19th WORLD BANK OORG MEETING

FOAMS SECTOR REPORT

MIKE JEFFS March 28th 2002

World Bank

FOAM SECTOR PRESENTATION - CONTENT

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Projects since the last OORG meeting Regulatory Update Technology Update TEAP/TOC Activities CFC preblended polyols- Polyurethane Terminology Monitoring & Evaluation Study MFF Secretariat Report on Rigid Foam OORG Working Group Studies LCD Technology Small Rigid Foam Enterprises

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PROJECTS REVIEWED SINCE THE LAST OORG MEETING (JUNE 2001)

COUNTRY ENTERPRISE China Thailand Malaysia Indonesia Indonesia Indonesia Indonesia Pakistan Sector Plan National Plan National Plan Dua Roda Bostinco Maspion Udapana SECTOR/ SUB-SECTOR Foams Foams Foams Cool Boxes Steel Doors Insulated Houseware Shoe-soles TE ODS REPLACED 9,885 643 161 8.1 10.9 14.6 23 45 NEW TECHNOLOGY Various Various Various HCFC 141b HCFC 141b HCFC 141b CO2 (water) Chemical COMMENTS 3 further reviews Formal Review Formal Review Approval after 3 reviews Approval after 3 reviews Approval after 3 reviews Approval after 3 reviews In progress

Gadoon/Indus Shoesoles (PVC)

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REGULATORY UPDATE
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US HCFC position still unresolved European Union HCFC phase-outs (EC (2000)2037) and Japan up to 1/1/2004 for foams Actions in Europe to constrain HFC emissions early phase-outs possible in Austria, Denmark, Sweden and Switzerland EU Framework Directive proposal expected mid-2002 Actions in EU and Japan to capture/destroy HCFCs at end-oflife New EU Refrigerator Energy standards planned for 2005 existing Class A will be poorest type available

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TECHNOLOGY UPDATE 1 - Rigid PU Foams

Hydrocarbons technically approved for most polyurethane rigid foam applications with exception of spray foam (process safety) and some end product flammability classifications SME constraints apply for HC use wide scale use of HCFC 141b market introduction of HFC 365mfc and HFC 245fa, particularly in blends for cost reduction and nonflammable mixtures
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TECHNOLOGY UPDATE 2 - Other Foams

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Flexible slabstock - use of LCD spreading Box foams - need for cost effective Methylene Chloride replacement remains CO2 (water) standard technology for moulded foams and shoe-soles - evaluation of liquid HFCs for some integral skin applications

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EUROPEAN TRENDS IN DOMESTIC R/F HC TECHNOLOGY

100 80 % of Market 60 40 20 0 '93 '94 '95 '96 '97 Year CP CP/IP NP/IP CP/IB
World Bank

'98

'99

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EUROPEAN TRENDS IN DOMESTIC R/F HC TECHNOLOGY

100 80 % of Market 60 40 20 0 '93 '94 '95 '96 '97 Year CP CP/IP NP/IP CP/IB
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Benefits of Cyclo/Iso technology: Better flow Better density distribution Lower cost

'98

'99

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UNEP TEAP/TOC FOAM ACTIVITIES

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TEAP Study on fate of ODS - Task Forces Collection, Recovery and Storage Destruction Technologies TOC Report for foams 2002 Update Report for Foams

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POLYURETHANE TERMINOLOGY
TERM Urethane Polyurethane Isocyanate Isocyanate (polyurethane) Prepolymer (Base) Polyol (Base) Polyol Blend Polyol Formulation Fully formulated polyol Polyurethane system
* In

EXPLANATION Chemical group from OH + -NCO Polymer with urethane links Chemicals with 2 (+) NCO, TDI or MDI Modified isocyanate by reacting excess of isocyanate with a polyol Short chain polymer with 2 (+) OH groups polyether or polyester Blend of 2 or more base polyols Polyol or polyol blend plus catalyst(s), surfactants and fire retardants Polyol formulation plus blowing agent Package of Isocyanate + fully formulated polyol

CFC ?

case of OCF, rarely in others

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POLYURETHANE TERMINOLOGY
TERM Urethane Polyurethane Isocyanate EXPLANATION Chemical group from OH + -NCO Polymer with urethane links Chemicals with 2 (+) NCO, TDI or MDI CFC ?

Isocyanate (polyurethane) Modified isocyanate by reacting excess of Terms such as polyol premix, polyols, Prepolymer isocyanate with apreblended polyol blend are missleading and result in (Base) Polyol Short chain polymer with 2 confusion (+) OH groups polyether or polyester (Base) Polyol Blend Blend of 2 or more base polyols Polyol Formulation Fully formulated polyol Polyurethane system
* In

Polyol or polyol blend plus catalyst(s), surfactants and fire retardants Polyol formulation plus blowing agent Package of Isocyanate + fully formulated polyol

case of OCF, rarely in others

World Bank

POLYURETHANE TERMINOLOGY
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If a fully formulated polyol is specified, where is the CFC consumption? At the supplier (e.g. the systems house) or at the foam manufacturer?

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MONITORING & EVALUATION STUDY ON FOAM PROJECTS - 1

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Presented at the 33rd ExCOM, March 2001 Modus Operandi - desk studies, visits of consultant teams to 66 enterprises, reporting with proposed actions Completion of projects
CFC use eliminated? Alternative production? Destruction of CFC equipment? - retrofitting not considered?

Delays in and duration of projects

Significant delays, several more than 18 months Duration 36 months common and should not be standard
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MONITORING & EVALUATION STUDY ON FOAM PROJECTS - 2

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Technical choices
Top 3 - HCFC 141b, CO2(water), Methylene Chloride Change of technology issue

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Cost Effectiveness Safety in polystyrene sheet issue Overall rating

New system shows more unsatisfactory projects (5/43)

Lessons
Question of incentives

Concise informative report - B+

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REPORT ON ALTERNATIVES TO CFCs IN RIGID FOAM PROJECTS

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Modus Operandi - Field visits, questionnaires Comparison of costings of one versus two-step strategies show:
Captial cost out weighs operating cost savings Same is true with transition to HFC after 5 years

Market description has shortcomings:

Too US-centric Japan ignored Claims large majority switched to HCFCs Review of MLF policies and rules
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REPORT ON ALTERNATIVES TO CFCs IN RIGID FOAM PROJECTS - FINDINGS

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Market conditions in developing countries are different from those in developed countries; they also differ between different developing countries Effect of blowing agent (CFC 11, HCFC 141b) prices considered but not future availability of HCFC 141b Alternative choice depended on:
Commercial availability of proven technology Obtaining permit to use Market acceptability of foam Commercial viability of price of alternative

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Alternative choice not affected by MLF IOC rules Size of enterprise is a major factor in selecting technology (HC or HCFC) World Bank

OORG FOAMS WORKING STUDIES

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STUDIES SINCE INCEPTION OF OORG #2 Reducing ODS Use in Foam-Blown Pre-insulated Pipes (12/92) #3 Reducing ODS Use in Developing Countries in Domestic Refrigerator/Freezer Insulating Foams (10/93) #8 Zero ODS Foam Pre-insulated Pipe Alternatives (5/94) #9 Transitional and Zero ODS Domestic Refrigerator/Freezer Insulation Alternatives (5/94) #14 Factors Which Affect Operating Costs:Foam Densities and Plastic Liner Grades (9/98) #15 Foam Density Report 2000 #16 Flexible and Integral Skin Foams
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OORG FOAMS WORKING STUDIES

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STUDIES SINCE INCEPTION OF OORG #2 Reducing ODS Use in Foam-Blown Pre-insulated Pipes (12/92) #3 Reducing ODS Use in Developing Countries in Domestic Refrigerator/Freezer Insulating Foams (10/93) #8 Zero ODS Foam Pre-insulated Pipe Alternatives (5/94) #9 Transitional and Zero ODS Domestic Refrigerator/Freezer Insulation Alternatives (5/94) #14 Factors Which Affect Operating Costs:Foam Densities and Plastic Liner Grades (9/98) #15 Foam Density Report 2000 #16 Flexible and Integral Skin Foams
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OORG FOAMS WORKING STUDIES

REPORT # 15 FOAM DENSITY REPORT 2000
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Accepted on a provisional basis by ExCOM (Decision 31/44) Very comprehensive but concise document produced by expert group Report divided rigid foam applications into 19 subsegments and listed density changes for all alternative technologies Recommendations are easy to use in developing projects Report is still current and covers contemporary technologies
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FOAM DENSITY REPORT 2000 - TABLE OF DENSITIES FOR RIGID FOAMS

SEGMENT SUB-SEGMENT THERMOWARE PIPE INSULATION DISCONTINUOUS BOARDS & BLOCKS CONTINUOUS BOARDS DOMESTIC REFRIGERATOR/ FREEZERS COMMERCIAL REFRIGERATORS & FREEZERS Picnic boxes Insulated dishes Pipe sections Pipe-in-pipe Boards Blocks Boards BASELIN E DENSITY 32-34 32-34 33-35 70-80 35-37 33-34 30-32 31-33 ALTERNATIVE TECHNOLOGY HCFC 141b HCFC 141b HCFC 141b HCFC 141b & pentane HCFC 141b HCFC 141b HCFC 141b, pentane Cyclopentane Cyclo/iso pentane HCFC 141b HCFC 141b HCFC 141b HCFC 141b HCFC 141b HCFC 141b HCFC 141b, Pentane HCFC 141b, Pentane, HFC 134a HCFC 141b HCFC 141b HCFC 141b START-UP DENSITY ( %) 35-37 (9) 35-37 (9) 35-37 (6) 70-80 (0) 38-40 (8) 36-37 (9) 33-35 (10) 35-37 (16) 36-38 (16) 34-36 (10) 35-37 (13) 36-38 (9) 36-38 (9) 38-40 (5) 38-40 (5) 43-45 (4) 42-44 (5) 43-45 (4) MATURE DENSITY ( %) 32-34 (0) 32-34 (0) 34-36 (3) 70-80 (0) 36-38 (3) 34-35 (3) 31-33 (3) 34-36 (13) 34-36 (10) 34-35 (8) 33-35 (6) 35-37 (6) 35-37 (6) 37-39 (3) 37-39 (3) 41-44 (0) 40-42 (0) 41-44 (0)

