Update on Opteon™ Refrigerants

Spetember 20, 2018

In Bae LeeAP Marketing Manager, FluoroChemicalsChemours Company

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The Chemours Company

Source: Jeffries 2018 Industrials Conference, August 2018

Evolution of Refrigerant Technology

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Selection of Refrigerants for the Future Will Need to Balance Performance

(Capacity and Efficiency), Safety and Sustainability, and Total Cost of System Ownership

+ HFOs and HFO Blends

(R-1234yf, 1234ze, 449A, 513A, etc.)

No ChlorineDouble Bond

Industrial Chemicals

(CO2, Hydrocarbons, Ammonia)

TODAY & TOMORROW

No ODPVery Low GWP

Industrial Chemicals(Methyl Chloride,

Ammonia, CO2, etc.)

1800s–1920s 1990s

HFCs(R-134a)

No ChlorineSingle Bond

No ODPHigh GWP

1950s

HCFCs(R-22)

Less ChlorineSingle Bond

Lower ODPHigh GWP

1930s

CFCs(R-12)

ChlorineSingle Bond

High ODPHighest GWP

Opteon™ Offers the Optimal Balance of Properties

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European Union HFC RegulationsNo. 517/2014 of the European Parliament and of the Council, Effective April 16, 2014 – “F-gas II”

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Regulatory Structure: HFC phase-down with CO2 Cap & Reduction AND GWP limits for select applications

European Union

[Million tons CO2eq]

Equipment Ban:• 2015: HFC ≥150; refrigerators/freezers – Foam & Domestic Refrig• 2015: HFC ≥ 2500; commercial refrig/freezers • 2020: HFC ≥ 2500; stationary refrigeration

HFC ≥ 150; movable room air conditioners• 2020: HFC ≥ 150; XPS FOAM• 2022: HFC ≥ 150; commercial refrigerators/freezers• 2022: HFC ≥ 150 in centralized multipack >40kW; except primary

refrigerant of cascade system, ban HFC ≥ 1500 GWP. • 2023: HFC ≥ 150; PU FOAM• 2025: HFC ≥ 750; single split air conditioners

Service Ban:• 2020: Prohibit Service and maintenance of refrigeration

equipment with a min charge size of 40 tonnes CO2-equivalent with refrigerants ≥2500 GWP

High Level of Market Activity; driving EU market rapidly to lower GWP refrigerants & market moving to “GWP-based” pricing

Kigali Amendment

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Our estimation of the number of vehicles running on R-1234yf

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Opteon™ YF Mobile OEM

Market Drivers

• EU MAC Directive – low GWP refrigerant in all new vehicles effective Jan 1 2017

• Turkey MAC Directive eff Jan 1 2018

• Growing use in US models (driven by CO2 credits under GHG Standard); all new vehicles MY2021 (CY2020) in Canada – OEM adoption in US still progressing

– EPA SNAP 20 ruling - Chemours appeal (also HW and NRDC) US Supreme Court filed late June (decision on whether to hear appeal comes after new Court convenes in October)

– CAFE – EPA proposed rule published Aug 24 in Federal Register (starts 60 day comment period); Public hearings Sep 24-26; California has announced intent to challenge new rules

• South Korea GHG Standard – expect full adoption by 2022

• Japan domestic adoption by MY2023; JAMA – 40% adoption by 2020

• Mexico – new President-elect Lopez-Obrador has announced support for actions on climate change

• Australia HFC phasedown timing for 134a approx. 2022-3 (best guess as of 8/2018)

• Kigali Amendment to Montreal Protocol Amendment enters into force Jan 1 2019:

– Developed countries reduce by 10% in 2019

– Developing countries freeze in 2024, 2029

– 43 parties have accepted, ratified or approved (as of 8/2018)

Auto OEM first fillAvg charge size 0.4-0.6 kg

Chemours has a Portfolio of Leading Low GWP Refrigerant Solutions We are prepared to support you through this transition!

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XP Series Refrigerants

Low GWP, Non-flammable

For both Retrofit of Existing Equipment & Qualified for New Equipment

Easy to use – close match to HFCs & in some cases, energy saving

XL Series Refrigerants

Very Low GWP

For New Equipment, designed for Class 2L Mildly Flammable refrigerants

Options < 750 GWP for R-410A and

R-404A Replacement.

Non-flammable (XP Series)Class 1

Mildly Flammable (XL Series)Class 2L

Current GWP Application Product GWP Product GWP

HFC-134a 1300 (1430) XP10(R-513A)

573 (631) XL10(R-1234yf)

< 1 (4)

HFC-404A 3943 (3922)

XP40(R-449A)

1282 (1397) XL40(R-454A)

238 (239)

XP44(R-452A)

1945 (2140)XL20

(R-454C)146 (148)

HFC-410A 1924 (2088)

XP41(R-463A)

1377 (1494) XL41(R-454B)

467 (466)

XL55(R-452B)

676 (698)

HCFC-22 1760 (1810) XP20(R-449C)

1146 (1251)XL20

(R-454C)146 (148)

HCFC-123 79 (77)

XP30(R-514A)

2 (7)

MZ(R-1336mzz(Z))

2 (9)

Opteon™ Product Offering by Application

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Note: GWP values AR5 (AR4)

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Case Studies with Opteon™ XP40 (R-449A) in Refrigeration Applications Around the World

Thousands of commercial refrigeration systems globally running on Opteon™ XP40!!!

