Philippines CDM project: an opportunity to move to natural refrigerant chillers
[ added 8 June, 2010 ]
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In what is the first Clean Development Mechanism project in the Philippines that has the government acting as coordinating entity, about 375 chillers used in industrial, commercial, service and institutional establishments will be replaced with technology that is more energy efficient and friendly to the environment. Natural refrigerant chillers have already been proven a viable technology in the country, where hydrocarbon chillers have allowed for significant energy savings.
The objective of the project is to reduce greenhouse gas (GHG) emissions by replacing inefficient chillers, including both old Chlorofluorocarbon (CFC)-based chillers and non-CFC-based chillers. “The project will also illustrate to building owners that investing in environment-friendly technologies also brings energy efficiency and thus makes good business sense”, said Secretary Horacio Ramos of the Philippines Department of Environment and Natural Resources (DENR).Financial incentives under the project
To encourage investment in chiller replacement, the project will provide financial incentives whereby chiller owners will receive an upfront grant subsidy of 15% of the cost of new energy efficient chillers, or opt for future carbon finance revenues to be generated by energy savings from the replacement of their chillers.
A programmatic CDM project
The project uses the “programmatic approach” to the Clean Development Mechanism (CDM) of the Kyoto Protocol, allowing many small individual projects to participate in the carbon market as one CDM project thus generating significant impact, and benefiting more players.
The German Reconstruction Bank (KfW) is the carbon buyer of the $7.3-million Clean Development Mechanism financing of the ‘Chillers Energy Efficiency Project’. Additional financing will be provided by a $2.6-million grant from the Global Environment Facility (GEF) Trust Fund and a $1-million grant from the Multilateral Fund (MLF) for the implementation of the Montreal Protocol.
The advantages of employing natural refrigerant chillers
Phillipines has a track record of chillers employing hydrocarbon natural refrigerants that had led to significant energy savings and hence greenhouse gas savings. In addition to the greenhouse gas savings associated with the energy savings, additional emissions savings are realised thanks to the low global warming potential of natural refrigerants. In comparison the GWP of HFC refrigerants can amount to several thousands.
Several conversions of chillers and coolers for commercial buildings to hydrocarbons have been carried out in the Philippines. Several examples of successful projects in hotels, offices and restaurants in the county have entailed energy savings between 12% and 21%. The ‘Chillers Energy Efficiency Project’ thus provides a market opportunity for the natural refrigerants industry in the area.
Next steps
The Foreign Assisted and Special Projects Office (FASPO) of DENR will act as the Coordinating Entity (CE) of the project and will charge an independent consulting firm as a project management contractor to aggregate a number of eligible chiller replacements.
BeyondHFCs welcomes the funding for the project and urges the Philippine government to prioritise the deployment of energy efficient natural refrigerants as the replacement technology, which is truly environmentally sound and climate friendly and unlike HFCs that constitute a climate burden will not soon face restrictions.
Links
Read the World Bank press release
More about the Chiller Energy Efficiency Project on the World Bank website
Visit the website of the Foreign Assisted and Special Projects Office
