Exclusive Interview with Shaoming Jiang, Vice Chief Engineer of Yantai Moon Group

 

Ms Jiang: Working together with the UNDP in China our ammonia/CO₂ demonstration technology project is meant to promote the replacement of two-stage HCFC-22 based refrigeration systems. Moon Group first initiated its research on ammonia/CO₂ cascade as a replacement technology for HCFC-22 in 2007. We put a lot of energy into promoting the technology to industry, showcasing the technology and prototypes at many international exhibitions. Luckily, we got financial support from the UNDP to modify production lines, promote product series and update test devices to measure product performance. 

 

We have now finished the design phase and the UNDP has accepted the Phase 1 deliverables. At the end of May 2012, the UNDP will examine the deliverables of Phase 2, in particular the modification of our production lines and the manufacturing of prototypes. In Phase 3 we will focus on promoting the use of ammonia/CO₂ cascade technology at a commercial scale in integrated low-temperature refrigeration systems. Overall, the UNDP is very satisfied with progress of the project so far and appreciates our efforts to promote ammonia/CO₂ technology in China.

 

 

Ms Jiang: Up until today, Moon Group has worked on two prototype projects in China. One installed for Yantai Fengrun, a local fruit pudding supplier to McDonald’s, and the other for Weihai Jiuye, a Chinese export-seafood supplier. Fengrun’s ammonia/CO₂ cascade system has been in use for 2 years and the system already reduced electricity use for refrigeration by 8.6% to 11.2% every year for the company. There are more and more companies showing interest in the ammonia/CO₂ cascade systems. We will soon install the refrigeration system for our third client and I think there will be more Chinese end-users shifting to CO₂ refrigeration systems in the near future.

 

 

Ms Jiang: For Yantai Moon Group, technology is no longer the obstacle as our CO₂ refrigeration technology is mature. However, we do meet with many obstacles when it comes to promoting the technology on a larger commercial scale. CO₂ refrigeration is still new in China, and therefore companies see it as a more risky deicision to invest in CO₂ refrigeration systems. Lack of financial subsidies from government have created an uncertain investment climate for companies, even if they are consider adopting environmental friendly refrigeration systems. 

 

 

Ms Jiang: Unfortunately, until now China has not had preferential policies, as some western countries have had, to spur the use environmental friendly products in the refrigeration industry. Therefore, we hope the government will invest more in this area to encourage companies shifting to CO₂ Refrigeration systems.

 

Another key issue is that China urgently needs a national industrial standard for CO₂ refrigeration. Indeed, many companies and local governments are very interested in the CO₂ refrigeration systems we produced and have realized the benefits CO₂ refrigeration systems could bring in terms of energy efficiency. However, as there are no national standards to regulate their installation and operational safety, it is hard to get engineering approval from the relevant administrative departments. In addition, without common standards, the design, manufacture, installation, inspection and acceptance of refrigeration projects will meet various difficulties and barriers. 

 

 

Ms Jiang: As the Chinese government has banned any new projects using HCFC-22 as a refrigerant from 2013 and aims to reduce the production and consumption of HCFC-22 by 10% compared with the average amount of 2009 and 2010 by the end of 2015, I personally estimate the potential market for CO₂ refrigeration is large in China. Although at present most large-sized refrigeration facilities in China still use R22, as the price of R22 rises this will result in a direct increase in operating costs, incentivising more and more facilities to shift to new refrigerants. In the refrigeration sector in China CO₂ refrigeration systems would as a result be a reasonable choice, especially for large-scale cold storage after 2015.

 

 

 

The Yantai Moon Group Co. Ltd. produces compressors and offers integrated systems for freezing and cold storage equipment and industrial refrigeration systems, as well as central air conditioning equipment and fresh fruit and vegetable technology.  Over 70 per cent of its refrigeration products use ammonia as a refrigerant. In recent years, Moon Group has begun actively promoting CO₂ refrigeration products.