• Up to 12% energy savings

• Major OEM Approvals

• Successful adoption with leading supermarkets in each region of the world!

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Opteon™ XP44 –Optimal Replacemnt for R-404A with Lowest Discharge Temperature

Successful Installation of CO2 Cascade withOpteon™ XP10 (R-513A) at Aldi’s in Spain

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Case Study – Aldi’s Store in Dos Hermanas, Spain

“We chose Opteon™ XP10, because it offered the optimal balance of properties when compared to

other [134a] options.”- Javier Atencia, Technical Manager, Tewis Smart Solutions

(Energy Consultant for Aldi)

“The ease of installation was similar to any other previous refrigerant technology, which allowed for us to set up the system without

inconveniencing the customer.”- Juan Carlos Izqueirdo, Technical Manager FRIEX

(Mechanical Contractor)

Opteon™ XP10 (R-513A) – Excellent Compatibility & Endorsement from Chiller Manufacturers

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Johnson Controls Advances Environmental Sustainability with Chiller Platforms Compatible with Low GWP Refrigerants

MILWAUKEE – (Jan. 20, 2016) – Johnson Controls is advancing its White House Council on Environmental Quality commitment by enhancing HFC product lines to be fully compatible with the non-flammable, low-GWP refrigerant – OpteonTM XP10 (R-513A), manufactured by The Chemours Company. York centrifugal and screw chillers ranging from 125 to 6,000 tons (440 to 21,100 kW) are compatible with R-513A.

Ingersoll Rand Introduces the EcoWise™ Portfolio of Products as Step to Achieve its Global Climate Commitment

Davidson, N.C., January 26, 2015 – Ingersoll Rand (NYSE:IR), a world leader in creating comfortable, sustainable and efficient environments, is pleased to announce another milestone in achieving its climate commitment, a roadmap to significantly reduce the environmental impact from its operations and product portfolio by 2030.

Trane Sintesis™ air-cooled chiller is energy efficient and quiet, and offers customers the choice of operating with a next generation, low GWP refrigerant – Opteon™ XP10 (R-513A) or with R-134a. Product will be available in North America and Latin America with next generation refrigerant option in June 2015.

Chemours™ Opteon™ XP10 Refrigerant Specified by Dunham-Bush for DCLCG Series Of High-Efficiency Direct-Driven VFD Water Cooled

Centrifugal Chiller

WILMINGTON, Del., April. 11, 2017 – Chemours Fluorochemicals (Chemours) today announced the selection of Opteon™ XP10 (R-513A) low global warming potential (GWP) refrigerant by Dunham-Bush for use in its DCLCG Series Of High-Efficiency Direct-Driven VFD Water Cooled Centrifugal Chiller for the Asia Pacific market.

Carrier AquaEdge® 19XR, 23XR and AquaForce® 30XV and XA Chillers are Available With Lower Global Warming Refrigerant Solutions

CHARLOTTE, N.C. - Feb. 9, 2018 - Legacy R-134a as well as the newer R-513A refrigerants are both supported in Carrier chillers. As part of Carrier’s commitment to delivering a comprehensive commercial product line that supports the drive for lower global warming refrigerant solutions, Carrier AquaEdge® 19XR water-cooled centrifugal chillers, 23XR water-cooled screw chillers and AquaForce® 30XV/XA air-cooled screw chillers are compatible with both R-134a as well as lower global warming potential (GWP) option R-513A.

Opteon™ XP30 (R-514A) selected by Trane for low pressure Centrifugal Chillers – option to replace R-123

Non-flammable (B1)

Performance Match to R-123Comparable in both capacity and efficiency

Azeotropic blendNo temperature glide

97% lower GWP than R-123

Extends life of existing equipmentReplaces R-123

Major OEM approvals: Trane

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Replaces R-123

Recent Examples of Opteon™ Qualifications for 410A Equipment @Mostra Conference for Home Comfort in Milan, Italy – March 2018

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Opteon™ XL41 (R-454B)and

Opteon™ XL55 (R-452B)

Opteon™ XL55 (R-452B)

Opteon™ XL41 (R-454B)

Field Case Study of Opteon™ XL40 (R-454A) Success in the UK!

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Background

• Chemours worked with Dawson rentals for several years.

• Sampled Opteon ™ XL20 and XL40 for testing in controlled conditions

• XL40 chosen as long term R-404A replacement due to performance improvement over R-404A.

• Implemented in a -18C cold store at Park Cakes using new equipment but existing design

Part III: Applying XP40 in Retrofits & New Systems

NEW: Getting to Know Opteon™ XP40 Video Series

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THANK YOU

Part I: What’s an HFO?

Part II: Optimized Performance, Safety & Sustainability

Opteon™ Digital Marketing Programs & Web Tools Launched!

• 3-part series with The Washington Post BrandStudio highlights how, facing a warming planet, the international refrigeration industry is fundamentally transforming how it does business by switching to more sustainable technology like HFOs.

• Launched Interactive Guide to Global Refrigerant Regulations & Solutions

Opteon™ - it’s not just for the future, but for the here and now!

Thank You