Phaseout of the use of ODS in Process Agent Applications in China PA I and PA II Sector Plans

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1 Phaseout of the use of ODS in Process Agent Applications in China PA I and PA II Sector Plans Helen Chan, China MP Task Team Leader Washington D.C, June 27, 2006

2 Montreal Protocol & Process Agents At its 10 th MOP, ODS used as process agents were included as controlled substances. (It was considered feedstock and not controlled by the MP). The Parties identified 25 process agent applications as listed in Decision X/14 for which the use would be considered a controlled substance. If not on the list, the use is still a feedstock use. At its 15 th meeting, the Parties added 13 new applications, plus adopted a list of over 40 new potential process applications - to be consider as consumption until evaluated and classified as process agent or feedstock. June 27, of 11

3 Definition of a process agent, feedstock and make-up quantities Feedstock. A controlled substance that undergoes transformation in a process in which it is converted from its original composition except for insignificant trace emission as allowed by Decision IV/12. Process agent. A controlled substance that because of its unique chemical or physical properties facilitate an intended chemical reaction and/or inhibit an unintended chemical reaction. Make-up quantity. The quantity of controlled substance per year, needed to continue manufacturing of a products a the plant, due to transformation, destruction and inadvertent losses (i.e. emissions and residual amounts in final products). Process agent Task Force, (PAFT), April June 27, of 11

4 China PA & CTC Sector Plan -- PA I 5 of the process agent applications listed in Decision X/14 are found in China, Total 25 enterprises with one or more production lines with production of Chlorinated Rubber (CR), Chlorinated Paraffin (CP-70), Ketotifen, Fluoropolymer Resins (PTFE), Chlorosulphonated Polyolefin (CSM), and The project will phaseout 5,049 ODP tonnes of CTC consumption and 36 tonnes of CFC 113 consumption. 52,162 tonnes of CTC and 36 tonnes of CFC 113 will be phaseout correspondently. A total of US$65 million were approved by ExCom for PA I at the 38 th meeting in Nov June 27, of 11

5 China PA & CTC Sector Plan -- PA II 13 process agent applications listed in Decision XV/6, 9 are found in China, Total 40 enterprises with one or more production lines, The process agent applications are Cyclodime, CPP and CEVA, MIC Derivatives, MPB, CCMP, Imidacloprid, Buprofenzin, CNMA, Oxadiazon, Mefenacet, DCBT and BPS, Total ODP tonnes of CTC consumption to be phaseout is 5,411 ODP tonnes, and 10,686 tonnes of CTC will be phaseout correspondently. A total of US$46.5 million were approved by ExCom for PA II at the 48 th meeting in April June 27, of 11

6 CTC Production Phaseout In 2003, CTC production in China was 64,152 ODP tonnes, used for CFC production, feedstock for non-ods chemicals, PA applications listed by the Parties, and potential process agent applications not listed. With the CFC production phaseout and the two PA phaseout plans, the maximum allowed after 2009 is only 1,214 ODP tonnes. The estimated unavoidable co-production of CTC after 2009 is estimated to be over 20,000 ODP tonnes, which have to be either used as feedstock or destroyed by the producers (CTC co-produced with Chloroform used as raw material for HCFC-22 production). June 27, of 11

7 PA Activities Activities include -- Conversion to non ODS technologies - but difficult to get the technology and to meet production specification requirements, Closure of production - lead to loss of revenue and unemployment. Plus also lack of supply of the product, and Emission control reduce emission to insignificant level. Due to the technologies used, the design of plants and materials used for sealings etc, it is very difficult to reduce emission to a desirable level. China is still working on it. June 27, of 11

8 PA I implementation status The phaseout has been achieved through following actions: Chlorinated rubber - closure, conversion and emission reduction, Chlorinated Paraffin-70 - closure and conversion, Ketotifen - conversion and closure, PTFE - conversion, CSM - closure and one emission control, which have turned out to be very difficult, the company still working on it. Cost so far over US$ 6 million. June 27, of 11

9 PA II implementation status Project approved in April Chinese PA project team is working on the Implementation manual. Workshops and initial activities started. June 27, of 11

10 CTC production phaseout Status Only CTC production facilities established before 2001 are eligible for funding. Of a total of 17 producers, many with multiple production facilities, were eligible and received CTC production quotas. Six dedicated CTC producers have been closed. Eleven CTC producers remain, all are co-producing CTC with Chloroform and Methyl Chloride. China has developed technology for converting CTC to MCl. Technology still under evaluation. Might be just as expensive as destruction of CTC. June 27, of 11

11 Observations The cost of phasing out CTC production has been much higher than expected. Co-production of CTC will be a main challenge during the coming year and after Finding substitute technologies for process applications has been a major challenge. It has been difficult to meet products quality requirement with home grown technologies. New potential process applications as listed in MOP Decision XV/7 will be a major challenge for China - And for the bank as implementing agency. Verification cost high and will be an ongoing challenge. June 27, of 11