Public Finance Management Act (1/1999): Announcement or call of interest for potential beneficiaries of the demonstration pilot projects on the use of non-ozone depleting substances, low -global warming potential technologies different applications in the refrigeration and air-conditioning sector: Government Gazette 46793.
The Kigali Amendment to the Montreal Protocol recognised the importance of maintaining and enhancing the efficiency of HVAC&R systems in the transition from hydrochlorofluorocarbons (HCFCs) to alternative refrigerants.
The two largest contributing factors to GHG (Greenhouse Gas) emissions from HVAC&R systems are the indirect CO2 emissions from the energy used to operate the system and the leakage of HCFC’s into our atmosphere.
Many end-users do not always have the resources to diagnose and track inefficiencies and leakages on their HVAC&R systems but replacing outdated HCFC refrigeration systems can help achieve reduction targets from 10% to 30% in CO2 emissions.
Raising awareness and implementing projects that will assist the industry in making the transition from HCFC’s to natural alternatives is crucial for South Africa’s HCFC phase out country targets.
South Africa’s HCFC phase out programme is an attempt to meet its Montreal Protocol obligations. Stage I of the HCFC phase-out management programme (HPMP) was approved by the 67th meeting of the Executive Committee in September 2012 and represented a 35% reduction of the baseline.
Stage I was a combination of investment and non-investment activities like enforcement measures, strengthening legislation and establishing up-to-date codes of practice for the refrigeration service sector in support of the transition away from HCFCs. Stage I was initiated over 10 years ago with efforts being made to complete by end of 2023.
Stage II spans from 2020 to 2040 and is geared for a 100% reduction of the baseline. Increased efforts are therefore needed to communicate and demonstrate the availability of non-ozone depleting substances (ODS) and low global warming potential (GWP) solutions, such as natural refrigerants, to help the industry transition and the country to meet its obligations.
Energy Partners Refrigeration has been awarded the responsibility to manage and execute four demonstration projects that show the viability, availability and performance of natural refrigerants as a suitable alternative to HCFCs.
The four projects will be installed to the benefit of end-users in four targeted sectors (retail, agriculture, industrial and commercial) and sets the tone for HPMP stage II implementation. The funds available for the demonstration projects are from the donor, the Multilateral Fund for the implementation of the Montreal Protocol (MLF) and The United Nations Industrial Development Organisation (UNIDO) is the project Implementation Agency.
Energy Partners Refrigeration has the role of managing and executing the demonstration projects. The Department of Forestry, Fisheries and The Environment (DFFE) supports the initiative and has called for potential beneficiaries to step forward and participate in the initiative in order to gather a greater outreach (awareness of the project and potential application) taking into account geographical distribution.
Scope of work
Energy Partners will identify four (4) end-users currently using ODS systems (R22) in the four sectors described above that are in line with the project requirements and minimal technical criteria. As a minimum, the ODS system either needs to have been installed prior to 2007 or the end-user must be established prior to 2007. A field survey will be done to examine the potential for implementing natural refrigerants on the sites. A proposal will be sent to UNIDO for approval and if the sites are approved, a grant will be made available by UNIDO to help the end-user transition to natural refrigerants. The grant is fixed per technology application but can significantly reduce the capital expenditure for the end-user.
The funds have been approved and provided by the donor agency and UNIDO acting as Implementing Agency for the four identified beneficiaries of the demonstration project under HPMP stage I for South Africa. This is to encourage and incentivise the end-user to make the transition within those four sectors. In case the end-user wishes to use the project to initiate an expansion of their facility, the additional costs will have to be co-funded by the end-user. Energy Partners Refrigeration will execute and manage the transition on behalf of the end-user. Please contact Energy Partners for details on the relevant grant, as per technology application.