CCM: Chemours to double HFO-1234yf production capacity in China

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Publish time: 24th October, 2016      Source: CCM
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  Summary: In July 2015, Chemours announced that it would expand the HFO-1234yf production line in Changshu City, Jiangsu Province, by doubling the production capacity so as to satisfy the increasing demand from the global vehicle industry. 

  

  

  

   On 15 July, 2015, Chemours Company (Chemours) noted the plan to expand the production line of a new generation refrigerant, Opteon® YF (2,3,3,3-tetrafluoropropene – HFO-1234yf) in China. This expansion is aimed at doubling the production capacity of this low global warming potential (GWP) refrigerant in China.

  
Meanwhile, Chemours also stated that recently it would increase the supply of Opteon® XP serial refrigerants (mainly applied in the commercial refrigeration field, including supermarket refrigeration system, water chilling unit, heat pump, cold-chain logistics, etc.) that is also produced on the basis of hydrofluoroolefin (HFO) technology, in the EU market. This range will be officially launched on the US market in August 2015. As the market size enlarges, it is likely to construct related production lines in China.

  
According to CCM research, the HFO-1234yf production line that Chemours planned to expand is the joint-venture production line constructed by Changshu 3F Zhonghao New Chemical Materials Co., Ltd. (3F Zhonghao) in 2010 when 3F Zhonghao and DuPont (parent company of Chemours) established partnership. Now the production line, with a capacity of 3,000 t/a, is run by 3F Zhonghao. Chemours intended to double it to 6,000 t/a.

  
Thierry F.J. Vanlancker, president of Fluoroproducts in Chemours, stated: "The HFO-1234yf production line to be expanded in China is targeted to satisfy the increasing demand for low GWP refrigerants (HFO-1234yf: <1) from the global vehicle industry during the refrigerant substitution and upgrading'.

  
The demand for HFO-1234yf is mainly driven up by the MAC Directive from the EU. The MAC Directive stipulates that:

   

      
  •     From 2011, the refrigerant used in the air-conditioning system for new vehicle launched onto the market, should carry a GWP of <150   
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  •     From 2017, the refrigerant used in the air-conditioning system for all vehicles produced that very year should carry a GWP of <150   

  
So far, HFO-1234yf is the only fluorine-enriched refrigerant that meets the requirement.

  
In addition, the F-gas Regulations has pushed the EU to carry out quota regime on hydrofluorocarbons (HFCs) from 2015, reduce the application quantity of HFCs from 2016 and decrease it to 1/5 of that in 2014 by 2030.

   
What's more, in July 2014, the US Environmental Protection Agency issued a new regulation to reinforce restriction on the application of HFCs and promulgated several rules/ measures to accelerate the elimination of HFCs. This would further speed up the elimination of the traditional mainstream refrigerant – 1,1,1,2- tetrafluoroethane (HFC-134a) – used in vehicle air-conditioning system, and give support to the popularization of HFO-1234yf.

  
It is known that, HFO-1234yf has been accepted by many large vehicle manufacturers in the world, such as Volkswagen Group, General Motors Company and Subaru (the automobile manufacturing division of Fuji Heavy Industries Ltd.). By the end of 2015, 9 million new vehicles around the world are estimated to use this refrigerant.

  
However, considering the current market status, HFO-1234yf is mainly applied in developed regions like Europe, America and Japan. In China, relevant downstream industries barely have demand for it. A sales manager in the Chinese refrigerant industry disclosed: "HFO-1234yf is mainly used to substitute HFC-134a. However, no policies in China indicate the elimination of HFCs. Moreover, the HFO-1234yf price is very high, 6-7 times of the HFC-134a price. It is not surprised that China has no demand for it. In China, only 3F Zhonghao produces HFO-1234yf in large scale and exports them to DuPont".

  

  

  

     

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