CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE & Ingersoll-Rand

All information within this presentation is property of Trane and cannot be used without explicit consent from Trane.

Thomas J. GormanApplied Chiller SystemsProduct Manager

Refrigerant Update

THE NEXT TRANSITION HAS BEGUN

Understanding the Timeline

There’s more to refrigerant selection than just ODP & GWP

ODP

GWP

Past (CFCs)

R-12, R-11, R-113 more…

Present (HCFCs & HFCs)

R-22, R-134a, R-410A, R-407C

R-123, R-404A R-245fa more…

Low-ODP

or no ODP

Reduced

GWP

Future (HFO & Blends)

R-1234yf, R-1234ze, R-1233zd,

R-513A, R-1336mzz, more…

Short Atmospheric Life

Reduces Impacts

CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE

CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE

Markets

Using HFCs

86%

7%

4%

3%

0.0%

RACHP

Foam

Aerosals

Fire Protection

Solvents Percent of Tons of CO2

79%

12%

7%

2%

0.3%

RACHP

Foam

Aerosals

Fire Protection

Solvents Total Metric Tons

Source: UNEP Ozone Secretariat Fact Sheet 2

“Overview of HFC Market Sectors” (Oct 2015)

Global Consumption of HFCs

40%

25%

13%

9%

6%7%

R-134a

R-125

R-32

R-143a

R-152a

Other HFCs

Total Metric Tons

CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE

CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE

65%

35%

Source: UNEP Ozone Secretariat Fact Sheet 2

“Overview of HFC Market Sectors” (Oct 2015)

Global HFC use in RACHPRACHP – “refrigeration, air-conditioning & heat pumps”

Air-Cond

Refrig

45%

36%

15%

4%

Air-Conditioning

Mobile

Chillers

Air-to-Air

Heat only HP

73%

20%

5%2%

Refrigeration

Commercial

Industrial

TransportDomestic

Reductions of HFC Use Already

European Union

Reductions of HFC Use Already

North America Region

9-26-2016 > EPA Final Ruling

Change status of certain HFCs to “unacceptable”

- All Chillers (Air and Water Cooled)

- Centrifugal & Positive Displacement (2024)

- Using R-134a, R-410A & R-407C

7-2-2015 > EPA Final Ruling

Change status of certain HFCs to “unacceptable”

- Retail Food Refrigeration (2017)

- Aerosol and propellants (2018)

- Motor Vehicles (2021 Model)

Concerns in A5 Countries

Middle East to India Region

CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE

October 15, 2016

Nations, Fighting Powerful Refrigerant That Warms Planet, Reach Landmark Deal

KIGALI, Rwanda — Negotiators from more than 170 countries on Saturday reached

a legally binding accord to counter climate change by cutting the worldwide use of a

powerful planet-warming chemical used in air-conditioners and refrigerators.

Montreal Protocol HFC Amendment Agreement Kigali Amendment – Dubai Pathway on HFCs – Global Transitions Based on GWP

CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE

October 15, 2016

Montreal Protocol HFC Amendment Agreement Kigali Amendment - Global Transitions Based on GWP

20442040 204220322028 203020262022 202420202016 2018 20382034 2036 20482046

90%

70%

60%

50%

40%

30%

20%

10%

80%

93

63

45

31

2421

90

60

40

20

15

90

70

50

20

European Union

A2 Courtiers (Developed)

A5 Courtiers (Group 2)Established Baseline Quantity

A5 Courtiers (Group 1)

90

80

70

15

2

1

CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE

What is the INDUSTRY providing already…

Looking at Air & Water Cooled Chillers

using HFC alternatives…

… Just a few of the screw, scroll

and centrifugal chillers available now with

new HFO or HFO blend refrigerants.

CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE

Questions: What will the impact be on….

• Safety

• Energy Consumption

• Cost Equipment

Refrigerant

• Application Requirements Capacity Range

High Ambient

With choices now available…

HVAC Industry Next Transition Begins…G

lob

al W

arm

ing

Po

ten

tial

Medium PressureLow Pressure

R-5

13A

R-1

23

R-1

233z

d

R-1

1

R-1

2

R-1

34a

R-1

234z

e

R-5

14A

No

n A

SM

E

2L

BV 0.0

No

n A

SM

E

No

n A

SM

E

Eff

icie

ncy

(C

OP

)C

O2

= 1

.0 G

WP

Op

era

tin

g P

res

su

re (

psig

)

ASME Construction

CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE

Flammability Properties Vary

Class 2L“Slightly Flammable"

Class 3"Highly Flammable"

Class 2"Lesser Flammable"

Class 1“Non-Flam"

CONFIDENTIAL AND PROPRIETARY INFORMATION OF TRANE

Centrifugal Refrigerant Choices & ComparisonReplacements for HFC/HCFC Large Chiller Offerings

R-123

Low Pressure

1,000 ton

R-514A 1,000 ton

R-1233zd 35% gain over R-1231,350 ton

R-134a

Medium Pressure

1,000 ton

R-513A Slight gain over R-134a1,051 ton

R-1234yf

R-1234ze 25% loss over R-134a

5% loss over R-134a950 ton

750 ton

Questions