HFC gases are a crucial part of a functioning, modern society. From keeping groceries cold and fresh to powering the AC in people’s cars, these gases are an integral part of maintaining our safety and health. However, because these gases have high Global Warming Potential (GWP), federal and local governments are regulating HFC production and importation over the next decade and beyond.
HFC Production and Consumption Phasedown Schedule
Introduction to the AIM Act and Supply
The AIM (American Innovation and Manufacturing) Act was finalized by the US government at the end of 2021. This legislation introduced a phase-down plan for virgin HFC gases. From now through 2036, the US will reduce the production and importation of virgin HFCs by granting relevant businesses a set number of HFC allowances (or quota), which will decrease over time. Plus, state governments, such as in California, are introducing additional GWP-based HFC regulations. These will impact the sale, distribution, and entrance of bulk virgin HFCs or HFC blends into California commerce.
As the demand for refrigerant gases will increase, so will the demand for cooling. Businesses will still need to maintain old equipment. With diminishing availability of supply, the market will turn to reclaimed gases to make up the difference. The good news is that the AIM Act has no impact on reclaimed HFCs, meaning they can be purchased without using HFC allowances. Plus, reclaimed HFCs offer the same performance quality as virgin refrigerants. Reclaimed refrigerants must meet the same standards (AHRI-700) as virgin refrigerants, and are considered equally effective.
Reclaimed Gases
The case for circular HFCs
Circular business models reduce waste for more efficient resource usage. By relying on existing products, we make better use of what we already have, avoiding the need to produce the equivalent quantity of virgin refrigerants. Circularity also incentivizes people to avoid leaking or venting refrigerants into the atmosphere. Turning to reclaimed HFCs enables participation in the circular economy and delivers benefits from a sustainable business model. In some cases, doing so could reduce the risk of interruptions to your business because of issues like supply chain availability.
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