in favor of phasing down HFCs. The question now on everyone’s mind is who will be next and how many more will come forward with their own plan?

The answer to this may be found by looking at what’s called the United States Climate Alliance. This alliance is a gathering of States and Territories that aim to uphold the 2015 Paris Climate Agreement. For those of you who do not remember, this was the agreement that the Trump Administration pulled the United States out of in the summer of last year.

Once this pull out was announced this alliance was formed on June 1st, 2017 in an effort to honor the goals of the agreement the best that they could. While there are only seventeen States involved in this agreement the size of these States is something to be considered. Over forty percent of the United States population resides in these States and over forty-five percent of the Gross Domestic Product of the US comes from these States.

So far, four out of these seventeen States have announced their intentions to phase down HFC refrigerants. (Three of these in just one week.) Has the snowball started to roll down hill? Will we be seeing the other States in this grouping announcing their own plans shortly?

States in the alliance are:

  • California
  • Colorado
  • Connecticut
  • Delaware
  • Hawaii
  • Maryland
  • Massachusetts
  • Minnesota
  • New Jersey
  • New York
  • North Carolina
  • Oregon
  • Puerto Rico
  • Rhode Island
  • Vermont
  • Virginia
  • Washington

Conclusion

As more states make their announcements, we will begin to phase out HFCs by default. If we think about it for a moment, if just under half of the country’s population are living in HFC phase down States then it wouldn’t make sense for companies to continue using HFCs in newer applications. Why make two different models for different States if we can just make the switch and have one model in both States?

Tying directly into this, the CoolingPost.com reported yesterday that major HVAC and Refrigerant manufacturers have announced their support for California’s HFC phase down law. I won’t list everyone of these companies, but just a few of them are: AHRI, Goodman, Carrier, Lennox, Chemours, and Honeywell. These are the big players in the industry and if they are in favor then we are inevitably going to see the end of HFC refrigerants here in the United States, maybe even close to the same timeline that everyone was planning on based off of the EPA’s regulations from 2015.

It’s funny how all this worked out. I’m a big fan of States’ Rights so this couldn’t have gone better in my opinion. We removed the Federal regulations and had the States do their own laws to FORCE the industry to change on it’s own.

Thanks for reading,

Alec Johnson

RefrigerantHQ

Sources: