Chinese Ministry of Environmental Protection offers subsidy for R290 Air Conditioner production

In the spring of 2014, at the opening of Chinese Home Appliances Expo, the Foreign Economic Cooperation Office (MEP- FECO) of the Ministry of Environmental Protection and the China Household Electrical Appliances Association (CHEAA) co-organised the “Environmental Protection Low Carbon Air Conditioner Exhibition”. Zhou Xiaofang, the head of the MEP-FECO stated that R290 AC development is entering a very important phase in 2014.

18 Production lines eligible for MEP subsidy

The Room air conditioning industry in China has to phase out 10,430 tons of HCFCs by 2015; complete at least 18 R290 production line transformations from HCFCs to R290; and promote the commercialisation of R290. The 18 production line transformations already signed, in addition to a demonstration production line signed with Midea, are all eligible to receive the MEP subsidy. The nine companies involved are following:

• Zhuhai Gree
• Guangdong Midea
• Qingdao Haier
• Chongqing Haier
• TCL Zhongshan
• Guangdong Kelon
• Sichuan Changhong
• Jiangsu Chunlan
• Yair

The details of subsidy are as follows:

• Portable units: first 10,000 produced before 31 December 2015 will receive ¥360 (€43). After 10,000 units the subsidy is reduced to ¥300 (€36). After 1 January 2016 the subsidy is reduced again to 150 (18), and then on 1 January 2018 to 0.
• Window units: first 10,000 produced before 31 December 2015 will receive ¥155 (€19). After 10,000 units the subsidy is reduced to ¥125 (€15). After 1 January 2016 the subsidy is reduced again to 63 (7), and then on 1 January 2018 to 0.
• Dehumidifier units: first 10,000 produced before 31 December 2015 receive ¥150 (€18). After 10,000 units the subsidy is reduced to ¥120 (€14). After 1 January 2016 the subsidy is reduced again to 60 (7), and then on 1 January 2018 to 0.

The climate of Production line transformation

So far the Foreign Economic Cooperation Office of the Ministry of Environmental Protection (MEP- FECO) has completed 22 production line transformations with 14 companies. The Ministry has signed twelve R290 AC production line transformation contracts, three R290 AC compressor production line transformation contracts with three companies and seven R410A AC production line transformations with six companies.

These agreed production line transformations will achieve a 7,300 ton reduction in HCFC-22 emissions, more than 70% of the country’s target. Specifically, the R290 air conditioner transformations will reduce HCFC emissions by 4,600 tons. Many Chinese companies already got 3C for R290, which means R290 air conditioner will be on the market now.

Chinese Government amending AC regulations to allow for R290

The national safety standard allowing the use of R290 in room AC, came into force already in May 2013. In March 2014, the Government started to regulate and modify additional regulations regarding installations and maintenance, production line safety, and transport. These regulations will be modified further, to cover the use of flammable refrigerants such as R290. The MEP is also working with companies to train engineers in the safe use of hydrocarbons, whilst National Professional Assessment Management associations are working with the Chinese Government to include in refrigerant technology assessments HCFC recovery, the safe handling of flammable refrigerants, and knowledge on alternative refrigerants.

“We are very confident about the development of R290 AC.” Says Zhou Xiaofang, “We believe that the difficulties currently being faced will be solved in the product development process. Different industries will all work to promote this process.”

According to Mr. Zhong Zhifeng of the MEP-FECO who presented at the ATMOsphere Network Paris in July 2014, almost all manufacturers have submitted applications for R290 AC and already at least 6 types of propane room ACs have been approved and certified, which means that these can be sold in the Chinese market.