Vending machines Visi-coolers Display cases Chest freezers Walk-in/step-in coolers/freezers

33-35 33-35 36-38 36-38 41-44 40-42 41-44

CONTINUOUS PANELS DISCONTINUOUS PANELS SPRAY FOAMS Walls Roofs Pipes & tanks

32-35 48-50 32-35

34-37 (6) 48-50 (0) 34-37 (6)

33-36 (3) 48-50 (0) 33-36 (3)

World Bank

OORG FOAMS WORKING STUDIES

REPORT # 15 FOAM DENSITY REPORT 2000
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Accepted on a provisional basis by ExCOM (Decision 31/44) Very comprehensive but concise document produced by expert group Report divided rigid foam applications into 19 subsegments and listed density changes for all alternative technologies Recommendations are easy to use in developing projects Report is still current and covers contemporary technologies Recommendation to continue to apply its findings
World Bank

OORG FOAMS WORKING STUDIES

REPORT #16 FLEXIBLE AND INTEGRAL SKIN FOAMS
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Submitted to the Secretariat in January 2001 Very comprehensive but concise document produced by expert group Report divided applications into 25 sub-segments and listed processing, technology learning, SME and density guidance for all alternative technologies

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FLEXIBLE & INTEGRAL SKIN REPORT MARKET SEGMENTATION

TABLE 2 FLEXIBLE MOULDED SEGMENTATION TDI M/T MDI BASE-LINE TECHNOLOGY ODS ODS ODS ODS ODS ODS Non-ODS ODS Non-ODS ODS/Non-ODS

FURNITURE
Institutional/Commercial Mattresses

TRANSPORTATION
Seat backs Seat cushions Arm/Head rests Saddles Fascias (semi-rigid)

MISCELLANEOUS
Packaging Toys Sporting goods

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FLEXIBLE AND INTEGRAL SKIN FOAMS REPORT - GUIDANCE SUMMARY

TABLE 6 SUMMARY OF FLEXIBLE SLABSTOCK PARAMETERS
NON ODP TECHNOLOGY LCD WET DIRECT/INDIRECT DRY NO LEARNING/SR YES, 2 YEARS SR*** 4,2,0 % SME NOT APPLICABLE COMMENTS MATURITY FOR CONVENTIONAL, VERTIFOAM , DENSITIES <15

kg/m
REDUCED PRESSURE (BOXFOAM) MC NO YES

NO

MC/LIA

NO

VENTILATION, DETECTION, SCRUBBER VENTILATION, DETECTION, SCRUBBER YES YES

YES SR 3,2,1% YES SR 3,2,1%

YES?

DEPENDS ON ALTITUDE OF FACTORY TANKS, SEALS, TOXICITY DEDICATED METERING SYSTEM,TANKS, SEALS, TOXICITY COOLING TABLE SAFETY

WATER/FORCED COOLING ACETONE

NO YES, HP

NO

NOT APPLICABLE

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OORG FOAMS WORKING STUDIES

REPORT #16 FLEXIBLE AND INTEGRAL SKIN FOAMS
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Submitted to the Secretariat in January 2001 Very comprehensive but concise document produced by expert group Report divided applications into 25 sub-segments and listed processing, technology learning, SME and density guidance for all alternative technologies Recommendations are very relevant for the development of projects

World Bank

LCD PROJECTS - 1
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Introduction in mid 1990s of Liquid Carbon Dioxide technology (LCD) has been a major technology stepchange in auxiliary blowing agent/flexible slabstock technology LCD has eliminated the use of methylene chloride as an alternative Now used at ca. 105 production plants (70 US and Europe) and 35 in developing countries - plus 11 in raw material suppliers facilities - plus 15+ projects in process of conversion

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LCD PROJECTS - 2
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Benefits
EHS in the factory Environmental acceptability - permanent solution Foam properties

Restrictions/downsides
Cost effectiveness for SMEs Learning period - technical capability of enterprise important Density range down to 15 kg/m3 proven Not suitable for box foam

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CONVERSION OF SMALL RIGID POLYURETHANE FOAM USERS - 1

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Threshold for rigid foam projects is $ 7.83/kg ODS For a 10 tonne CFC 11 project - this limits funding to $ 78,000 Whilst the technical acceptability of HCs has been extended, the capital cost of application is still up to $ 400,000 - -far above the grant limits for many small producers For almost all applications HCFC 141b is near to a dropin CFC 11 replacement in terms of processing and foam properties Low price of CFC 11 is a barrier to transition

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CONVERSION OF SMALL RIGID POLYURETHANE FOAM USERS - 2

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Future availability of HCFC 141b (outside China) is a question HCFC 141b has been widely applied to meet CFC reduction targets A 2-step approach is an inevitable consequence Cost learning with the liquid HFCs will occur in Develop country SMEs from now to HCFC phase-out and can be applied in developing countries There is time to set up HFC supply chains

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